As filed with the Securities and Exchange Commission on March 31, 2000
SEC Registration No. ______
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
---------------------------------
FORM S-3
Registration Statement
Under the Securities Act of 1933
---------------------------------
NEOMEDIA TECHNOLOGIES, INC.
---------------------------------
(Name of Registrant in its charter)
DELAWARE 36-3680347
- ----------------------------- ------------------
(State or jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2201 SECOND STREET, SUITE 600
FORT MYERS, FLORIDA 33901
941-337-3434
-----------------------------------------------------------------
(Address, including zip code, and telephone number, including area
code, of Registrant's principal executive offices)
CHARLES W. FRITZ
2201 SECOND STREET, SUITE 600
FORT MYERS, FLORIDA 33901-3083
941-337-3434
941-337-3668 - FAX
-------------------------------------------------------
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
WITH COPIES TO:
JOHN M. KLIMEK, ESQ. MARIANNE LEPERA, ESQ.
MERRICK & KLIMEK, P.C. NEOMEDIA TECHNOLOGIES, INC.
401 SOUTH LASALLE, SUITE 1302 2201 SECOND STREET
CHICAGO, ILLINOIS 60605 SUITE 600
(312) 294-6044 FORT MYERS, FLORIDA 33901
(312) 294-6045 FAX 941-337-3434
941-337-3668 FAX
<PAGE>
APPROXIMATE DATE OF PROPOSED SALE TO PUBLIC: From time to time following the
effective date of this Registration
Statement
If the only securities being registered on this form are being offered
pursuant to dividend or interest reinvestment plans, please check the following
box. [ ]
If any of the securities being registered on this Form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or interest
reinvestment plans, check the following box. [X]
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering: [ ]
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering: [ ]
If delivery of the prospectus is expected to be made pursuant to Rule 434,
check the following box: [ ]
<PAGE>
(FACE SHEET CONTINUED)
<TABLE>
<CAPTION>
CALCULATION OF REGISTRATION FEE
- --------------------------------------------------------------------------------------------------------
TITLE OF SHARES AMOUNT TO BE PROPOSED MAXIMUM PROPOSED MAXIMUM AMOUNT OF
TO BE REGISTERED REGISTERED PRICE PER UNIT(2)(3) AGGREGATE OFFERING PRICE REGISTRATION FEE
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Common Stock 2,825,762(1) $8.75 $24,725,417 $6,873.67
- --------------------------------------------------------------------------------------------------------
</TABLE>
(1) Represents shares of common stock previously issued by the Company in
non-public transactions and shares of common stock issuable upon exercise of
warrants issued in non-public transactions. Shares of common stock are being
registered for resale by the holders hereof.
(2) Estimated solely for purposes of computing the registration fee pursuant to
Rule 457.
(3) In accordance with Rule 457(c), the price represents the average of the high
and low prices of the Registrant's common stock on March 29, 2000.
<PAGE>
[FRONT COVER OF PROSPECTUS]
NEOMEDIA TECHNOLOGIES, INC.
The stockholders of NeoMedia Technologies, Inc. identified on pages 9 and
10 may offer and sell the shares covered by this Prospectus from time to time.
The shares covered by this Prospectus include shares to be received by the
stockholders upon the exercise of warrants-rights to purchase common stock. The
selling stockholders will receive all of the proceeds from the sales of the
shares and will pay all commissions and selling expenses, if any, on the sale of
the shares. We will pay the expense of registration of the sale of the shares.
We will receive the proceeds from the exercise of the warrants if and when such
warrants are exercised. The holders of the warrants are under no obligation to
exercise the warrants and the selling stockholders are under no obligation to
sell their shares.
Our common stock trades on the Nasdaq SmallCap Market under the symbol
"NEOM". On March 20, 2000, the last reported sale price of our common stock on
the Nasdaq SmallCap Market was $10.00 per share.
BEGINNING ON PAGE ONE, WE HAVE LISTED SEVERAL "RISK FACTORS" WHICH YOU
SHOULD CONSIDER. YOU SHOULD READ THE ENTIRE PROSPECTUS CAREFULLY BEFORE YOU MAKE
YOUR INVESTMENT DECISION.
The Securities and Exchange Commission and state regulatory authorities
have not approved or disapproved of these securities, or determined if this
Prospectus is truthful or complete. Any representation to the contrary is a
criminal offense.
The Date of this Prospectus is March 31, 2000
<PAGE>
TABLE OF CONTENTS
Page No.
ABOUT THIS PROSPECTUS............................................. 3
RISK FACTORS...................................................... 3
Risk Factors Relating to the Company
We Have Sustained Losses in the Past and We Expect to Sustain Losses
in the Future............................................... 3
We may not be Able to Obtain Additional Financing that We need to
Continue to fund Operations Long Term....................... 3
We are Uncertain of the Success of ASP Business Units Products and
Services.................................................... 4
Our Quarterly Results may Fluctuate Due to Certain Marketing and
Competitive Factors Over which we have Little or No Control. 4
We Depend on the Resale of Software and Equipment Resales
for Revenue................................................. 4
We may not be Able to Retain Our Key Executives, Sales Personnel
and Research and Development Personnel...................... 4
Some of Our Products Depend upon License Rights
from Third Parties and there can be No Assurance that We can
Adequately Protect those Rights............................. 5
We Face Intense Competition in the Computer Software and
Hardware Field.............................................. 5
We Face the Risk that Changes in the Technology will make Our
Products and Services Obsolete.............................. 5
Our Intellectual Property Rights do not Provide Complete
Protection from Competitors................................. 5
We are Exposed to Product Liability Claims for which Insurance
Coverage is Limited, Potentially Inadequate and in Some Cases
Unavailable................................................. 6
Risk Factors Relating To This Offering
Officers and Directors Control most Corporate Action........ 6
The Book Value of Our Common Stock is Less Than the Current
Market Price................................................ 6
The Price of NeoMedia Common Stock has been Highly Volatile
Due to Several Factors which will Continue to Effect the
Price of Our Stock.......................................... 6
NeoMedia and the Price of NeoMedia Shares may be Adversely
Effected by the Public Sale of a Significant Number of the Shares
Eligible for Future Sale.................................... 7
An Investor's Ability to Trade Our Common Stock may be
Limited by Trading Volume................................... 7
We may be Removed from the Nasdaq SmallCap Market if We
Fail to Meet Certain Maintenance Criteria................... 7
FORWARD LOOKING STATEMENTS........................................ 8
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Page No.
USE OF PROCEEDS................................................... 8
SELLING STOCKHOLDERS.............................................. 8
WHERE YOU CAN FIND MORE INFORMATION............................... 12
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE................... 12
PLAN OF DISTRIBUTION.............................................. 13
LEGAL MATTERS..................................................... 13
EXPERTS........................................................... 13
RECENT DEVELOPMENTS............................................... 14
COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES
ACT LIABILITIES.................................................. 14
You should rely only on the information to which we have referred you or
provided in this Prospectus or any prospectus supplement. We have not authorized
anyone else to provide you with different information. We are not making an
offer of these securities in any state where the offer is not permitted. You
should not assume that the information in this Prospectus or any prospectus
supplement is accurate as of any date other than the date on the front of those
documents.
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ABOUT THIS PROSPECTUS
NeoMedia Technologies, Inc. provides computer software and consulting
services. The Company's principal business address is 2201 Second Street, Suite
600, Fort Myers, Florida 33901, (941) 337-3434. You can find out more about the
Company by reading the Company's Form 10-KSB Annual Report for the year ended
December 31, 1999, which is incorporated by reference in this Prospectus. (See
"Incorporation of Certain Documents by Reference"). This Prospectus is part of a
Registration Statement that we filed with the Securities and Exchange
Commission. You should read both this Prospectus and any prospectus supplement
together with the information described under the heading "Where You Can Find
More Information." You should not assume that the information in this Prospectus
or any prospectus supplement is accurate as of any date other than the date on
the front of those documents.
RISK FACTORS
YOU SHOULD CONSIDER CAREFULLY THE FOLLOWING RISK FACTORS, ALONG WITH THE
OTHER INFORMATION CONTAINED OR INCORPORATED BY REFERENCE IN THIS PROSPECTUS, IN
DECIDING WHETHER TO INVEST IN OUR SHARES. THESE FACTORS, AMONG OTHERS, MAY CAUSE
ACTUAL RESULTS, EVENTS OR PERFORMANCE TO DIFFER MATERIALLY FROM THOSE EXPRESSED
IN ANY FORWARD-LOOKING STATEMENTS MADE IN THIS PROSPECTUS.
Risk Factors Relating to the Company
1. WE HAVE SUSTAINED LOSSES IN THE PAST AND WE EXPECT TO SUSTAIN LOSSES IN
THE FUTURE. We incurred a loss of $10,472,000 in 1999, $11,495,000 in 1998,
$5,973,000 in 1997, $3,076,000 in 1996, and $1,131,000 in 1995. Our accumulated
losses from operations were approximately $32,466,000 on December 31, 1999 and
we had a working capital deficit of approximately $1,667,000 and approximately
$2,466,000 in unrestricted cash balances as of that date. We expect operating
losses to continue as we continue to develop our products and conduct additional
research and development.
2. WE MAY NOT BE ABLE TO OBTAIN ADDITIONAL FINANCING THAT WE MAY NEED TO
CONTINUE TO FUND OPERATIONS LONG TERM. We have raised approximately $12.4
million in the first quarter of 2000 to continue to finance our operations for
the next twelve months. We also have an agreement from an unrelated third party
to invest an additional $7.5 million in the Company through the purchase of
unissued shares of common stock. Any failure to raise additional long term
financing will materially adversely affect us. We anticipated that the proceeds
from the Public Offering in 1996, together with projected cash flow from
operations, would be sufficient to fund operations during the twelve months
following the consummation of the Public Offering. However, the proceeds from
the Public Offering, together with the cash flow from operations, were
sufficient to fund our operations for approximately nine months. From September,
1997, through December 18, 1997, we received net proceeds of approximately $12.9
million from the partial exercise of the warrants, which was used to fund
operations. During 1999 we raised approximately $10.4 million through the sale
in private placements of common stock, warrants to
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purchase common stock and convertible debt instruments. We may not be able to
raise additional capital in the future to sustain long term operations. If we
are not successful in our operations, your investment in NeoMedia could become
worthless.
3. WE ARE UNCERTAIN OF THE SUCCESS OF OUR ASP BUSINESS UNITS PRODUCTS AND
SERVICES. We provide products and services that provide a seamless link from
printed material to the internet. There is no assurance that:
this ASP business unit will be profitable;
our current product offerings will not be adversely affected by us
focusing our attentions and resources in the ASP business unit ; or
the products we develop will obtain market acceptance
4. OUR QUARTERLY RESULTS MAY FLUCTUATE DUE TO CERTAIN MARKET CONDITIONS AND
COMPETITIVE FACTORS OVER WHICH WE HAVE LITTLE OR NO CONTROL. The factors listed
below, some of which we cannot control, may cause our revenues and results of
operations to fluctuate significantly:
the extent to which our products gain market acceptance;
the timing and size of customer purchases; and
introductions of products by competitors.
5. WE DEPEND ON THE RESALE OF SOFTWARE AND EQUIPMENT RESALES FOR REVENUE.
We derived 78% of our revenues in 1999 from the resale of computer software and
technology equipment, 72% in 1998, 78% in 1997, 83% in 1996 and 76% in 1995. A
loss or a reduction of this revenue would have a materially adverse affect on
us. There is no assurance that:
the market for the products and services we offer will continue;
we will be able to continue to be successful in marketing these
products due to competition and other factors;
we will continue to be able to obtain short-term financing for the
purchase of the products that we resell; or
our relationship with companies whose products and services we sell
will continue including relationships with Sun Microsystems Computer
Company, IBM Corporation and Xerox Corporation.
6. WE MAY NOT BE ABLE TO RETAIN OUR KEY EXECUTIVES, SALES PERSONNEL AND
RESEARCH AND DEVELOPMENT PERSONNEL. As a relatively new company, our success
depends on the services of key employees in administration, sales, and research
and development. The loss of the services of one or more of such employees could
have a material
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adverse affect on us. We compete with many other companies in the technology
market for qualified professional, technical, and managerial personnel.
7. SOME OF OUR PRODUCTS DEPEND UPON LICENSE RIGHTS FROM THIRD PARTIES AND
THERE CAN BE NO ASSURANCE THAT THE RIGHTS WE HAVE UNDER THESE LICENSING
AGREEMENTS ARE SUFFICIENT OR THAT WE CAN ADEQUATELY PROTECT THOSE RIGHTS. Loss
of, or interference with these rights could have a material adverse affect on
us.
8. WE FACE INTENSE COMPETITION IN THE COMPUTER SOFTWARE AND HARDWARE FIELD.
The markets in which we compete are highly competitive and rapidly changing. A
number of companies offer products and services similar to those offered by us,
and target the same customers as us. Many of these companies have substantially
greater financial, marketing and technical resources and have greater channels
of distribution for their products and services. We anticipate that competition
within these markets will increase.
9. WE FACE THE RISK THAT CHANGES IN TECHNOLOGY WILL MAKE OUR PRODUCTS AND
SERVICES OBSOLETE. The products and services we sell are subject to rapid
technological change, frequent new product and service introductions, evolving
industry standards and changes in customer demands. There can be no assurance
that:
we will be successful in developing and marketing new product
enhancements, and new products or services that respond to
technological change or evolving industry standards;
we will not experience difficulties that could delay or prevent the
success or development, introduction and marketing of these
products, enhancements and services; or
any new product, product enhancement and services we may introduce
will achieve market acceptance.
Our failure to develop and introduce new products, product enhancements or
services, or to gain customer acceptance of such products, product enhancements
or services in a timely fashion could materially adversely affect us.
10. OUR INTELLECTUAL PROPERTY RIGHTS DO NOT PROVIDE COMPLETE PROTECTION
FROM COMPETITORS. We presently have intellectual property patents, as well as
patent applications pending, with respect to certain proprietary technology. We
have been issued two patents related to linking printed materials to the
internet. There is also no assurance that:
there are no patents or patents pending by competitors for technology
similar to ours;
competitors will not independently develop or patent technologies
that are substantially equivalent or superior to our technologies;
third parties will not assert infringement claims against us or
against products and technologies which we license, or have the
rights to use, from third parties.
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Any such claims, if proved, could materially adversely affect us.
11. WE ARE EXPOSED TO PRODUCT LIABILITY CLAIMS FOR WHICH INSURANCE COVERAGE
IS LIMITED, POTENTIALLY INADEQUATE AND IN SOME CASES UNAVAILABLE. Many of our
engagements involve projects that are critical to the operations of our clients'
businesses. Any failure in a client's information system could result in a claim
for substantial damages against us, regardless of our responsibility for such
failure. We could, therefore, be subject to claims in connection with the
products and services that we sell. We currently maintain some product liability
and errors and omissions insurance. There can be no assurance that:
we have adequately, or at all, contractually limited our liability
for such claims;
we would have sufficient resources to satisfy any liability resulting
from any such claim;
our coverage, if available, will be adequate in term and scope to
protect us against material adverse effects in the event of a
successful claim; or
our insurer will not disclaim coverage as to any future claim.
The successful assertion of one or more large claims against us that exceed
available insurance coverage could adversely affect us.
Risk Factors Relating to this Offering
1. OFFICERS AND DIRECTORS CONTROL MOST CORPORATE ACTION. NeoMedia's
principal stockholders, acting together, may be able to control or exercise
significant influence over all matters requiring stockholder approval, including
the election of directors and the approval of significant corporate actions.
Other shareholders have little or no control or influence over such matters.
2. THE BOOK VALUE OF OUR COMMON STOCK IS LESS THAN THE CURRENT MARKET
PRICE. Based on our Stockholders' Equity as of December 31, 1999, and the
trading price of our common stock as of the date of this Prospectus, an investor
will experience immediate and substantial dilution between the book value per
share of their common stock, and the purchase price of the shares.
3. THE PRICE OF NEOMEDIA COMMON STOCK HAS BEEN HIGHLY VOLATILE DUE TO
SEVERAL FACTORS WHICH WILL CONTINUE TO EFFECT THE PRICE OF OUR STOCK. Our common
stock has traded as low as $4.03 and as high as $15.19 between March 31, 1999
and March 31, 2000. Some of the factors leading to this volatility include:
price and volume fluctuating in the stock market at large which do
not relate to our operating performance;
fluctuations in our operating results;
announcement of purchases or licenses of new technology;
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announcements of financing received by us;
developments with respect to patents or proprietary rights;
changes in stock market analysts' recommendations regarding NeoMedia
and other companies in the computer software and hardware industry
generally; and
fluctuations in market demand for and supply of our products.
4. NEOMEDIA AND THE PRICE OF NEOMEDIA SHARES MAY BE ADVERSELY EFFECTED BY
THE PUBLIC SALE OF A SIGNIFICANT NUMBER OF THE SHARES ELIGIBLE FOR FUTURE SALE.
We have granted a large number of warrants-rights to buy our common stock. The
majority of our common stock is freely tradable. Sales of common stock in the
public market including shares issued on exercise of warrants, could materially
adversely affect the market price of our shares. Such sales also may inhibit our
ability to obtain future equity or equity-related financing on acceptable terms.
5. AN INVESTORS' ABILITY TO TRADE OUR COMMON STOCK MAY BE LIMITED BY
TRADING VOLUME. The trading volume in our common stock has been relatively
limited. A consistently active trading market for our shares may not develop.
6. WE MAY BE REMOVED FROM THE NASDAQ SMALLCAP MARKET IF WE FAIL TO MEET
CERTAIN MAINTENANCE CRITERIA. The Nasdaq Stock Market has net capital surplus
and stock price maintenance criterion for trading on the Nasdaq SmallCap Market.
We currently meet the requirements but our ability to continue to do so will
depend on whether we are able to maintain net tangible assets of at least
$2,000,000 and maintain a minimum stock price of $1.00. The public trading
volume of our common stock and the ability of our stockholders to sell their
shares could be significantly impaired if we fail to meet the maintenance
criteria and are removed from the Nasdaq SmallCap Market. In that case, our
common stock would trade on either the OTC bulletin board, a regional exchange
or in the pink sheets, which would likely result in an even more limited trading
volume.
FOR ALL OF THE AFORESAID REASONS, AND OTHERS WHICH MAY NOT BE SET FORTH
HEREIN, THESE SECURITIES INVOLVE A HIGH DEGREE OF RISK. ANY PERSON CONSIDERING
AN INVESTMENT IN THE SECURITIES OFFERED HEREBY SHOULD BE AWARE OF THESE AND
OTHER FACTORS SET FORTH IN THIS PROSPECTUS. THE SECURITIES SHOULD BE PURCHASED
ONLY BY PERSONS WHO CAN AFFORD A TOTAL LOSS OF THEIR ENTIRE INVESTMENT AND HAVE
NO IMMEDIATE NEED FOR A RETURN OF THEIR INVESTMENT.
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FORWARD LOOKING STATEMENTS
Statements made in this Prospectus or in the documents incorporated by
reference herein that are not statements of historical fact are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, and
Section 21E of the Securities Exchange Act of 1934. A number of risks and
uncertainties, including those discussed under the caption "Risk Factors" above
and the documents incorporated by reference herein could affect such
forward-looking statements and could cause actual results to differ materially
from the statements made. These factors include our ability to:
develop, market and sell products and services for the ASP business
unit
adjust to changes in technology, customer preferences, enhanced
competition and new competitors in the market of linking printed
materials to the internet
protect our proprietary patent rights from infringement or
misappropriation;
maintain or enhance our relationships with business partners and
vendors; and
attract and retain key employees
USE OF PROCEEDS
We will not receive any of the proceeds from the sale of shares by the
selling stockholders. We will receive the exercise price of warrants held by
selling stockholders if and when such warrants are exercised. The proceeds from
such warrant exercises will be used for general corporate purposes.
SELLING STOCKHOLDERS
The following tables sets forth the names of the selling stockholders, the
number of shares of common stock owned beneficially by the selling stockholders
as of March 31, 2000, (including shares which have been acquired by such
stockholders but for which certificates have not yet been issued) and the number
of shares that may be offered pursuant to this Prospectus. The shares are being
registered to permit public secondary trading of the shares, and the selling
stockholders may offer the shares for resale from time to time.
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<TABLE>
<CAPTION>
COMMON STOCK
BEBEFICIALLY COMMON STOCK BENEFICIALLY
OWNED COMMON STOCK OWNED AFTER OFFERING(1)(2)
NAME OF SELLING PRIOR TO COVERED BY THIS --------------------------
STOCKHOLDER OFFERING(1) PROSPECTUS NUMBER PERCENT OF CLASS
--------------- ----------- ---------- ------- ----------------
<S> <C> <C> <C> <C>
Pre IPO AG 140,000 140,000 0 *
Guido Alexander Krass 40,000 40,000 0 *
Pari Holding 30,000 30,000 0 *
Ferman A.G. 105,000(3) 105,000 0 *
Gunther Family Trusts 154,321(4) 154,321 0 *
Starwood Investments 145,391(5) 145,391 0 *
Howard Wilkins 28,710(6) 28,710 0 *
KWC Family Limited 110,000(7) 110,000 0 *
Partnership
Jose and Cecilia Serra 11,000(8) 11,000 0 *
Dan Amerson 45,500(9) 44,000 1,500 *
Henry Ramseur 55,734(10) 55,734 0 *
Micah J. Eldred 13,934(11) 13,934 0 *
John Nauman 16,500(12) 16,500 0 *
Archibald Montgomery 29,334(13) 29,334 0 *
Bill Brodbeck 44,000(14) 44,000 0 *
Brighton Capital Corp. 33,770(15) 33,770 0 *
Arthur McWood 29,334(16) 29,334 0 *
Edward Lau 15,400(17) 15,400 0 *
Chiu Associates 15,400(18) 15,400 0 *
Charlene Dye 15,400(19) 15,400 0 *
Camille Cosby 15,400(20) 15,400 0 *
Robert Chiu 15,400(21) 15,400 0 *
Pan Asian Associates 15,387(22) 15,387 0 *
Bradford & Co. 27,500(23) 27,500 0 *
Kaplan 15,989(24) 15,989 0 *
Intervision 52,982(25) 52,982 0 *
SGA 1,250,000(26) 1,250,000 0 *
Technology Capital Group 10,000(27) 10,000 0 *
Thornhill Capital 435,000(28) 100,000 335,000 1.8%
</TABLE>
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<TABLE>
<CAPTION>
COMMON STOCK
BEBEFICIALLY COMMON STOCK BENEFICIALLY
OWNED COMMON STOCK OWNED AFTER OFFERING(1)(2)
NAME OF SELLING PRIOR TO COVERED BY THIS --------------------------
STOCKHOLDER OFFERING(1) PROSPECTUS NUMBER PERCENT OF CLASS
--------------- ----------- ---------- ------- ----------------
<S> <C> <C> <C> <C>
Wall Street Securities 24,376 24,376 0 *
Vanguard Enterprises, 200,000(29) 200,000 0 *
Ltd.
Lehman Brothers 21,500 21,500 0 *
</TABLE>
* Less than one percent
(1) Beneficial ownership is determined in accordance with the rules of the
Securities and Exchange Commission, and includes generally voting power
and/or investment power with respect to securities. Options to purchase
shares of common stock currently exercisable or exercisable within sixty
(60) days of April 1, 2000 are deemed outstanding for computing the
beneficial ownership percentage of the person holding such options but are
not deemed outstanding for computing the beneficial ownership percentage
of any other person. Except as indicated by footnote, to the knowledge of
NeoMedia, the persons named in the table above have the sole voting and
investment power with respect to all shares of common stock shown as
beneficially owned by them.
(2) Assumes all shares eligible for sale by selling stockholder under this
Prospectus are sold.
(3) Includes 105,000 shares of common stock to be issued upon exercise of
warrants held by Ferman A.G..
(4) Includes 14,030 shares of common stock to be issued upon exercise of
warrants held by the Gunther Family Trusts.
(5) Includes 13,271 shares of common stock to be issued upon exercise of
warrants held by Starwood Investments.
(6) Includes 2,610 shares of common stock to be issued upon exercise of
warrants held by Mr. Wilkins.
(7) Includes 10,000 shares of common stock to be issued upon exercise of
warrants held by The KWC Family Limited Partnership.
(8) Includes 1,000 shares of common stock to be issued upon exercise of
warrants held by the Serras.
(9) Includes 4,000 shares of common stock to be issued upon exercise of
warrants held by Mr. Amerson.
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(10) Includes 5,067 shares of common stock to be issued upon exercise of
warrants held by Dr. Ramseur.
(11) Includes 1,267 shares of common stock to be issued upon exercise of
warrants held by Mr. Eldred.
(12) Includes 1,500 shares of common stock to be issued upon exercise of
warrants held by Mr. Nauman.
(13) Includes 2,667 shares of common stock to be issued upon exercise of
warrants held by Mr. Montgomery.
(14) Includes 4,000 shares of common stock to be issued upon exercise of
warrants held by Mr. Brodbeck.
(15) Includes 3,070 shares of common stock to be issued upon exercise of
warrants held by Brighton Capital Corp.
(16) Includes 2,667 shares of common stock to be issued upon exercise of
warrants held by Mr. McWood.
(17) Includes 1,400 shares of common stock to be issued upon exercise of
warrants held by Mr. Lau.
(18) Includes 1,400 shares of common stock to be issued upon exercise of
warrants held by Chiu Associates.
(19) Includes 1,400 shares of common stock to be issued upon exercise of
warrants held by Ms. Dye.
(20) Includes 1,400 shares of common stock to be issued upon exercise of
warrants held by Ms. Cosby.
(21) Includes 1,400 shares of common stock to be issued upon exercise of
warrants held by Mr. Chiu.
(22) Includes 1,399 shares of common stock to be issued upon exercise of
warrants held by Pan Asian Associates.
(23) Includes 2,500 shares of common stock to be issued upon exercise of
warrants held by Bradford & Co.
(24) Includes 1,454 shares of common stock to be issued upon exercise of
warrants held by Kaplan.
(25) Includes 2,982 shares of common stock to be issued upon exercise of
warrants held by Intervision.
(26) Includes 250,000 shares of common stock to be issued upon exercise of
warrants held by SGA.
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(27) Includes 10,000 shares of common stock to be issued upon exercise of
warrants held by Technology Capital Group.
(28) Includes 100,000 shares of common stock to be issued upon exercise of
warrants held by F.T. Group.
(29) Includes 200,000 shares of common stock to be issued upon exercise of
warrants held by Vanguard Enterprises, Ltd.
WHERE YOU CAN FIND MORE INFORMATION
We file annual, quarterly, and current reports, proxy statements, and other
documents with the Securities and Exchange Commission. You may read and copy any
document we file at the SEC's public reference room at Judiciary Plaza Building,
450 Fifth Street, NW, Room 1024, Washington, D.C. 20549. You should call
1-800-SEC-0330 for more information on the public reference room. The SEC
maintains an internet site at http://www.sec.gov where certain information
regarding issuers (including NeoMedia) may be found. Our web site is
http://www.neom.com.
This Prospectus is part of a registration statement that we filed with the
SEC (Registration No. __________). The registration statement contains more
information than this Prospectus regarding NeoMedia and its common stock,
including certain exhibits and schedules. You can get a copy of the registration
statement from the SEC at the address listed above or from its internet site.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The SEC allows us to "incorporate" into this Prospectus information we file
with the SEC in other documents. This means that we can disclose important
information to you by referring to other documents that contain that
information. The information may include documents filed after the date of this
Prospectus which update and supersede the information you read in this
Prospectus. We incorporate by reference documents listed below, except to the
extent information in those documents is different from the information
contained in this Prospectus, and all future documents filed with the SEC like
Form 10-QSB Quarterly Reports and Form 10-KSB Annual Reports until we terminate
the offering of these shares.
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SEC FILING
(FILE NO. 0-21743) PERIOD/FILING DATE
----------------- ------------------
Annual Report on Form 10-KSB................. Year ended December 31, 1999
Description of common stock contained
in Registration Statements on Form 8-A....... November 18, 1996
You may request a copy of these documents, at no cost, by writing to or
calling:
NeoMedia Technologies, Inc.
2201 Second Street, Suite 600
Fort Myers, Florida 33901-3083
(941) 337-3434
PLAN OF DISTRIBUTION
The selling stockholders may offer their shares at various times in one or
more transactions on the Nasdaq SmallCap Market or any other exchange on which
the shares may be listed or in private transactions.
The shares of common stock are being registered in order to allow the
selling stockholders to sell these shares. No underwriter or broker/dealer has
been engaged by us to assist in the sale of the shares and there is no
obligation that the selling stockholders sell all or any part of the shares
covered by this Prospectus. The selling stockholders may sell their shares at
market prices prevailing at the time of sale, at prices related to such
prevailing market prices, at negotiated prices or at fixed prices.
The selling stockholders will pay all commissions, transfer taxes, and
other expenses associated with the sale of securities by them. The shares are
being registered pursuant to contractual obligations of NeoMedia, and we have
paid the expenses of the preparation of this Prospectus.
LEGAL MATTERS
Merrick & Klimek, P.C. of Chicago, Illinois, our counsel in connection with
the offering, has issued an opinion about the validity of the securities being
offered.
EXPERTS
The consolidated financial statements of NeoMedia and subsidiaries as of
December 31, 1999, and for the year then ended, incorporated by reference herein
and elsewhere in the registration statement have been audited by Arthur Andersen
LLP, independent certified public accountants, as indicated in their report with
respect thereto, and are incorporated by reference herein in reliance upon the
authority of said firm as experts in accounting and auditing in giving said
report.
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The consolidated financial statements of NeoMedia and subsidiaries as of
December 31, 1998, and for the year then ended, have been incorporated by
reference herein and in the registration statement in reliance upon the report
of KPMG LLP, independent certified public accountants, incorporated by reference
herein, and upon the authority of said firm as experts in accounting and
auditing.
The report of KPMG LLP covering the December 31, 1998, consolidated
financial statements contains an explanatory paragraph that states that the
Company's recurring losses from operations and accumulated deficit raise
substantial doubts about the entity's ability to continue as a going concern.
The consolidated financial statements do not include any adjustments that might
result from the outcome of that uncertainty.
RECENT DEVELOPMENTS
During 1999, we raised approximately $10,395,000 through the sale of our
common stock, warrants to purchase our shares and through the issuance of
convertible debt, all in private transactions.
During the first quarter of 2000, we have raised approximately $12,372,000
through the sale of our common stock and exercises of stock warrants and
options, all in private transactions. We also have an agreement from an
unrelated third party to invest an additional $7.5 million in the Company
through the purchase of unissued shares of common stock.
COMMISSION POSITION ON INDEMNIFICATION
FOR SECURITIES ACT LIABILITIES
As permitted by the Delaware General Corporation Law ("DGCL"), we have
included in our Certificate of Incorporation a provision to eliminate the
personal liability of our directors for monetary damages for breach or alleged
breach of their fiduciary duties as directors, except for liability (i) for any
breach of the director's duty of loyalty to NeoMedia or its stockholders, (ii)
for acts or omissions not in good faith or which involved intentional misconduct
or a knowing violation of law, (iii) in respect of certain unlawful dividend
payments or stock redemptions or repurchases, as provided in Section 174 of the
DGCL, or (iv) for any transaction from which the director derived an improper
personal benefit. The effect of this provision is to eliminate the rights of
NeoMedia and its stockholders (through stockholders' derivative suits on behalf
of NeoMedia) to recover monetary damages against a director for breach of the
fiduciary duty of care as a director except in the situations described in (i)
through (iv) above. This provision does not limit nor eliminate the rights of
NeoMedia or any stockholder to seek non-monetary relief such as an injunction or
rescission in the event of a breach of a director's duty of care. These
provisions will not alter the liability of directors under federal securities
laws.
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The Certificate of Incorporation and the by-laws of NeoMedia provide that
we are required and permitted to indemnify our officers and directors, employees
and agents under certain circumstances. In addition, if permitted by law, we are
required to advance expenses to our officers and directors as incurred in
connection with proceedings against them in their capacity as a director or
officer for which they may be indemnified upon receipt of an undertaking by or
on behalf of such director or officer to repay such amount if it shall
ultimately be determined that such person is not entitled to indemnification. At
present, we are not aware of any pending or threatened litigation or proceeding
involving a director, officer, employee or agent of NeoMedia in which
indemnification would be required or permitted.
Insofar as indemnification of liabilities arising under the Securities Act
of 1933 (the "Act") may be permitted to directors, officers and controlling
persons of the small business issuer pursuant to the foregoing provisions, or
otherwise, the small business issuer has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy
as expressed in the Act and is, therefore, unenforceable. PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTIONS.
The following table sets forth the various expenses in connection with the
sale and distribution of the securities being registered. All of the amounts
shown are estimates except the Securities and Exchange Commission registration
fee.
Securities and Exchange Commission
Registration Fee................................... $ 6,873.67
Legal fees and expenses.................................. $ 5,000.00
Accounting fees and expenses............................. $ 10,000.00
Miscellaneous............................................ $ 1,000.00
-------------
Total ............................................. $ 22,873.67
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
As permitted by the Delaware General Corporation Law ("DGCL"), we have
included in our Certificate of Incorporation a provision to eliminate the
personal liability of its directors for monetary damages for breach or alleged
breach of their fiduciary duties as directors, except for liability (i) for any
breach of the director's duty of loyalty to the Company or its stockholders,
(ii) for acts or omissions not in good faith or which involved intentional
misconduct or a knowing violation of law, (iii) in respect of certain unlawful
dividend payments or stock redemptions or repurchases, as provided in Section
174 of the DGCL, or (iv) for any transaction from which the director derived an
improper personal benefit. The effect of this provision is to eliminate the
rights of NeoMedia and its stockholders (through stockholders' derivative suits
on behalf of NeoMedia) to recover monetary damages against a director for breach
of the fiduciary duty of care as a director except in the situations described
in (i) through (iv) above. This provision does not limit nor eliminate the
rights of NeoMedia or any stockholder to seek non-monetary relief such as an
injunction or rescission in the event of a
15
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breach of a director's duty of care. These provisions will not alter the
liability of directors under federal securities laws.
The Certificate of Incorporation and the by-laws of NeoMedia provide that
we are required and permitted to indemnify our officers and directors, employees
and agents under certain circumstances. In addition, if permitted by law, we are
required to advance expenses to our officers and directors as incurred in
connection with proceedings against them in their capacity as a director or
officer for which they may be indemnified upon receipt of an undertaking by or
on behalf of such director or officer to repay such amount if it shall
ultimately be determined that such person is not entitled to indemnification. At
present, we are not aware of any pending or threatened litigation or proceeding
involving a director, officer, employee or agent of NeoMedia in which
indemnification would be required or permitted.
Insofar as indemnification of liabilities arising under the Securities Act
of 1933 (the "Act") may be permitted to directors, officers and controlling
persons of the small business issuer pursuant to the foregoing provisions, or
otherwise, the small business issuer has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy
as expressed in the Act and is, therefore, unenforceable.
ITEM 16. EXHIBITS.
EXHIBIT DESCRIPTION
5.1 Opinion of Merrick & Klimek, P.C.
23.1 Consent of Merrick & Klimek, P.C. (contained in Exhibit 5.1)
23.2 Consent of Arthur Andersen LLP
23.3 Consent of KPMG LLP
ITEM 17. UNDERTAKINGS.
A. The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement;
(i) To include any prospectus required by Section 10(a)(3) of
the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising
after the effective date of the registration statements (or the most
recent post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth in
the registration statement;
(iii) To include any material information with respect to the
plan of distribution not previously disclosed in the registration
statement or any material change to such information in the registration
statement;
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PROVIDED, HOWEVER, that paragraphs (A)(1)(i) and (A)(1)(ii) do not apply
if the information required to be included in a post-effective amendment
by those paragraphs is contained in periodic reports filed by the
registrant pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934 that are incorporated by reference in the registration statement.
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed
to be the initial BONA FIDE offering thereof.
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at
the termination of the offering.
B. The undersigned registrant hereby undertakes that, for purposes of
determining liability under the Securities Act of 1933, each filing of the
registrant's annual report pursuant to Section 13(a) or 15(d) of the Securities
Exchange Act of 1934 that is incorporated by reference in the registration
statement shall be deemed a new registration statement relating to the
securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial BONA FIDE offering thereof.
C. Insofar as indemnification for liabilities arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling persons of
the registrant pursuant to the foregoing provisions, or otherwise, the
registrant has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the registrant of expenses
incurred or paid by a director, officer or controlling person of the registrant
in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-3 and has duly caused this Registration
Statement on Form S-3 to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Fort Myers, State of Florida on March 30, 2000.
NEOMEDIA TECHNOLOGIES, INC.
By:/s/ CHARLES W. FRITZ
---------------------------------
Charles W. Fritz
Chief Executive Officer and
Chairman of the Board
Pursuant to the requirements of the Securities Act of 1933, this Form S-3
has been signed below by the following persons in the capacities and on the
dates indicated:
SIGNATURES TITLE DATE
/s/ WILLIAM GOINS President and Director 3/30/00
- -----------------------------
William Goins
/s/ CHARLES W. FRITZ Chief Executive Officer,
- ----------------------------- Chairman of the Board and Director 3/30/00
Charles W. Fritz
/s/ WILLIAM E. FRITZ Secretary and Director 3/30/00
- -----------------------------
William E. Fritz
/s/ CHARLES T. JENSEN Chief Financial Officer,
- ----------------------------- Treasurer and Director 3/30/00
Charles T. Jensen
/s/ ROBERT T. DURST, JR. Director 3/30/00
- -----------------------------
Robert T. Durst, Jr.
/s/ A. HAYES BARCLAY Director 3/30/00
- -----------------------------
A. Hayes Barclay
/s/ JAMES J. KEIL Director 3/30/00
- -----------------------------
James J. Keil
/s/ PAUL REECE Director 3/30/00
- -----------------------------
Paul Reece
/s/ JOHN A. LOPIANO Director 3/30/00
- -----------------------------
John A. Lopiano
18
EXHIBIT 5.1
March 29, 2000
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Registration Statement on Form S-3
for NeoMedia Technologies, Inc.
Ladies and Gentlemen:
As legal counsel for NeoMedia Technologies, Inc., a Delaware corporation
(the "Company"), we are rendering this opinion in connection with the
preparation and filing of a registration statement on Form S-3 (the
"Registration Statement") relating to the registration under the Securities Act
of 1933, as amended, of up to 2,825,762 additional shares of the Company's
Common Stock (the "Common Stock").
We have examined such instruments, documents and records as we have deemed
relevant and necessary for the basis of our opinion hereinafter expressed. In
such examination, we have assumed the genuineness of all signatures and the
authenticity of all documents submitted to us as originals and the conformity to
the originals of all documents submitted to us as copies.
Based on such examination, we are of the opinion that the shares of Common
Stock of the Company being registered pursuant to the Registration Statement
are, respectively, duly authorized securities of the Company and, in the case of
the Common Stock, duly authorized shares of Common Stock which, when sold, will
be legally and validly issued, fully paid and non-assessable.
We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement referred to above and the use of our name wherever it
appears in said Registration Statement.
This opinion is to be used only in connection with the instant registration
of Common Stock and the issuance of the Common Stock while the Registration
Statement is in effect.
Respectfully submitted,
/s/ MERRICK & KLIMEK P.C.
-------------------------
MERRICK & KLIMEK, P.C.
EXHIBIT 23.1
Consent of Merrick & Klimek, P.C. (contained in Exhibit 5.1)
EXHIBIT 23.2
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
As independent certified public accountants, we hereby consent to the
incorporation by reference in this registration statement of our report dated
February 25, 2000 (except with respect to the matters discussed in Note 15, as
to which the date is March 17, 2000), included in NeoMedia Technologies, Inc.'s
Form 10K for the year ended December 31, 1999 and to all references to our firm
included in this registration statement.
Tampa, Florida,
March 31, 2000
EXHIBIT 23.3
CONSENT OF INDEPENDENT AUDITORS
THE BOARD OF DIRECTORS
NeoMedia Technologies, Inc.:
We consent to the use of our report dated March 12, 1999, which appears in the
Annual Report on Form 10-KSB of NeoMedia Technologies, Inc. ("the Company") for
the year ended December 31, 1999, which Annual Report is incorporated by
reference herein and to the reference to our firm under the heading "Experts" in
the prospectus.
Our report contains an explanatory paragraph that states that the Company has
suffered recurring losses from operations, has a significant accumulated
deficit, and a working capital deficiency that raise substantial doubt about its
ability to continue as a going concern. The consolidated financial statements do
not include any adjustments that might result from the outcome of this
uncertainty.
KPMG LLP
March 31, 2000
Miami, Florida
