UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 6)(1)
NETWORK-1 SECURITY SOLUTIONS, INC.
--------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, $0.01 Par Value Per Share
--------------------------------------------------------------------------------
(Title of Class of Securities)
64121N109
-------------------
(CUSIP Number)
Wheatley Partners II, L.P.
80 Cuttermill Road
Great Neck, NY 11021
Telephone: (516) 773-1024
With a copy to:
Michael R. Reiner, Esq.
Breslow & Walker, LLP
767 Third Avenue
New York, New York 10017
Telephone: (212) 832-1930
--------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
December 17, 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 that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss.240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box: [ ]
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss.13d-7(b) for other
parties to whom copies are to be sent.
(Continued on following page(s))
(1)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 the
disclosures provided in a prior cover page.
The information required in 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).
Page 1 of 23
CUSIP No. 64121N109 13D
--------- ------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Wheatley Partners II, L.P.
--------- ------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
--------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, 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
New York
----------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
1,430,507 shares 9.5%
Number of ----- ------------------------------------------------------------------------------------
Shares
Beneficially 8 SHARED VOTING POWER
Owned By 0 shares 0%
Each ----- ------------------------------------------------------------------------------------
Reporting
Person 9 SOLE DISPOSITIVE POWER
With 1,430,507 shares 9.5%
----- ------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares 0%
--------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,430,507 shares
--------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
--------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.5%
--------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
--------- ------------------------------------------------------------------------------------------------------------------
Page 2 of 23
CUSIP No. 64121N109 13D
--------- ------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Irwin Lieber
--------- ------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
--------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF, 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
606,647 shares 4.0%
Number of ----- ------------------------------------------------------------------------------------
Shares
Beneficially 8 SHARED VOTING POWER
Owned By 1,666,355 shares 11.1%
Each ----- ------------------------------------------------------------------------------------
Reporting
Person 9 SOLE DISPOSITIVE POWER
With 606,647 shares 4.0%
----- ------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,666,355 shares 11.1%
--------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,273,002 shares
--------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
--------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.1%
--------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
--------- ------------------------------------------------------------------------------------------------------------------
Page 3 of 23
CUSIP No. 64121N109 13D
--------- ------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Barry Rubenstein
--------- ------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
--------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF, 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
247,176 shares 1.6%
Number of ----- ------------------------------------------------------------------------------------
Shares
Beneficially 8 SHARED VOTING POWER
Owned By 3,720,739 shares 24.8%
Each ----- ------------------------------------------------------------------------------------
Reporting
Person 9 SOLE DISPOSITIVE POWER
With 247,176 shares 1.6%
----- ------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
3,720,739 shares 24.8%
--------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,967,915 shares
--------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
--------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
26.3%
--------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
--------- ------------------------------------------------------------------------------------------------------------------
Page 4 of 23
CUSIP No. 64121N109 13D
--------- ------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Barry Fingerhut
--------- ------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
--------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF, 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
517,243 shares 3.4%
Number of ----- ------------------------------------------------------------------------------------
Shares
Beneficially 8 SHARED VOTING POWER
Owned By 1,666,355 shares 11.1%
Each ----- ------------------------------------------------------------------------------------
Reporting
Person 9 SOLE DISPOSITIVE POWER
With 517,243 shares 3.4%
----- ------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,666,355 shares 11.1%
--------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,183,598 shares
--------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
--------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.5%
--------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
--------- ------------------------------------------------------------------------------------------------------------------
Page 5 of 23
CUSIP No. 64121N109 13D
--------- ------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Seth Lieber
--------- ------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
--------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF, 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
34,136 shares 0.2%
Number of ----- ------------------------------------------------------------------------------------
Shares
Beneficially 8 SHARED VOTING POWER
Owned By 1,773,164 shares 11.8%
Each ----- ------------------------------------------------------------------------------------
Reporting
Person 9 SOLE DISPOSITIVE POWER
With 34,136 shares 0.2%
----- ------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,773,164 shares 11.8%
--------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,807,300 shares
--------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
--------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.0%
--------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
--------- ------------------------------------------------------------------------------------------------------------------
Page 6 of 23
CUSIP No. 64121N109 13D
--------- ------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Jonathan Lieber
--------- ------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
--------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF, 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
32,584 shares 0.2%
Number of ----- ------------------------------------------------------------------------------------
Shares
Beneficially 8 SHARED VOTING POWER
Owned By 1,773,164 shares 11.8%
Each ----- ------------------------------------------------------------------------------------
Reporting
Person 9 SOLE DISPOSITIVE POWER
With 32,584 shares 0.2%
----- ------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,773,164 shares 11.8%
--------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,805,748 shares
--------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
--------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.0%
--------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
--------- ------------------------------------------------------------------------------------------------------------------
Page 7 of 23
CUSIP No. 64121N109 13D
--------- ------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Woodland Venture Fund
--------- ------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
--------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, 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
New York
----------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
829,226 shares 5.5%
Number of ----- ------------------------------------------------------------------------------------
Shares
Beneficially 8 SHARED VOTING POWER
Owned By 0 shares 0%
Each ----- ------------------------------------------------------------------------------------
Reporting
Person 9 SOLE DISPOSITIVE POWER
With 829,226 shares 5.5%
----- ------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares 0%
--------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
829,226 shares
--------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
--------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.5%
--------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
--------- ------------------------------------------------------------------------------------------------------------------
Page 8 of 23
CUSIP No. 64121N109 13D
--------- ------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Seneca Ventures
--------- ------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
--------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, 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
New York
----------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
619,983 shares 4.1%
Number of ----- ------------------------------------------------------------------------------------
Shares
Beneficially 8 SHARED VOTING POWER
Owned By 0 shares 0%
Each ----- ------------------------------------------------------------------------------------
Reporting
Person 9 SOLE DISPOSITIVE POWER
With 619,983 shares 4.1%
----- ------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares 0%
--------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
619,983 shares
--------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
--------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.1%
--------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
--------- ------------------------------------------------------------------------------------------------------------------
Page 9 of 23
CUSIP No. 64121N109 13D
--------- ------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Marilyn Rubenstein
--------- ------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
--------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
PF, 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
1,049 shares 0.01%
Number of ----- ------------------------------------------------------------------------------------
Shares
Beneficially 8 SHARED VOTING POWER
Owned By 2,053,335 shares 13.7%
Each ----- ------------------------------------------------------------------------------------
Reporting
Person 9 SOLE DISPOSITIVE POWER
With 1,049 shares 0.01%
----- ------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,053,335 shares 13.7%
--------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,054,384 shares
--------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
--------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13.7%
--------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
--------- ------------------------------------------------------------------------------------------------------------------
Page 10 of 23
CUSIP No. 64121N109 13D
--------- ------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Woodland Services Corp.
--------- ------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(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
New York
----------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
0 shares 0%
Number of ----- ------------------------------------------------------------------------------------
Shares
Beneficially 8 SHARED VOTING POWER
Owned By 1,449,209 shares 9.7%
Each ----- ------------------------------------------------------------------------------------
Reporting
Person 9 SOLE DISPOSITIVE POWER
With 0 shares 0%
----- ------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,449,209 shares 9.7%
--------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,449,209 shares
--------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
--------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.7%
--------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
--------- ------------------------------------------------------------------------------------------------------------------
Page 11 of 23
CUSIP No. 64121N109 13D
--------- ------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Woodland Partners
--------- ------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
--------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, 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
New York
----------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
309,316 shares 2.1%
Number of ----- ------------------------------------------------------------------------------------
Shares
Beneficially 8 SHARED VOTING POWER
Owned By 0 shares 0%
Each ----- ------------------------------------------------------------------------------------
Reporting
Person 9 SOLE DISPOSITIVE POWER
With 309,316 shares 2.1%
----- ------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares 0%
--------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
309,316 shares
--------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
--------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.1%
--------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
--------- ------------------------------------------------------------------------------------------------------------------
Page 12 of 23
CUSIP No. 64121N109 13D
--------- ------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Brookwood Partners, L.P.
--------- ------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
--------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, OO
--------- ------------------------------------------------------------------------------------------------------------------
5 CHECK B OX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) [ ]
--------- ------------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
----------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
294,810 shares 2.0%
Number of ----- ------------------------------------------------------------------------------------
Shares
Beneficially 8 SHARED VOTING POWER
Owned By 0 shares 0%
Each ----- ------------------------------------------------------------------------------------
Reporting
Person 9 SOLE DISPOSITIVE POWER
With 294,810 shares 2.0%
----- ------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares 0%
--------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
294,810 shares
--------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
--------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.0%
--------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
--------- ------------------------------------------------------------------------------------------------------------------
Page 13 of 23
CUSIP No. 64121N109 13D
--------- ------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Applegreen Partners
--------- ------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
--------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, 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
New York
----------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
106,809 shares 0.7%
Number of ----- ------------------------------------------------------------------------------------
Shares
Beneficially 8 SHARED VOTING POWER
Owned By 0 shares 0%
Each ----- ------------------------------------------------------------------------------------
Reporting
Person 9 SOLE DISPOSITIVE POWER
With 106,809 shares 0.7%
----- ------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares 0%
--------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
106,809 shares
--------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
--------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.7%
--------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
--------- ------------------------------------------------------------------------------------------------------------------
Page 14 of 23
CUSIP No. 64121N109 13D
--------- ------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Wheatley Partners, L.P.
--------- ------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
--------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, 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
Delaware
----------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
216,980 shares 1.4%
Number of ----- ------------------------------------------------------------------------------------
Shares
Beneficially 8 SHARED VOTING POWER
Owned By 18,868 shares 0.1%
Each ----- ------------------------------------------------------------------------------------
Reporting
Person 9 SOLE DISPOSITIVE POWER
With 216,980 shares 1.4%
----- ------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
18,868 shares 0.1%
--------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
235,848 shares
--------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
--------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.5%
--------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
--------- ------------------------------------------------------------------------------------------------------------------
Page 15 of 23
CUSIP No. 64121N109 13D
--------- ------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Wheatley Foreign Partners, L.P.
--------- ------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [ ]
(b) [ ]
--------- ------------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
--------- ------------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, 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
Delaware
----------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
18,868 shares 0.1%
Number of ----- ------------------------------------------------------------------------------------
Shares
Beneficially 8 SHARED VOTING POWER
Owned By 216,980 shares 1.4%
Each ----- ------------------------------------------------------------------------------------
Reporting
Person 9 SOLE DISPOSITIVE POWER
With 18,868 shares 0.1%
----- ------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
216,980 shares 1.4%
--------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
235,848 shares
--------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
--------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.5%
--------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
--------- ------------------------------------------------------------------------------------------------------------------
Page 16 of 23
CUSIP No. 64121N109 13D
--------- ------------------------------------------------------------------------------------------------------------------
1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Wheatley Partners, LLC
--------- ------------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(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
Delaware
----------------------------------------------------------------------------------------------------------------------------
7 SOLE VOTING POWER
0 shares 0%
Number of ----- ------------------------------------------------------------------------------------
Shares
Beneficially 8 SHARED VOTING POWER
Owned By 235,848 shares 1.5%
Each ----- ------------------------------------------------------------------------------------
Reporting
Person 9 SOLE DISPOSITIVE POWER
With 0 shares 0%
----- ------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
235,848 shares 1.5%
--------- ------------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
235,848 shares
--------- ------------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
--------- ------------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.5%
--------- ------------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
OO
--------- ------------------------------------------------------------------------------------------------------------------
Page 17 of 23
This statement, dated December 17, 2004, constitutes Amendment No. 6 to
the Schedule 13D, dated November 12, 1998, regarding the reporting persons'
ownership of certain securities of Network-1 Security Solutions, Inc. All
capitalized terms used herein and otherwise undefined shall have the meanings
ascribed in the Schedule.
ITEM 5. Interests in Securities of the Issuer.
Item 5 is hereby amended and restated as follows:
(a) The following list sets forth the aggregate number and
percentage (based on 15,012,576 shares of Common Stock outstanding as reported
in the Issuer's Form 10-QSB for the quarter ended September 30, 2004), of
outstanding shares of Common Stock owned beneficially by each reporting person
named in Item 2, as of December 17, 2004:
Percentage of Shares of
Common Stock
Name Shares of Common Stock Beneficially Owned(2) Beneficially Owned
---- -------------------------------------------- ------------------
Wheatley Partners II, L.P. 1,430,507(3) 9.5%
Barry Rubenstein 3,967,915(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) 26.3%
Irwin Lieber 2,273,002(3)(4)(11)(12)(13) 15.1%
Barry Fingerhut 2,183,598(3)(4)(11)(12)(14) 14.5%
Seth Lieber 1,807,300(3)(4)(11)(12)(15)(16) 12.0%
Jonathan Lieber 1,805,748(3)(4)(11)(12)(16)(17) 12.0%
Woodland Venture Fund 829,226(6) 5.5%
Seneca Ventures 619,983(7) 4.1%
Marilyn Rubenstein 2,054,384(4)(6)(7)(8)(9)(10) 13.7%
Woodland Services Corp. 1,449,209(4)(6)(7) 9.7%
Woodland Partners 309,316(8) 2.1%
Brookwood Partners, L.P. 294,810(10) 2.0%
Applegreen Partners 106,809(16) 0.7%
Wheatley Partners, L.P. 235,848(4)(11)(12) 1.5%
Wheatley Foreign Partners, L.P. 235,848(4)(11)(12) 1.5%
Wheatley Partners, LLC 235,848(4)(11)(12) 1.5%
Page 18 of 23
---------------
(2) Includes shares of Common Stock issuable upon the exercise of the
Advisory Option, the 1996 Advisory Option, the 1998 Directors Option,
the June 1999 Directors Option, the October 1999 Directors Option, and
the December 1999 Directors Option.
(3) Includes 1,430,507 shares of Common Stock owned by Wheatley Partners
II, L.P.
(4) The reporting person disclaims beneficial ownership of these
securities, except to the extent of his/her/its equity interest
therein.
(5) Includes 150,012 shares of Common Stock owned individually by Barry
Rubenstein, 31,040 shares of Common Stock issuable upon the exercise of
the Advisory Option, 18,624 shares of Common Stock issuable upon the
exercise of the 1996 Advisory Option, 20,000 shares of Common Stock
issuable upon the exercise of the 1998 Directors Option, 10,000 shares
of Common Stock issuable upon the exercise of the June 1999 Directors
Option, 7,500 shares of Common Stock issuable upon the exercise of the
October 1999 Directors Option, and 10,000 shares of Common Stock
issuable upon the exercise of the December 1999 Directors Option.
(6) Includes 829,226 shares of Common Stock owned by Woodland Venture.
(7) Includes 619,983 shares of Common Stock owned by Seneca.
(8) Includes 309,316 shares of Common Stock owned by Woodland Partners.
(9) Includes 1,049 shares of Common Stock owned by Marilyn Rubenstein.
(10) Includes 294,810 shares of Common Stock owned by Brookwood.
(11) Includes 216,980 shares of Common Stock owned by Wheatley Partners.
(12) Includes 18,868 shares of Common Stock owned by Wheatley Foreign.
(13) Includes 509,483 shares of Common Stock owned individually by Irwin
Lieber, 31,040 shares of Common Stock issuable upon the exercise of the
Advisory Option, 18,624 shares of Common Stock issuable upon the
exercise of the 1996 Advisory Option, 20,000 shares of Common Stock
issuable upon the exercise of the 1998 Directors Option, 10,000 shares
of Common Stock issuable upon the exercise of the June 1999 Directors
Option, 7,500 shares of Common Stock issuable upon the exercise of the
October 1999 Directors Option, and 10,000 shares of Common Stock
issuable upon the exercise of the December 1999 Directors Option.
(14) Includes 517,243 shares of Common Stock owned individually by Barry
Fingerhut.
(15) Includes 34,136 shares of Common Stock owned individually by Seth
Lieber.
(16) Includes 106,809 shares of Common Stock owned by Applegreen Partners.
(17) Includes 32,584 shares of Common Stock owned individually by Jonathan
Lieber.
(b) Wheatley Partners II has sole power to vote and to
dispose of 1,430,507 shares of Common Stock, representing approximately 9.5% of
the outstanding Common Stock.
Barry Rubenstein, by virtue of being a general partner of
Wheatley Partners II, Woodland Venture, Seneca, Woodland Partners and Brookwood,
a member and officer of Wheatley Partners, LLC, and the husband of Marilyn
Rubenstein, may be deemed to have shared power to vote and to dispose of
3,720,739 shares of Common Stock, representing approximately 24.8% of the
outstanding Common Stock. Barry Rubenstein has sole power to vote and to dispose
of 247,176 shares of Common Stock (including shares issuable upon the exercise
of the Advisory Option, the 1996 Advisory Option, the 1998 Directors Option, the
June 1999 Directors Option, the October 1999 Directors Option, and the December
1999 Directors Option), representing approximately 1.6% of the outstanding
Common Stock.
Irwin Lieber, by virtue of being a general partner of Wheatley
Partners II and a member and officer of Wheatley Partners, LLC, may be deemed to
have shared power to vote and to dispose of 1,666,355 shares of Common Stock,
representing approximately 11.1% of the outstanding Common Stock. Irwin Lieber
has sole power to vote and to dispose of 606,647 shares of Common Stock
(including shares issuable upon the exercise of the Advisory Option, the 1996
Advisory Option, the 1998 Directors Option, the June 1999 Directors Option, the
October 1999 Directors Option, and the December 1999 Directors Option),
representing approximately 4.0% of the outstanding Common Stock.
Barry Fingerhut, by virtue of being a general partner of
Wheatley Partners II and a member and officer of Wheatley Partners, LLC, may be
deemed to have shared power to vote and to dispose of 1,666,355 shares of Common
Stock, representing approximately 11.1% of the outstanding
Page 19 of 23
Common Stock. Barry Fingerhut has sole power to vote and to dispose of 517,243
shares of Common Stock, representing approximately 3.4% of the outstanding
Common Stock.
Seth Lieber, by virtue of being a general partner of Wheatley
Partners II and Applegreen, and a member and officer of Wheatley Partners, LLC,
may be deemed to have shared power to vote and to dispose of 1,773,164 shares of
Common Stock, representing approximately 11.8% of the outstanding Common Stock.
Seth Lieber has sole power to vote and to dispose of 34,136 shares of Common
Stock, representing approximately 0.2% of the outstanding Common Stock.
Jonathan Lieber, by virtue of being a general partner of
Wheatley Partners II and managing general partner of Applegreen, and a member
and officer of Wheatley Partners, LLC, may be deemed to have shared power to
vote and to dispose of 1,773,164 shares of Common Stock, representing
approximately 11.8% of the outstanding Common Stock. Jonathan Lieber has sole
power to vote and to dispose of 32,584 shares of Common Stock, representing
approximately 0.2% of the outstanding Common Stock.
Woodland Venture has sole power to vote and to dispose of
829,226 shares of Common Stock, representing approximately 5.5% of the
outstanding Common Stock.
Seneca has sole power to vote and to dispose of 619,983 shares
of Common Stock, representing approximately 4.1% of the outstanding Common
Stock.
Marilyn Rubenstein, has sole power to vote and to dispose of
1,049 shares of Common Stock, representing approximately 0.01% of the
outstanding Common Stock, and by virtue of being an officer of Services and a
general partner of Woodland Partners and Brookwood, may be deemed to have shared
power to vote and to dispose of 2,053,335 shares of Common Stock, representing
approximately 13.7% of the outstanding Common Stock.
Services by virtue of being a general partner of Woodland
Venture and Seneca, may be deemed to have shared power to vote and to dispose of
1,449,209 shares of Common Stock, representing approximately 9.7% of the
outstanding Common Stock.
Woodland Partners has sole power to vote and to dispose of
309,316 shares of Common Stock, representing approximately 2.1% of the
outstanding Common Stock.
Applegreen has sole power to vote and to dispose of 106,809
shares of Common Stock, representing approximately 0.7% of the outstanding
Common Stock.
Brookwood has sole power to vote and to dispose of 294,810
shares of Common Stock, representing approximately 2.0% of the outstanding
Common Stock.
Wheatley Partners has sole power to vote and to dispose of
216,980 shares of Common Stock, representing approximately 1.4% of the
outstanding Common Stock, and may be deemed to have shared power to vote and to
dispose of 18,868 shares of Common Stock, representing approximately 0.1% of the
outstanding Common Stock.
Page 20 of 23
Wheatley Foreign has sole power to vote and to dispose of
18,868 shares of Common Stock, representing approximately 0.1% of the
outstanding Common Stock, and may be deemed to have shared power to vote and to
dispose of 216,980 shares of Common Stock, representing approximately 1.4% of
the outstanding Common Stock.
Wheatley Partners, LLC by virtue of being a general partner of
the Wheatley Partners and Wheatley Foreign, may be deemed to have shared power
to vote and to dispose of 235,848 shares of Common Stock, representing
approximately 1.5% of the outstanding Common Stock.
(c) The following table sets forth the transactions in the
securities of the Issuer by the Reporting Persons identified in Item 2 of this
Schedule 13D which were effected during the prior sixty days from December 17,
2004:
Number of
Name of Shareholder Sale Date Price Series D Warrants Sold
------------------- --------- ----- ----------------------
Barry Rubenstein 12/17/04 $0.001 1,333
Irwin Lieber 12/17/04 $0.001 93,417
Barry Fingerhut 12/17/04 $0.001 93,417
Woodland Venture Fund 12/17/04 $0.001 186,838
Seneca Ventures 12/17/04 $0.001 93,417
Woodland Partners 12/17/04 $0.001 93,417
Applegreen Partners 12/17/04 $0.001 23,354
Marilyn Rubenstein 12/17/04 $0.001 1,333
All sales were done in privately negotiated transactions.
(d) No other person has the right to receive or the power to direct
the receipt of dividends from, or the proceeds from the sale of such securities.
(e) Not applicable
Page 21 of 23
SIGNATURE
After reasonable inquiry and to the best of his/her/its knowledge and
belief, each of the undersigned hereby certifies that the information set forth
in this Schedule is true, complete and correct.
Dated: December 27, 2004
WHEATLEY PARTNERS II, L.P.
By:/s/ Irwin Lieber
-----------------------------------
Irwin Lieber, a General Partner
SENECA VENTURES
By:/s/ Barry Rubenstein
-----------------------------------
Barry Rubenstein, a General Partner
WOODLAND VENTURE FUND
By:/s/ Barry Rubenstein
-----------------------------------
Barry Rubenstein, a General Partner
WOODLAND SERVICES CORP.
By:/s/ Barry Rubenstein
-----------------------------------
Barry Rubenstein, President
/s/ Barry Rubenstein
--------------------------------------
Barry Rubenstein
/s/ Irwin Lieber
--------------------------------------
Irwin Lieber
/s/ Barry Fingerhut
--------------------------------------
Barry Fingerhut
/s/ Marilyn Rubenstein
--------------------------------------
Marilyn Rubenstein
/s/ Seth Lieber
--------------------------------------
Seth Lieber
Page 22 of 23
/s/ Jonathan Lieber
---------------------------------------------------
Jonathan Lieber
WOODLAND PARTNERS
By:/s/ Barry Rubenstein
------------------------------------------------
Barry Rubenstein, a General Partner
APPLEGREEN PARTNERS
By:/s/ Jonathan Lieber
------------------------------------------------
Jonathan Lieber, a General Partner
BROOKWOOD PARTNERS, L.P.
By:/s/ Barry Rubenstein
------------------------------------------------
Barry Rubenstein, a General Partner
WHEATLEY PARTNERS, L.P.
By: Wheatley Partners, LLC, the General Partner
By:/s/ Barry Rubenstein
------------------------------------------------
Barry Rubenstein, CEO
WHEATLEY FOREIGN PARTNERS, L.P.
By: Wheatley Partners, LLC, the General Partner
By:/s/ Barry Rubenstein
------------------------------------------------
Barry Rubenstein, CEO
WHEATLEY PARTNERS, LLC
By:/s/ Barry Rubenstein
------------------------------------------------
Barry Rubenstein, CEO
ATTENTION: INTENTIONAL MISSTATEMENTS OR OMISSIONS OF FACT CONSTITUTE FEDERAL
CRIMINAL VIOLATIONS (SEE 18 U.S.C. 1001)
Page 23 of 23