SC 13D 1 lipidmdb13d.txt MDB SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D (Rule 13d-101) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13D-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13D-2(a) (Amendment No. )* Lipid Sciences, Inc. -------------------------------------------------------------------------------- (Name of Issuer) Common Stock, no par value -------------------------------------------------------------------------------- (Title of Class of Securities) 53630P 10 1 ----------------------------------------------------- (CUSIP Number) Christopher A. Marlett with a copy to: MDB Capital Group, LLC Andrew D. Hudders, Esq. 401 Wilshire Boulevard, Suite 1020 Graubard Miller Santa Monica, California 90401 600 Third Avenue - 32nd Floor (310) 526-5005 New York, New York 10016 (212) 816-8614 -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) January 14, 2004 ------------------------------------------------------ (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(b)(3) or (4), check the following box |_|. Note: Six copies of this statement, including all exhibits, should be filed with the Commission. See Rule 13d-1(a) for other parties to whom copies are to be sent. *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). SCHEDULE 13D ------------------------------- ------------------------------------ CUSIP No. 53630P 10 1 Page 2 of 6 Pages ------------------------------- ------------------------------------ -------------------------------------------------------------------------------- NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 1 MDB Capital Group, LLC I.D. No. -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_| (b) |_| -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)|_| -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION California -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF SHARES 1,300,603 BENEFICIALLY -------------------------------------------------------- OWNED BY EACH REPORTING 8 SHARES VOTING POWER PERSON WITH -0- BENEFICIALLY -------------------------------------------------------- OWNED BY EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 1,300,603 WITH -------------------------------------------------------- 10 SHARED DISPOSITIVE POWER -0- -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,300,603 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*|_| -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.4% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* BD -------------------------------------------------------------------------------- SCHEDULE 13D ------------------------------- ------------------------------------ CUSIP No. 53630P 10 1 Page 3 of 6 Pages ------------------------------- ------------------------------------ -------------------------------------------------------------------------------- NAME OF REPORTING PERSON 1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 1 Christopher A. Marlett I.D. No. -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_| (b) |_| -------------------------------------------------------------------------------- 3 SEC USE ONLY -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e)|_| -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States -------------------------------------------------------------------------------- 7 SOLE VOTING POWER NUMBER OF SHARES 1,719,082 BENEFICIALLY -------------------------------------------------------- OWNED BY EACH REPORTING 8 SHARES VOTING POWER PERSON WITH -0- BENEFICIALLY -------------------------------------------------------- OWNED BY EACH 9 SOLE DISPOSITIVE POWER REPORTING PERSON 1,719,082 WITH -------------------------------------------------------- 10 SHARED DISPOSITIVE POWER -0- -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,719,082 -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*|_| -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 7.1% -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* IN -------------------------------------------------------------------------------- SCHEDULE 13D ------------------------------- ------------------------------------ CUSIP No. 53630P 10 1 Page 4 of 6 Pages ------------------------------- ------------------------------------ Item 1. Name of Issuer: This Schedule 13D (the "Schedule") relates to the common stock, no par value, ("Common Stock") of Lipid Sciences, Inc., an Arizona corporation (the "Issuer"). The principal executive offices of the Issuer are located at 7068 Koll Center Parkway, Suite 401, Pleasanton, California 94566. Item 2. Identity and Background. This Schedule is filed jointly on behalf of MDB Capital Group, LLC, a California limited liability company ("MDB"), and Christopher A. Marlett. Mr. Marlett is deemed to have beneficial ownership of any shares beneficially owned by MDB as a result of being a control person of MDB. Mr. Marlett holds certain of the shares being reported upon in a living trust over which he is the controlling person. MDB and Mr. Marlett are sometimes collectively referred to herein as "Reporting Persons." MDB is a licensed broker and dealer. MDB is managed by Mr. Marlett, Dyana Williams Marlett and Anthony DiGiandomenico. The address of the principal business and principal office of the Reporting Persons and Ms. Marlett and Mr. DiGiandomenico is 401 Wilshire Boulevard, Suite 1020, Santa Monica, California 90401. The principal occupation of each of Ms. Marlett and Mr. DiGiandomenico is being a manager of MDB. Mr. Marlett is a citizen of the United States. MDB is a California limited liability company. During the last five years, none of the Reporting Persons has been: (a) convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors); or (b) a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. Item 3. Source and Amount of Funds and Other Consideration. On January 14, 2004, MDB acquired 1,300,603 shares of Common Stock and Mr. Marlett, through his living trust, acquired 418,479 shares of Common Stock as a result of the termination of a trust of which each of them was a beneficiary. The trust was established for certain business and regulatory reasons by each of MDB, Mr. Marlett and his living trust, the reasons for which no longer are applicable. Item 4. Purpose of Transaction. The purpose of the transaction being reported upon was the termination of a trust. Item 5. Interest in Securities of the Issuer. As a result of the transfer by the trust to MDB and Mr. Marlett, MDB owns 1,300,603 shares of Common Stock representing 5.4% of the outstanding Common Stock, and Mr. Marlett, through his living trust, owns 418,478 shares of Common Stock representing 1.7% of the outstanding Common Stock. SCHEDULE 13D ------------------------------- ------------------------------------ CUSIP No. 53630P 10 1 Page 5 of 6 Pages ------------------------------- ------------------------------------ Mr. Marlett as the controlling member of MDB is deemed to have voting and dispositive authority over all the shares held by MDB. Therefore, he has beneficial ownership of 1,719,082 shares of Common Stock representing 7.1% of the outstanding Common Stock. From time to time, MDB may have shares held in its trading account over which MDB has voting and dispositive power and over which Mr. Marlett may be deemed to have voting and dispositive power. Except as described herein, the Reporting Persons have effected any transactions in the Issuer's common stock during the past 60 days. Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer. Except for the Joint Filing Agreement, neither MDB or Mr. Marlett have any contracts, arrangements, understandings or relationships with respect to the Common Stock. Item 7. Material to be filed as Exhibits. Exhibit 1 Joint Filing Agreement, dated December 10, 2001, between MDB Capital Group, LLC and Christopher A. Marlett (previously filed in Schedule 13D filed in respect of the event dated November 29, 2001, and incorporated herein by reference). SCHEDULE 13D ------------------------------- ------------------------------------ CUSIP No. 53630P 10 1 Page 6 of 6 Pages ------------------------------- ------------------------------------ SIGNATURES After reasonable inquiry and to the best of my knowledge and belief, we certify that the information set forth in this statement is true, complete and correct. Dated: January 14, 2004 MDB Capital Group, LLC By: /s/ Christopher A. Marlett ---------------------------------- Name: Christopher A. Marlett -------------------------------- Its: Member ------------------------------- /s/ Christopher A. Marlett ------------------------------- Christopher A. Marlett