Business: Applied Energetics Inc., formerly Ionatron Inc., 6.50% Series A Redeemable Convertible Preferred Stock, liquidation preference $25 per share, redeemable at the issuer's option on or after 11/01/2010 at $25 per share plus accrued and unpaid dividends, and with no stated maturity. Distributions of 6.50% ($1.625) per annum are paid quarterly on 2/1, 5/1, 8/1 & 11/1 to holders of record on 1/15, 4/15, 7/15 & 10/15 respectively (NOTE: the ex-dividend date is one business day prior to the record date). The preferred shares are convertible any time at the holder's option into 2.08333 (calculated) common shares of Ionatron Inc. (Nasdaq: IOTN), an initial conversion price of $12.00 per common share. On or after 11/01/2008 through 10/31/2010, if the price of the common stock exceeds 140% of the conversion price for 20 of any 30 consecutive trading days, the company may, at their option, force the preferred shares to be converted into common shares at the then prevailing conversion price. In regards to payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the convertible preferred stock and the conversion provisions by clicking on the ‘Link to IPO Prospectus’ provided below. The Series A preferred shares were originally issued in a private placement on October 27, 2005.