UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Schedule 13D
Under the Securities Exchange Act of 1934
(Amendment No. 4)(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.
Morrison Cohen Singer & Weinstein, LLP
750 Lexington Avenue
New York, NY 10022
Telephone: (212) 735-8600
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
October 2, 2003
(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 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 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).
----------------------
CUSIP No. 64121N109 13D
----------------------
--------------------------------------------------------------------------------
1 NAME 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*
(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
1,383,337 shares 16.3%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares 0%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 1,383,337 shares 16.3%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares 0%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,383,337 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
16.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 2 of 25
----------------------
CUSIP No. 64121N109 13D
----------------------
--------------------------------------------------------------------------------
1 NAME 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*
(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
602,823 shares 6.8%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,572,015 shares 18.1%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 602,823 shares 6.8%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,572,015 shares 18.1%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,174,838 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
23.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 3 of 25
----------------------
CUSIP No. 64121N109 13D
----------------------
--------------------------------------------------------------------------------
1 NAME 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*
(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
224,718 shares 2.6%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 3,647,611 shares 34.8%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 224,718 shares 2.6%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
3,647,611 shares 34.8%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,872,329 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
36.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 4 of 25
----------------------
CUSIP No. 64121N109 13D
----------------------
--------------------------------------------------------------------------------
1 NAME 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*
(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
513,419 shares 5.8%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,572,015 shares 18.1%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 513,419 shares 5.8%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,572,015 shares 18.1%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,085,434 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
22.7%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 5 of 25
----------------------
CUSIP No. 64121N109 13D
----------------------
--------------------------------------------------------------------------------
1 NAME 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*
(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
28,240 shares 0.3%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,680,816 shares 19.1%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 28,240 shares 0.3%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,680,816 shares 19.1%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,709,056 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 6 of 25
----------------------
CUSIP No. 64121N109 13D
----------------------
--------------------------------------------------------------------------------
1 NAME 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*
(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
26,888 shares 0.3%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,680,816 shares 19.1%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 26,888 shares 0.3%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,680,816 shares 19.1%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,707,704 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
19.4%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 7 of 25
----------------------
CUSIP No. 64121N109 13D
----------------------
--------------------------------------------------------------------------------
1 NAME 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*
(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
880,543 shares 9.7%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares 0%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 880,543 shares 9.7%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares 0%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
880,543 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.7%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 8 of 25
----------------------
CUSIP No. 64121N109 13D
----------------------
--------------------------------------------------------------------------------
1 NAME 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*
(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
616,159 shares 7.0%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares 0%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 616,159 shares 7.0%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares 0%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
616,159 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 9 of 25
----------------------
CUSIP No. 64121N109 13D
----------------------
--------------------------------------------------------------------------------
1 NAME 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*
(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
2,176 shares 0.03%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 2,073,420 shares 20.5%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 2,176 shares 0.03%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,073,420 shares 20.5%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,075,596 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
20.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 10 of 25
----------------------
CUSIP No. 64121N109 13D
----------------------
--------------------------------------------------------------------------------
1 NAME 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*
(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 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,496,703 shares 16.6%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0 shares 0%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,496,703 shares 16.6%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,496,703 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
16.6%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 11 of 25
----------------------
CUSIP No. 64121N109 13D
----------------------
--------------------------------------------------------------------------------
1 NAME 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*
(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
340,869 shares 3.9%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares 0%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 340,869 shares 3.9%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares 0%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
340,869 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 12 of 25
----------------------
CUSIP No. 64121N109 13D
----------------------
--------------------------------------------------------------------------------
1 NAME 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*
(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
235,848 shares 2.8%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares 0%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 235,848 shares 2.8%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares 0%
--------------------------------------------------------------------------------
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* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.8%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 13 of 25
----------------------
CUSIP No. 64121N109 13D
----------------------
--------------------------------------------------------------------------------
1 NAME 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*
(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
108,801 shares 1.3%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares 0%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 108,801 shares 1.3%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares 0%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
108,801 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 14 of 25
----------------------
CUSIP No. 64121N109 13D
----------------------
--------------------------------------------------------------------------------
1 NAME 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*
(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
173,584 shares 2.0%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 15,094 shares 0.2%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 173,584 shares 2.0%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
15,094 shares 0.2%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
188,678 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 15 of 25
----------------------
CUSIP No. 64121N109 13D
----------------------
--------------------------------------------------------------------------------
1 NAME 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*
(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
15,094 shares 0.2%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 173,584 shares 2.0%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 15,094 shares 0.2%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
173,584 shares 2.0%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
188,678 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 16 of 25
----------------------
CUSIP No. 64121N109 13D
----------------------
--------------------------------------------------------------------------------
1 NAME 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*
(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 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 188,678 shares 2.2%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0 shares 0%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
188,678 shares 2.2%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
188,678 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 17 of 25
----------------------
CUSIP No. 64121N109 13D
----------------------
This statement, dated October 2, 2003, constitutes Amendment No. 4 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 8,314,458 shares of Common Stock outstanding as reported in
the Issuer's Form 10-QSB for the quarter ended September 30, 2003) of
outstanding shares of Common Stock owned beneficially by each reporting person
named in Item 2, as of October 2, 2003:
Shares of Common Percentage of Shares
Stock Beneficially of Common Stock
Name Owned(2) Beneficially Owned(2)
---- -------- ---------------------
Wheatley Partners II, L.P. 1,383,337 16.3%
Barry Rubenstein 3,872,329(3,4,5,6,7,8,9,10,11,12) 36.3%
Irwin Lieber 2,174,838(3,4,11,12,13) 23.5%
Barry Fingerhut 2,085,434(3,4,11,12,14) 22.7%
Seth Lieber 1,709,056(3,4,11,12,15,16) 19.4%
Jonathan Lieber 1,707,704(3,4,11,12,16,17) 19.4%
Woodland Venture Fund 880,543(6) 9.7%
Seneca Ventures 616,159(7) 7.0%
Marilyn Rubenstein 2,075,596(4,6,7,8,9,10) 20.5%
Woodland Services Corp. 1,496,703(4,6,7) 16.6%
Woodland Partners 340,869(8) 3.9%
Brookwood Partners, L.P. 235,848(10) 2.8%
Applegreen Partners 108,801(16) 1.3%
Wheatley Partners, L.P. 188,678(4,11,12) 2.2%
Wheatley Foreign Partners, L.P. 188,678(4,11,12) 2.2%
Wheatley Partners, LLC 188,678(4,11,12) 2.2%
----------
(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, the December 1999 Directors Option, shares of Common Stock
issuable upon the conversion of the Series D
Page 18 of 25
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CUSIP No. 64121N109 13D
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Preferred Stock, shares of Common Stock issuable upon the exercise
of the Series D Warrants and shares of Common Stock issuable upon
the conversion of the Series E Preferred Stock.
(3) Includes 1,194,659 shares of Common Stock owned by Wheatley Partners
II, L.P and 188,678 shares of Common Stock issuable upon the
conversion of the Series E Preferred Stock.
(4) The reporting person disclaims beneficial ownership of these
securities, except to the extent of his/her/its equity interest
therein.
(5) Includes 31,040 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 , 10,000 shares of
Common Stock issuable upon the exercise of the December 1999
Directors Option, 840 shares issuable upon the conversion of the
Series D Preferred Stock, 1,336 shares issuable upon the exercise of
the Series D Warrants and 94,338 shares of Common Stock issuable
upon the conversion of the Series E Preferred Stock.
(6) Includes 151,628 shares of Common Stock owned by Woodland Venture,
117,550 shares of Common Stock issuable upon the conversion of the
Series D Preferred Stock, 186,838 shares of Common Stock issuable
upon the exercise of the Series D Warrants and 424,528 shares of
Common Stock issuable upon the conversion of the Series E Preferred
Stock.
(7) Includes 133,780 shares of Common Stock owned by Seneca, 58,774
shares of Common Stock issuable upon the conversion of the Series D
Preferred Stock, 93,417 shares of Common Stock issuable upon the
exercise of the Series D Warrants and 330,188 shares of Common Stock
issuable upon the conversion of the Series E Preferred Stock.
(8) Includes 58,774 shares of Common Stock issuable upon the conversion
of the Series D Preferred Stock, 93,417 shares of Common Stock
issuable upon the exercise of the Series D Warrants owned by
Woodland Partners and 188,678 shares of Common Stock issuable upon
the conversion of the Series E Preferred Stock.
(9) Includes 840 shares of Common Stock issuable upon the conversion of
the Series D Preferred Stock and 1,336 shares of Common Stock
issuable upon the exercise of the Series D Warrants owned by Marilyn
Rubenstein.
(10) Includes 235,848 shares of Common Stock issuable upon the conversion
of the Series E Preferred Stock owned by Brookwood.
(11) Includes 173,584 shares of Common Stock issuable upon the conversion
of the Series E Preferred Stock owned by Wheatley Partners.
(12) Includes 15,094 shares of Common Stock issuable upon the conversion
of the Series E Preferred Stock owned by Wheatley Foreign.
(13) Includes 23,280 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 exercise of the June 1999
Directors Option, 7,500 shares of Common Stock issuable upon the
exercise of the October 1999 Directors Option, 10,000 shares of
Common Stock issuable upon the exercise of the December 1999
Directors Option, 58,774 shares of Common Stock issuable upon the
conversion of the Series D Preferred Stock, 93,417 shares of Common
Stock issuable upon the exercise of the Series D Warrants and
330,188 shares of Common Stock issuable upon the conversion of the
Series E Preferred Stock.
(14) Includes 31,040 shares of Common Stock owned individually by Barry
Fingerhut, 58,774 shares of Common Stock issuable upon the
conversion of the Series D Preferred Stock, 93,417 shares of Common
Stock issuable upon the exercise of the Series D Warrants and
330,188 shares of Common Stock issuable upon the conversion of the
Series E Preferred Stock.
(15) Includes 4,656 shares of Common Stock owned individually by Seth
Lieber and 23,584 shares of Common Stock issuable upon the
conversion of the Series E Preferred Stock.
Page 19 of 25
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CUSIP No. 64121N109 13D
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(16) Includes 14,693 shares of Common Stock issuable upon the conversion
of the Series D Preferred Stock, 23,354 shares of Common Stock
issuable upon the exercise of the Series D Warrants owned by
Applegreen Partners and 70,754 shares of Common Stock issuable upon
the conversion of the Series E Preferred Stock.
(17) Includes 3,104 shares of Common Stock owned individually by Jonathan
Lieber and 23,584 shares of Common Stock issuable upon the
conversion of the Series E Preferred Stock.
(b) Wheatley Partners II has sole power to vote and to dispose of
1,383,337 shares of Common Stock (including 188,678 shares issuable upon the
conversion of the Series E Preferred Stock), representing approximately 16.3% 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 3,647,611 shares of
Common Stock (including 235,938 shares issuable upon the conversion of the
Series D Preferred Stock, 375,008 shares issuable upon the exercise of the
Series D Warrants and 1,556,598 shares issuable upon the conversion of the
Series E Preferred Stock), representing approximately 34.8% of the outstanding
Common Stock. Barry Rubenstein has sole power to vote and to dispose of 224,718
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 the December 1999
Directors Option, 840 shares issuable upon the conversion of the Series D
Preferred Stock, 1,336 shares issuable upon the exercise of the Series D
Warrants and 94,338 shares issuable upon the conversion of the Series E
Preferred Stock), representing approximately 2.6% 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 1,572,015 shares of Common Stock
(including 377,356 shares issuable upon the conversion of the Series E Preferred
Stock), representing approximately 18.1% of the outstanding Common Stock. Irwin
Lieber has sole power to vote and to dispose of 602,823 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, the December 1999 Directors Option, 58,774 shares
issuable upon the conversion of the Series D Preferred Stock, 93,417 shares
issuable upon the exercise of the Series D Warrants and 330,188 shares issuable
upon the conversion of the Series E Preferred Stock), representing approximately
6.8% 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 1,572,015 shares of Common Stock
(including 377,356 shares issuable upon the conversion of the Series E Preferred
Stock), representing approximately 18.1% of the outstanding Common Stock. Barry
Fingerhut has sole power to vote and to dispose of 513,419 shares of Common
Stock (including 58,774 shares issuable upon the conversion of the Series D
Preferred Stock, 93,417 shares issuable upon the exercise of the Series D
Warrants and 330,188 shares issuable upon the conversion of the Series E
Preferred Stock), representing approximately 5.8% of the outstanding Common
Stock.
Seth Lieber, by virtue of being a general partner of Wheatley
Partners II, L.P. and Applegreen, and a member and officer of Wheatley Partners,
LLC, may be deemed to have shared power to vote and to dispose of 1,680,816
shares of Common Stock (including 14,693 shares issuable upon the conversion of
the Series D Preferred Stock, 23,354 shares issuable upon the exercise of the
Series D Warrants and 448,110 shares issuable upon the conversion of the Series
E Preferred Stock), representing approximately 19.1% of the outstanding Common
Stock. Seth Lieber has sole power to vote and to
Page 20 of 25
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CUSIP No. 64121N109 13D
----------------------
dispose of 28,240 shares of Common Stock (including 23,584 shares issuable upon
the conversion of the Series E Preferred Stock), representing approximately 0.3%
of the outstanding Common Stock.
Jonathan Lieber, by virtue of being a general partner of Wheatley
Partners II, L.P. 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 1,680,816 shares of Common Stock (including 14,693 shares
issuable upon the conversion of the Series D Preferred Stock, 23,354 shares
issuable upon the exercise of the Series D Warrants and 448,110 shares issuable
upon the conversion of the Series E Preferred Stock), representing approximately
19.1% of the outstanding Common Stock. Jonathan Lieber has sole power to vote
and to dispose of 26,888 shares of Common Stock (including 23,584 shares
issuable upon the conversion of the Series E Preferred Stock), representing
approximately 0.3% of the outstanding Common Stock.
Woodland Venture has sole power to vote and to dispose of 880,543
shares of Common Stock (including 117,550 shares issuable upon the conversion of
the Series D Preferred Stock, 186,838 shares issuable upon the exercise of the
Series D Warrants and 424,528 shares issuable upon the conversion of the Series
E Preferred Stock), representing approximately 9.7% of the outstanding Common
Stock.
Seneca has sole power to vote and to dispose of 616,159 shares of
Common Stock (including 58,774 shares issuable upon the conversion of the Series
D Preferred Stock, 93,417 shares issuable upon the exercise of the Series D
Warrants and 330,188 shares issuable upon the conversion of the Series E
Preferred Stock), representing approximately 7.0% of the outstanding Common
Stock.
Marilyn Rubenstein, has sole power to vote and to dispose of 2,176
shares of Common Stock (including of 840 shares issuable upon the conversion of
the Series D Preferred Stock and 1,336 shares issuable upon the exercise of the
Series D Warrants), representing approximately 0.03% 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 2,073,420 shares of Common Stock (including 235,098 shares
issuable upon the conversion of the Series D Preferred Stock, 373,672 shares
issuable upon the exercise of the Series D Warrants and 1,179,242 shares
issuable upon the conversion of the Series E Preferred Stock), representing
approximately 20.5% of the outstanding Common Stock.
Services by virtue of being a general partner of the Fund and
Seneca, may be deemed to have shared power to vote and to dispose of 1,496,703
shares of Common Stock (including 176,324 shares issuable upon the conversion of
the Series D Preferred Stock, 280,255 shares issuable upon the exercise of the
Series D Warrants and 754,716 shares issuable upon the conversion of the Series
E Preferred Stock), representing approximately 16.6% of the outstanding Common
Stock.
Woodland Partners has sole power to vote and to dispose of 340,869
shares of Common Stock (including of 58,774 shares issuable upon the conversion
of the Series D Preferred Stock, 93,417 shares issuable upon the exercise of the
Series D Warrants and 188,678 shares issuable upon the conversion of the Series
E Preferred Stock), representing approximately 3.9% of the outstanding Common
Stock.
Applegreen has sole power to vote and to dispose of 108,801 shares
of Common Stock (including of 14,693 shares issuable upon the conversion of the
Series D Preferred Stock, 23,354 shares issuable upon the exercise of the Series
D Warrants and 70,754 shares issuable upon the conversion of the Series E
Preferred Stock), representing approximately 1.3% of the outstanding Common
Stock.
Page 21 of 25
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CUSIP No. 64121N109 13D
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Brookwood has sole power to vote and to dispose of 235,848 shares of
Common Stock (consisting of 235,848 shares issuable upon the conversion of the
Series E Preferred Stock), representing approximately 2.8% of the outstanding
Common Stock.
Wheatley Partners has sole power to vote and to dispose of 173,584
shares of Common Stock (consisting of 173,584 shares issuable upon the
conversion of the Series E Preferred Stock), representing approximately 2.0% of
the outstanding Common Stock, and may be deemed to have shared power to vote and
to dispose of 15,094 shares of Common Stock (consisting of 15,094 shares
issuable upon the conversion of the Series E Preferred Stock), representing
approximately 0.2% of the outstanding Common Stock.
Wheatley Foreign has sole power to vote and to dispose of 15,094
shares of Common Stock (consisting of 15,094 shares issuable upon the conversion
of the Series E Preferred Stock), representing approximately 0.2% of the
outstanding Common Stock, and may be deemed to have shared power to vote and to
dispose of 173,584 shares of Common Stock (consisting of 173,584 shares issuable
upon the conversion of the Series E Preferred Stock), representing approximately
2.0% 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 188,678 shares of Common Stock (consisting of 188,678
shares issuable upon the conversion of the Series E Preferred Stock),
representing approximately 2.2% of the outstanding Common Stock.
(c) The only transactions in the securities of the Issuer within the
sixty (60) days prior to October 2, 2003 by the reporting persons identified in
Item 2 of this Schedule 13D were the expiration of the Series E Warrants as set
forth below:
Expiration of Series E
Name of Shareholder Date Warrants(1)
------------------- ---- -----------
Wheatley Partners II, L.P. 10/02/03 188,678
Wheatley Partners, L.P. 10/02/03 173,584
Wheatley Foreign 10/02/03 15,094
Partners, L.P.
Barry Rubenstein 10/02/03 94,338
Irwin Lieber 10/02/03 330,188
Barry Fingerhut 10/02/03 330,188
Seth Lieber 10/02/03 23,584
Jonathan Lieber 10/02/03 23,584
Woodland Venture Fund 10/02/03 424,528
Seneca Ventures 10/02/03 330,188
Woodland Partners 10/02/03 188,678
Page 22 of 25
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CUSIP No. 64121N109 13D
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Expiration of Series E
Name of Shareholder Date Warrants(1)
------------------- ---- -----------
Brookwood Partners, L.P. 10/02/03 235,848
Applegreen Partners 10/02/03 70,754
----------
(1) Each Series E Warrant was exercisable for one share of Common Stock,
subject to adjustment, during the two year period ending October 2,
2003.
(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 23 of 25
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: January 12, 2004 WHEATLEY PARTNERS II, L.P.
By: /s/ Irwin Lieber
------------------------------------
Irwin Lieber, General Partner
SENECA VENTURES
By: /s/ Barry Rubenstein
------------------------------------
Barry Rubenstein, General Partner
WOODLAND VENTURE FUND
By: /s/ Barry Rubenstein
------------------------------------
Barry Rubenstein, 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
/s/ Jonathan Lieber
----------------------------------------
Jonathan Lieber
WOODLAND PARTNERS
By: /s/ Barry Rubenstein
------------------------------------
Barry Rubenstein, General Partner
APPLEGREEN PARTNERS
By: /s/ Jonathan Lieber
------------------------------------
Jonathan Lieber, General Partner
BROOKWOOD PARTNERS, L.P.
By: /s/ Barry Rubenstein
------------------------------------
Barry Rubenstein, General Partner
WHEATLEY PARTNERS, L.P.
By: Wheatley Partners, LLC,
General Partner
By: /s/ Barry Rubenstein
------------------------------------
Barry Rubenstein, CEO
WHEATLEY FOREIGN PARTNERS, L.P.
By: Wheatley Partners, LLC,
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).