UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D UNDER THE SECURITIES EXCHANGE ACT OF 1934 (AMENDMENT NO. 7)(1) NETWORK-1 SECURITY SOLUTIONS, INC. - -------------------------------------------------------------------------------- (Name of Issuer) Common Stock, $0.01 Par Value Per Share - -------------------------------------------------------------------------------- (Title of Class of Securities) 64121N109 ------------------ (CUSIP Number) Wheatley Partners II, L.P. 80 Cuttermill Road Great Neck, NY 11021 Telephone: (516) 773-1024 With a copy to: Michael R. Reiner, Esq. Breslow & Walker, LLP 767 Third Avenue New York, New York 10017 Telephone: (212) 832-1930 - -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) October 25, 2007 ----------------------------------------------------- Date of Event Which Requires Filing of this Statement If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of ss.ss.240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box: |_| Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See ss.13d-7 for other parties to whom copies are to be sent. (Continued on following page(s)) (1)The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). Page 1 of 22 CUSIP No. 64121N109 13D - --------- ---------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Wheatley Partners II, L.P. - --------- ---------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) |_| (b) |_| - --------- ---------------------------------------------------------------------- 3 SEC USE ONLY - --------- ---------------------------------------------------------------------- 4 SOURCE OF FUNDS* (SEE INSTRUCTIONS) WC, OO - --------- ---------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - --------- ---------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION New York - --------------------------------- ----- ---------------------------------------- 7 SOLE VOTING POWER Number of 0 shares Shares ----- ---------------------------------------- Beneficially Owned By 8 SHARED VOTING POWER Each 0 shares Reporting ----- ---------------------------------------- Person With 9 SOLE DISPOSITIVE POWER 0 shares ----- ---------------------------------------- 10 SHARED DISPOSITIVE POWER 0 shares - --------- ---------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0 shares - --------- ---------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |_| - --------- ---------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0% - --------- ---------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) PN - --------- ---------------------------------------------------------------------- Page 2 of 22 CUSIP No. 64121N109 13D - --------- ---------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Irwin Lieber - --------- ---------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) |_| (b) |_| - --------- ---------------------------------------------------------------------- 3 SEC USE ONLY - --------- ---------------------------------------------------------------------- 4 SOURCE OF FUNDS* (SEE INSTRUCTIONS) PF, OO - --------- ---------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - --------- ---------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - --------------------------------- ----- ---------------------------------------- 7 SOLE VOTING POWER Number of 556,983 shares Shares ----- ---------------------------------------- Beneficially Owned By 8 SHARED VOTING POWER Each 0 shares Reporting ----- ---------------------------------------- Person With 9 SOLE DISPOSITIVE POWER 556,983 shares ----- ---------------------------------------- 10 SHARED DISPOSITIVE POWER 0 shares - --------- ---------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 556,983 shares - --------- ---------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |_| - --------- ---------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.4% - --------- ---------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) IN - --------- ---------------------------------------------------------------------- Page 3 of 22 CUSIP No. 64121N109 13D - --------- ---------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Barry Rubenstein - --------- ---------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) |_| (b) |_| - --------- ---------------------------------------------------------------------- 3 SEC USE ONLY - --------- ---------------------------------------------------------------------- 4 SOURCE OF FUNDS* (SEE INSTRUCTIONS) PF, OO - --------- ---------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - --------- ---------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - --------------------------------- ----- ---------------------------------------- 7 SOLE VOTING POWER Number of 197,512 shares Shares ----- ---------------------------------------- Beneficially Owned By 8 SHARED VOTING POWER Each 1,881,384 shares Reporting ----- ---------------------------------------- Person With 9 SOLE DISPOSITIVE POWER 197,512 shares ----- ---------------------------------------- 10 SHARED DISPOSITIVE POWER 1,881,384 shares - --------- ---------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 2,078,896 shares - --------- ---------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |_| - --------- ---------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 8.9% - --------- ---------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) IN - --------- ---------------------------------------------------------------------- Page 4 of 22 CUSIP No. 64121N109 13D - --------- ---------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Barry Fingerhut - --------- ---------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) |_| (b) |_| - --------- ---------------------------------------------------------------------- 3 SEC USE ONLY - --------- ---------------------------------------------------------------------- 4 SOURCE OF FUNDS* (SEE INSTRUCTIONS) PF, OO - --------- ---------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - --------- ---------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - --------------------------------- ----- ---------------------------------------- 7 SOLE VOTING POWER Number of 517,243 shares Shares ----- ---------------------------------------- Beneficially Owned By 8 SHARED VOTING POWER Each 0 shares Reporting ----- ---------------------------------------- Person With 9 SOLE DISPOSITIVE POWER 517,243 shares ----- ---------------------------------------- 10 SHARED DISPOSITIVE POWER 0 shares - --------- ---------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 517,243 shares - --------- ---------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |_| - --------- ---------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.2% - --------- ---------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) IN - --------- ---------------------------------------------------------------------- Page 5 of 22 CUSIP No. 64121N109 13D - --------- ---------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Seth Lieber - --------- ---------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) |_| (b) |_| - --------- ---------------------------------------------------------------------- 3 SEC USE ONLY - --------- ---------------------------------------------------------------------- 4 SOURCE OF FUNDS* (SEE INSTRUCTIONS) PF, OO - --------- ---------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - --------- ---------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - --------------------------------- ----- ---------------------------------------- 7 SOLE VOTING POWER Number of 34,136 shares Shares ----- ---------------------------------------- Beneficially Owned By 8 SHARED VOTING POWER Each 106,809 shares Reporting ----- ---------------------------------------- Person With 9 SOLE DISPOSITIVE POWER 34,136 shares ----- ---------------------------------------- 10 SHARED DISPOSITIVE POWER 106,809 shares - --------- ---------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 140,945 shares - --------- ---------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |_| - --------- ---------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.6% - --------- ---------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) IN - --------- ---------------------------------------------------------------------- Page 6 of 22 CUSIP No. 64121N109 13D - --------- ---------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Jonathan Lieber - --------- ---------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) |_| (b) |_| - --------- ---------------------------------------------------------------------- 3 SEC USE ONLY - --------- ---------------------------------------------------------------------- 4 SOURCE OF FUNDS* (SEE INSTRUCTIONS) PF, OO - --------- ---------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - --------- ---------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - --------------------------------- ----- ---------------------------------------- 7 SOLE VOTING POWER Number of 32,584 shares Shares ----- ---------------------------------------- Beneficially Owned By 8 SHARED VOTING POWER Each 106,809 shares Reporting ----- ---------------------------------------- Person With 9 SOLE DISPOSITIVE POWER 32,584 shares ----- ---------------------------------------- 10 SHARED DISPOSITIVE POWER 106,809 shares - --------- ---------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 139,393 shares - --------- ---------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |_| - --------- ---------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.6% - --------- ---------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) IN - --------- ---------------------------------------------------------------------- Page 7 of 22 CUSIP No. 64121N109 13D - --------- ---------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Woodland Venture Fund - --------- ---------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) |_| (b) |_| - --------- ---------------------------------------------------------------------- 3 SEC USE ONLY - --------- ---------------------------------------------------------------------- 4 SOURCE OF FUNDS* (SEE INSTRUCTIONS) WC, OO - --------- ---------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - --------- ---------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION New York - --------------------------------- ----- ---------------------------------------- 7 SOLE VOTING POWER Number of 792,726 shares Shares ----- ---------------------------------------- Beneficially Owned By 8 SHARED VOTING POWER Each 0 shares Reporting ----- ---------------------------------------- Person With 9 SOLE DISPOSITIVE POWER 792,726 shares ----- ---------------------------------------- 10 SHARED DISPOSITIVE POWER 0 shares - --------- ---------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 792,726 shares - --------- ---------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |_| - --------- ---------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 3.4% - --------- ---------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) PN - --------- ---------------------------------------------------------------------- Page 8 of 22 CUSIP No. 64121N109 13D - --------- ---------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Seneca Ventures - --------- ---------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) |_| (b) |_| - --------- ---------------------------------------------------------------------- 3 SEC USE ONLY - --------- ---------------------------------------------------------------------- 4 SOURCE OF FUNDS* (SEE INSTRUCTIONS) WC, OO - --------- ---------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - --------- ---------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION New York - --------------------------------- ----- ---------------------------------------- 7 SOLE VOTING POWER Number of 583,483 shares Shares ----- ---------------------------------------- Beneficially Owned By 8 SHARED VOTING POWER Each 0 shares Reporting ----- ---------------------------------------- Person With 9 SOLE DISPOSITIVE POWER 583,483 shares ----- ---------------------------------------- 10 SHARED DISPOSITIVE POWER 0 shares - --------- ---------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 583,483 shares - --------- ---------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |_| - --------- ---------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 2.5% - --------- ---------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) PN - --------- ---------------------------------------------------------------------- Page 9 of 22 CUSIP No. 64121N109 13D - --------- ---------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Marilyn Rubenstein - --------- ---------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) |_| (b) |_| - --------- ---------------------------------------------------------------------- 3 SEC USE ONLY - --------- ---------------------------------------------------------------------- 4 SOURCE OF FUNDS* (SEE INSTRUCTIONS) PF, OO - --------- ---------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - --------- ---------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION United States - --------------------------------- ----- ---------------------------------------- 7 SOLE VOTING POWER Number of 1,049 shares Shares ----- ---------------------------------------- Beneficially Owned By 8 SHARED VOTING POWER Each 1,880,335 shares Reporting ----- ---------------------------------------- Person With 9 SOLE DISPOSITIVE POWER 1,049 shares ----- ---------------------------------------- 10 SHARED DISPOSITIVE POWER 1,880,335 shares - --------- ---------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,881,384 shares - --------- ---------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |_| - --------- ---------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 8.1% - --------- ---------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) IN - --------- ---------------------------------------------------------------------- Page 10 of 22 CUSIP No. 64121N109 13D - --------- ---------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Woodland Services Corp. - --------- ---------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) |_| (b) |_| - --------- ---------------------------------------------------------------------- 3 SEC USE ONLY - --------- ---------------------------------------------------------------------- 4 SOURCE OF FUNDS* (SEE INSTRUCTIONS) OO - --------- ---------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - --------- ---------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION New York - --------------------------------- ----- ---------------------------------------- 7 SOLE VOTING POWER Number of 0 shares Shares ----- ---------------------------------------- Beneficially Owned By 8 SHARED VOTING POWER Each 1,376,209 shares Reporting ----- ---------------------------------------- Person With 9 SOLE DISPOSITIVE POWER 0 shares ----- ---------------------------------------- 10 SHARED DISPOSITIVE POWER 1,376,209 shares - --------- ---------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 1,376,209 shares - --------- ---------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |_| - --------- ---------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.9% - --------- ---------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) CO - --------- ---------------------------------------------------------------------- Page 11 of 22 CUSIP No. 64121N109 13D - --------- ---------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Woodland Partners - --------- ---------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) |_| (b) |_| - --------- ---------------------------------------------------------------------- 3 SEC USE ONLY - --------- ---------------------------------------------------------------------- 4 SOURCE OF FUNDS* (SEE INSTRUCTIONS) WC, OO - --------- ---------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - --------- ---------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION New York - --------------------------------- ----- ---------------------------------------- 7 SOLE VOTING POWER Number of 309,316 shares Shares ----- ---------------------------------------- Beneficially Owned By 8 SHARED VOTING POWER Each 0 shares Reporting ----- ---------------------------------------- Person With 9 SOLE DISPOSITIVE POWER 309,316 shares ----- ---------------------------------------- 10 SHARED DISPOSITIVE POWER 0 shares - --------- ---------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 309,316 shares - --------- ---------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |_| - --------- ---------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 1.3% - --------- ---------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) PN - --------- ---------------------------------------------------------------------- Page 12 of 22 CUSIP No. 64121N109 13D - --------- ---------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Brookwood Partners, L.P. - --------- ---------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) |_| (b) |_| - --------- ---------------------------------------------------------------------- 3 SEC USE ONLY - --------- ---------------------------------------------------------------------- 4 SOURCE OF FUNDS* (SEE INSTRUCTIONS) WC, OO - --------- ---------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - --------- ---------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION New York - --------------------------------- ----- ---------------------------------------- 7 SOLE VOTING POWER Number of 194,810 shares Shares ----- ---------------------------------------- Beneficially Owned By 8 SHARED VOTING POWER Each 0 shares Reporting ----- ---------------------------------------- Person With 9 SOLE DISPOSITIVE POWER 194,810 shares ----- ---------------------------------------- 10 SHARED DISPOSITIVE POWER 0 shares - --------- ---------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 194,810 shares - --------- ---------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |_| - --------- ---------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.8% - --------- ---------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) PN - --------- ---------------------------------------------------------------------- Page 13 of 22 CUSIP No. 64121N109 13D - --------- ---------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Applegreen Partners - --------- ---------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) |_| (b) |_| - --------- ---------------------------------------------------------------------- 3 SEC USE ONLY - --------- ---------------------------------------------------------------------- 4 SOURCE OF FUNDS* (SEE INSTRUCTIONS) WC, OO - --------- ---------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - --------- ---------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION New York - --------------------------------- ----- ---------------------------------------- 7 SOLE VOTING POWER Number of 106,809 shares Shares ----- ---------------------------------------- Beneficially Owned By 8 SHARED VOTING POWER Each 0 shares Reporting ----- ---------------------------------------- Person With 9 SOLE DISPOSITIVE POWER 106,809 shares ----- ---------------------------------------- 10 SHARED DISPOSITIVE POWER 0 shares - --------- ---------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 106,809 shares - --------- ---------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |_| - --------- ---------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.5% - --------- ---------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) PN - --------- ---------------------------------------------------------------------- Page 14 of 22 CUSIP No. 64121N109 13D - --------- ---------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Wheatley Partners, L.P. - --------- ---------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) |_| (b) |_| - --------- ---------------------------------------------------------------------- 3 SEC USE ONLY - --------- ---------------------------------------------------------------------- 4 SOURCE OF FUNDS* (SEE INSTRUCTIONS) WC, OO - --------- ---------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - --------- ---------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - --------------------------------- ----- ---------------------------------------- 7 SOLE VOTING POWER Number of 0 shares Shares ----- ---------------------------------------- Beneficially Owned By 8 SHARED VOTING POWER Each 0 shares Reporting ----- ---------------------------------------- Person With 9 SOLE DISPOSITIVE POWER 0 shares ----- ---------------------------------------- 10 SHARED DISPOSITIVE POWER 0 shares - --------- ---------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0 shares - --------- ---------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |_| - --------- ---------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0% - --------- ---------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) PN - --------- ---------------------------------------------------------------------- Page 15 of 22 CUSIP No. 64121N109 13D - --------- ---------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Wheatley Foreign Partners, L.P. - --------- ---------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) |_| (b) |_| - --------- ---------------------------------------------------------------------- 3 SEC USE ONLY - --------- ---------------------------------------------------------------------- 4 SOURCE OF FUNDS* (SEE INSTRUCTIONS) WC, OO - --------- ---------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - --------- ---------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - --------------------------------- ----- ---------------------------------------- 7 SOLE VOTING POWER Number of 0 shares Shares ----- ---------------------------------------- Beneficially Owned By 8 SHARED VOTING POWER Each 0 shares Reporting ----- ---------------------------------------- Person With 9 SOLE DISPOSITIVE POWER 0 shares ----- ---------------------------------------- 10 SHARED DISPOSITIVE POWER 0 shares - --------- ---------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0 shares - --------- ---------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |_| - --------- ---------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0% - --------- ---------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) PN - --------- ---------------------------------------------------------------------- Page 16 of 22 CUSIP No. 64121N109 13D - --------- ---------------------------------------------------------------------- 1 NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) Wheatley Partners, LLC - --------- ---------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) |_| (b) |_| - --------- ---------------------------------------------------------------------- 3 SEC USE ONLY - --------- ---------------------------------------------------------------------- 4 SOURCE OF FUNDS* (SEE INSTRUCTIONS) OO - --------- ---------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |_| - --------- ---------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - --------------------------------- ----- ---------------------------------------- 7 SOLE VOTING POWER Number of 0 shares Shares ----- ---------------------------------------- Beneficially Owned By 8 SHARED VOTING POWER Each 0 shares Reporting ----- ---------------------------------------- Person With 9 SOLE DISPOSITIVE POWER 0 shares ----- ---------------------------------------- 10 SHARED DISPOSITIVE POWER 0 shares - --------- ---------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0 shares - --------- ---------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |_| - --------- ---------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0% - --------- ---------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) OO - --------- ---------------------------------------------------------------------- Page 17 of 22 This statement, dated October 25, 2007, constitutes Amendment No. 7 to the Schedule 13D, dated November 12, 1998, regarding the reporting persons' ownership of certain securities of Network-1 Security Solutions, Inc. All capitalized terms used herein and otherwise undefined shall have the meanings ascribed in the Schedule. ITEM 5. Interests in Securities of the Issuer. Item 5 is hereby amended and restated as follows: (a) The following list sets forth the aggregate number and percentage (based on 23,198,057 shares of Common Stock outstanding as reported in the Issuer's Form 10-QSB for the quarter ended June 30, 2007), of outstanding shares of Common Stock owned beneficially by each reporting person named in Item 2, as of October 25, 2007:
Percentage of Shares of Common Stock Name Shares of Common Stock Beneficially Owned(2) Beneficially Owned - ---- -------------------------------------------- ------------------ Wheatley Partners II, L.P. 0 0% Barry Rubenstein 2,078,896(3), (4), (5), (6), (7), (8), (9) 8.9% Irwin Lieber 556,983(10) 2.4% Barry Fingerhut 517,243(11) 2.2% Seth Lieber 140,945(3), (12), (13) 0.6% Jonathan Lieber 139,393(3), (13), (14) 0.6% Woodland Venture Fund 792,726(5) 3.4% Seneca Ventures 583,483(6) 2.5% Marilyn Rubenstein 1,881,384(3), (5), (6), (7), (8), (9) 8.1% Woodland Services Corp. 1,376,209(3), (5), (6) 5.9% Woodland Partners 309,316(7) 1.3% Brookwood Partners, L.P. 194,810(9) 0.8% Applegreen Partners 106,809(13) 0.5% Wheatley Partners, L.P. 0 0% Wheatley Foreign Partners, L.P. 0 0% Wheatley Partners, LLC 0 0%
- --------------- (2) Includes shares of Common Stock issuable upon the exercise of the 1998 Directors Option, the June 1999 Directors Option, the October 1999 Directors Option, and the December 1999 Directors Option. Page 18 of 22 (3) The reporting person disclaims beneficial ownership of these securities, except to the extent of his/her/its equity interest therein. (4) Includes 150,012 shares of Common Stock owned individually by Barry Rubenstein, 20,000 shares of Common Stock issuable upon the exercise of the 1998 Directors Option, 10,000 shares of Common Stock issuable upon the exercise of the June 1999 Directors Option, 7,500 shares of Common Stock issuable upon the exercise of the October 1999 Directors Option and 10,000 shares of Common Stock issuable upon the exercise of the December 1999 Directors Option. (5) Includes 792,726 shares of Common Stock owned by Woodland Venture. (6) Includes 583,483 shares of Common Stock owned by Seneca. (7) Includes 309,316 shares of Common Stock owned by Woodland Partners. (8) Includes 1,049 shares of Common Stock owned by Marilyn Rubenstein. (9) Includes 194,810 shares of Common Stock owned by Brookwood. (10) Includes 509,483 shares of Common Stock owned individually by Irwin Lieber, 20,000 shares of Common Stock issuable upon the exercise of the 1998 Directors Option, 10,000 shares of Common Stock issuable upon the exercise of the June 1999 Directors Option, 7,500 shares of Common Stock issuable upon the exercise of the October 1999 Directors Option and 10,000 shares of Common Stock issuable upon the exercise of the December 1999 Directors Option. (11) Includes 517,243 shares of Common Stock owned individually by Barry Fingerhut. (12) Includes 34,136 shares of Common Stock owned individually by Seth Lieber. (13) Includes 106,809 shares of Common Stock owned by Applegreen Partners. (14) Includes 32,584 shares of Common Stock owned individually by Jonathan Lieber. (b) Barry Rubenstein, by virtue of being a general partner of Woodland Venture, Seneca, Woodland Partners and Brookwood, and the husband of Marilyn Rubenstein, may be deemed to have shared power to vote and to dispose of 1,881,384 shares of Common Stock, representing approximately 8.1% of the outstanding Common Stock. Barry Rubenstein has sole power to vote and to dispose of 197,512 shares of Common Stock (including shares issuable upon the exercise of the 1998 Directors Option, the June 1999 Directors Option, the October 1999 Directors Option and the December 1999 Directors Option), representing approximately 0.8% of the outstanding Common Stock. Irwin Lieber has sole power to vote and to dispose of 556,983 shares of Common Stock (including shares issuable upon the exercise of the 1998 Directors Option, the June 1999 Directors Option, the October 1999 Directors Option and the December 1999 Directors Option), representing approximately 2.4% of the outstanding Common Stock. Barry Fingerhut has sole power to vote and to dispose of 517,243 shares of Common Stock, representing approximately 2.2% of the outstanding Common Stock. Seth Lieber, by virtue of being a general partner of Applegreen, may be deemed to have shared power to vote and to dispose of 106,809 shares of Common Stock, representing approximately 0.5% of the outstanding Common Stock. Seth Lieber has sole power to vote and to dispose of 34,136 shares of Common Stock, representing approximately 0.1% of the outstanding Common Stock. Jonathan Lieber, by virtue of being managing general partner of Applegreen, may be deemed to have shared power to vote and to dispose of 106,809 shares of Common Stock, representing approximately 0.5% of the outstanding Common Stock. Jonathan Lieber has sole power to vote and to dispose of 32,584 shares of Common Stock, representing approximately 0.1% of the outstanding Common Stock. Woodland Venture has sole power to vote and to dispose of 792,726 shares of Common Stock, representing approximately 3.4% of the outstanding Common Stock. Page 19 of 22 Seneca has sole power to vote and to dispose of 583,483 shares of Common Stock, representing approximately 2.5% of the outstanding Common Stock. Marilyn Rubenstein has sole power to vote and to dispose of 1,049 shares of Common Stock, representing approximately 0.005% of the outstanding Common Stock, and by virtue of being an officer of Services and a general partner of Woodland Partners and Brookwood, may be deemed to have shared power to vote and to dispose of 1,880,335 shares of Common Stock, representing approximately 8.1% of the outstanding Common Stock. Services by virtue of being a general partner of Woodland Venture and Seneca, may be deemed to have shared power to vote and to dispose of 1,376,209 shares of Common Stock, representing approximately 5.9% of the outstanding Common Stock. Woodland Partners has sole power to vote and to dispose of 309,316 shares of Common Stock, representing approximately 1.3% of the outstanding Common Stock. Applegreen has sole power to vote and to dispose of 106,809 shares of Common Stock, representing approximately 0.5% of the outstanding Common Stock. Brookwood has sole power to vote and to dispose of 194,810 shares of Common Stock, representing approximately 0.8% of the outstanding Common Stock. (c) The following table sets forth the transactions in the securities of the Issuer by the Reporting Persons identified in Item 2 of this Schedule 13D which were effected during the prior sixty days from October 25, 2007:
Number Of Sales Price Per Shares of Common Stock Name of Shareholder Sale Date Share Sold - ------------------- --------- --------------- ---------------------- Wheatley Partners, L.P. 10/25/07 $1.75 194,280 Wheatley Foreign Partners, L.P. 10/25/07 $1.75 16,868 Wheatley Partners II, L.P. 10/25/07 $1.75 1,280,207 Woodland Venture Fund 10/25/07 $1.8717 36,500 Seneca Ventures 10/25/07 $1.8717 36,500 Brookwood Partners 10/25/07 $1.75 100,000
The sales of the shares of Common Stock of the Issuer described above were sold pursuant to open market sales. (d) No other person has the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of such securities. (e) Not applicable Page 20 of 22 SIGNATURE After reasonable inquiry and to the best of his/her/its knowledge and belief, each of the undersigned hereby certifies that the information set forth in this Schedule is true, complete and correct. Dated: November 9, 2007 WHEATLEY PARTNERS II, L.P. By: /s/ IRWIN LIEBER ---------------------------------------- Irwin Lieber, a General Partner SENECA VENTURES By: /s/ BARRY RUBENSTEIN ---------------------------------------- Barry Rubenstein, a General Partner WOODLAND VENTURE FUND By: /S/ BARRY RUBENSTEIN ---------------------------------------- Barry Rubenstein, a General Partner WOODLAND SERVICES CORP. By: /s/ BARRY RUBENSTEIN ---------------------------------------- Barry Rubenstein, President /s/ BARRY RUBENSTEIN -------------------------------------------- Barry Rubenstein /s/ IRWIN LIEBER -------------------------------------------- Irwin Lieber /s/ BARRY FINGERHUT -------------------------------------------- Barry Fingerhut /s/ MARILYN RUBENSTEIN -------------------------------------------- Marilyn Rubenstein /s/ SETH LIEBER -------------------------------------------- Seth Lieber /s/ JONATHAN LIEBER -------------------------------------------- Jonathan Lieber Page 21 of 22 WOODLAND PARTNERS By: /s/ BARRY RUBENSTEIN ----------------------------------------- Barry Rubenstein, a General Partner APPLEGREEN PARTNERS By: /s/ JONATHAN LIEBER ----------------------------------------- Jonathan Lieber, Managing General Partner BROOKWOOD PARTNERS, L.P. By: /s/ BARRY RUBENSTEIN ----------------------------------------- Barry Rubenstein, a General Partner WHEATLEY PARTNERS, L.P. By: Wheatley Partners, LLC, the General Partner By: /s/ BARRY RUBENSTEIN ----------------------------------------- Barry Rubenstein, Chief Executive Officer WHEATLEY FOREIGN PARTNERS, L.P. By: Wheatley Partners, LLC, the General Partner By: /s/ BARRY RUBENSTEIN ----------------------------------------- Barry Rubenstein, Chief Executive Officer WHEATLEY PARTNERS, LLC By: /s/ BARRY RUBENSTEIN ----------------------------------------- Barry Rubenstein, Chief Executive Officer ATTENTION: INTENTIONAL MISSTATEMENTS OR OMISSIONS OF FACT CONSTITUTE FEDERAL CRIMINAL VIOLATIONS (SEE 18 U.S.C. 1001) Page 22 of 22