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
    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.
    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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