SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
--------------
SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED
PURSUANT TO RULE 13d-1(a) AND AMENDMENTS
THERETO FILED PURSUANT TO RULE 13d-2(a)
(Amendment No. 4)(1)
QUERYOBJECT SYSTEMS CORPORATION
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(Name of issuer)
COMMON STOCK
- --------------------------------------------------------------------------------
(Title of class of securities)
227698 10 7
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(CUSIP number)
STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME & ROSENZWEIG LLP
505 Park Avenue
New York, New York 10022
(212) 753-7200
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(Name, address and telephone number of person
authorized to receive notices and communications)
November 12, 1998
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(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 Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box / /.
Note. The 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.
(Continued on following pages)
(Page 1 of 31 Pages)
- --------
(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 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>
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CUSIP No. 227698 10 7 13D Page 2 of 31 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Wheatley Partners, L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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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
Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,896,759(1) shares
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
156,835(2) shares
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,896,759(1) shares
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
156,835(2) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,053,594(1)(2) shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
30.7%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Includes (i) 557,879 shares of Common Stock issuable upon exercise of
warrants and (ii) 883,200 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock held by Wheatley
Partners, L.P.
(2) Includes (i) 48,371 shares of Common Stock issuable upon exercise of
warrants and (ii) 76,800 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock held by Wheatley
Foreign Partners, L.P., of which Wheatley Partners, L.P. disclaims
beneficial ownership.
<PAGE>
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CUSIP No. 227698 10 7 13D Page 3 of 31 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Barry Rubenstein
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
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3 SEC USE ONLY
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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
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 186,250(1) shares
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
2,697,906(2) shares
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
186,250(1) shares
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,697,906(2) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,884,156(1)(2) shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
39.7%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Consists of (i) 56,250 shares of Common Stock issuable upon exercise of
options, (ii) 50,000 shares of Common Stock issuable upon exercise of
warrants and (iii) 80,000 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock held by Mr.
Rubenstein.
(2) Includes (a) 3,125 shares of Common Stock issuable upon exercise of
warrants held by Woodland Partners, (b)(i) 38,125 shares of Common
Stock issuable upon exercise of warrants, (ii) 40,000 shares of Common
Stock issuable upon
<PAGE>
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CUSIP No. 227698 10 7 13D Page 4 of 31 Pages
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conversion of shares of Series A Preferred Stock and (iii) 16,000
shares of Common Stock issuable upon conversion of shares of Series B
Preferred Stock, all of which is held by Woodland Venture Fund, (c)(i)
38,125 shares of Common Stock issuable upon exercise of warrants, (ii)
40,000 shares of Common Stock issuable upon conversion of shares of
Series A Preferred Stock and (iii) 16,000 shares of Common Stock
issuable upon conversion of shares of Series B Preferred Stock, all of
which is held by Seneca Ventures, (d)(i) 557,879 shares of Common Stock
issuable upon exercise of warrants and (ii) 883,200 shares of Common
Stock issuable upon conversion of shares of Series A Preferred Stock,
all of which is held by Wheatley Partners, L.P., (e)(i) 48,371 shares
of Common Stock issuable upon exercise of warrants and (ii) 76,800
shares of Common Stock issuable upon conversion of shares of Series A
Preferred Stock, all of which is held by Wheatley Foreign Partners,
L.P., and (f) 200,000 shares of Common Stock issuable upon exercise of
options held by Rev-Wood Merchant Partners. Mr. Rubenstein disclaims
beneficial ownership of the securities held by Woodland Partners,
Woodland Venture Fund, Seneca Ventures, Wheatley Partners, L.P.,
Wheatley Foreign Partners, L.P. and Rev- Wood Merchant Partners, except
to the extent of his respective equity interest therein.
<PAGE>
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CUSIP No. 227698 10 7 13D Page 5 of 31 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Irwin Lieber
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
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
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 56,250(1) shares
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
2,053,594(2) shares
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
56,250(1) shares
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,053,594(2) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,109,844(1)(2) shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
31.3%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Consists of 56,250 shares of Common Stock issuable upon exercise of
options held by Mr. Lieber.
(2) Includes (a)(i) 557,879 shares of Common Stock issuable upon exercise
of warrants and (ii) 883,200 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock, all of which is held
by Wheatley Partners, L.P., and (b)(i) 48,371 shares of Common Stock
issuable upon exercise of warrants and (ii) 76,800 shares of Common
Stock issuable upon conversion of shares of Series A Preferred Stock,
all of which is held by
<PAGE>
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CUSIP No. 227698 10 7 13D Page 6 of 31 Pages
- ------------------------------ -----------------------------
Wheatley Foreign Partners, L.P., of which Mr. Lieber disclaims
beneficial ownership, except to the extent of his respective equity
interest therein.
<PAGE>
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CUSIP No. 227698 10 7 13D Page 7 of 31 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Barry Fingerhut
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
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
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 0 shares
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
2,053,594(1) shares
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0 shares
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,053,594(1) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,053,594(1) shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
30.7%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Includes (a)(i) 557,879 shares of Common Stock issuable upon exercise
of warrants and (ii) 883,200 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock, all of which is held
by Wheatley Partners, L.P., and (b)(i) 48,371 shares of Common Stock
issuable upon exercise of warrants and (ii) 76,800 shares of Common
Stock issuable upon conversion of shares of Series A Preferred Stock,
all of which is held by Wheatley Foreign Partners, L.P., of which Mr.
Fingerhut disclaims beneficial ownership, except to the extent of his
respective equity interest therein.
<PAGE>
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CUSIP No. 227698 10 7 13D Page 8 of 31 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Wheatley Partners, LLC
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
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
Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 0 shares
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
2,053,594(1) shares
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0 shares
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,053,594(1) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,053,594(1) shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
30.7%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Includes (a)(i) 557,879 shares of Common Stock issuable upon exercise
of warrants and (ii) 883,200 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock, all of which is held
by Wheatley Partners, L.P., and (b)(i) 48,371 shares of Common Stock
issuable upon exercise of warrants and (ii) 76,800 shares of Common
Stock issuable upon conversion of shares of Series A Preferred Stock,
all of which is held by Wheatley Foreign Partners, L.P., of which
Wheatley Partners, LLC disclaims beneficial ownership, except to the
extent of its respective equity interest therein.
<PAGE>
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CUSIP No. 227698 10 7 13D Page 7 of 31 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Seth Lieber
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
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
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 2,084(1) shares
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
2,053,594(2) shares
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,084(1) shares
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,053,594(2) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,055,678(1)(2) shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
30.7%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Consists of 2,084 shares of Common Stock issuable upon exercise of
options held by Mr. Lieber.
(2) Includes (a)(i) 557,879 shares of Common Stock issuable upon exercise
of warrants and (ii) 883,200 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock, all of which is held
by Wheatley Partners, L.P., and (b)(i) 48,371 shares of Common Stock
issuable upon exercise of warrants and (ii) 76,800 shares of Common
Stock issuable upon conversion of shares of Series A Preferred Stock,
all of which is held by
<PAGE>
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CUSIP No. 227698 10 7 13D Page 10 of 31 Pages
- ------------------------------ -----------------------------
Wheatley Foreign Partners, L.P., of which Mr. Lieber disclaims
beneficial ownership, except to the extent of his respective equity
interest therein.
<PAGE>
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CUSIP No. 227698 10 7 13D Page 11 of 31 Pages
- ------------------------------ -----------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Jonathan Lieber
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
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
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 2,084(1) shares
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
2,053,594(2) shares
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,084(1) shares
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,053,594(2) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,055,678(1)(2) shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
30.7%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Consists of 2,084 shares of Common Stock issuable upon exercise of
options held by Mr. Lieber.
(2) Includes (a)(i) 557,879 shares of Common Stock issuable upon exercise
of warrants and (ii) 883,200 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock, all of which is held
by Wheatley Partners, L.P., and (b)(i) 48,371 shares of Common Stock
issuable upon exercise of warrants and (ii) 76,800 shares of Common
Stock issuable upon conversion of shares of Series A Preferred Stock,
all of which is held by
<PAGE>
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CUSIP No. 227698 10 7 13D Page 12 of 31 Pages
- ------------------------------ -----------------------------
Wheatley Foreign Partners, L.P., of which Mr. Lieber disclaims
beneficial ownership, except to the extent of his respective equity
interest therein.
<PAGE>
- ------------------------------ -----------------------------
CUSIP No. 227698 10 7 13D Page 13 of 31 Pages
- ------------------------------ -----------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Wheatley Management Ltd.
- --------------------------------------------------------------------------------
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
Cayman Islands, B.W.I.
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 0 shares
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
156,835(1) shares
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0 shares
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
156,835(1) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
156,835(1) shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.0%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Includes (i) 48,371 shares of Common Stock issuable upon exercise of
warrants and (ii) 76,800 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock held by Wheatley
Foreign Partners, L.P., of which Wheatley Management Ltd. disclaims
beneficial ownership, except to the extent of its equity interest
therein.
<PAGE>
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CUSIP No. 227698 10 7 13D Page 14 of 31 Pages
- ------------------------------ -----------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Wheatley Foreign Partners, L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 156,835(1) shares
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
1,896,759(2) shares
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
156,835(1) shares
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,896,759(2) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,053,594(1)(2) shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
30.7%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Includes (i) 48,371 shares of Common Stock issuable upon exercise of
warrants and (ii) 76,800 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock held by Wheatley
Foreign Partners, L.P.
(2) Includes (i) 557,879 shares of Common Stock issuable upon exercise of
warrants and (ii) 883,200 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock is held by Wheatley
Partners, L.P., of which Wheatley Foreign Partners, L.P. disclaims
beneficial ownership.
<PAGE>
- ------------------------------ -----------------------------
CUSIP No. 227698 10 7 13D Page 15 of 31 Pages
- ------------------------------ -----------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Seneca Ventures
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 134,606(1) shares
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
0 shares
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
134,606(1) shares
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
134,606(1) shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.6%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Includes (i) 38,125 shares of Common Stock issuable upon exercise of
warrants, (ii) 40,000 shares of Common Stock issuable upon conversion
of shares of Series A Preferred Stock and (iii) 16,000 shares of Common
Stock issuable upon conversion of shares of Series B Preferred Stock
held by Seneca Ventures.
<PAGE>
- ------------------------------ -----------------------------
CUSIP No. 227698 10 7 13D Page 16 of 31 Pages
- ------------------------------ -----------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Woodland Venture Fund
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 148,100(1) shares
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
0 shares
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
148,100(1) shares
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
148,100(1) shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.8%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Includes (i) 38,125 shares of Common Stock issuable upon exercise of
warrants, (ii) 40,000 shares of Common Stock issuable upon conversion
of shares of Series A Preferred Stock and (iii) 16,000 shares of Common
Stock issuable upon conversion of shares of Series B Preferred Stock
held by Woodland Venture Fund.
<PAGE>
- ------------------------------ -----------------------------
CUSIP No. 227698 10 7 13D Page 17 of 31 Pages
- ------------------------------ -----------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Woodland Partners
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 161,606(1) shares
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
0 shares
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
161,606(1) shares
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
161,606(1) 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*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Includes 3,125 shares of Common Stock issuable upon exercise of
warrants held by Woodland Partners.
<PAGE>
- ------------------------------ -----------------------------
CUSIP No. 227698 10 7 13D Page 18 of 31 Pages
- ------------------------------ -----------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Rev-Wood Merchant Partners
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 200,000(1) shares
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
0
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
200,000(1) shares
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
200,000(1) shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.8%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Consists of 200,000 shares of Common Stock issuable upon exercise of
options held by Rev-Wood Merchant Partners.
<PAGE>
- ------------------------------ -----------------------------
CUSIP No. 227698 10 7 13D Page 19 of 31 Pages
- ------------------------------ -----------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Marilyn Rubenstein
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
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
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 0 shares
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
444,312(1) shares
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0 shares
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
444,312(1) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
444,312(1) shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
8.4%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Includes (a) 3,125 shares of Common Stock issuable upon exercise of
warrants held by Woodland Partners, (b)(i) 38,125 shares of Common
Stock issuable upon exercise of warrants, (ii) 40,000 shares of Common
Stock issuable upon conversion of shares of Series A Preferred Stock
and (iii) 16,000 shares of Common Stock issuable upon conversion of
shares of Series B Preferred Stock, all of which is held by Woodland
Venture Fund, and (c)(i) 38,125 shares of Common Stock issuable upon
exercise of warrants, (ii) 40,000 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock and
<PAGE>
- ------------------------------ -----------------------------
CUSIP No. 227698 10 7 13D Page 20 of 31 Pages
- ------------------------------ -----------------------------
(iii) 16,000 shares of Common Stock issuable upon conversion of shares
of Series B Preferred Stock, all of which is held by Seneca Ventures.
Mrs. Rubenstein disclaims beneficial ownership of the securities held
by Woodland Partners, Woodland Venture Fund and Seneca Ventures, except
to the extent of her respective equity interest therein. Does not
include securities held by Barry Rubenstein, the husband of Marilyn
Rubenstein.
<PAGE>
- ------------------------------ -----------------------------
CUSIP No. 227698 10 7 13D Page 21 of 31 Pages
- ------------------------------ -----------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Woodland Services Corp.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
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
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 0 shares
OWNED BY
EACH
REPORTING
PERSON WITH
----------------------------------------------------------------
8 SHARED VOTING POWER
282,706(1) shares
----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0 shares
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
282,706(1) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
282,706(1) shares
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.3%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Includes (a)(i) 38,125 shares of Common Stock issuable upon exercise of
warrants, (ii) 40,000 shares of Common Stock issuable upon conversion
of shares of Series A Preferred Stock and (iii) 16,000 shares of Common
Stock issuable upon conversion of shares of Series B Preferred Stock,
all of which is held by Woodland Venture Fund and (b)(i) 38,125 shares
of Common Stock issuable upon exercise of warrants, (ii) 40,000 shares
of Common Stock issuable upon conversion of shares of Series A
Preferred Stock and (iii) 16,000 shares of Common Stock issuable upon
conversion of shares of Series B
<PAGE>
- ------------------------------ -----------------------------
CUSIP No. 227698 10 7 13D Page 22 of 31 Pages
- ------------------------------ -----------------------------
Preferred Stock, all of which is held by Seneca Ventures, of which
Woodland Services Corp. disclaims beneficial ownership, except to the
extent of its respective equity ownership therein.
<PAGE>
- ------------------------------ -----------------------------
CUSIP No. 227698 10 7 13D Page 23 of 31 Pages
- ------------------------------ -----------------------------
The following constitutes Amendment No. 4 to the Schedule 13D
filed by the undersigned (the "Schedule 13D"). Except as specifically amended by
this Amendment No. 4, the Schedule 13D remains in full force and effect.
Item 3 is amended to include the following:
Item 3. Source and Amount of Funds or Other Consideration.
--------------------------------------------------
On November 2, 1998, Seneca and Woodland Fund acquired in a
private placement transaction (i) shares of Series B Convertible Preferred
Stock, $.001 par value per share ("Series B Preferred Stock"), that are
immediately convertible into 16,000 and 16,000 shares of Common Stock,
respectively, and (ii) warrants to purchase shares of Common Stock that are
immediately exercisable for 10,000 and 10,000 shares of Common Stock,
respectively. The purchase price of the securities was $8,000 and $8,000,
respectively. Seneca and Woodland Fund purchased these securities with their
respective working capital and other funds.
On November 12, 1998, Barry Rubenstein, Wheatley, Wheatley
Foreign, Seneca and Woodland Fund acquired in the second tranche of a private
placement transaction (i) shares of Series A Convertible Preferred Stock, $.001
par value per share ("Series A Preferred Stock"), that are immediately
convertible into 40,000, 441,600, 38,400, 20,000 and 20,000 shares of Common
Stock, respectively, and (ii) warrants to purchase shares of Common Stock that
are immediately exercisable for 25,000, 276,000, 24,000, 12,500 and 12,500
shares of Common Stock, respectively. The purchase price of these securities was
$20,000, $220,800, $19,200, $10,000 and $10,000, respectively. Mr. Rubenstein
purchased these securities with his personal and other funds, and Wheatley,
Wheatley Foreign, Seneca and Woodland Fund acquired these securities with their
respective working capital and other funds.
Item 5(a) and (b) are hereby amended to read in their entirety
as follows:
Item 5. Interest in Securities of the Issuer.
-------------------------------------
(a) The following table sets forth the aggregate number and
percentage (based on 5,121,422 shares of Common Stock outstanding as of October
31, 1998, as reported by the Issuer in its Form 10Q for the period ended
September 30, 1998) of Common Stock beneficially owned by each Reporting Person
named in Item 2 of Schedule 13D.
Percentage of
Shares of Common Shares of Common
Stock Stock
Name Beneficially Owned Beneficially Owned
- ---- ------------------ ------------------
Wheatley Partners, L.P.(1) 2,053,594 30.7%
Barry Rubenstein(2) 2,884,156 39.7%
Irwin Lieber(3) 2,109,844 31.3%
Barry Fingerhut(4) 2,053,594 30.7%
Wheatley Partners, LLC(4) 2,053,594 30.7%
Seth Lieber(4)(5) 2,055,678 30.7%
Jonathan Lieber(4)(5) 2,055,678 30.7%
Wheatley Management Ltd.(6) 156,835 3.0%
Wheatley Foreign Partners, L.P.(7) 2,053,594 30.7%
Seneca Ventures(8) 134,606 2.6%
<PAGE>
- ------------------------------ -----------------------------
CUSIP No. 227698 10 7 13D Page 24 of 31 Pages
- ------------------------------ -----------------------------
Percentage of
Shares of Common Shares of Common
Stock Stock
Name Beneficially Owned Beneficially Owned
- ---- ------------------ ------------------
Woodland Venture Fund(9) 148,100 2.8%
Woodland Partners(10) 161,606 3.2%
Rev-Wood Merchant Partners(11) 200,000 3.8%
Marilyn Rubenstein(12) 444,312 8.4%
Woodland Services Corp.(13) 282,706 5.3%
- ---------------------
(1) Includes (a)(i) 557,879 shares of Common Stock issuable upon exercise
of warrants and (ii) 883,200 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock, all of which is held
by Wheatley, and (b)(i) 48,371 shares of Common Stock issuable upon
exercise of warrants and (ii) 76,800 shares of Common Stock issuable
upon conversion of shares of Series A Preferred Stock, all of which is
held by Wheatley Foreign. Wheatley disclaims beneficial ownership of
the securities held by Wheatley Foreign.
(2) Includes (i) 56,250 shares of Common Stock issuable upon exercise of
options, (ii) 50,000 shares of Common Stock issuable upon exercise of
warrants and (iii) 80,000 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock held by Mr.
Rubenstein. Also includes (a) 3,125 shares of Common Stock issuable
upon exercise of warrants held by Woodland Partners, (b)(i) 38,125
shares of Common Stock issuable upon exercise of warrants, (ii) 40,000
shares of Common Stock issuable upon conversion of shares of Series A
Preferred Stock and (iii) 16,000 shares of Common Stock issuable upon
conversion of shares of Series B Preferred Stock, all of which is held
by Woodland Fund, (c)(i) 38,125 shares of Common Stock issuable upon
exercise of warrants, (ii) 40,000 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock and (iii) 16,000
shares of Common Stock issuable upon conversion of shares of Series B
Preferred Stock, all of which is held by Seneca, (d)(i) 557,879 shares
of Common Stock issuable upon exercise of warrants and (ii) 883,200
shares of Common Stock issuable upon conversion of shares of Series A
Preferred Stock, all of which is held by Wheatley, (e)(i) 48,371 shares
of Common Stock issuable upon exercise of warrants and (ii) 76,800
shares of Common Stock issuable upon conversion of shares of Series A
Preferred Stock, all of which is held by Wheatley Foreign, and (f)
200,000 shares of Common Stock issuable upon exercise of options held
by Rev-Wood. Mr. Rubenstein disclaims beneficial ownership of the
securities held by Woodland Partners, Woodland Fund, Seneca, Wheatley,
Wheatley Foreign and Rev-Wood, except to the extent of his respective
equity interest therein.
(3) Includes 56,250 shares of Common Stock issuable upon exercise of
options held by Mr. Lieber. Also includes (a)(i) 557,879 shares of
Common Stock issuable upon exercise of warrants and (ii) 883,200 shares
of Common Stock issuable upon conversion of shares of Series A
Preferred Stock, all of which is held by Wheatley, and (b)(i) 48,371
shares of Common Stock issuable upon exercise of warrants and (ii)
76,800 shares of Common Stock issuable upon conversion of shares of
Series A Preferred Stock, all of which is held by Wheatley Foreign, of
which Mr. Lieber disclaims beneficial ownership, except to the extent
of his respective equity interest therein.
(4) Includes (a)(i) 557,879 shares of Common Stock issuable upon exercise
of warrants and (ii) 883,200 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock, all of which is held
by Wheatley, and
<PAGE>
- ------------------------------ -----------------------------
CUSIP No. 227698 10 7 13D Page 25 of 31 Pages
- ------------------------------ -----------------------------
(b)(i) 48,371 shares of Common Stock issuable upon exercise of warrants
and (ii) 76,800 shares of Common Stock issuable upon conversion of
shares of Series A Preferred Stock, all of which is held by Wheatley
Foreign. The Reporting Person disclaims beneficial ownership of these
securities except to the extent of his or its equity respective
ownership in Wheatley and/or Wheatley Foreign.
(5) Includes 2,084 shares of Common Stock issuable upon exercise of options
held by Mr. Lieber.
(6) Includes (i) 48,371 shares of Common Stock issuable upon exercise of
warrants and (ii) 76,800 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock held by Wheatley
Foreign, of which Wheatley Management disclaims beneficial ownership,
except to the extent of its equity interest therein.
(7) Includes (a)(i) 557,879 shares of Common Stock issuable upon exercise
of warrants and (ii) 883,200 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock, all of which is held
by Wheatley, and (b)(i) 48,371 shares of Common Stock issuable upon
exercise of warrants and (ii) 76,800 shares of Common Stock issuable
upon conversion of shares of Series A Preferred Stock, all of which is
held by Wheatley Foreign. Wheatley Foreign disclaims beneficial
ownership of the securities held by Wheatley.
(8) Includes (i) 38,125 shares of Common Stock issuable upon exercise of
warrants, (ii) 40,000 shares of Common Stock issuable upon conversion
of shares of Series A Preferred Stock and (iii) 16,000 shares of Common
Stock issuable upon conversion of shares of Series B Preferred Stock,
held by Seneca.
(9) Includes (i) 38,125 shares of Common Stock issuable upon exercise of
warrants, (ii) 40,000 shares of Common Stock issuable upon conversion
of shares of Series A Preferred Stock and (iii) 16,000 shares of Common
Stock issuable upon conversion of shares of Series B Preferred Stock,
held by Woodland Fund.
(10) Includes 3,125 shares of Common Stock issuable upon exercise of
warrants held by Woodland Partners.
(11) Consists of 200,000 shares of Common Stock issuable upon exercise of
options held by Rev-Wood.
(12) Includes (a) 3,125 shares of Common Stock issuable upon exercise of
warrants held by Woodland Partners, (b)(i) 38,125 shares of Common
Stock issuable upon exercise of warrants, (ii) 40,000 shares of Common
Stock issuable upon conversion of shares of Series A Preferred Stock
and (iii) 16,000 shares of Common Stock issuable upon conversion of
shares of Series B Preferred Stock, all of which is held by Woodland
Fund, and (c)(i) 38,125 shares of Common Stock issuable upon exercise
of warrants, (ii) 40,000 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock and (iii) 16,000
shares of Common Stock issuable upon conversion of shares of Series B
Preferred Stock, all of which is held by Seneca. Mrs. Rubenstein
disclaims beneficial ownership of the securities held by Woodland
Partners, Woodland Fund and Seneca, except to the extent of her
respective equity interest therein. Does not include securities held by
Barry Rubenstein, the husband of Marilyn Rubenstein.
(13) Includes (a)(i) 38,125 shares of Common Stock issuable upon exercise of
warrants, (ii) 40,000 shares of Common Stock issuable upon conversion
of shares of Series A Preferred Stock and (iii) 16,000 shares of Common
Stock issuable upon conversion of shares of Series B Preferred Stock,
all of which is held by Woodland Fund, and (b)(i) 38,125 shares of
Common Stock issuable upon exercise of warrants, (ii) 40,000 shares of
Common Stock issuable upon
<PAGE>
- ------------------------------ -----------------------------
CUSIP No. 227698 10 7 13D Page 26 of 31 Pages
- ------------------------------ -----------------------------
conversion of shares of Series A Preferred Stock and (iii) 16,000
shares of Common Stock issuable upon conversion of shares of Series B
Preferred Stock, all of which is held by Seneca, of which Woodland
Services Corp. disclaims beneficial ownership, except to the extent of
its respective equity ownership therein.
(b) Wheatley has sole power to vote and dispose of 1,896,759
shares of Common Stock, representing approximately 28.9% of the outstanding
shares of Common Stock and may be deemed to have shared power to vote and
dispose of 156,835 shares of Common Stock, representing approximately 3.0% of
the outstanding shares of Common Stock.
By virtue of being the general partner of Wheatley and a
general partner of Wheatley Foreign, Wheatley LLC may be deemed to have shared
power to vote and dispose of 2,053,594 shares of Common Stock, representing
approximately 30.7% of the outstanding shares of Common Stock.
Seth Lieber and Jonathan Lieber each have sole power to vote
and dispose of 2,084 shares of Common Stock upon the exercise of options, each
representing less than 1% of the outstanding shares of Common Stock. By virtue
of being a member and an officer of Wheatley LLC, each of Seth Lieber and
Jonathan Lieber may be deemed to have shared power to vote and dispose of
2,053,594 shares of Common Stock, representing approximately 30.7% of the
outstanding shares of Common Stock.
Barry Rubenstein has sole power to vote and dispose of 186,250
shares of Common Stock upon the exercise of options and warrants, representing
approximately 3.5% of the outstanding shares of Common Stock. By virtue of being
a member and an officer of Wheatley LLC and a general partner of Seneca,
Woodland Partners, Woodland Fund and Rev-Wood, Mr. Rubenstein may be deemed to
have shared power to vote and dispose of 2,697,906 shares of Common Stock,
representing approximately 38.1% of the outstanding shares of Common Stock.
Irwin Lieber has sole power to vote and dispose of 56,250
shares of Common Stock upon the exercise of options, representing approximately
1.1% of the outstanding shares of Common Stock. By virtue of being a member and
an officer of Wheatley LLC, Irwin Lieber may be deemed to have shared power to
vote and dispose of 2,053,594 shares of Common Stock, representing approximately
30.7% of the outstanding shares of Common Stock.
By virtue of being a member and an officer of Wheatley LLC,
Barry Fingerhut may be deemed to have shared power to vote and dispose of
2,053,594 shares of Common Stock, representing approximately 30.7% of the
outstanding shares of Common Stock.
Wheatley Foreign has sole power to vote and dispose of 156,835
shares of Common Stock representing approximately 3.0% of the outstanding shares
of Common Stock and may be deemed to have shared power to vote and dispose of
1,896,759 shares of Common Stock, representing approximately 28.9% of the
outstanding shares of Common Stock.
By virtue of being a general partner of Wheatley Foreign,
Wheatley Management may be deemed to have shared power to vote and dispose of
156,835 shares of Common Stock, representing approximately 3.0% of the
outstanding shares of Common Stock.
Seneca has sole power to vote and dispose of 134,606 shares of
Common Stock representing approximately 2.6% of the outstanding shares of Common
Stock.
Woodland Fund has sole power to vote and dispose of 148,100
shares of Common Stock representing approximately 2.8% of the outstanding shares
of Common Stock.
<PAGE>
- ------------------------------ -----------------------------
CUSIP No. 227698 10 7 13D Page 27 of 31 Pages
- ------------------------------ -----------------------------
Woodland Partners has sole power to vote and dispose of
161,606 shares of Common Stock representing 3.2% of the outstanding shares of
Common Stock.
Rev-Wood has sole power to vote and dispose of 200,000 shares
of Common Stock representing 3.8% of the outstanding shares of Common Stock.
By virtue of being a general partner of Woodland Partners and
an officer of Woodland Services Corp., which is a general partner of Seneca and
Woodland Fund, Marilyn Rubenstein may be deemed to have shared power to vote and
dispose of 444,312 shares of Common Stock, representing approximately 8.4% of
the outstanding shares of Common Stock.
By virtue of being a general partner of Seneca and Woodland
Fund, Woodland Services Corp. may be deemed to have shared power to vote and
dispose of 282,706 shares of Common Stock, representing approximately 5.3% of
the outstanding shares of Common Stock.
<PAGE>
- ------------------------------ -----------------------------
CUSIP No. 227698 10 7 13D Page 28 of 31 Pages
- ------------------------------ -----------------------------
Item 5(c) is supplemented as follows:
(c) The following table sets forth 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 since the filing of Amendment
No. 3 to the Schedule 13D.
Purchase/ Number of Shares
Acquisition Purchased/ Purchase
Name of Stockholder Date Acquired Price
- ------------------- ---- -------- -----
SERIES A PREFERRED STOCK
Barry Rubenstein 11/12/98 65,000(1) 2.00(2)
Wheatley Partners, L.P. 11/12/98 717,600(1) 2.00(2)
Wheatley Foreign Partners,
L.P. 11/12/98 62,400(1) 2.00(2)
Seneca Ventures 11/12/98 32,500(1) 2.00(2)
Woodland Venture Fund 11/12/98 32,500(1) 2.00(2)
SERIES B PREFERRED STOCK
Seneca Ventures 11/2/98 26,000(3) 10.00(4)
Woodland Venture Fund 11/2/98 26,000(3) 10.00(4)
- ----------------------
(1) Represents shares of Common Stock issuable upon conversion of shares of
Series A Preferred Stock and upon exercise of warrants to purchase
shares of Common Stock.
(2) Represents the per unit purchase price, exclusive of the warrant
exercise price. Each unit was comprised of (i) one share of Series A
Preferred Stock (convertible into four shares of Common Stock) and (ii)
a warrant to purchase 2.5 shares of Common Stock at an exercise price
of $0.50 per share.
(3) Represents shares of Common Stock issuable upon conversion of shares of
Series B Preferred Stock and upon the exercise of warrants to purchase
shares of Common Stock.
(4) Represents the purchase price for (i) one share of Series B Preferred
Stock and (ii) five warrants to purchase an aggregate of 12.5 shares of
Common Stock (2.5 shares per warrant), the smallest fraction of the
unit that was offered by the Company, exclusive of the warrant exercise
price. Each full unit, purchase price $100,000, was comprised of (i)
10,000 shares of Series B Preferred Stock (each share convertible into
20 shares of Common Stock) and (ii) 50,000 warrants (each warrant
exercisable for 2.5 shares of Common Stock) at an exercise price of
$0.50 per share.
The securities set forth in the table above were purchased in
private placement transactions from the Issuer.
Item 6(a) is supplemented as follows:
Item 6. Contracts, Arrangements, Understandings or
Relationships With Respect to Securities of the Issuer.
-------------------------------------------------------
(a) Pursuant to the terms of a private placement transaction,
on November 2, 1998, the Issuer closed on 20% of the total subscriptions for the
units comprised of (i) 10,000 shares of Series B Preferred Stock and (ii) 50,000
warrants
<PAGE>
- ------------------------------ -----------------------------
CUSIP No. 227698 10 7 13D Page 29 of 31 Pages
- ------------------------------ -----------------------------
comprised of (i) 10,000 shares of Series B Preferred Stock and (ii) 50,000
warrants to purchase shares of Common Stock made by each of the purchasers of
such units, including each of the Reporting Persons listed in Item 5(c) above
that are set forth below the caption "Series B Preferred Stock." All of the
purchasers, including the Reporting Persons referred to in the previous
sentence, have committed to purchase, pro rata and on the same terms and
conditions, the remaining 80% of their respective subscriptions for units at
such time or times designated by the "Buyer Representative." Barry Rubenstein
has been named the Buyer Representative of the purchasers in such transaction.
There can be no assurance that Mr. Rubenstein will exercise his powers as Buyer
Representative or that any of the Reporting Persons listed in Item 5(c) above
will purchase any additional units. The aggregate holdings and acquisitions of
securities of the Reporting Persons set forth in this Amendment No. 4 do not
include any securities that may be purchased in a subsequent closing of such
private placement transaction.
<PAGE>
- ------------------------------ -----------------------------
CUSIP No. 227698 10 7 13D Page 30 of 31 Pages
- ------------------------------ -----------------------------
SIGNATURES
After reasonable inquiry and to the best of his knowledge and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: November 23, 1998 WHEATLEY PARTNERS, L.P.
By: Wheatley Partners, LLC,
General Partner
By: /s/ Barry Rubenstein
----------------------------------
Barry Rubenstein, Chief Executive
Officer
WHEATLEY PARTNERS, LLC
By: /s/ Barry Rubenstein
----------------------------------
Barry Rubenstein, Chief Executive
Officer
/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
<PAGE>
- ------------------------------ -----------------------------
CUSIP No. 227698 10 7 13D Page 31 of 31 Pages
- ------------------------------ -----------------------------
WHEATLEY MANAGEMENT LTD.
By: /s/ Irwin Lieber
----------------------------------
Irwin Lieber, President
WHEATLEY FOREIGN PARTNERS, L.P.
By: Wheatley Partners, LLC, General
Partner
By: /s/ Barry Rubenstein
----------------------------------
Barry Rubenstein, Chief Executive
Officer
SENECA VENTURES
By: /s/ Barry Rubenstein
----------------------------------
Barry Rubenstein, a General
Partner
WOODLAND PARTNERS
By: /s/ Barry Rubenstein
----------------------------------
Barry Rubenstein, a General
Partner
WOODLAND VENTURE FUND
By: /s/ Barry Rubenstein
----------------------------------
Barry Rubenstein, a General
Partner
REV-WOOD MERCHANT PARTNERS
By: /s/ Barry Rubenstein
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Barry Rubenstein, a General
Partner
By: /s/ Marilyn Rubenstein
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Marilyn Rubenstein
WOODLAND SERVICES CORP.
By: /s/ Barry Rubenstein
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Barry Rubenstein, President
