FC: More on Zero Knowledge's planned public offering

From: Declan McCullagh (declanat_private)
Date: Wed Jun 05 2002 - 10:00:55 PDT

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    Date: Wed, 05 Jun 2002 00:42:47 -0700
    To: Declan McCullagh <declanat_private>, cypherpunksat_private
    From: Greg Broiles <gbroilesat_private>
    Subject: Re: Preliminary thoughts on Zero Knowledge's planned public
       offering
    
    At 05:50 PM 6/4/2002 -0700, Declan McCullagh wrote:
    
    >>* Can$1.3 million/year of remaining cash will be eaten up by four fat 
    >>executive salaries that remain hefty, even given the dismal financial 
    >>situation. Each of the three Hill family members gets Can$270K a year, 
    >>with the CEO receiving Can$470K.
    
    Per p. 41, as of July 1 2002, the Hills' salaries will be reduced to $225K, 
    and Hevizi's (the CEO) to $300K.
    
    (which is still a lot of money, given all that they've burned through, for 
    a company in this position.)
    
    Also, the General Manager for the Enterprise Privacy Management group, Mark 
    Weidick, resigned his $338K position as of May 31 2002. Enterprise Privacy 
    Management is supposed to be a big part of their new business focus, 
    receiving 40% of the proceeds of the IPO.
    
    I get the impression that even though Stefan Brands has left ZKS, they've 
    retained an option to purchase one or more of his patents, that option 
    expiring in August.
    (cf. 
    <http://www.inet-one.com/cypherpunks/dir.2002.03.25-2002.03.31/msg00247.html>)
    
    ZKS has also been the subject of three lawsuits for wrongful termination 
    worth an aggregate of $240K, and have an ongoing dispute about a settlement 
    gone bad, where the other party is seeking $630K and ZKS is seeking $100K + 
    the return of a gift of 74,500 common shares (recently valued at around .75 
    each). Anyone want to bet the unnamed individual with the disputed 
    settlement is Brands?
    
    I've mirrored a copy of the prosepectus at <http://parrhesia.com/zks.pdf> 
    in case something tragic happens to the first copy.
    
    
    --
    Greg Broiles -- gbroilesat_private -- PGP 0x26E4488c or 0x94245961
    
    
    
    
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