Nephros Inc (NEPH)

[royalcharg]

If you had 1000 original NEPH shares and participated in the rights offering you could have purchased a little over four warrants per original share. Let's just round off to four warrants to make things simple. So you bought 4000 warrants @ 2 cents a warrant. That cost you 80 dollars. Right after offering was completed NEPH reverse split all shars and warrants 1-20. So your original 1000 shares became 50 shares. Your 4000 warrants became 200 warrants. Those 200 warrants after NEPH registers them will be worth one share of NEPH stock and there is an option to purchase .92 shares of stock for each warrant at a cost of $.40 cents. So those 200 warrants will give you another 184 + OR - SHARES OF Stock at a cost of $80 dollars giving you another 384 approx shares.

So your original 1000 shares after the split and rights offering participation gives you a potential 434 shares of NEPH. Let's say those original shares of NEPH cost you $1500. Your cost basis would be said $1500 plus $80 plus another $80 for a total of $1660.

You currently have 50 tradeable shares worth $100 and you have another 384 potential shares after warrants are registered currently worth a mythical $768 for a total of $868. Your cost basis for your 434 shares is $1660 divide by 434 shares = $3.74.

So what your original Neph share cost you plus your rights offering costs and warrant conversion cost equals your cost basis. In my case my NEPH share cost basis is about a buck and change so I am in the black currently.