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 CAPITAL GROUP SPC LTD (Last) (First) (Middle) OGIER FIDUCIARY SERVICES (CAYMAN) LTD. 113 SOUTH CHURCH STREET, P.O. BOX 1234GT (Street) GEORGE TOWN, GRAND CAYMAN E9 (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) 09/30/2004
	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	09/30/2004		J(4)		721,741	A	$0.00(4)	6,082,121	D(1)
Common Stock	09/30/2004		J(4)		721,741	A	$0.00(4)	6,082,121	I(1)	By SDS Management, LLC(2)
Common Stock	09/30/2004		J(4)		721,741	A	$0.00(4)	6,082,121	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)	$0.0001	09/30/2004		J(4)		3,286,619		09/30/2004	09/29/2009	Common Stock	3,286,619	$0.00(4)	3,286,619	D(1)
Common Stock Warrant (right to buy)	$0.0001	09/30/2004		J(4)		3,286,619		09/30/2004	09/29/2009	Common Stock	3,286,619	$0.00(4)	3,286,619	I(1)	By SDS Management, LLC(2)
Common Stock Warrant (right to buy)	$0.0001	09/30/2004		J(4)		3,286,619		09/30/2004	09/29/2009	Common Stock	3,286,619	$0.00(4)	3,286,619	I(1)	By Mr. Steven Derby(3)

1. Name and Address of Reporting Person* SDS CAPITAL GROUP SPC LTD (Last) (First) (Middle) OGIER FIDUCIARY SERVICES (CAYMAN) LTD. 113 SOUTH CHURCH STREET, P.O. BOX 1234GT (Street) GEORGE TOWN, GRAND CAYMAN E9 (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 Management, 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 SDS Capital Group SPC, Ltd. on behalf of its Class B portfolio ("SDS Capital Group SPC").

2. These securities are held by SDS Capital Group SPC, for whom SDS Management, LLC ("Manager") is the investment manager. Pursuant to an investment management agreement, Manager has investment and voting power with respect to the securities held by SDS Capital Group SPC. The entire amount of the Issuer's securities held by SDS Capital Group SPC is reported herein. Manager 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 Manager is the beneficial owner of such securities. The address of Manager is 53 Forest Avenue, 2nd Floor, Old Greenwich, Connecticut 06870.

3. These securities are held by SDS Capital Group SPC. Mr. Steven Derby is the sole managing member of Manager and, as such, has investment and voting power with respect to the securities held by SDS Capital Group SPC. The entire amount of the Issuer's securities held by SDS Capital Group SPC 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 admission 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. Effective as of 9/30/2004, SDS Capital Group SPC exchanged an outstanding promissory note from the Issuer with an outstanding principal amount of $1,202,902.43 for an amended promissory note with a principal amount of $962,321.95, as well as 721,741 shares of common stock of the Issuer and warrants to acquire 3,286,619 shares of the common stock of the Issuer.

Remarks:

Exhibit List Exhibit 99 Joint Filer Information

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