PROSPECTUS SUPPLEMENT No. 1
Filed Pursuant to Rule 424 (b)(3)
(To Prospectus dated October 26, 2001)
Registration No. 333-72302
-----------------------------
USA TECHNOLOGIES, INC.
48,023,998 shares of Common Stock
-----------------------------
The third paragraph of the Selling Shareholders section of the
Prospectus is deleted and shall be replaced with the following new paragraph:
The number of shares that may be actually sold by the selling
shareholder will be determined by the selling shareholder. The selling
shareholders are under no obligation to sell all or any portion of the shares
offered, nor are the selling shareholders obligated to sell such shares
immediately under this Prospectus. Particular selling shareholders may not have
a preset intention of selling their shares and may offer less than the number of
shares indicated. Because the selling shareholder may sell all, some or none of
the shares of common stock that the selling shareholder holds, no estimate can
be given as to the number of shares of our common stock that will be held by the
selling shareholder upon termination of the offering. Shares of common stock may
be sold from time to time by the selling shareholders or by pledgees, donees,
transferees or other successors in interest.
The table entitled "2001-B Restricted Common Stock" appearing in the
Selling Shareholders section of the Prospectus is hereby deleted and replaced in
its entirety by the following new table. The new table reflects transfers of the
shares subsequent to the date of the Prospectus.
2001-B RESTRICTED COMMON STOCK
Beneficial Ownership
after Offering
Common Stock --------------------
Selling Shareholder Offered Hereby Number Percent
------------------- -------------- -------- ---------
Alexandra Antoinette Ferland U.G.M.A 134 0 *
Alex Consulting, Inc. (1) 100,000 2,086,000 1.88
Michelle H. Alvanos 2,334 0 *
Michelle H. Alvanos 5,000 0 *
Wayne A. Anderson 16,667 0 *
Charles W. Apple 30,000 0 *
Barry Arndt 167 0 *
John P. Ayers 40,000 0 *
Colleen Ayers 3,000 0 *
Daniel C. Ayers 1,334 0 *
Michael Bachich 225,000 0 *
John R. Bachich 100,000 0 *
Virginia S. Baltzell 3,334 0 *
Charles M. Barclay 15,000 0 *
Gunter J. Beyer(2) 16,667 60,834 *
David C. Blackburn 50,000 0 *
Joseph J. Bolitsky 106,667 0 *
Gary Bourassa 6,667 0 *
E. Douglas Brittain 13,334 0 *
Vernon Brittain 11,667 0 *
Vincent J. Calvarese 6,667 0 *
Ronald J. Cammarota 6,667 0 *
Jerrold Carl 50,000 0 *
Julie Carlson 132,000 0 *
Gordon S. Clausen 10,000 0 *
Diane Cloutier 15,000 0 *
Marc A. Cohen 70,000 0 *
Gino F. Colombo 16,667 0 *
Gino F. Colombo 6,667 0 *
Columbia Marketing Ltd 100,000 0 *
Gerard W. Cooney 15,000 0 *
Johanna Craven 4,167 0 *
William R. Crothers 5,000 0 *
Clifton B. Currin 33,334 0 *
William K. Curtis 66,667 0 *
David S. D'Angelo 43,334 0 *
Hrubala Associates, A Partnership 16,667 0 *
Sofia R. Din 20,000 0 *
Leo J. Dolan 13,334 0 *
Robert F. Dress 18,334 0 *
Howard P. Effron 25,000 0 *
Elliot Raymond Ferland U.G.M.A 134 0 *
Solomon Ellner 13,334 0 *
Anthony J. Fanelli 30,000 0 *
Kathleen Ferland 1,667 0 *
John S. Foster 26,667 0 *
Robert R. Frey 5,125 0 *
Margaret R. Geddis 3,334 0 *
Ronald C. Gibson 13,334 0 *
Charlotte Given(3) 30,000 80,000 *
Harriet Glickstein 30,000 0 *
Julius Golden 10,000 0 *
William M. Goldstein 20,000 0 *
Peter Grahm 58,334 0 *
Robert Gray 30,000 0 *
Dian Griesel(4) 46,667 93,334 *
Bruce H. Hale 11,667 0 *
Bill Halstenrud 15,000 0 *
Nancy Hansen 10,000 0 *
Devin Hansen 15,000 0 *
Nancy Hansen 187,334 0 *
Nancy Hansen 13,334 0 *
Cong. Sharit Hapleta 175,000 0 *
William F. Harrity, Jr. 63,334 0 *
Robert P. Hauptfuhrer Family Partnership 20,000 0 *
Jack M. Heald 11,667 0 *
Andrew B. Hebenstreit 23,334 0 *
Ann Hebenstreit 10,000 0 *
Beneficial Ownership
after Offering
Common Stock --------------------
Selling Shareholder Offered Hereby Number Percent
------------------- -------------- -------- ---------
Adele H. Hepburn(5) 333,334 1,958,866 1.76
Stephen P. Herbert(6) 56,410 934,974 *
Janet J. Hewes 15,000 0 *
AHP Holdings, LP 93,334 0 *
Michelle R. Hollenshead 4,167 0 *
David W. Hubbert 10,000 0 *
Nicholas Hudson 11,667 0 *
Mark J. Hudson 15,000 0 *
Gordon F. Hudson 15,000 0 *
Christine F. Hughes 5,834 0 *
Hull Overseas, Ltd 85,000 0 *
Steve Illes 100,000 0 *
Steve & Elizabeth Illes 1,000,000 0 *
Robert B. Jacoby 6,667 0 *
Jacquelline Rugart 5,000 0 *
George R. Jensen, Jr.(7) 56,410 1,185,256 1.07
William Robert Johnston 50,000 0 *
Donald R. Jones, Sr. 16,667 0 *
Thomas A. Katchur 100,000 0 *
Michael Katchur 15,000 0 *
Kaufman & Associates (8) 90,000 100,000 *
Kellie Nicole Padrick Trust 16,667 0 *
George H. Kilmarx 13,334 0 *
Harriette D. Klann 6,667 0 *
Shirley K. Knerr 15,000 0 *
Phillip S. Krombolz 33,334 0 *
Sara Labrum 167 0 *
Kate Labrum 167 0 *
Joe Labrum 167 0 *
Aaron Lehmann 13,334 0 *
Shelley Leroux 20,000 0 *
Warren D. Lewis 11,667 0 *
H. Mather Lippincott 1,667 0 *
Douglas M. Lurio(9) 50,000 328,713 *
Cornerstone Public Relations Group Inc.(10) 3,750 7,500 *
James P. MacCain 23,334 0 *
Robin H. Marchand 11,667 0 *
Aimee Marchand 2,500 0 *
Mariel Marchand 2,500 0 *
Kathleen J. Mason 153,334 0 *
G. Diehl Mateer, Jr. 11,667 0 *
Matthew Michael McDonough U.G.M.A 134 0 *
Charles A. Mayer 13,334 0 *
Thomas E. McCarty(11) 33,334 239,168 *
Robert G. McGarrah(12) 50,000 256,000 *
Peter J. McGuire 160,000 0 *
James F. Merriman 20,000 0 *
Michael W. Miles 20,000 0 *
Harley Miller 13,334 0 *
Barbara Howard Miller 18,334 0 *
George W. Moffitt, Jr. 45,000 0 *
Kenneth G. Molta 6,667 0 *
Robert H. Montgomery 13,334 0 *
Louis J. Muth 11,667 0 *
Elizabeth L. Nelson 50,000 0 *
Jeffrey M. Newhuis 53,334 0 *
Gregg J. Newhuis 293,334 0 *
Paul Nordin 6,667 0 *
George O'Connell 160,000 0 *
Susan Odell 23,334 0 *
Eric Pagh 15,000 0 *
Beneficial Ownership
after Offering
Common Stock --------------------
Selling Shareholder Offered Hereby Number Percent
------------------- -------------- -------- ---------
Michael A. Parker 13,334 0 *
Neil L. Parker 10,000 0 *
Mattie A. Perry 8,334 0 *
Larry R. Perry 4,167 0 *
Richard D. Perry 4,167 0 *
Douglas A. Perry 4,167 0 *
Helen Petlowany 3,334 0 *
Roy T. Pirhala 6,667 0 *
Randy J. Post 3,334 0 *
Robert H. Potts 11,667 0 *
Barbara L. Prescott 2,500 0 *
Charles W. Proctor III 1,667 0 *
Jeanne S. Quist 13,334 0 *
Paul Rafferty 33,334 0 *
Paul J. Rafferty 30,000 0 *
Rosamond P. Rankin 3,334 0 *
William Recktenwald 40,000 0 *
Harry Renner IV 67,500 0 *
John B. Rettew III 16,667 0 *
George B. Richardson 41,667 0 *
Robert Turner Rugart U.G.M.A 5,000 0 *
Gardiner Rogers 10,000 0 *
Robert Roggio 6,667 0 *
Wachovia Securities Inc John E Hamilton IRA 16,667 0 *
Peter S. Ruben 30,000 0 *
Karl F. Rugart 15,000 0 *
John S. Rupp 12,500 0 *
Charles Schwab & Co FBO Peter A Sands, IRA 13,334 0 *
William F. Schoenhut, Jr. 13,334 0 *
Richard Schonwald 250,000 0 *
Mary L. Scranton 11,667 0 *
Ben Sides 3,334 0 *
Robert G. Singer 13,334 0 *
Joseph Singer 13,334 0 *
Leslie Singer 11,667 0 *
Steven W. Smith 15,000 0 *
Richard O. Smith 10,000 0 *
Steven W. Smith SSB as IRA Custodian 30,000 0 *
Daniel E. Spealman 46,667 0 *
BB Securities Co FBO Daniel E Spealman IRA 29,167 0 *
Michael Steir 28,334 0 *
Homer N. Stewart 10,000 0 *
Priscilla Stitt 2,000 0 *
Edward B. Stokes 10,000 0 *
Marcus B. Stringfellow 40,000 0 *
Clark D. Stull, Jr. JTWROS 15,834 0 *
Jean Turner 3,334 0 *
William L. Van Alen, Jr.(10) 13,334 223,753 *
Virtual Concepts Corp. (13) 120,000 225,000 *
Lois M. Wagner 7,500 0 *
Robert E. Wagner 27,857 0 *
C. Anthony Wainright 15,000 0 *
John Weckerling 26,667 0 *
Henry W. Wessells III 1,667 0 *
Delta Western Company 150,000 0 *
Arthur L. Wheeler 33,334 0 *
Arthur A. Wiener 2,017 0 *
J. Edward Willard 26,667 0 *
William W. Sellers Rev Trust(14) 26,667 966,576 *
Margaret S. Williams 34,334 0 *
Robert H. Williams DDS Prof. Sharing Plan 50,000 0 *
Donald J. Zelenka 90,000 0 *
Ruth Zweigbaum 7,084 0 *
---------
TOTAL 7,395,439
=========
----------------
*Less than one percent(1%)
(1) Alex Consulting, Inc. is a financial consultant to the Company.
(2) Mr. Beyer is a public relations consultant to the Company.
(3) Ms. Given is a public relations consultant to the Company.
(4) Ms. Griesel was a public relations consultant to the Company.
(5) Ms. Hepburn is Director of Public Relations of the Company.
(6) Mr. Herbert is President of the Company.
(7) Mr. Jensen is Chairman and Chief Executive Officer of the Company.
(8) Kaufmann & Associates is a consultant to the Company.
(9) Mr. Lurio is a Director of the Company and his law firm, Lurio &
Associates, P.C. is general counsel to the Company.
(10) Mr. Van Alen is a Director of the Company and the owner of Cornerstone
Public Relations Group.
(11) Mr. McCarty is a consultant to the Company.
(12) Mr. McGarrah is a consultant to the Company.
(13) Virtual Concepts is consultant to the Company.
(14) William Sellers is a Director of the Company.
The table entitled "2001-B Common Stock Purchase Warrants" appearing in
the Selling Shareholders section of the Prospectus is hereby deleted and
replaced in its entirety by the following two new tables. The table for the
2001-B-1 Common Stock Purchase Warrants reflects transfers of the warrants or
underlying shares subsequent to the date of the Prospectus as well as
unexercised warrants that were canceled. The table for the 2001-B-2 Common Stock
Purchase Warrants reflects transfers of the warrants or the underlying shares
occurring subsequent to the date of the Prospectus.
2001-B-1 COMMON STOCK PURCHASE WARRANTS
Beneficial Ownership
after Offering
Common Stock --------------------
Selling Shareholder Offered Hereby Number Percent
------------------- -------------- -------- ---------
ALEXANDRA ANTOINETTE FERLAND U.G.M.A. 134 0 *
ALEX CONSULTING, INC. (1) 210,000 1,976,000 1.78
BARRY ARNDT 167 0 *
JOHN P. AYERS 40,000 0 *
COLLEEN AYERS 3,000 0 *
DANIEL C. AYERS 1,334 0 *
MICHAEL BACHICH 225,000 0 *
JOHN R. BACHICH 100,000 0 *
VIRGINIA S. BALTZELL 3,334 0 *
GUNTER J. BEYER(2) 16,667 60,834 *
GARY BOURASSA 6,667 0 *
VERNON BRITTAIN 11,667 0 *
RONALD J. CAMMAROTA 6,667 0 *
GORDON S. CLAUSEN 10,000 0 *
DIANE CLOUTIER 15,000 0 *
GINO F. COLOMBO 16,667 0 *
COLUMBIA MARKETING LTD 100,000 0 *
GERARD W. COONEY 15,000 0 *
HOWARD P. EFFRON 25,000 0 *
ELLIOT RAYMOND FERLAND U.G.M.A. 134 0 *
SOLOMON ELLNER 13,334 0 *
KATHLEEN FERLAND 1,667 0 *
CHARLOTTE GIVEN(3) 10,000 100,000 *
PETER GRAHM 58,334 0 *
ROBERT GRAY 30,000 0 *
DIAN GRIESEL(4) 46,667 93,334 *
BRUCE H. HALE 11,667 0 *
BILL HALSTENRUD 15,000 0 *
DEVIN HANSEN 15,000 0 *
STEPHEN P. HERBERT(5) 56,410 934,974 *
JANET J. HEWES 15,000 0 *
IW MILLER GROUP(6) 60,000 237,500 *
JACQUELLINE RUGART 5,000 0 *
GEORGE R. JENSEN, JR.(7) 56,410 1,185,256 1.07
DONALD R. JONES, SR. 16,667 0 *
KAUFMANN & ASSOCIATES(8) 40,000 150,000 *
ROBERT G. PADRICK, TRUSTEE 16,667 0 *
SARA LABRUM 167 0 *
KATE LABRUM 167 0 *
JOE LABRUM 167 0 *
AARON LEHMANN 13,334 0 *
SHELLEY LEROUX 20,000 0 *
DOUGLAS M. LURIO(9) 50,000 378,713 *
CORNERSTONE PUBLIC RELATIONS GROUP INC.(10) 3,750 7,500 *
G. DIEHL MATEER JR. 11,667 0 *
MATTHEW MICHAEL MCDONOUGH U.G.M.A. 134 0 *
THOMAS E. MCCARTY(11) 33,334 239,168 *
ROBERT G. MCGARRAH(12) 50,000 256,000 *
MICHAEL W. MILES 20,000 0 *
BARBARA HOWARD MILLER 18,334 0 *
LOUIS J. MUTH 11,667 0 *
JEFFREY M. NEWHUIS 39,334 0 *
GREGG J. NEWHUIS 233,334 0 *
Beneficial Ownership
after Offering
Common Stock --------------------
Selling Shareholder Offered Hereby Number Percent
------------------- -------------- -------- ---------
HELEN PETLOWANY 3,334 0 *
RANDY J. POST 3,334 0 *
CHARLES W. PROCTOR III 1,667 0 *
JEANNE S. QUIST 13,334 0 *
ROSAMOND P. RANKIN 3,334 0 *
ROBERT TURNER RUGART 5,000 0 *
ROBERT ROGGIO 6,667 0 *
JOHN E HAMILTON ROTH IRA 16,667 0 *
PETER S. RUBEN 30,000 0 *
CHARLES SCHWAB & CO FBO PETER A. SANDS, IRA 13,334 0 *
RICHARD SCHONWALD 10,000 0 *
BEN SIDES 3,334 0 *
ROBERT G. SINGER 13,334 0 *
JOSEPH SINGER 13,334 0 *
LESLIE SINGER 11,667 0 *
STEVEN W. SMITH 15,000 0 *
RICHARD O. SMITH 10,000 0 *
STEVEN W. SMITH SSB AS IRA CUSTODIAN 30,000 0 *
CLARK D. STULL JR JTWROS 15,834 0 *
S.W. RYAN & CO. 26,667 0 *
JEAN TURNER 3,334 0 *
VIRTUAL CONCEPTS CORP.(13) 50,000 295,000 *
LOIS M. WAGNER 7,500 0 *
C. ANTHONY WAINWRIGHT 5,000 0 *
ARTHUR A. WIENER 2,017 0 *
----------
TOTAL 2,093,342
==========
-----------------
* Less than one percent (1%)
(1) Alex Consulting, Inc. is a financial consultant to the Company.
(2) Mr. Beyer is a public relations consultant to the Company.
(3) Ms. Given is a public relations consultant to the Company.
(4) Ms. Griesel was a public relations consultant to the Company.
(5) Mr. Herbert is President of the Company.
(6) I.W. Miller Group is a public relations consultant to the Company.
(7) Mr. Jensen is Chief Executive Officer and Chairman of the Company.
(8) Kaufmann & Associates is a business consultant to the Company.
(9) Mr. Lurio is a Director of the Company and his law firm, Lurio &
Associates, P.C., is general counsel to the Company.
(10) Cornerstone Public Relations is owned by William Van Alen, a Director of
the Company.
(11) Mr. McCarty is a consultant to the Company.
(12) Mr. McGarrah is a consultant to the Company.
(13) Virtual Concepts is a consultant to the Company.
2001-B-2 COMMON STOCK PURCHASE WARRANTS
Beneficial Ownership
after Offering
Common Stock --------------------
Selling Shareholder Offered Hereby Number Percent
------------------- -------------- -------- ---------
ALEXANDRA ANTOINETTE FERLAND U.G.M.A. 134 0 *
ALEX CONSULTING, INC. (1) 185,000 2,001,000 1.80
MICHELLE H. ALVANOS 2,334 0 *
MICHELLE H. ALVANOS 5,000 0 *
WAYNE A. ANDERSON 16,667 0 *
CHARLES W. APPLE 30,000 0 *
BARRY ARNDT 167 0 *
JOHN P. AYERS 40,000 0 *
COLLEEN AYERS 3,000 0 *
DANIEL C. AYERS 1,334 0 *
MICHAEL BACHICH 225,000 0 *
JOHN R. BACHICH 100,000 0 *
VIRGINIA S. BALTZELL 3,334 0 *
CHARLES M. BARCLAY 15,000 0 *
GUNTER J. BEYER (2) 16,667 60,834 *
DAVID C. BLACKBURN 50,000 0 *
JOSEPH J. BOLITSKY 106,667 0 *
GARY BOURASSA 6,667 0 *
E. DOUGLAS BRITTAIN 13,334 0 *
VERNON BRITTAIN 11,667 0 *
VINCENT J. CALVARESE 6,667 0 *
RONALD J. CAMMAROTA 6,667 0 *
JERROLD CARL 50,000 0 *
JULIE CARLSON 132,000 0 *
GORDON S. CLAUSEN 10,000 0 *
DIANE CLOUTIER 15,000 0 *
MARC A. COHEN 70,000 0 *
GINO F. COLOMBO 16,667 0 *
GINO F. COLOMBO 6,667 0 *
COLUMBIA MARKETING LTD 100,000 0 *
GERARD W. COONEY 15,000 0 *
JOHANNA CRAVEN 4,167 0 *
WILLIAM R. CROTHERS 5,000 0 *
CLIFTON B. CURRIN 33,334 0 *
WILLIAM K. CURTIS 66,667 0 *
DAVID S. D'ANGELO 43,334 0 *
HRUBALA ASSOCIATES 16,667 0 *
LEO J. DOLAN 13,334 0 *
ROBERT F. DRESS 18,334 0 *
HOWARD P. EFFRON 25,000 0 *
ELLIOT RAYMOND FERLAND U.G.M.A. 134 0 *
SOLOMON ELLNER 13,334 0 *
ANTHONY J. FANELLI 30,000 0 *
KATHLEEN FERLAND 1,667 0 *
JOHN S. FOSTER 26,667 0 *
ROBERT R. FREY 5,125 0 *
MARGARET R. GEDDIS 3,334 0 *
RONALD C. GIBSON 13,334 0 *
CHARLOTTE GIVEN(3) 30,000 80,000 *
HARRIET GLICKSTEIN 30,000 0 *
JULIUS GOLDEN 10,000 0 *
WILLIAM M. GOLDSTEIN 20,000 0 *
PETER GRAHM 58,334 0 *
ROBERT GRAY 30,000 0 *
DIAN GRIESEL(4) 46,667 93,334 *
BRUCE H. HALE 11,667 0 *
BILL HALSTENRUD 15,000 0 *
NANCY HANSEN 10,000 0 *
Beneficial Ownership
after Offering
Common Stock --------------------
Selling Shareholder Offered Hereby Number Percent
------------------- -------------- -------- ---------
DEVIN HANSEN 15,000 0 *
NANCY HANSEN 187,334 0 *
NANCY HANSEN 13,334 0 *
CONG. SHARIT HAPLETA 175,000 0 *
WILLIAM F. HARRITY JR. 63,334 0 *
ROBERT P. HAUPTFUHRER FAMILY PARTNERSHIP 20,000 0 *
JACK M. HEALD 11,667 0 *
ANDREW B. HEBENSTREIT 23,334 0 *
ANN HEBENSTREIT 10,000 0 *
ADELE H. HEPBURN(5) 333,334 1,958,866 1.76
STEPHEN P. HERBERT(6) 56,410 934,974 *
JANET J. HEWES 15,000 0 *
AHP HOLDINGS, LP 93,334 0 *
MICHELLE R. HOLLENSHEAD 4,167 0 *
DAVID W. HUBBERT 10,000 0 *
NICHOLAS HUDSON 11,667 0 *
MARK J. HUDSON 15,000 0 *
GORDON F. HUDSON 15,000 0 *
CHRISTINE F. HUGHES 5,834 0 *
HULL OVERSEAS, LTD 85,000 0 *
STEVE ILLES 100,000 0 *
STEVE ILLES 1,000,000 0 *
INTEGRATED CAPITAL(7) 100,000 150,000 *
IW MILLER GROUP(8) 50,000 247,500 *
ROBERT B. JACOBY 6,667 0 *
JACQUELLINE RUGART 5,000 0 *
GEORGE R. JENSEN, JR.(9) 56,410 1,185,256 1.07
WILLIAM ROBERT JOHNSTON 50,000 0 *
DONALD R. JONES, SR. 16,667 0 *
THOMAS A. KATCHUR 100,000 0 *
MICHAEL KATCHUR 15,000 0 *
KAUFMANN & ASSOCIATES(10) 40,000 150,000 *
ROBERT G. PADRICK, TRUSTEE 16,667 0 *
GEORGE H. KILMARX 13,334 0 *
HARRIETTE D. KLANN 6,667 0 *
SHIRLEY K. KNERR 15,000 0 *
PHILLIP S. KROMBOLZ 33,334 0 *
SARA LABRUM 167 0 *
KATE LABRUM 167 0 *
JOE LABRUM 167 0 *
AARON LEHMANN 13,334 0 *
SHELLEY LEROUX 20,000 0 *
WARREN D. LEWIS 11,667 0 *
H. MATHER LIPPINCOTT 1,667 0 *
DOUGLAS M. LURIO(11) 50,000 378,713 *
CORNERSTONE PUBLIC RELATIONS GROUP INC.(12) 3,750 7,500 *
JAMES P. MACCAIN 23,334 0 *
ROBIN H. MARCHAND 11,667 0 *
AIMEE MARCHAND 2,500 0 *
MARIEL MARCHAND 2,500 0 *
KATHLEEN J. MASON 153,334 0 *
G. DIEHL MATEER JR. 11,667 0 *
MATTHEW MICHAEL MCDONOUGH U.G.M.A. 134 0 *
CHARLES A. MAYER 13,334 0 *
THOMAS E. MCCARTY(13) 33,334 239,168 *
ROBERT G. MCGARRAH(14) 50,000 256,000 *
PETER J. MCGUIRE 160,000 0 *
Beneficial Ownership
after Offering
Common Stock --------------------
Selling Shareholder Offered Hereby Number Percent
------------------- -------------- -------- ---------
JAMES F. MERRIMAN 20,000 0 *
MICHAEL W. MILES 20,000 0 *
HARLEY MILLER 13,334 0 *
BARBARA HOWARD MILLER 18,334 0 *
GEORGE W. MOFFITT JR. 45,000 0 *
KENNETH G. MOLTA 6,667 0 *
ROBERT H. MONTGOMERY 13,334 0 *
LOUIS J. MUTH 11,667 0 *
ELIZABETH L. NELSON 50,000 0 *
JEFFREY M. NEWHUIS 53,334 0 *
GREGG J. NEWHUIS 293,334 0 *
PAUL NORDIN 6,667 0 *
GEORGE O'CONNELL 160,000 0 *
SUSAN ODELL 23,334 0 *
ERIC PAGH 15,000 0 *
MICHAEL A. PARKER 13,334 0 *
NEIL L. PARKER 10,000 0 *
MATTIE A. PERRY 8,334 0 *
LARRY R. PERRY 4,167 0 *
RICHARD D. PERRY 4,167 0 *
DOUGLAS A. PERRY 4,167 0 *
HELEN PETLOWANY 3,334 0 *
ROY T. PIRHALA 6,667 0 *
RANDY J. POST 3,334 0 *
ROBERT H. POTTS 11,667 0 *
BARBARA L. PRESCOTT 2,500 0 *
CHARLES W. PROCTOR III 1,667 0 *
JEANNE S. QUIST 13,334 0 *
PAUL RAFFERTY 33,334 0 *
PAUL J. RAFFERTY 30,000 0 *
ROSAMOND P. RANKIN 3,334 0 *
WILLIAM RECKTENWALD 40,000 0 *
HARRY RENNER IV 67,500 0 *
JOHN B. RETTEW III 16,667 0 *
GEORGE B. RICHARDSON 41,667 0 *
ROBERT TURNER RUGART 5,000 0 *
GARDINER ROGERS 10,000 0 *
ROBERT ROGGIO 6,667 0 *
JOHN E HAMILTON ROTH IRA 16,667 0 *
PETER S. RUBEN 30,000 0 *
KARL F. RUGART 15,000 0 *
JOHN S. RUPP 12,500 0 *
CHARLES SCHWAB & CO FBO PETER SANDS, IRA 13,334 0 *
WILLIAM F. SCHOENHUT JR. 13,334 0 *
RICHARD SCHONWALD 250,000 0 *
MARY L. SCRANTON 11,667 0 *
BEN SIDES 3,334 0 *
ROBERT G. SINGER 13,334 0 *
JOSEPH SINGER 13,334 0 *
LESLIE SINGER 11,667 0 *
STEVEN W. SMITH 15,000 0 *
RICHARD O. SMITH 10,000 0 *
STEVEN W. SMITH SSB AS IRA CUSTODIAN 30,000 0 *
DANIEL E. SPEALMAN 46,667 0 *
BB SECURITIES CO FBO DANIEL E SPEALMAN IRA 29,167 0 *
MICHAEL STEIR 28,334 0 *
HOMER N. STEWART 10,000 0 *
Beneficial Ownership
after Offering
Common Stock --------------------
Selling Shareholder Offered Hereby Number Percent
------------------- -------------- -------- ---------
PRISCILLA STITT 2,000 0 *
EDWARD B. STOKES 10,000 0 *
MARCUS B. STRINGFELLOW 40,000 0 *
CLARK D. STULL JR JTWROS 15,834 0 *
JEAN TURNER 3,334 0 *
WILLIAM L. VAN ALEN JR.(12) 13,334 223,753 *
LOIS M. WAGNER 7,500 0 *
ROBERT E. WAGNER 27,857 0 *
JOHN WECKERLING 26,667 0 *
HENRY W. WESSELLS III 1,667 0 *
DELTA WESTERN COMPANY 150,000 0 *
ARTHUR L. WHEELER 33,334 0 *
ARTHUR A. WIENER 2,017 0 *
J. EDWARD WILLARD 26,667 0 *
WILLIAM W. SELLERS REV TRUST(15) 26,667 966,577 *
MARGARET S. WILLIAMS 34,334 0 *
R. H. WILLIAMS DDS PROF. SHARING PLAN 50,000 0 *
DONALD J. ZELENKA 90,000 0 *
RUTH ZWEIGBAUM 7,084 0 *
---------
TOTAL 7,395,439
=========
------------------
* Less than one percent (1%)
(1) Alex Consulting, Inc. is a financial consultant to the Company.
(2) Mr. Beyer is a public relations consultant to the Company.
(3) Ms. Given is a public relations consultant to the Company.
(4) Ms. Griesel was a public relations consultant to the Company.
(5) Ms. Hepburn is Director of Public relations for the Company.
(6) Mr. Herbert is President of the Company.
(7) Integrated Capital Corporation is a consultant to the Company.
(8) I.W. Miller Group is a public relations consultant to the Company.
(9) Mr. Jensen is Chairman and Chief Executive Officer of the Company.
(10) Kaufmann & Associates is a business consultant of the Company.
(11) Mr. Lurio is a Director of the Company and his law firm, Lurio &
Associates, P.C., is general counsel to the Company.
(12) Mr. Van Alen is a Director of the Company and is the owner of
Cornerstone Public Relations Group.
(13) Mr. McCarty is a consultant to the Company.
(14) Mr. McGarrah is a consultant to the Company.
(15) Mr. Sellers is a Director of the Company.
The table entitled "2001-C Restricted Common Stock" appearing in the
Selling Shareholders section of the Prospectus is hereby deleted and replaced in
its entirety by the following new table. The table reflects transfers of the
shares occurring after the date of the Prospectus.
2001-C RESTRICTED COMMON STOCK
Beneficial Ownership
after Offering
Common Stock --------------------
Selling Shareholder Offered Hereby Number Percent
------------------- -------------- -------- ---------
Alex Consulting, Inc.(1) 450,000 1,736,000 1.56
Jackson L. Anderson 12,000 0 *
Charles W. Apple 20,000 0 *
Reba A. Beeson 10,000 0 *
Marion D. & Teddie E. Belin 40,000 0 *
Gunter J. Beyer(2) 10,000 67,501 *
Kathlyne K. Birdsall 5,000 0 *
Richard & Mary Birtz 12,000 0 *
Joseph J. Bolitsky 60,000 0 *
Edwin R. Boynton(3) 50,000 305,500 *
Neal Bozentka 40,000 0 *
William P. Burks MD 5,000 0 *
August B. Castle, Jr. 62,716 0 *
Gary Cella 15,000 0 *
Robert J. Clarke 20,000 0 *
Johanna Craven 6,000 0 *
Helena Crecraft 10,000 0 *
Clifton B. Currin 6,000 0 *
Benjamin H. Deacon 10,000 0 *
Donald M. & Dianne M. Denlinger 36,000 0 *
Diligent Finance Co., Ltd. 200,000 0 *
Louis E. & Rose M. DiRenzo 10,000 0 *
James W. Effron 14,000 0 *
Solomon Ellner 90,000 0 *
Anthony J. Fanelli 4,000 0 *
Fieldman, Hay & Ullman(4) 50,000 535,000 *
Fin Map Corporation(5) 150,000 80,000 *
John S. Foster MD 60,000 0 *
Robert R. Frey 9,900 0 *
Ellen Gimbel 6,000 0 *
Harold N. Gray 10,000 0 *
James P. & Joyce M. Greaves 20,000 0 *
Kenneth R. Harris 4,800 0 *
Andrew B. Hebenstreit 10,000 0 *
Andrew B. Hebenstreit 50,000 0 *
Cynthia Lockhart Heberton 2,000 0 *
Maureen E. Hendron 20,000 0 *
Adele H. Hepburn(6) 102,000 2,190,200 1.97
Stephen P. Herbert(7) 285,250 706,134 *
Elwood E. Herbert 10,000 0 *
Elizabeth J. Holmes 5,000 0 *
Robert B. & Mary Lou Jacoby 12,000 0 *
Joan S. Jay 20,000 0 *
George R. Jensen, Jr.(8) 176,750 1,064,916 *
Donald R. & Joan F. Jones 2,000 0 *
Thomas A. Katchur 20,000 0 *
Kaufmann & Associates(9) 20,000 170,000 *
Harriette D. Klann 10,000 0 *
Haven Brock Kolls(10) 100,000 732,184 *
Lois A. Landis 4,000 0 *
Michael Lawlor(11) 65,000 407,884 *
Cecil Ledesma(12) 40,000 69,500 *
Beneficial Ownership
after Offering
Common Stock --------------------
Selling Shareholder Offered Hereby Number Percent
------------------- -------------- -------- ---------
Shelley & James Leroux 12,000 0 *
Leland P. Maxwell(13) 65,000 305,384 *
Lily L. McCartney 8,000 0 *
Thomas E. McCarty (14) 50,000 222,502 *
Robert G. McGarrah(15) 100,000 206,000 *
Ashlee Migliaccio 20,000 0 *
Harley & Brook Miller 5,000 0 *
Mull & Paige Associates LLC 10,000 0 *
Mull & Paige Associates LLC 90,000 0 *
Elizabeth L. Nelson 20,000 0 *
Susan Odell 40,000 0 *
Robert G. Padrick 20,000 0 *
Robert G. Padrick P/S/P & Trust 20,000 0 *
Eric Pagh 20,000 0 *
Richard G. & Laura J. Parker 8,000 0 *
Roy T. Pirhala 6,634 0 *
Roger Radpour 26,500 0 *
John S. Rupp 2,000 0 *
Richard S. Schonwald 60,000 0 *
Shamrock Holding LTD(16) 100,000 0 *
Raymond K. Shotwell 2,000 0 *
George H. Sorrell 2,000 0 *
Daniel E. Spealman 18,000 0 *
Robert S. Spears 100,000 0 *
Michael K. Stern 20,000 0 *
Homer N. & Natalie W. Stewart 6,000 0 *
Priscilla Stitt 2,000 0 *
Strategic Investment Management SA 200,000 0 *
Clark D.& Carolyn S. Stull 4,800 0 *
Technology Partners (Hldgs) LLC(17) 120,000 80,000 *
Andrew A. & Mary L. Thompson 2,000 0 *
Alfred Hunter & Susan Mary Thompson 3,000 0 *
Daniel G. Thompson 4,000 0 *
Samuel Reeves Thompson 4,000 0 *
Rosalie H. Thompson 20,000 0 *
Treetop Investments(18) 100,000 0 *
James L. Van Alen 6,000 0 *
Virtual Concepts(19) 175,000 170,000 *
William W. Sellers Rev. Trust(20) 100,000 893,244 *
Margaret S. Williams 18,000 0 *
R.H. Williams DDS Prof. Sharing Pln 24,000 0 *
Deborah Witte 110,000 0 *
Mike Wusinich 20,000 0 *
Ruth Zweigbaum 6,000 0 *
---------
TOTAL SHARES 4,212,350
=========
-----------------
*Less than one percent(1%)
(1) Alex Consulting, Inc. is a financial consultant to the Company.
(2) Mr. Beyer is a public relations consultant to the Company.
(3) Mr. Boynton is a Director of the Company.
(4) Fieldman, Hay and Ullman, LP represented the Company in prior litigation.
(5) FinMap Corporation is a public relations consultant to the Company.
(6) Ms. Hepburn is Director of Public Relations of the Company.
(7) Mr. Herbert is President of the Company.
(8) Mr. Jensen is Chairman and Chief Executive Officer of the Company.
(9) Kaufmann & Associates is a consultant to the Company.
(10) Mr. Kolls is Senior Vice President of the Company.
(11) Mr. Lawlor is an employee of the Company.
(12) Mr. Ledesma is an employee of the Company.
(13) Mr. Maxwell is Chief Financial Officer of the Company.
(14) Mr. McCarty is a consultant to the Company.
(15) Mr. McGarrah is a consultant to the Company.
(16) Shamrock Holding LTD is a public relations consultant to the Company.
(17) Technology Partners is the Company's investment banker.
(18) Treetop Investments is a consultant to the Company.
(19) Virtual Concepts is a consultant to the Company.
(20) Mr. Sellers is a Director of the Company.
The table entitled "2001-C Common Stock Purchase Warrants" appearing in
the Selling Shareholders section of the Prospectus is hereby deleted and
replaced in its entirety by the following new table. The table reflects
transfers of the warrants or the shares underlying these warrants subsequent to
the date of the Prospectus as well as the cancellation of unexercised warrants.
2001-C COMMON STOCK PURCHASE WARRANTS
Beneficial Ownership
after Offering
Common Stock --------------------
Selling Shareholder Offered Hereby Number Percent
------------------- -------------- -------- ---------
ALEX CONSULTING, INC.(1) 704,000 1,482,000 1.33
AMERICAN INTERNATIONAL 6,000 0 *
JACKSON L. ANDERSON 6,000 0 *
CHARLES W. APPLE 10,000 0 *
REBA A. BEESON 10,000 0 *
MARION DOUGLAS & TEDDIE EARLINE BELIN 40,000 0 *
GUNTER J. BEYER(2) 10,000 67,501 *
KATHLYNE BIRDSALL 2,500 0 *
RICHARD & MARY BIRTZ 12,000 0 *
JOSEPH J. BOLITSKY 60,000 0 *
EDWIN R. BOYNTON(3) 25,000 330,500 *
NEAL BOZENTKA 40,000 0 *
WILLIAM P. BURKS, MD 2,500 0 *
AUGUST B. CASTLE, JR. 31,358 0 *
GARY CELLA 13,800 0 *
ROBERT J. CLARKE 10,000 0 *
JOHANNA CRAVEN 3,000 0 *
HELENA CRECRAFT 10,000 0 *
CLIFTON B. CURRIN 3,000 0 *
BENJAMIN H. DEACON 10,000 0 *
DONALD M. & DIANNE M. DENLINGER 12,000 0 *
DILIGENT FINANCE CO., LTD. 200,000 0 *
LOUIS E. & ROSE M. DIRENZO 5,000 0 *
JAMES W. EFFRON 14,000 0 *
HOWARD EFFRON 40,000 0 *
SOLOMON ELLNER 30,000 0 *
ANTHONY J. FANELLI 2,000 0 *
FIELDMAN, HAY & ULLMAN(4) 100,000 485,000 *
FINMAP CORPORATION(5) 80,000 150,000 *
JOHN S. FOSTER MD 30,000 0 *
ROBERT R. FREY 4,950 0 *
ELLEN GIMBEL 6,000 0 *
HAROLD N. GRAY 4,000 0 *
JAMES P. & JOYCE M. GREAVES 10,000 0 *
KENNETH R. HARRIS 4,800 0 *
ANDREW B. HEBENSTREIT 30,000 0 *
CYNTHIA LOCKHART HEBERTON 2,000 0 *
MAUREEN E. HENDRON 15,000 0 *
ADELE H. HEPBURN(6) 51,000 2,241,200 2.02
STEPHEN P. HERBERT(7) 176,250 815,134 *
ELWOOD E. HERBERT 10,000 0 *
ELIZABETH J. HOLMES 5,000 0 *
INTEGRATED CAPITAL(8) 150,000 100,000 *
ROBERT B. & MARY LOU JACOBY 6,000 0 *
JOAN S. JAY 20,000 0 *
GEORGE R. JENSEN, JR.(9) 183,750 1,057,916 *
DONALD R. & JOAN F. JONES 12,000 0 *
RICK JOSHI 10,000 0 *
FRED KARAGOSIAN 6,000 0 *
THOMAS A. KATCHUR 10,000 0 *
HARRIETTE D. KLANN 5,000 0 *
HAVEN BROCK KOLLS(10) 100,000 732,184 *
LOIS A. LANDIS 2,000 0 *
MICHAEL LAWLOR(11) 65,000 407,884 *
CECIL LEDESMA(12) 40,000 40,000 *
HELLEY & JAMES LEROUX 12,000 0 *
LELAND P. MAXWELL(13) 65,000 305,384 *
LILY L. MCCARTNEY 4,000 0 *
THOMAS E. MCCARTY (14) 50,000 222,502 *
Beneficial Ownership
after Offering
Common Stock --------------------
Selling Shareholder Offered Hereby Number Percent
------------------- -------------- -------- ---------
ASHLEE MIGLIACCIO 10,000 0 *
MICHAEL W. MILES 20,000 0 *
HARLEY & BROOK MILLER 2,500 0 *
MULL & PAIGE ASSOCIATES LLC 100,000 0 *
ELIZABETH L. NELSON 10,000 0 *
NEWS USA INC. 300,000 0 *
SUSAN ODELL 20,000 0 *
ROBERT G. PADRICK 20,000 0 *
ROBERT G. PADRICK P/S/P & TRUST 100,000 0 *
ERIC PAGH 10,000 0 *
RICHARD G. & LAURA J. PARKER 24,000 0 *
ROY T. PIRHALA 3,317 0 *
JOHN S. RUPP 1,000 0 *
RICHARD S. SCHONWALD 60,000 0 *
RAYMOND K. SHOTWELL 1,000 0 *
GEORGE H. SORRELL 2,000 0 *
DANIEL E. SPEALMAN 9,000 0 *
MICHAEL K. STERN 20,000 0 *
HOMER N. & NATALIE W. STEWART 3,000 0 *
PRISCILLA STITT 1,000 0 *
STRATEGIC INVESTMENT MANAGEMENT SA 200,000 0 *
TECHNOLOGY PARTNERS (HOLDINGS) LLC(15) 80,000 120,000 *
ANDREW ANDERSON & MARY LYNN THOMPSON 1,000 0 *
ALFRED HUNTER & SUSAN MARY THOMPSON 1,500 0 *
DANIEL G. THOMPSON 4,000 0 *
SAMUEL REEVES THOMPSON 4,000 0 *
ROSALIE H. THOMPSON 20,000 0 *
JAMES L. VAN ALEN 6,000 0 *
WILLIAM W. SELLERS REV. TRUST(16) 50,000 943,244 *
MARGARET S. WILLIAMS 9,000 0 *
ROBERT H. WILLIAMS DDS PROF. SHARING PLAN 12,000 0 *
DEBORAH WITTE 90,000 0 *
RUTH ZWEIGBAUM 3,000 0 *
---------
TOTAL SHARES 3,779,225
=========
-----------------
*Less than one percent(1%)
(1) Alex Consulting, Inc. is a financial consultant to the Company.
(2) Mr. Beyer is a public relations consultant to the Company.
(3) Mr. Boynton is a Director of the Company.
(4) Fieldman, Hay and Ullman, LLP represented the Company in prior litigation.
(5) Finmap Corporation is a public relations consultant to the Company.
(6) Ms. Hepburn is Director of Public Relations of the Company.
(7) Mr. Herbert is President of the Company.
(8) Integrated Capital is a consultant to the Company.
(9) Mr. Jensen is Chairman and Chief Executive Officer of the Company.
(10) Mr. Kolls is Senior Vice President of the Company.
(11) Mr. Lawlor is an employee of the Company.
(12) Mr. Ledesma is an employee of the Company.
(13) Mr. Maxwell is Chief Financial Officer of the Company.
(14) Mr. McCarty is a consultant to the Company.
(15) Technology Partners is the Company's investment banker.
(16) Mr. Sellers is a Director of the Company
The second and third paragraphs of the Plan of Distribution section of
the Prospectus is deleted and shall be replaced with the following new
paragraphs:
The selling shareholders and any of their pledgees, assignees and
successors-in-interest may from time to time effect such transactions by selling
common stock directly to purchasers or through broker-dealers, which may act as
agents or principals. Such broker-dealers may receive compensation in the form
of discounts, concessions, or commissions from the selling shareholders. They
may also receive compensation from the purchasers of common shares for whom such
broker-dealers may act as agents or to whom they sell as principal, or both
(which compensation as to a particular broker-dealer might be in excess of
customary commissions).
The selling shareholders and any broker-dealers or agents that are
involved in selling the shares may be deemed to be "underwriters" within the
meaning of the Act in connection with such sales. In such event, any commissions
received by such broker-dealers or agents and profit on the resale of the shares
purchased by them may be deemed to be underwriting discounts under the Act.
The selling shareholders also may resell all or a portion of the common
shares in reliance upon Rule 144 under the Act rather than pursuant to this
Prospectus, provided they meet the criteria and conform to the requirements of
such Rule. We have agreed to bear all the expenses (other than selling
commissions) in connection with the registration and sale of the common stock
covered by this prospectus. In some circumstances, we have agreed to indemnify
the selling shareholders against certain losses and liabilities, including
liabilities under the Act.
The date of this Prospectus Supplement No. 1 is June 13, 2002.