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. 3)(1)
QUERYOBJECT SYSTEMS CORPORATION
- --------------------------------------------------------------------------------
(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
- --------------------------------------------------------------------------------
(Name, address and telephone number of person
authorized to receive notices and communications)
October 9, 1998
- --------------------------------------------------------------------------------
(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 28 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 28 Pages
- -------------------------------- ---------------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Wheatley Partners, L.P.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC, OO
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OR ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 1,179,159(1) shares
OWNED BY
EACH
REPORTING
PERSON WITH
--------------------------------------------------------------------
8 SHARED VOTING POWER
94,435(2) shares
--------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,179,159(1) shares
--------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
94,435(2) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,273,594(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)
21.6%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Includes (i) 281,879 shares of Common Stock issuable upon exercise of
warrants and (ii) 441,600 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock held by Wheatley
Partners, L.P.
(2) Includes (i) 24,371 shares of Common Stock issuable upon exercise of
warrants and (ii) 38,400 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 28 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
- --------------------------------------------------------------------------------
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 OR ORGANIZATION
United States
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 121,250(1) shares
OWNED BY
EACH
REPORTING
PERSON WITH
--------------------------------------------------------------------
8 SHARED VOTING POWER
1,800,906(2) shares
--------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
121,250(1) shares
--------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,800,906(2) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,922,156(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)
30.5%
- --------------------------------------------------------------------------------
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) 25,000 shares of Common Stock issuable upon exercise of
warrants and (iii) 40,000 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) 15,625 shares of Common
Stock issuable upon exercise of warrants and 20,000 shares of Common
Stock issuable upon
<PAGE>
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CUSIP No. 227698 10 7 13D Page 4 of 28 Pages
- -------------------------------- ---------------------------
conversion of shares of Series A Preferred Stock, all of which is held
by Woodland Venture Fund, (c)(i) 15,625 shares of Common Stock issuable
upon exercise of warrants and 20,000 shares of Common Stock issuable
upon conversion of shares of Series A Preferred Stock, all of which is
held by Seneca Ventures, (d)(i) 281,879 shares of Common Stock issuable
upon exercise of warrants and (ii) 441,600 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) 24,371 shares of
Common Stock issuable upon exercise of warrants and (ii) 38,400 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 28 Pages
- -------------------------------- ---------------------------
================================================================================
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 OR 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
1,273,594(2) shares
--------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
56,250(1) shares
--------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,273,594(2) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,329,844(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)
22.3%
- --------------------------------------------------------------------------------
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) 281,879 shares of Common Stock issuable upon exercise
of warrants and (ii) 441,600 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) 24,371 shares of Common Stock
issuable upon exercise of warrants and (ii) 38,400 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 28 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 28 Pages
- -------------------------------- ---------------------------
================================================================================
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 OR ORGANIZATION
United States
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 0 shares
OWNED BY
EACH
REPORTING
PERSON WITH
--------------------------------------------------------------------
8 SHARED VOTING POWER
1,273,594(1) shares
--------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,273,594(1) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,273,594(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)
21.6%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Includes (a)(i) 281,879 shares of Common Stock issuable upon exercise
of warrants and (ii) 441,600 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) 24,371 shares of Common Stock
issuable upon exercise of warrants and (ii) 38,400 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 28 Pages
- -------------------------------- ---------------------------
================================================================================
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 OR ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 0 shares
OWNED BY
EACH
REPORTING
PERSON WITH
--------------------------------------------------------------------
8 SHARED VOTING POWER
1,273,594(1) shares
--------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,273,594(1) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,273,594(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)
21.6%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Includes (a)(i) 281,879 shares of Common Stock issuable upon exercise
of warrants and (ii) 441,600 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) 24,371 shares of Common Stock
issuable upon exercise of warrants and (ii) 38,400 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 9 of 28 Pages
- -------------------------------- ---------------------------
================================================================================
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 OR 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
1,273,594(2) shares
--------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,084(1) shares
--------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,273,594(2) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,275,678(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)
21.6%
- --------------------------------------------------------------------------------
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) 281,879 shares of Common Stock issuable upon exercise
of warrants and (ii) 441,600 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) 24,371 shares of Common Stock
issuable upon exercise of warrants and (ii) 38,400 shares of Common
Stock issuable upon conversion of shares of Series A Preferred Stock,
all of which is held by
<PAGE>
- -------------------------------- ---------------------------
CUSIP No. 227698 10 7 13D Page 10 of 28 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 11 of 28 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 OR 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
1,273,594(2) shares
--------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,084(1) shares
--------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,273,594(2) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,275,678(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)
21.6%
- --------------------------------------------------------------------------------
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) 281,879 shares of Common Stock issuable upon exercise
of warrants and (ii) 441,600 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) 24,371 shares of Common Stock
issuable upon exercise of warrants and (ii) 38,400 shares of Common
Stock issuable upon conversion of shares of Series A Preferred Stock,
all of which is held by
<PAGE>
- -------------------------------- ---------------------------
CUSIP No. 227698 10 7 13D Page 12 of 28 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 28 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 OR 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
94,435(1) shares
--------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
94,435(1) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
94,435(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)
1.8%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Includes (i) 24,371 shares of Common Stock issuable upon exercise of
warrants and (ii) 38,400 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>
- -------------------------------- ---------------------------
CUSIP No. 227698 10 7 13D Page 14 of 28 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 OR ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 94,435(1) shares
OWNED BY
EACH
REPORTING
PERSON WITH
--------------------------------------------------------------------
8 SHARED VOTING POWER
1,179,159(2) shares
--------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
94,435(1) shares
--------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,179,159(2) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
1,273,594(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)
21.6%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Includes (i) 24,371 shares of Common Stock issuable upon exercise of
warrants and (ii) 38,400 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock held by Wheatley
Foreign Partners, L.P.
(2) Includes (i) 281,879 shares of Common Stock issuable upon exercise of
warrants and (ii) 441,600 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 28 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 OR ORGANIZATION
New York
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 76,106(1) shares
OWNED BY
EACH
REPORTING
PERSON WITH
--------------------------------------------------------------------
8 SHARED VOTING POWER
0 shares
--------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
76,106(1) shares
--------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
76,106(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)
1.5%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Includes (i) 15,625 shares of Common Stock issuable upon exercise of
warrants and (ii) 20,000 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock held by Seneca
Ventures.
<PAGE>
- -------------------------------- ---------------------------
CUSIP No. 227698 10 7 13D Page 16 of 28 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 OR ORGANIZATION
New York
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 89,600(1) shares
OWNED BY
EACH
REPORTING
PERSON WITH
--------------------------------------------------------------------
8 SHARED VOTING POWER
0 shares
--------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
89,600(1) shares
--------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
89,600(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)
1.7%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Includes (i) 15,625 shares of Common Stock issuable upon exercise of
warrants and (ii) 20,000 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock held by Woodland
Venture Fund.
<PAGE>
- -------------------------------- ---------------------------
CUSIP No. 227698 10 7 13D Page 17 of 28 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 OR 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 28 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 OR 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 28 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 OR ORGANIZATION
United States
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 0 shares
OWNED BY
EACH
REPORTING
PERSON WITH
--------------------------------------------------------------------
8 SHARED VOTING POWER
327,312(1) shares
--------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
327,312(1) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
327,312(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)
6.3%
- --------------------------------------------------------------------------------
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) 15,625 shares of Common
Stock issuable upon exercise of warrants and (ii) 20,000 shares of
Common Stock issuable upon conversion of shares of Series A Preferred
Stock, all of which is held by Woodland Venture Fund, and (c)(i) 15,625
shares of Common Stock issuable upon exercise of warrants and (ii)
20,000 shares of Common Stock issuable upon conversion of shares of
Series A Preferred Stock, all of which is held by Seneca Ventures. Mrs.
Rubenstein disclaims beneficial ownership of the
<PAGE>
- -------------------------------- ---------------------------
CUSIP No. 227698 10 7 13D Page 20 of 28 Pages
- -------------------------------- ---------------------------
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 28 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 OR ORGANIZATION
New York
- --------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 0 shares
OWNED BY
EACH
REPORTING
PERSON WITH
--------------------------------------------------------------------
8 SHARED VOTING POWER
165,706(1) shares
--------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
165,706(1) shares
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
165,706(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)
3.2%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
================================================================================
*SEE INSTRUCTIONS BEFORE FILLING OUT!
(1) Includes (a)(i) 15,625 shares of Common Stock issuable upon exercise of
warrants and (ii) 20,000 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock, all of which is held
by Woodland Venture Fund and (b)(i) 15,625 shares of Common Stock
issuable upon exercise of warrants and (ii) 20,000 shares of Common
Stock issuable upon conversion of shares of Series A 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 22 of 28 Pages
- -------------------------------- ---------------------------
The following constitutes Amendment No. 3 to the Schedule 13D
filed by the undersigned (the "Schedule 13D"). Except as specifically amended by
this Amendment No. 3, 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 October 9, 1998, Barry Rubenstein, Wheatley, Wheatley
Foreign, Seneca and Woodland Fund acquired in 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 July 31,
1998, as reported by the Issuer in its Form 10Q for the period ended June 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) 1,273,594 21.6%
Barry Rubenstein(2) 1,922,156 30.5%
Irwin Lieber(3) 1,329,844 22.3%
Barry Fingerhut(4) 1,273,594 21.6%
Wheatley Partners, LLC(4) 1,273,594 21.6%
Seth Lieber(4)(5) 1,275,678 21.6%
Jonathan Lieber(4)(5) 1,275,678 21.6%
Wheatley Management Ltd.(6) 94,435 1.8%
Wheatley Foreign Partners, L.P.(7) 1,273,594 21.6%
Seneca Ventures(8) 76,106 1.5%
Woodland Venture Fund(9) 89,600 1.7%
Woodland Partners(10) 161,606 3.2%
Rev-Wood Merchant Partners(11) 200,000 3.8%
Marilyn Rubenstein(12) 327,312 6.3%
Woodland Services Corp.(13) 165,706 3.2%
- ---------------------
<PAGE>
- -------------------------------- ---------------------------
CUSIP No. 227698 10 7 13D Page 23 of 28 Pages
- -------------------------------- ---------------------------
(1) Includes (a)(i) 281,879 shares of Common Stock issuable upon exercise
of warrants and (ii) 441,600 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock, all of which is held
by Wheatley, and (b)(i) 24,371 shares of Common Stock issuable upon
exercise of warrants and (ii) 38,400 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) 25,000 shares of Common Stock issuable upon exercise of
warrants and (iii) 40,000 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) 15,625
shares of Common Stock issuable upon exercise of warrants and 20,000
shares of Common Stock issuable upon conversion of shares of Series A
Preferred Stock, all of which is held by Woodland Fund, (c)(i) 15,625
shares of Common Stock issuable upon exercise of warrants and 20,000
shares of Common Stock issuable upon conversion of shares of Series A
Preferred Stock, all of which is held by Seneca, (d)(i) 281,879 shares
of Common Stock issuable upon exercise of warrants and (ii) 441,600
shares of Common Stock issuable upon conversion of shares of Series A
Preferred Stock, all of which is held by Wheatley, (e)(i) 24,371 shares
of Common Stock issuable upon exercise of warrants and (ii) 38,400
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) 281,879 shares of
Common Stock issuable upon exercise of warrants and (ii) 441,600 shares
of Common Stock issuable upon conversion of shares of Series A
Preferred Stock, all of which is held by Wheatley, and (b)(i) 24,371
shares of Common Stock issuable upon exercise of warrants and (ii)
38,400 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) 281,879 shares of Common Stock issuable upon exercise
of warrants and (ii) 441,600 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock, all of which is held
by Wheatley, and (b)(i) 24,371 shares of Common Stock issuable upon
exercise of warrants and (ii) 38,400 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) 24,371 shares of Common Stock issuable upon exercise of
warrants and (ii) 38,400 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) 281,879 shares of Common Stock issuable upon exercise
of warrants and (ii) 441,600 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock, all of which is held
by Wheatley, and (b)(i) 24,371 shares of Common Stock issuable upon
exercise of warrants and
<PAGE>
- -------------------------------- ---------------------------
CUSIP No. 227698 10 7 13D Page 24 of 28 Pages
- -------------------------------- ---------------------------
(ii) 38,400 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) 15,625 shares of Common Stock issuable upon exercise of
warrants and (ii) 20,000 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock held by Seneca.
(9) Includes (i) 15,625 shares of Common Stock issuable upon exercise of
warrants and (ii) 20,000 shares of Common Stock issuable upon
conversion of shares of Series A 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) 15,625 shares of Common
Stock issuable upon exercise of warrants and (ii) 20,000 shares of
Common Stock issuable upon conversion of shares of Series A Preferred
Stock, all of which is held by Woodland Fund, and (c)(i) 15,625 shares
of Common Stock issuable upon exercise of warrants and (ii) 20,000
shares of Common Stock issuable upon conversion of shares of Series A
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) 15,625 shares of Common Stock issuable upon exercise of
warrants and (ii) 20,000 shares of Common Stock issuable upon
conversion of shares of Series A Preferred Stock, all of which is held
by Woodland Fund and (b)(i) 15,625 shares of Common Stock issuable upon
exercise of warrants and (ii) 20,000 shares of Common Stock issuable
upon conversion of shares of Series A 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 1,179,159
shares of Common Stock, representing approximately 20.2% of the outstanding
shares of Common Stock and may be deemed to have shared power to vote and
dispose of 94,435 shares of Common Stock, representing approximately 1.8% 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 1,273,594 shares of Common Stock, representing
approximately 21.6% of the outstanding shares of Common Stock.
Seth Lieber and Jonathan Lieber each have sole power to vote
and dispose of 2,084 and 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 1,273,594 shares of Common Stock, representing approximately 21.6% of
the outstanding shares of Common Stock.
Barry Rubenstein has sole power to vote and dispose of 121,250
shares of Common Stock upon the exercise of options and warrants, representing
approximately 2.3% 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
<PAGE>
- -------------------------------- ---------------------------
CUSIP No. 227698 10 7 13D Page 25 of 28 Pages
- -------------------------------- ---------------------------
power to vote and dispose of 1,800,906 shares of Common Stock, representing
approximately 29.1% 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 1,273,594 shares of Common Stock, representing approximately
21.6% 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
1,273,594 shares of Common Stock, representing approximately 21.6% of the
outstanding shares of Common Stock.
Wheatley Foreign has sole power to vote and dispose of 94,435
shares of Common Stock representing approximately 1.8% of the outstanding shares
of Common Stock and may be deemed to have shared power to vote and dispose of
1,179,159 shares of Common Stock, representing approximately 20.2% 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
94,435 shares of Common Stock, representing approximately 1.8% of the
outstanding shares of Common Stock.
Seneca has sole power to vote and dispose of 76,106 shares of
Common Stock representing approximately 1.5% of the outstanding shares of Common
Stock.
Woodland Fund has sole power to vote and dispose of 89,600
shares of Common Stock representing approximately 1.7% of the outstanding shares
of Common Stock.
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 327,312 shares of Common Stock, representing approximately 6.3% 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 165,706 shares of Common Stock, representing approximately 3.2% of
the outstanding shares of Common Stock.
<PAGE>
- -------------------------------- ---------------------------
CUSIP No. 227698 10 7 13D Page 26 of 28 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 in the last sixty days.
Purchase/ Number of Shares
Acquisition Purchased/ Purchase
Name of Stockholder Date Acquired (1) Price(2)
- ------------------- ---- ------------ --------
Barry Rubenstein 10/9/98 65,000 2.00
Wheatley Partners, L.P. 10/9/98 717,600 2.00
Wheatley Foreign Partners,
L.P. 10/9/98 62,400 2.00
Seneca Ventures 10/9/98 32,500 2.00
Woodland Venture Fund 10/9/98 32,500 2.00
- -----------------------
(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 (the closing bid price of the Common Stock on the
day immediately preceding the closing of the private placement
transaction).
The securities set forth in the table above were purchased in
a private placement transaction 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 the private placement
transaction, on October 9, 1998, the Issuer closed on 20% of the total
subscriptions for units made by each of the purchasers of units, including each
of the Reporting Persons listed in Item 5(c) above. All of the purchasers,
including the Reporting Persons listed in Item 5(c) above, 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. 3 do not include any securities that may be
purchased in a subsequent closing of the private placement transaction.
<PAGE>
- -------------------------------- ---------------------------
CUSIP No. 227698 10 7 13D Page 27 of 28 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: October 21, 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 28 of 28 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
---------------------------------
Barry Rubenstein, a General Partner
By: /s/ Marilyn Rubenstein
---------------------------------
Marilyn Rubenstein
WOODLAND SERVICES CORP.
By: /s/ Barry Rubenstein
---------------------------------
Barry Rubenstein, President
