DELAWARE
|
87-0419571
|
|
(State
or Other Jurisdiction of
|
(IRS
Employer
|
|
Incorporation
or Organization)
|
Identification
No.)
|
6701 Democracy Boulevard, Suite 202, Bethesda, Maryland
|
20817
|
|
(Address of Principal
Executive Offices)
|
(Zip
Code)
|
Large
accelerated filer ¨
|
|
Accelerated
filer ¨
|
|
Non-accelerated
filer ¨
(Do
not check if a smaller reporting company)
|
|
Smaller
reporting company x
|
CAPTION
NO.
|
PAGE NO.
|
||
|
|||
Item
10
|
Directors,
Executive Officers and Corporate Governance
|
2
|
|
Item
11
|
Executive
Compensation
|
5
|
|
Item
12
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholders Matters
|
15
|
|
Certain
Relationships and Related Transactions, and Director
Independence
|
16
|
||
Item
14
|
Principal
Accountant Fees and Services
|
17
|
Name
|
Age
|
Position
|
||
Jay
O. Wright
|
38
|
Director,
Chief Executive Officer and Chairman of the Board
|
||
Donald
Sledge
|
68
|
Director
|
||
Donald
Paliwoda
|
55
|
Chief
Accounting Officer and Treasurer
|
||
Douglas
Bethell
|
58
|
President
of American Fiber Network, Inc. and CloseCall America,
Inc.
|
||
Tammy
L. Martin
|
44
|
Chief
Administrative Officer, General Counsel and
Secretary
|
Director
|
Audit Committee
|
Compensation
Committee
|
Nominating and
Governance Committee
|
||||
Donald
H. Sledge
|
|
Chair
|
|
Chair
|
|
Chair
|
|
Donald
H. Sledge, Chairman
|
Name and Principal Position
|
|
Year
|
|
Salary ($)
|
|
Bonus ($)
|
|
Stock
Awards
($)
|
|
Option (2)Awards
($)
|
|
Non-Equity
Incentive Plan
Compensation
($)
|
|
Change in
Pension
Value and
Nonqualified
Deferred
Compensation
Earnings
($)
|
|
All Other (3)
Compensation
($)
|
|
Total
($)
|
|
|||||||||
Jay Wright, Chief
|
2008
|
262,500
|
75,000
|
(1)
|
-
|
239,158
|
-
|
-
|
-
|
576,658
|
||||||||||||||||||
Executive
Officer
|
2007
|
247,500
|
29,700
|
286,718
|
563,918
|
|||||||||||||||||||||||
Tammy
Martin, General Counsel and Chief
|
2008
|
190,000
|
75,000
|
(1)
|
-
|
39,620
|
-
|
-
|
8,400
|
313,020
|
||||||||||||||||||
Administrative
Officer
|
2007
|
190,000
|
45,000
|
41,200
|
8,400
|
284,600
|
||||||||||||||||||||||
Donald
Paliwoda, Chief Accounting Officer
|
2008
|
131,650
|
75,000
|
(1)
|
-
|
14,678
|
-
|
-
|
-
|
221,328
|
||||||||||||||||||
Douglas
Bethell, President,
|
2008
|
76,000
|
75,000
|
-
|
124,100
|
-
|
-
|
114,000
|
389,100
|
|||||||||||||||||||
CCA
and AFN
|
2007
|
60,000
|
75,000
|
84,567
|
90,000
|
309,567
|
(1) |
The
bonus amounts represent estimates of the highest amounts that the
Named
Executive Officers might be awarded by the Compensation Committee.
Said
bonuses have not yet been finalized by the Compensation
Committee.
|
(2) |
The
amounts reflected in this column represent the compensation cost
recorded
in our financial statements during fiscal 2008 and 2007 under FAS
123R for
stock warrants awarded in fiscal 2008 and prior fiscal years. With
respect
to stock warrants, the compensation cost amounts recorded under
FAS 123R
have been calculated using the Black-Scholes option pricing model
based on
the following assumptions:
|
2008
|
2007
|
2006
|
||||||||
Dividend
yield
|
-
|
%
|
-
|
%
|
-
|
%
|
||||
Expected
volatility
|
60
|
%
|
60
|
%
|
60
|
%
|
||||
Risk-free
interest rate
|
4.00
|
%
|
4.00
|
%
|
3.00
|
%
|
||||
Expected
term (in years)
|
10.00
|
10.00
|
10.00
|
(3) |
Reflects
payments made to Mr. Bethell under the terms of a consulting
agreement
with DNK Enterprises II, Inc. Reflects automobile allowance payments
made
to Ms. Martin.
|
|
|
|
|
Estimated Future Payouts Under
Non-Equity Incentive Plan Awards
|
|
Estimated Future Payouts Under
Equity Incentive Plan Awards
|
|
All Other
Stock Awards:
Number of
Shares of
Stock or
|
|
All Other
Option Awards:
Number of
Securities
Underlying
|
|
Exercise or
Base Price
of Option
|
|
Closing
Price on
Grant
|
|
|||||||||||||||||||
Name
|
|
Grant
Date
|
|
Threshold
($)
|
|
Target
($)
|
|
Maximum
($)
|
|
Threshold
(#)
|
|
Target
(#)
|
|
Maximum
(#)
|
|
Units
(#)
|
|
Options
(#)
|
|
Awards
($ / Sh)
|
|
Date
($ / Sh)
|
|
|||||||||||
Jay
Wright, Chief Executive Officer
|
2008
|
-
|
-
|
200,000
|
-
|
-
|
-
|
-
|
10,000,000
|
0.0075
|
0.0075
|
|||||||||||||||||||||||
Tammy
Martin, General Counsel and Chief Administrative Officer
|
2008
|
-
|
-
|
95,000
|
-
|
-
|
-
|
-
|
3,000,000
|
0.0075
|
0.0075
|
|||||||||||||||||||||||
Donald
Paliwoda, Chief Accounting Officer
|
2008
|
-
|
-
|
75,000
|
-
|
-
|
-
|
-
|
1,000,000
|
0.0089
|
0.0089
|
|||||||||||||||||||||||
Douglas
Bethell, President, CCA and AFN
|
2008
|
-
|
-
|
75,000
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Option
Awards
|
Stock
Awards
|
||||||||||||||||||||||||||
|
|
Number of
Securities
Underlying
Unexercised
Options
(#)
|
|
Number of
Securities
Underlying
Unexercised
Options
(#)
|
|
Equity
Incentive
Plan Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options
|
|
Option
Exercise
Price
|
|
Option
Expiration
|
|
Number of
Shares or
Units of
Stock That
Have Not
Vested
|
|
Market
Value of
Shares or
Units of
Stock That
Have Not
Vested
|
|
Equity Incentive
Plan Awards:
Number of
Unearned
Shares, Units
or Other
Rights That
Have Not
Vested
|
|
Equity
Incentive
Plan Awards:
Market or
Payout
Value
of Unearned
Shares,
Units
or Other
Rights That
Have Not
Vested
|
|
|||||||||
Name
|
|
Exercisable
|
|
Unexercisable
|
|
(#)
|
|
($)
|
|
Date
|
|
(#)
|
|
($)
|
|
(#)
|
|
($)
|
|
|||||||||
Jay
Wright, Chief
|
15,182,500
|
-
|
-
|
.0180
|
04/15/14
|
-
|
-
|
-
|
-
|
|||||||||||||||||||
Executive
Officer
|
5,000,000
|
-
|
-
|
.2200
|
04/01/15
|
|||||||||||||||||||||||
2,000,000
|
8,000,000
|
-
|
.0075
|
08/27/17
|
||||||||||||||||||||||||
Tammy
Martin,
|
1,500,000
|
-
|
-
|
.1550
|
04/20/15
|
-
|
-
|
-
|
-
|
|||||||||||||||||||
General
Counsel and
|
500,000
|
-
|
-
|
.2330
|
04/01/16
|
|||||||||||||||||||||||
Chief
Administrative Officer
|
-
|
3,000,000
|
-
|
.0075
|
08/27/17
|
|||||||||||||||||||||||
Donald
Paliwoda,
|
236,000
|
-
|
-
|
.2200
|
11/15/15
|
-
|
-
|
-
|
-
|
|||||||||||||||||||
Chief Accounting Officer |
-
|
1,000,000
|
-
|
.0089
|
11/05/17
|
|||||||||||||||||||||||
Douglas
Bethell,
|
1,000,000
|
-
|
-
|
.2330
|
04/01/16
|
-
|
-
|
-
|
-
|
|||||||||||||||||||
President,
CCA and AFN
|
2,000,000
|
2,000,000
|
-
|
.0360
|
03/20/17
|
Name
|
Fees Earned or
Paid in Cash
($)
|
Stock Awards
($)
|
Option Awards
($)
|
Non-Equity
Incentive Plan
Compensation
($)
|
Change
in Pension
Value and
Nonqualified
Deferred
Compensation
Earnings
($)
|
All Other
Compensation
($)
|
Total
($)
|
|||||||||||||||
Michael
G. O’Neil*
|
27,500
|
-
|
1,108
|
-
|
-
|
-
|
28,608
|
|||||||||||||||
Christopher
W. MacFarland*
|
27,500
|
-
|
1,108
|
-
|
-
|
-
|
28,608
|
|||||||||||||||
Donald
H. Sledge
|
33,000
|
-
|
1,108
|
-
|
-
|
-
|
34,108
|
Number of securities to be
issued upon exercise of
outstanding options,
warrants and rights
|
Weighted-average exercise
price of outstanding
options, warrants and rights
|
Number of securities
remaining available for
future issuance under
equity compensation plans
(excluding securities
reflected in column (a))
|
||||||||
(a)
|
(b)
|
(c)
|
||||||||
Equity
compensation plans approved by security holders (1)
|
1,656,000
|
$0.2200
|
28,344,000
|
|||||||
Equity
compensation grants not approved by security holders
(2)
|
82,838,968
|
$0.1017
|
N/A
|
|||||||
Total
|
84,494,968
|
$0.1039
|
28,344,000
|
Name
and Address
|
Title
of
Class
|
Shares
Beneficially
Owned
(1)
|
Percent
of
Class
(1)
|
|||||||
Jay
O. Wright (2)
|
Common
|
18,426,500
|
2.17
|
%
|
||||||
Doug
Bethell (3)
|
Common
|
5,500,000
|
*
|
|||||||
Tammy
L. Martin (4)
|
Common
|
5,000,000
|
*
|
|||||||
Donald
H. Sledge (4)
|
Common
|
2,000,000
|
*
|
|||||||
Donald
Paliwoda (4)
|
Common
|
1,236,000
|
*
|
|||||||
Officers
and Directors as a Group (5 Persons) (5)
|
Common
|
32,162,500
|
3.98
|
%
|
* |
Less
than 1%.
|
(1) |
Applicable
percentage of ownership is based on 775,821,796 shares of common
stock
outstanding as of July 3, 2008, together with applicable options
and
warrants for each shareholder. Beneficial ownership is determined
in
accordance with the rules of the Securities and Exchange Commission
and
generally includes voting or investment power with respect to securities.
Shares of Common Stock subject to options and warrants that are
currently exercisable or exercisable within 60 days of July 3, 2008
are
deemed to be beneficially owned by the person holding such options
for the
purpose of computing the percentage of ownership of such person,
but are
not treated as outstanding for the purpose of computing the percentage
ownership of any other person.
|
(2) |
Includes
1,244,000 shares of our Common Stock and 17,182,500 shares of Common
Stock
issuable upon the exercise of warrants to purchase our Common
Stock.
|
(3) |
Includes
2,500,000 shares of our Common Stock and 3,000,000 shares of Common
Stock
issuable upon the exercise of warrants to purchase our Common
Stock.
|
(4) |
Includes
shares of Common Stock issuable upon the exercise of options or warrants
to purchase our Common Stock.
|
(5) |
Includes
3,744,000 shares of our Common Stock and 28,418,500 shares of Common
Stock
issuable upon the exercise of options and warrants to purchase our
Common
Stock.
|
2008
|
2007
|
||||||
Audit
Fees
|
$
|
136,000
|
$
|
182,000
|
|||
Audit-Related
Fees
|
—
|
23,225
|
|||||
Tax
Fees
|
55,000
|
50,000
|
|||||
All
Other Fees
|
—
|
—
|
Mobilepro
Corp.
|
|
By:
|
/s/
Jay O. Wright
|
Name:
|
Jay
O. Wright
|
Title:
|
Chief
Executive Officer
|
Date:
|
July
29, 2008
|
SIGNATURE
|
TITLE
|
DATE
|
||
/s/
Jay O. Wright
|
Chief
Executive Officer,
|
July
29, 2008
|
||
Jay
O. Wright
|
Principal
Executive Officer and Director
|
|||
/s/
Donald L.Paliwoda
|
Chief
Accounting Officer, Principal
|
July
29, 2008
|
||
Donald
L. Paliwoda
|
Financial
and Principal Accounting Officer
|
|||
/s/
Donald H. Sledge
|
Director
|
July
29, 2008
|
||
Donald
H. Sledge
|