Here it is for all to see for themselves. I find it amusing for anyone to get excited about having the investment world see these ugly details.
Selected Financial Data
Statement of Operations Data: Year Ended December 31
-----------------------
1997 1998
(Unaudited)
---- ----
Total revenue ......................... $0 $91,281
Cost of revenue and services .......... $0 $146,533
Operating expenses .................... $817,280 $2,109,814
Loss from operations .................. ($817,280) ($2,165,066)
Other expense ......................... ( $150) ( $2,138)
Net loss .............................. ($817,430) ($2,167,204)
Michael Sheppard receives a salary of $150,000 per year pursuant to his
employment agreement dated September 12, 1997. The employment agreement expires
on December 31, 2002. Mr. Sheppard received an incentive bonus of 750,000 shares
of Common Stock upon execution of a consulting agreement on February 27th, 1997.
Pursuant to his employment agreement, Mr. Sheppard will receive options to
purchase 14.5% of the shares of Common Stock issued through December 31, 2002,
provided that the aggregate number of options shall be reduced by the sum of (a)
750,000; (b) any shares issued upon exercise of the option; and (c) any shares
Ms. Marx receives a salary of $100,000 per year pursuant to her
employment agreement dated September 12, 1997 and amended as of December 15,
1998. The employment agreement expires on December 31, 2002. Ms. Marx received
an incentive bonus of 500,000 shares of Common Stock upon execution of the
employment agreement. Pursuant to her employment agreement, she will receive
options to purchase 9% of the of shares of Common Stock issued by Financial
Intranet through December 31, 2002, reduced by the sum of (a) 500,000 shares;
Mr. Ross receives a salary of $80,000 per year and has an unvested
option to purchase 250,000 shares of Common Stock at an exercise price of $0.62
1/2 per share.
Mr. Spar receives a salary of $100,000 per year and has an unvested
option to purchase 250,000 shares at an exercise price of $0.62 1/2 per share.
Pursuant to a consulting agreement dated February 7, 1997, Mr. Stein
received compensation of $150,000 per year and 1,500,000 shares of Common Stock
at par value as a signing bonus and 1,500,000 shares of Common Stock in lieu of
his compensation for 1997. Mr. Stein ceased his employment and became a
consultant pursuant to a consulting agreement dated as of December 15, 1998. Mr.
Stein receives a consulting fee of $12,500 per month. Financial Intranet has
accrued Mr. Stein's consulting fee for 1998 in the aggregate amount of $150,000
but has paid $30,000 of such accrued amount in 1999.
Pursuant to Mr. Stein's employment and consulting agreements, he will
receive options to purchase 25% of the shares of Common Stock issued by
Financial Intranet through December 31, 2002 minus the sum of (a) 1,500,000; (b)
any shares previously issued upon the exercise of his option; and (c) any shares
issued in lieu of cash expenses advanced by Mr. Stein or accepted as previously
earned consulting fees in lieu of cash. The purchase price for such shares is
$0.19 per share with respect to 3,640,262 shares of Common Stock as of December
31, 1998. The exercise prices for his options issued after December 31, 1998 are
the market prices per share of Common Stock on the date that Financial Intranet
issues any additional shares, including options for 3,464,942 shares upon
exercise of all options, warrants and convertible promissory notes outstanding
as of the date of this Prospectus. The option expires upon the earlier to occur
of December 31, 2002 or 90 days after the termination of Mr. Stein's consulting
agreement.
.
ANNUAL COMPENSATION LONG-TERM COMPENSATION
------------------- ----------------------
Name and Principal Position Year Salary Bonus Other Restricted Stock Awards Stock Options
--------------------------- ---- ------ ----- ----- ----------------------- -------------
Ben B. Stein (1) 1998 $150,000 $0 $0 $0 1,242,955
1997 $150,000 $0 $10,500 $54,000 2,397,307
1996 $0 $0 $0 $0 0
Michael Sheppard 1998 $150,000 $0 $0 $0 720,914
1997 $116,352 $0 $0 $27,000 1,510,438
1996 $0 $0 $0 $0 0
Maura Marx 1998 $100,000 $0 $0 $0 447,464
1997 $48,750 $0 $0 $18,000 903,031
1996 $0 $0 $0 $0 0
-------------------
(1) On February 27, 1997, Mr. Stein signed a consulting agreement that provided
him a total of 1,500,000 shares of common stock that compensated him for his
fees in 1997 and an additional 1,500,000 shares of common stock as an inducement
to execution of the consulting agreement
Notice that:
Sheppard has options to own 14% of FNTN
MM is 9%
Stein is a whopping 25% and excercise price is .19 pershare on 3,640,000 shares!
This is all NON-DILUTIVE PEOPLE! Wake up!
Also, if you read on Edgar under the heading of "Business", what happened to the contracts with McGraw Hill for $5 million per month.
Any one that defends this sad story is a FOOL! |
