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Attn:
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Aslynn
Hogue
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Re:
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Oculus
Innovative Sciences, Inc.
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Comment
1:
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Please
revise future filings to discuss briefly, for each director, the specific
experience, qualifications, attributes or skills that led to the
conclusion that the person should serve as a director, in light of your
business and structure. Refer to Regulation S-K Item
401(e).
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Response
1:
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The
Company will comply with this comment in future
filings.
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Comment
2:
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Please
revise future filings to describe any material factors necessary to an
understanding of the information disclosed in the summary compensation
table. For example, we note that you did not discuss the
$23,000 cash bonus awarded to Mr. Schutz on pages 15-17 of the definitive
proxy statement, which was incorporated by reference. Refer to
Regulation S-K Item 402(o).
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Response
2:
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The
Company will comply with this comment in future
filings.
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Comment
3:
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We
note that your disclosure on page 18 of your definitive proxy statement,
which was incorporated by reference. Please tell us how you
determined that Robert Burlingame and Seamus Burlingame did not
beneficially own more than 5% of your outstanding common
stock. We note your previous disclosure on page 19 of your
definitive proxy statement filed July 29, 2009 that as of July 29, 2009
these two individuals owned 1,755,486 and 1,580,504 shares, respectively
and it appears that you have had multiple direct transactions with these
individuals.
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Response
3:
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As
disclosed in the Company’s proxy statement dated July 29, 2010, as of July
15, 2010, there were 26,277,458 shares of the Company’s common stock
outstanding.
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Comment
4:
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Please
revise future filings to include the approximate dollar value of the
listed related party transactions, the largest aggregate amount
outstanding during the period, the amount paid during the period, and the
amount outstanding at the latest practicable date. Refer to
Regulation S-K Item 404(a).
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Response
4:
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The
Company will comply with this comment in future
filings.
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Comment
5:
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We
note that you do not appear to have described all of your related party
transactions. For example, it is unclear why you have
not:
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Described
the terms of your purchase agreement with Robert Burlingame dated January
26, 2009;
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·
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Disclosed
your agreements with Seamus Burlingame on January 26, 2009 and February
24, 2009; and
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Explained
the impact of the termination of the January 26, 2009 purchase agreements
with Robert Burlingame and Seamus Burlingame in the February 24, 2009
purchase agreement, which are included as exhibits to your filing. For
example, had Robert or Seamus Burlingame purchased shares under the
January 26, 2009 purchase agreements? What were the changes in
the material terms of the purchase
agreements?
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Please
tell us why you have not provided such disclosure and how you intend to
address this in future filings.
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Response
5:
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As
disclosed in the Company’s Current Report on Form 8-K filed February 27,
2009, the stock purchase agreement with Robert Burlingame and Seamus
Burlingame dated February 24, 2009 (the “Agreement”) rescinds and replaces
the Purchase Agreements the Company entered into on January 26,
2009. No shares were purchased under the rescinded January 26,
2009 agreements because such agreements were voided as though they never
occurred. The Agreement was disclosed as to Robert
Burlingame on pages 65 and 67 of the Annual Report on Form 10-K dated June
8, 2010, and in the Schedule 14A Proxy Statement dated July 29, 2010 on
page 12.
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The
material changes made to the January 26, 2009 agreement that were
reflected in the Agreement were as
follows:
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·
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The
parties agreed to terminate the January 26, 2009 purchase agreements “as
though those Purchase Agreements had not been entered
into.” (See Clause 2.1 of the Purchase Agreement by and between
the Company and Robert Burlingame and Seamus Burlingame, included as
Exhibit 10.4 to the Current Report on Form 8-K filed February 27,
2009.) The separate purchase agreements with Robert Burlingame
and Seamus Burlingame were replaced by a single new
agreement.
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·
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The
total number of shares of common stock to be issued decreased by 2,622
shares from 2,566,725 to 2,564,103.
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·
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The
Company agreed to issue the shares in two tranches, instead of
three.
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Comment
6:
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Please
tell us why you did not file as exhibits your July 24, 2009 amendment to
your commercial agreement to sell your Vetericyn products or your
September 15, 2009 commercial agreement to sell your Microcyn
over-the-counter liquid and gel products. Refer to Regulation
S-K Item 601(b)(10).
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Response
6:
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At
the time the Company entered into the agreement with Vetericyn, Inc., the
agreement was not generating a material level of
revenue. Additionally, the Company believed that Amendment 2
did not materially alter the original contract such that further
disclosure was required. As such, the Company determined not to
file Amendment 2 with its periodic filings. The Company intends
to file Amendment No. 2 to the Revenue Sharing, Partnership and
Distribution Agreement between the Company and Vetericyn, Inc. as Exhibit
10.44 to the Quarterly Report on Form 10-Q, for the quarter ended
September 30, 2010 because the Company believes Amendment 2 has become
more material as the original contract has generated significantly more
revenue in the most recent fiscal
quarter.
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Through
the quarter ended March 31, 2010, the Company earned only nominal revenues
from the September 15, 2009 commercial agreement to sell Microcyn and
therefore determined that it was not material. The Company
continues to believe such agreement is not
material.
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Comment
7:
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Please
file complete Exhibits 10.41, 10.42, 10.49, and 10.50, including all
exhibits and signature pages. We note that Exhibits 10.41,
10.42, and 10.49 did not include the signature pages with names and
signatures of the purchasers or investors and that Exhibits 10.49 and
10.50 do not list any investors in Schedule
A.
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Response
7:
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The
Company will file amended Exhibits. The Exhibits to the Annual
Report on Form 10-K for the year ended December 31, 2009 will be re-filed
as the following Exhibits to the Company’s Quarterly Report on Form 10-Q
for the quarter ended September 30,
2010:
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Form
10-K Exhibit 10.41 will be re-filed as Exhibit 10.26 to the Form 10-Q,
amended so as to include the signature pages of the
purchasers.
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Form
10-K Exhibit 10.42 will be re-filed as Exhibit 10.27 to the Form 10-Q,
amended so as to include the signature pages of the
purchasers.
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Form
10-K Exhibit 10.49 will be re-filed as Exhibit 10.32 to the Form 10-Q,
amended to include the Exhibit A investor list and the signature pages of
the purchasers.
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Comment
8:
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Tell
us, with a view towards revising your disclosure, what are your current
subsidiaries. We note that the list of subsidiaries
incorporated by reference is not consistent with your disclosure in
“Principles of Consolidation” on page
52.
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Response
8:
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The
list of subsidiaries disclosed in the Company’s 10-K for the year ended
March 31, 2010 was correct. The Company will file an updated
list of subsidiaries as Exhibit 21.1 to its Quarterly Report on Form 10-Q
for the quarter ended September 30,
2010.
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Regards,
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/s/ Amy M. Trombly
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Amy
M. Trombly, Esq.
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