Delaware
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20-2876380
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(State of incorporation)
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(I.R.S. Employer
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Identification Number)
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Omagine, Inc.
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||
Table of Contents
to Amendment No. 2 to the Annual Report on Form 10-K
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Fiscal Year Ended December 31, 2011
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Page
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3
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4
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Part I
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5
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16
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16
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16
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Part II
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17 | ||
19
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19
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23
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23
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23
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24
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Part III
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25
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26
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32 | ||
32
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33
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Part IV
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34
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(i)
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re-formatting the presentation of our financial statements to reflect our present status as a Development Stage Entity (“DSE”), as such term is defined in ASC 915 as issued by the Financial Accounting Standards Board, and
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(ii)
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removing, to comply with the guidance provided in Item 10(b) of Regulation S-K, our previously disclosed projection of future cash flows in recognition of our limited operating history, existing business conditions and the difficulty of making an accurate projection for a period which is seven years from an indeterminate future date; and removing any corresponding discussions related to such projection, and
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(iii) | amending Item 9A - Controls and Procedures – to comply with the requirements of Items 307 and 308 of Regulation S-K, and | |
(iv) | amending Item 13 – Certain Relationships and Related Transactions, and Director Independence – Related Party Payables – to provide the information required by Item 404 of Regulation S-K for the related party payables referenced in Item 13. |
●
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the uncertainty associated with whether or not the Government of the Sultanate of Oman will honor its commitment with respect to its intention to sign the agreed Development Agreement (“DA”) with Omagine LLC;
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●
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the uncertainty associated with military and political events in the Middle East and North Africa (the “MENA Region”) in general;
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●
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the success or failure of the Company’s efforts to secure additional financing, including project financing for the Omagine Project;
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●
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oversupply of residential and commercial property inventory or other adverse conditions in the Oman real estate market;
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●
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the impact of regional and international economies and future events (including natural disasters) on the Oman economy, on the Company’s business and operations in Oman, on tourism within and into Oman, on the oil and natural gas businesses in Oman and on other major industries operating within the Omani market;
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●
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deterioration or malaise in economic conditions, including the continuing destabilizing factors in, and continuing slow recovery of, the Oman, MENA Region, and international real estate markets, as well as the impact of continuing depressed levels of consumer and business confidence in the state of the Omani and international economies;
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●
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inflation, interest rates and movements in interest rates, and securities market and monetary fluctuations;
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●
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acts of war, civil or political unrest, terrorism or political instability; or
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●
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the ability to attract and retain skilled employees.
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(i)
|
the Pre-Development Expense Amount and,
|
(ii)
|
the $10 million Success Fee.
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1.
|
CCIC’s two subsidiaries will invest an aggregate of 19,010,000 Omani Rials in cash (equivalent to approximately $49,426,000) into Omagine LLC. CCC-Panama will invest 12,673,333 Omani Rials (equivalent to approximately $32,950,666) and CCC-Oman will invest 6,336,667 Omani Rials in cash (equivalent to approximately $16,475,334), as follows:
|
|
(i)
|
As of the date hereof, CCC-Panama has invested 15,000 Omani Rials (equivalent to approximately $39,000) into Omagine LLC and CCC-Panama will invest an additional 12,658,333 Omani Rials (equivalent to approximately $32,911,666) on the Financing Agreement Date.
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(ii)
|
As of the date hereof, CCC-Oman has invested 7,500 Omani Rials (equivalent to approximately $19,500) into Omagine LLC and CCC-Oman will invest an additional 6,329,167 Omani Rials (equivalent to approximately $16,455,834) on the Financing Agreement Date.
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(iii)
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The CCC-Panama and CCC-Oman initial combined investments of 22,500 Omani Rials (equivalent to approximately $58,500) have been received by Omagine LLC as of the date hereof and payment of the CCC-Panama and CCC-Oman combined investment balance of approximately $49,367,500 is contingent upon (i) the signing of a contract between Omagine LLC and CCC-Oman appointing CCC-Oman as the general contractor for the Omagine Project, and (ii) the occurrence of the Financing Agreement Date .
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(iv)
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The result of the foregoing is that CCC-Panama presently owns ten percent (10%) of Omagine LLC and CCC-Oman presently owns five percent (5%) of Omagine LLC. Absent any further Omagine LLC equity sales, CCC-Panama will continue to own ten percent (10%) of Omagine LLC and CCC-Oman will continue to own five percent (5%) of Omagine LLC.
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2.
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RCA will invest an aggregate of 7,678,125 Omani Rials in cash (equivalent to approximately $19,963,125) plus RCA will also invest the value of the payment-in-kind (the “PIK”) into Omagine LLC as follows:
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(i)
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As of the date hereof, RCA has invested 37,500 Omani Rials (equivalent to approximately $97,500) into Omagine LLC and RCA will invest an additional 7,640,625 Omani Rials (equivalent to approximately $19,865,625) on the Financing Agreement Date.
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(ii)
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Concurrent with Omagine LLC acquiring its rights over the Omagine Site pursuant to the terms of the Development Agreement, the PIK will be valued and such value will be booked as an additional capital investment by RCA into Omagine LLC.
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(iii)
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RCA’s initial cash investment of approximately $97,500 has been received by Omagine LLC as of the date hereof and payment of the RCA cash investment balance of approximately $19,865,625 is contingent upon the occurrence of the Financing Agreement Date.
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(iv)
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The result of the foregoing is that RCA presently owns twenty-five percent (25%) of Omagine LLC. Absent any further Omagine LLC equity sales, RCA will continue to own twenty-five percent (25%) of Omagine LLC.
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3.
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Omagine, Inc. will invest an aggregate of 300,000 Omani Rials in cash (equivalent to approximately $780,000) into Omagine LLC as follows:
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(i)
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As of As of the date hereof Omagine, Inc. has invested an aggregate of 90,000 Omani Rials (equivalent to approximately $234,000) into Omagine LLC.
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(ii)
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Omagine Inc. will invest an additional 210,000 Omani Rials (equivalent to approximately $546,000) into Omagine LLC (the “OMAG Final Equity Investment”) after the DA is signed but before the Financing Agreement Date.
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(iii)
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The result of the foregoing is that Omagine, Inc. presently owns sixty percent (60%) of Omagine LLC. Absent any further Omagine LLC equity sales, Omagine, Inc. will continue to own sixty percent (60%) of Omagine LLC.
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Quarter Ended
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High
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Low
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||||||
3/31/10
|
0.55
|
0.55
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||||||
6/30/10
|
0.60
|
0.55
|
||||||
9/30/10
|
1.63
|
1.63
|
||||||
12/31/10
|
2.00
|
1.65
|
||||||
3/31/11
|
0.90
|
0.80
|
||||||
6/31/11
|
2.14
|
2.01
|
||||||
9/30/11
|
4.08
|
3.79
|
||||||
12/31/11
|
1.75
|
1.30
|
Name
|
Age
|
Position
|
Frank J. Drohan
|
67
|
Chairman of the Board of Directors, President, Chief Executive & Financial Officer
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Charles P. Kuczynski
|
58
|
Vice-President, Secretary and Director
|
William Hanley
|
70
|
Controller & Principal Accounting Officer
|
Louis J. Lombardo
|
67
|
Director
|
(1) | Amounts included under Column (c) represent cash salary payments and amounts included under Column (e) represent unpaid salary which has been accrued on Registrant's books. |
(2) | Column (d) represents contributions of the Registrant's Common Stock to the accounts of eligible employees of its 401(k) Plan, valued at the closing bid price on the dates of such contributions. |
(3) | Column (f) represents the dollar amount recognized as compensation expense for financial statement reporting purposes for the year indicated under ASC 718, and not an amount paid to or realized by the named executive officer. There can be no assurance that the amounts determined by ASC 718 will ever be realized. Assumptions used in the calculation of these amounts are included in Note 1 - STOCK-BASED COMPENSATION - to the Company's audited financial statements for the fiscal years ended December 31, 2010 and December 31, 2011. |
(a) | (b) | (c) | (d) | (e) | |||||||||
Name
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Number of Securities Underlying Unexercised Options (#) Exercisable
|
Number of Securities Underlying Unexercised Options (#) Un-exercisable
|
Option Exercise Price
|
Option Expiration
|
|||||||||
Frank J. Drohan
|
60,000 | 40,000 | $ | 2.60 |
September 23, 2018
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Number of securities
to be issued upon
exercise of
outstanding options
(a)
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Weighted-average
exercise price of
outstanding
options
(b)
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Number of securities
remaining available for future issuance
under equity compensation plans
[excluding securities in column (a)]
(c)
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|||||||
The Plan
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344,000
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$
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2.01
|
1,994,000
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(a)
Name
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(b)
Fees Earned
($)
|
(c)
Stock Awards
($)
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(d)
Option Awards
($)(1)
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(e)
All Other
Compensation ($)
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(f)
Total
($)
|
|||||||||||||||
Salvatore Bucchere
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$
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5,250
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0
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0
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0
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5,250
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||||||||||||||
Kevin Green
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$
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5,000
|
0
|
0
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0
|
5,000
|
||||||||||||||
Louis Lombardo
|
$
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4,750
|
0
|
0
|
0
|
4,750
|
|
(1) Column (d) represents the dollar amount recognized as compensation expense for financial statement reporting purposes for the year indicated under ASC 718, and not an amount paid to or realized by the named director. There can be no assurance that the amounts determined by ASC 718 will ever be realized. Assumptions used in the calculation of these amounts are included in Note 1 - STOCK-BASED COMPENSATION - to the Company's audited financial statements for the fiscal year ended December 31, 2011. Directors who are not Company employees are compensated for their services as a director as shown in the chart below:
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Compensation Item
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Amount
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|||
Annual Retainer
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$
|
0
|
||
Attendance at Annual Meeting
|
500
|
|||
Per Board Meeting Fee (attendance in person)
|
500
|
|||
Per Board Meeting Fee (attendance by teleconference)
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250
|
|||
Per Committee Meeting Fee (in person or by teleconference)
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0
|
|||
Appointment Fee Upon Election to Board of Directors
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0
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|||
Non-qualified stock options
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(1
|
) (2)
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Name
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No. of shares
|
Date of Stock Grant
|
|||
Mahmoud Jibril El-Warfally
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150,000
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12/8/2011
|
|||
Hassan Hamdan
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20,000
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12/8/2011
|
|||
Tania Tavoukjian
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15,000
|
12/8/2011
|
|||
Ali Chabanni
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20,000
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12/8/2011
|
|||
Sarah Shebaya
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5,000
|
12/8/2011
|
|||
Adnan Harmalani
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5,000
|
12/8/2011
|
No. of Options
|
Exercise Price
|
Date of Grant
|
|||||||
Sam Hamdan
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160,000
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$
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1.25
|
3/31/2007
|
|||||
Salvatore Bucchere
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6,000
|
$
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4.50
|
10/30/2007
|
|||||
Kevin Green
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6,000
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$
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4.50
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10/30/2007
|
|||||
Louis Lombardo
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6,000
|
$
|
4.00
|
1/1/2008
|
|||||
Frank Drohan
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100,000
|
$
|
2.60
|
9/23/2008
|
|||||
Charles Kuczynski
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50,000
|
$
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2.60
|
9/23/2008
|
|||||
William Hanley
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6,000
|
$
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2.60
|
9/23/2008
|
|||||
Salvatore Bucchere
|
2,000
|
$
|
0.51
|
7/1/2010
|
|||||
Kevin Green
|
2,000
|
$
|
0.51
|
7/1/2010
|
|||||
Salvatore Bucchere
|
2,000
|
$
|
0.85
|
5/17/2011
|
|||||
Kevin Green
|
2,000
|
$
|
0.85
|
5/17/2011
|
|||||
Louis Lombardo
|
2,000
|
$
|
0.85
|
5/17/2011
|
No. of options
|
Exercise Price
|
Date of Grant
|
Expiration Date
|
|||||||
Frank Drohan
|
739,000
|
$
|
1.70
|
1/2/2012
|
12/31/2012
|
|||||
Charles Kuczynski
|
250,000
|
$
|
1.70
|
1/2/2012
|
12/31/2012
|
|||||
William Hanley
|
60,000
|
$
|
1.70
|
1/2/2012
|
12/31/2012
|
|||||
Salvatore Bucchere
|
50,000
|
$
|
1.70
|
1/2/2012
|
4/8/2013
|
|||||
Kevin Green *
|
50,000
|
$
|
1.70
|
1/2/2012
|
12/31/2012
|
|||||
Louis Lombardo
|
50,000
|
$
|
1.70
|
1/2/2012
|
12/31/2012
|
|||||
Sam Hamdan
|
750,000
|
$
|
1.70
|
1/2/2012
|
12/31/2012
|
|||||
Gregory Long
|
10,000
|
$
|
1.70
|
1/2/2012
|
12/31/2012
|
|||||
Agron Telaku
|
10,000
|
$
|
1.70
|
1/2/2012
|
12/31/2012
|
|||||
Sam Gill
|
7,500
|
$
|
1.70
|
1/2/2012
|
12/31/2012
|
|||||
Patricia Ricioppo
|
7,500
|
$
|
1.70
|
1/2/2012
|
12/31/2012
|
|||||
Nicholas Drohan
|
5,000
|
$
|
1.70
|
1/2/2012
|
12/31/2012
|
|||||
Roz Cooperman
|
5,000
|
$
|
1.70
|
1/2/2012
|
12/31/2012
|
|||||
Frank Drohan
|
11,000
|
$
|
1.70
|
4/13/2012
|
12/31/2012
|
|||||
Terry Torok
|
10,000
|
$
|
1.70
|
4/13/2012
|
12/31/2012
|
1)
|
One Year Options which are vested may be exercised in whole or in part by the holder thereof by delivery of a written notice to the Company (the “Exercise Notice”), of such holder’s election to exercise such One Year Options, which notice shall specify the number of shares of Common Stock (“Option Shares”) to be purchased, payment to the Company of an amount equal to $1.70 per Option Share multiplied by the number of Option Shares for which the One Year Options are being exercised (the “Aggregate Option Exercise Price”) in cash or wire transfer of immediately available funds and the surrender of the relevant certificate representing such One Year Options (or an indemnification undertaking with respect to such One Year Options in the case of the loss, theft or destruction of such certificate). Such documentation and payment shall be delivered by such holder to a common carrier for overnight delivery to the Company as soon as practicable following such date, but in no event later than one business day prior to the Expiration Date (“Cash Basis”) or
|
2)
|
by delivering an Exercise Notice and in lieu of making payment of the Aggregate Option Exercise Price in cash or wire transfer, elect instead to receive upon such exercise the “Net Number” of shares of Common Stock determined according to the following formula (the “Cashless Exercise”):
|
Net Number | = | (A x B) – (A x C) | ||
B |
A =
|
the total number of Option Shares with respect to which the relevant One Year Options are then being exercised.
|
|
B =
|
the Closing Bid Price of the Common Stock on the date of exercise of the relevant One Year Options.
|
|
C =
|
the Option Exercise Price of one dollar and seventy cents ($1.70) in United States currency.
|
Beneficial
Ownership (7)
|
Percent *
|
|||||||
Frank J. Drohan (1)(3)
|
1,805,088
|
12.6
|
%
|
|||||
Charles P. Kuczynski (l)(4)
|
463,763
|
3.2
|
%
|
|||||
Louis J. Lombardo (1)(5)
|
59,177
|
0.4
|
%
|
|||||
Mohammed K. Al-Sada (2)
|
1,041,800
|
7.3
|
%
|
|||||
William Hanley (2)(6)
|
124,214
|
0.9
|
%
|
|||||
All officers and Directors
|
||||||||
As a Group of 4 Persons
|
2,452,242
|
17.1
|
%
|
(1) | The address for each of these individuals is c/o Omagine, Inc. and each is a director of Omagine, Inc. Messrs. Drohan and Kuczynski are officers of the Company. Mr. Green resigned as a director effective January 31, 2012. |
(2) | The address for each of these individuals is c/o Omagine, Inc. Mr. Hanley is an officer of Omagine, Inc. |
(3) | Does not include Mr. Drohan's (i) 60,000 currently exercisable and 40,000 un-exercisable Stock Options at $2.60 per share or (ii) 375,000 currently exercisable and 375,000 un-exercisable Stock Options at $1.70 per share. |
(4) | Does not include Mr. Kuczynski's (i) 30,000 currently exercisable and 20,000 un-exercisable Stock Options at $2.60 per share or (ii) 125,000 currently exercisable and 125,000 un-exercisable Stock Options at $1.70 per share. |
(5) | Does not include Mr. Lombardo's (i) 6,000 currently exercisable Stock Options at $4.00 per share, (ii) 2,000 currently exercisable Stock Options at $0.85 per share, (iii) 2,000 currently exercisable Stock Options at $1.70 per share, or (iv) 25,000 currently exercisable and 25,000 un-exercisable Stock Options at $1.70 per share. |
(6) | Does not include Mr. Hanley's (i) 6,000 currently exercisable Stock Options at $2.60 per share, or (ii) 30,000 currently exercisable and 30,000 un-exercisable Stock Options at $1.70 per share. |
(7) | None of these shares are subject to rights to acquire beneficial ownership, as specified in Rule 13d-3 (d)(1) under the Securities Exchange Act of 1934, as amended, and the beneficial owner has sole voting and investment power, subject to community property laws where applicable. |
Dec. 31,
|
Oct. 31,
|
|||||||
2011
|
2012
|
|||||||
Due to Frank J. Drohan, a director and the president of the Company, interest at 8%, due on demand, convertible into common stock at a conversion price of $2.00 per share:
|
||||||||
Principal
|
$ | 192,054 | $ | 0 | ||||
Accrued interest
|
$ | 51,649 | $ | 0 | ||||
Due to Charles P. Kuczynski, a director and the secretary of the Company, interest at 8%, due on demand, convertible into common stock at a conversion price of $2.00 per share:
|
||||||||
Principal
|
$ | 39,961 | $ | 39,961 | ||||
Accrued interest
|
$ | 10,747 | $ | 13,418 | ||||
Due to Louis J. Lombardo, a director of the Company, interest at 10%, due on demand, convertible into common stock at a conversion price of $2.50 per share:
|
||||||||
Principal
|
$ | 150,000 | $ | 150,000 | ||||
Accrued interest
|
$ | 18,685 | $ | 31,219 | ||||
Totals
|
$ | 463,096 | $ | 234,598 |
(1)
|
On March 31, 2012 a total of $243,703 representing the entire principal amount and accrued interest on Mr. Drohan’s Note as of March 31, 2012 was offset against the payment due from Mr. Drohan to the Company for the shares of Common Stock purchased by Mr. Drohan pursuant to the exercise of his Rights in the Rights Offering.
|
(2)
|
The amounts provided in the above chart reflect the largest aggregate amount of principal outstanding during the periods for which disclosures are provided.
|
December 31, 2011
|
||||
Due to Frank J. Drohan, a Director and the President of the Company
|
$ | 298,114 | ||
Due to Charles P. Kuczynski, a Director and the Secretary of the Company
|
$ | 139,250 | ||
Due to William Hanley, the Controller of the Company
|
$ | 110,592 | ||
Due to Louis J. Lombardo, a Director of the Company
|
$ | 4,750 | ||
Due to Kevin O'C. Green, a Director of the Company
|
$ | 8,500 | ||
Due to Salvatore J. Bucchere, a Director of the Company
|
$ | 500 | ||
Totals
|
$ | 561,706 |
Numbers
|
Description
|
3(i)
|
Restated Certificate of Incorporation of the Company dated June 2, 2010 (1)
|
3(ii)
|
By-laws of the Company (2)
|
3.2
|
Certificate of Ownership and Merger (3)
|
4.1
|
Form of Subscription and Warrant Agent Agreement, dated January 31, 2012 between the Company and Continental Stock Transfer & Trust Company (13)
|
10.1
|
The CCIC and CCC Agreement (3)
|
10.2
|
The December 8, 2008 Standby Equity Distribution Agreement (4)
|
10.3
|
The May 4, 2011 Standby Equity Distribution Agreement (10)
|
10.4
|
The Shareholder Agreement dated as of April 20, 2011 (11)
|
10.5
|
The amended Hamdan Amendment Agreement (14)
|
10.6
|
Lease agreement expiring February 28, 2013 between Contact Sports, Inc. and the Empire State Building LLC (9)
|
10.7
|
Employment Agreement between the Company and Frank Drohan dated as of September 1, 2001 (7)
|
10.8
|
Employment Agreement between the Company and Charles Kuczynski dated as of September 1, 2001(7)
|
10.9
|
Amendment Agreement to the May 4, 2011 SEDA, dated June 21, 2011 (12)
|
10.10
|
Lease modification agreement expiring February 28, 2013 between Omagine, Inc. and the Empire State Building (14)
|
14
|
The Code of Ethics (3)
|
99.1
|
The Omagine Inc. 401(k) Adoption Agreement (6)
|
99.2
|
The Approval Letter dated April 30, 2008 (English Translation) (5)
|
99.3
|
The Acceptance Letter dated May 31, 2008 (5)
|
99.4
|
Amended Omagine Inc. 2003 Stock Option Plan (8)
|
EX-101.INS
|
XBRL INSTANCE DOCUMENT
|
EX-101.SCH
|
XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT
|
EX-101.CAL
|
XBRL TAXONOMY EXTENSION CALCULATION LINKBASE
|
EX-101.DEF
|
XBRL TAXONOMY EXTENSION DEFINITION LINKBASE
|
EX-101.LAB
|
XBRL TAXONOMY EXTENSION LABELS LINKBASE
|
EX-101.PRE
|
XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE
|
(1)
|
Previously filed with the SEC on July 20, 2010 as an exhibit to the Company’s Report on Form 10-Q for the period ended June 30, 2010 and incorporated herein by reference thereto.
|
(2)
|
Previously filed with the SEC on November 18, 2005 as an exhibit to the Company’s quarterly Report on Form 10-QSB for the period ended September 30, 2005 and incorporated herein by reference thereto.
|
(3)
|
Previously filed with the SEC on April 14, 2008 as an exhibit to the Company’s Report on Form 10-KSB for the fiscal year ended December 31, 2007 and incorporated herein by reference thereto.
|
(4)
|
Previously filed with the SEC on December 31, 2008 as an exhibit to the Company’s current Report on Form 8-K and incorporated herein by reference thereto.
|
(5)
|
Previously filed with the SEC on March 3, 2009 as exhibits to the Company’s registration statement on Form S-1/A (File No. 333-156928) and incorporated herein by reference thereto.
|
(6)
|
Previously filed with the SEC on February 25, 2009 as an exhibit to the Company’s Report on Form 10-K for the fiscal year ended December 31, 2008 and incorporated herein by reference thereto.
|
(7)
|
Previously filed with the SEC on April 15, 2002 as an exhibit to the Company’s Report on Form 10-KSB for the fiscal year ended December 31, 2001 and incorporated herein by reference thereto.
|
(8)
|
|
(9)
|
Previously filed with the SEC on November 9, 2009 as an exhibit to the Company’s Report on Form 10-K/A amending the Company’s Report on Form 10-K for the fiscal year ended December 31, 2008 filed with the SEC on February 25, 2009, and incorporated herein by reference thereto.
|
(10)
|
Previously filed with the SEC on May 5, 2011 as an exhibit to the Company’s current Report on Form 8-K and incorporated herein by reference thereto.
|
(11)
|
Previously filed with the SEC on November 8, 2011 as an exhibit to the Company’s quarterly Report on Form 10-Q for the period ended September 30, 2011and incorporated herein by reference thereto and a reference copy was filed as an exhibit to the Company’s current Report on Form 8-K filed with the SEC on May 31, 2011.
|
(12)
|
Previously filed with the SEC on June 21, 2011 as an exhibit to the Company’s current Report on Form 8-K and incorporated herein by reference thereto.
|
(13)
|
Previously filed with the SEC on February 7, 2012 as an exhibit to the Company’s registration statement on Form S-1/A (Registration No. 333-179040) and incorporated herein by reference thereto.
|
(14)
|
Previously filed with the SEC on January 17, 2012 as an exhibit to the Company’s registration statement on Form S-1 (Registration No. 333-179040) and incorporated herein by reference thereto.
|
By:
|
/s/
Frank J. Drohan
|
||
FRANK J. DROHAN, Chairman
|
|||
of the Board of Directors,
|
|||
President and Chief
|
|||
Executive and Financial Officer
|
|||
(Principal Executive Officer and
|
|||
Principal Financial Officer)
|
By:
|
/s/
Frank J. Drohan
|
||
FRANK J. DROHAN, Chairman
|
|||
of the Board of Directors,
|
|||
President and Chief
|
|||
Executive and Financial Officer
|
|||
(Principal Executive Officer and
|
|||
Principal Financial Officer)
|
|||
By:
|
/s/ William Hanley
|
||
WILLIAM HANLEY, Controller and
|
|||
Principal Accounting Officer
|
|||
By:
|
/s/ Charles P. Kuczynski
|
||
CHARLES P. KUCZYNSKI,
|
|||
Vice President, Secretary and Director
|
|||
By:
|
/s/ Louis J. Lombardo
|
||
LOUIS J. LOMBARDO,
|
|||
Director
|
/s/ Michael T. Studer CPA P.C.
|
May 16, 2012 (except as to Notes 1 and 10 which are dated
January 22, 2013
)
Freeport, New York
|
October 11,2005
|
||||||||||||
(Inception of
|
||||||||||||
Development
|
||||||||||||
Stage to
|
||||||||||||
Year Ended December 31,
|
December 31,
|
|||||||||||
2011
|
2010
|
2011
|
||||||||||
REVENUE:
|
(As Restated -
Note 10)
|
|||||||||||
Total revenue
|
$ | - | $ | - | $ | - | ||||||
OPERATING EXPENSES:
|
||||||||||||
Officers and directors compensation (including
|
||||||||||||
stock-based compensation of $333,730 , $263,772 and
|
||||||||||||
$934,901, respectively)
|
466,230 | 453,772 | 2,288,068 | |||||||||
Professional fees
|
144,586 | 200,670 | 1,297,654 | |||||||||
Consulting fees (including stock-based compensation
|
||||||||||||
of $ $325,228, $ 18,768 and $381,532 respectively)
|
413,130 | 52,207 | 1,223,650 | |||||||||
Commitment fees
|
300,000 | - | 300,000 | |||||||||
Travel
|
114,908 | 180,418 | 858,138 | |||||||||
Occupancy
|
133,118 | 136,067 | 740,462 | |||||||||
Other general and administrative
|
196,956 | 215,141 | 1,447,076 | |||||||||
Total Operating Expenses
|
1,768,928 | 1,238,275 | 8,155,048 | |||||||||
OPERATING LOSS
|
(1,768,928 | ) | (1,238,275 | ) | (8,155,048 | ) | ||||||
OTHER (EXPENSE) INCOME (As Restated - Note 10)
|
||||||||||||
Settlement of Qatar Real Estate development dispute
|
- | - | 1,004,666 | |||||||||
Impairment of goodwill
|
- | - | (5,079,919 | ) | ||||||||
Amortization of debt discount
|
- | - | (93,910 | ) | ||||||||
Interest income
|
- | - | 8,805 | |||||||||
Interest expense
|
(55,679 | ) | (38,726 | ) | (207,711 | ) | ||||||
Other (Expense) - Net
|
(55,679 | ) | (38,726 | ) | (4,368,069 | ) | ||||||
NET LOSS FROM DEVELOPMENT STAGE ENTITY - CONTINUING OPERATIONS
|
||||||||||||
DEVELOPMENT - As Restated - Note 10)
|
(1,824,607 | ) | (1,277,001 | ) | (12,523,117 | ) | ||||||
Add net loss attributable to noncontrolling interest in Omagine LLC
|
20,156 | 20,156 | ||||||||||
NET LOSS ATTRIBUTABLE TO OMAGINE, INC. - As Restated - Note 10)
|
(1,804,451 | ) | (1,277,001 | ) | (12,502,961 | ) | ||||||
LOSS FROM DISCONTINUED OPERATIONS - SPORTS APPAREL
|
- | - | (345,990 | ) | ||||||||
NET LOSS ACCUMLATED DURING THE DEVELOPEMNT STAGE
|
(1,804,451 | ) | (1,277,001 | ) | (12,848,951 | ) | ||||||
Net preferred stock dividends
|
27,778 | |||||||||||
LOSS APPLICABLE TO COMMON STOCKHOLDERS
|
(1,804,451 | ) | (1,277,001 | ) | $ | (12,876,729 | ) | |||||
LOSS PER SHARE - BASIC AND DILUTED
|
$ | (0.14 | ) | $ | (0.11 | ) | $ | (1.49 | ) | |||
LOSS PER SHARE - CONTINUING OPERATIONS -REAL ESTATE DEVELOPMENT
|
$ | (1.45 | ) | |||||||||
LOSS PER SHARE DISCONTINUED OPERATIONS - SPORTS APPAREL
|
$ | (0.04 | ) | |||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
|
12,799,508 | 11,828,511 | 8,613,755 |
Deficit
|
Deficit
|
|||||||||||||||||||||||||||||||||||||||||||
Accumulated
|
Accumulated | |||||||||||||||||||||||||||||||||||||||||||
Prior to
|
During the | |||||||||||||||||||||||||||||||||||||||||||
Common Stock |
Development
|
Development | ||||||||||||||||||||||||||||||||||||||||||
Preferred Stock .
|
Issued and Outstanding .
|
Committed to be issued .
|
Capital in
|
Stage
|
Stage
|
|||||||||||||||||||||||||||||||||||||||
$0.001 Par
|
$0.001 Par
|
$0.001 Par
|
Excess of
|
Commencing
|
Commencing
|
Noncontrolling | ||||||||||||||||||||||||||||||||||||||
Shares
|
Value
|
Shares
|
Value
|
Shares
|
Value
|
Par Value
|
October 11,2005
|
October 11,2005
|
Interests in
Omagine LLC
|
Total
|
||||||||||||||||||||||||||||||||||
(As Restated -
Note 10)
|
(As Restated -
Note 10)
|
|||||||||||||||||||||||||||||||||||||||||||
Balances at October 11, 2005
|
||||||||||||||||||||||||||||||||||||||||||||
(inception of development stage)
|
108,350 | $ | 108 | 5,667,569 | $ | 5,668 | - | - | $ | 13,797,424 | $ | (9,201,144 | ) | - | - | $ | 4,602,056 | |||||||||||||||||||||||||||
Conversion of preferred stock for common stock
|
(1,250 | ) | (1 | ) | 10,000 | 10 | - | - | (9 | ) | - | - | - | - | ||||||||||||||||||||||||||||||
Issuance of preferred stock dividends in common stock
|
- | - | 348 | - | - | - | 1,457 | - | - | - | 1,457 | |||||||||||||||||||||||||||||||||
Beneficial conversion feature of Convertible Debenture
|
- | - | - | - | - | - | 132,208 | - | - | - | 132,208 | |||||||||||||||||||||||||||||||||
Value of warrant attached to Convertible Debenture
|
- | - | - | - | - | - | 69,421 | - | - | - | 69,421 | |||||||||||||||||||||||||||||||||
Reduction of preferred stock dividends accrual
|
- | - | - | - | - | - | - | - | 116,705 | - | 116,705 | |||||||||||||||||||||||||||||||||
Net loss
|
- | - | - | - | - | - | - | - | (5,534,319 | ) | - | (5,534,319 | ) | |||||||||||||||||||||||||||||||
Balances at December 31, 2005
|
107,100 | 107 | 5,677,917 | 5,678 | - | - | 14,000,501 | (9,201,144 | ) | (5,417,614 | ) | - | (612,472 | ) | ||||||||||||||||||||||||||||||
Issuance of common stock for cash
|
- | - | 10,000 | 10 | - | - | 19,990 | - | - | - | 20,000 | |||||||||||||||||||||||||||||||||
Issuance of common stock upon conversion of debentures
|
- | - | 495,032 | 495 | - | - | 196,882 | - | - | - | 197,377 | |||||||||||||||||||||||||||||||||
Conversion of preferred stock for common stock
|
(20,163 | ) | (20 | ) | 161,300 | 161 | - | (141 | ) | - | - | - | - | |||||||||||||||||||||||||||||||
Issuance of preferred stock dividends in common stock
|
- | - | 78,343 | 78 | - | - | 63,946 | - | - | - | 64,024 | |||||||||||||||||||||||||||||||||
Stock option expense
|
- | - | - | - | - | - | 56,791 | - | - | - | 56,791 | |||||||||||||||||||||||||||||||||
Beneficial conversion feature of Convertible Debenture
|
- | - | - | - | - | - | 52,778 | - | - | - | 52,778 | |||||||||||||||||||||||||||||||||
Preferred stock dividends
|
- | - | - | - | - | - | - | - | (21,042 | ) | - | (21,042 | ) | |||||||||||||||||||||||||||||||
Net loss
|
- | - | - | - | - | - | - | - | (767,951 | ) | - | (767,951 | ) | |||||||||||||||||||||||||||||||
Balances at December 31, 2006
|
86,937 | 87 | 6,422,592 | 6,422 | - | - | 14,390,747 | (9,201,144 | ) | (6,206,607 | ) | - | (1,010,495 | ) | ||||||||||||||||||||||||||||||
Issuance of common stock for consulting services
|
- | - | 1,250 | 1 | - | - | 749 | - | - | - | 750 | |||||||||||||||||||||||||||||||||
Issuance of common stock for cash
|
- | - | 570,000 | 570 | - | - | 754,430 | - | - | - | 755,000 | |||||||||||||||||||||||||||||||||
Purchase of common stock for cash
|
- | - | (2 | ) | - | - | - | (3 | ) | - | - | - | (3 | ) | ||||||||||||||||||||||||||||||
Issuance of common stock upon conversion of debentures
|
- | - | 547,526 | 548 | - | - | 126,396 | - | - | - | 126,944 | |||||||||||||||||||||||||||||||||
Issuance of common stock in payment of accounts payable
|
- | - | 560,067 | 560 | - | - | 341,470 | - | - | - | 342,030 | |||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of warrants
|
- | - | 295,866 | 296 | - | - | 1,038,829 | - | - | - | 1,039,125 | |||||||||||||||||||||||||||||||||
Preferred stock and dividends converted to common stock
|
(86,937 | ) | (87 | ) | 720,188 | 720 | - | - | 122,808 | - | - | - | 123,441 | |||||||||||||||||||||||||||||||
Cancellation of common stock issued for consulting services
|
- | - | (9,000 | ) | (9 | ) | - | - | (10,942 | ) | - | - | - | (10,951 | ) | |||||||||||||||||||||||||||||
Stock option expense
|
- | - | - | - | - | - | 20,187 | - | - | - | 20,187 | |||||||||||||||||||||||||||||||||
Preferred stock dividends
|
- | - | - | - | - | - | - | - | (123,441 | ) | - | (123,441 | ) | |||||||||||||||||||||||||||||||
Net loss
|
- | - | - | - | - | - | - | - | (1,043,190 | ) | - | (1,043,190 | ) | |||||||||||||||||||||||||||||||
Balances at December 31, 2007
|
- | - | 9,108,487 | 9,108 | - | - | 16,784,671 | (9,201,144 | ) | (7,373,238 | ) | - | 219,397 | |||||||||||||||||||||||||||||||
Issuance of common stock for consulting services
|
- | - | 2,230 | 3 | - | - | 7,498 | - | - | - | 7,501 | |||||||||||||||||||||||||||||||||
Issuance of common stock for cash
|
- | - | 109,500 | 110 | - | - | 235,090 | - | - | - | 235,200 | |||||||||||||||||||||||||||||||||
Contribution of common stock to 401(k) Plan
|
- | - | 20,192 | 20 | - | - | 52,480 | - | - | - | 52,500 | |||||||||||||||||||||||||||||||||
Issuance of common stock for SEDA commitment fees
|
- | - | 45,830 | 46 | - | - | 149,954 | - | - | - | 150,000 | |||||||||||||||||||||||||||||||||
Cancellation of common stock
|
- | - | (8,712 | ) | (9 | ) | - | - | 9 | - | - | - | - | |||||||||||||||||||||||||||||||
Stock option expense
|
- | - | - | - | - | - | 60,629 | - | - | - | 60,629 | |||||||||||||||||||||||||||||||||
Net loss
|
- | - | - | - | - | - | - | - | (1,307,630 | ) | - | (1,307,630 | ) | |||||||||||||||||||||||||||||||
Balances at December 31, 2008
|
- | - | 9,277,527 | 9,278 | - | - | 17,290,331 | (9,201,144 | ) | (8,680,868 | ) | - | (582,403 | ) | ||||||||||||||||||||||||||||||
Issuance of common stock for cash
|
- | - | 2,000 | 2 | - | - | 1,398 | - | - | - | 1,400 | |||||||||||||||||||||||||||||||||
Contribution of common stock to 401(k) Plan
|
- | - | 72,500 | 72 | - | - | 72,428 | - | - | - | 72,500 | |||||||||||||||||||||||||||||||||
Stock option expense
|
- | - | - | - | - | - | 112,328 | - | - | - | 112,328 | |||||||||||||||||||||||||||||||||
Sale of stock under Stock Equity Distribution Agreement
|
- | - | 1,308,877 | 1,309 | - | - | 553,691 | - | - | - | 555,000 | |||||||||||||||||||||||||||||||||
Net loss
|
- | - | - | - | - | - | - | - | (1,114,409 | ) | - | (1,114,409 | ) | |||||||||||||||||||||||||||||||
Balances at December 31, 2009
|
- | - | 10,660,904 | 10,661 | - | - | 18,030,176 | (9,201,144 | ) | (9,795,277 | ) | - | (955,584 | ) | ||||||||||||||||||||||||||||||
Adjustment for stock splits
|
- | - | 22 | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Issuance of common stock for cash
|
- | - | 336,972 | 337 | - | - | 304,163 | - | - | - | 304,500 | |||||||||||||||||||||||||||||||||
Contribution of common stock to 401(k) Plan
|
- | - | 289,996 | 290 | - | - | 72,210 | - | - | - | 72,500 | |||||||||||||||||||||||||||||||||
Issuance of common stock in payment of salaries payable
|
- | - | 82,305 | 82 | - | - | 99,918 | - | - | - | 100,000 | |||||||||||||||||||||||||||||||||
Issuance of common stock for stockholder investor relations
|
- | - | 118,750 | 119 | - | - | 47,381 | - | - | - | 47,500 | |||||||||||||||||||||||||||||||||
Stock option expense
|
- | - | - | - | - | - | 110,040 | - | - | - | 110,040 | |||||||||||||||||||||||||||||||||
Sale of stock under Stock Equity Distribution Agreement
|
- | - | 618,697 | 619 | - | - | 249,381 | - | - | - | 250,000 | |||||||||||||||||||||||||||||||||
Net loss
|
- | - | - | - | - | - | - | - | (1,277,001 | ) | - | (1,277,001 | ) | |||||||||||||||||||||||||||||||
Balances at December 31, 2010
|
- | - | 12,107,646 | 12,108 | - | - | 18,913,269 | (9,201,144 | ) | (11,072,278 | ) | - | (1,348,045 | ) | ||||||||||||||||||||||||||||||
Issuance of common stock for cash
|
- | - | 130,438 | 131 | - | - | 264,869 | - | - | - | 265,000 | |||||||||||||||||||||||||||||||||
Contribution of common stock to 401(k) Plan
|
- | - | 51,784 | 52 | - | - | 72,448 | - | - | - | 72,500 | |||||||||||||||||||||||||||||||||
Issuance of common stock for SEDA commitment fees
|
- | - | 244,216 | 244 | - | - | 299,756 | - | - | - | 300,000 | |||||||||||||||||||||||||||||||||
Stock option expense
|
- | - | - | - | - | - | 92,498 | - | - | - | 92,498 | |||||||||||||||||||||||||||||||||
Sale of stock under Stock Equity Distribution Agreement (Old)
|
- | - | 193,442 | 193 | - | - | 164,807 | - | - | - | 165,000 | |||||||||||||||||||||||||||||||||
Sale of stock under Stock Equity Distribution Agreement (New)
|
- | - | 111,175 | 111 | - | - | 229,889 | - | - | - | 230,000 | |||||||||||||||||||||||||||||||||
Stock grant to consultant
|
- | - | 15,000 | 15 | - | - | 6,735 | - | - | - | 6,750 | |||||||||||||||||||||||||||||||||
Stock options exercised by officers
|
- | - | - | - | 150,000 | 150 | 187,350 | - | - | - | 187,500 | |||||||||||||||||||||||||||||||||
Stock grants to foreign consultants
|
- | - | - | - | 215,000 | 215 | 299,495 | - | - | - | 299,710 | |||||||||||||||||||||||||||||||||
Adjustments for noncontrolling interests in Omagine LLC
|
- | - | - | - | - | - | 90,429 | - | - | 45,416 | 135,845 | |||||||||||||||||||||||||||||||||
Net loss
|
- | - | - | - | - | - | - | - | (1,804,451 | ) | - | (1,804,451 | ) | |||||||||||||||||||||||||||||||
Balances at December 31, 2011
|
- | $ | - | 12,853,701 | $ | 12,854 | 365,000 | $ | 365 | $ | 20,621,545 | $ | (9,201,144 | ) | $ | (12,876,729 | ) | $ | 45,416 | $ | (1,397,693 | ) | ||||||||||||||||||||||
October 11,
|
||||||||||||
2005(Inception
|
||||||||||||
of Development
|
||||||||||||
Stage to
|
||||||||||||
December 31,
|
||||||||||||
2011
|
||||||||||||
Year ended /December 31
|
As Restated -
|
|||||||||||
2011
|
2010
|
Note 10)
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net loss attributable to Omagine, Inc.
|
$ | (1,804,451 | ) | $ | (1,277,001 | ) | $ | (12,502,961 | ) | |||
Adjustments to reconcile net loss to net cash flows
|
||||||||||||
used by operating activities:
|
||||||||||||
Loss from discontinued operations - Sports Apparel
|
(345,990 | ) | ||||||||||
Net loss attributable to noncontrolling interests in
|
||||||||||||
Omagine LLC
|
(20,156 | ) | - | (20,156 | ) | |||||||
Depreciation and amortization
|
3,740 | 4,022 | 157,453 | |||||||||
Impairment of Goodwill
|
- | - | 5,079,919 | |||||||||
Stock based compensation related to stock options
|
92,498 | 110,040 | 452,473 | |||||||||
Issuance of Common Stock for Consulting fees
|
6,750 | - | 15,001 | |||||||||
Issuance of Common Stock for 401K Plan contributions
|
72,500 | 72,500 | 270,000 | |||||||||
Issuance of Common Stock for stockholder investor
|
||||||||||||
relations
|
- | 47,500 | 47,500 | |||||||||
Cancellation of Common Stock issued for consulting services
|
- | - | (10,951 | ) | ||||||||
Issuance of Common Stock in satisfaction of SEDA
|
||||||||||||
commitment fees
|
300,000 | - | 450,000 | |||||||||
Issuance of stock grants to foreign consultants
|
299,710 | - | 299,710 | |||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Prepaid expenses, other current assets and other
|
||||||||||||
assets
|
(18,476 | ) | 95 | (18,228 | ) | |||||||
Accounts Receivable
|
- | - | 86,665 | |||||||||
Inventories
|
- | - | 65,401 | |||||||||
Other assets
|
- | - | (235 | ) | ||||||||
Accrued interest on convertible notes payable
|
51,061 | 33,424 | 158,585 | |||||||||
Accounts payable
|
(16,800 | ) | (52,629 | ) | 405,735 | |||||||
Accrued officers' payroll
|
259,501 | 230,299 | 945,635 | |||||||||
Accrued expenses and other current liabilities
|
36,628 | 22,752 | 37,239 | |||||||||
Customer deposits
|
- | - | (43,212 | ) | ||||||||
Net cash flows used by operating activities
|
(737,495 | ) | (808,998 | ) | (4,470,417 | ) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Purchase of equipment
|
- | (1,158 | ) | (32,173 | ) | |||||||
Net cash flows used by investing activities
|
- | (1,158 | ) | (32,173 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Loans from officers and directors
|
8,659 | (1,948 | ) | (30,883 | ) | |||||||
Proceeds of issuance of convertible notes payable
|
- | 250,000 | 790,000 | |||||||||
Proceeds from sale of Common Stock
|
660,000 | 554,500 | 2,781,100 | |||||||||
Proceeds from exercise of common stock options
|
||||||||||||
and warrants
|
- | - | 1,039,125 | |||||||||
Purchase of Common stock
|
- | - | (3 | ) | ||||||||
Capital contributions from noncontrolling interests in
|
||||||||||||
Omagine LLC
|
156,000 | - | 156,000 | |||||||||
Net cash flows provided by financing activities
|
824,659 | 802,552 | 4,735,339 | |||||||||
NET INCREASE (DECREASE) IN CASH
|
87,164 | (7,604 | ) | 232,749 | ||||||||
CASH BEGINNING OF PERIOD
|
148,217 | 155,821 | 2,632 | |||||||||
CASH END OF PERIOD
|
$ | 235,381 | $ | 148,217 | $ | 235,381 | ||||||
SUPPLEMENTAL CASH FLOW INFORMATION:
|
||||||||||||
Income taxes paid
|
$ | 1,289 | $ | 3,031 | $ | 4,320 | ||||||
Interest paid
|
$ | - | $ | - | $ | 25,679 | ||||||
NON - CASH FINANCING ACTIVITIES:
|
||||||||||||
Acquisition of Journey of Light , Inc. through issuance of
|
||||||||||||
common stock and warrants:
|
||||||||||||
Fair value of assets acquired
|
$ | 49,146 | ||||||||||
Goodwill acquired
|
5,079,919 | |||||||||||
Fair value of liabilities assumed
|
(243,782 | ) | ||||||||||
- | - | $ | 4,885,283 | |||||||||
Issuance of convertible notes in satisfaction of accrued officer payroll
|
- | - | $ | 182,015 | ||||||||
Issuance of Common Stock on conversion of Debentures and accrued interest
|
- | - | $ | 126,944 | ||||||||
Issuance of Common Stock in payment of accounts payable
|
- | - | $ | 342,030 | ||||||||
Preferred stock dividend paid in Common Stock
|
- | - | $ | 102,399 | ||||||||
Issuance of Common Stock to two officers,pursuant to exercise of stock
|
||||||||||||
options granted,satisfied by the reduction of salaries payable to them
|
$ | 187,500 | - | $ | 187,500 | |||||||
Issuance of Common Stock in satisfaction of salaries payable
|
- | $ | 100,000 | $ | 100,000 |
NOTE 1
|
NATURE OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
|
Shares Issuable
|
||||||||
Years Ended
December 31,
|
||||||||
2011
|
2010
|
|||||||
Convertible Notes
|
288,621
|
266,341
|
||||||
Stock Options
|
284,000
|
404,000
|
||||||
Total Shares of Common Stock Issuable
|
572,621
|
670,341
|
December 31,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Due to the president of the Company, interest at 8%, due on demand,
|
||||||||
convertible into common stock at a conversion price of $2.00 per share:
|
||||||||
Principal
|
$
|
192,054
|
192,054
|
|||||
Accrued interest
|
51,649
|
36,285
|
||||||
Due to the secretary of the Company, interest at 8%, due on demand,
|
||||||||
convertible into common stock at a conversion price of $2.00 per share:
|
||||||||
Principal
|
39,961
|
39,961
|
||||||
Accrued interest
|
10,747
|
7,550
|
||||||
Due to a director of the Company, interest at 10%, due on demand,
|
||||||||
convertible into common stock at a conversion price of $2.50 per share:
|
||||||||
Principal
|
150,000
|
150,000
|
||||||
Accrued interest
|
18,685
|
3,685
|
||||||
Due to investors, interest at 15%, due on demand, convertible into common stock at a conversion price of $2.50 per share:
|
||||||||
Principal
|
50,000
|
50,000
|
||||||
Accrued interest
|
21,175
|
13,675
|
||||||
Due to investors, interest at 10%, due on demand, convertible into common stock at a conversion price of $2.50 per share:
|
||||||||
Principal
|
100,000
|
100,000
|
||||||
Accrued interest
|
13,678
|
3,678
|
||||||
Totals
|
$
|
647,949
|
$
|
596,888
|
Number of Shares
|
Weighted Average Exercise Price
|
Weighted Average Remaining Contractual Term (in years)
|
Aggregate Intrinsic Value
|
|||||||||||||
Outstanding at January 1, 2010
|
530,000
|
$
|
2.01
|
5.58
|
$
|
-
|
||||||||||
Granted in 2010
|
4,000
|
0.51
|
||||||||||||||
Exercised in 2010
|
-
|
-
|
||||||||||||||
Forfeited in 2010
|
(6,000
|
)
|
5.00
|
|||||||||||||
Outstanding at December 31, 2010
|
528,000
|
$
|
1.96
|
4.58
|
$
|
207,060
|
||||||||||
Granted in 2011
|
6,000
|
0.85
|
||||||||||||||
Exercised in 2011
|
(150,000
|
)
|
1.25
|
|||||||||||||
Forfeited in 2011
|
(40,000
|
)
|
4.10
|
|||||||||||||
Outstanding at December 31, 2011
|
344,000
|
$
|
2.01
|
5.67
|
$
|
13,860
|
||||||||||
Vested and exercisable at December 31, 2010
|
404,000
|
$
|
1.88
|
3.67
|
$
|
186,260
|
||||||||||
Vested and exercisable at December 31, 2011
|
284,000
|
$
|
1.88
|
5.42
|
$
|
13,860
|
Number of Shares
|
Weighted Average Exercise Price
|
Weighted Average Remaining Contractual Terms (in years)
|
||||||||||
Nonvested shares at January 1, 2010
|
190,000
|
$
|
2.16
|
8.25
|
||||||||
Granted
|
4,000
|
0.51
|
5.00
|
|||||||||
Vested
|
|
(70,000
|
)
|
1.90
|
6.67
|
|||||||
Nonvested shares at December 31, 2010
|
124,000
|
$
|
2.25
|
7.33
|
||||||||
Granted
|
6,000
|
0.85
|
5.00
|
|||||||||
Vested
|
(70,000
|
)
|
1.83
|
5.75
|
||||||||
Nonvested shares at December 31, 2011
|
60,000
|
$
|
2.60
|
6.75
|
Number
|
Number
|
Exercise
|
||||||||||||
Granted
|
Outstanding
|
Exercisable
|
Price
|
Expiration Date
|
||||||||||
2007
|
160,000
|
160,000
|
$
|
1.25
|
March 31, 2017
|
|||||||||
2007
|
12,000
|
12,000
|
$
|
4.50
|
October 29, 2012
|
|||||||||
2008
|
6,000
|
6,000
|
$
|
4.00
|
December 31, 2012
|
|||||||||
2008
|
(A)
|
150,000
|
90,000
|
$
|
2.60
|
September 23, 2018
|
||||||||
2008
|
6,000
|
6,000
|
$
|
2.60
|
September 23, 2013
|
|||||||||
2010
|
4,000
|
4,000
|
$
|
0.51
|
June 30, 2015
|
|||||||||
2011
|
6,000
|
6,000
|
$
|
0.85
|
May 16, 2016
|
|||||||||
Totals
|
344,000
|
284,000
|
(A)
|
The 60,000 unvested options relating to the 2008 grant are scheduled to vest 30,000 each on September 24, 2012 and 2013.
|
Stock Options Outstanding
|
Exercisable
|
|||||||||||||||||||||
Number of Shares
|
Weighted Average Exercise Price
|
Weighted Average Remaining Contractual Term (in years)
|
Number of Shares
|
Weighted Average Exercise Price
|
||||||||||||||||||
Range of Exercise Prices
|
||||||||||||||||||||||
$ | 0.50 - $1.00 | 10,000 | $ | 0.71 | 4.05 | 10,000 | $ | 0.71 | ||||||||||||||
$ | 1.01 - $2.00 | 160,000 | 1.25 | 5.25 | 160,000 | 1.25 | ||||||||||||||||
$ | 2.00 - $3.00 | 156,000 | 2.60 | 6.56 | 96,000 | 2.60 | ||||||||||||||||
$ | 4.00 - $5.00 | 18,000 | 4.33 | 0.89 | 18,000 | 4.33 | ||||||||||||||||
Totals
|
344,000 | $ | 2.01 | 5.67 | 284,000 | $ | 1.88 |
December 31,
|
||||||||
2011
|
2010
|
|||||||
Federal net operating loss
|
||||||||
carry forwards
|
4,455,000
|
$
|
3,995,000
|
|||||
State and city net operating loss
|
||||||||
carry forwards, net of
|
||||||||
federal tax benefit
|
1,272,000
|
1,168,000
|
||||||
5,727,000
|
5,163,000
|
|||||||
Less: Valuation allowance
|
5,727,000
|
5,163,000
|
||||||
Total
|
|
$
|
-
|
$
|
-
|
2012
|
$
|
56,800
|
||
2013
|
9,466
|
|||
Total
|
$
|
66,266
|
|
New York, New York
|
Omagine, Inc.
|
|||
By:
|
/s/ Frank J. Drohan | ||
Frank J. Drohan
|
|||
President
|
|||
By:
|
/s/ Charles P. Kuczynski | ||
Charles P. Kuczynski
|
|||
Secretary
|
|||
|
New York, New York
|
Omagine, Inc.
|
|||
By:
|
/s/ Frank J. Drohan | ||
Frank J. Drohan
|
|||
President
|
|||
By:
|
/s/ Charles P. Kuczynski | ||
Charles P. Kuczynski
|
|||
Secretary
|
|||
$100,000.00 | September 17, 2010 |
(1)
|
declare a dividend of Common Stock on its Common Stock,
|
(2)
|
subdivide outstanding Common Stock into a larger number of shares of Common Stock by reclassification, stock split or otherwise,
|
(3)
|
combine outstanding Common Stock into a smaller number of shares of Common Stock by reclassification or otherwise,
|
If to the Lender
Louis J. Lombardo
449 Lighthouse Avenue
Staten island, NY 10306
|
If to the Company
:
Omagine, Inc.
The Empire State Building
350 Fifth Avenue
Suite 1103
New York, NY 10118
Attention: President
|
Omagine, Inc.
|
|||
By:
|
/s/ Charles P. Kuczynski | ||
Charles P. Kuczynski
|
|||
Vice-President and Secretary
|
|||
$50,000.00 | November 5, 2010 |
(1)
|
declare a dividend of Common Stock on its Common Stock,
|
(2)
|
subdivide outstanding Common Stock into a larger number of shares of Common Stock by reclassification, stock split or otherwise,
|
(3)
|
combine outstanding Common Stock into a smaller number of shares of Common Stock by reclassification or otherwise,
|
If to the Lender
:
449 Lighthouse Avenue
Staten island, NY 10306
|
If to the Company
:
Omagine, Inc.
The Empire State Building
350 Fifth Avenue
Suite 1103
New York, NY 10118
Attention: President
|