Aware-Recent milestone events in chronological order
This entire situation reminds me of what Donald Rumsfeld said about "known knowns, known unknowns, and unknown unknowns". These are the 'known knowns':
Since the Staffords' took over, the net of the stock price plus special dividends has risen nicely.
The Staffords', officers, and directors own more than half the shares. They profited the most from that performance.
Dec 22, 2010...Hybrid Audio LLC sues Apple, HTC and Dell over allegedly MP3-related patent. Hybrid Audio sued 7 large tech companies for infringement of a patent assigned to them from Aware.
Feb 11, 2011 2010 10K...Staffords purposely state incorrectly in the ...OFF-BALANCE SHEET ARRANGEMENTS (section)..."We do not have any arrangements with unconsolidated entities."
Oct. 27, 2011-Q3/2011 10Q Staffords corrected mis-statement in a newly created ...Variable Interest Entity (section).... "We entered into a patent arrangement with a third party in November 2010 which has resulted in us having a variable interest in a variable interest entity." (Staffords are now proven to "bend the truth" to suit them).
August 29, 2012... the Audit Committee of the Board of Directors (the "Audit Committee") of Aware, Inc. (the "Company") dismissed PricewaterhouseCoopers LLP ("PwC") as the Company's independent registered public accounting firm.
Oct 31. 2012 Q3/2012-10Q...L) Variable Interest Entity (Section). "In previous periods, we disclosed that we had a patent arrangement with a third party that we classified as a variable interest entity...During the three months ended September 30, 2012, certain contractual provisions of the arrangement were amended. As a result, the arrangement is no longer considered a variable interest entity." (Staffords bending the truth again with the help of new auditor, McGladrey)
All 7 companies and affiliates settled with HA one by one the last being HTC in Jan of 2013 prior to trial.
Jan 25, 2013... Judge Leonard Davis orders case dismissed...Plaintiff Hybrid Audio LLC filed suit against fourteen (14) Defendants in this case. Since that time, all Defendants have been dismissed: High Tech Computer Corp.; HTC America, Inc. Exedea, Inc.; Apple,Inc, Dell, Inc. Motorola Mobility, Inc.Nokia Corporation; Nokia Inc.; Research in Motion, Ltd. Research in Motion Corporation, Samsung Electronics Co., Ltd. Samsung Electronics America, Inc;and Samsung Telecommunications America, LLC
Jan 30, 2013 we find out from fd_rox that Daphimo has assigned some patents to 'Patent troll' Intellectual Ventures.
February 8, 2013...Intellectual Ventures II v. Windstream et. al.,.. Intellectual Ventures v. AT&T et. al,, Intellectual Ventures II v. CenturyLink et. al...All filed in West Texas District Court. IV alleges infringement of 19 patents. 14 of which were assigned from Daphimo.
Feb 12, 2013...8-K "Aware received income from a patent arrangement of $1.1 million relate to an agreement entered into several years ago with an unaffiliated third party"
Feb 12, 2013...8-K "Based on information provided to us by the third party, we may receive additional income from this arrangement in the first quarter of 2013. We estimate that income could be in the range of $400,000 to $800,000 depending on a variety of factors"
Feb 12, 2013...8-K.."Beyond the first quarter of 2013, we are unable to predict how much more income we might receive from this arrangement, if any, because we do not know whether any patent monetization efforts by the third party will be successful."
The above events have all been addressed on the Yahoo Message board but I thought I'd post this in chronological order and in one place for future reference and to bring prospective new shareholders up to speed.
Many milestones events are missing from this chronology but I have them in a seperate document on my HD. I thought these were the most relevant to help us decipher what course of action to follow from here.
One issue that leaps out at me is the 'Variable Interest Entity'. It has been addressed 4 times above. After much prodding by letters and phone calls for disclosure, they first deny any OFF-BALANCE SHEET ARRANGEMENTS , then they admit to a 'Variable Interest Entity', then they say there is no 'Variable Interest Entity', now it's back and they call it a 'patent arrangement'.
I don't even know where to begin with the "known unknowns, and unknown unknowns". Just killing time waiting for the next 'short story based on historical events' (2012 10K) to be filed. I hope the author finally puts all these into one novel that has a happy ending.