Schedule 13G Amendment No. 2


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
                   
 
SCHEDULE 13G

Under the Securities Exchange Act of 1934
(Amendment No. 2)
 
                         Nephros, Inc.                       
(Name of Issuer)
 
    Common Stock, par value $0.001 per share    
(Title of Class of Securities)
 
       640671103       
(CUSIP Number)
 
                  December 31, 2006                 
(Date of Event Which Requires Filing of this Statement)
 
Check the appropriate box to designate the rule pursuant to which this Schedule is filed:
 
¨ Rule 13d-1(b)
¨ Rule 13d-1(c)
ý Rule 13d-1(d)


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SCHEDULE 13G
 
CUSIP No. 640671103
 
 
1)
 
 
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
 
Eric A. Rose, M.D.
 
2)
 
 
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
 
 
(a) ¨
(b) ¨
 
3)
 
 
SEC USE ONLY
 
 
4)
 
 
CITIZENSHIP OR PLACE OF ORGANIZATION
 
United States
 
NUMBER
OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON
WITH
 
5)
 
 
SOLE VOTING POWER
 
905,192*
 
6)
 
 
SHARED VOTING POWER
 
0
 
7)
 
 
SOLE DISPOSITIVE POWER
 
905,192*
 
8)
 
 
SHARED DISPOSITIVE POWER
 
0
 
9)
 
 
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 
905,192*
 
10)
 
 
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
¨
 
11)
 
 
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
 
7.3%
 
12)
 
 
TYPE OF REPORTING PERSON
 
IN

 
* Includes 160,041 shares of the Issuer’s common stock issuable upon exercise of options granted to Dr. Rose under the Issuer's 2000 and 2004 Equity Incentive Plans, which have vested or are scheduled to vest within 60 days of December 31, 2006.
 
 

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Schedule 13G
 
Item 1(a).    Name of Issuer:
 
         Nephros, Inc.
 
Item 1(b).    Address of Issuer’s Principal Executive Offices:
 
        3960 Broadway
        New York, New York 10032

Item 2(a).    Name of Person Filing: Eric A. Rose, M.D.
 
Item 2(b).    Address of Principal Business Office or, if None, Residence: 
 
     177 Fort Washington Ave.
     7th Floor, Room 435
     New York, New York 10032
 
Item 2(c).    Citizenship: United States
 
Item 2(d).    Title of Class of Securities:
 
     Common Stock, par value $.001 per share
 
Item 2(e).    CUSIP Number: 640671103
 
Item 3.     If this statement is filed pursuant to §§ 240.13d-1(b), or 240.13d-2(b) or (c), check whether the person filing is a:
 
 
(a)
¨
Broker or Dealer Registered Under Section 15 of the Act (15 U.S.C. 78o)
 
 
(b)
¨
Bank as defined in section 3(a)(6) of the Act (15 U.S.C. 78c)
 
 
(c)
¨
Insurance Company as defined in section 3(a)(19) of the Act (15 U.S.C. 78c)
 
 
(d)
¨
Investment Company registered under section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8)
 
 
(e)
¨
An investment adviser in accordance with § 240.13d-1(b)(1)(ii)(E)
 
 
(f)
¨
An employee benefit plan or endowment fund in accordance with § 240.13d-1(b)(1)(ii)(F)
 
 
(g)
¨
A parent holding company or control person in accordance with §240.13d-1(b)(ii)(G)
 
 
(h)
¨
A savings association as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813)
 
 
(i)
¨
A church plan that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3)
 
 
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(j)
¨
Group, in accordance with §240.13d-1(b)(ii)(J)
 
Item 4.    Ownership.
 
 
(a)
  
Amount beneficially owned: 905,192*
 
 
(b)
  
Percent of class: 7.3%
 
 
(c)
  
Number of shares as to which such person has:
 
 
(i)
Sole power to vote or to direct the vote: 905,192*
 
 
(ii)
Shared power to vote or to direct the vote: None
 
 
(iii)
Sole power to dispose or to direct the disposition of: 905,192*
 
 
(iv)
Shared power to dispose or to direct the disposition of: None
 
* Includes 160,041 shares of the Issuer’s common stock issuable upon exercise of options granted to Dr. Rose under the Issuer's 2000 and 2004 Equity Incentive Plans, which have vested or are scheduled to vest within 60 days of December 31, 2006.
 
Item 5.    Ownership of Five Percent or Less of a Class.
 
    Not applicable
 
Item 6.    Ownership of More than Five Percent on Behalf of Another Person.
 
    Not applicable
 
Item 7.    Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on by the Parent Holding Company.
 
    Not applicable
 
Item 8.    Identification and Classification of Members of the Group.
 
    Not applicable
 
Item 9.   Notice of Dissolution of Group.
 
   Not applicable
 
Item 10.    Certification.
 
       Not applicable
 
 
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SIGNATURE
 
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
 

            February 9, 2007                
            Date
 
            /s/ Eric A. Rose, M.D.      
        Eric A. Rose, M.D.
 
 
 
 
 
 
 
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