UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 2)(1)
ONLINE RESOURCES CORPORATION
(Name of Issuer)
COMMON STOCK, $0.0001 PAR VALUE
(Title of Class of Securities)
68273G 10 1
(CUSIP Number)
Wheatley Partners II, L.P.
80 Cuttermill Road, Suite 311
Great Neck, New York 11021
Telephone (516) 773-1024
with a copy to:
Michael R. Reiner, Esq.
Morrison Cohen Singer & Weinstein, LLP
750 Lexington Avenue
New York, New York 10022
Telephone (212) 735-8600
(Name, Address and Telephone Number of Persons
Authorized to Receive Notices and Communications)
June 1, 2002
(Date of Event which Requires Filing 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 Rule 13d-1(e), 13d-1(f) or 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 Rule 13d-7(b) for other
parties to whom copies are to be sent.
----------
(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).
Page 1 of 15
(Continued on following page(s))
CUSIP No. 68273G 10 1 13D
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1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
Wheatley Partners II, L.P.
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group*
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds*
WC, OO
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required Pursuant
to Item 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
New York
--------------------------------------------------------------------------------
7 Sole Voting Power
77,259 shares 0.6%
--------------------------------------------------------
Number of 8 Shared Voting Power
Shares
Beneficially 0 shares 0%
Owned by --------------------------------------------------------
Each 9 Sole Dispositive Power
Reporting
Person 77,259 shares 0.6%
With --------------------------------------------------------
10 Shared Dispositive Power
0 shares 0%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
77,259 shares
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes
Certain Shares* |_|
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0.6%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 2 of 15
CUSIP No. 68273G 10 1 13D
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1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
Applewood Capital 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 Item 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 0 shares 0%
Owned by --------------------------------------------------------
Each 9 Sole Dispositive Power
Reporting
Person 0 shares 0%
With --------------------------------------------------------
10 Shared Dispositive Power
0 shares 0%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
0 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%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
CO
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 3 of 15
CUSIP No. 68273G 10 1 13D
--------------------------------------------------------------------------------
1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
Irwin Lieber
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group*
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds*
PF, OO
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required Pursuant
to Item 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
United States
--------------------------------------------------------------------------------
7 Sole Voting Power
14,256 shares 0.1%
--------------------------------------------------------
Number of 8 Shared Voting Power
Shares
Beneficially 433,679 shares 3.1%
Owned by --------------------------------------------------------
Each 9 Sole Dispositive Power
Reporting
Person 14,256 shares 0.1%
With --------------------------------------------------------
10 Shared Dispositive Power
433,679 shares 3.1%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
447,935 shares
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes
Certain Shares* |_|
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
3.2%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 4 of 15
CUSIP No. 68273G 10 1 13D
--------------------------------------------------------------------------------
1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
Barry Rubenstein
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group*
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds*
OO
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required Pursuant
to Item 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
United States
--------------------------------------------------------------------------------
7 Sole Voting Power
0 shares 0%
--------------------------------------------------------
Number of 8 Shared Voting Power
Shares
Beneficially 447,935 shares 3.2%
Owned by --------------------------------------------------------
Each 9 Sole Dispositive Power
Reporting
Person 0 shares 0%
With --------------------------------------------------------
10 Shared Dispositive Power
447,935 shares 3.2%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
447,935 shares
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes
Certain Shares* |_|
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
3.2%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 5 of 15
CUSIP No. 68273G 10 1 13D
--------------------------------------------------------------------------------
1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
Barry Fingerhut
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group*
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds*
PF, OO
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required Pursuant
to Item 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
United States
--------------------------------------------------------------------------------
7 Sole Voting Power
28,512 shares 0.2%
--------------------------------------------------------
Number of 8 Shared Voting Power
Shares
Beneficially 443,679 shares 3.1%
Owned by --------------------------------------------------------
Each 9 Sole Dispositive Power
Reporting
Person 28,512 shares 0.2%
With --------------------------------------------------------
10 Shared Dispositive Power
443,679 shares 3.1%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
462,191 shares
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes
Certain Shares* |_|
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
3.3%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 6 of 15
CUSIP No. 68273G 10 1 13D
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1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
Seth Lieber
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group*
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds*
OO
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required Pursuant
to Item 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
United States
--------------------------------------------------------------------------------
7 Sole Voting Power
0 shares 0%
--------------------------------------------------------
Number of 8 Shared Voting Power
Shares
Beneficially 77,259 shares 0.6%
Owned by --------------------------------------------------------
Each 9 Sole Dispositive Power
Reporting
Person 0 shares 0%
With --------------------------------------------------------
10 Shared Dispositive Power
77,259 shares 0.6%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
77,259 shares
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes
Certain Shares* |_|
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0.6%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 7 of 15
CUSIP No. 68273G 10 1 13D
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1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
Jonathan Lieber
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group*
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds*
OO
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required Pursuant
to Item 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
United States
--------------------------------------------------------------------------------
7 Sole Voting Power
0 shares 0%
--------------------------------------------------------
Number of 8 Shared Voting Power
Shares
Beneficially 77,259 shares 0.6%
Owned by --------------------------------------------------------
Each 9 Sole Dispositive Power
Reporting
Person 0 shares 0%
With --------------------------------------------------------
10 Shared Dispositive Power
77,259 shares 0.6%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
77,259 shares
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes
Certain Shares* |_|
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0.6%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 8 of 15
CUSIP No. 68273G 10 1 13D
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1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
Woodland Partners
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group*
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds*
WC, OO
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required Pursuant
to Item 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
New York
--------------------------------------------------------------------------------
7 Sole Voting Power
14,256 shares 0.1%
--------------------------------------------------------
Number of 8 Shared Voting Power
Shares
Beneficially 0 shares 0%
Owned by --------------------------------------------------------
Each 9 Sole Dispositive Power
Reporting
Person 14,256 shares 0.1%
With --------------------------------------------------------
10 Shared Dispositive Power
0 shares 0%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
14,256 shares
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes
Certain Shares* |_|
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0.1%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 9 of 15
CUSIP No. 68273G 10 1 13D
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1 Names of Reporting Persons
I.R.S. Identification Nos. of Above Persons (Entities Only)
Marilyn Rubenstein
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group*
(a) |_|
(b) |_|
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds*
OO
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required Pursuant
to Item 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
United States
--------------------------------------------------------------------------------
7 Sole Voting Power
0 shares 0%
--------------------------------------------------------
Number of 8 Shared Voting Power
Shares
Beneficially 14,256 shares 0.1%
Owned by --------------------------------------------------------
Each 9 Sole Dispositive Power
Reporting
Person 0 shares 0%
With --------------------------------------------------------
10 Shared Dispositive Power
14,256 shares 0.1%
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned By Each Reporting Person
14,256 shares
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes
Certain Shares* |_|
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0.1%
--------------------------------------------------------------------------------
14 Type of Reporting Person*
IN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 10 of 15
The following statement, dated June 1, 2002, constitutes Amendment No. 2
to the Schedule 13D filed by the undersigned (the "Schedule 13D"), regarding the
reporting persons ownership of certain securities of Online Resources
Corporation (the "Issuer").
ITEM 2. Identity and Background.
Item 2 is hereby amended and restated as follows:
Items 2(a), 2(b), 2(c) and 2(f). This Statement is jointly filed by the
following entities (collectively referred to as the "Reporting Persons"):
o Wheatley Partners II, L.P., a New York limited partnership
("Wheatley Partners II");
o Irwin Lieber, a United States citizen;
o Barry Fingerhut, a United States citizen;
o Seth Lieber, a United States citizen;
o Jonathan Lieber, a United States citizen;
o Woodland Partners, a New York general partnership ("Woodland
Partners");
o Barry Rubenstein, a United States citizen;
o Marilyn Rubenstein, a United States citizen;
The principal business of each of Wheatley Partners II and Woodland
Partners is investing.
Messrs. Barry Rubenstein, Irwin Lieber, Barry Fingerhut, Seth Lieber and
Jonathan Lieber are general partners of Wheatley Partners II. The principal
place of business of Wheatley Partners II, Messrs. Irwin Lieber, Barry
Fingerhut, Seth Lieber and Jonathan Lieber is 80 Cuttermill Road, Suite 311,
Great Neck, New York 11021.
Barry Rubenstein is a general partner of Woodland Partners. Marilyn
Rubenstein is a general partner of Woodland Partners and the spouse of Mr.
Rubenstein. The principal place of business of each of Woodland Partners, Mr.
Rubenstein and Mrs. Rubenstein is 68 Wheatley Road, Brookville, New York 11545.
Messrs. Barry Rubenstein, Irwin Lieber and Barry Fingerhut are
shareholders, officers and directors of InfoMedia Associates, Ltd.
("InfoMedia"). Messrs. Seth Lieber and Jonathan Lieber are shareholders of
InfoMedia. InfoMedia is a general partner of each of 21st Century Communications
Partners, L.P. ("21st Century"), 21st Century Communications T-E Partners, L.P.
("T-E") and 21st Century Communications Foreign Partners, L.P. ("Foreign").
Effective July 1, 2001, Applewood Capital Corp. ceased to be a general
partner of Wheatley Partners II.
Item 2(d) During the last five years, none of the Reporting Persons has
been convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors).
Page 11 of 15
Item 2(e) During the last five years, none of the Reporting Persons has
been party to a civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result of such proceeding was or is subject to a
judgment, decree or final order enjoining future violations of, or prohibiting
or mandating activities subject to, federal or state securities laws or finding
any violation with respect to such laws.
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 13,549,500 shares of Common Stock outstanding as reported
by the Issuer in its Form 10-Q for the quarter ended March 31,
2002), of outstanding shares of Common Stock owned beneficially by
each reporting person named in Item 2, as of June 1, 2002.
Shares of Common Percentage of Shares
Stock Beneficially of Common Stock
Name Owned(2) Beneficially Owned(2)
---- -------- ---------------------
Wheatley Partners II, L.P. 77,259(3) 0.6%
Applewood Capital Corp. 0 0%
Irwin Lieber 447,935(3),(4),(5),(6) 3.2%
Barry Rubenstein 447,935(3),(4),(5),(7) 3.2%
Barry Fingerhut 462,191(3),(4),(5),(8) 3.3%
Seth Lieber 77,259(3),(4) 0.6%
Jonathan Lieber 77,259(3),(4) 0.6%
Woodland Partners 14,256(8) 0.1%
Marilyn Rubenstein 14,256(4),(8) 0.1%
----------
(2) Includes shares of Common Stock issuable upon the exercise of the 1996
Warrants and the Additional Warrants.
(3) Includes 71,284 shares issuable upon the exercise of the 1996 Warrants and
5,975 shares issuable upon the exercise of the Additional Warrants.
(4) The reporting person disclaims beneficial ownership of these securities
except to the extent of his/her/its equity interest therein.
(5) Includes 241,684 shares issuable upon the exercise of the 1996 Warrants
owned by 21st Century. Includes 82,259 shares issuable upon the exercise
of the 1996 Warrants owned by T-E. Includes 32,477 shares issuable upon
the exercise of the 1996 Warrants owned by Foreign.
(6) Includes 11,880 shares of Common Stock owned by Irwin Lieber and 2,376
shares issuable upon the exercise of the Additional Warrants owned by
Irwin Lieber.
Page 12 of 15
(7) Includes 11,880 shares of Common Stock owned by Woodland Partners and
2,376 shares issuable upon the exercise of the Additional Warrants owned
by Woodland Partners.
(8) Includes 23,760 shares of Common Stock owned by Barry Fingerhut and 4,752
shares issuable upon the exercise of the Additional Warrants owned by Mr.
Fingerhut.
(b) Wheatley Partners II has sole power to vote and to dispose of 77,259
shares of Common Stock (including 71,284 shares issuable upon the exercise of
the 1996 Warrants and 5,975 shares issuable upon the exercise of the Additional
Warrants), representing approximately 0.6% of the outstanding shares of Common
Stock.
By virtue of being a general partner of Wheatley Partners II and Woodland
Partners, and a shareholder, officer and director of Infomedia, Barry Rubenstein
may be deemed to have shared power to vote and to dispose of 447,935 shares of
Common Stock (including 427,704 shares issuable upon the exercise of the 1996
Warrants and 8,351 shares issuable upon the exercise of the Additional
Warrants), representing approximately 3.2% of the outstanding shares of Common
Stock.
Irwin Lieber has sole power to vote and to dispose of 14,256 shares of
Common Stock (including 2,376 shares issuable upon the exercise of the
Additional Warrants), representing approximately 0.1% of the outstanding shares
of Common Stock. By virtue of being a general partner Wheatley Partners II, and
a shareholder, officer and director of Infomedia, Irwin Lieber may be deemed to
have shared power to vote and to dispose of 433,679 shares of Common Stock
(including 427,704 shares issuable upon the exercise of the 1996 Warrants and
5,975 shares issuable upon the exercise of the Additional Warrants),
representing approximately 3.1% of the outstanding shares of Common Stock.
Barry Fingerhut has sole power to vote and to dispose of 28,512 shares of
Common Stock (including 4,752 shares issuable upon the exercise of the
Additional Warrants), representing approximately 0.2% of the outstanding shares
of Common Stock. By virtue of being a general partner of Wheatley Partners II,
and a shareholder, officer and director of Infomedia, Barry Fingerhut may be
deemed to have shared power to vote and to dispose of 433,679 shares of Common
Stock (including 427,704 shares issuable upon the exercise of the 1996 Warrants
and 5,975 shares issuable upon the exercise of the Additional Warrants),
representing approximately 3.1% of the outstanding shares of Common Stock.
By virtue of being a general partner of Wheatley Partners II, Seth Lieber
may be deemed to have shared power to vote and to dispose of 77,259 shares of
Common Stock (including 71,284 shares issuable upon the exercise of the 1996
Warrants and 5,975 shares issuable upon the exercise of the Additional
Warrants), representing approximately 0.6% of the outstanding shares of Common
Stock.
By virtue of being a general partner of Wheatley Partners II, Jonathan
Lieber may be deemed to have shared power to vote and to dispose of 77,259
shares of Common Stock (including 71,284 shares issuable upon the exercise of
the 1996 Warrants and 5,975 shares issuable upon the exercise of the Additional
Warrants), representing approximately 0.6% of the outstanding shares of Common
Stock.
Page 13 of 15
Woodland Partners has sole power to vote and to dispose of 14,256 shares
of Common Stock (including 2,376 shares issuable upon the exercise of the
Additional Warrants), representing approximately 0.1% of the outstanding shares
of Common Stock.
Marilyn Rubenstein, by virtue of being a general partner of Woodland
Partners, may be deemed to have shared power to vote and to dispose of 14,256
shares of Common Stock (including 2,376 shares issuable upon the exercise of the
Additional Warrants), representing approximately 0.1% of the outstanding shares
of Common Stock.
(c) The following is a description of all transactions in shares of Common
Stock of the Issuer by the Reporting Persons identified in Item 2 of this
Schedule 13D effected from July 12, 2001 through June 1, 2002:
On July 12, 2001, Wheatley Partners II sold 147,230 shares of the Common
Stock of the Issuer at $2.0068 per share, and on July 13, 2001, Wheatley
Partners II sold 50,000 shares of the Common Stock of the Issuer at $1.975 per
share. The shares of Common Stock were sold pursuant to open market sales.
On June 1, 2002, the Series C Warrants were no longer exercisable.
Wheatley Partners II, 21st Century, T-E and Foreign owned 38,426, 105,727,
35,965 and 14,226 Series C Warrants, respectively.
(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) Effective November 13, 2001, as a result of the Issuer reporting an
increase in the number of shares of Common Stock outstanding (13,376,890 shares
of Common Stock outstanding as reported by the Issuer in its Form 10-Q for the
quarter ended September 30, 2001), the Reporting Persons ceased to be the
beneficial owners of more than five percent (5%) of the Common Stock of the
Issuer.
Page 14 of 15
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 statement is true, complete and correct.
Dated: July 8, 2002 WHEATLEY PARTNERS II, L.P.
By: /s/ Irwin Lieber
------------------------------------
Irwin Lieber, a General Partner
APPLEWOOD CAPITAL CORP.
By: /s/ Barry Rubenstein
------------------------------------
Barry Rubenstein, President
/s/ Barry Rubenstein
----------------------------------------
Barry Rubenstein
/s/ Irwin Lieber
----------------------------------------
Irwin Lieber
/s/ Barry Fingerhut
----------------------------------------
Barry Fingerhut
/s/ Seth Lieber
----------------------------------------
Seth Lieber
/s/ Jonathan Lieber
----------------------------------------
Jonathan Lieber
WOODLAND PARTNERS
By: /s/ Barry Rubenstein
------------------------------------
Barry Rubenstein, a General Partner
/s/ Marilyn Rubenstein
----------------------------------------
Marilyn Rubenstein
Page 15 of 15