X
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
94-2790442
|
|||
(State or other jurisdiction of
|
(I.R.S. Employer
|
|||
incorporation or organization)
|
Identification No.)
|
|
Registrant's telephone number, including area code
|
Yes
|
X
|
No
|
Yes
|
No
|
large accelerated filer
|
accelerated filer
|
non-accelerated filer
|
X
|
Smaller reporting Company
|
Yes
|
No
|
X
|
Page No.
|
|
PART I. FINANCIAL INFORMATION
|
|
Item 1.
Financial Statements
|
|
Condensed Consolidated Balance Sheets at June 30, 2010 (unaudited) and
December 31, 2009
|
3
|
Condensed Consolidated Statements of Operations for the Three and Six Month
Periods Ended June 30, 2010 and 2009 (unaudited)
|
4
|
Condensed Consolidated Statements of Changes in Stockholders’ (Deficit) Equity for the
Six Month Period Ended June 30, 2010 (unaudited)
|
5
|
Condensed Consolidated Statements of Cash Flows for the Three and Six Month Periods
Ended June 30, 2010 and 2009 (unaudited)
|
6
|
Notes to Unaudited Condensed Consolidated Financial Statements
|
8
|
Item 2.
Management's Discussion and Analysis of Financial Condition and
Results of Operations
|
17
|
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
|
23
|
Item 4.
Controls and Procedures
|
23
|
PART II. OTHER INFORMATION
|
|
Item 1.
Legal Proceedings
|
24
|
Item 1A.
Risk Factors
|
24
|
Item 2.
Unregistered Sale of Securities and Use of proceeds
|
24
|
Item 3.
Defaults Upon Senior Securities
|
24
|
Item 4.
(Removed and Reserved)
|
24
|
Item 5.
Other Information
|
24
|
Item 6.
Exhibits
|
|
(a) Exhibits
|
25
|
Signatures
|
26
|
June 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
Assets
|
Unaudited
|
|||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 567 | $ | 1,021 | ||||
Accounts receivable, net of allowance of $113 and $117 at June 30, 2010 and December 31, 2009, respectively
|
59 | 227 | ||||||
Prepaid expenses and other current assets
|
104 | 66 | ||||||
Total current assets
|
730 | 1,314 | ||||||
Property and equipment, net
|
24 | 31 | ||||||
Patents, net
|
2,582 | 2,771 | ||||||
Capitalized software development costs, net
|
1,421 | 1,515 | ||||||
Deferred financing costs
|
294 | 218 | ||||||
Other assets
|
29 | 29 | ||||||
Total assets
|
$ | 5,080 | $ | 5,878 | ||||
Liabilities and Stockholders'(Deficit) Equity
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt –net of discount of $1,805 and $2,222, at June 30, 2010 and December 31, 2009, respectively, including related party debt of $4,323 and $4,918, net of discount of $1,758 and $2,138 at June 30, 2010 and December 31, 2009 respectively (Note 4)
|
4,455 | 2,869 | ||||||
Accounts payable
|
457 | 118 | ||||||
Accrued compensation
|
359 | 327 | ||||||
Other accrued liabilities
|
181 | 169 | ||||||
Deferred revenue
|
450 | 458 | ||||||
Total current liabilities
|
5,902 | 3,941 | ||||||
Deferred revenue long-term
|
769 | 867 | ||||||
Derivative liability
|
918 | 422 | ||||||
Total liabilities
|
7,589 | 5,230 | ||||||
Commitments and contingencies
|
||||||||
Stockholders' (deficit) equity:
|
||||||||
Preferred stock, $.01 par value; 10,000 shares authorized; 781 and 751 shares outstanding at June 30, 2010 and December 31, 2009, respectively ($781 liquidation preference at June 30, 2010)
|
781 | 751 | ||||||
Common stock, $.01 par value; 275,000 shares authorized; 192,418 and 190,026 shares issued and outstanding at June 30, 2010 and December 31, 2009, respectively
|
1,924 | 1,900 | ||||||
Additional paid-in capital
|
101,289 | 101,221 | ||||||
Accumulated deficit
|
(106,460 | ) | (103,178 | ) | ||||
Accumulated other comprehensive loss
|
(43 | ) | (46 | ) | ||||
Total stockholders' (deficit) equity
|
(2,509 | ) | 648 | |||||
Total liabilities and stockholders' (deficit) equity
|
$ | 5,080 | $ | 5,878 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Revenues:
|
||||||||||||||||
Product
|
$ | 54 | $ | 211 | $ | 90 | $ | 280 | ||||||||
Maintenance
|
159 | 193 | 329 | 370 | ||||||||||||
Total Revenues
|
213 | 404 | 419 | 650 | ||||||||||||
Operating costs and expenses:
|
||||||||||||||||
Cost of sales:
|
||||||||||||||||
Product
|
188 | 183 | 344 | 353 | ||||||||||||
Maintenance
|
53 | 48 | 77 | 97 | ||||||||||||
Research and development
|
204 | 14 | 306 | 126 | ||||||||||||
Sales and marketing
|
322 | 322 | 748 | 697 | ||||||||||||
General and administrative
|
553 | 497 | 996 | 959 | ||||||||||||
Total operating costs and expenses
|
1,320 | 1,064 | 2,471 | 2,232 | ||||||||||||
Loss from operations
|
(1,107 | ) | (660 | ) | (2,052 | ) | (1,582 | ) | ||||||||
Interest and other income (expense), net
|
− | − | − | 1 | ||||||||||||
Interest expense:
|
||||||||||||||||
Related party
|
(110 | ) | (78 | ) | (207 | ) | (147 | ) | ||||||||
Other
|
(4 | ) | (4 | ) | (6 | ) | (8 | ) | ||||||||
Amortization of loan discount and deferred financing:
|
||||||||||||||||
Related party
|
(685 | ) | (312 | ) | (1,274 | ) | (510 | ) | ||||||||
Other
|
(18 | ) | (12 | ) | (38 | ) | (20 | ) | ||||||||
Loss on extinguishment of long term debt
|
− | (829 | ) | − | (829 | ) | ||||||||||
Gain (loss) on derivative liability
|
304 | (966 | ) | 295 | (1,035 | ) | ||||||||||
Net loss
|
(1,620 | ) | (2,861 | ) | (3,282 | ) | (4,130 | ) | ||||||||
Other
|
− | − | − | − | ||||||||||||
Preferred stock dividends:
|
||||||||||||||||
Related party
|
(11 | ) | (11 | ) | (22 | ) | (24 | ) | ||||||||
Other
|
(4 | ) | (4 | ) | (8 | ) | (8 | ) | ||||||||
Net loss attributable to common stockholders
|
$ | (1,635 | ) | $ | (2,876 | ) | $ | (3,312 | ) | $ | (4,162 | ) | ||||
Basic and diluted loss per common share
|
$ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.03 | ) | ||||
Weighted average common shares outstanding, basic and diluted
|
190,776 | 131,346 | 190,664 | 131,010 |
Preferred
Shares
Outstanding
|
Preferred
Shares
Amount
|
Common
Shares
Outstanding
|
Common
Stock Amount
|
Additional
Paid-In
Capital
|
Accumulated
Deficit
|
Accumulated
Other
Comprehensive
Loss
|
Total
|
|||||||||||||||||||||||||
Balances as of December 31, 2009
|
751 | $ | 751 | 190,026 | $ | 1,900 | $ | 101,221 | $ | (103,178 | ) | $ | (46 | ) | $ | 648 | ||||||||||||||||
Stock based employee compensation
|
56 | 56 | ||||||||||||||||||||||||||||||
Common stock issued for services
|
750 | 8 | 58 | 66 | ||||||||||||||||||||||||||||
Restricted common stock issued in lieu of salaries
|
1,642 | 16 | (16 | ) | − | |||||||||||||||||||||||||||
Comprehensive loss:
|
||||||||||||||||||||||||||||||||
Net loss
|
(3,282 | ) | (3,282 | ) | ||||||||||||||||||||||||||||
Foreign currency translation adjustment
|
3 | 3 | ||||||||||||||||||||||||||||||
Total comprehensive loss
|
(3,279 | ) | ||||||||||||||||||||||||||||||
Preferred share dividends
|
30 | 30 | (30 | ) | − | |||||||||||||||||||||||||||
Balances as of March 31, 2010
|
781 | $ | 781 | 192,418 | $ | 1,924 | $ | 101,289 | $ | (106,460 | ) | $ | (43 | ) | $ | (2,509 | ) |
Six
Months Ended
June 30,
|
||||||||
2010
|
2009
|
|||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$ | (3,282 | ) | $ | (4,130 | ) | ||
Adjustments to reconcile net loss to net cash
used for operating activities:
|
||||||||
Depreciation and amortization
|
579 | 551 | ||||||
Amortization of debt discount and deferred financing costs
|
1,312 | 534 | ||||||
Loss on extinguishment of long-term debt
|
− | 829 | ||||||
Stock-based employee compensation
|
56 | 54 | ||||||
(Gain) loss on derivative liability
|
(295 | ) | 1,035 | |||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable, net
|
168 | 455 | ||||||
Prepaid expenses and other assets
|
38 | (3 | ) | |||||
Accounts payable
|
339 | 94 | ||||||
Accrued compensation
|
32 | (76 | ) | |||||
Other accrued liabilities
|
33 | 38 | ||||||
Deferred revenue
|
(106 | ) | (48 | ) | ||||
Net cash used for operating activities
|
(1,126 | ) | (667 | ) | ||||
Cash flows from investing activities:
Acquisition of property and equipment
|
(3 | ) | (2 | ) | ||||
Capitalized software development costs
|
(285 | ) | (447 | ) | ||||
Net cash used for investing activities
|
(288 | ) | (449 | ) | ||||
Cash flows from financing activities:
|
||||||||
Deferred financing costs
|
− | (174 | ) | |||||
Proceeds from issuance of long term debt
|
960 | 1,100 | ||||||
Principal payments on short term debt
|
− | (30 | ) | |||||
Net cash provided by financing activities
|
960 | 896 | ||||||
Effect of exchange rate changes on cash and cash equivalents
|
− | (3 | ) | |||||
Net decrease in cash and cash equivalents
|
(454 | ) | (223 | ) | ||||
Cash and cash equivalents at beginning of period
|
1,021 | 929 | ||||||
Cash and cash equivalents at end of period
|
$ | 567 | $ | 706 |
Six Months Ended
June 30,
|
|||||||||
2010
|
2009
|
||||||||
Supplementary disclosure of cash flow information
|
|||||||||
Interest paid
|
$ | − | $ | 79 | |||||
Non-cash financing and investing transactions
|
|||||||||
Conversion of preferred stock to common stock
|
$ | − | $ | 86 | |||||
Issuance of long-term debt for payment of interest in kind
|
$ | 208 | $ | 72 | |||||
Reclassification of equity linked instrument to derivative liability
|
$ | − | $ | 1,353 | |||||
Issuance of preferred shares for payment of dividends in kind
|
$ | 30 | $ | 17 | |||||
Warrants issued for interest recorded as derivative liability
|
$ | 170 | $ | 19 | |||||
Warrants issued in connection with Bridge Loans recorded as derivative liabilities
|
$ | 622 | $ | − | |||||
Issuance of common stock for services
|
$ | 66 | $ | − |
1.
|
Nature of business
|
1.
|
Nature of business
|
3.
|
Patents
|
3.
|
Patents (continued)
|
4.
|
Debt:
|
June 30, 2010
|
December 31, 2009
|
|
Expected term
|
.03 to 3.00 years
|
0.5 to 3.00 years
|
Volatility
|
152.1% - 171.4%
|
139.0% - 156.0%
|
Risk-free interest rate
|
1.00%
|
1.70%
|
Dividend yield
|
0%
|
0%
|
Value at
|
Quoted prices in active markets
|
Significant other observable inputs
|
Significant unobservable inputs
|
||||
June 30, 2010
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||
Derivative liability
|
$ 918
|
$ −
|
$
−
|
$ 918
|
|
Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
|
|
Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.
|
5.
|
Derivative liability (continued)
|
Derivative Liability
|
||||
Balance at December 31, 2009
|
$ | 422 | ||
Additional liabilities recorded related to Bridge loans and paid in kind interest
|
791 | |||
Gain on derivative liability
|
(295 | ) | ||
Balance at June 30, 2010
|
$ | 918 |
6.
|
Net loss per share
|
7.
|
Equity
|
7.
|
Equity(continued)
|
Three and Six Months Ended
June 30, 2010
|
Three and Six Months
Ended
June 30, 2009
|
||
Risk free interest rate
|
1.12% – 5.11%
|
1.45% – 5.11%
|
|
Expected life (years)
|
2.82 – 7.00
|
3.21 – 6.88
|
|
Expected volatility
|
91.99% – 147.41%
|
80.96% – 131.35%
|
|
Expected dividends
|
None
|
None
|
Three Months Ended June 30,
|
Six months Ended June 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Research and development
|
$ | 2 | $ | 11 | $ | 4 | $ | 15 | ||||||||
Sales and marketing
|
22 | 5 | 39 | 13 | ||||||||||||
General and administrative
|
5 | 12 | 13 | 26 | ||||||||||||
Director options
|
− | − | − | − | ||||||||||||
Stock-based compensation expense
|
$ | 29 | $ | 28 | $ | 56 | $ | 54 |
7.
|
Equity (continued)
|
As of June 30,
|
||||||||||||||||||||||||||||||||
2010
|
2009
|
|||||||||||||||||||||||||||||||
Options
|
Shares
(000)
|
Weighted Average Exercise
Price
|
Weighted average Remaining Contractual
Term
|
Aggregate Intrinsic
Value
|
Shares
(000)
|
Weighted Average Exercise
Price
|
Weighted average Remaining Contractual
Term
|
Aggregate Intrinsic
Value
|
||||||||||||||||||||||||
Outstanding at January 1,
|
10,231 | $ | 0.34 | 7,608 | $ | 0.48 | ||||||||||||||||||||||||||
Granted
|
1,250 | $ | 0.10 | $ | − | 1,200 | $ | 0.10 | ||||||||||||||||||||||||
Exercised
|
− | − | ||||||||||||||||||||||||||||||
Forfeited or expired
|
(1,663 | ) | $ | 0.14 | $ | − | (595 | ) | $ | 0.77 | ||||||||||||||||||||||
Outstanding at June 30
|
9,818 | $ | 0.35 | 3.55 | $ | − | 8,213 | $ | 0.42 | 4.53 | $ | − | ||||||||||||||||||||
Vested and expected to vest at June 30
|
9,818 | $ | 0.35 | 3.55 | $ | − | 8,213 | $ | 0.42 | 4.53 | $ | − | ||||||||||||||||||||
Exercisable at June 30
|
7,968 | $ | 0.40 | 2.91 | $ | − | 5,616 | $ | 0.54 | 3.74 | $ | − |
As of June 30, 2010
|
||||||||||
Options Outstanding
|
Options Exercisable
|
|||||||||
Range of Exercise Prices
|
Number Outstanding
|
Weighted Average Remaining Contractual Life (in years)
|
Weighted Average Exercise Price
|
Number Outstanding
|
Weighted Average Exercise Price
|
|||||
$ 0.07 – $0.50
|
6,822
|
4.1
|
$ 0.16
|
4,972
|
$ 0.18
|
|||||
0.51 – 1.00
|
2,908
|
2.3
|
$ 0.72
|
2,908
|
$ 0.72
|
|||||
1.01 – 2.00
|
73
|
1.7
|
$ 1.66
|
73
|
$ 1.66
|
|||||
2.01 – 3.00
|
−
|
−
|
$
−
|
−
|
$
−
|
|||||
3.01 – 7.50
|
15
|
0.0
|
$ 3.56
|
15
|
$ 3.56
|
|||||
9,818
|
3.55
|
$ 0.35
|
7,968
|
$ 0.40
|
As of June 30, 2009
|
||||||||||
Options Outstanding
|
Options Exercisable
|
|||||||||
Range of Exercise Prices
|
Number Outstanding
|
Weighted Average Remaining Contractual Life (in years)
|
Weighted Average Exercise Price
|
Number Outstanding
|
Weighted Average Exercise Price
|
|||||
$ 0.10 – $0.50
|
5,184
|
5.3
|
$ 0.21
|
2,588
|
$ 0.28
|
|||||
0.51 – 1.00
|
2,941
|
3.3
|
$ 0.72
|
2,940
|
$ 0.72
|
|||||
1.01 – 2.00
|
73
|
2.7
|
$ 1.66
|
73
|
$ 1.66
|
|||||
2.01 – 3.00
|
−
|
−
|
$
−
|
−
|
$
−
|
|||||
3.01 – 7.50
|
15
|
1.0
|
$ 3.56
|
15
|
$ 3.56
|
|||||
8,213
|
4.5
|
$ 0.42
|
5,616
|
$ 0.54
|
7.
|
Equity (continued)
|
Nonvested Shares
|
Shares
|
Weighted Average
Grant-Date
Fair Value
|
||||||
Nonvested at January 1, 2010
|
1,982 | $ | 0.13 | |||||
Granted
|
1,250 | $ | 0.10 | |||||
Forfeited
|
(979 | ) | $ | 0.11 | ||||
Vested
|
(403 | ) | $ | 0.13 | ||||
Nonvested at June 30, 2010
|
1,850 | $ | 0.12 |
COMMUNICATION INTELLIGENCE CORPORATION
Pro Forma Balance Sheet as of June 30, 2010
(Unaudited)
(In thousands, except per share amounts)
|
||||||||||||
June 30, 2010
|
||||||||||||
Actual
|
Adjustments for Recapitalization and Offering
|
Pro Forma
|
||||||||||
Assets
|
||||||||||||
Current assets:
|
||||||||||||
Cash and cash equivalents (1)
|
$ | 567 | $ | 1,368 | $ | 1,935 | ||||||
Accounts receivable, net
|
59 | 59 | ||||||||||
Prepaid expenses and other current assets
|
104 | 104 | ||||||||||
Total current assets
|
730 | 2,098 | ||||||||||
Property and equipment, net
|
24 | 24 | ||||||||||
Patents, net
|
2,582 | 2,582 | ||||||||||
Capitalized software development costs, net
|
1,421 | 1,421 | ||||||||||
Deferred financing costs
|
294 | (294 | ) | − | ||||||||
Other assets
|
29 | 29 | ||||||||||
Total assets
|
$ | 5,080 | $ | 1,074 | $ | 6,154 | ||||||
Liabilities and Stockholders'(Deficit) Equity
|
||||||||||||
Current liabilities:
|
||||||||||||
Current portion of long-term debt (2)
|
$ | 4,455 | $ | (4,455 | ) | $ | − | |||||
Accounts payable
|
457 | 457 | ||||||||||
Accrued compensation
|
359 | 359 | ||||||||||
Other accrued liabilities
|
181 | 181 | ||||||||||
Deferred revenue
|
450 | 450 | ||||||||||
Total current liabilities
|
5,902 | (4,455 | ) | 1,447 | ||||||||
Deferred revenue long-term
|
769 | 769 | ||||||||||
Derivative liability (3)
|
918 | 1,156 | 2,074 | |||||||||
Total liabilities
|
7,589 | (3,299 | ) | 4,290 | ||||||||
Commitments and contingencies
|
||||||||||||
Stockholders' (deficit) equity:
|
||||||||||||
Series A-1 Cumulative Preferred Stock
|
781 | 781 | ||||||||||
Series B Convertible Preferred Stock
|
6,069 | 6,069 | ||||||||||
Common stock
|
1,924 | 1,924 | ||||||||||
Additional paid-in capital
|
101,289 | (1,402 | ) | 99,887 | ||||||||
Accumulated deficit
|
(106,460 | ) | (294 | ) | (106,754 | ) | ||||||
Accumulated other comprehensive loss
|
(43 | ) | (43 | ) | ||||||||
Total stockholders' (deficit) equity
|
(2,509 | ) | 4,373 | 1,864 | ||||||||
Total liabilities and stockholders' (deficit) equity
|
$ | 5,080 | 1,074 | 6,154 |
·
|
Technological, engineering, manufacturing, quality control or other circumstances that could delay the sale or shipment of products;
|
·
|
Economic, business, market and competitive conditions in the software industry and technological innovations that could affect the Company’s business;
|
·
|
The Company’s inability to protect its trade secrets or other proprietary rights, operate without infringing upon the proprietary rights of others and prevent others from infringing on the proprietary rights of the Company; and
|
·
|
General economic and business conditions and the availability of sufficient financing.
|
Payments due by period
|
||||||||||||||||||||||||||||
Contractual obligations
|
Total
|
2010
|
2011
|
2012
|
2013
|
2014
|
Thereafter
|
|||||||||||||||||||||
Current portion of long-term debt (1)
|
$ | 6,259 | $ | 6,259 | $ | – | $ | – | $ | – | $ | – | $ | – | ||||||||||||||
Operating lease commitments (2)
|
1,643 | 277 | 267 | 275 | 283 | 541 | ||||||||||||||||||||||
Total contractual cash obligations
|
$ | 7,902 | $ | 6,259 | $ | 277 | $ | 267 | $ | 275 | $ | 283 | $ | 541 |
1.
|
Current portion of long-term debt reported on the balance sheet is net of approximately $1,805 in discounts representing the fair value of warrants issued in connection with the Company’s debt financings.
|
2.
|
The Company renegotiated the office lease in May 2010 which provides for rent abatement until January 1, 2011. The base rent will increase approximately 3% per annum over the term of the lease, which expires on October 31, 2016.
|
Exhibit Number
|
Document
|
3.1
|
Certificate of Incorporation of the Company, as amended, incorporated herein by reference to Exhibits 3.1, 3.2, 3.3 and 3.4 to the Company's Registration Statement on Form 10 (File No. 0-19301).
|
3.2
|
Certificate of Amendment to the Company's Certificate of Incorporation (authorizing the reclassification of the Class A Common Stock and Class B Common Stock into one class of Common Stock) as filed with the Delaware Secretary of State's office on November 1, 1991, incorporated herein by reference to Exhibit 3 to Amendment 1 on Form 8 to the Company's Form 8-A (File No. 0-19301).
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3.3
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By-laws of the Company adopted on October 6, 1986, incorporated herein by reference to Exhibit 3.5 to the Company's Registration Statement on Form 10 (File No. 0-19301).
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3.4
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By-laws of the Company adopted on October 6, 1986, incorporated herein by reference to Exhibit 3.5 to the Company's Registration Statement on Form 10 (File No. 0-19301).
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3.5
|
Certificate of Amendment to the Company’s Amended and Restated Certificate of Incorporation dated January 24, 2001, incorporated herein by reference to Exhibit 3.5 to the Company’s Registration Statement on Form S/1, filed December 28, 2007.
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3.6
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Certificate of Elimination of the Company’s Certificate of Designation of the Series A Preferred Stock dated August 17, 2001, incorporated herein by reference to Exhibit 3.6 to the Company’s Registration Statement on Form S/1, filed December 28, 2007.
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3.7
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Certificate of Amendment to the Company’s Amended and Restated Certificate of Incorporation filed with the Delaware Secretary of State August 17, 2007, incorporated herein by reference to Exhibit 3.7 to the Company’s Registration Statement on Form S/1 filed on December 28, 2007.
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3.8
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Amended and Restated Certificate of Incorporation of the Company filed with the Delaware Secretary of State on May 18, 1995, incorporated herein by reference to Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q filed on August 14, 2008.
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3.9
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Certificate of Designations, Powers, Preferences and Rights of the Series A Cumulative Convertible Preferred Stock filed with the Delaware Secretary of State on June 4, 2008, incorporated herein by reference to Exhibit 4.23 to the Company’s Quarterly Report on Form 10-Q filed on August 14, 2008.
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3.10
|
Certificate of Amendment to the Company’s Amended and Restated Certificate of Incorporation filed with the Delaware Secretary of State on June 30, 2008, incorporated herein by reference to Exhibit 3.7 to the Company’s Quarterly Report on Form 10-Q filed on August 14, 2008.
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3.11
|
Certificate of Designations, Powers, Preferences and Rights of the Series A-1 Cumulative Convertible Preferred Stock filed with the Delaware Secretary of State on October 30, 2008, incorporated herein by reference to Exhibit 3.11 to the Company’s Annual Report on Form 10-K filed on March 12, 2009.
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3.12
|
Certificate of Elimination of the Company’s Series A Cumulative Convertible Preferred Stock filed with the Delaware Secretary of State on December 30, 2008, incorporated herein by reference to Exhibit 3.12 to the Company’s Annual Report on Form 10-K filed on March 12, 2009.
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3.13
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Certificate of Amendment to the Company’s Amended and Restated Certificate of Incorporation filed with the Delaware Secretary of State on June 30, 2009, incorporated herein by reference to Exhibit 3.13 to the Company’s Quarterly Report on Form 10-Q filed on August 14, 2009.
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*3.14
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Amendment No. 1 to By-laws dated June 17, 2010.
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*10.49
|
Amendment No. 2 to Credit Agreement dated May 4, 2010, by and among the Company, the Lenders and Additional Lenders Parties Hereto and SG Phoenix as Collateral Agent
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*10.50
|
Amendment No. 2 to Registration Rights Agreement dated May 4, 2010, by and among the Company and the parties identified therein
|
10.51
|
Exchange Agreement dated June 21, 2010 between Communication Intelligence Corporation, Phoenix Venture Fund LLC, Michael Engmann, Ronald Goodman and the Parties Signatory Thereto, incorporated herein by reference to Exhibit 10.49 to the Company’s 8-K filed June 25, 2010
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10.52
|
Series B Preferred Stock Purchase Agreement dated June 21, 2010 between Communication Intelligence Corporation, Phoenix Venture Fund LLC and the Investors Signatory Thereto, incorporated herein by reference to Exhibit 10.49 to the Company’s 8-K filed June 25, 2010
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*31.1
|
Certification of Company’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
*31.2
|
Certificate of Company’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
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*32.1
|
Certification of Chief Executive Officer pursuant to 18 USC Section 1750, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
*32.2
|
Certification of Chief Financial Officer pursuant to 18 USC Section 1750, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
*
|
Filed herewith.
|
COMMUNICATION INTELLIGENCE CORPORATION
|
||
Registrant
|
||
August 16, 2010
|
/s/ Francis V. Dane
|
|
Date
|
Francis V. Dane
|
|
(Principal Financial Officer and Officer Duly Authorized to Sign on Behalf of the Registrant)
|
BORROWER:
|
COMMUNICATION INTELLIGENCE CORPORATION
By:
/s/ Francis V. Dane
Name: Francis. V. Dane
Title: CFO
|
MAJORITY LENDERS:
|
PHOENIX VENTURE FUND LLC
By: SG Phoenix Ventures LLC,
its Managing Member
By:
/S/ Andrea Goren
Name: Andrea Goren
Title: Member
|
/s/ Michael Engmann
MICHAEL ENGMANN
|
|
COLLATERAL AGENT:
|
SG PHOENIX LLC
By:
/s/ Andrea Goren
Name: Andrea Goren
Title: Member
|
BRIDGE LENDER:
|
PHOENIX VENTURE FUND LLC
By: SG Phoenix Ventures LLC,
its Managing Member
By:
/s/ Andrea Goren
Name: Andrea Goren
Title: Member
|
COMPANY:
|
COMMUNICATION INTELLIGENCE CORPORATION
By:
/s/ Francis V. Dane
Name: Francis V. Dane
Title: Chief Financial Officer
|
EXISTING INVESTORS:
|
PHOENIX VENTURE FUND LLC
By: SG Phoenix Ventures LLC,
its Managing Member
By:
/s/ Andrea Goren
Name: Andrea Goren
Title: Member
|
/S/ Michael Engmann
MICHAEL ENGMANN
|
ADDITIONAL INVESTOR:
|
PHOENIX VENTURE FUND LLC
By: SG Phoenix Ventures LLC,
its Managing Member
By:
/s/ Andrea Goren
Name: Andrea Goren
Title: Member
|