--- 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 ------------------------------------------------------------------------- POLITECH -- Declan McCullagh's politics and technology mailing list You may redistribute this message freely if you include this notice. To subscribe to Politech: http://www.politechbot.com/info/subscribe.html This message is archived at http://www.politechbot.com/ Declan McCullagh's photographs are at http://www.mccullagh.org/ ------------------------------------------------------------------------- Like Politech? Make a donation here: http://www.politechbot.com/donate/ -------------------------------------------------------------------------
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