Prospectus
Supplement filed pursuant to Rule 424(b)(3)
in
connection with Registration Statement No. 333-148200
Nephros, Inc.
Prospectus
Supplement No. 1 dated August 31, 2009
(to
Prospectus dated August 25, 2009)
28,972,659 shares of common
stock
This prospectus supplement supplements
information contained in that certain prospectus, dated August 25, 2009,
relating to the offer and sale by the selling stockholders listed in the
prospectus of up to 28,972,659 shares of common stock of Nephros,
Inc. This prospectus supplement is not complete without, and may not
be delivered or used except in connection with, the original
prospectus. We will not receive any proceeds from the sale of the
shares of common stock by selling stockholders.
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Other
Events Reported in Current Report on Form 8-K
On August 31, 2009, we issued a press
release and filed a Current Report on Form 8-K announcing that we received
approval from the Office of Naval Research to expand our development of
new potable water filtration systems for military field use. The
relevant sections of the press release are set forth below:
Nephros has
been awarded a new research contract from the Office of Naval Research
(ONR) for development of a potable dual-stage military water purifying
filter. The research contract is an expansion of the Company's current ONR
contract which is being performed as part of the Marine Corps Advanced
Technology Demonstration (ATD) project. The primary objective of this
expanded research program is to select concepts and functional prototype
filter/pump units which were developed during the first phase of the project,
and further develop them into smaller field-testable devices that can be used
for military evaluation purposes. An advantage of the Nephros ultrafilter is the
removal of viruses which are not removed with commercially available
off-the-shelf microfilter devices. Such devices generally rely on a secondary
chemical disinfection step to make the water safe to drink. The expanded
contract also includes research geared toward improving membrane performance,
improving device durability, developing larger squad-level water purifier
devices, and investigating desalination filter/pump devices for emergency-use
purposes.
“Nephros
is pleased to continue its collaboration with the U.S. Military,” said Ernest
Elgin, President & CEO of Nephros. “We look forward to providing
portable DSU systems to create potable water for our troops in the field. The
Company believes that the military product development efforts will have broad
consumer applications as well.”
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Investing
in our common stock involves a high degree of risk. See “Risk
Factors” beginning on page 5 of the original prospectus.
Neither
the SEC nor any state securities commission has approved or disapproved our
securities or determined that this prospectus is truthful or
complete. It is illegal for anyone to tell you
otherwise.
The date
of this Prospectus Supplement No. 1 is August 31, 2009.