Delaware
|
7372
|
20-4378866
|
||
(State
or other
Jurisdiction
|
(Primary
Standard Industrial
|
(I.R.S.
Employer
|
||
of
Incorporation or
Organization)
|
Classification
Code Number)
|
Identification
No.)
|
Title
of each class of securities
to
be registered
|
Number
of Shares
to
be registered
|
Proposed
maximum offering price per share
|
Proposed
maximum aggregate
offering
price
|
Amount
of
registration
fee
|
Common
Stock, $0.001 par value
|
5,769,930
|
$0.12(1)
|
$692,391.64
|
$74.09
|
Total
Registration Fee
|
5,769,930
|
$0.12(1)
|
$692,391.64
|
$74.09
|
(1)
|
Estimated
solely for purposes of calculating the registration fee in accordance
with
Rule 457(e) under the Securities Act of
1933.
|
(2)
|
Calculated
in accordance with Rule 457(g)(1).
|
6
|
|
7
|
|
12
|
|
12
|
|
17
|
|
17
|
|
18
|
|
18
|
|
20
|
|
21
|
|
22
|
|
22
|
|
23
|
|
23
|
|
23
|
|
25
|
|
28
|
|
29
|
|
29
|
|
F-1
|
|
II-4
|
Common
stock outstanding before the offering
|
Prior
to this Offering, we have 16,761,597 shares
of Common Stock outstanding.
|
Securities
offered by the Selling Shareholders
|
Up
to 5,769,930 shares of common stock, including 1,603,264 shares of
common
stock and up to 4,166,667 shares of common stock issuable upon the
conversion of the convertible debentures.
This
number represents 27.6% of our current outstanding stock assuming
the
conversion of our convertible debentures.
|
Common
stock to be outstanding after the offering
|
Up
to 20,928,264 shares.
|
Use
of proceeds
|
We
will not receive any proceeds from the sale of the common stock.
|
·
|
that a broker or dealer approve a person's account for transactions in penny stocks; and |
·
|
the
broker or dealer receive from the investor a written agreement to
the
transaction, setting forth the identity and quantity of the penny
stock to
be purchased.
|
·
|
obtain financial information and investment experience objectives of the person; and |
·
|
make
a reasonable determination that the transactions in penny stocks
are
suitable for that person and the person has sufficient knowledge
and
experience in financial matters to be capable of evaluating the risks
of
transactions in penny stocks.
|
· |
sets
forth the basis on which the broker or dealer made the suitability
determination; and
|
· |
that
the broker or dealer received a signed, written agreement from the
investor prior to the transaction.
|
Name
|
Age
|
Position
|
Isidore
Sobkowski
|
50
|
President,
Chief Executive Officer and Director
|
Solomon
Lax
|
45
|
Director
|
Long-Term
Compensation
|
|||||||
Annual
Compensation
|
Awards
|
Payouts
|
|||||
Name
and
Principal
Position
|
Year
|
Salary
($)
|
Bonus
($)
|
Other
Annual
Compen-
sation
($)
|
Restricted
Stock
Award(s)
($)
|
Securities
Under-lying
Options/ SARs (#)
|
LTIP
Payouts
($)
|
Isidore
Sobkowski
President,
Chief Executive Officer and Director
|
2005
|
-0-
|
-0-
|
180
|
-0-
|
-0-
|
-0-
|
Title
of Class
|
Name
of
Beneficial
Owner (1)
|
Number
of Shares
Beneficially
Owned (2)
|
Percentage
Ownership(2)
|
|||||||
Common
Stock
|
Isidore
Sobkowski
|
9,700,000
|
57.9
|
%
|
||||||
Common
Stock
|
Soloman
Lax
|
2,200,000
|
13.1
|
%
|
||||||
Common
Stock
|
Michael
Hartstein
|
960,000
|
5.7
|
%
|
||||||
Common
Stock
|
Eroom
Systems Inc.
|
2,083,333
|
12.4
|
%
|
||||||
Common
Stock
|
All
Executive Officers and Directors as a Group (2 persons)
|
|
11,900,000
|
71.0
|
%
|
(1)
|
Except
as otherwise indicated, the address of each beneficial owner is c/o
Aprecia, Inc., 1177 High Ridge Road, Stamford, CT
06905.
|
(2)
|
Applicable
percentage ownership is based on 16,761,597 shares of common stock
outstanding as of November 6, 2006, together with securities exercisable
or convertible into shares of common stock within 60 days of November
6,
2006 for each stockholder. Beneficial ownership is determined in
accordance with the rules of the Securities and Exchange Commission
and
generally includes voting or investment power with respect to securities.
Shares of common stock that are currently exercisable or exercisable
within 60 days of November 6, 2006 are deemed to be beneficially
owned by
the person holding such securities for the purpose of computing the
percentage of ownership of such person, but are not treated as outstanding
for the purpose of computing the percentage ownership of any other
person.
|
·
|
ordinary
brokerage transactions and transactions in which the broker-dealer
solicits purchasers;
|
·
|
block
trades in which the broker-dealer will attempt to sell the shares
as agent
but may position and resell a portion of the block as principal to
facilitate the transaction;
|
·
|
purchases
by a broker-dealer as principal and resale by the broker-dealer for
its
account;
|
·
|
privately
negotiated transactions; and
|
·
|
a
combination of any such methods of sale.
|
Name
of Selling Stockholder
|
Total
Shares Held Including Shares of Common Stock and Shares Issuable
Upon Full
Conversion and/or
exercise
(3)
|
Total
Percentage of Outstanding Shares Assuming Full Conversion and/or
exercise
(3)
|
Shares
of Common Stock Included in Prospectus (3)
|
Beneficial
Ownership Before Offering (1)(2)
|
Percentage
of Common Stock Before
Offering
(1)(2)
|
Beneficial
Ownership After the Offering(4)
|
Percentage
of Common Stock Owned After Offering(4)
|
|||||||||||||||
Alpha
Capital Aktiengesellschaft(5)
|
2,083,333(5
|
)
|
11.06
|
%
|
2,083,333(5
|
)
|
880,332
|
4.99
|
%
|
--
|
--
|
|||||||||||
Double
U Master Fund LP(5)
|
833,333
|
4.74
|
%
|
833,333
|
833,333
|
4.74
|
%
|
--
|
--
|
|||||||||||||
Tobanna
Enterprises Corp. (5)
|
1,041,667
|
5.85
|
%
|
1,041,667
|
880,332
|
4.99
|
%
|
--
|
--
|
|||||||||||||
CMS
Capital(5)
|
208,333
|
1.23
|
%
|
208,333
|
208,333
|
1.23
|
%
|
--
|
--
|
|||||||||||||
Merit
Investments, Inc.
|
725,000
|
4.33
|
%
|
725,000
|
725,000
|
4.33
|
%
|
--
|
--
|
|||||||||||||
Palladium
Capital Advisors, LLC
|
195,000
|
1.16
|
%
|
195,000
|
195,000
|
1.16
|
%
|
--
|
--
|
|||||||||||||
Rosenblum,
Jonah
|
215000
|
1.28
|
%
|
215000
|
215000
|
1.28
|
%
|
--
|
--
|
|||||||||||||
Shlomo
Arnold
|
12,500
|
*
|
12,500
|
12,500
|
*
|
--
|
--
|
|||||||||||||||
Felice
Bergman
|
8,334
|
*
|
8,333
|
8,333
|
*
|
--
|
--
|
|||||||||||||||
David
Brothman
|
8,340
|
*
|
8,340
|
8,340
|
*
|
--
|
--
|
|||||||||||||||
Ruth
Gillan Dohany
|
8,340
|
*
|
8,340
|
8,340
|
*
|
--
|
--
|
|||||||||||||||
Marilyn
Estreicher
|
8,334
|
*
|
8,333
|
8,333
|
*
|
--
|
--
|
|||||||||||||||
Sheldon
Estreicher
|
8,334
|
*
|
8,333
|
8,333
|
*
|
--
|
--
|
|||||||||||||||
Bernard
Friedman
|
41,667
|
*
|
41,667
|
41,667
|
*
|
--
|
--
|
|||||||||||||||
Sam
Galet
|
8,340
|
*
|
8,340
|
8,340
|
*
|
--
|
--
|
Name
of Selling Stockholder
|
Total
Shares Held Including Shares of Common Stock and Shares Issuable
Upon Full
Conversion and/or
exercise
(3)
|
Total
Percentage of Outstanding Shares Assuming Full Conversion and/or
exercise
(3)
|
Shares
of Common Stock Included in Prospectus (3)
|
Beneficial
Ownership Before Offering (1)(2)
|
Percentage
of Common Stock Before
Offering
(1)(2)
|
Beneficial
Ownership After the Offering(4)
|
Percentage
of Common Stock Owned After Offering(4)
|
Hindy
Gestetner
|
8,340
|
*
|
8,340
|
8,340
|
*
|
--
|
--
|
|||||||||||||||
Brett
Goldberg
|
8,334
|
*
|
8,333
|
8,333
|
*
|
--
|
--
|
|||||||||||||||
Judith
Greenwood
|
8,340
|
*
|
8,340
|
8,340
|
*
|
--
|
--
|
|||||||||||||||
Howard
Hacker
|
8,340
|
*
|
8,340
|
8,340
|
*
|
--
|
--
|
|||||||||||||||
Anthony
Heller
|
8,340
|
*
|
8,340
|
8,340
|
*
|
--
|
--
|
|||||||||||||||
J.
Lipman Heller
|
9,000
|
*
|
9,000
|
9,000
|
*
|
--
|
--
|
|||||||||||||||
Paul
Jacobs
|
8,340
|
*
|
8,340
|
8,340
|
*
|
--
|
--
|
|||||||||||||||
Jonathan
Javitt
|
4,167
|
*
|
4,167
|
4,167
|
*
|
--
|
--
|
|||||||||||||||
Samuel
A. Judd & Renne H. Migdal
|
8,334
|
*
|
8,333
|
8,333
|
*
|
--
|
--
|
|||||||||||||||
Robert
Kahan
|
8,340
|
*
|
8,340
|
8,340
|
*
|
--
|
--
|
|||||||||||||||
Jeff
King
|
8,340
|
*
|
8,340
|
8,340
|
*
|
|||||||||||||||||
Soroh
Y. Lax
|
8,334
|
*
|
8,333
|
8,333
|
*
|
|||||||||||||||||
Harold
Lindenthal
|
8,334
|
*
|
8,333
|
8,333
|
*
|
--
|
--
|
|||||||||||||||
Longworth
Capital Partners, LLC
|
8,334
|
*
|
8,334
|
8,334
|
*
|
--
|
--
|
|||||||||||||||
Haim
Maimon
|
8,334
|
*
|
8,334
|
8,334
|
*
|
--
|
--
|
|||||||||||||||
Morris
Mayer
|
8,334
|
*
|
8,333
|
8,333
|
*
|
--
|
--
|
|||||||||||||||
Benjamin
Mayer
|
8,334
|
*
|
8,333
|
8,333
|
*
|
--
|
--
|
|||||||||||||||
Peter
Miller
|
8,340
|
*
|
8,340
|
8,340
|
*
|
--
|
--
|
|||||||||||||||
Gadi
Mimoun
|
8,334
|
*
|
8,333
|
8,333
|
*
|
|||||||||||||||||
Haskell
& Mechie Nebenzahl JTWROS
|
8,334
|
*
|
8,334
|
8,334
|
*
|
--
|
--
|
|||||||||||||||
Marilyn
Niedober
|
8,334
|
*
|
8,333
|
8,333
|
*
|
--
|
--
|
|||||||||||||||
Irwin
Niedober
|
8,334
|
*
|
8,333
|
8,333
|
*
|
--
|
--
|
|||||||||||||||
Marna
Padowitz
|
4,167
|
*
|
4,167
|
4,167
|
*
|
--
|
--
|
|||||||||||||||
Raymond
Padowitz
|
4,167
|
*
|
4,167
|
4,167
|
*
|
--
|
--
|
|||||||||||||||
Seth
Padowitz
|
5,000
|
*
|
5,000
|
5,000
|
*
|
--
|
--
|
|||||||||||||||
Adam
N. Rin
|
4,167
|
*
|
4,167
|
4,167
|
*
|
--
|
--
|
|||||||||||||||
Ellen
Rosenblum
|
8,333
|
*
|
8,333
|
8,333
|
*
|
--
|
--
|
|||||||||||||||
Richard
Rosenblum
|
8,333
|
*
|
8,333
|
8,333
|
*
|
--
|
--
|
Name
of Selling Stockholder
|
Total
Shares Held Including Shares of Common Stock and Shares Issuable
Upon Full
Conversion and/or
exercise
(3)
|
Total
Percentage of Outstanding Shares Assuming Full Conversion and/or
exercise
(3)
|
Shares
of Common Stock Included in Prospectus (3)
|
Beneficial
Ownership Before Offering (1)(2)
|
Percentage
of Common Stock Before
Offering
(1)(2)
|
Beneficial
Ownership After the Offering(4)
|
Percentage
of Common Stock Owned After Offering(4)
|
Rochelle
Rubinstein
|
8,334
|
*
|
8,333
|
8,333
|
*
|
--
|
--
|
|||||||||||||||
Michael
K. Sack
|
8,334
|
*
|
8,334
|
8,334
|
*
|
--
|
--
|
|||||||||||||||
Sarah
Sherman
|
20,834
|
*
|
20,834
|
20,834
|
*
|
--
|
--
|
|||||||||||||||
Jay
Smith
|
8,340
|
*
|
8,340
|
8,340
|
*
|
--
|
--
|
|||||||||||||||
David
Stefansky
|
8,334
|
*
|
8,333
|
8,333
|
*
|
--
|
--
|
|||||||||||||||
The
Rider Group
|
8,340
|
*
|
8,340
|
8,340
|
*
|
|||||||||||||||||
Henrique
Tischler
|
8,334
|
*
|
8,333
|
8,333
|
*
|
--
|
--
|
|||||||||||||||
Martin
Weiss
|
41,667
|
*
|
41,667
|
41,667
|
*
|
--
|
--
|
|||||||||||||||
William
F. White
|
8,340
|
*
|
8,340
|
8,340
|
*
|
--
|
--
|
|||||||||||||||
Zamaga
Inc.
|
8,334
|
*
|
8,333
|
8,333
|
*
|
--
|
--
|
|||||||||||||||
Yehuda
Zavdi
|
20,834
|
*
|
20,834
|
20,834
|
*
|
--
|
--
|
|||||||||||||||
Total
|
5,769,930
|
Report
of Independent Registered Public Accounting Firm
|
|
F-2
|
|
Balance
Sheet as of June 30, 2006
|
|
F-3
|
|
Statements
of Operations for the period
|
|
||
December
19, 2005 (date of inception) to June 30, 2006
|
|
F-4
|
|
Statements
of Stockholders' Equity for the period December 19, 2005 (date
of
inception)
|
|
|
|
To
June 30, 2006
|
|
F-5
|
|
Statements
of Cash Flows for the period
|
|
|
|
December
19, 2005 (date of inception) to June 30, 2006
|
|
F-6
|
|
Notes
to Financial Statements
|
|
F-7
|
Current
Assets
|
|
|||
|
|
|||
Cash
|
$
|
224,279
|
||
Subscriptions
Receivable
|
451
|
|||
|
||||
Total
Current Assets
|
224,730
|
|||
|
||||
Intangible
Assets
|
||||
|
||||
Deferred
Finance Costs - Net
|
156,736
|
|||
|
||||
Total
Assets
|
$
|
381,466
|
||
|
||||
LIABILITIES
AND STOCKHOLDERS’ DEFICIENCY
|
||||
Current
Liabilities
|
||||
|
||||
Accrued
Expenses
|
$
|
28,482
|
||
Accrued
Liquidated Damages
|
16,667
|
|||
|
||||
Total
Current Liabilities
|
45,149
|
|||
|
||||
Long
Term Debt
|
||||
|
||||
7%
Convertible Debentures
|
500,000
|
|||
|
||||
Total
Liabilities
|
545,149
|
|||
|
||||
Commitments
and Contingencies
|
||||
|
||||
Stockholders’
Deficiency
|
||||
Preferred
Stock, $.0001 par value; 10,000,000 shares authorized,
|
||||
none
issued and outstanding
|
-
|
|||
Common
Stock, $.0001 par value; 250,000,000 shares authorized,
|
||||
16,293,333
issued and outstanding
|
1,629
|
|||
Additional
Paid in Capital
|
44,792
|
|||
Deficit
Accumulated During the Development Stage
|
(
210,104
|
)
|
||
|
||||
Total
Stockholders’ Deficiency
|
(
163,683
|
)
|
||
|
||||
Total
Liabilities and Stockholders’ Deficiency
|
$
|
381,466
|
Net
Revenues
|
$
|
-
|
||
Costs
and Expenses
|
||||
Officer’s
Compensation
|
60,000
|
|||
Software
Development
|
47,570
|
|||
Other
General and Administrative Expenses
|
46,808
|
|||
Amortization
|
28,264
|
|||
Total
Costs and Expenses
|
182,642
|
|||
Loss
from Operations before Other Expense
|
(182,642
|
)
|
||
Other
Expenses:
|
||||
Interest
|
(
10,795
|
)
|
||
Liquidated
Damages
|
(
16,667
|
)
|
||
(
27,462
|
)
|
|||
Net
Loss
|
$
|
(210,104
|
)
|
|
Weighted
Average Common Shares Outstanding - Basic and Diluted
|
15,978,767 | |||
Net
Loss Per Common Share
|
$ | ( .01 | ) |
Preferred
Stock
|
Common
Stock
|
Additional
Paid-In
|
Deficit
Accumulated
During
the
Development
|
|||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Stage
|
Total
|
||||||||||||||||
Common
Stock Issued to Founders
|
-
|
$
|
-
|
4,510,000
|
$
|
451
|
$
|
-
|
$
|
-
|
$
|
451
|
||||||||||
Common
Stock Issued for Software
|
||||||||||||||||||||||
Development
- at Par Value
|
-
|
-
|
9,700,000
|
970
|
-
|
-
|
970
|
|||||||||||||||
Common
Stock Issued to a Private
|
||||||||||||||||||||||
Investor
- at $.024 Per Share
|
-
|
-
|
2,083,333
|
208
|
49,792
|
-
|
50,000
|
|||||||||||||||
Commissions
on Sale of Common Stock
|
-
|
-
|
-
|
-
|
(
5,000
|
)
|
-
|
(
5,000
|
)
|
|||||||||||||
Net
Loss for the Period
|
-
|
-
|
-
|
-
|
-
|
(210,104
|
)
|
(210,104
|
)
|
|||||||||||||
Balance
- Julne 30, 2006
|
$
|
-
|
$
|
-
|
16,293,333
|
$
|
1,629
|
$
|
44,792
|
$
|
(210,104
|
)
|
$
|
(163,683
|
)
|
Cash
Flows from Operating Activities
|
|
|||
|
|
|||
Net
Loss
|
$
|
(210,104
|
)
|
|
Adjustments
to Reconcile Net Loss to Net Cash
|
||||
(Used)
in Operating Activities:
|
||||
Amortization
of Deferred Finance Costs
|
28,264
|
|||
Common
Stock Issued for Software Development
|
970
|
|||
|
||||
Changes
in Assets and Liabilities
|
||||
Increase
in Accrued Expenses
|
28,482
|
|||
Increase
in Accrued Liquidated Damages
|
16,667
|
|||
|
||||
Net
Cash (Used) in Operating Activities
|
(135,721
|
)
|
||
|
||||
Cash
Flows from Investing Activities
|
-
|
|||
|
||||
Cash
Flows from Financing Activities
|
||||
Proceeds
from Issuance of 7% Convertible Debentures
|
500,000
|
|||
Payments
of Deferred Finance Costs
|
(185,000
|
)
|
||
Proceeds
from Issuances of Common Stock
|
50,000
|
|||
Expense
on Sale of Common Stock
|
(
5,000
|
)
|
||
|
||||
Net
Cash Provided by Financing Activities
|
360,000
|
|||
|
||||
Increase
in Cash
|
224,279
|
|||
|
||||
Cash
Beginning of Period
|
-
|
|||
|
||||
Cash
End of Period
|
$
|
224,279
|
||
|
||||
Supplemental
Cash Flow Information:
|
||||
Cash
Paid for Interest
|
$
|
-
|
||
Cash
Paid for Income Taxes
|
$
|
250
|
||
|
||||
Supplemental
Non-Cash Financing Activities:
|
||||
Subscription
Receivable on Sale of Common Stock
|
$
|
451
|
Note 1 - |
Summary
of Significant Accounting
Policies
|
Note 1 - |
Summary
of Significant Accounting Policies
(Continued)
|
Note 1 - |
Summary
of Significant Accounting Policies
(Continued)
|
Note 2 - |
Going
Concern
|
Note 3 - |
Subscriptions
Receivable
|
Note 4 - |
7%
Convertible Debentures
|
Note 5 - |
Common
Stock
|
Note 6 - |
Preferred
Stock
|
Note 7 - |
Commitments
and Contingencies
|
Note 8 - |
Income
Taxes
|
Note 9 - |
Subsequent
Events
|
SEC
registration fee
|
$
|
74.09
|
||
Printing
and engraving expenses
|
$
|
10,000.00
|
||
Legal
fees and expenses
|
$
|
50,000.00
|
||
Accounting
fees and expenses
|
$
|
25,000.00
|
||
Miscellaneous
expenses
|
$
|
5,000.00
|
||
Total
|
$
|
90,074.09
|
Exhibit
Number
|
Description
of Exhibit
|
3.1
|
Certificate
of Incorporation.
|
3.2
|
By-Laws.
|
4.1
|
Securities
Purchase Agreement dated March 10, 2006 by and between the Company
and
Alpha Capital Aktiengesellschaft, Double U Master Fund LP, Tobanna
Enterprises Corp., and CMS Capital
|
4.2
|
Form
of Debenture dated March 10, 2006
|
4.3
|
Registration
Rights Agreement dated March 10, 2006 by and between the Company
and Alpha
Capital Aktiengesellschaft, Double U Master Fund LP, Tobanna Enterprises
Corp., and CMS Capital
|
4.4
|
Security
Agreement dated March 10, 2006 by and between the Company and Alpha
Capital Aktiengesellschaft, Double U Master Fund LP, Tobanna Enterprises
Corp., and CMS Capital and Michael Hartstein, as collateral
agent
|
4.5
|
Collateral
Agent Agreement dated March 10, 2006 by and between the Company and
Alpha
Capital Aktiengesellschaft, Double U Master Fund LP, Tobanna Enterprises
Corp., and CMS Capital and Michael Hartstein, as collateral
agent
|
5.1
|
Opinion
of Sichenzia Ross Friedman Ference LLP
|
10.1
|
Asset
Purchase Agreement by and between Isidore Sobkowski and the Company
dated
March 6, 2006
|
10.2
|
Voting
Agreement by and between Michael Hartstein, Solomon Lax and Isidore
Sobkowski
|
23.1
|
Consent
of WOLINETZ, LAFAZAN & COMPANY, P.C.
|
23.2
|
Consent
of Sichenzia Ross Friedman Ference LLP (contained in Exhibit
5.1)
|
APRECIA, INC. | ||
|
|
|
By: | /s/ Isidore Sobkowski | |
Isidore Sobkowski |
||
President
and
Chief Executive Officer (Principal Executive Officer, Principal Accounting
Officer
and Principal Financial Officer)
|
SIGNATURE
|
TITLE
|
DATE
|
||
/s/
Isidore Sobkowski
Isidore
Sobkowski
|
President,
Chief Executive Officer and Director (Principal Executive Officer,
Principal Accounting Officer and Principal Financial
Officer)
|
November
13, 2006
|
||
/s/
Solomon Lax
Solomon
Lax
|
Director
|
November
13, 2006
|