UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Schedule 13D
Under the Securities Exchange Act of 1934
(Amendment No. 5)(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:
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)
April 13, 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 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).
1 of 24
CUSIP No. 64121N109 13D Page 2 of 24 Pages
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
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
1,430,507 shares 9.5%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares 0%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 1,430,507 shares 9.5%
WITH -----------------------------------------------------------------
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* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 64121N109 13D Page 3 of 24 Pages
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
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
700,064 shares 4.6%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,666,355 shares 11.1%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 700,064 shares 4.6%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,666,355 shares 11.1%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,366,419 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.7%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 64121N109 13D Page 4 of 24 Pages
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
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
248,509 shares 1.6%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 4,095,644 shares 26.6%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 248,509 shares 1.6%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,095,644 shares 26.6%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,344,153 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
28.1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 64121N109 13D Page 5 of 24 Pages
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
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
610,660 shares 4.0%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,666,355 shares 11.1%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 610,660 shares 4.0%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,666,355 shares 11.1%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,277,015 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 64121N109 13D Page 6 of 24 Pages
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
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
34,136 shares 0.2%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,796,518 shares 11.9%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 34,136 shares 0.2%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,796,518 shares 11.9%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,830,654 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 64121N109 13D Page 7 of 24 Pages
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
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
32,584 shares 0.2%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,796,518 shares 11.9%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 32,584 shares 0.2%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,796,518 shares 11.9%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,829,102 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 64121N109 13D Page 8 of 24 Pages
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
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
1,016,064 shares 6.7%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares 0%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 1,016,064 shares 6.7%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares 0%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,016,064 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.7%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 64121N109 13D Page 19 of 24 Pages
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
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
713,400 shares 4.7%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares 0%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 713,400 shares 4.7%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares 0%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
713,400 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.7%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 64121N109 13D Page 10 of 24 Pages
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
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
2,382 shares 0.02%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 2,426,907 shares 15.8%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 2,382 shares 0.02%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,426,907 shares 15.8%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,429,289 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
15.8%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 64121N109 13D Page 11 of 24 Pages
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
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 1,729,364 shares 11.3%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0 shares 0%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,729,364 shares 11.3%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,729,364 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.3%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 64121N109 13D Page 12 of 24 Pages
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
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
402,733 shares 2.7%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares 0%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 402,733 shares 2.7%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares 0%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
402,733 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.7%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 64121N109 13D Page 13 of 24 Pages
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
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
294,810 shares 2.0%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares 0%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 294,810 shares 2.0%
WITH -----------------------------------------------------------------
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* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 64121N109 13D Page 14 of 24 Pages
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
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
130,163 shares 0.9%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares 0%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 130,163 shares 0.9%
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares 0%
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
130,163 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.9%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 64121N109 13D Page 15 of 24 Pages
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
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
216,980 shares 1.4%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 18,868 shares 0.1%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 216,980 shares 1.4%
WITH -----------------------------------------------------------------
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* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 64121N109 13D Page 16 of 24 Pages
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
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
18,868 shares 0.1%
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 216,980 shares 1.4%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 18,868 shares 0.1%
WITH -----------------------------------------------------------------
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* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 64121N109 13D Page 17 of 24 Pages
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
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 235,848 shares 1.5%
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 0 shares 0%
WITH -----------------------------------------------------------------
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* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.5%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 64121N109 13D Page 18 of 24 Pages
This statement, dated April 13, 2004, constitutes Amendment No. 5 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 3. Source and Amount of Funds or Other Consideration.
Item 3 is hereby amended as follows:
On April 13, 2004, pursuant to the provisions of an exchange agreement
with the Issuer, each of Wheatley Partners II, L.P., Wheatley Partners, L.P.,
Wheatley Foreign Partners, L.P., Barry Rubenstein, Irwin Lieber, Barry
Fingerhut, Seth Lieber, Jonathan Lieber, Woodland Venture Fund, Seneca Ventures,
Woodland Partners, Brookwood Partners, L.P., Applegreen Partners and Marilyn
Rubenstein exchanged the number of shares of Series D Preferred Stock and/or
Series E Preferred Stock reflected in Item 5(c) below for shares of Common Stock
of the Issuer. Holders of the Series D Preferred Stock and the Series E
Preferred Stock received 1.25 shares of Common Stock for each share of Common
Stock such holder would have received based upon the prior conversion rates for
each share of preferred stock.
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-KSB for the year ended December 31, 2003), of
outstanding shares of Common Stock owned beneficially by each reporting person
named in Item 2, as of April 13, 2004:
Shares of Common Percentage of Shares
Stock Beneficially of Common Stock
Name Owned(2) Beneficially Owned(2)
---- -------- ---------------------
Wheatley Partners II, L.P. 1,430,507 9.5%
Barry Rubenstein 4,344,153(3)(4)(5)(6)(7)(8)(9)(10)(11)(12) 28.1%
Irwin Lieber 2,366,419(3)(4)(11)(12)(13) 15.7%
Barry Fingerhut 2,277,015(3)(4)(11)(12)(14) 15.1%
Seth Lieber 1,830,654(3)(4)(11)(12)(15)(16) 12.2%
Jonathan Lieber 1,829,102(3)(4)(11)(12)(16)(17) 12.2%
Woodland Venture Fund 1,016,064(6) 6.7%
Seneca Ventures 713,400(7) 4.7%
Marilyn Rubenstein 2,429,289(4)(6)(7)(8)(9)(10) 15.8%
Woodland Services Corp. 1,729,364(4)(6)(7) 11.3%
Woodland Partners 402,733(8) 2.7%
Brookwood Partners, L.P. 294,810(10) 2.0%
CUSIP No. 64121N109 13D Page 19 of 24 Pages
Shares of Common Percentage of Shares
Stock Beneficially of Common Stock
Name Owned(2) Beneficially Owned(2)
---- -------- ---------------------
Applegreen Partners 130,163(16) 0.9%
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%
-------------------------------
(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
issued upon the exchange of the Series D Preferred Stock, shares of
Common Stock issuable upon the exercise of the Series D Warrants and
shares of Common Stock issued upon the exchange of the Series E
Preferred Stock.
(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, 10,000 shares of
Common Stock issuable upon the exercise of the December 1999
Directors Option and 1,333 shares issuable upon the exercise of the
Series D Warrants.
(6) Includes 829,226 shares of Common Stock owned by Woodland Venture
and 186,838 shares of Common Stock issuable upon the exercise of the
Series D Warrants.
(7) Includes 619,983 shares of Common Stock owned by Seneca, and 93,417
shares of Common Stock issuable upon the exercise of the Series D
Warrants.
(8) Includes 309,316 shares of Common Stock owned by Woodland Partners
and 93,417 shares of Common Stock issuable upon the exercise of the
Series D Warrants.
(9) Includes 1,049 shares of Common Stock owned by Marilyn Rubenstein
and 1,333 shares of Common Stock issuable upon the exercise of the
Series D Warrants.
(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 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, and 93,417 shares of Common Stock issuable upon
the exercise of the Series D Warrants.
(14) Includes 517,243 shares of Common Stock owned individually by Barry
Fingerhut, and 93,417 shares of Common Stock issuable upon the
exercise of the Series D Warrants.
CUSIP No. 64121N109 13D Page 20 of 24 Pages
(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
and 23,354 shares of Common Stock issuable upon the exercise of the
Series D Warrants.
(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
4,095,644 shares of Common Stock (including 375,005 shares issuable upon the
exercise of the Series D Warrants), representing approximately 26.6% of the
outstanding Common Stock. Barry Rubenstein has sole power to vote and to dispose
of 248,509 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 and 1,333 shares issuable upon the exercise of the Series D
Warrants), 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 700,064 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 and 93,417
shares issuable upon the exercise of the Series D Warrants), representing
approximately 4.6% 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 Common Stock. Barry
Fingerhut has sole power to vote and to dispose of 610,660 shares of Common
Stock (including 93,417 shares issuable upon the exercise of the Series D
Warrants), representing approximately 4.0% 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 1,796,518 shares of
Common Stock (including 23,354 shares issuable upon the exercise of the Series D
Warrants), representing approximately 11.9% 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 1,796,518 shares of Common Stock (including 23,354 shares
issuable upon the exercise of the Series D Warrants), representing approximately
11.9% 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.
CUSIP No. 64121N109 13D Page 21 of 24 Pages
Woodland Venture has sole power to vote and to dispose of
1,016,064 shares of Common Stock (including 186,838 shares issuable upon the
exercise of the Series D Warrants), representing approximately 6.7% of the
outstanding Common Stock.
Seneca has sole power to vote and to dispose of 713,400 shares
of Common Stock (including 93,417 shares issuable upon the exercise of the
Series D Warrants), representing approximately 4.7% of the outstanding Common
Stock.
Marilyn Rubenstein, has sole power to vote and to dispose of
2,382 shares of Common Stock (including 1,333 shares issuable upon the exercise
of the Series D Warrants), representing approximately 0.02% 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 2,426,907 shares of Common Stock (including 373,672
shares issuable upon the exercise of the Series D Warrants), representing
approximately 15.8% 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 1,729,364 shares of Common Stock (including 280,255 shares issuable upon the
exercise of the Series D Warrants), representing approximately 11.3% of the
outstanding Common Stock.
Woodland Partners has sole power to vote and to dispose of
402,733 shares of Common Stock (including 93,417 shares issuable upon the
exercise of the Series D Warrants), representing approximately 2.7% of the
outstanding Common Stock.
Applegreen has sole power to vote and to dispose of 130,163
shares of Common Stock (including 23,354 shares issuable upon the exercise of
the Series D Warrants), representing approximately 0.9% 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.
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 shares
of Common Stock of the Issuer by the Reporting Persons identified in Item 2 of
this Schedule 13D which were effected during the prior sixty days from April 13,
2004:
CUSIP No. 64121N109 13D Page 22 of 24 Pages
Number Number of Shares
of Shares of of Series E
Series D Preferred Number of Shares Preferred Stock Number of Shares
Stock Exchanged of Common Stock Exchanged By of Common Stock
Name of Shareholder Date By Holder Received by Holder Holder Received by Holder
------------------- ---- ------------------ ------------------ ---------------- ------------------
Wheatley Partners II, 04/13/04 -- -- 94,339 235,848
L.P.
Wheatley Partners, L.P. 04/13/04 -- -- 86,792 216,980
Wheatley Foreign 04/13/04 -- -- 7,547 18,868
Partners, L.P.
Barry Rubenstein 04/13/04 495 1,049 47,169 117,923
Irwin Lieber 04/13/04 34,869 73,468 165,094 412,735
Barry Fingerhut 04/13/04 34,869 73,468 165,094 412,735
Seth Lieber 04/13/04 -- -- 11,792 29,480
Jonathan Lieber 04/13/04 -- -- 11,792 29,480
Woodland Venture Fund 04/13/04 69,379 146,938 212,264 530,660
Seneca Ventures 04/13/04 34,869 73,468 165,094 412,735
Woodland Partners 04/13/04 34,869 73,468 94,339 235,848
Brookwood Partners, 04/13/04 -- -- 117,924 294,810
L.P.
Applegreen Partners 04/13/04 8,672 18,366 35,377 88,443
Marilyn Rubenstein 04/13/04 495 1,049 -- --
-------------------------------
(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.
CUSIP No. 64121N109 13D Page 23 of 24 Pages
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: April 29, 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
/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
CUSIP No. 64121N109 13D Page 24 of 24 Pages
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).