Let's do a little surgery on this puppy...these are excerpts from the companies filings with the SEC...
"For the nine months ended 3/31/98, revenues totalled $49 thousand. Net loss totalled $2.6 million. Results are not comparable due to the 10/2/96 inception of current operations." Ooh yummy.
"Common stock, no par value per share, 50,000,000 shares authorized, 17,194,043 shares issued and outstanding as of March 31, 1999. As of that date, it is estimated that approximately 4,511,000 shares were in the public float with an aggregate market value of approximately $16,353,000." Ooh great structure..not
"To date, $3.7 million has been billed to mPhase for research and development conducted by GTRI, of which $2.2 million remained outstanding at December 31, 1998. " Nasty little bill.
"During the fiscal year ending June 30, 1999, the Company plans to incur research and development expenses of approximately $5,000,000 as a consequence of the continued development of its current DSL products." More losses.....
"Another matter which did not
result in litigation but was settled by the Company involved claims by Thomas A. Murphy, a former director and executive of the Company who agreed to waive all claims against the Company in return for allowing him to retain the benefit of 525,000 shares of mPhase common stock he had acquired as a founding shareholder of Lightpaths, Inc. and as a director of the Company" Wonder when he'll want to sell? *smile*
(a) In June 1997, the Company issued 594,270 post reverse split shares for aggregate consideration of $897,405, pursuant to Rule 504 of Regulation D of the United States Securities and Exchange Commission. In July 1997, the Company issued 49,300 post reverse split shares for aggregate consideration of $98,600,pursuant to Rule 504 of Regulation D of the United States Securities and
Exchange Commission.
In November 1997, 300,000 post reverse split shares were issued for services rendered to the Company valued at twenty-five ($0.25) cents per share in connection with efforts to obtain markets for the Company's technology.
In November 1997, the Company also issued 300,000 post reverse split shares to shareholders of Complete Telecommunications, inc. for aggregate consideration of $300,000 and issued 250,000 post reverse split shares as part of its investment in Complete Telecommunications, Inc.
During the fiscal year ended June 1998, the Company issued 2,195,014 post reverse split shares for aggregate consideration of $1,677,218, which net of offering costs of $205,203, generated net proceeds of 1,472,015 to the Company. In addition, during the same time period, warrants to purchase 1,621,845 shares of mPhase common stock at a price of $.75 per share were issued pursuant to an offering made under Rule 505 of Regulation D promulgated by the United States Securities and Exchange Commission under authority granted that federal agency by provisions of the Securities Act of 1933, as
amended.
On June 25, 1998, the Company issued 2,500,000 shares in consideration for all the shares outstanding of Microphase Telecommunications, Inc., a Connecticut corporation, which is also an affiliate that holds substantially all the patents and copyrights to the Company's technology.
During the six month period ended December 31, 1998, the Company issued 360,000 shares valued at $615,000, considering the Rule 144 restrictions to which they were subject, and charged the same to stock based compensation in the statement of operations.
During the six month period ended December 31, 1998, the Company issued 54,332 shares valued at $40,750 for services.
Also during the six period ended December 31, 1998, the Company issued 3,115,000 shares for $3,197,416, which net of offering costs aggregating $132,666, generated net proceeds of $3,064,750 to the Company.
Subsequent to December 31, 1998, the Company issued 85,000 shares for services rendered valued at $0.50 per share resulting in net proceeds to the Company of $42,500 for bookkeeping purposes.
(b) The Company has not publicly offered any unregistered securities. It has no agreement with any person who may be deemed an underwriter. However, it has sold shares of its common stock in private transactions, including the Rule 504 and Rule 505 offerings discussed below.
(d) The issuer has not sold any securities for other than cash, except for 1,000,000 shares of its common stock issued to the following persons:
(1) 600,000 shares of stock issued to Nutley Securities, Inc. a company in which Ronald A. Durando is President, valued at $0.01 per share in connection with his services as a "finder fee" at the time of the acquisition of Lightpaths, Inc.
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(2) 100,000 shares of common stock, valued at $0.25 per share, issued to Robert H. Jaffe & Associates, P.A. in consideration of services to be rendered by that law firm in connection with drafting the Company's initial registration statement on SEC Form 10-SB, and 300,000 shares to six investors who performed services for the Company in connection with efforts to obtain markets for the
Company's technology." Now that's a hell of a lot of stock!!!! |
