x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended September 30, 2011 |
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from __________ to ____________ |
Delaware
|
36-3680347
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
incorporation or organization)
|
Identification No.)
|
Page
|
||
PART I
|
Financial Information
|
2
|
ITEM 1.
|
Financial Statements
|
2
|
ITEM 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
27
|
ITEM 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
34
|
ITEM 4.
|
Controls and Procedures
|
34
|
PART II
|
Other Information
|
35
|
ITEM 1.
|
Legal Proceedings
|
35
|
ITEM 1A.
|
Risk Factors
|
36
|
ITEM 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
36
|
ITEM 3.
|
Defaults Upon Senior Securities
|
36
|
ITEM 4.
|
(Removed and Reserved)
|
36
|
ITEM 5.
|
Other Information
|
36
|
ITEM 6.
|
Exhibits
|
37
|
Signatures
|
50
|
September 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
ASSETS
|
(unaudited)
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 250 | $ | 80 | ||||
Trade accounts receivable, net of allowance of $5 and $0
|
353 | 345 | ||||||
Inventories, net of allowance of $125 and $114
|
147 | 112 | ||||||
Prepaid expenses and other current assets
|
235 | 151 | ||||||
Total current assets
|
985 | 688 | ||||||
Property and equipment, net
|
90 | 96 | ||||||
Goodwill
|
3,418 | 3,418 | ||||||
Proprietary software, net
|
921 | 1,414 | ||||||
Patents and other intangible assets, net
|
1,835 | 2,048 | ||||||
Cash surrender value of life insurance policies
|
605 | 738 | ||||||
Other long-term assets
|
171 | 171 | ||||||
Total assets
|
$ | 8,025 | $ | 8,573 | ||||
LIABILITIES AND SHAREHOLDERS’ DEFICIT
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 532 | $ | 435 | ||||
Taxes payable
|
- | 126 | ||||||
Accrued expenses
|
11,032 | 9,413 | ||||||
Deferred revenues and customer prepayments
|
1,826 | 1,417 | ||||||
Note payable
|
110 | 69 | ||||||
Accrued purchase price guarantee
|
4,535 | 4,535 | ||||||
Deferred tax liability
|
706 | 706 | ||||||
Derivative financial instruments - warrants
|
433 | 2,213 | ||||||
Derivative financial instruments - Series C and D preferred stock and debentures payable
|
13,198 | 28,092 | ||||||
Debentures payable - carried at amortized cost
|
15,698 | 14,560 | ||||||
Debentures payable - carried at fair value
|
17,912 | 27,484 | ||||||
Total current liabilities
|
65,982 | 89,050 | ||||||
Commitments and contingencies (Note 6)
|
||||||||
Series C convertible preferred stock, $0.01 par value, 27,000
|
||||||||
shares authorized, 5,433 and 8,336 shares issued and outstanding,
|
||||||||
liquidation value of $5,433 and $8,336
|
5,433 | 8,336 | ||||||
Series D convertible preferred stock, $0.01 par value, 25,000
|
||||||||
shares authorized, 23,600 and 25,000 shares issued and outstanding,
|
||||||||
liquidation value of $2,360 and $2,500
|
2,360 | 2,500 | ||||||
Shareholders’ deficit:
|
||||||||
Common stock, $0.001 par value, 5,000,000,000 shares authorized, 345,830,364 and
|
||||||||
25,695,392 shares issued and 345,813,951 and 25,678,978 shares
|
||||||||
outstanding as of September 30, 2011 and December 31, 2010, respectively
|
346 | 26 | ||||||
Additional paid-in capital
|
166,873 | 153,974 | ||||||
Accumulated deficit
|
(232,019 | ) | (244,395 | ) | ||||
Accumulated other comprehensive loss
|
(171 | ) | (139 | ) | ||||
Treasury stock, at cost, 2,012 shares of common stock
|
(779 | ) | (779 | ) | ||||
Total shareholders’ deficit
|
(65,750 | ) | (91,313 | ) | ||||
Total liabilities and shareholders’ deficit
|
$ | 8,025 | $ | 8,573 |
`
|
Three Months Ended
|
|||||||
September 30,
|
September 30,
|
|||||||
2011
|
2010
|
|||||||
Revenues
|
$ | 528 | $ | 338 | ||||
Cost of revenues
|
324 | 236 | ||||||
Gross profit
|
204 | 102 | ||||||
Sales and marketing expenses
|
217 | 231 | ||||||
General and administrative expenses
|
830 | 835 | ||||||
Research and development costs
|
481 | 465 | ||||||
Operating Loss
|
(1,324 | ) | (1,429 | ) | ||||
Gain (loss) from change in fair value of hybrid financial instruments
|
17,631 | (6,941 | ) | |||||
Gain (loss) from change in fair value of derivative liability - warrants
|
568 | (1,105 | ) | |||||
Gain (loss) from change in fair value of derivative liability -
|
||||||||
Series C and D preferred stock and debentures
|
43,727 | (15,561 | ) | |||||
Interest expense related to convertible debt
|
(1,155 | ) | (595 | ) | ||||
Net Income (loss)
|
59,447 | (25,631 | ) | |||||
Comprehensive income (loss):
|
||||||||
Net income (loss)
|
59,447 | (25,631 | ) | |||||
Other comprehensive loss -
|
||||||||
foreign currency translation adjustment
|
(19 | ) | 23 | |||||
Comprehensive Income (loss)
|
$ | 59,428 | $ | (25,608 | ) | |||
Net income (loss) per share, basic and diluted:
|
||||||||
Basic
|
$ | 0.26 | $ | (1.13 | ) | |||
Fully diluted
|
$ | - | $ | (1.13 | ) | |||
Weighted average number of common shares:
|
||||||||
Basic
|
226,839,514 | 22,678,877 | ||||||
Fully diluted
|
3,440,185,503 | 22,678,877 |
Nine Months Ended
|
||||||||
September 30,
|
September 30,
|
|||||||
2011
|
2010
|
|||||||
Revenues
|
$ | 1,664 | $ | 1,206 | ||||
Cost of revenues
|
799 | 830 | ||||||
Gross profit
|
865 | 376 | ||||||
Sales and marketing expenses
|
838 | 812 | ||||||
General and administrative expenses
|
2,451 | 2,971 | ||||||
Research and development costs
|
1,311 | 1,166 | ||||||
Operating Loss
|
(3,735 | ) | (4,573 | ) | ||||
Loss on extinguishment of debt
|
- | (6,006 | ) | |||||
Gain from change in fair value of hybrid financial instruments
|
4,203 | 12,611 | ||||||
Gain from change in fair value of derivative liability - warrants
|
2,263 | 9,751 | ||||||
Gain from change in fair value of derivative liability -
|
||||||||
Series C and D preferred stock and debentures
|
12,457 | 31,263 | ||||||
Interest expense related to convertible debt
|
(2,812 | ) | (1,551 | ) | ||||
Net Income
|
12,376 | 41,495 | ||||||
Dividends on convertible preferred stock
|
- | (2,500 | ) | |||||
Net Income attributable to common shareholders
|
12,376 | 38,995 | ||||||
Comprehensive income (loss):
|
||||||||
Net income (loss)
|
12,376 | 41,495 | ||||||
Other comprehensive loss -
|
||||||||
foreign currency translation adjustment
|
(32 | ) | (27 | ) | ||||
Comprehensive Income
|
$ | 12,344 | $ | 41,468 | ||||
Net income (loss) per share, basic and diluted:
|
||||||||
Basic
|
$ | 0.13 | $ | 1.74 | ||||
Fully diluted
|
$ | - | $ | (0.02 | ) | |||
Weighted average number of common shares:
|
||||||||
Basic
|
97,493,073 | 22,470,014 | ||||||
Fully diluted
|
3,222,207,099 | 301,266,858 |
Accumulated | ||||||||||||||||||||||||||||||||
Additional
|
Other
|
Total
|
||||||||||||||||||||||||||||||
Common Stock
|
Paid-in
|
Comprehensive |
Accumulated
|
Treasury Stock
|
Shareholders'
|
|||||||||||||||||||||||||||
Shares
|
Amount
|
Capital | Income (Loss) | Deficit |
Shares
|
Amount
|
Deficit | |||||||||||||||||||||||||
Balance, December 31, 2010
|
25,678,978 | $ | 26 | $ | 153,974 | $ | (139 | ) | $ | (244,395 | ) | 2,012 | $ | (779 | ) | $ | (91,313 | ) | ||||||||||||||
Shares issued for acquisition of patent rights
|
5,000,000 | 5 | 345 | - | - | - | - | 350 | ||||||||||||||||||||||||
Shares issued upon conversions of Series C preferred stock
|
205,771,365 | 206 | 9,114 | - | - | - | - | 9,320 | ||||||||||||||||||||||||
Shares issued upon conversions of Series D preferred stock
|
10,938,232 | 11 | 268 | - | - | - | - | 279 | ||||||||||||||||||||||||
Shares issued upon conversions of convertible debentures
|
98,425,376 | 98 | 3,114 | - | - | - | - | 3,212 | ||||||||||||||||||||||||
Stock-based compensation expense
|
- | - | 58 | - | - | - | - | 58 | ||||||||||||||||||||||||
Comprehensive income - foreign currency translation adjustment
|
- | - | - | (32 | ) | - | - | - | (32 | ) | ||||||||||||||||||||||
Net income
|
- | - | - | - | 12,376 | - | - | 12,376 | ||||||||||||||||||||||||
Balance, September 30, 2011
|
345,813,951 | $ | 346 | $ | 166,873 | $ | (171 | ) | $ | (232,019 | ) | 2,012 | $ | (779 | ) | $ | (65,750 | ) |
Nine Months Ended | ||||||||
September 30, | ||||||||
2011
|
2010
|
|||||||
Cash Flows from Operating Activities:
|
||||||||
Net Income
|
$ | 12,376 | $ | 41,495 | ||||
Adjustments to reconcile net income to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
734 | 757 | ||||||
Loss on extinguishment of debt
|
- | 6,006 | ||||||
(Gain) from change in fair value of hybrid financial instruments
|
(4,203 | ) | (12,611 | ) | ||||
(Gain) from change in fair value of derivative liability - warrants
|
(2,263 | ) | (9,751 | ) | ||||
(Gain) from change in fair value of derivative liability -
|
||||||||
Series C and D preferred stock and debentures
|
(12,457 | ) | (31,263 | ) | ||||
Interest expense related to convertible debt
|
2,812 | 1,551 | ||||||
Interest paid on convertible debt
|
(1,000 | ) | - | |||||
Stock-based compensation expense
|
58 | 138 | ||||||
Increase in value of life insurance policies
|
133 | (39 | ) | |||||
Changes in operating assets and liabilities
|
||||||||
Trade and other accounts receivable
|
(8 | ) | (271 | ) | ||||
Inventories
|
(35 | ) | 12 | |||||
Prepaid expenses and other assets
|
(84 | ) | 40 | |||||
Accounts payable and accrued liabilities
|
17 | (351 | ) | |||||
Deferred revenue and other current liabilities
|
409 | (367 | ) | |||||
Net cash used in operating activities
|
(3,511 | ) | (4,654 | ) | ||||
Cash Flows from Investing Activities:
|
||||||||
Acquisition of property and equipment
|
(6 | ) | (13 | ) | ||||
Net cash used in investing activities
|
(6 | ) | (13 | ) | ||||
Cash Flows from Financing Activities:
|
||||||||
Proceeds from issuance of Series D preferred stock
|
- | 2,500 | ||||||
Costs attributed to issuance of Series D convertible preferred stock
|
- | (100 | ) | |||||
Borrowing (repayment) of note payable - YA Global
|
- | (500 | ) | |||||
Borrowings under convertible debt instruments, net
|
3,685 | 2,865 | ||||||
Net cash provided by financing activities
|
3,685 | 4,765 | ||||||
Effect of exchange rate changes on cash
|
2 | (6 | ) | |||||
Net increase in cash and cash equivalents
|
170 | 92 | ||||||
Cash and cash equivalents, beginning of period
|
80 | 198 | ||||||
Cash and cash equivalents, end of period
|
$ | 250 | $ | 290 | ||||
Supplemental cash flow information:
|
||||||||
Interest paid during the period
|
$ | 1 | $ | 1 | ||||
Series C preferred stock converted to common stock
|
$ | 9,320 | $ | 273 | ||||
Series D preferred stock converted to common stock
|
$ | 279 | $ | - | ||||
Convertible Debentures converted to common stock
|
$ | 3,212 | $ | - | ||||
Deemed dividend on Series D preferred stock issued
|
$ | - | $ | 2,500 | ||||
Shares issued for acquisition of patent rights
|
$ | 350 | $ | - |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(in thousands except share and per share data)
|
||||||||||||||||
Numerator:
|
||||||||||||||||
Net income (loss)
|
$ | 59,447 | $ | (25,631 | ) | $ | 12,376 | $ | 41,495 | |||||||
Adjustments to reconcile net income to income (loss)
|
||||||||||||||||
applicable to common stockholders:
|
||||||||||||||||
Accretion of Series D Preferred stock
|
- | - | - | (2,500 | ) | |||||||||||
Numerator for basic earnings per share - income available
|
||||||||||||||||
to common stockholders
|
59,447 | (25,631 | ) | 12,376 | 38,995 | |||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Adjustment for change in fair value of derivative liability
|
||||||||||||||||
Series C and D preferred stock and debentures
|
(43,727 | ) | - | (12,457 | ) | (31,263 | ) | |||||||||
Adjustment for change in fair value of derivative liability-
|
||||||||||||||||
warrants
|
(568 | ) | - | (2,263 | ) | (9,751 | ) | |||||||||
Adjustment for change in fair value of hybrid financial
|
||||||||||||||||
instruments
|
(17,631 | ) | - | (4,203 | ) | (12,611 | ) | |||||||||
Adjustment for loss on extinguishment of debt
|
||||||||||||||||
(excluding non-dilutive instrument)
|
- | - | - | 5,643 | ||||||||||||
Adjustment for interest expense related to convertible debt
|
1,152 | - | 2,802 | 1,515 | ||||||||||||
(60,774 | ) | - | (16,121 | ) | (46,467 | ) | ||||||||||
Numerator for diluted earnings per share-
|
||||||||||||||||
income available for common stockholders
|
||||||||||||||||
after assumed conversions of debentures and
|
||||||||||||||||
exercise of warrants
|
$ | (1,327 | ) | $ | (25,631 | ) | $ | (3,745 | ) | $ | (7,472 | ) | ||||
Denominator for diluted earnings per share - adjusted weighted
|
||||||||||||||||
average shares after assumed conversions and exercise of options:
|
||||||||||||||||
Weighted average shares used to compute basic EPS
|
226,839,514 | 22,678,877 | 97,493,073 | 22,470,014 | ||||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Employee stock options
|
- | - | - | 99,337 | ||||||||||||
Derivative warrants
|
1,910,389 | - | - | - | ||||||||||||
Convertible debentures
|
2,616,568,043 | - | 2,529,846,469 | 204,313,469 | ||||||||||||
Convertible preferred stock
|
594,867,557 | - | 594,867,557 | 74,384,038 | ||||||||||||
Dilutive potential common shares
|
3,213,345,989 | - | 3,124,714,026 | 278,796,844 | ||||||||||||
Denominator for diluted earnings per share-adjusted weighted
|
||||||||||||||||
average shares and assumed conversions
|
3,440,185,503 | 22,678,877 | 3,222,207,099 | 301,266,858 | ||||||||||||
Basic earning per share
|
$ | 0.26 | $ | (1.13 | ) | $ | 0.13 | $ | 1.74 | |||||||
Diluted earnings per share
|
$ | (0.00 | ) | $ | (1.13 | ) | $ | (0.00 | ) | $ | (0.02 | ) |
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Stock options
|
1,076,981 | 1,099,557 | 1,076,981 | 823,171 | ||||||||||||
Warrants
|
27,684,611 | 17,621,125 | 27,845,000 | 14,412,242 | ||||||||||||
Convertible debt
|
- | 213,076,644 | - | - | ||||||||||||
Convertible preferred stock
|
- | 74,698,729 | - | - | ||||||||||||
28,761,591 | 306,496,055 | 28,921,981 | 15,235,413 |
Pronouncement
|
Issued
|
Title
|
||
ASU No. 2011-08
|
September 2011
|
Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment
|
||
ASU No. 2011-09
|
September 2011
|
Compensation—Retirement Benefits—Multiemployer Plans (Subtopic 715-80): Disclosures about an Employer’s Participation in a Multiemployer Plan
|
July 13, 2011
|
August 12, 2011
|
September 15, 2011
|
||||||||||
debenture
|
debenture
|
debenture
|
||||||||||
(in thousands)
|
||||||||||||
Gross proceeds
|
$ | 450 | $ | 350 | $ | 450 | ||||||
Structuring and due diligence fee
|
(37 | ) | (37 | ) | (25 | ) | ||||||
$ | 413 | $ | 313 | $ | 425 | |||||||
Derivative liabilities:
|
||||||||||||
Investor warrants
|
$ | - | $ | - | $ | (28 | ) | |||||
Compound derivative
|
(1,242 | ) | (868 | ) | (303 | ) | ||||||
Total derivative liabilities
|
(1,242 | ) | (868 | ) | (331 | ) | ||||||
Day one derivative loss
|
829 | 555 | - | |||||||||
Convertible debenture-initial carrying value
|
- | - | (94 | ) | ||||||||
$ | (413 | ) | $ | (313 | ) | $ | (425 | ) |
July 13, 2011 Financing
|
August 12, 2011 Financing
|
September 15, 2011 Financing
|
||||||||||
Conversion price
|
$ | 0.0128 | $ | 0.0128 | $ | 0.0247 | ||||||
Equivalent volatility
|
188 | % | 187 | % | 183 | % | ||||||
Equivalent interest risk
|
14.00 | % | 14.00 | % | 14.00 | % | ||||||
Equivalent credit risk
|
7.19 | % | 7.20 | % | 7.63 | % |
September 15, 2011
|
||||
Exercise price
|
$ | 0.028 | ||
Expected life
|
5 years
|
|||
Estimated volatility
|
290 | % | ||
Risk free rate of return
|
0.15 | % | ||
Dividend yield
|
-- |
Conversion Price – Lower of Fixed Price or
|
||||||||||||||||
Default
|
Percentage of VWAP for Preceding Period | |||||||||||||||
Face
|
Interest
|
Interest
|
Fixed
|
Default
|
Preceding
|
|||||||||||
Debenture Issue Date
|
Amount
|
Maturity
|
Rate
|
Rate
|
Price
|
%
|
%
|
Period
|
||||||||
August 24, 2006
|
$ 5,000,000
|
7/29/2012
|
10%
|
n/a
|
$2.00
|
90%
|
n/a
|
125 Days
|
||||||||
December 29, 2006
|
$ 2,500,000
|
7/29/2012
|
10%
|
n/a
|
$2.00
|
90%
|
n/a
|
125 Days
|
||||||||
March 27, 2007
|
$ 6,168,693
|
7/29/2012
|
13%
|
n/a
|
$2.00
|
90%
|
n/a
|
125 Days
|
||||||||
August 24, 2007
|
$ 1,775,000
|
7/29/2012
|
14%
|
n/a
|
$2.00
|
80%
|
n/a
|
125 Days
|
||||||||
April 11, 2008
|
$ 390,000
|
7/29/2012
|
15%
|
24%
|
$1.50
|
80%
|
75%
|
125 Days
|
||||||||
May 16, 2008
|
$ 500,000
|
7/29/2012
|
15%
|
24%
|
$1.50
|
80%
|
50%
|
125 Days
|
||||||||
May 29, 2008
|
$ 790,000
|
7/29/2012
|
15%
|
24%
|
$1.00
|
80%
|
50%
|
125 Days
|
||||||||
July 10, 2008
|
$ 137,750
|
7/29/2012
|
15%
|
24%
|
$1.00
|
80%
|
50%
|
125 Days
|
||||||||
July 29, 2008
|
$ 2,325,000
|
7/29/2012
|
14%
|
24%
|
$2.00
|
95%
|
50%
|
125 Days
|
||||||||
October 28, 2008
|
$ 2,325,000
|
7/29/2012
|
14%
|
20%
|
$2.00
|
95%
|
50%
|
125 Days
|
||||||||
May 1, 2009
|
$ 258,037
|
7/29/2012
|
14%
|
20%
|
$2.00
|
95%
|
50%
|
125 Days
|
||||||||
June 5, 2009
|
$ 715,000
|
7/29/2012
|
14%
|
20%
|
$2.00
|
95%
|
50%
|
125 Days
|
||||||||
July 15, 2009
|
$ 535,000
|
7/29/2012
|
14%
|
20%
|
$2.00
|
95%
|
50%
|
125 Days
|
||||||||
August 14, 2009
|
$ 475,000
|
7/29/2012
|
14%
|
20%
|
$2.00
|
95%
|
50%
|
125 Days
|
||||||||
May 27, 2010
|
$ 2,006,137
|
7/29/2012
|
14%
|
20%
|
$0.30
|
95%
|
50%
|
60 Days
|
||||||||
August 13, 2010
|
$ 550,000
|
7/29/2012
|
14%
|
20%
|
$0.20
|
95%
|
50%
|
60 Days
|
||||||||
September 29, 2010
|
$ 475,000
|
7/29/2012
|
14%
|
20%
|
$0.20
|
95%
|
50%
|
60 Days
|
||||||||
October 28, 2010
|
$ 400,000
|
7/29/2012
|
14%
|
20%
|
$0.20
|
95%
|
50%
|
60 Days
|
||||||||
December 15, 2010
|
$ 450,000
|
7/29/2012
|
14%
|
20%
|
$0.10
|
95%
|
50%
|
60 Days
|
||||||||
January 10, 2011
|
$ 450,000
|
7/29/2012
|
14%
|
20%
|
$0.10
|
95%
|
50%
|
60 Days
|
||||||||
February 8, 2011
|
$ 650,000
|
7/29/2012
|
14%
|
20%
|
$0.10
|
95%
|
50%
|
60 Days
|
||||||||
March 11, 2011
|
$ 450,000
|
7/29/2012
|
14%
|
20%
|
$0.10
|
95%
|
50%
|
60 Days
|
||||||||
April 13, 2011
|
$ 450,000
|
7/29/2012
|
14%
|
20%
|
$0.10
|
95%
|
50%
|
60 Days
|
||||||||
May 31, 2011
|
$ 450,000
|
7/29/2012
|
14%
|
20%
|
$0.10
|
95%
|
50%
|
60 Days
|
||||||||
June 28, 2011
|
$ 250,000
|
7/29/2012
|
14%
|
20%
|
$0.10
|
95%
|
50%
|
60 Days
|
||||||||
July 13, 2011
|
$ 450,000
|
7/29/2012
|
14%
|
20%
|
$0.10
|
95%
|
50%
|
60 Days
|
||||||||
August 12, 2011
|
$ 350,000
|
7/29/2012
|
14%
|
20%
|
$0.10
|
95%
|
50%
|
60 Days
|
||||||||
September 15, 2011
|
$ 450,000
|
7/29/2012
|
14%
|
20%
|
$0.10
|
95%
|
50%
|
60 Days
|
Remaining
|
Equivalent
|
Equivalent
|
||||||||
Conversion
|
Term
|
Equivalent
|
Interest-Risk
|
Credit-Risk
|
||||||
Prices
|
(years)
|
Volatility
|
Adjusted Rate
|
Adjusted Rate
|
||||||
Series C preferred stock
|
$ 0.0131
|
0.84
|
180%
|
8.00%
|
7.63%
|
|||||
Series D preferred stock
|
$ 0.0131
|
0.84
|
180%
|
8.00%
|
7.63%
|
|||||
August 24, 2006
|
$ 0.0122
|
0.84
|
180%
|
10.00%
|
7.63%
|
|||||
December 29, 2006
|
$ 0.0122
|
0.84
|
180%
|
10.00%
|
7.63%
|
|||||
July 10, 2008
|
$ 0.0108
|
0.84
|
180%
|
15.00%
|
7.63%
|
|||||
July 29, 2008
|
$ 0.0128
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
October 28, 2008
|
$ 0.0128
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
May 1, 2009
|
$ 0.0128
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
June 5, 2009
|
$ 0.0128
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
July 15, 2009
|
$ 0.0128
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
August 14, 2009
|
$ 0.0128
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
May 27, 2010
|
$ 0.0128
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
August 13, 2010
|
$ 0.0128
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
September 29, 2010
|
$ 0.0128
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
October 28, 2010
|
$ 0.0128
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
December 15, 2010
|
$ 0.0128
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
January 10, 2011
|
$ 0.0128
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
February 8, 2011
|
$ 0.0128
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
March 11, 2011
|
$ 0.0128
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
April 13, 2011
|
$ 0.0128
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
May 31, 2011
|
$ 0.0128
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
June 28, 2011
|
$ 0.0128
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
July 13, 2011
|
$ 0.0128
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
August 12, 2011
|
$ 0.0165
|
0.84
|
180%
|
14.00%
|
7.63%
|
|||||
September 15, 2011
|
$ 0.0165
|
0.84
|
180%
|
14.00%
|
7.63%
|
Embedded
|
Common
|
|||||||||||||||||||||||
September 30, 2011
|
Face
|
Carrying
|
Accrued
|
Conversion
|
Stock
|
|||||||||||||||||||
Value
|
Value
|
Interest
|
Feature
|
Fair Value
|
Shares
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Series C preferred stock
|
$ | 5,433 | $ | 5,433 | $ | - | $ | 1,203 | $ | - | 414,707 | |||||||||||||
Series D preferred stock
|
$ | 2,360 | $ | 2,360 | $ | - | 522 | - | 180,160 | |||||||||||||||
August 24, 2006
|
$ | 5,000 | $ | 5,000 | $ | 2,251 | 1,817 | - | 594,315 | |||||||||||||||
December 29, 2006
|
2,500 | 2,500 | 1,127 | 907 | - | 297,257 | ||||||||||||||||||
March 27, 2007
|
6,169 | n/a | n/a | n/a | 10,553 | 505,631 | ||||||||||||||||||
August 24, 2007
|
1,775 | n/a | n/a | n/a | 3,783 | 164,352 | ||||||||||||||||||
April 11, 2008
|
390 | n/a | n/a | n/a | 835 | 36,111 | ||||||||||||||||||
May 16 ,2008
|
500 | n/a | n/a | n/a | 1,064 | 46,296 | ||||||||||||||||||
May 29, 2008
|
790 | n/a | n/a | n/a | 1,677 | 73,148 | ||||||||||||||||||
July 10, 2008
|
138 | 138 | 68 | 81 | - | 19,015 | ||||||||||||||||||
July 29, 2008
|
2,325 | 2,325 | 1,035 | 807 | - | 262,540 | ||||||||||||||||||
October 23, 2008
|
2,325 | 2,325 | 953 | 813 | - | 256,111 | ||||||||||||||||||
May 1, 2009
|
258 | 258 | 118 | 68 | - | 32,215 | ||||||||||||||||||
June 5, 2009
|
715 | 690 | 235 | 277 | - | 74,194 | ||||||||||||||||||
July 15, 2009
|
535 | 535 | 168 | 188 | - | 54,930 | ||||||||||||||||||
August 14, 2009
|
475 | 475 | 144 | 167 | - | 48,337 | ||||||||||||||||||
May 27, 2010
|
2,006 | 740 | 378 | 1,828 | - | 186,246 | ||||||||||||||||||
August 13, 2010
|
550 | 78 | 87 | 474 | - | 49,775 | ||||||||||||||||||
September 29, 2010
|
475 | 59 | 67 | 403 | - | 42,319 | ||||||||||||||||||
October 28, 2010
|
400 | 44 | 52 | 337 | - | 35,301 | ||||||||||||||||||
December 15, 2010
|
450 | 47 | 50 | 373 | - | 39,067 | ||||||||||||||||||
January 10, 2011
|
450 | 35 | 46 | 370 | - | 38,716 | ||||||||||||||||||
February 8, 2011
|
650 | 47 | 59 | 528 | - | 55,359 | ||||||||||||||||||
March 11, 2011
|
450 | 27 | 35 | 362 | - | 37,907 | ||||||||||||||||||
April 13, 2011
|
450 | 196 | 30 | 357 | - | 37,462 | ||||||||||||||||||
May 31, 2011
|
450 | 52 | 21 | 351 | - | 36,815 | ||||||||||||||||||
June 28, 2011
|
250 | 7 | 9 | 193 | - | 20,243 | ||||||||||||||||||
July 13, 2011
|
450 | 12 | 14 | 340 | - | 35,561 | ||||||||||||||||||
August 12, 2011
|
350 | 7 | 7 | 190 | - | 21,456 | ||||||||||||||||||
September 15, 2011
|
450 | 101 | 3 | 242 | - | 27,430 | ||||||||||||||||||
Total
|
$ | 31,726 | $ | 15,698 | $ | 6,957 | $ | 13,198 | $ | 17,912 | 3,722,976 |
Embedded
|
Common
|
|||||||||||||||||||||||
December 31, 2010
|
Face
|
Carrying
|
Accrued
|
Conversion
|
Stock
|
|||||||||||||||||||
Value
|
Value
|
Interest
|
Feature
|
Fair Value
|
Shares
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
Series C preferred stock
|
$ | 8,336 | $ | 8,336 | $ | - | $ | 6,706 | $ | - | 125,348 | |||||||||||||
Series D preferred stock
|
$ | 2,500 | $ | 2,500 | $ | - | 1,918 | - | 36,819 | |||||||||||||||
August 24, 2006
|
$ | 5,000 | $ | 5,000 | $ | 1,876 | 5,007 | - | 109,154 | |||||||||||||||
December 29, 2006
|
2,500 | 2,500 | 940 | 2,502 | - | 54,596 | ||||||||||||||||||
March 27, 2007
|
7,459 | n/a | n/a | n/a | 17,905 | 118,391 | ||||||||||||||||||
August 24, 2007
|
1,775 | n/a | n/a | n/a | 4,888 | 31,696 | ||||||||||||||||||
April 11, 2008
|
390 | n/a | n/a | n/a | 1,106 | 6,964 | ||||||||||||||||||
May 16 ,2008
|
500 | n/a | n/a | n/a | 1,392 | 8,929 | ||||||||||||||||||
May 29, 2008
|
790 | n/a | n/a | n/a | 2,193 | 14,107 | ||||||||||||||||||
July 10, 2008
|
138 | 138 | 51 | 180 | - | 3,387 | ||||||||||||||||||
July 29, 2008
|
2,325 | 2,325 | 792 | 2,381 | - | 46,873 | ||||||||||||||||||
October 23, 2008
|
2,325 | 2,325 | 709 | 2,279 | - | 46,873 | ||||||||||||||||||
May 1, 2009
|
258 | 258 | 92 | 237 | - | 5,249 | ||||||||||||||||||
June 5, 2009
|
715 | 668 | 158 | 771 | - | 13,139 | ||||||||||||||||||
July 15, 2009
|
535 | 535 | 111 | 404 | - | 9,719 | ||||||||||||||||||
August 14, 2009
|
475 | 475 | 93 | 482 | - | 8,546 | ||||||||||||||||||
May 27, 2010
|
2,006 | 302 | 168 | 2,785 | - | 32,690 | ||||||||||||||||||
August 13, 2010
|
550 | 13 | 29 | 732 | - | 8,715 | ||||||||||||||||||
September 29, 2010
|
475 | 9 | 17 | 620 | - | 7,398 | ||||||||||||||||||
October 28, 2010
|
400 | 6 | 10 | 517 | - | 6,163 | ||||||||||||||||||
December 15, 2010
|
450 | 6 | 3 | 571 | - | 6,811 | ||||||||||||||||||
Total
|
$ | 29,066 | $ | 14,560 | $ | 5,049 | $ | 28,092 | $ | 27,484 | 701,567 |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(in thousands)
|
(in thousands)
|
|||||||||||||||
March 27, 2007
|
$ | 10,013 | $ | (4,587 | ) | $ | 1,983 | $ | 8,218 | |||||||
August 24, 2007
|
3,107 | (1,223 | ) | 1,105 | 2,216 | |||||||||||
April 11, 2008
|
1,048 | (263 | ) | 271 | 505 | |||||||||||
May 16, 2008
|
1,342 | (336 | ) | 328 | 648 | |||||||||||
May 29, 2008
|
2,121 | (532 | ) | 516 | 1,024 | |||||||||||
Gain (loss) from changes in fair value of hybrid instruments
|
$ | 17,631 | $ | (6,941 | ) | $ | 4,203 | $ | 12,611 |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(in thousands)
|
(in thousands)
|
|||||||||||||||
Series C preferred stock
|
$ | 8,089 | $ | (4,827 | ) | $ | 244 | $ | 10,709 | |||||||
Series D preferred stock
|
3,518 | (1,375 | ) | 1,257 | 2,927 | |||||||||||
August 24, 2006
|
7,865 | (2,922 | ) | 3,190 | 10,158 | |||||||||||
December 29, 2006
|
3,933 | (1,525 | ) | 1,595 | 4,878 | |||||||||||
July 10, 2008
|
253 | (92 | ) | 99 | 236 | |||||||||||
July 29, 2008
|
3,575 | (1,285 | ) | 1,574 | 3,087 | |||||||||||
October 28, 2008
|
3,576 | (1,282 | ) | 1,466 | 2,810 | |||||||||||
May 1, 2009
|
397 | (149 | ) | 169 | 423 | |||||||||||
June 5, 2009
|
1,109 | (357 | ) | 494 | 831 | |||||||||||
July 15, 2009
|
824 | (295 | ) | 216 | 695 | |||||||||||
August 14, 2009
|
735 | (261 | ) | 315 | 604 | |||||||||||
May 27, 2010
|
3,138 | (696 | ) | 957 | (271 | ) | ||||||||||
August 13, 2010
|
820 | 122 | 258 | 122 | ||||||||||||
September 29, 2010
|
697 | - | 217 | - | ||||||||||||
October 28, 2010
|
580 | - | 180 | - | ||||||||||||
December 15, 2010
|
642 | - | 198 | - | ||||||||||||
January 10, 2011
|
636 | - | 203 | - | ||||||||||||
February 8, 2011
|
910 | - | 216 | - | ||||||||||||
March 11, 2011
|
622 | - | 315 | - | ||||||||||||
April 13, 2011
|
615 | - | (73 | ) | - | |||||||||||
May 31, 2011
|
604 | - | (41 | ) | - | |||||||||||
June 28, 2011
|
332 | - | 332 | - | ||||||||||||
July 13, 2011
|
902 | - | 902 | - | ||||||||||||
August 12, 2011
|
678 | - | 678 | - | ||||||||||||
September 15, 2011
|
61 | - | 61 | - | ||||||||||||
45,111 | (14,944 | ) | 15,022 | 37,209 | ||||||||||||
Less: Day-one loss from Series D Convertible Preferred financing
|
- | - | - | (4,582 | ) | |||||||||||
Less: Day-one loss from May 27, 2010 financing
|
- | - | - | (747 | ) | |||||||||||
Less: Day-one loss from August 13, 2010 financing
|
- | (407 | ) | - | (407 | ) | ||||||||||
Less: Day-one loss from September 29, 2010 financing
|
- | (210 | ) | - | (210 | ) | ||||||||||
Less: Day-one loss from January 10, 2011 financing
|
- | - | (292 | ) | - | |||||||||||
Less: Day-one loss from February 8, 2011 financing
|
- | - | (193 | ) | - | |||||||||||
Less: Day-one loss from March 11, 2011 financing
|
- | - | (291 | ) | - | |||||||||||
Less: Day-one loss from June 28, 2011 financing
|
- | - | (405 | ) | - | |||||||||||
Less: Day-one loss from July 13, 2011 financing
|
(829 | ) | - | (829 | ) | - | ||||||||||
Less: Day-one loss from August 12, 2011 financing
|
(555 | ) | - | (555 | ) | - | ||||||||||
Gain (loss) from change in fair value of derivative liability
|
$ | 43,727 | $ | (15,561 | ) | $ | 12,457 | $ | 31,263 |
September 30,
|
December 31,
|
September 30,
|
December 31,
|
||||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
||||||||||||||||||||||
Exercise
|
Exercise
|
Expiration
|
Fair
|
Fair
|
|||||||||||||||||||||
Price
|
Price
|
Date
|
Warrants
|
Value
|
Warrants
|
Value
|
|||||||||||||||||||
(in thousands)
|
(in thousands)
|
||||||||||||||||||||||||
Series C preferred stock
|
n/a | $ | 0.06 |
2/17/2011
|
- | $ | - | 750 | $ | 53 | |||||||||||||||
Series D preferred stock
|
0.0128 | 0.10 |
1/5/2017
|
2,250 | 35 | 2,250 | 255 | ||||||||||||||||||
August 24, 2006
|
n/a | 0.06 |
8/24/2011
|
- | - | 1,750 | 148 | ||||||||||||||||||
December 29, 2006
|
0.0108 | 0.06 |
12/29/2011
|
420 | 4 | 420 | 37 | ||||||||||||||||||
March 27, 2007
|
0.0108 | 0.06 |
3/27/2012
|
1,250 | 14 | 1,250 | 122 | ||||||||||||||||||
August 24, 2007
|
0.0108 | 0.06 |
8/24/2012
|
750 | 11 | 750 | 72 | ||||||||||||||||||
May 16, 2008
|
0.0108 | 0.06 |
5/16/2015
|
75 | 1 | 75 | 8 | ||||||||||||||||||
May 29, 2008
|
0.0108 | 0.06 |
5/29/2015
|
500 | 8 | 500 | 56 | ||||||||||||||||||
July 29, 2008
|
0.0128 | 0.07 |
7/29/2015
|
1,000 | 16 | 1,000 | 112 | ||||||||||||||||||
July 29, 2008
|
0.0128 | 0.10 |
7/29/2015
|
3,500 | 56 | 3,500 | 383 | ||||||||||||||||||
May 27, 2010
|
0.0128 | 0.10 |
5/27/2015
|
5,000 | 79 | 5,000 | 563 | ||||||||||||||||||
August 13, 2010
|
0.0128 | 0.10 |
8/13/2015
|
1,000 | 16 | 1,000 | 113 | ||||||||||||||||||
September 29, 2010
|
0.0128 | 0.10 |
9/29/2015
|
750 | 12 | 750 | 84 | ||||||||||||||||||
October 15, 2010
|
0.0128 | 0.10 |
10/15/2015
|
600 | 9 | 600 | 67 | ||||||||||||||||||
December 15, 2010
|
0.0128 | 0.10 |
12/15/2015
|
1,250 | 20 | 1,250 | 140 | ||||||||||||||||||
January 10, 2011
|
0.0128 | n/a |
1/10/2016
|
1,250 | 20 | - | - | ||||||||||||||||||
February 8, 2011
|
0.0128 | n/a |
2/8/2016
|
1,250 | 20 | - | - | ||||||||||||||||||
March 11, 2011
|
0.0128 | n/a |
3/11/2016
|
1,000 | 16 | - | - | ||||||||||||||||||
April 13, 2011
|
0.0128 | n/a |
4/13/2016
|
1,000 | 16 | - | - | ||||||||||||||||||
May 31, 2011
|
0.0128 | n/a |
5/31/2016
|
1,000 | 16 | - | - | ||||||||||||||||||
June 28, 2011
|
0.0128 | n/a |
6/28/2016
|
3,000 | 48 | - | - | ||||||||||||||||||
September 15, 2011
|
0.0166 | n/a |
9/15/2016
|
1,000 | 16 | - | - | ||||||||||||||||||
Other warrants
|
n/a | 1.10 |
1/16/2011
|
- | - | 1 | - | ||||||||||||||||||
Total
|
27,845 | $ | 433 | 20,846 | $ | 2,213 |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(in thousands)
|
(in thousands)
|
|||||||||||||||
Series C preferred Stock
|
$ | - | $ | (29 | ) | $ | 53 | $ | 616 | |||||||
Series D preferred Stock
|
42 | $ | (157 | ) | 220 | 1,931 | ||||||||||
August 24, 2006
|
45 | (96 | ) | 148 | 1,412 | |||||||||||
December 29, 2006
|
9 | (21 | ) | 33 | 336 | |||||||||||
March 27, 2007
|
26 | (62 | ) | 108 | 1,012 | |||||||||||
August 24, 2007
|
14 | (49 | ) | 61 | 595 | |||||||||||
May 16, 2008
|
1 | (6 | ) | 7 | 60 | |||||||||||
May 28, 2008
|
9 | (38 | ) | 48 | 403 | |||||||||||
July 29, 2008
|
37 | (65 | ) | 96 | 779 | |||||||||||
July 29, 2008
|
48 | (229 | ) | 327 | 2,763 | |||||||||||
May 27, 2010
|
95 | (364 | ) | 484 | (178 | ) | ||||||||||
August 13, 2010
|
19 | 11 | 97 | 11 | ||||||||||||
September 29, 2010
|
14 | - | 72 | - | ||||||||||||
October 28, 2010
|
12 | - | 58 | - | ||||||||||||
December 15, 2010
|
23 | - | 120 | - | ||||||||||||
January 10, 2011
|
24 | - | 124 | - | ||||||||||||
February 8, 2011
|
24 | - | 39 | - | ||||||||||||
March 11, 2011
|
19 | - | 23 | - | ||||||||||||
April 13, 2011
|
19 | - | 2 | - | ||||||||||||
May 31, 2011
|
19 | - | 74 | - | ||||||||||||
June 28, 2011
|
57 | - | 57 | - | ||||||||||||
September 15, 2011
|
12 | - | 12 | - | ||||||||||||
Other warrants
|
- | - | - | 11 | ||||||||||||
Total
|
$ | 568 | $ | (1,105 | ) | $ | 2,263 | $ | 9,751 |
Compound
|
||||||||||||
Embedded
|
Warrant
|
|||||||||||
Derivatives
|
Derivatives
|
Total
|
||||||||||
Beginning balance, December 31, 2010:
|
$ | 28,092 | $ | 2,213 | $ | 30,305 | ||||||
Issuances:
|
||||||||||||
January 10, 2011
|
573 | 144 | 717 | |||||||||
February 8, 2011
|
744 | 59 | 803 | |||||||||
March 11, 2011
|
677 | 39 | 716 | |||||||||
Fair value adjustments:
|
||||||||||||
Compound embedded derivatives
|
(7,447 | ) | - | (7,447 | ) | |||||||
Warrant derivatives
|
- | (1,782 | ) | (1,782 | ) | |||||||
Conversions:
|
||||||||||||
Series C preferred stock
|
(157 | ) | - | (157 | ) | |||||||
Ending balance, March 31, 2011
|
22,482 | 673 | 23,155 | |||||||||
Issuances:
|
||||||||||||
April 13, 2011
|
284 | 18 | 302 | |||||||||
May 31, 2011
|
310 | 90 | 400 | |||||||||
June 28, 2011
|
525 | 105 | 630 | |||||||||
Fair value adjustments:
|
||||||||||||
Compound embedded derivatives
|
37,536 | - | 37,536 | |||||||||
Warrant derivatives
|
- | 87 | 87 | |||||||||
Conversions:
|
||||||||||||
Series C preferred stock
|
(4,190 | ) | - | (4,190 | ) | |||||||
Ending balance, June 30, 2011
|
56,947 | 973 | 57,920 | |||||||||
Issuances:
|
||||||||||||
July 13, 2011
|
1,242 | - | 1,242 | |||||||||
August 12, 2011
|
868 | - | 868 | |||||||||
September 15, 2011
|
303 | 28 | 331 | |||||||||
Fair value adjustments:
|
||||||||||||
Compound embedded derivatives
|
(45,111 | ) | - | (45,111 | ) | |||||||
Warrant derivatives
|
- | (568 | ) | (568 | ) | |||||||
Conversions:
|
||||||||||||
Series C preferred stock
|
(912 | ) | - | (912 | ) | |||||||
Series D preferred stock
|
(139 | ) | (139 | ) | ||||||||
Ending balance, September 30, 2011
|
$ | 13,198 | $ | 433 | $ | 13,631 |
Nine Months Ended September 30,
|
|||
2011
|
2010
|
||
Volatility
|
148%-210%
|
145%-210%
|
|
Expected dividends
|
-
|
-
|
|
Expected term (in years)
|
5.77
|
6.5
|
|
Risk-free rate
|
0.90%-2.89%
|
1.85%-2.68%
|
Weighted-
|
||||||||||||
Average
|
||||||||||||
Weighted-
|
Contractual
|
|||||||||||
Average
|
Aggregate |
Life
|
||||||||||
Exercise
|
Intrinsic |
Remaining
|
||||||||||
Shares
|
Price
|
Value |
in Years
|
|||||||||
(in thousands)
|
(in thousands)
|
|||||||||||
Outstanding at December 31, 2010
|
702 | $ | 1.23 | |||||||||
Granted
|
1,023 | $ | 0.03 | |||||||||
Exercised
|
- | $ | - | |||||||||
Forfeited
|
(648 | ) | $ | 1.15 | ||||||||
Outstanding at September 30, 2011
|
1,077 | $ | 0.34 | $ |
-
|
8.7
|
||||||
Exercisable at September 30, 2011
|
801 | $ | 0.45 | $ |
-
|
8.4
|
Weighted
|
||||||||
Average
|
||||||||
Grant Date
|
||||||||
Nonvested Shares
|
Shares
|
Fair Value
|
||||||
(in thousands)
|
||||||||
Nonvested at December 31, 2010
|
120 | $ | 0.71 | |||||
Granted
|
1,023 | $ | 0.04 | |||||
Vested
|
(432 | ) | $ | 0.01 | ||||
Forfeited
|
(435 | ) | $ | 0.84 | ||||
Nonvested at September 30, 2011
|
276 | $ | 0.01 |
Options Outstanding
|
Options Exercisable
|
|||||||||
Exercise Prices
|
Number of
Shares
|
Weighted-Average Remaining Life
|
Weighted-Average Exercise Price
|
Number of
Shares
|
Weighted-Average Exercise Price
|
|||||
(in thousands)
|
(in years)
|
(in thousands)
|
||||||||
$0.017 to $0.39
|
737
|
9.5
|
$ 0.03
|
461
|
$ 0.03
|
|||||
$1.00
|
331
|
6.9
|
$ 1.00
|
331
|
$ 1.00
|
|||||
$2.00
|
9
|
7.6
|
$ 2.00
|
9
|
$ 2.00
|
|||||
1,077
|
8.7
|
$ 0.34
|
801
|
$ 0.45
|
September 30, 2011
|
December 31, 2010
|
|||||||
(in thousands)
|
||||||||
Accruals for disputed services
|
$ | 2,318 | $ | 2,318 | ||||
Accrued operating expenses
|
1,642 | 2,042 | ||||||
Accrued payroll related expenses
|
113 | - | ||||||
Accrued interest
|
6,959 | 5,053 | ||||||
Total
|
$ | 11,032 | $ | 9,413 |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(in thousands)
|
(in thousands)
|
|||||||||||||||
Revenue:
|
||||||||||||||||
United States
|
$ | 501 | $ | 297 | $ | 1,274 | $ | 922 | ||||||||
Germany
|
27 | 41 | 390 | 284 | ||||||||||||
Total
|
$ | 528 | $ | 338 | $ | 1,664 | $ | 1,206 | ||||||||
Net income (loss):
|
||||||||||||||||
United States
|
$ | 59,936 | $ | (25,160 | ) | $ | 13,515 | $ | 42,673 | |||||||
Germany
|
(489 | ) | (471 | ) | (1,139 | ) | (1,178 | ) | ||||||||
Total
|
$ | 59,447 | $ | (25,631 | ) | $ | 12,376 | $ | 41,495 |
September 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Identifiable assets:
|
|
|
||||||
United States
|
$ | 7,753 | $ | 8,179 | ||||
Germany
|
272 | 394 | ||||||
Total
|
$ | 8,025 | $ | 8,573 |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(in thousands)
|
(in thousands)
|
|||||||||||||||
Revenues:
|
||||||||||||||||
Barcode Reader
|
$ | 19 | $ | 22 | $ | 361 | $ | 89 | ||||||||
Barcode Management & Infrastructure
|
107 | 5 | 195 | 16 | ||||||||||||
IP Licensing
|
380 | 277 | 892 | 899 | ||||||||||||
Consulting
|
- | - | 2 | - | ||||||||||||
Hardware
|
18 | 13 | 52 | 175 | ||||||||||||
Other
|
4 | 21 | 162 | 27 | ||||||||||||
Total revenues
|
$ | 528 | $ | 338 | $ | 1,664 | $ | 1,206 |
·
|
Gross proceeds of $450,000 in connection with a Secured Debenture entered into with YA Global on January 10, 2011, accruing interest at 14% per annum and payable on the maturity date of July 29, 2012, less structuring and due diligence fees of $25,000, resulting in net proceeds of $425,000; and
|
·
|
Gross proceeds of $650,000 in connection with a Secured Debenture entered into with YA Global on February 8, 2011, accruing interest at 14% per annum and payable on the maturity date of July 29, 2012, less structuring and due diligence fee of $40,000, resulting in net proceeds of $610,000; and
|
·
|
Gross proceeds of $450,000 in connection with a Secured Debenture entered into with YA Global on March 11, 2011, accruing interest at 14% per annum and payable on the maturity date of July 29, 2012, less structuring and due diligence fee of $25,000, resulting in net proceeds of $425,000; and
|
·
|
Gross proceeds of $450,000 in connection with a Secured Debenture entered into with YA Global on April 13, 2011, accruing interest at 14% per annum and payable on the maturity date of July 29, 2012, less structuring and due diligence fees of $25,000, resulting in net proceeds of $425,000; and
|
·
|
Gross proceeds of $450,000 in connection with a Secured Debenture entered into with YA Global on May 31, 2011, accruing interest at 14% per annum and payable on the maturity date of July 29, 2012, less structuring and due diligence fee of $25,000, resulting in net proceeds of $425,000; and
|
·
|
Gross proceeds of $250,000 in connection with a Secured Debenture entered into with YA Global on June 28, 2011, accruing interest at 14% per annum and payable on the maturity date of July 29, 2012, less structuring and due diligence fee of $100,000, resulting in net proceeds of $150,000. The structuring and due diligence fees in connection with this debenture, will also be applied to satisfy and provide for the next two scheduled debenture financings; the first of which occurred on July 13, 2011, and the second of which is scheduled to occur on or before August 15, 2011; and
|
·
|
Gross proceeds of $450,000 in connection with a Secured Debenture entered into with YA Global on July 13, 2011, accruing interest at 14% per annum and payable on the maturity date of July 29, 2012. There were no structuring or due diligence fee deducted from the gross proceeds of this financing since they were satisfied with the June 28, 2011 financing, resulting in net proceeds of $450,000; and
|
·
|
Gross proceeds of $350,000 in connection with a Secured Debenture entered into with YA Global on August 13, 2011, accruing interest at 14% per annum and payable on the maturity date of July 29, 2012. There were no structuring or due diligence fee deducted from the gross proceeds of this financing since they were satisfied with the June 28, 2011 financing, resulting in net proceeds of $350,000; and
|
·
|
Gross proceeds of $450,000 in connection with a Secured Debenture entered into with YA Global on September 15, 2011, accruing interest at 14% per annum and payable on the maturity date of July 29, 2012, less structuring and due diligence fee of $25,000, resulting in net proceeds of $425,000.
|
|
•
|
Our senior management did not establish and maintain a proper tone as to internal control over financial reporting as of December 31, 2010. Specifically, our senior management was unable, due to time constraints, to promptly address all of the control weaknesses brought to their attention throughout this and the previous year’s audit; and
|
|
•
|
We, through our senior management, failed to maintain formalized accounting policies and procedures as of December 31, 2010. Once implemented, the policies and procedures should provide guidance to accounting personnel in the proper treatment and recording of financial transactions, as well as proper internal controls over financial reporting.
|
Exhibit Number
|
Description
|
Filed
Herewith
|
Form
|
Exhibit
|
Filing Date
|
|||||
3.1
|
Articles of Incorporation of Dev-Tech Associates, Inc. and amendment thereto
|
SB-2
|
3.1
|
11/25/1996
|
||||||
3.2
|
By-laws of NeoMedia Technologies, Inc.
|
8-K
|
3.2
|
12/21/2010
|
||||||
3.3
|
Restated Certificate of Incorporation of DevSys, Inc.
|
SB-2
|
3.3
|
11/25/1996
|
||||||
3.4
|
Articles of Merger and Agreement and Plan of Merger of DevSys, Inc and Dev-Tech Associates, Inc.
|
SB-2
|
3.5
|
11/25/1996
|
||||||
3.5
|
Certificate of Merger of Dev-Tech Associates, Inc. into DevSys, Inc.
|
SB-2
|
3.6
|
11/25/1996
|
||||||
3.6
|
Articles of Incorporation of Dev-Tech Migration, Inc. and amendment thereto
|
SB-2
|
3.7
|
11/25/1996
|
||||||
3.7
|
Restated Certificate of Incorporation of DevSys Migration, Inc.
|
SB-2
|
3.9
|
11/25/1996
|
||||||
3.8
|
Form of Agreement and Plan of Merger of Dev-Tech Migration, Inc. into DevSys Migration, Inc.
|
SB-2
|
3.11
|
11/25/1996
|
||||||
3.9
|
Form of Certificate of Merger of Dev-Tech Migration, Inc. into DevSys Migration, Inc.
|
SB-2
|
3.12
|
11/25/1996
|
||||||
3.10
|
Certificate of Amendment to Certificate of Incorporation of DevSys, Inc. changing our name to NeoMedia Technologies, Inc.
|
SB-2
|
3.13
|
11/25/1996
|
||||||
3.11
|
Form of Certificate of Amendment to Certificate of Incorporation of NeoMedia Technologies, Inc. authorizing a reverse stock split
|
SB-2
|
3.14
|
11/25/1996
|
||||||
3.12
|
Form of Certificate of Amendment to Restated Certificate of Incorporation of NeoMedia Technologies, Inc. increasing authorized capital and creating preferred stock
|
SB-2
|
3.15
|
11/25/1996
|
||||||
3.13
|
Certificate of Amendment to the Certificate of Designation of the Series "C" Convertible Preferred Stock date January 5, 2010.
|
8-K
|
3.1
|
1/11/2010
|
||||||
3.14
|
Certificate of Designation of the Series "D" Convertible Preferred Stock date January 5, 2010.
|
8-K
|
3.2
|
1/11/2010
|
||||||
3.15
|
Certificate of Amendment to the Certificate of Designation of the Series "D" Convertible Preferred Stock dated January 7, 2010
|
8-K
|
3.3
|
1/11/2010
|
||||||
3.16
|
Certificate of amendment to the certificate of designation of the series D convertible preferred stock issued by the Company to YA Global dated January 5, 2010.
|
8-K
|
3.1
|
3/11/2010
|
||||||
10.1
|
Warrant dated March 30, 2005, granted by NeoMedia to Thornhill Capital LLC
|
S-3/A
|
10.12
|
7/18/2005
|
||||||
10.2
|
Warrant dated March 30, 2005, granted by NeoMedia to Cornell Capital Partners LP
|
S-3/A
|
10.13
|
7/18/2005
|
||||||
10.3
|
Definitive Sale and Purchase Agreement between NeoMedia and Gavitec
|
8-K
|
16.1
|
2/21/2006
|
||||||
10.4
|
Definitive Sale and Purchase Agreement between NeoMedia and Sponge
|
8-K
|
16.1
|
2/22/2006
|
||||||
10.5
|
Investment Agreement, dated February 17, 2006 between NeoMedia and Cornell Capital Partners
|
8-K
|
10.1
|
2/21/2006
|
||||||
10.6
|
Investor Registration Rights Agreement, dated February 17, 2006 between NeoMedia and Cornell Capital Partners
|
8-K
|
10.2
|
2/21/2006
|
||||||
10.7
|
Irrevocable Transfer Agent Instruction, dated February 17, 2006, by and among NeoMedia, Cornell Capital Partners and American Stock Transfer & Trust Co.
|
8-K
|
10.3
|
2/21/2006
|
Exhibit Number
|
Description
|
Filed
Herewith
|
Form
|
Exhibit
|
Filing Date
|
|||||
10.8
|
Warrant, dated February 17, 2006
|
8-K
|
10.4
|
2/21/2006
|
||||||
10.9
|
Warrant, dated February 17, 2006
|
8-K
|
10.5
|
2/21/2006
|
||||||
10.10
|
Warrant, dated February 17, 2006
|
8-K
|
10.6
|
2/21/2006
|
||||||
10.11
|
Assignment Agreement, dated February 17, 2006 by NeoMedia and Cornell Capital Partners
|
8-K
|
10.7
|
2/21/2006
|
||||||
10.12
|
Assignment of Common Stock, dated February 17, 2006 between NeoMedia and Cornell Capital Partners
|
8-K
|
10.8
|
2/21/2006
|
||||||
10.13
|
Securities Purchase Agreement, dated August 24, 2006, between the Company and Cornell Capital Partners, LP
|
8-K
|
10.1
|
8/30/2006
|
||||||
10.14
|
Investor Registration Rights Agreement, dated August 24, 2006, between the Company and Cornell Capital Partners, LP
|
8-K
|
10.2
|
8/30/2006
|
||||||
10.15
|
Pledge and Security Agreement, dated August 24, 2006, between the Company and Cornell Capital Partners, LP
|
8-K
|
10.3
|
8/30/2006
|
||||||
10.16
|
Secured Convertible Debenture, dated August 24, 2006, issued by the Company to Cornell Capital Partners, LP
|
8-K
|
10.4
|
8/30/2006
|
||||||
10.17
|
Irrevocable Transfer Agent Instructions, dated August 24, 2006, by and among the Company, Cornell Capital Partners, LP and American Stock Transfer & Trust Co.
|
8-K
|
10.5
|
8/30/2006
|
||||||
10.18
|
A Warrant, dated August 24, 2006
|
8-K
|
10.6
|
8/30/2006
|
||||||
10.19
|
B Warrant, dated August 24, 2006
|
8-K
|
10.7
|
8/30/2006
|
||||||
10.20
|
C Warrant, dated August 24, 2006
|
8-K
|
10.8
|
8/30/2006
|
||||||
10.21
|
D Warrant, dated August 24, 2006
|
8-K
|
10.9
|
8/30/2006
|
||||||
10.22
|
Amendment to Warrant No. CCP-002, dated August 24, 2006, between the Company and Cornell Capital Partners, LP
|
8-K
|
10.1
|
8/30/2006
|
||||||
10.23
|
Amendment to “A” Warrant No. CCP-001, dated August 24, 2006, between the Company and Cornell Capital Partners, LP
|
8-K
|
10.11
|
8/30/2006
|
||||||
10.24
|
Amendment to “B” Warrant No. CCP-002, dated August 24, 2006, between the Company and Cornell Capital Partners, LP
|
8-K
|
10.12
|
8/30/2006
|
||||||
10.25
|
Amendment to “C” Warrant No. CCP-003, dated August 24, 2006, between the Company and Cornell Capital Partners, LP
|
8-K
|
10.13
|
8/30/2006
|
||||||
10.26
|
Definitive share purchase and settlement agreement between NeoMedia and Sponge, dated November 14, 2006
|
8-K
|
16.1
|
11/20/2006
|
||||||
10.27
|
Securities Purchase Agreement, dated December 29, 2006, between the Company and Cornell Capital Partners, LP
|
8-K
|
10.1
|
1/8/2007
|
||||||
10.28
|
Investor Registration Rights Agreement, dated December 29, 2006, between the Company and Cornell Capital Partners, LP
|
8-K
|
10.2
|
1/8/2007
|
||||||
10.29
|
Secured Convertible Debenture, dated December 29, 2006, issued by the Company to Cornell Capital Partners, LP
|
8-K
|
10.3
|
1/8/2007
|
||||||
10.30
|
Irrevocable Transfer Agent Instructions, dated December 29, 2006, by and among the Company, Cornell Capital Partners, LP and American Stock Transfer & Trust Co.
|
8-K
|
10.4
|
1/8/2007
|
||||||
10.31
|
A Warrant, dated December 29, 2006
|
8-K
|
10.5
|
1/8/2007
|
||||||
10.32
|
Amendment to Warrant No. CCP-002, dated December 29, 2006, between the Company and Cornell Capital Partners, LP
|
8-K
|
10.6
|
1/8/2007
|
||||||
10.33
|
Amendment to “A” Warrant No. CCP-001, dated December 29, 2006, between the Company and Cornell Capital Partners, LP
|
8-K
|
10.7
|
1/8/2007
|
||||||
10.34
|
Amendment to “B” Warrant No. CCP-002, dated December 29, 2006, between the Company and Cornell Capital Partners, LP
|
8-K
|
10.8
|
1/8/2007
|
||||||
10.35
|
Amendment to “C” Warrant No. CCP-003, dated December 29, 2006, between the Company and Cornell Capital Partners, LP
|
8-K
|
10.9
|
1/8/2007
|
||||||
10.36
|
Amendment to “A” Warrant No. CCP-001, dated December 29, 2006, between the Company and Cornell Capital Partners, LP
|
8-K
|
10.1
|
1/8/2007
|
||||||
10.37
|
Amendment to “B” Warrant No. CCP-001, dated December 29, 2006, between the Company and Cornell Capital Partners, LP
|
8-K
|
10.11
|
1/8/2007
|
||||||
10.38
|
Amendment to “C” Warrant No. CCP-001, dated December 29, 2006, between the Company and Cornell Capital Partners, LP
|
8-K
|
10.12
|
1/8/2007
|
Exhibit Number
|
Description
|
Filed
Herewith
|
Form
|
Exhibit
|
Filing Date
|
|||||
10.39
|
Securities Purchase Agreement, dated December 29, 2006, between the Company and Cornell Capital Partners, LP
|
8-K
|
10.13
|
1/8/2007
|
||||||
10.40
|
Amendment Agreement I to the Sale and Purchase Agreement between NeoMedia and certain former shareholders of Gavitec AG, dated January 23, 2007
|
8-K
|
10.1
|
1/29/2007
|
||||||
10.41
|
Consulting Agreement between the Company and SKS Consulting of South Florida Corp.
|
8-K
|
10.1
|
2/6/2007
|
||||||
10.42
|
Securities Purchase Agreement between NeoMedia and Cornell Capital Partners LP, dated March 27, 2007
|
8-K
|
10.1
|
3/27/2007
|
||||||
10.43
|
Investor Registration Rights Agreement between NeoMedia and Cornell Capital Partners LP, dated March 27, 2007
|
8-K
|
10.2
|
3/27/2007
|
||||||
10.44
|
Secured Convertible Debenture, issued by NeoMedia to Cornell Capital Partners, LP, dated March 27, 2007
|
8-K
|
10.3
|
3/27/2007
|
||||||
10.45
|
Irrevocable Transfer Agent Instructions, by and among NeoMedia, Cornell Capital Partners, LP and Worldwide Stock Transfer, dated March 27, 2007
|
8-K
|
10.4
|
3/27/2007
|
||||||
10.46
|
Warrant, issued by NeoMedia to Cornell Capital Partners, LP, dated March 27, 2007
|
8-K
|
10.5
|
3/27/2007
|
||||||
10.47
|
Master Amendment Agreement, by and between NeoMedia and Cornell Capital Partners, LP, dated March 27, 2007
|
8-K
|
10.6
|
3/27/2007
|
||||||
10.48
|
Security Agreement, by and between NeoMedia and Cornell Capital Partners, LP, dated on or about August 24, 2006
|
8-K
|
10.7
|
3/27/2007
|
||||||
10.49
|
Security Agreement, by and between NeoMedia and Cornell Capital Partners, LP, dated March 27,2007
|
8-K
|
10.8
|
3/27/2007
|
||||||
10.50
|
Security Agreement (Patent), by and between NeoMedia and Cornell Capital Partners, LP, dated March 27, 2007
|
8-K
|
10.9
|
3/27/2007
|
||||||
10.51
|
Pledge Shares Escrow Agreement, by and between NeoMedia and Cornell Capital Partners, dated March 27, 2007
|
8-K
|
10.1
|
3/27/2007
|
||||||
10.52
|
Completion of Acquisition of Disposition of Assets of BSD Software Inc.
|
8-K/A
|
10.1
|
6/8/2007
|
||||||
10.53
|
Registration Rights Agreement, by and between NeoMedia and YA Global Investments, L.P., dated August 24, 2007
|
8-K
|
10.1
|
8/30/2007
|
||||||
10.54
|
Secured Convertible Debenture, issued by NeoMedia to YA Global Investments, dated August 24, 2007
|
8-K
|
10.2
|
8/30/2007
|
||||||
10.55
|
Irrevocable Transfer Agent Instructions, by and among NeoMedia, YA Global Investments, L.P. and Worldwide Stock Transfer, LLC, dated August 24, 2007
|
8-K
|
10.3
|
8/30/2007
|
||||||
10.56
|
Warrant issued by NeoMedia to YA Global Investments, L.P., dated August 24, 2007
|
8-K
|
10.4
|
8/30/2007
|
||||||
10.57
|
Repricing Agreement, by and between NeoMedia and YA Global Investments, L.P., dated August 24, 2007
|
8-K
|
10.5
|
8/30/2007
|
||||||
10.58
|
Security Agreement, by and between NeoMedia and YA Global Investments, L.P., dated August 24, 2007
|
8-K
|
10.6
|
8/30/2007
|
||||||
10.59
|
Security Agreement (Patent), by and between NeoMedia and YA Global Investments, L.P., dated August 24, 2007
|
8-K
|
10.7
|
8/30/2007
|
||||||
10.60
|
Secured Convertible Debenture, dated April 11, 2008, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.1
|
4/17/2008
|
||||||
10.61
|
Secured Convertible Debenture, dated May 16, 2008, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.1
|
5/22/2008
|
||||||
10.62
|
Warrant, dated May 16, 2008, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.2
|
5/22/2008
|
Exhibit Number
|
Description
|
Filed
Herewith
|
Form
|
Exhibit
|
Filing Date
|
|||||
10.63
|
Secured Convertible Debenture, dated May 30, 2008, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.1
|
6/5/2008
|
||||||
10.64
|
Warrant, dated May 30, 2008, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.2
|
6/5/2008
|
||||||
10.65
|
Settlement Agreement and Release, dated June 3, 2008, by and between the Company and William Hoffman
|
8-K
|
10.5
|
6/5/2008
|
||||||
10.66
|
Employment Agreement, dated June 10, 2008, by and between NeoMedia Technologies, Inc. and Iain McCready
|
8-K
|
10.1
|
6/16/2008
|
||||||
10.67
|
Secured Convertible Debenture, dated July 10, 2008, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.1
|
7/16/2008
|
||||||
10.68
|
Securities Purchase Agreement, dated July 29, 2008, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.1
|
8/4/2008
|
||||||
10.69
|
Secured Convertible Debenture, dated July 29, 2008, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.2
|
8/4/2008
|
||||||
10.70
|
Security Agreement, dated July 29, 2008, by and among the Company, each of the Company’s subsidiaries made a party thereto and YA Global Investments, L.P.
|
8-K
|
10.3
|
8/4/2008
|
||||||
10.71
|
Patent Security Agreement, dated July 29, 2008, by and among the Company, each of the Company’s subsidiaries made a party thereto and YA Global Investments, L.P.
|
8-K
|
10.4
|
8/4/2008
|
||||||
10.72
|
Warrant 9-1A, dated July 29, 2008, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.5
|
8/4/2008
|
||||||
10.73
|
Warrant 9-1B, dated July 29, 2008, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.6
|
8/4/2008
|
||||||
10.74
|
Warrant 9-1C, dated July 29, 2008, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.7
|
8/4/2008
|
||||||
10.75
|
Warrant 9-1D, dated July 29, 2008, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.8
|
8/4/2008
|
||||||
10.76
|
Escrow Agreement, dated July 29, 2008, by and among the Company, YA Global Investments, L.P., Yorkville Advisors, LLC and David Gonzalez, Esq.
|
8-K
|
10.9
|
8/4/2008
|
||||||
10.77
|
Irrevocable Transfer Agent Instructions, dated July 29, 2008, by and among the Company, the Investor, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC
|
8-K
|
10.1
|
8/4/2008
|
||||||
10.78
|
Letter Agreement, dated September 24, 2008, by and among NeoMedia Technologies, Inc. and YA Global Investments, L.P.
|
8-K
|
10.1
|
10/1/2008
|
||||||
10.79
|
Second Secured Convertible Debenture, dated October 28, 2008, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.3
|
11/3/2008
|
||||||
10.80
|
Revised Exhibit A to Escrow Agreement, dated October 28, 2008
|
8-K
|
10.12
|
11/3/2008
|
||||||
10.81
|
Letter Agreement, dated March 27, 2009, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.13
|
4/13/2009
|
||||||
10.82
|
Amendment Agreement, dated April 6, 2009, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.14
|
4/13/2009
|
||||||
10.83
|
Third Secured Convertible Debenture (first closing), dated April 6, 2009, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.15
|
4/13/2009
|
||||||
10.84
|
Waiver, effective as of December 31, 2008, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.16
|
4/13/2009
|
||||||
10.85
|
Fourth Secured Convertible Debenture (second amended third closing), dated May 1, 2009, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.15
|
5/7/2009
|
Exhibit Number
|
Description
|
Filed
Herewith
|
Form
|
Exhibit
|
Filing Date
|
|||||
10.86
|
Agreement, dated June 5, 2009 (Additional Agreement), by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.16
|
6/5/2009
|
||||||
10.87
|
Fifth Convertible Debenture (Additional Agreement closing), dated June 5, 2009, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.17
|
6/5/2009
|
||||||
10.88
|
Agreement, dated July 15, 2009 (Second Additional Agreement), by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.18
|
7/21/2009
|
||||||
10.89
|
Sixth Convertible Debenture dated July 15, 2009, (Second Additional Debenture), issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.19
|
7/21/2009
|
||||||
10.90
|
Agreement, dated July 17, 2009, by and between the Company and Silver Bay Software, LLC.
|
8-K
|
10.20
|
7/21/2009
|
||||||
10.91
|
Agreement, dated July 17, 2009, by and between the Company and Mr. Greg Lindholm.
|
8-K
|
10.21
|
7/21/2009
|
||||||
10.92
|
Non-Exclusive License Agreement between the Company and Mobile Tag, Inc. dated July 28, 2009
|
8-K
|
10.1
|
7/30/2009
|
||||||
10.93
|
Agreement dated August 14, 2009 (Third Additional Agreement) by and between the Company and Y.A. Global Investments, L.P.
|
10-Q
|
10.124
|
8/14/2009
|
||||||
10.94
|
Seventh Convertible Debenture dated August 14, 2009 (Fifth Additional Debenture) issued by the Company to Y.A. Global Investments, L.P.
|
10-Q
|
10.125
|
8/14/2009
|
||||||
10.95
|
Non-exclusive License Agreement with exclusive right to sub-license provision between Company and Neustar, Inc. dated October 2, 2009.
|
8-K
|
10.1
|
10/6/2009
|
||||||
10.96
|
Non-Exclusive License Agreement to use the Licenced Platform between the Company and Brand Extension Mobile Solutions, S.A., a Madrid (Spain) corporation (“BEMS"), dated October 7, 2009.
|
8-K
|
10.1
|
10/13/2009
|
||||||
10.97
|
Settlement Agreement and non-exclusive license and a sublicense between the Company and Scanbuy, Inc., dated October 16, 2009.
|
8-K
|
10.1
|
10/20/2009
|
||||||
10.98
|
Investment Agreement between Company and YA Global dated January 5, 2010.
|
8-K
|
10.1
|
1/11/2010
|
||||||
10.99
|
Irrevocable Transfer Agent Instructions letter issued by Company to WorldWide Stock Transfer, LLC dated January 5, 2010.
|
8-K
|
10.2
|
1/11/2010
|
||||||
10.100
|
Monitoring Fee Escrow Agreement between Company and YA Global dated January 5, 2010.
|
8-K
|
10.3
|
1/11/2010
|
||||||
10.101
|
Investor Registration Rights Agreement between Company and YA Global dated January 5, 2010.
|
8-K
|
10.4
|
1/11/2010
|
||||||
10.102
|
Issuance of Warrants by Company to YA Global dated January 5, 2010.
|
8-K
|
10.5
|
1/11/2010
|
||||||
10.103
|
Amendment to the August 24, 2006 Secured Convertible Debenture No. CCP-1 between the Company and YA Global dated January 5, 2010.
|
8-K
|
10.6
|
1/11/2010
|
||||||
10.104
|
Amendment to the December 29, 2006 Secured Convertible Debenture No. CCP-2 between the Company and YA Global dated January 5, 2010.
|
8-K
|
10.7
|
1/11/2010
|
||||||
10.105
|
Amendment to the March 27, 2007 Secured Convertible Debenture No. NEOM-4-1 between the Company and YA Global dated January 5, 2010.
|
8-K
|
10.8
|
1/11/2010
|
Exhibit Number
|
Description
|
Filed
Herewith
|
Form
|
Exhibit
|
Filing Date
|
|||||
10.106
|
Amendment to the August 24, 2007 Secured Convertible Debenture No. NEOM-1-1 between the Company and YA Global dated January 5, 2010.
|
8-K
|
10.9
|
1/11/2010
|
||||||
10.107
|
Amendment to the April 11, 2008 Secured Convertible Debenture No. NEO-2008-1 between the Company and YA Global dated January 5, 2010.
|
8-K
|
10.10
|
1/11/2010
|
||||||
10.108
|
Amendment to the May 16, 2008 Secured Convertible Debenture No. NEO-2008-2 between the Company and YA Global dated January 5, 2010.
|
8-K
|
10.11
|
1/11/2010
|
||||||
10.109
|
Amendment to the May 29, 2008 Secured Convertible Debenture No. NEO-2008-3 between the Company and YA Global dated January 5, 2010.
|
8-K
|
10.12
|
1/11/2010
|
||||||
10.110
|
Amendment to the July 10, 2008 Secured Convertible Debenture No. NEO-2008-4 between the Company and YA Global dated January 5, 2010.
|
8-K
|
10.13
|
1/11/2010
|
||||||
10.111
|
Amendment to the July 29, 2008 Secured Convertible Debenture No. NEOM-9-1 between the Company and YA Global dated January 5, 2010.
|
8-K
|
10.14
|
1/11/2010
|
||||||
10.112
|
Amendment to the October 28, 2008 Secured Convertible Debenture No. NEOM-9-2 between the Company and YA Global dated January 5, 2010.
|
8-K
|
10.15
|
1/11/2010
|
||||||
10.113
|
Amendment to the May 1, 2009 Secured Convertible Debenture No. NEOM-9-4 between the Company and YA Global dated January 5, 2010.
|
8-K
|
10.16
|
1/11/2010
|
||||||
10.114
|
Amendment to the June 5, 2009 Secured Convertible Debenture No. NEOM-9-5 between the Company and YA Global dated January 5, 2010.
|
8-K
|
10.17
|
1/11/2010
|
||||||
10.115
|
Amendment to the July 15, 2009 Secured Convertible Debenture No. NEOM-9-6 between the Company and YA Global dated January 5, 2010.
|
8-K
|
10.18
|
1/11/2010
|
||||||
10.116
|
Amendment to the August 14, 2009 Secured Convertible Debenture No. NEOM-9-7 between the Company and YA Global dated January 5, 2010.
|
8-K
|
10.19
|
1/11/2010
|
||||||
10.117
|
Amendment to the July 29, 2008 Secured Convertible Debenture No. NEOM-9-1B between the Company and YA Global dated January 5, 2010.
|
8-K
|
10.20
|
1/11/2010
|
||||||
10.118
|
Amendment to the July 29, 2008 Secured Convertible Debenture No. NEOM-9-1C between the Company and YA Global dated January 5, 2010.
|
8-K
|
10.21
|
1/11/2010
|
||||||
10.119
|
Amendment to the July 29, 2008 Secured Convertible Debenture No. NEOM-9-1D between the Company and YA Global dated January 5, 2010.
|
8-K
|
10.22
|
1/11/2010
|
||||||
10.120
|
Amendment of employment agreement entered into on June 10, 2008 between the company and Iain A. McCready.
|
8-K
|
10.2
|
1/20/2010
|
||||||
10.121
|
Amended and restated licensing agreement dated October 2, 2009 with NeuStar, Inc.
|
8-K
|
10.1
|
1/28/2010
|
||||||
10.122
|
Agreement with Neu Star, Inc., dated February 12, 2010 (the Neu Star Mobile Codes Pilot Program Agreement).
|
8-K
|
10.1
|
2/16/2010
|
||||||
10.123
|
First amendment to the investment agreement between Company and YA Global dated January 5, 2010.
|
8-K
|
10.1
|
3/11/2010
|
||||||
10.124
|
Special meeting of shareholders held March 30, 2010.
|
8-K
|
10.1
|
4/2/2010
|
||||||
10.125
|
Notification of new trading symbol "NEOMD" beginning May 10, 2010.
|
8-K
|
5/11/2010
|
Exhibit Number
|
Description
|
Filed
Herewith
|
Form
|
Exhibit
|
Filing Date
|
|||||
10.126
|
Securities Purchase Agreement, dated May 27, 2010, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.1
|
6/3/2010
|
||||||
10.127
|
Secured Convertible Debenture, dated May 27, 2010, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.2
|
6/3/2010
|
||||||
10.128
|
Warrant No. 0510, dated May 27, 2010, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.3
|
6/3/2010
|
||||||
10.129
|
Global Warrant Amendment, dated May 27, 2010, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.4
|
6/3/2010
|
||||||
10.130
|
Ratification Agreement, dated May 27, 2010, by and among the Company, each of the Company’s subsidiaries made a party thereto and YA Global Investments, L.P.
|
8-K
|
10.7
|
6/3/2010
|
||||||
10.131
|
Irrevocable Transfer Agent Instructions, dated May 27, 2010, by and among the Company, the Investor, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC
|
8-K
|
10.1
|
6/3/2010
|
||||||
10.132
|
Agreement, dated August 13, 2010, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.1
|
8/19/2010
|
||||||
10.133
|
Secured Convertible Debenture, No. NEOM-10-2, dated August 13, 2010, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.2
|
8/19/2010
|
||||||
10.134
|
Warrant, No. NEOM-0810, dated August 13, 2010, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.3
|
8/19/2010
|
||||||
10.135
|
Agreement on the Pledge of Intellectual Property Rights as Collateral, dated August 13, 2010, by and between the Company’s wholly-owned subsidiary NeoMedia Europe AG, and YA Global Investments, L.P.
|
8-K
|
10.6
|
8/19/2010
|
||||||
10.136
|
Second Ratification Agreement, dated August 13, 2010, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.
|
8-K
|
10.7
|
8/19/2010
|
||||||
10.137
|
Irrevocable Transfer Agent Instructions, dated August 13, 2010, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC
|
8-K
|
10.8
|
8/19/2010
|
||||||
10.138
|
Security Transfer of Moveable Assets, dated August 13, 2010, by and between the Company’s wholly-owned subsidiary NeoMedia Europe AG, and YA Global Investments, L.P.
|
8-K
|
10.9
|
8/19/2010
|
||||||
10.139
|
Agreement, dated September 29, 2010, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.1
|
10/1/2010
|
||||||
10.140
|
Secured Convertible Debenture, No. NEOM-10-3, dated September 29, 2010, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.2
|
10/1/2010
|
||||||
10.141
|
Warrant, No. NEOM-0910, dated September 29, 2010, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.3
|
10/1/2010
|
||||||
10.142
|
Third Ratification Agreement, dated September 29, 2010, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.
|
8-K
|
10.6
|
10/1/2010
|
||||||
10.143
|
Irrevocable Transfer Agent Instructions, dated September 29, 2010, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC
|
8-K
|
10.7
|
10/1/2010
|
Exhibit Number
|
Description
|
Filed
Herewith
|
Form
|
Exhibit
|
Filing Date
|
|||||
10.144
|
Compromise Agreement dated October 19, 2010, executed by Iain A. McCready
|
8-K
|
10.1
|
10/20/2010
|
||||||
10.145
|
Resignation Letter dated October 19, 2010, executed by Iain A. McCready
|
8-K
|
10.2
|
10/20/2010
|
||||||
10.146
|
Agreement, dated October 28, 2010, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.1
|
11/3/2010
|
||||||
10.147
|
Secured Convertible Debenture, No. NEOM-10-4, dated October 28, 2010, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.2
|
11/3/2010
|
||||||
10.148
|
Warrant, No. NEOM-1010, dated October 28, 2010, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.3
|
11/3/2010
|
||||||
10.149
|
Fourth Ratification Agreement, dated October 28, 2010, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.
|
8-K
|
10.6
|
11/3/2010
|
||||||
10.150
|
Irrevocable Transfer Agent Instructions, dated October 28, 2010, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC
|
8-K
|
10.7
|
11/3/2010
|
||||||
10.151
|
Agreement, dated December 14, 2010, by and between the Company and Rothschild Trust Holdings, LLC; BP BL Section 3.4, LLC; and Leigh M. Rothschild
|
8-K
|
10.1
|
12/15/2010
|
||||||
10.152
|
Bylaws of Neomedia Technologies, Inc. adopted December 16, 2010
|
8-K
|
3.2
|
12/21/2010
|
||||||
10.153
|
Agreement, dated December 15, 2010, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.1
|
12/21/2010
|
||||||
10.154
|
Secured Convertible Debenture, No. NEOM-10-5, dated December 15, 2010, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.2
|
12/21/2010
|
||||||
10.155
|
Warrant, No. NEOM-1210, dated December 15, 2010, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.3
|
12/21/2010
|
||||||
10.156
|
Fifth Ratification Agreement, dated December 15, 2010, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.
|
8-K
|
10.6
|
12/21/2010
|
||||||
10.157
|
Irrevocable Transfer Agent Instructions, dated December 15, 2010, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC
|
8-K
|
10.7
|
12/21/2010
|
||||||
10.158
|
Agreement, dated December 21, 2010, by and between the Company and eBay Inc.
|
8-K
|
10.1
|
12/22/2010
|
||||||
10.159
|
Agreement, dated January 10, 2011, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.1
|
1/14/2011
|
||||||
10.160
|
Secured Convertible Debenture, No. NEOM-11-1, dated January 10, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.2
|
1/14/2011
|
||||||
10.161
|
Warrant, No. NEOM-0111, dated January 10, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.3
|
1/14/2011
|
||||||
10.162
|
Sixth Ratification Agreement, dated January 10, 2011, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.
|
8-K
|
10.6
|
1/14/2011
|
Exhibit Number
|
Description
|
Filed
Herewith
|
Form
|
Exhibit
|
Filing Date
|
|||||
10.163
|
Irrevocable Transfer Agent Instructions, dated January 10, 2011, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC
|
8-K
|
10.7
|
1/14/2011
|
||||||
10.164
|
Agreement, dated February 8, 2011, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.1
|
2/11/2011
|
||||||
10.165
|
Secured Convertible Debenture, No. NEOM-11-2, dated February 8, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.2
|
2/11/2011
|
||||||
10.166
|
Warrant, No. NEOM-0211, dated February 8, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.3
|
2/11/2011
|
||||||
10.167
|
Seventh Ratification Agreement, dated February 8, 2011, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.
|
8-K
|
10.6
|
2/11/2011
|
||||||
10.168
|
Irrevocable Transfer Agent Instructions, dated February 8, 2011, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC
|
8-K
|
10.7
|
2/11/2011
|
||||||
10.169
|
Confidential License Agreement, dated December 21, 2010, by and between the Company and eBay Inc.
|
8-K
|
10.1
|
2/22/2011
|
||||||
10.170
|
Appointment of Ms. Sarah Fay to serve as a member of the Board of Directors. Accepted notification of the retirement of James J. Keil as a member of the Board of Directors.
|
8-K
|
99.1
|
3/2/2011
|
||||||
10.171
|
Agreement, dated March 11, 2011, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.1
|
3/17/2011
|
||||||
10.172
|
Secured Convertible Debenture, No. NEOM-11-3, dated March 11, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.2
|
3/17/2011
|
||||||
10.173
|
Warrant, No. NEOM-0311, dated March 11, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.3
|
3/17/2011
|
||||||
10.174
|
Ratification Agreement, dated March 11, 2011, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.
|
8-K
|
10.6
|
3/17/2011
|
||||||
10.175
|
Irrevocable Transfer Agent Instructions, dated March 11, 2011, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC
|
8-K
|
10.7
|
3/17/2011
|
||||||
10.176
|
Agreement, dated April 13, 2011, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.1
|
4/13/2011
|
||||||
10.177
|
Secured Convertible Debenture, No. NEOM-11-4, dated April 13, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.2
|
4/13/2011
|
||||||
10.178
|
Warrant, No. NEOM-0411, dated April 13, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.3
|
4/13/2011
|
Exhibit Number
|
Description
|
Filed
Herewith
|
Form
|
Exhibit
|
Filing Date
|
|||||
10.179
|
Ratification Agreement, dated April 13, 2011, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.
|
8-K
|
10.6
|
4/13/2011
|
||||||
10.180
|
Irrevocable Transfer Agent Instructions, dated April 13, 2011, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC
|
8-K
|
10.7
|
4/13/2011
|
||||||
10.181
|
2011 Stock Incentive Plan
|
S-8
|
4.1
|
4/22/2011
|
||||||
10.182
|
Agreement, dated May 31, 2011, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.1
|
5/31/2011
|
||||||
10.183
|
Secured Convertible Debenture, No. NEOM-11-5, dated May 31, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.2
|
5/31/2011
|
||||||
10.184
|
Warrant, No. NEOM-0511, dated May 31, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.3
|
5/31/2011
|
||||||
10.185
|
Security Agreement, dated July 29, 2008, by and among the Company, each of the Company’s subsidiaries made a party thereto and YA Global Investments, L.P.
|
8-K
|
10.4
|
5/31/2011
|
||||||
10.186
|
Patent Security Agreement, dated July 29, 2008, by and among the Company, each of the Company’s subsidiaries made a party thereto and YA Global Investments, L.P.
|
8-K
|
10.5
|
5/31/2011
|
||||||
10.187
|
Ratification Agreement, dated May 31, 2011, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.
|
8-K
|
10.6
|
5/31/2011
|
||||||
10.188
|
Irrevocable Transfer Agent Instructions, dated May 31, 2011, by and among the Company, YA Global Investments, L.P., David Gonzalez, Esq. and WorldWide Stock Transfer, LLC
|
8-K
|
10.7
|
5/31/2011
|
||||||
10.189
|
Agreement, dated June 28, 2011, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.1
|
6/28/2011
|
||||||
10.190
|
Secured Convertible Debenture, No. NEOM-11-6, dated June 28, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.2
|
6/28/2011
|
||||||
10.191
|
Warrant, No. NEOM-0611, dated June 28, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.3
|
6/28/2011
|
||||||
10.192
|
Security Agreement, dated July 29, 2008, by and among the Company, each of the Company’s subsidiaries made a party thereto and YA Global Investments, L.P.
|
8-K
|
10.4
|
6/28/2011
|
||||||
10.193
|
Patent Security Agreement, dated July 29, 2008, by and among the Company, each of the Company’s subsidiaries made a party thereto and YA Global Investments, L.P.
|
8-K
|
10.5
|
6/28/2011
|
||||||
10.194
|
Eleventh Ratification Agreement, dated June 28, 2011, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.
|
8-K
|
10.6
|
6/28/2011
|
||||||
10.195
|
Irrevocable Transfer Agent Instructions, dated June 28, 2011, by and among the Company, YA Global Investments, L.P., David Gonzalez, Esq. and WorldWide Stock Transfer, LLC
|
8-K
|
10.7
|
6/28/2011
|
Exhibit Number
|
Description
|
Filed
Herewith
|
Form
|
Exhibit
|
Filing Date
|
|||||
10.196
|
Secured Convertible Debenture, No. NEOM-11-7, dated July 13, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.1
|
7/13/2011
|
||||||
10.197
|
Agreement, dated June 28, 2011, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.2
|
7/13/2011
|
||||||
10.198
|
Secured Convertible Debenture, No. NEOM-11-6, dated June 28, 2011, issued by the Company to YA Global Investments, L.P.
|
S-8
|
10.3
|
7/13/2011
|
||||||
10.199
|
Eleventh Ratification Agreement, dated June 28, 2011, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.
|
8-K
|
10.4
|
7/13/2011
|
||||||
10.200
|
Security Agreement, dated July 29, 2008, by and among the Company, each of the Company’s subsidiaries made a party thereto and YA Global Investments, L.P.
|
8-K
|
10.5
|
7/13/2011
|
||||||
10.201
|
Patent Security Agreement, dated July 29, 2008, by and among the Company, each of the Company’s subsidiaries made a party thereto and YA Global Investments, L.P.
|
8-K
|
10.6
|
7/13/2011
|
||||||
10.202
|
Irrevocable Transfer Agent Instructions, dated June 28, 2011, by and among the Company, YA Global Investments, L.P., David Gonzalez, Esq. and WorldWide Stock Transfer, LLC
|
8-K
|
10.7
|
7/13/2011
|
||||||
10.203
|
Resignation of Mr. Michael W. Zima, Chief Financial Officer and Corporate Secretary. Appointment of Mr. Robert W. Thomson as interim Chief Financial Officer and Corporate Secretary.
|
8-K
|
99.1
|
7/19/2011
|
||||||
10.204
|
Secured Convertible Debenture, No. NEOM-11-8, dated August 12, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.1
|
8/12/2011
|
||||||
10.205
|
Agreement, dated June 28, 2011, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.2
|
8/12/2011
|
||||||
10.206
|
Secured Convertible Debenture, No. NEOM-11-6, dated June 28, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.3
|
8/12/2011
|
||||||
10.207
|
Secured Convertible Debenture, No. NEOM-11-7, dated July 13, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.4
|
8/12/2011
|
||||||
10.208
|
Eleventh Ratification Agreement, dated June 28, 2011, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.
|
8-K
|
10.5
|
8/12/2011
|
||||||
10.209
|
Security Agreement, dated July 29, 2008, by and among the Company, each of the Company’s subsidiaries made a party thereto and YA Global Investments, L.P.
|
8-K
|
10.6
|
8/12/2011
|
||||||
10.210
|
Patent Security Agreement, dated July 29, 2008, by and among the Company, each of the Company’s subsidiaries made a party thereto and YA Global Investments, L.P.
|
8-K
|
10.7
|
8/12/2011
|
||||||
10.211
|
Irrevocable Transfer Agent Instructions, dated June 28, 2011, by and among the Company, YA Global Investments, L.P., David Gonzalez, Esq. and WorldWide Stock Transfer, LLC
|
8-K
|
10.8
|
8/12/2011
|
Exhibit Number
|
Description
|
Filed
Herewith
|
Form
|
Exhibit
|
Filing Date
|
|||||
10.212
|
Agreement, dated September 15, 2011, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.1
|
9/15/2011
|
||||||
10.213
|
Secured Convertible Debenture, No. NEOM-11-9, dated September 15, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.2
|
9/15/2011
|
||||||
10.214
|
Warrant, No. NEOM-0911, dated September 15, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.3
|
9/15/2011
|
||||||
10.215
|
Security Agreement, dated July 29, 2008, by and among the Company, each of the Company’s subsidiaries made a party thereto and YA Global Investments, L.P.
|
8-K
|
10.4
|
9/15/2011
|
||||||
10.216
|
Patent Security Agreement, dated July 29, 2008, by and among the Company, each of the Company’s subsidiaries made a party thereto and YA Global Investments, L.P.
|
8-K
|
10.5
|
9/15/2011
|
||||||
10.217
|
Ratification Agreement, dated September 15, 2011, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.
|
8-K
|
10.6
|
9/15/2011
|
||||||
10.218
|
Irrevocable Transfer Agent Instructions, dated September 15, 2011, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC
|
8-K
|
10.7
|
9/15/2011
|
||||||
10.219
|
Press Release Regarding Appointment of Mannetti to Board of Directors.
|
8-K
|
99.1
|
10/1/2011
|
||||||
10.220
|
Agreement, dated October 25, 2011, by and between the Company and YA Global Investments, L.P.
|
8-K
|
10.1
|
10/25/2011
|
||||||
10.221
|
Secured Convertible Debenture, No. NEOM-11-10, dated October 25, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.2
|
10/25/2011
|
||||||
10.222
|
Warrant, No. NEOM-1011, dated October 25, 2011, issued by the Company to YA Global Investments, L.P.
|
8-K
|
10.3
|
10/25/2011
|
||||||
10.223
|
Security Agreement, dated July 29, 2008, by and among the Company, each of the Company’s subsidiaries made a party thereto and YA Global Investments, L.P.
|
8-K
|
10.4
|
10/25/2011
|
||||||
10.224
|
Patent Security Agreement, dated July 29, 2008, by and among the Company, each of the Company’s subsidiaries made a party thereto and YA Global Investments, L.P.
|
8-K
|
10.5
|
10/25/2011
|
||||||
10.225
|
Thirteenth Ratification Agreement, dated October 25, 2011, by and among the Company, each of the Company’s subsidiaries made a party thereto, and YA Global Investments, L.P.
|
8-K
|
10.6
|
10/25/2011
|
Exhibit Number
|
Description
|
Filed
Herewith
|
Form
|
Exhibit
|
Filing Date
|
|||||
10.226
|
Irrevocable Transfer Agent Instructions, dated October 25, 2011, by and among the Company, the Buyer, David Gonzalez, Esq. and WorldWide Stock Transfer, LLC
|
8-K
|
10.7
|
10/25/2011
|
||||||
14
|
Code of Professional Ethics
|
10-K
|
14.1
|
4/3/2007
|
||||||
31.1
|
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
X
|
||||||||
31.2
|
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
X
|
||||||||
32.1
|
Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
X
|
||||||||
32.2
|
Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
X
|
NEOMEDIA TECHNOLOGIES, INC.
|
||
(Registrant)
|
||
Dated: November 14, 2011
|
/s/ Robert W. Thomson
|
|
Robert W. Thomson
|
||
Interim Chief Financial Officer & Principal Finance Officer and
Principal Accounting Officer
|
November 14, 2011
|
|
/s/ Laura A. Marriott
|
|
Laura A. Marriott
Acting Chief Executive Officer,
Principal Executive Officer
|
November 14, 2011
|
|
/s/ Robert W. Thomson
|
|
Robert W. Thomson
|
|
Interim Chief Financial Officer, Principal Finance Officer and Principal Accounting Officer
|
/s/ Laura A. Marriott
|
|
Laura A. Marriott
Acting Chief Executive Officer,
Principal Executive Officer
November 14, 2011
|
/s/ Robert W. Thomson
|
|
Robert W. Thomson
Interim Chief Financial Officer, Principal Finance Officer and Principal Accounting Officer
November 14, 2011
|
Document And Entity Information In Thousands | 9 Months Ended | |
---|---|---|
Sep. 30, 2011 | Nov. 09, 2011 | |
Entity Registrant Name | NEOMEDIA TECHNOLOGIES INC | |
Entity Central Index Key | 0001022701 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | neom | |
Entity Common Stock, Shares Outstanding | 437,378,114 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2011 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2011 |
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Contingencies | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] |
Note 6 – Contingencies
We are involved in various legal actions arising in the normal course of business, both as claimant and defendant. Although it is not possible to determine with certainty the outcome of these matters, it is the opinion of management that the eventual resolution of the following legal actions is unlikely to have a material adverse effect on our financial position or operating results.
William Klawonn v. Y.A. Global Investments, L.P. and NeoMedia Technologies, Inc. – On April 28, 2010, William Klawonn, a shareholder of NeoMedia, filed a derivative action, in the United States District Court for the District of New Jersey, against YA Global and us claiming trading activities that violated section 15 U.S.C. § 78p(b). On July 8, 2010, an order was granted in the case stipulating that the plaintiff had agreed that we have no liability in the action. The order also stipulated that we will be considered a nominal party to the action, and as such we remain subject to the discovery rights and obligations of the action. On December 6, 2010, an order was granted in the case to dismiss for the plaintiff’s failure to state a valid claim for relief, without prejudice. However the order also allowed the plaintiff 45 days to amend the complaint. On January 20, 2011, the plaintiff filed an amended complaint. On February 4, 2011, a further order was granted in the case again stipulating that the plaintiff had agreed that we have no liability in the action. The order also again stipulated that we will continue to be considered a nominal party to the action, and as such we remain subject to the discovery rights and obligations of the action. On March 24, 2011, YA Global filed a motion to dismiss the amended complaint and on May 9, 2011, plaintiff filed a memorandum of law in opposition to YA Global’s motion to dismiss the amended complaint. On June 8, 2011, YA Global filed a reply memorandum of law in further support of its motion to dismiss the amended complaint. The Court heard oral argument on the motion on August 4, 2011. On August 10, 2011, the Court issued an opinion and order granting the motion to dismiss as to some claims and denying it as to others. The parties are engaged in pretrial discovery, which is expected to continue at least through January 2012. We are not able to predict with any certainty the outcome of this litigation, including the merits or value of the amended complaint.
The Webb Law Firm – On August 25, 2010, we were notified by The Webb Law Firm that they had filed a request for ex parte reexamination with the United States Patent and Trademark Office (USPTO), of our ‘048 patent. The request for reexamination asserted that certain claims in our patent are invalid over prior art references not previously before the USPTO. On November 23, 2010, the USPTO issued an office action agreeing to the ex parte reexamination. On November 30, 2010, the USPTO issued a further communication indicating the extent to which the reexamination will evaluate the patent and which claims of the patent would be addressed. On January 29, 2011, we filed an amendment of the ‘048 patent with the USPTO in response to the reexamination. The amendment proposed several minor changes and clarifications to the ‘048 patent to address the issues enumerated in the reexamination. On May 23, 2011, the USPTO issued a communication which included a Notice of Intention to Issue Ex Parte Reexamination Certificate, which accepted our proposed amendment to the ‘048 patent. In so doing, the USPTO has affirmed the validity of the patent. On September 6, 2011, the USPTO issued the Reexamination Certificate, and this matter is now closed.
Baniak Pine & Gannon, LLC, Valauskas & Pine LLC, and McDonnell Boehnen Hulbert & Berghoff LLP - On February 18, 2011, Baniak Pine & Gannon, LLC, Valauskas & Pine LLC, and McDonnell Boehnen Hulbert & Berghoff LLP filed a complaint for injunctive and other relief against us and a member of our Board of Directors, Mr. George G. O'Leary in The United States District Court For The Northern District Of Illinois, Eastern Division. The complaint seeks to recover certain legal fees related to the plaintiffs’ services to us and other damages for tortious interference by Mr. O'Leary. On April 21, 2011, we filed a motion to dismiss Mr. O'Leary from the lawsuit and on April 25, 2011, we filed an answer to the complaint. Our bylaws provide for the indemnification of our Directors against complaints such as this and we maintain directors' and officers' liability insurance. On July 6, 2011, the District Court dismissed the claims against Mr. O'Leary with prejudice. On October 18, 2011, the parties settled the matter, and will soon file a stipulation to dismiss the matter with prejudice. The District Court will retain jurisdiction to enforce the settlement.
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Text Block] | Note 2 - Summary of Significant Accounting Policies
The accompanying unaudited financial statements have been prepared in accordance with US GAAP for interim financial information and Rule 8.03 of Regulation S-X. They do not include all of the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation have been included. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. For further information, refer to our financial statements as of December 31, 2010 and 2009, and for the years then ended, including notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.
Basis of Presentation – The consolidated financial statements include the accounts of NeoMedia Technologies, Inc. and our wholly-owned subsidiaries. We operate as one reportable segment. All significant intercompany accounts and transactions have been eliminated.
Use of Estimates – The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Changes in facts and circumstances may result in revised estimates, which are recorded in the period in which they become known.
Stock-Based Compensation - FASB ASC 718, Stock Compensation, requires that all stock-based compensation be recognized as an expense in the financial statements and that such cost be measured at the grant date fair value of the award. We account for modifications of the terms of existing option grants as exchanges of the existing equity instruments for new instruments. The fair value of the modified option at the grant date is compared with the value at that date of the original option immediately before its terms are modified. Any excess fair value of the modified option over the original option is recognized as additional compensation expense.
Basic and Diluted Net Income (Loss) Per Share – Basic net income (loss) per share is computed by dividing net income (loss) attributable to common shareholders by the weighted average number of shares of common stock outstanding during the period. During the three and nine months ended September 30, 2011, we reported net income per share and included dilutive instruments in the fully diluted net income per share calculation. During the three months ended September 30, 2010, we reported a net loss per share, and as such, basic and diluted loss per share were equivalent. During the nine months ended September 30, 2010, we reported net income per share and included dilutive instruments in the fully diluted net income per share calculation.
The above table includes only dilutive instruments and their effects on earnings per common share.
The following outstanding stock options, warrants, convertible debt and convertible preferred securities for the three and nine months ended September 30, 2011 and 2010, are anti-dilutive and therefore have been excluded from diluted net income (loss) per share:
Inventories – Inventories are stated at the lower of cost or market and are comprised of barcode-reading equipment at our NeoMedia Europe location. Cost is determined using the first-in, first-out method.
Recent Accounting Pronouncements - The following Accounting Standards Codification Updates have recently been issued:
To the extent appropriate, the guidance in the above Accounting Standards Codification Updates is already reflected in our consolidated financial statements and management does not anticipate that these accounting pronouncements will have any material future effect on our consolidated financial statements. |
Transactions with Related Parties | 9 Months Ended |
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Sep. 30, 2011 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 8 – Transactions with Related Parties
Ms. Laura A. Marriott serves as our Chairperson of the Board of Directors and Acting Chief Executive Officer. Ms. Marriot is also a member of the Compensation Committee and Stock Option Committee of the Board of Directors. In addition to her compensation as a non-executive member of our Board, Ms. Marriot is compensated as our acting Chief Executive Officer under a consulting agreement for which she received $90,000 and $252,000 in compensation from us during the three and nine months ended September 30, 2011, respectively.
Mr. George G. O’Leary serves as a member of the Board of Directors and as acting Chief Operating Officer. Mr. O’Leary is also the Chairman of our Audit Committee, Compensation Committee and a member of our Stock Option Committee. In addition to his compensation as a member of our Board, Mr. O’Leary is compensated as our acting Chief Operating Officer under a consulting agreement for which he received $24,750 and $60,750 in compensation from us during the three and nine months ended September 30, 2011, respectively. |
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Geographic Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entity-Wide Information About Geographic Areas Disclosure [Text Block] | Note 7 – Geographic Reporting
We are structured and evaluated by our Board of Directors and management as one business unit.
Consolidated net revenues and net income for the three and nine months ended September 30, 2011 and 2010, and the identifiable assets as of September 30, 2011, and December 31, 2010, by geographic area were as follows:
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Financing | 9 Months Ended |
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Sep. 30, 2011 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 3 – Financing
At September 30, 2011, our financing transactions with YA Global, an accredited investor, included shares of our Series C preferred stock issued in February 2006, Series D preferred stock issued in January 2010, a series of twenty eight secured convertible debentures issued between August 2006 and September 2011 and various warrants to purchase shares of our common stock. All of our assets are pledged to secure our obligations under these securities. At various times, YA Global has assigned or distributed portions of its holdings of these securities to other holders, including persons who are officers of YA Global and its related entities, as well as to other holders who are investors in YA Global’s funds. As of September 30, 2011, approximately $1,862,500 has been assigned or distributed by YA Global to other holders, which represents approximately 5% of YA Global’s holdings. |
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Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 4 – Stock-Based Compensation
A total of 1,022,605 stock options were issued to employees during the nine months ended September 30, 2011, exercisable at strike prices ranging from $0.017 to $0.14 per share.
Total stock-based compensation expense recorded in the statement of operations was $6,000 and $40,200 for the three months ended September 30, 2011 and 2010 and $58,000 and $137,700 for the nine months ended September 30, 2011 and 2010, respectively.
We used the following assumptions to value the stock options granted during the nine months ended September 30, 2011 and 2010:
A summary of the transactions and status of our granted, vested and exercisable options during the nine months ended September 30, 2011 with respect to our stock option plans follows:
A summary of the status of our non-vested options as of September 30, 2011 and changes during the nine months ended is presented below:
The following table summarizes information about our stock options outstanding at September 30, 2011:
There were no stock options exercised during the nine months ended September 30, 2011.
Subsequent Event
On October 3, 2011, the Board approved and issued option agreements with three members of our Board for a total of 450,000 shares of our common stock from our 2011 Stock Incentive Plan at an exercise price of $0.014 per share.
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Accrued Liabilities Disclosure [Text Block] | Note 5 – Accrued Liabilities
Accrued liabilities consist of the following as of September 30, 2011 and December 31, 2010:
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General | 9 Months Ended |
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Sep. 30, 2011 | |
General [Abstract] | |
General and Going Concern [Text Block] | Note 1 - General
Business – NeoMedia Technologies, Inc., a Delaware corporation (“NeoMedia”, and also referred to herein as “us”, “we” and “our”), is an innovator and a global market leader in 2D mobile barcode technology and solutions that enable the mobile barcode ecosystem world-wide. NeoMedia strives to harness the power of the mobile phone with state-of-the art mobile barcode technology. With this technology, mobile phones with cameras become barcode scanners and this enables a range of applications including consumer oriented marketing and advertising, mobile ticketing and couponing, and business-to-business commercial track and trace solutions.
As a technology pioneer in the global mobile barcode industry, our suite of products, services and IP portfolio allows us to offer a comprehensive end-to-end mobile barcode solution. We offer barcode management and infrastructure technology solutions, barcode reader solutions and IP licensing, as well as mobile couponing and ticketing products and services. NeoMedia has been a pioneer in the mobile barcode field since the mid 1990s, and during that time has spearheaded the development of a robust IP portfolio that encompasses many preferred mobile barcode implementations. We have an IP portfolio currently consisting of over sixty issued and pending patents.
Going Concern – We have historically incurred net losses from operations and we expect that we will continue to have negative cash flows as we implement our business plan. There can be no assurance that our continuing efforts to execute our business plan will be successful and that we will be able to continue as a going concern. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which contemplates our continuation as a going concern. Net income for the nine months ended September 30, 2011 and 2010, respectively, was $12.4 million and $41.5 million, of which $18.9 million and $47.6 million, respectively, were net gains related to our financing instruments. Net cash used by operations during the nine months ended September 30, 2011 and 2010 was $3.5 million and $4.7 million, respectively. At September 30, 2011, we have an accumulated deficit of $232.0 million. We also have a working capital deficit of $65.0 million, of which $47.2 million is related to our financing instruments, including $18.3 million related to the fair value of warrants and those debentures that are recorded as hybrid financial instruments, and $28.9 million related to the amortized cost carrying value of certain of our debentures and the fair value of the associated derivative liabilities. We also have a continuing purchase price guarantee obligation of $4.5 million associated with an acquisition of a business in 2006, which we subsequently sold in 2007.
The items discussed above raise substantial doubt about our ability to continue as a going concern.
We currently do not have sufficient cash or commitments for financing, to sustain our operations for the next twelve months. We will require additional financing in order to execute our operating plan and continue as a going concern. Our management’s plan is to attempt to secure adequate funding to bridge the commercialization of our patent licensing and barcode ecosystem businesses. We cannot predict whether this additional financing will be in the form of equity, debt, or another form and we may not be able to obtain the necessary additional capital on a timely basis, on acceptable terms, or at all. In the event that these financing sources do not materialize, or that we are unsuccessful in increasing our revenues and profits, we may be unable to implement our current plans for expansion, repay our debt obligations as they become due or respond to competitive pressures, any of which circumstances would have a material adverse effect on our business, prospects, financial condition and results of operations. Should our lender, YA Global Investments, L.P. (“YA Global”) choose not to provide us with continued financing, or if we do not find alternative sources of financing to fund our operations or if we are unable to generate significant product revenues, we only have sufficient funds to sustain our current operations through approximately December 8, 2011.
The financial statements do not include any adjustments relating to the recoverability and reclassification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.
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