DNAprint Genomics (DNAG)

[johnnyfiber]

retro, the Dutchess agreement is fully backed by the assets of the company. What is to stop Dutchess from shorting the stock, driving the price down, accumulating shares, holding the company in default on the notes, demanding the 2 million or so in damages (which the company doesn't have, 40% of the sale of the Bio stock is to pay "OLD NOTES"...effectively, bankrupting the company and taking control? All of the preffered has been converted to common. Has Dutchess done this before? TIA

The Dutchess Investment agreement expires in May 2007, and we are working with Dutchess on putting another agreement with them in place.

We are in default of each of the Dutchess Notes due to not making the minimum principal payments. Dutchess has the right to charge us liquidated damages of up to 30% of the face amount of these notes. Dutchess has not exercised this right at December 31, 2006 nor at the time this report was issued. At December 31, 2006, we recorded a default penalty accrual in the amount of $2,143,500 for these potential liquidated damages. This is an estimate based upon the maximum amount that Dutchess could charge us and this estimate may change with time.