5 1 g74272t6e5.txt VFINANCE, INC./ TIMOTHY E. MAHONEY FORM 5 ------ FORM 5 ------ [ ] Check box if no U.S. SECURITIES AND EXCHANGE COMMISSION longer subject to Washington, DC 20549 Section 16. Form 4 or Form 5 ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP obligations may continue. See Filed pursuant to Section 16(a) of the Securities Instruction 1(b). Exchange Act of 1934, [ ] Form 3 Holdings Section 17(a) of the Public Utility Reported Holding Company Act of 1935 or Section 30(f) of [ ] Form 4 the Investment Company Act Transactions of 1940 Reported ------------------------------------------------------------------------------------------------------------------------------------ | 1. Name and Address of Reporting Person* | 2. Issuer Name and Ticker or Trading Symbol |6. Relationship of Reporting Person to | | Mahoney Timothy E. | vFinance, Inc. (VFIN) | Issuer (Check all applicable) | |--------------------------------------------|---------------------------------------------| | | (Last) (First) (Middle) | 3. IRS Identification |4. Statement For | [X] Director [X] 10% Owner | | vFinance, Inc. | Number of Reporting | Month/Year | | | 3010 North Military Trail, Suite 300 | Person, if an Entity | December 31, 2001 | [X] Officer (give [ ] Other (specify| |--------------------------------------------| (Voluntary) |-------------------| title below) | | (Street) | |5. If Amendment, | below) | | | | Date of Original| Chairman and Chief Operating Officer | | | | (Month/Year) |---------------------------------------| | Boca Raton Florida 33431 | | |7. Individual or Joint/Group Filing | |--------------------------------------------|---------------------------------------------| (Check applicable line) | | (City) (State) (Zip) | | [X] Form filed by One | | | | Reporting Person | | | | [ ] Form filed by More Than | | | | One Reporting Person | |----------------------------------------------------------------------------------------------------------------------------------| | TABLE I -- NON-DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED | |----------------------------------------------------------------------------------------------------------------------------------| | 1. Title of Security | 2. Trans- | 3. Transac- |4. Securities Acquired (A)|5. Amount of Se- |6. Owner- |7. Nature | | (Instr. 3) | action | tion | or Disposed of (D) | curities Benefi-| ship | of In- | | | Date | Code | (Instr. 3, 4 and 5) | cially Owned at | Form: | direct | | | | (Instr. | | End of Issuer's | Direct | Benefi-| | | (Month/ | 8) | | Fiscal Year | (D) or | cial | | | Day/ | |--------------------------| (Instr. 3 and 4)| Indirect | Owner- | | | Year) | | Amount | (A) or | Price | | (I) | ship | | | | | | (D) | | | (Instr. 4)| (Instr.| | | | | | | | | | 4) | | | | | | | | | | | |--------------------------|-----------------|-------------|--------|--------|--------|-------------------|-------------|----------| | Common Stock, $0.1 | | | | | | | | | | par value | 8/30/01 | P | 234,802| A | $0.255 | 1,168,135 | D | | |--------------------------|-----------------|-------------|--------|--------|--------|-------------------|-------------|----------| | Common Stock, $.01 | | | | | | | | | | par value | -- | -- | -- | -- | -- | 2,175,000 | I | (1) | |--------------------------|-----------------|-------------|--------|--------|--------|-------------------|-------------|----------| | | | | | | | | | | |--------------------------|-----------------|-------------|--------|--------|--------|-------------------|-------------|----------| | | | | | | | | | | |--------------------------|-----------------|-------------|--------|--------|--------|-------------------|-------------|----------| | | | | | | | | | | |--------------------------|-----------------|-------------|--------|--------|--------|-------------------|-------------|----------| | | | | | | | | | | |--------------------------|-----------------|-------------|--------|--------|--------|-------------------|-------------|----------| | | | | | | | | | | |--------------------------|-----------------|-------------|--------|--------|--------|-------------------|-------------|----------| | | | | | | | | | | |--------------------------|-----------------|-------------|--------|--------|--------|-------------------|-------------|----------| | | | | | | | | | | |--------------------------|-----------------|-------------|--------|--------|--------|-------------------|-------------|----------| | | | | | | | | | | ----------------------------------------------------------------------------------------------------------------------------------- Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. (Over) *If the form is filed by more than one reporting person, see instruction 4(b)(v).

FORM 5 (CONTINUED) TABLE II -- DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED (E.G., PUTS, CALLS, WARRANTS, OPTIONS, CONVERTIBLE SECURITIES) ------------------------------------------------------------------------------------------------------------------------------------ | 1. Title of Derivative| 2. Conver- | 3. Trans- | 4. Trans- | 5. Number of | 6. Date Exer- |7. Title and Amount| 8. Price | | Security | sion or | action | action | Derivative | cisable and | of Underlying | of | | (Instr. 3) | Exercise| Date | Code | Securities | Expiration | Securities | Deriv- | | | Price of| (Month/| (Instr.| Acquired (A)| Date | (Instr. 3 and 4)| ative | | | Deriv- | Day/ | 8) | or Disposed | (Month/Day/ | | Secur- | | | ative | Year) | | of (D) | Year) | | ity | | | Security| | | (Instr. 3, | | | (Instr. 5)| | | | | | 4, and 5) |-----------------|-------------------| | | | | | | | Date |Expira- | | Amount or | | | | | | |----------------| Exer- |tion |Title | Number of | | | | | | | (A) | (D) | cisable|Date | | Shares | | |-----------------------|------------|-----------|-----------|-------|--------|--------|--------|------|------------|--------------| | Employee Stock | | | | | | | | | | | | Option (Right | | | | | | | |Common| | | | to Buy) | (2) | 1/1/01 (2)| D (2) | | 500,000| (2) | (2) |Stock | 500,000 | | |-----------------------|------------|-----------|-----------|-------|--------|--------|--------|------|------------|--------------| | Employee Stock | | | | | | | | | | | | Option (Right | | | | | | | |Common| | | | to Buy | $0.625 7/6/01 | A |500,000| | (3) | 7/6/05 |Stock | 500,000 | | |-----------------------|------------|-----------|-----------|-------|--------|--------|--------|------|------------|--------------| | Employee Stock | | | | | | | | | | | | Option (Right | | | | | | | |Common| | | | to Buy) | $0.35 | 8/30/01 | A |234,802| | 8/30/01| 8/30/06|Stock | 234,802 | | |-----------------------|------------|-----------|-----------|-------|--------|--------|--------|------|------------|--------------| | | | | | | | | | | | | |-----------------------|------------|-----------|-----------|-------|--------|--------|--------|------|------------|--------------| | | | | | | | | | | | | |-----------------------|------------|-----------|-----------|-------|--------|--------|--------|------|------------|--------------| | | | | | | | | | | | | |-----------------------|------------|-----------|-----------|-------|--------|--------|--------|------|------------|--------------| | | | | | | | | | | | | ------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------ | 9. Number of | 10. Ownership | 11. Nature of | | Derivative | of Derivative | Indirect | | Securities | Security: | Beneficial | | Beneficially | Direct (D) | Ownership | | Owned at End | or Indirect (I) | (Instr. 4) | | of Year | (Instr. 4) | | | (Instr. 4) | | | | | | | |--------------------|--------------------------|----------------------| | | | | | | | | | -0- | D | | |--------------------|--------------------------|----------------------| | | | | | | | | | 500,000 | D | | |--------------------|--------------------------|----------------------| | | | | | | | | | 234,802 | D | | |--------------------|--------------------------|----------------------| | | | | |--------------------|--------------------------|----------------------| | | | | |--------------------|--------------------------|----------------------| | | | | ------------------------------------------------------------------------ Explanation of Responses: (1) Held of record by Highlands Group Holdings, Inc., a corporation controlled by Mr. Mahoney. (2) The option was granted on June 1, 2000 (reported on a Form 4 for June 2000, /s/ Timothy E. Mahoney 2/14/2002 filed with the Securities and Exchange Commission on February 14, 2002) and -------------------------------- ---------- was cancelled pursuant to an Option Cancellation Agreement dated January Timothy E. Mahoney Date 1, 2001. **Signature of Reporting Person (3) 25% of the option vested upon grant, The remaining 75% will vest in three equal annual installments beginning on July 6, 2002. **Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays Page 2 a currently valid OMB Number.