Family Ties - Archive
Family Ties (archived from previous PV Notes website) ParkerVision has several relationships that keep the business “in the Parker family”, or at least with close friends and Directors. We believe that the nepotism demonstrated here is detrimental to the success of the company, because it cannot make the right decisions in order to become competitive, let alone well run. We illustrate some of these relationships here.
- Until recently (we have heard that Todd Parker recently resigned from his full-time position), three of the Directors were siblings: Jeff Parker (CEO), Todd Parker (VP, Product Operations) and Stacie Wilf (nee Parker, Secretary).
- The Company leases its manufacturing and headquarters office facilities from the Chairman and Chief Executive Officer of the Company and Barbara Parker, a related party. The lease's current terms obligate the Company through February 28, 2007 at a monthly base rental payment of $23,276, with an option for renewal.
- The Company paid approximately $1,801,000 and $2,949,000, in 2002 and 2001, respectively, for patent-related legal services to a law firm, of which Robert Sterne, a Company director during 2002 and 2001, is a partner.
- The Company paid Todd Parker, a director and related party, approximately $75,000 and $34,000 for consulting services in 2002 and 2001, respectively.
- In March 2003, the Company sold 495,050 shares of its common stock in a private placement transaction to members of the Parker family, including CEO Jeffrey Parker, at a market price of $5.05 per share.
- On April 28, 2003, the Company entered into a written agreement with a corporate third party (Halmos) to conceive and develop new business opportunities for the Company. In consideration of the services to be rendered over a three-year term, the Company issued 250,000 shares of restricted common stock, under the terms of the 2000 Performance Equity Plan with an aggregate value of approximately $2,400,000, or $9.60 per share. The shares are fully vested and non-forfeitable, and they are subject to a sales limitation of a maximum of 83,334 shares per year. The $2,400,000 was capitalized and is being amortized to expense over the three-year term of the related agreement.
On March 26, 2003, the Company received $5,078,200 from the sale of an aggregate of 1,154,437 shares of its common stock in private placement. Leucadia National Corporation and another third party purchased 659,387 shares of common stock at a price of $3.91 per share. The Parker family, including CEO Jeffrey Parker, purchased 495,050 shares of common stock at the market price of $5.05 per share.