e424b7
Filed Pursuant to Rule 424(b)(7)
File No. 333-140234
Prospectus Supplement No. 1
To Prospectus dated December 7, 2007
 
4,118,245 Shares
Wireless Ronin Technologies, Inc.
Common Stock
 
     This Prospectus Supplement, dated June 30, 2008 (“Prospectus Supplement No. 1”), supplements that certain Prospectus filed with the Securities and Exchange Commission (the “SEC”) and dated December 7, 2007, relating to the resale of 2,315,722 shares of our common stock and 1,802,523 shares issued or issuable upon the exercise of warrants (the “Prospectus”). This prospectus supplement is incorporated by reference into the Prospectus and should be read in conjunction with, and may not be delivered or utilized without, the Prospectus and any prior amendments and supplements. This prospectus supplement is qualified by reference to the Prospectus except to the extent that the information herein contained supersedes the information contained in the Prospectus. Capitalized terms used in this prospectus supplement and not otherwise defined herein have the meanings specified in the Prospectus.
     Investing in our common stock involves risks, including the risk that we have had substantial losses since inception. See “Risk factors” on page 6 of the Prospectus.
 
     Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
 
The date of this Prospectus Supplement No. 1 is June 30, 2008.

 


 

     The information appearing under the heading “Selling Shareholders” beginning at page 17 of the Prospectus is amended and restated in its entirety by the information below.
Selling Shareholders
     The following table presents information regarding the selling shareholders. Unless otherwise noted, the shares listed below represent the shares that each selling shareholder beneficially owned on November 1, 2007. The shares being offered hereunder represent an aggregate of 2,315,722 shares of common stock, and 1,802,523 shares issued or issuable upon the exercise of warrants.
     We are registering the above-referenced shares to permit each of the selling shareholders and their pledges, donees, transferees or other successors-in-interest that receive their shares from the selling shareholders as a gift, partnership distribution or other non-sale related transfer after the date of this prospectus to resell the shares.
     The following table sets forth the name of each selling shareholder, the number of shares owned by each of the selling shareholders as of November 1, 2007, the number of shares that may be offered under this prospectus and the number of shares of our common stock owned by the selling shareholders after this offering is completed, assuming all of the shares being offered are sold. Except as otherwise disclosed below, none of the selling shareholders has, or within the past three years has had, any position, office or other material relationship with us. The number of shares in the column “Shares Offered” represents all of the shares that a selling shareholder may offer under this prospectus.
     Beneficial ownership is determined in accordance with Rule 13d-3(d) promulgated by the SEC under the Exchange Act. The percentages of shares beneficially owned are based on 14,537,705 shares of our common stock outstanding as of November 1, 2007, plus the shares of common stock beneficially owned by the respective selling shareholder, as set forth in the following table and more fully described in the applicable footnotes.
                                         
                            Shares    
    Shares   Percent           Beneficially   Percent
    Beneficially   Beneficially           Owned if All   Beneficially
    Owned   Owned           Shares are   Owned
    Before   Before   Shares   Sold in the   After
Name and Address of Selling Shareholder (1)   Offering (2)   Offering (2)   Offered   Offering   Offering
Barry W. Butzow
9714 Brassie Circle
Eden Prairie, MN 55347
    594,499 (3)     4.0 %     528,501 (4)     65,998 (5)     *  
Spirit Lake Tribe
P.O. Box 359
Fort Totten, ND 58335
    346,446       2.4 %     302,004       44,442       *  
Jack Norqual
9493 Olympia Drive
Eden Prairie, MN 55347
    235,727 (6)     1.6 %     182,508 (7)     53,219       *  
Stephen Jacobs
9420 Olympia Drive
Eden Prairie, MN 55437
    178,765 (8)     1.2 %     158,210 (9)     20,555 (10)     *  
Jeffrey C. Mack
6489 Promontory Drive
Eden Prairie, MN 55346
    160,686 (11)     1.1 %     75,353 (12)     85,333 (13)     *  
R. A. Stinski
3647 McKinley St. N.E.
Minneapolis, MN 55418
    153,608 (14)     1.1 %     133,608 (15)     20,000       *  

S-1


 

                                         
                            Shares    
    Shares   Percent           Beneficially   Percent
    Beneficially   Beneficially           Owned if All   Beneficially
    Owned   Owned           Shares are   Owned
    Before   Before   Shares   Sold in the   After
Name and Address of Selling Shareholder (1)   Offering (2)   Offering (2)   Offered   Offering   Offering
Galtere International Master
Fund, L.P.
7 East 20th Street, 11R
New York, NY 10003
    142,492 (16)     1.0 %     123,048 (17)     19,444       *  
Christopher F. Ebbert
4821 13th Avenue South
Minneapolis, MN 55417
    140,316 (18)     1.0 %     102,539 (19)     37,777       *  
C. Donald Dorsey
3717 S. Gambel Quail Way
Superstition Mountain, AZ 85218
    133,051 (20)     *       121,941 (21)     11,110       *  
Ben Reuben and Sophie Reuben, JTWROS
899 Lincoln Ave.
St. Paul, MN 55105
    130,000 (22)     *       130,000 (22)     0       0  
William F. Schnell
2708 Branch Street
Duluth, MN 55812
    121,147 (23)     *       2,083 (12)     119,064 (24)     *  
Hal B. Heyer
214 North 34th Avenue East
Duluth, MN 55804
    91,147 (25)     *       2,083 (12)     89,064 (26)     *  
Peter Goldschmidt
3221 Ewing Avenue
Duluth, MN 55803
    91,147 (27)     *       2,083 (12)     89,064 (26)     *  
Robin Hendricks
5290 Lakewood Road
Duluth, MN 55804
    91,147 (28)     *       2,083 (12)     89,064 (26)     *  
Steven P. Meyer
9088 Neil Lake Road
Eden Prairie, MN 55347
    82,712 (29)     *       70,214 (30)     12,498       *  
Industricorp & Co., Inc. FBO
Twin City Carpenters Pension Plan
    81,484 (31)     *       81,484 (31)     0       0  
SHAG, LLC
214 34th Avenue East
Duluth, MN 55804
    80,731 (32)     *       47,398 (33)     33,333       *  
Jill Jensen-Behr
845 Bradford Avenue North
Champlin, MN 55316
    79,215 (34)     *       29,360 (35)     49,855       *  
W. Bruce Erickson TTEE, W.
Bruce Erickson Revocable
Trust U/A 10/14/2003
4041 16th Ave. S.
Minneapolis, MN 55407
    64,874 (36)     *       64,874 (36)     0       0  
Thomas L. Thompson and Katherine A. Thompson
323 Woodland Hills W.
Brainerd, MN 56401
    63,682 (37)     *       52,572 (38)     11,110       *  

S-2


 

                                         
                            Shares    
    Shares   Percent           Beneficially   Percent
    Beneficially   Beneficially           Owned if All   Beneficially
    Owned   Owned           Shares are   Owned
    Before   Before   Shares   Sold in the   After
Name and Address of Selling Shareholder (1)   Offering (2)   Offering (2)   Offered   Offering   Offering
John A. Witham
10456 Purdey Road
Eden Prairie, MN 55347
    55,555 (39)     *       22,222 (12)     33,333 (40)     *  
Industricorp & Co., Inc.
FBO 1561000091
312 Central Ave. SE,
Suite 508
Minneapolis, MN 55414
    52,572 (38)     *       52,572 (38)     0       0  
Paul L. Heibel
20558 Vails Lake Rd.
Eden Valley, MN 55329
    46,125 (41)     *       25,625 (42)     20,500       *  
UBS Financial Services,
Custodian f/b/o Randall W. Barnes c/o UBS Financial Services
800 Nicollet Mall, Suite 800
Minneapolis, MN 55402
    45,137 (43)     *       39,582 (44)     5,555       *  
Michael Hopkins
19549 Jersey Avenue
Lakeville, MN 55044
    45,052 (45)     *       26,720 (12)     18,332       *  
Richard H. Enrico
7585 Equitable Drive
Eden Prairie, MN 55344
    44,914 (46)     *       39,359 (47)     5,555       *  
Michael J. Frank
4964 Safari Circle
Eagan, MN 55122
    44,719 (48)     *       31,942 (12)     12,777 (49)     *  
Lorax Investments, LLC
4555 Erin Drive, Suite #190
Eagan, MN 55122
    37,808 (50)     *       34,559 (51)     3,249       *  
Lorax Business Services, Inc.
4555 Erin Drive, Suite #190
Eagan, MN 55122
    5,000 (12)     *       5,000 (12)     0       *  
Courtney Pulkrabek
210 No. Broadway
P. O. Box 622
Crookston, MN 56716
    40,000       *       40,000       0       0  
Stephen D. Higgins, Pers. Rep.,
Estate of A Russell Melgaard
7900 E. Oakmont Place
Sioux Falls, SD 57110
    37,000       *       37,000       0       0  
Beverly J. Stathopoulus Trust
13212 Northern Dr.
Burnsville, MN 55337
    33,625 (52)     *       25,625 (42)     8,000       *  
Marshall Special Assets Group
225 South 6th Street,
Suite 2900
Minneapolis, MN 55402
    29,442 (53)     *       18,331 (12)     11,111       *  

S-3


 

                                         
                            Shares    
    Shares   Percent           Beneficially   Percent
    Beneficially   Beneficially           Owned if All   Beneficially
    Owned   Owned           Shares are   Owned
    Before   Before   Shares   Sold in the   After
Name and Address of Selling Shareholder (1)   Offering (2)   Offering (2)   Offered   Offering   Offering
James and Barbara Koberstein
2132 Ponderosa Circle
Duluth, MN 55811
    27,776 (54)     *       5,554 (12)     22,222       *  
Alice Ann Corporation
    27,161 (55)     *       27,161 (55)     0       0  
Kenneth Grant
1201 N. 21st St.
Superior, WI 54880
    27,161 (55)     *       27,161 (55)     0       0  
Jerald D. Sprau
7722 Somerset Rd.
Woodbury, MN 55125
    27,161       *       27,161       0       0  
Jack Klingert
4600 Dallas Ln. N.
Plymouth, MN 55446
    27,161 (55)     *       27,161 (55)     0       0  
Richard W. Perkins Trustee U/A
dtd 6/14/78 FBO Richard W. Perkins
    27,161 (55)     *       27,161 (55)     0       0  
Daniel S. and Patrice M. Perkins
JTWROS
55 Landmark
Long Lake, MN 55356
    27,161 (55)     *       27,161 (55)     0       0  
Piper Jaffray & Co as Cust FBO
David H. Potter IRA
    27,161 (55)     *       27,161 (55)     0       0  
Daniel B. Ahlberg TTEE and
Linda O. Ahlberg TTEE
Ahlberg Joint Revocable Trust
U/A dated 8/24/06
    27,161 (55)     *       27,161 (55)     0       0  
Dennis D. Gonyea
    27,161 (55)     *       27,161 (55)     0       0  
UBS Financial Services as
Custodian FBO Bradley A. Erickson IRA c/o
UBS Financial Services
600 Nicollet Mall, Suite 800
Minneapolis, MN 55402
    27,161 (55)     *       27,161 (55)     0       0  
David C. and Carole O. Brown
TTEE’s FBO David C. and Carole O. Brown Rev TR U/A
dtd 10/23/97
    27,161 (55)     *       27,161 (55)     0       0  
Piper Jaffray as Custodian FBO
Robert H. Clayburgh IRA
    27,161 (55)     *       27,161 (55)     0       0  
Piper Jaffray as Custodian FBO
Richard C. Perkins IRA
2125 Hollybush Rd.
Hamel, MN 55340
    27,161 (55)     *       27,161 (55)     0       0  
John T. Potter
    27,161 (55)     *       27,161 (55)     0       0  
E Terry Skone TTEE 2005
Amendment & Restatement E
Terry Skone Rev Trust
    27,161 (55)     *       27,161 (55)     0       0  

S-4


 

                                         
                            Shares    
    Shares   Percent           Beneficially   Percent
    Beneficially   Beneficially           Owned if All   Beneficially
    Owned   Owned           Shares are   Owned
    Before   Before   Shares   Sold in the   After
Name and Address of Selling Shareholder (1)   Offering (2)   Offering (2)   Offered   Offering   Offering
Donald O. & Janet M. Voight
TTEE’s FBO Janet M. Voight
Trust U/A dtd 8/29/90
    27,161 (55)     *       27,161 (55)     0       0  
Piper Jaffray as Custodian FBO
James B. Wallace SPN/PRO
    27,161 (55)     *       27,161 (55)     0       0  
Piper Jaffray as Custodian FBO
Michael R. Wilcox IRA
    27,161 (55)     *       27,161 (55)     0       0  
David M. Westrum, TTEE FBO
David M. Westrum Revocable
Living Trust U/A dtd 6/1/97
    27,161 (55)     *       27,161 (55)     0       0  
Shawn P. Weinand
    27,161 (55)     *       27,161 (55)     0       0  
O. Walter Johnson
5534 Fenway Ct.
White Bear Lake, MN 55110
    27,161 (55)     *       27,161 (55)     0       0  
Terry and Susan Jacobs
Revocable Trust
Edina, MN 55439
    27,161       *       27,161       0       0  
Richard A. Tickle Revocable Trust
1400 U.S. Trust Bldg.
730 2nd Ave. So.
Minneapolis, MN 55402
    26,437 (56)     *       26,437 (56)     0       0  
Richard B. Heise Trust
77 Osprey Point Drive
Osprey, FL 34229
    26,437       *       26,437       0       0  
Richard Kruger & Michaeleen Kruger
3605 Shady Oak Road
Minnetonka, MN 55305
    26,437 (56)     *       26,437 (56)     0       0  
Ronald Musich
2715 Pioneer Trail
Medina, MN 55340
    26,437 (56)     *       26,437 (56)     0       0  
Mike & Kathy Pearson JT TEN
2805 Lisbon Ave. N.
Lake Elmo, MN 55042
    26,286 (57)     *       26,286 (57)     0       0  
Goben Enterprises LP
450 18th Ave. S.
Naples, FL 34102
    26,286       *       26,286       0       0  
Robert Melhouse
79351 U.S. Hwy 71
Olivia, MN 56277
    25,625 (42)     *       25,625 (42)     0       0  
Larry Hopfenspirger
2025 Nicollet Ave S
Minneapolis, MN 55404
    24,999 (58)     *       5,555 (12)     19,444       *  
Sheldon Fleck
4611 Browndale Avenue
Edina, MN 55424
    24,999 (58)     *       5,555 (12)     19,444       *  

S-5


 

                                         
                            Shares    
    Shares   Percent           Beneficially   Percent
    Beneficially   Beneficially           Owned if All   Beneficially
    Owned   Owned           Shares are   Owned
    Before   Before   Shares   Sold in the   After
Name and Address of Selling Shareholder (1)   Offering (2)   Offering (2)   Offered   Offering   Offering
Scott Koller
2290 Goldpoint
Victoria, MN 55386
    24,307 (59)     *       22,682 (12)     1,625       *  
Paul Medlin
18958 Firethom Pointe
Eden Prairie, MN 55347
    24,257 (12)     *       24,257 (12)     0       0  
Juanita Young
7007 45th Avenue North
Crystal, MN 55428
    22,567 (60)     *       19,790 (61)     2,777       *  
Laura Spillane
1991 Pine Ridge Drive
West St. Paul, MN 55118
    22,567 (60)     *       19,790 (61)     2,777       *  
Brian S. Anderson
10146 Bluff Road
Eden Prairie, MN 55347
    20,722 (62)     *       2,222 (12)     18,500 (63)     *  
Robert Schmidt
4103 Hidden Hill Rd.
Norman, OK 73072
    20,000 (64)     *       20,000 (64)     0       0  
Craig & Terry Howard
540 Wilwood Lane
Stillwater, MN 55082
    20,000       *       20,000       0       0  
Gary M. Uhde Revocable Trust
3157 Berwick Knoll
Brooklyn Park, MN 55443
    20,000 (64)     *       20,000 (64)     0       0  
Dan Niessen
125 North Meridian Street
Belle Plain, MN 56011
    18,902 (65)     *       8,032 (66)     10,870       *  
R. Scott and Susan S. Vickerman JT TEN
2685 Rainey Road
Wayzata, MN 55391
    18,286 (67)     *       18,286 (67)     0       0  
Gary A. Bergren
    17,580 (68)     *       13,580 (69)     4,000       *  
2nd Wind Exercise Equipment
7585 Equitable Drive
Eden Prairie, MN 55344
    17,242 (70)     *       11,687 (71)     5,555       *  
Garry L. Matz
P. O. Box Q
Elkhart Lake, WI 53020
    17,000       *       17,000       0       0  
Thor A. Christensen
1600 Mount Curve Avenue
Minneapolis, MN 55403
    15,943       *       15,943       0       0  
Marketing Arts, Inc.
7805 Telegraph Road, Suite 110
Bloomington, MN 55438
    15,771 (72)     *       15,771 (72)     0       0  
Donald and Kathleen Walczak JTWROS
784 Redwood Lane
New Brighton, MN 55112
    15,000       *       15,000       0       0  

S-6


 

                                         
                            Shares    
    Shares   Percent           Beneficially   Percent
    Beneficially   Beneficially           Owned if All   Beneficially
    Owned   Owned           Shares are   Owned
    Before   Before   Shares   Sold in the   After
Name and Address of Selling Shareholder (1)   Offering (2)   Offering (2)   Offered   Offering   Offering
Robert G. Allison
    15,000 (12)     *       15,000 (12)     0       0  
Chandler
P. O. Box 2465
Ft. Lauderdale, FL 33303
    15,000 (73)     *       15,000 (73)     0       0  
George Nelms
8300 East Dixileta Drive, Unit 3
Scottsdale, AZ 85262
    13,888 (74)     *       2,777 (12)     11,111       *  
William H. Baxter Revocable Trust
    13,580 (69)     *       13,580 (69)     0       0  
Piper Jaffray as Custodian FBO
Craig L. Campbell IRA
    13,580 (69)     *       13,580 (69)     0       0  
Anne S. Chudnofsky
    13,580 (69)     *       13,580 (69)     0       0  
Gary E. Clipper and Leslie J. Clipper JTWROS
    13,580 (69)     *       13,580 (69)     0       0  
Richard A. Hoel
    13,580 (69)     *       13,580 (69)     0       0  
Elizabeth J. Kuehne
    13,580 (69)     *       13,580 (69)     0       0  
Piper Jaffray as Custodian FBO
Fred T. Gerbig IRA
2490 Brenner Street
St. Paul, MN 55113
    13,580 (69)     *       13,580 (69)     0       0  
Piper Jaffray as Custodian FBO Raymond R. Johnson IRA
    13,580 (69)     *       13,580 (69)     0       0  
Alan R. Reckner
    13,580 (69)     *       13,580 (69)     0       0  
Piper Jaffray as Custodian FBO
Charles W. Pappas IRA
    13,580 (69)     *       13,580 (69)     0       0  
Paul C. Seel & Nancy S. Seel JTWROS
    13,580 (69)     *       13,580 (69)     0       0  
Piper Jaffray as Custodian FBO
Robert G. Allison IRA
    13,580 (69)     *       13,580 (69)     0       0  
Piper Jaffray as Custodian FBO
William H. Baxter IRA
    13,580 (69)     *       13,580 (69)     0       0  
Mark Behling
2781 Leyland Trail
Woodbury, MN 55125
    13,512 (75)     *       11,846 (76)     1,666       *  
Paul Crawford
I.Q. Universe
125 SE Main Street, Suite 270
Minneapolis, MN 55414
    12,310 (77)     *       1,179 (12)     11,131       *  
David H. Eber
N1440 Tower Court
LaCrosse, WI 54601
    12,000 (78)     *       12,000 (78)     0       0  
Charlie Maxwell
c/o Meristem
601 Carlson Parkway, Suite 800
Minnetonka, MN 55305
    11,943 (79)     *       11,943 (79)     0       0  

S-7


 

                                         
                            Shares    
    Shares   Percent           Beneficially   Percent
    Beneficially   Beneficially           Owned if All   Beneficially
    Owned   Owned           Shares are   Owned
    Before   Before   Shares   Sold in the   After
Name and Address of Selling Shareholder (1)   Offering (2)   Offering (2)   Offered   Offering   Offering
Jason LeZalla
620 Lincoln Drive NE
St. Michael, MN 55376
    10,074 (12)     *       10,074 (12)     0       0  
Kernon Bast and Donalda Speer JTWROS
948 Labarge Road
Hudson, WI 54016
    10,000       *       10,000       0       0  
Bruce Rubinger
11965 Orchard Ave. West
Minnetonka, MN 55305
    10,000 (12)     *       10,000 (12)     0       0  
Robert J. Dondelinger
P O Box 527
Thief River Falls, MN 56701
    10,000 (12)     *       10,000 (12)     0       0  
Thomas P. Magne
7125 Shannon Drive
Edina, MN 55439
    10,000       *       10,000       0       0  
Dean and Cathy Cocker, JTWROS
P.O. Box 1085
Pine Island, MN 55963
    10,000       *       10,000       0       0  
Scott A. Lucus
934 Skye Lane
Palm Harbor, FL 34683
    10,000       *       10,000       0       0  
Glen Gunderson
6125 Stone Court
Maple Plain, MN 55359
    10,000       *       10,000       0       0  
Allan Steffes
1149 Orchard Circle
St. Paul, MN 55118
    10,000 (12)     *       10,000 (12)     0       0  
Destin Capital Partners
c/o Martin B. Rowe
946 4th St. Eldorado, IL 62930
    10,000 (12)     *       10,000 (12)     0       0  
Gerard Abbott
4557 Oak Chase Circle
Eagan, MN 55123
    9,894 (80)     *       9,894 (80)     0       0  
FoxPoint Ventures
3200 Foxpoint Road
Burnsville, MN 55337
    8,570 (81)     *       1,904 (12)     6,666       *  
Thor G. Christensen
4012 LeMont Boulevard
Mequon, WI 53092
    7,719 (82)     *       4,165 (12)     3,554 (83)     *  
Ilo E. Leppik
7500 Western Ave.
Golden Valley, MN 55427
    7,600 (12)     *       7,600 (12)     0       0  
Joseph A. Medlin
928 Lake Avenue South
Duluth, MN 55802
    6,943 (84)     *       1,388 (12)     5,555       *  

S-8


 

                                         
                            Shares    
    Shares   Percent           Beneficially   Percent
    Beneficially   Beneficially           Owned if All   Beneficially
    Owned   Owned           Shares are   Owned
    Before   Before   Shares   Sold in the   After
Name and Address of Selling Shareholder (1)   Offering (2)   Offering (2)   Offered   Offering   Offering
Mark Sweet
3756 Big Fox Road
Gem Lake, MN 55110
    6,943 (84)     *       1,388 (12)     5,555       *  
Thomas C. and Lynn M. Nelson
2142 Ponderosa Circle
Duluth, MN 55811
    6,943 (84)     *       1,388 (12)     5,555       *  
Timothy Medlin
                                       
1039 Brainerd Avenue
Duluth, MN 55811
    6,943 (84)     *       1,388 (12)     5,555       *  
Jeff Hanson
4316 West 99th Street
Bloomington, MN 55437
    6,666 (12)     *       6,666 (12)     0       0  
Robert Martin
6800 Ruby Lane
Chanhassen, MN 55317
    6,431 (85)     *       3,655 (12)     2,776       *  
Michael Boyce
1016 Stonebrooke Dr.
Shakopee, MN 55379
    5,000       *       5,000       0       0  
UBS Financial Services as
Custodian FBO Daniel L. Lastavich IRA
c/o UBS Financial Services
600 Nicollet Mall, Suite 800
Minneapolis, MN 55402
    5,000 (12)     *       5,000 (12)     0       0  
Doug Selander
5358 Beachside Drive
Minnetonka, MN 55343
    4,999 (86)     *       4,444 (12)     555       *  
Suzanne Dressler
5247 Beachside Drive
Hopkins, MN 55343
    4,165 (12)     *       4,165 (12)     0       0  
John S. Anderson
5157 Luverne Avenue
Minneapolis, MN 55419
    4,114 (87)     *       2,338 (12)     1,776       *  
George Jensen
8416 Palm Street
Coon Rapids, MN 55433
    3,497 (88)     *       1,387 (12)     2,110       *  
Paul M. Pilla
P.O. Box 10840
Chicago, IL 60610
    3,471 (89)     *       694 (12)     2,777       *  
Lynn M. Fischer
3647 McKinley Street NE
Minneapolis, MN 55418
    2,777 (90)     *       1,666 (12)     1,111       *  
Corporate Capital Management LLC
1025 Crosstown Circle, Ste 210
Eden Prairie, MN 55344
    2,777 (12)     *       2,777 (12)     0       0  

S-9


 

                                         
                            Shares    
    Shares   Percent           Beneficially   Percent
    Beneficially   Beneficially           Owned if All   Beneficially
    Owned   Owned           Shares are   Owned
    Before   Before   Shares   Sold in the   After
Name and Address of Selling Shareholder (1)   Offering (2)   Offering (2)   Offered   Offering   Offering
Scott H. Anderson
225 South 6th Street, Suite 2900
Minneapolis, MN 55042
    2,777 (12)     *       2,777 (12)     0       0  
Mark Christensen
1073 Springdale Road
Atlanta, GA 30306
    2,571 (91)     *       1,461 (12)     1,110       *  
Theis Family Trust
12466 Marystown Hills Lane
Shakopee, MN 56401
    2,553 (92)     *       1,110 (12)     1,443       *  
Scot Sinnen
778 Quail Run
Waconia, MN 55387
    2,499 (12)     *       2,499 (12)     0       0  
Gladys Campanile
4228 Ottawa Avenue South
St. Louis Park, MN 55416
    2,222 (12)     *       2,222 (12)     0       0  
Al Kilgore
101 Winnipeg Avenue
St. Paul, MN 55117
    1,851 (12)     *       1,851 (12)     0       0  
Israel Long
7741 Chanhassen Road 351
Chanhassen, MN 55317
    1,851 (12)     *       1,851 (12)     0       0  
Jack Haedicke
18418 Nicklaus Way
Eden Prairie, MN 55347
    1,666 (12)     *       1,666 (12)     0       0  
Tobias Kleinbaum
16855 Saddlewood Trail
Minnetonka, MN 55345
    1,555 (12)     *       1,555 (12)     0       0  
Dylan Birtolo
4316 236th St. SW 8205
Mount Lake, WA 98043
    1,481 (12)     *       1,481 (12)     0       0  
Laura Arntson
2850 Princeton Avenue South
St. Louis Park, MN 55416
    1,481 (12)     *       1,481 (12)     0       0  
Steve Havig
2124 Fremont Avenue South
Minneapolis, MN 55405
    1,320 (93)     *       766 (12)     554       *  
Naomi Synstelien
Circle A Drive South
Wayzata, MN 55391
    1,111 (12)     *       1,111 (12)     0       0  
John Rosales
4122 Blaisdell Avenue South #1
Minneapolis, MN 55409
    1,111 (12)     *       1,111 (12)     0       0  
Mitch Haugerud
1308 Highland Parkway
St. Paul, MN 55116
    1,111 (12)     *       1,111 (12)     0       0  

S-10


 

                                         
                            Shares    
    Shares   Percent           Beneficially   Percent
    Beneficially   Beneficially           Owned if All   Beneficially
    Owned   Owned           Shares are   Owned
    Before   Before   Shares   Sold in the   After
Name and Address of Selling Shareholder (1)   Offering (2)   Offering (2)   Offered   Offering   Offering
Todd Moscinski
1315 Birch Drive
Mayer, MN 55360
    1,111 (12)     *       1,111 (12)     0       0  
Yuria Takahashi
6425 Wilryan Avenue
Edina, MN 55439
    1,111 (12)     *       1,111 (12)     0       0  
Goldmark, LLC
13 West Shore Road
North Oaks, MN 55127
    888 (12)     *       888 (12)     0       0  
Chris LaMotte
325 Robie Street W.
St. Paul, MN 55107
    740 (12)     *       740 (12)     0       0  
Patrick Beyer
6425 Wilryan Avenue
Edina, MN 55439
    740 (12)     *       740 (12)     0       0  
Justin Chamberlain
7409 Humboldt Avenue North
Brooklyn Park, MN 55444
    666 (12)     *       666 (12)     0       0  
Norbert Theis
12466 Marystown Hills Lane
Shakopee, MN 56401
    630 (94)     *       75 (12)     555       *  
Mary S. Medina
14199 Bedford Drive
Eden Prairie, MN 55346
    592 (12)     *       592 (12)     0       0  
Charlie Latterall
6416 Josephine Avenue
Edina, MN 55439
    555 (12)     *       555 (12)     0       0  
Bridget Laska
16551 Whitewood Avenue
Prior Lake, MN 55372
    554 (12)     *       554 (12)     0       0  
Carl Torarp
2920 Dean Pkwy
Minneapolis, MN 55416
    444 (12)     *       444 (12)     0       0  
Holly Heitkamp
11757 Shannon Court, #1031
Eden Prairie, MN 55344
    222 (12)     *       222 (12)     0       0  
Jon A. Cotner
P.O. Box 270214
St. Paul, MN 55127
    166 (12)     *       166 (12)     0       0  
Lori Janies
1030 13th Ave SE
Minneapolis, MN 55414
    166 (12)     *       166 (12)     0       0  
Erin Flor
1900 East 86th Street
Bloomington, MN 55424
    111 (12)     *       111 (12)     0       0  
Martha Cole
519 Wheeler Drive
Excelsior, MN 55331
    111 (12)     *       111 (12)     0       0  

S-11


 

 
*   Represents less than one percent.
 
(1)   Unless otherwise indicated, the address of each shareholder is 730 East Lake Street, Wayzata, MN 55391.
 
(2)   Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to securities. Securities “beneficially owned” by a person may include securities owned by or for, among others, the spouse, children, or certain other relatives of such person as well as other securities as to which the person has or shares voting or investment power or has the option or right to acquire within 60 days of November 1, 2007.
 
(3)   Represents a) 351,729 shares of common stock, b) 232,770 shares purchasable upon the exercise of warrants, and c) 10,000 shares issuable upon the exercise of options.
 
(4)   Represents 295,731 shares of common stock and 232,770 shares purchasable upon the exercise of warrants.
 
(5)   Represents 55,998 shares of common stock and 10,000 shares issuable upon the exercise of options.
 
(6)   Represents 86,530 shares of common stock and 149,197 shares purchasable upon the exercise of warrants.
 
(7)   Represents 33,311 shares of common stock and 149,197 shares purchasable upon the exercise of warrants.
 
(8)   Represents a) 36,805 shares of common stock, b) 126,960 shares purchasable upon the exercise of warrants, and c) 15,000 shares issuable upon the exercise of options.
 
(9)   Represents 31,250 shares of common stock and 126,960 shares purchasable upon the exercise of warrants.
 
(10)   Represents 5,555 shares of common stock and 15,000 shares issuable upon the exercise of options.
 
(11)   Represents a) 2,000 shares of common stock, which have been pledged as security for a loan, b) 75,353 shares purchasable upon the exercise of warrants, and c) 83,333 shares issuable upon the exercise of options.
 
(12)   Represents shares purchasable upon the exercise of warrants. Shares indicated as beneficially owned and offered by Lorax Business Services, Inc. were previously included in the shares beneficially owned and offered by Lorax Investments, LLC.
 
(13)   Represents 2,000 shares of common stock, which have been pledged as security for a loan, and 83,333 shares issuable upon the exercise of options.
 
(14)   Represents 108,501 shares of common stock and 45,107 shares purchasable upon the exercise of warrants.
 
(15)   Represents 88,501 shares of common stock and 45,107 shares purchasable upon the exercise of warrants.
 
(16)   Represents 113,326 shares of common stock and 29,166 shares purchasable upon the exercise of warrants.
 
(17)   Represents 93,882 shares of common stock and 29,166 shares purchasable upon the exercise of warrants.
 
(18)   Represents 48,261 shares of common stock and 92,055 shares purchasable upon the exercise of warrants.
 
(19)   Represents 10,484 shares of common stock and 92,055 shares purchasable upon the exercise of warrants.
 
(20)   Represents 73,610 shares of common stock and 59,441 shares purchasable upon the exercise of warrants.
 
(21)   Represents 62,500 shares of common stock and 59,441 shares purchasable upon the exercise of warrants.
 
(22)   Represents 70,000 shares of common stock and 60,000 shares purchasable upon the exercise of warrants.
 
(23)   Represents a) 18,333 shares of common stock, b) 2,083 shares purchasable upon the exercise of warrants, c) 20,000 shares issuable upon the exercise of options, and d) 80,731 shares beneficially owned by SHAG LLC (which includes 11,109 shares purchasable upon the exercise of warrants). Dr. Schnell owns a 25% interest in SHAG LLC and may be deemed to beneficially own the shares held by SHAG LLC. Dr. Schnell disclaims beneficial ownership of the shares held by SHAG LLC except to the extent of his pecuniary interest in such shares.
 
(24)   Represents a) 18,333 shares of common stock, b) 20,000 shares issuable upon the exercise of options, and c) 80,731 shares beneficially owned by SHAG LLC (which includes 11,109 shares purchasable upon the exercise of warrants).
 
(25)   Represents a) 8,333 shares of common stock, b) 2,083 shares purchasable upon the exercise of warrants, and c) 80,731 shares beneficially owned by SHAG LLC (which includes 11,109 shares purchasable upon the exercise of warrants). Mr. Heyer owns a 25% interest in SHAG LLC and may be deemed to beneficially own the shares held by SHAG LLC. Mr. Heyer disclaims beneficial ownership of the shares held by SHAG LLC except to the extent of his pecuniary interest in such shares.
 
(26)   Represents 8,333 shares of common stock and 80,731 shares beneficially owned by SHAG LLC (which includes 11,109 shares purchasable upon the exercise of warrants).
 
(27)   Represents a) 8,333 shares of common stock, b) 2,083 shares purchasable upon the exercise of warrants, and c) 80,731 shares beneficially owned by SHAG LLC (which includes 11,109 shares purchasable upon the exercise of warrants). Mr. Goldschmidt owns a 25% interest in SHAG LLC and may be deemed to beneficially own the shares held by SHAG LLC. Mr. Goldschmidt disclaims beneficial ownership of the shares held by SHAG LLC except to the extent of his pecuniary interest in such shares.
 
(28)   Represents a) 8,333 shares of common stock, b) 2,083 shares purchasable upon the exercise of warrants, and c) 80,731 shares beneficially owned by SHAG LLC (which includes 11,109 shares purchasable upon the exercise of warrants). Mr. Hendricks owns a 25% interest in SHAG LLC and may be deemed to beneficially own the shares held by SHAG LLC. Mr. Hendricks disclaims beneficial ownership of the shares held by SHAG LLC except to the extent of his pecuniary interest in such shares.
 
(29)   Represents 51,560 shares of common stock and 31,152 shares purchasable upon the exercise of warrants.
 
(30)   Represents 39,062 shares of common stock and 31,152 shares purchasable upon the exercise of warrants.
 
(31)   Represents 51,484 shares of common stock and 30,000 shares purchasable upon the exercise of warrants.
 
(32)   Represents 69,622 shares of common stock and 11,109 shares purchasable upon the exercise of warrants.
 
(33)   Represents 36,289 shares of common stock and 11,109 shares purchasable upon the exercise of warrants.

S-12


 

 
(34)   Represents 52,409 shares of common stock and 26,806 shares purchasable upon the exercise of warrants.
 
(35)   Represents 2,554 shares of common stock and 26,806 shares purchasable upon the exercise of warrants
 
(36)   Represents 54,874 shares of common stock and 10,000 shares purchasable upon the exercise of warrants.
 
(37)   Represents 43,682 shares of common stock and 20,000 shares purchasable upon the exercise of warrants.
 
(38)   Represents 32,572 shares of common stock and 20,000 shares purchasable upon the exercise of warrants.
 
(39)   Represents 22,222 shares purchasable upon the exercise of warrants and 33,333 shares issuable upon the exercise of options.
 
(40)   Represents shares issuable upon the exercise of options.
 
(41)   Represents 36,125 shares of common stock and 10,000 shares purchasable upon the exercise of warrants.
 
(42)   Represents 15,625 shares of common stock and 10,000 shares purchasable upon the exercise of warrants.
 
(43)   Represents 36,805 shares of common stock and 8,332 shares purchasable upon the exercise of warrants.
 
(44)   Represents 31,250 shares of common stock and 8,332 shares purchasable upon the exercise of warrants.
 
(45)   Represents 18,332 shares of common stock and 26,720 shares purchasable upon the exercise of warrants.
 
(46)   Represents 33,805 shares of common stock and 11,109 shares purchasable upon the exercise of warrants.
 
(47)   Represents 28,250 shares of common stock and 11,109 shares purchasable upon the exercise of warrants.
 
(48)   Represents a) 2,777 shares of common stock, b) 31,942 shares purchasable upon the exercise of warrants, and c) 10,000 shares issuable pursuant to the exercise of options.
 
(49)   Represents 2,777 shares of common stock and 10,000 shares issuable pursuant to the exercise of options.
 
(50)   Represents 33,768 shares of common stock and 9,040 shares purchasable upon the exercise of warrants.
 
(51)   Represents 30,519 shares of common stock and 9,040 shares purchasable upon the exercise of warrants.
 
(52)   Represents 23,625 shares of common stock and 10,000 shares purchasable upon the exercise of warrants.
 
(53)   Represents 11,111 shares of common stock and 18,331 shares purchasable upon the exercise of warrants.
 
(54)   Represents 22,222 shares of common stock and 5,554 shares purchasable upon the exercise of warrants.
 
(55)   Represents 17,161 shares of common stock and 10,000 shares purchasable upon the exercise of warrants.
 
(56)   Represents 16,437 shares of common stock and 10,000 shares purchasable upon the exercise of warrants.
 
(57)   Represents 16,286 shares of common stock and 10,000 shares purchasable upon the exercise of warrants.
 
(58)   Represents 19,444 shares of common stock and 5,555 shares purchasable upon the exercise of warrants.
 
(59)   Represents 1,625 shares of common stock and 22,682 shares purchasable upon the exercise of warrants.
 
(60)   Represents 18,402 shares of common stock and 4,165 shares purchasable upon the exercise of warrants.
 
(61)   Represents 15,625 shares of common stock and 4,165 shares purchasable upon the exercise of warrants.
 
(62)   Represents a restricted stock award in the amount of 6,000 shares which vests in its entirety on January 1, 2008, (b) 12,500 shares issuable pursuant to the exercise of options and (c) 2,222 shares purchasable upon the exercise of warrants.
 
(63)   Represents a restricted stock award in the amount of 6,000 shares which vests in its entirety on January 1, 2008 and 12,500 shares issuable pursuant to the exercise of options.
 
(64)   Represents 10,000 shares of common stock and 10,000 shares purchasable upon the exercise of warrants.
 
(65)   Represents 16,242 shares of common stock and 2,660 shares purchasable upon the exercise of warrants.
 
(66)   Represents 5,372 shares of common stock and 2,660 shares purchasable upon the exercise of warrants.
 
(67)   Represents 8,286 shares of common stock and 10,000 shares purchasable upon the exercise of warrants.
 
(68)   Represents 12,580 shares of common stock and 5,000 shares purchasable upon the exercise of warrants.
 
(69)   Represents 8,580 shares of common stock and 5,000 shares purchasable upon the exercise of warrants.
 
(70)   Represents 8,910 shares of common stock and 8,332 shares purchasable upon the exercise of warrants.
 
(71)   Represents 3,355 shares of common stock and 8,332 shares purchasable upon the exercise of warrants.
 
(72)   Represents 9,771 shares of common stock and 6,000 shares purchasable upon the exercise of warrants.
 
(73)   Represents 5,000 shares of common stock and 10,000 shares purchasable upon the exercise of warrants.
 
(74)   Represents 11,111 shares of common stock and 2,777 shares purchasable upon the exercise of warrants.
 
(75)   Represents 11,041 shares of common stock and 2,471 shares purchasable upon the exercise of warrants.
 
(76)   Represents 9,375 shares of common stock and 2,471 shares purchasable upon the exercise of warrants.
 
(77)   Represents 11,131 shares of common stock and 1,179 shares purchasable upon the exercise of warrants.
 
(78)   Represents 2,000 shares of common stock and 10,000 shares purchasable upon the exercise of warrants.
 
(79)   Represents 3,612 shares of common stock and 8,331 shares purchasable upon the exercise of warrants.
 
(80)   Represents 7,812 shares of common stock and 2,082 shares purchasable upon the exercise of warrants.
 
(81)   Represents 6,666 shares of common stock and 1,904 shares purchasable upon the exercise of warrants.
 
(82)   Represents 3,332 shares of common stock and 4,387 shares purchasable upon the exercise of warrants.
 
(83)   Represents 3,332 shares of common stock and 222 shares purchasable upon the exercise of warrants.
 
(84)   Represents 5,555 shares of common stock and 1,388 shares purchasable upon the exercise of warrants.
 
(85)   Represents 2,776 shares of common stock and 3,655 shares purchasable upon the exercise of warrants.
 
(86)   Represents 555 shares of common stock and 4,444 shares purchasable upon the exercise of warrants.
 
(87)   Represents 1,776 shares of common stock and 2,338 shares purchasable upon the exercise of warrants.
 
(88)   Represents 2,110 shares of common stock and 1,387 shares purchasable upon the exercise of warrants.
 
(89)   Represents 2,777 shares of common stock and 694 shares purchasable upon the exercise of warrants.
 
(90)   Represents 1,111 shares of common stock and 1,666 shares purchasable upon the exercise of warrants.
 
(91)   Represents 1,110 shares of common stock and 1,461 shares purchasable upon the exercise of warrants.

S-13


 

(92)   Represents 1,443 shares of common stock and 1,110 shares purchasable upon the exercise of warrants.
 
(93)   Represents 554 shares of common stock and 766 shares purchasable upon the exercise of warrants.
 
(94)   Represents 555 shares of common stock and 75 shares purchasable upon the exercise of warrants.
Relationships with Selling Shareholders
     The following is a summary of material relationships between our company and the selling shareholders within the past three years: Barry Butzow is a former director of our company. Carl B. Walking Eagle Sr., one of our directors, is the Vice Chairman of the Spirit Lake Tribal Council and may be deemed to beneficially own the shares held by Spirit Lake Tribe. Mr. Walking Eagle disclaims beneficial ownership of the shares owned by Spirit Lake Tribe except to the extent of his pecuniary interest in such shares. Stephen E. Jacobs formerly served as our Executive Vice President and Corporate Secretary from June 2004 to March 2007. Jeffrey C. Mack serves as our Chairman of the Board, Chief Executive Officer, President and one of our directors. Susan K. Haugerud is a former director of our company and President of Galtere International Master Fund L.P. Christopher F. Ebbert serves as our Executive Vice President and Chief Technology Officer. Dr. William F. Schnell, one of our directors, is an owner of SHAG LLC and may be deemed to beneficially own the shares held by SHAG LLC. Dr. Schnell disclaims beneficial ownership of the shares held by SHAG LLC except to the extent of his pecuniary interest in such shares. John A. Witham serves as our Executive Vice President and Chief Financial Officer. Michael Hopkins is an employee and former director of our company. Michael J. Frank is a former director of our company. Scott W. Koller serves as our Executive Vice President Sales and Marketing. Brian S. Anderson serves as our Vice President and Controller. Thor A. Christensen is a former officer of our company. Jeff Hanson, Scot Sinnen, Israel Long, Tobias Kleinbaum, Laura Arntson, Chris LaMotte, Justin Chamberlain, Bridget Laska, Holly Heitkamp and Erin Flor are employees of our company. Dylan Birtolo, Mitch Haugerud, Todd Moscinski, Patrick Beyer and Martha Cole are former employees of our company.
Lock-Up Agreements
     Our directors, executive officers and certain other shareholders have agreed not to sell, offer to sell, contract to sell, pledge, hypothecate, grant any option to purchase, transfer or otherwise dispose of, grant any rights with respect to, or file or participate in the filing of a registration statement, except the registration statement of which this prospectus forms a part, with the SEC, or establish or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Exchange Act, or be the subject of any hedging, short sale, derivative or other transaction that is designed to, or reasonably expected to lead to, or result in, the effective economic disposition of, or publicly announce his, her or its intention to do any of the foregoing with respect to, any shares of common stock, or any securities convertible into, or exercisable or exchangeable for, any shares of common stock before December 13, 2007, without the prior written consent of the underwriters of our follow-on public offering.
Sales to Selling Shareholders
     In November 2006, we sold 5,175,000 shares of our common stock in our initial public offering. As a result of the closing of this public offering, we issued the following unregistered securities on November 30, 2006:
    Pursuant to the terms of convertible debenture agreements which we entered into with Spirit Lake Tribe, a federally recognized Native American tribe, our indebtedness to Spirit Lake Tribe incurred in 2005 aggregating $3,000,000 automatically converted into 1,302,004 shares of common stock. Spirit Lake Tribe sold 1,000,000 shares of our

S-14


 

      common stock at $7.00 per share pursuant to a separate registration statement on Form SB-2, which was declared effective by the SEC on June 13, 2007.
 
    Pursuant to various note conversion agreements with 21 holders of convertible notes or debentures, an aggregate of $2,029,973 principal amount of notes were automatically converted into 634,362 shares of our common stock. In addition, we issued 40,728 common shares in lieu of the payment of accrued interest in the amount of $130,344 due certain holders of such notes.
     On December 30, 2006, we issued 1,798,611 shares of common stock to holders of 12% convertible bridge notes upon the conversion of $5,413,429 principal amount and $342,126 in accrued interest on such notes. The remaining 12% convertible bridge notes not converted in a principal amount of $335,602, with accrued interest of $70,483, were repaid in cash.
     In connection with convertible notes and other debt agreements issued to private investors and to other individuals for services rendered, we issued five-year warrants to purchase an aggregate of 2,560,061 shares of our common stock, and six-year warrants to purchase an aggregate of 50,000 shares of our common stock.
     With respect to the above issuances, we agreed to include the shares issued upon conversion of indebtedness and in lieu of accrued interest and the shares issued upon exercise of warrants in this registration statement.
Selling Shareholders’ Registration Rights
     We agreed to file this registration statement to provide for the resale of our common stock issuable upon conversion of our promissory notes, including interest on such notes, convertible debentures, convertible bridge notes and upon exercise of certain of our outstanding warrants. We agreed to pay the expenses of this registration with the exception of any underwriting commissions and expenses. Our registration of the shares does not necessarily mean that the selling shareholders will sell all or any of the shares covered by this prospectus.

S-15