Options =13.3 million @ 10-12 cents( 5.4 million held by directors and officers)

warrants =20.2 million @ 5 cents

warrants = 7.2 million @ 15 cents these expire Sept 8/2013. With the rollback they will be at $1.50 so I doubt they will be exercised. I'm leaving them out.

Shares outstanding now=110.5 million

So fully diluted we are at about 144 million with the rollback = 14.4 million.

Financing adds 13.4 million(includes 7 % to Beacon).

So total about 29 million shares+/-.

For all intensive purposes lets call it a 100% dilution. Ouch!

The only loss we took today relative to the people that will be doing the financing is any amount someone paid over 4 cents for this stock. (That includes the latest pp at a nickel).Essentially that is how much the financing is for. The people that are buying in at this level are also getting diluted by the same amount. The fact that we are holding at 4 cents makes me think that Spy was worth at least 8 cents prior to this financing. If not we should have traded down to 2 cents.

As for the roll back would you prefer to be in a stock with 29 million shares or 290 million shares?

If we have the goods and management can deliver we may be able to make the 1new:10 old rollback by sp appreciation,maybe. Will be easier to move the sp now :).

Just some rambling thoughts!