Delaware
|
02-0575232
|
|
(State
or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S.
Employer Identification Number)
|
Part
I.
|
Page
|
|
Item 1.
|
Business
|
1
|
Item 2.
|
Description
of Property
|
15
|
Item 3.
|
Legal
Proceedings
|
15
|
Item 4.
|
Submission
of Matters to a Vote of Security Holders
|
15
|
Part
II.
|
|
|
Item 5.
|
Market
for Registrant’s Common Equity, Related Stockholder Matters, and Issuer
Purchases of Equity Securities
|
15
|
Item 6.
|
Selected
Financial Data
|
16
|
Item 7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
16
|
Item 8.
|
Financial
Statements and Supplementary Data
|
19
|
Item 9.
|
Changes
In and Disagreements with Accountants on Accounting and Financial
Disclosure
|
33
|
Item 9A(T).
|
Controls
and Procedures
|
33
|
Item 9B.
|
Other
Information
|
34
|
Part
III.
|
|
|
Item 10.
|
Directors,
Executive Officers and Corporate Governance
|
34
|
Item 11.
|
Executive
Compensation
|
36
|
Item 12.
|
Security
Ownership of Certain Beneficial Owners and Management
|
36
|
Item 13.
|
Certain
Relationships and Related Transactions, and Director
Independence
|
38
|
Item 14.
|
Principal
Accounting Fees and Services
|
38
|
Item 15.
|
Exhibits,
Financial Statement Schedule
|
38
|
Signatures
|
|
39
|
Exhibits
Index
|
|
40
|
Certifications
|
|
|
●
|
hereUareEngine, Search - a
powerful and intelligent search tool that efficiently delivers applicable
information from the Internet in a simple and precise presentation through
its unique hereUare patent pending "relevancy search bar".
hereUareEngine is capable of searching over 10 billion indexed pages,
providing powerful information and is designed for all types of users from
novice to expert. hereUare had indexed 10 billion pages but
discovered that a majority of the indexed pages were duplicates or
contained SPAM . hereUare has developed a methodology to filter pages as
they are indexed in order to help avoid (but not entirely eliminate)
duplicate pages and SPAM. hereUare is the process of indexing
pages using this filter and thus has not yet achieved its goal of a 10
billion page index but plans to do so during 2009, although no assurance
of success can be given.
|
●
|
hereUareClassifies, Classified
Advertising - our centralized online marketplace for
merchandise, jobs, real estate, automotive, etc. in local communities
around the world for the buying and selling of
items.
|
●
|
hereUareMessage, e-Messaging &
Groupware - a hereUare web-based office tool that allows for
group collaboration through emails, group emails, and shared calendars and
tasks, using a concentrated common interfaced network and
database.
|
●
|
Dynamically
generated graphical indicators of relevant content - hereUare provides a
unique way to indicate the level of relevancy of a search result. This
allows the user to easily identify the most relevant search data results
rather than reading a long list of content that is potentially not of
interest or relevant to the user.
|
●
|
Large
search library – will consist of over 10 billion indexed pages once
hereUare completes the indexing process. hereUare had believed
it already had indexed over 10 billion pages but discovered that a
majority of the pages were duplications or contained spam and as a result,
hereUare has less than one billion indexed pages currently. Our
hereUare Engine search product requires us to increase the number of
indexed pages to over 10 billion in order to be effective. As a
result, we have developed and implemented some new technologies in order
to eliminate the page duplications and spam that existed in our prior
number of indexed pages and we are crawling or spidering the web in order
to increase the number of indexed pages. We are not planning to
offer our hereUare search engine product until after we have indexed close
to 10 billion pages for our hereUare Engine software to search. When
complete, this will be an entry barrier to any new search engine. It
is time-consuming and expensive to build a library of billions of indexed
pages for a competitive result and there can be no assurance of when hUa
will have a complete library.
|
●
|
More
efficient scaling algorithm - requiring significantly less servers
compared to the competition in the market when indexing the same number of
pages. This is achieved through advanced proprietary software and
indexing algorithms.
|
●
|
High
relevancy - supports sophisticated search queries allowing nested Boolean
format for experts, and also supports simple step-by-step searches,
leading novices through categories to the most relevant information they
seek.
|
●
|
Search
query – hereUare Engine query results include all common formats such as
PDF, Microsoft Word, Power Point, Excel and Postscript
documents.
|
●
|
Peer-to-peer
connection - resulting in low voice
delay.
|
●
|
Direct
Inward Dialing (DID) - offering maximum privacy by allowing users from
outside the hereUare network to reach a hereUare VoIP user without the
need to give out any personal
number.
|
●
|
Follow-me-everywhere
call forwarding capability - allowing users to direct calls to their land
or mobile number, even when the computer is not
online.
|
●
|
Click-to-Call
- a patent-pending hereUare engineered technology that is capable of
detecting a phone number in a web browser and allowing the hereUareVoice
or VoIP user to initiate a call by simply clicking on the
number.
|
●
|
Multiple
options - from a simple basic service plan to a premium
package
|
●
|
Self-managed
listings - with simple step-by-step walkthrough and visual ad
displays
|
●
|
Priority
Ranking - options which keep an ad on the top of the category in which it
is posted to improve response and generate more advertising
exposure
|
●
|
Differentiating
capability - allow listings with a variety of font options for ad
text
|
●
|
Sponsored
Links - in any category, help businesses stand
out
|
●
|
Granted
February 2006 - method and system for simulating multiple independent
client devices in a wired or wireless network;
|
●
|
Granted
February 2007 - system for distributed network authentication and access
control.
|
●
|
limit
shareholders' ability to elect or remove
directors;
|
●
|
delay
or prevent a change in the control;
|
●
|
impede
a merger, consolidation, take over or other transaction involving the
Company; or
|
●
|
discourage
a potential acquirer from making a tender offer or otherwise attempting to
obtain control of the Company.
|
Year
|
Expense
|
Sub-lease
|
Net
Expense
|
|||||||||
2010
|
$
|
93,666
|
$
|
93,666
|
$
|
-
|
||||||
2011
|
$
|
43,458
|
$
|
43,458
|
$
|
-
|
2010:
|
$ | 294,100 | ||
2011:
|
$ | 304,300 | ||
2012:
|
$ | 314,500 | ||
Thereafter:
|
$ | 52,700 |
●
|
The
intrinsic value method, or APB Opinion No. 25, to account for our common
stock incentive awards; and
|
|
●
|
We
record an allowance for credit losses based on estimates of customers'
ability to pay. If the financial condition of our customers were to
deteriorate, additional allowances may be required.
|
|
●
|
The
Company expects to apply the provisions of Statement of Position 97-2 as
well as SAB 101, to account for the sales of software and related services
that may be bundled with the software
license.
|
HEREUARE, INC. AND
SUBSIDIARIES
|
(FORMERLY PEOPLENET INTERNATIONAL
CORPORATION)
|
CONSOLIDATED BALANCE
SHEETS
|
DECEMBER
31,
|
||||||||
2009
|
2008
|
|||||||
ASSETS
|
||||||||
CURRENT
ASSETS:
|
||||||||
Cash and cash
equivalents
|
$
|
24,393
|
6,900
|
|||||
Account
receivable
|
439
|
106
|
||||||
Prepaid
expenses
|
8,753
|
35,301
|
||||||
Total Current
Assets
|
33,585
|
42,307
|
||||||
PROPERTY AND EQUIPMENT-NET
|
389,056
|
701,289
|
||||||
INTANGIBLE
ASSETS-NET
|
57,343
|
206,608
|
||||||
DEPOSITS
|
50,000
|
185,293
|
||||||
Total Non-Current
Assets
|
496,398
|
1,093,190
|
||||||
TOTAL
ASSETS
|
$
|
529,983
|
1,135,496
|
|||||
LIABILITIES AND STOCKHOLDERS'
EQUITY/(DEFICIT)
|
||||||||
CURRENT
LIABILITIES:
|
||||||||
Accounts payable and accrued
expenses
|
$
|
1,111,528
|
511,472
|
|||||
Deferred
revenue
|
9,390
|
12,390
|
||||||
Due to related
parties
|
257,683
|
309,070
|
||||||
Short term notes payable,
net
|
109,445
|
-
|
||||||
Convertible notes
payable
|
120,000
|
-
|
||||||
Shares to be
issued
|
64,000
|
45,000
|
||||||
Total current liabilities
|
1,617,046
|
877,932
|
||||||
STOCKHOLDERS'
EQUITY:
|
||||||||
Common stock, $0.0001 par
value;
|
||||||||
100,000,000 shares
authorized;
|
||||||||
34,678,813 shares issued and
34,578,813 shares outstanding
as of December 31, 2009 and 34,338,313 shares issued and outstanding as of December 31, 2008. |
3,468
|
3,454
|
||||||
Treasury Stock;
100,000
shares
|
(10
|
)
|
(10
|
)
|
||||
Additional paid in
capital
|
85,399,233
|
77,466,062
|
||||||
Subscription
receivable
|
-
|
(8,000
|
)
|
|||||
Prepaid
consulting
|
(33,937
|
)
|
-
|
|||||
Accumulated
deficit
|
(86,457,703
|
)
|
(77,205,829
|
)
|
||||
Translation
Adjustment
|
1,886
|
1,886
|
||||||
Total stockholders'
equity/(deficit)
|
(1,087,062
|
)
|
257,563
|
|||||
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$
|
529,983
|
1,135,496
|
HEREUARE, INC. AND
SUBSIDIARIES
|
(FORMERLY PEOPLENET INTERNATIONAL
CORPORATION)
|
CONSOLIDATED STATEMENT OF
OPERATIONS
|
FOR
THE YEARS ENDED DECEMBER 31,
|
||||||||
2009
|
2008
|
|||||||
NET REVENUE
|
$ | 5,575 | $ | 27,737 | ||||
COST OF GOODS
SOLD
|
2,567 | 32,485 | ||||||
GROSS
PROFIT/(LOSS)
|
3,009 | (4,748 | ) | |||||
OPERATING
EXPENSES
|
||||||||
Depreciation and
amortization
|
333,570 | 415,575 | ||||||
Rent
|
590,241 | 402,423 | ||||||
Salaries and payroll
taxes
|
183,321 | 1,106,375 | ||||||
Professional
fees
|
356,452 | 934,742 | ||||||
Impairment of
advance
|
- | 170,000 | ||||||
Impairment of property and
equipment
|
105,851 | - | ||||||
Impairment of
investment
|
- | 1,000,000 | ||||||
General
and administrative expenses
|
7,709,883 | 4,122,645 | ||||||
Total
operating expenses
|
9,224,317 | 8,151,760 | ||||||
LOSS FROM
OPERATIONS
|
(9,221,308 | ) | (8,156,508 | ) | ||||
OTHER INCOME
(EXPENSE)
|
||||||||
Interest
income
|
121 | 2,167 | ||||||
Interest
expense
|
(31,699 | ) | - | |||||
Gain on sale of
property
|
2,613 | - | ||||||
Total Other
Income/(loss)
|
(28,966 | ) | 2,167 | |||||
LOSS BEFORE INCOME
TAXES
|
(9,250,274 | ) | (8,154,341 | ) | ||||
INCOME TAX
|
1,600 | 2,520 | ||||||
NET LOSS
|
(9,251,874 | ) | (8,156,861 | ) | ||||
OTHER
COMPREHENSIVE INCOME
|
||||||||
Foreign
currency translation gain
|
- | 1,886 | ||||||
NET COMPREHENSIVE
LOSS
|
$ | (9,251,874 | ) | $ | (8,154,975 | ) | ||
*BASIC AND DILUTED WEIGHTED
AVERAGE NUMBER OF
|
||||||||
COMMON STOCK
OUTSTANDING
|
34,453,892 | 34,340,393 | ||||||
BASIC AND DILUTED NET LOSS PER
SHARE
|
$ | (0.27 | ) | $ | (0.24 | ) |
*
|
Weighted
average number of shares used to compute basis and diluted loss per share
is the same since
the effect of dilutive securities is
anti-dilutive
|
HEREUARE, INC. AND
SUBSIDIARIES
|
|||||||||||||||||||
(formerly known as PeopleNet
International Corporation)
|
|||||||||||||||||||
CONSOLIDATED STATEMENT OF
STOCKHOLDERS' EQUITY
|
|||||||||||||||||||
FOR THE YEARS ENDED DECEMBER 31,
2009 AND 2008
|
Common
stock
|
Treasury
stock
|
Other
|
Total
|
||||||||||||||||
Number
of
|
Number
of
|
Additional
|
Subscription
|
Prepaid
|
comprehensive
|
Accum.
|
stockholders'
|
||||||||||||
shares
|
Amount
|
shares
|
Amount
|
paid
in capital
|
Receivable
|
Consulting
|
income
|
deficit
|
equity
(deficit)
|
||||||||||
Balance
as of January 1, 2008
|
34,239,864
|
$
|
3,424
|
-
|
$
|
-
|
$
|
71,606,663
|
$
|
(53,000)
|
$
|
-
|
$
|
-
|
$
|
(69,048,968)
|
$
|
2,508,119
|
|
Shares
issued for cash
|
298,449
|
30
|
-
|
-
|
2,685,998
|
-
|
-
|
-
|
-
|
2,686,028
|
|||||||||
Cash
received for subscription receivable from
2007
|
-
|
-
|
-
|
-
|
-
|
45,000
|
-
|
-
|
-
|
45,000
|
|||||||||
Purchase
of treasury shares
|
-
|
-
|
100,000
|
(10)
|
(49,990)
|
-
|
-
|
-
|
-
|
(50,000)
|
|||||||||
Option
expenses
|
-
|
-
|
-
|
-
|
3,223,391
|
-
|
-
|
-
|
-
|
3,223,391
|
|||||||||
Foreign
currency translation
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,886
|
-
|
1,886
|
|||||||||
Net
loss for the year
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(8,156,861)
|
(8,156,861)
|
||||||||||
Balance
as of December 31, 2008
|
34,538,313
|
3,454
|
100,000
|
(10)
|
77,466,062
|
(8,000)
|
-
|
1,886
|
(77,205,829)
|
257,563
|
|||||||||
Shares
issued for cash
|
140,500
|
14
|
-
|
-
|
315,986
|
-
|
-
|
-
|
-
|
316,000
|
|||||||||
Written
off of subscription receivable
|
-
|
-
|
-
|
-
|
-
|
8,000
|
-
|
-
|
-
|
8,000
|
|||||||||
Granted
of warrants for notes payable
|
-
|
-
|
-
|
-
|
74,206
|
-
|
-
|
-
|
-
|
74,206
|
|||||||||
Granted
of warrants for services
|
-
|
-
|
-
|
-
|
38,420
|
-
|
(33,937)
|
-
|
-
|
4,483
|
|||||||||
Warrants
issued for cash
|
-
|
-
|
-
|
-
|
318,131
|
-
|
-
|
-
|
-
|
318,131
|
|||||||||
Option
expenses
|
-
|
-
|
-
|
-
|
7,186,428
|
-
|
-
|
-
|
-
|
7,186,428
|
|||||||||
Net
loss for the year
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(9,251,874)
|
(9,251,874)
|
|||||||||
Balance
as of December 31, 2009
|
34,678,813
|
$
|
3,468
|
100,000
|
$
|
(10)
|
85,399,233
|
$
|
-
|
$
|
(33,937)
|
$
|
1,886
|
$
|
(86,457,703)
|
$
|
(1,087,062)
|
HEREUARE, INC. AND
SUBSIDIARIES
|
(FORMERLY PEOPLENET INTERNATIONAL
CORPORATION)
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
FOR
THE YEARS ENDED DECEMBER 31,
|
||||||||
2009
|
2008
|
|||||||
CASH FLOWS FROM OPERATING
ACTIVITIES
|
||||||||
Net loss
|
$ | (9,251,874 | ) | $ | (8,156,861 | ) | ||
Adjustments to reconcile
net loss to net cash
used in operating activities:
|
||||||||
Depreciation and
amortization
|
333,570 | 415,575 | ||||||
Issuance of stock options for
compensation
|
7,186,428 | 3,223,391 | ||||||
Amortization of warrants expense
for services
|
267,614 | - | ||||||
Amortization of warrant expense
for notes payable
|
26,251 | - | ||||||
Impairment of property and
equipment
|
105,851 | - | ||||||
Impairment of an investment and
advances
|
- | 1,170,000 | ||||||
Write off of subscription
receivable
|
8,000 | - | ||||||
Gain on sale of
property
|
(2,613 | ) | - | |||||
(Increase) decrease in current
assets:
|
||||||||
Account
receivable
|
(333 | ) | - | |||||
Inventory
|
- | 21,811 | ||||||
Prepaid
expense
|
26,548 | 130,356 | ||||||
Deposits
|
135,293 | (78,303 | ) | |||||
Increase (decrease) in current
liabilities:
|
||||||||
Accounts payable and accrued
expenses
|
545,056 | 112,033 | ||||||
Deferred
Revenue
|
(3,000 | ) | 12,144 | |||||
Net cash used in operating
activities
|
(623,210 | ) | (3,149,853 | ) | ||||
CASH FLOWS FROM INVESTING
ACTIVITIES
|
||||||||
Proceeds from sale of
property
|
27,000 | - | ||||||
Purchase of property and
equipment
|
(1,100 | ) | (437,079 | ) | ||||
Purchase of
software
|
(1,210 | ) | (70,471 | ) | ||||
Leasehold
Improvement
|
- | (89,768 | ) | |||||
Net cash provide by/(used in)
investing activities
|
24,690 | (597,318 | ) | |||||
CASH FLOWS FROM FINANCING
ACTIVITIES
|
||||||||
Proceeds from/payment to related
parties
|
(51,387 | ) | 320,318 | |||||
Proceeds from subsciption
receivable
|
- | 45,000 | ||||||
Proceeds from short term notes
payable
|
157,400 | - | ||||||
Proceeds from convertible note
payable
|
120,000 | - | ||||||
Proceeds from issuance of common
stock for cash and shares to be issued
|
335,000 | 2,731,028 | ||||||
Proceeds from
warrants
|
55,000 | - | ||||||
Repurchase treasury
stock
|
- | (50,000 | ) | |||||
Net cash provided by
financing activities
|
616,013 | 3,046,346 | ||||||
EFFECT
OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
- | 1,887 | ||||||
NET INCREASE (DECREASE) IN CASH
& CASH EQUIVALENTS
|
17,493 | (698,939 | ) | |||||
CASH & CASH EQUIVALENTS,
BEGINNING BALANCE
|
6,900 | $ | 705,839 | |||||
CASH & CASH EQUIVALENTS,
ENDING BALANCE
|
$ | 24,393 | $ | 6,900 | ||||
SUPPLEMENTAL
DISCLOSURES:
|
||||||||
Income tax
payments
|
$ | 1,600 | $ | 2,520 | ||||
Interest
payments
|
$ | - | $ | - | ||||
NONCASH SUPPLEMENTAL
DISCLOSURES:
|
||||||||
Warrants issued for notes
payable
|
$ | 74,206 | $ | - | ||||
Warrants issued for
services
|
$ | 38,420 | $ | - |
2009
|
2008
|
|||||||
Equipment
|
$
|
836,812
|
$
|
934,964
|
||||
Furniture
|
141,078
|
141,078
|
||||||
Leasehold
improvement
|
-
|
89,768
|
||||||
Total
Property & Equipment
|
977,890
|
1,165,810
|
||||||
Less
accumulated depreciation
|
(588,834
|
) |
(464,522
|
)
|
||||
Net
Property & Equipment
|
$
|
389,506
|
$
|
701,289
|
2009
|
2008
|
|||||||
Software
solutions
|
$
|
548,122
|
$
|
546,912
|
||||
Domain
name
|
32,321
|
32,321
|
||||||
Total
Intangible Assets
|
580,443
|
579,233
|
||||||
Less
accumulated amortization
|
(523,100
|
)
|
(372,625
|
)
|
||||
Net
Intangible Assets
|
$
|
57,343
|
$
|
206,608
|
Amortization
|
||||
2010:
|
$
|
49,825
|
||
2011:
|
$
|
7,518
|
2009
|
2008
|
|||||||
Rent
deposit – Mountain View
|
$
|
-
|
$
|
114,750
|
||||
Rent
deposit – Los Angeles
|
-
|
2,189
|
||||||
Rent
deposit – Vietnam
|
-
|
10,000
|
||||||
Attorney
retainer deposit
|
50,000
|
50,000
|
||||||
Others
|
-
|
8,354
|
||||||
Total
Deposits
|
$
|
50,000
|
$
|
185,293
|
2009
|
2008
|
|||||||
Accounts
payable
|
$
|
869,349
|
$
|
378,873
|
||||
Accrued
litigation
|
72,000
|
72,000
|
||||||
Other
accrued expenses
|
115,179
|
65,600
|
||||||
Total
accounts payable and accrued expenses
|
$
|
1,056,528
|
$
|
511,472
|
2009
|
2008
|
|||||||
The United States Tax
Rates-Federal
|
(34 | %) | (34 | %) | ||||
State Tax
|
(6 | %) | (6 | %) | ||||
Vietnam Tax
Rate
|
(25 | %) | (25 | %) | ||||
Changes in valuation
allowance
|
65 | % | 65 | % | ||||
Tax expense at actual
rate
|
- | - |
December
31,
|
||||||||
2009
|
2008
|
|||||||
Current
tax expense:
|
||||||||
Federal
|
$ | - | $ | - | ||||
State
|
1600 | 2,520 | ||||||
Vietnam
|
- | - | ||||||
Total
current
|
$ | 1,600 | $ | 2,520 | ||||
Deferred
tax
|
||||||||
Federal
|
2,800,000 | $ | 2,695,000 | |||||
State
|
494,000 | 449,000 | ||||||
Vietnam
Deferred Tax
|
91,000 | 65,000 | ||||||
Total
deferred tax asset (liabilities)
|
$ | 3,385,000 | $ | 3,209,000 | ||||
Valuation
allowance
|
(3,385,000 | ) | (3,209,000 | ) | ||||
Net
deferred tax asset
|
- | - | ||||||
Tax
expense
|
$ | 1,600 | $ | 2,520 |
12/31/2009
|
12/31/2008
|
|||||||
Deferred
tax asset
|
14,327,000 | 10,663,000 | ||||||
Valuation
allowance
|
(14,327,000 | ) | (10,663,000 | ) | ||||
$ | - | $ | - |
Year
|
Expense
|
Sub-lease
|
Net
Expense
|
|||||||||
2010
|
$
|
93,666
|
$
|
93,666
|
$
|
-
|
||||||
2011
|
$
|
43,458
|
$
|
43,458
|
$
|
-
|
2010:
|
$
|
294,100
|
||
2011:
|
$
|
304,300
|
||
2012:
|
$
|
314,500
|
||
Thereafter:
|
$
|
52,700
|
Weighted
|
||||||||||||
|
Average
|
Aggregate
|
||||||||||
Exercise
|
Intrinsic
|
|||||||||||
Under
Plan
|
Price
|
Value
|
||||||||||
Balance,
December 31, 2008
|
5,383,999
|
0.97
|
$
|
5,222,479
|
||||||||
Granted
|
||||||||||||
Lapsed
|
688,000
|
2.49
|
||||||||||
Exercised
|
0
|
-
|
||||||||||
Balance,
December 31, 2009
|
4,695,000
|
0.74
|
-
|
Options
|
||||||||||||||
Outstanding
|
Options Exercisable
|
|||||||||||||
Weighted
|
||||||||||||||
Average
|
Weighted
|
Weighted
|
||||||||||||
Remaining
|
Average
|
Average
|
||||||||||||
Number
|
Contractual
|
Exercise
|
Number
|
Exercise
|
||||||||||
Outstanding
|
Life
|
Price
|
Exercisable
|
Price
|
||||||||||
Options
|
4,695,999
|
2.18
|
$
|
0.74
|
4,562,032
|
$
|
0.64
|
Weighted
|
||||||||||||
Average
|
Aggregate
|
|||||||||||
Exercise
|
Intrinsic
|
|||||||||||
Price
|
Value
|
|||||||||||
Balance,
December 31, 2008
|
750,000
|
$
|
6.00
|
$
|
-
|
|||||||
Granted
|
810,500
|
8.26
|
-
|
|||||||||
Exercised
|
-
|
-
|
-
|
|||||||||
Balance,
December 31, 2009
|
1,560,500
|
$
|
6.66
|
$
|
-
|
Warrants
|
||||||||||||||||||||
Outstanding
|
|
|||||||||||||||||||
Weighted
|
Warrants
Exercisable
|
|||||||||||||||||||
Average
|
Weighted
|
Weighted
|
||||||||||||||||||
Remaining
|
Average
|
Average
|
||||||||||||||||||
Number
|
Contractual
|
Exercise
|
Number
|
Exercise
|
||||||||||||||||
Outstanding
|
Life
|
Price
|
Exercisable
|
Price
|
||||||||||||||||
Warrants
|
1,560,500
|
3.01
|
$
|
6.66
|
1,472,167
|
$
|
6.91
|
Name
|
Age
|
Position
with the Company
|
Benedict
Van
|
49
|
Chief
Executive Officer, Chief Financial Officer, and Chairman of the Board of
Directors
|
James
McCargo
|
58
|
Director
|
David
A. Brewer
|
57
|
Director
|
Name
|
Position
|
Year
|
Salary
|
Directors
Fees Earned
or Paid in
Cash
|
Option Awards
(1)
|
Other
Compensation
|
Total
|
||||||
Benedict
|
Chief Executive Officer
& Chief
|
2008
|
$
|
none
|
|
None
|
None
|
None
|
none
|
||||
Van
|
Financial
Officer (4) & Chairman of
|
|
|||||||||||
the
Board & Director
|
2008
|
$
|
80,000
|
(2)
|
None
|
None
|
None
|
$
|
80,000
|
||||
Anthony
K .
|
Chief
Financial Officer & Secretary
|
2009
|
$
|
none
|
None
|
None
|
None
|
none
|
|||||
Chan
(3)
|
&
Director
|
||||||||||||
2008
|
$
|
100,000
|
None
|
None
|
None
|
$
|
100,000
|
||||||
James
McCargo
|
Director
|
2009
|
None
|
None
|
None
|
$10,000
|
$
|
10,000
|
|||||
2008
|
None
|
None
|
None
|
$10,000
|
$10,000
|
||||||||
David
A. Brewer
|
Director
|
2009
|
None
|
None
|
None
|
None
|
None
|
||||||
Gregory
B. Pelling (4)
|
Director
|
2008
|
None
|
None
|
None
|
None
|
None
|
Name
|
Number of
securities
underlying
unexercised options
Exercisable
|
Number of securities
underlying
unexercised options
Unexercisable
|
Option
Exercise Price
|
Option
Expiration Date
|
|||||||||
Benedict
Van, Chief Executive Officer, Chairman of the Board, and
Director
|
2,699,999
|
0
|
$
|
0.08
|
5/18/2012
|
●
|
all
persons known by us to be beneficial owners of 5% or more of our
outstanding shares of $0.0001 par value Common
Stock;
|
●
|
each
director and officer; and
|
●
|
all
directors and officers as a group.
|
Name and Address of Beneficial Owner (6)
|
Number of Shares of
Common Stock (7)
|
Percentage of
Common Stock
Ownership*
|
||||||
ECapital
Group, Inc. (1)
|
13,769,886
|
39.71
|
%
|
|||||
PeopleWeb
Communications, Inc. (1)
|
3,060,229
|
8.82
|
%
|
|||||
Adel
M. Ali
|
3,260,000
|
9.40
|
%
|
|||||
Benedict
Van (director and executive officer) (1)
|
2,886,358
|
(2)
|
7.72
|
%
|
||||
James
McCargo (director)
|
392,833
|
(3)
|
1.15
|
%
|
||||
David
A. Brewer (director)
|
391,500
|
(4)
|
1.13
|
%
|
||||
All
Directors and Officers as a group (5 persons)
|
3,919,837
|
(5)
|
10.38
|
%
|
(c)
|
||||||||||||
Number of
|
||||||||||||
securities remaining
|
(a)
|
|||||||||||
available for
|
Number of
|
(b)
|
||||||||||
future issuance
|
securities to
|
Weighted
|
||||||||||
under equity
|
be issued upon
|
average exercise
|
||||||||||
compensation
|
exercise of
|
price of
|
||||||||||
plans(excluding
|
outstanding
|
outstanding
|
||||||||||
securities reflected
|
options, warrants
|
options, warrants
|
||||||||||
Plan Category
|
in column(a))
|
and rights
|
and rights
|
|||||||||
Equity
compensation plans approved by security holders
|
-
|
-
|
-
|
|||||||||
Equity
compensation plans not approved by security holders
|
13,616,001
|
6,256,499
|
$
|
2.22
|
Description
of Services
|
2009
|
2008
|
||||||
Audit
Fees
|
$
|
45,500
|
$
|
45,500
|
||||
Audit-Related
Fees
|
-
|
-
|
||||||
Tax
Fees
|
-
|
-
|
||||||
All
Other Fees
|
-
|
-
|
||||||
Total
|
$
|
45,500
|
$
|
45,500
|
By:
|
/s/
Benedict Van
|
Signature
|
Title
|
Date
|
||
By:
/s/ Benedict Van
|
Chief
Executive Officer (Principal Executive Officer),
|
April
15, 2010
|
||
Benedict
Van
|
Chief Financial
Officer and Chairman of the Board of Directors
|
|||
By:
/s/ James McCargo *
|
Member
of the Board of Directors
|
April
15, 2010
|
||
James
McCargo
|
||||
By:
/s/ David A. Brewer *
|
Member
of the Board of Directors
|
April
15, 2010
|
||
David
A. Brewer
|
||||
*
By Benedict Van, attorney-in-fact
|
Exhibit
No.
|
Exhibit
Description
|
|
3.1(1)
|
Certificate
of Incorporation, as amended on July 24, 2001
|
|
3.1(5)
|
Certificate
of Ownership and Merger of PeopleNet Name Change Subsidiary, Inc. with and
into PeopleNet International Corporation
|
|
3.2(1)
|
By-laws
|
|
4.1(1)
|
2001
Stock Option Plan
|
|
4.2(1)
|
2001
Non-Employee Director Stock Option Plan
|
|
4.3(1)
|
2001
Stock Incentive Plan
|
|
10.1(1)
|
Agreement
between American Champion Media & American Champion Entertainment
dated as of July 10, 2001
|
|
10.2(1)
|
Agreement
among ACEI, American Champion Media, ECapital Group & Anthony Chan,
dated as of June 20, 2001
|
|
10.3(1)
|
Agreement
between American Champion Media & World Channel dated as of December
27, 2000
|
|
10.4(1)
|
Agreement
between American Champion Media & Brighter Child Interactive dated as
of September 30, 1999
|
|
10.5(1)
|
Agreement
between American Champion Media & Prestige Toys Corp dated as of
October 13, 1999
|
|
10.6(2)
|
Agreement
- Sale of Assets between ECapital Group & PeopleNet International
dated March 21, 2002
|
|
10.7(2)
|
Agreement
- Sale of Assets between PeopleNet Corporation & PeopleNet
International dated March 21, 2002
|
|
10.8(3)
|
Lease
Agreement with CarrAmerica Techmart, LLC
|
|
10.9(4)
|
Agreement
and Plan of Merger with hereUare Communications, Inc., dated August 25,
2006
|
|
10.10(6)
|
Lease
Agreement with 1061 Terra Bella Associates, LLC
|
|
21.0
(6)
|
Subsidiaries
of the registrant
|