SEC Form 4 · accession 0001144204-18-065639

FALCONSTOR SOFTWARE INC · FALC

Statement of changes in beneficial ownership, as filed. Original on EDGAR ↗

Reporting owner

HCP-FVA, LLC

Director · 10% Owner · Other

Period of report

Dec 18, 2018

Accepted (ET)

Dec 20, 2018 · 12:52 pm EST

Rule 10b5-1 plan

unknown — predates the checkbox

Issuer CIK

0000922521

Table I — non-derivative securities

Security	Date	Code	Shares	Price	A/D	Owned after	D/I	Nature of ownership
Common Stock^F1	Dec 18, 2018	M	303,379,065	$0.001	A	357,601,020	D

Table II — derivative securities

Security	Conv. / exercise price	Date	Code	Shares	A/D	Exercisable	Expires	Underlying	Underlying shares	Owned after	D/I
Warrants^F1,F3,F2	$0.001	Dec 18, 2018	M	303,379,065	D	—	—	Common Stock	303,379,065	1,543,630	D

Explanation of responses

F1HCP-FVA, LLC ("HCP-FVA"), a Delaware limited liability company, exercised that certain Financing Unit Warrant, dated February 23, 2018 (the "Financing Unit Warrant"), to purchase 303,379,065 shares of common stock (the "Common Stock") of Falconstor Software, Inc. (the "Issuer").
F2The Financing Unit Warrant is presently exercisable and expires on February 23,2028, unless the expiration date of the Financing Unit Warrant is accelerated by the Issuer in accordance with the terms of the Financing Unit Warrant. The Issuer accelerated the expiration date of the Financing Unit Warrant to December 31, 2018.
F3Represents the remaining backstop warrants held by HCP-FVA to purchase 1,543,630 shares of Common Stock as set forth in the previous filings of HCP-FVA.

Remarks

HCP-FVA has the right to designate a director of the Issuer pursuant to the terms of the Amended and Restated Certificate of Designation of Series A Convertible Preferred Stock of the Issuer and Martin Hale, Jr. is the board designee of HCP-FVA. Accordingly, HCP-FVA is a director by deputization.