PROSPECTUS SUPPLEMENT DATED APRIL 21, 1999
(TO PROSPECTUS DATED MARCH 22, 1999)
Filed Pursuant to
Rule 424(b)(3) and (c)
Commission File No. 333-65593
SOFTNET SYSTEMS, INC.
2,120,000 Shares of Common Stock
This prospectus supplement supplements our prospectus dated March 22,
1999. Our prospectus dated March 22, 1999 relates to the public offering, which
is not being underwritten, and sale by certain of our shareholders or their
successors in interest that receive such shares as a gift, partnership
distribution or other non-sale related transfer of up to 2,120,000 shares of our
common stock. You should read this prospectus supplement in conjunction with our
prospectus dated March 22, 1999. This prospectus supplement is qualified by
reference to our prospectus dated March 22, 1999, except to the extent that
information contained in this prospectus supplement supersedes the information
contained in our prospectus dated March 22, 1999.
SELLING SHAREHOLDERS
Recently Shoreline Pacific Equity, Ltd. transferred warrants to
purchase 17,462 shares of common stock to certain of its employees who were not
specifically named in our prospectus dated March 22, 1999. The following table
shows:
o the number of shares of common stock beneficially owned by such
employees who were not specifically identified as selling
shareholders in our prospectus dated March 22, 1999;
o the percentage of outstanding shares of our common stock this
represents; and
o the number of shares of our common stock to be registered for
sale under this prospectus supplement.
We amend the table of selling shareholders in our prospectus dated March 22,
1999 to include the employees of Shoreline Pacific Equity, Ltd., who are named
below, as selling shareholders and to reflect the transfer of warrants to
purchase 17,462 shares of common stock by Shoreline Pacific Equity, Ltd.
Number of Number of
Shares Percent of Shares
Beneficially Outstanding Registered for
Name of Selling Shareholder Owned(1) Shares Sale Hereby(1)
- --------------------------- ---------- ----------- ----------------
Shoreline Pacific Equity, Ltd. 6,163 (2) * 6,163
Harlan P. Kleiman 13,125 (2) * 13,125
James L. Kropf 11,938 (3) * 3,938
Warren Lilien 399 (2) * 399
- ---------------------------
* Represents beneficial ownership of less than 1%.
(1) The registration statement to which our prospectus and this prospectus
supplement relate also covers any additional shares of common stock which
become may become issuable in the future as a result of any stock dividend,
stock split, recapitalization or other similar transaction.
(2) Consists of warrants to purchase common stock which are exercisable 60 days
from the date of this prospectus supplement.
(3) Includes warrants to purchase common stock which are exercisable 60 days
from the date of this prospectus supplement.
