NeoMedia Technologies, Inc (NEOM)

[jonesieatl]

2Q10Q "we only have sufficient funds ...

... to sustain our current operations through approximately September 15, 2009."


"Subsequent Events

Secured Convertible Debenture - On July 15, 2009 and August 14, 2009, we entered into additional Secured Convertible Debentures with YA Global for principal amounts of $535,000 and $475,000, respectively. The debentures accrue interest at 14% per annum and are payable on the maturity date (July 29, 2010) in cash, or provided that certain equity conditions are satisfied, in shares of common stock. At any time from the closing date until the maturity date, YA Global has the right to convert the convertible debentures into our common stock at the then effective conversion price, which varies relative to the our trading stock price, at the lesser of, $0.02 per share, or 95% of the lowest weighted average price of the Company's common stock during the ten days preceding the conversion date, and adjusts to 50% of the lowest weighted average price of the Company's common stock during the ten days preceding the conversion date in the event of a default. The conversion is limited such that the holder cannot exceed 4.99% ownership, unless the holders waive their right to such limitation."