SEC Form 4

FORM 4		UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940	OMB APPROVAL OMB Number: 3235-0287 Estimated average burden hours per response: 0.5
	Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person* SDS MERCHANT FUND LP (Last) (First) (Middle) (NOW KNOWN AS SDS CAPITAL ADVISORS, LP) (Street) OLD GREENWICH CT 06870 (City) (State) (Zip)	2. Issuer Name and Ticker or Trading Symbol TELENETICS CORP [ TLNT.OB ]	5. Relationship of Reporting Person(s) to Issuer (Check all applicable) Director X 10% Owner Officer (give title below) Other (specify below)
	3. Date of Earliest Transaction (Month/Day/Year) 07/31/2003
	4. If Amendment, Date of Original Filed (Month/Day/Year)	6. Individual or Joint/Group Filing (Check Applicable Line) Form filed by One Reporting Person X Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock	07/31/2003		S		80,000	D	$0.1007	5,360,380	D(1)
Common Stock	07/31/2003		S		80,000	D	$0.1007	5,360,380	I(1)	By SDS Capital Partners, LLC(2)
Common Stock	07/31/2003		S		80,000	D	$0.1007	5,360,380	I(1)	By Mr. Steven Derby(3)
Common Stock	10/01/2003		J(4)		5,360,380	D	$0(4)	0	D(1)
Common Stock	10/01/2003		J(4)		5,360,380	D	$0(4)	0	I(1)	By SDS Capital Partners, LLC(2)
Common Stock	10/31/2003		J(4)		5,360,380	D	$0(4)	0	I(1)	By Mr. Steven Derby(3)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Common Stock Warrant (right to buy)	$0.441(4)	10/01/2003		J(4)			2,553,105	03/01/2003	02/28/2007	Common Stock	2,553,105	$0(4)	0	D(1)
Common Stock Warrant (right to buy)	$0.441(4)	10/01/2003		J(4)			2,553,105	03/01/2003	02/28/2007	Common Stock	2,553,105	$0(4)	0	I(1)	By SDS Capital Partners, LLC(2)
Common Stock Warrant (right to buy)	$0.441(4)	10/01/2003		J(4)			2,553,105	03/01/2003	02/28/2007	Common Stock	2,553,105	$0(4)	0	I(1)	By Mr. Steven Derby(3)

1. Name and Address of Reporting Person* SDS MERCHANT FUND LP (Last) (First) (Middle) (NOW KNOWN AS SDS CAPITAL ADVISORS, LP) (Street) OLD GREENWICH CT 06870 (City) (State) (Zip) Relationship of Reporting Person(s) to Issuer Director X 10% Owner Officer (give title below) Other (specify below)

1. Name and Address of Reporting Person* DERBY STEVEN (Last) (First) (Middle) MR. STEVEN DERBY C/O 53 FOREST AVENUE, 2ND FLOOR (Street) OLD GREENWICH CT 06870 (City) (State) (Zip) Relationship of Reporting Person(s) to Issuer Director X 10% Owner Officer (give title below) Other (specify below)

1. Name and Address of Reporting Person* SDS Capital Partners, LLC (Last) (First) (Middle) 53 FOREST AVENUE, 2ND FLOOR (Street) OLD GREENWICH CT 06870 (City) (State) (Zip) Relationship of Reporting Person(s) to Issuer Director X 10% Owner Officer (give title below) Other (specify below)

Explanation of Responses:

1. These securities are beneficially owned by SDS Capital Advisors, LP (the "Parnership").

2. These securities are held by the Partnership, of which SDS Capital Partners, LLC ("SDS Capital Partners") is the general partner. The entire amount of the Issuer's securities held by the Partnership is reported herein. SDS Capital Partners disclaims any beneficial ownership of any of the Issuer's securities to which this report relates, except to the extent of its indirect pecuniary interest therein, and this report shall not be deemed an admission that SDS Capital Partners is the beneficial owner of such securities. The address of SDS Capital Partners is 53 Forest Avenue, 2nd Floor, Old Greenwich, Connecticut 06870.

3. These securities are held by the Partnership. Mr. Steven Derby is the sole managing member of SDS Capital Partners and, as such, has investment and voting power with respect to the securities held by the Partnership. The entire amount of the Issuer's securities held by the Partnership is reported herein. Mr. Derby disclaims any beneficial ownership of any of the Issuer's securities to which this report relates, except to the extent of his indirect pecuniary interest therein, and this report shall not be deemed an admisssion that Mr. Derby is the beneficial owner of such securities. Mr. Derby's address is c/o SDS Management, LLC, 53 Forest Avenue, 2nd Floor, Old Greenwich, Connecticut 06870.

4. The Partnership assigned and transferred all securities of the Issuer owned by it to the Class B Portfolio of SDS Capital Group SPC, Ltd.

Remarks:

Exhibit List ----------------- Exhibit 99 - Joint Filer Information

	*	02/04/2005
	** Signature of Reporting Person	Date
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