SEC Form 4
FORM 4 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940
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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
1. Name and Address of Reporting Person*
Moretti John M

(Last) (First) (Middle)
3567 BENTON STREET, SUITE 367

(Street)
SANTA CLARA CA 95051

(City) (State) (Zip)
2. Issuer Name and Ticker or Trading Symbol
DAYSTAR TECHNOLOGIES INC [ DSTI ]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
Director X 10% Owner
Officer (give title below) Other (specify below)
3. Date of Earliest Transaction (Month/Day/Year)
04/19/2012
4. If Amendment, Date of Original Filed (Month/Day/Year)
6. Individual or Joint/Group Filing (Check Applicable Line)
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 (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V Amount (A) or (D) Price
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 6. Date Exercisable and Expiration Date (Month/Day/Year) 7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Call option (obligation to sell)(1)(5) $0(2) 04/19/2012 S 1 02/18/2013 04/19/2017 Common Stock 780,746(3) $0(4) 1 D
Explanation of Responses:
1. The reporting person entered into a call option with respect to certain convertible notes of DayStar Technologies, Inc. (the "Company") owned by the reporting person. Such option may only be exercised by the buyer with 61 days prior written notice, and the closing may only occur on a date on or after April 19, 2013. In the event the reporting person converts all or a part of the convertible note into common stock of the Company, the reporting person is obligated to sell the shares of common stock he receives if he has not otherwise sold such shares at the time of exercise.
2. The maximum exercise price for any convertible note being purchased will be the amount of outstanding principal plus accrued but unpaid interest. In the event the reporting person converts the convertible note into common stock of the Company, and the buyer of the call option elects to exercise the call with respect to such shares, then the amount of interest that would have accrued on the convertible notes had they not been converted shall be added to the exercise price.
3. Represents the number of shares of common stock into which the principal amount of the note is convertible as of the date hereof.
4. No premium was, or will be, paid in connection with this call option.
5. The reported transaction may be deemed a sale of the common stock underlying the convertible note and is therefore matchable under Section 16(b) with the reporting person's deemed acquisition of common stock on January 25, 2012, with any profit recoverable by the Company.
\s\ John M. Moretti 04/23/2012
** Signature of Reporting Person Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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