Pursuant
to an Agreement and Plan of Merger (the "Merger Agreement") dated as of March
13, 2004, by and among the Company, Spectre Merger Sub, Inc., a California
corporation and wholly owned subsidiary of the Company ("Merger Sub"), Ian
S.
Grant ("Shareholder") and ACSI, on May 24, 2004 (the "Closing Date"), Merger
Sub
merged with and into Advanced Custom Sensors, Inc. (“ACSI”) (the "Merger"). As a
result of the Merger, ACSI became a subsidiary of the Company. As consideration
for the Merger, the Company issued 2,584,906 shares of common stock and warrants
to purchase up to 47,802,373 shares of common stock to the...
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