December 22, 2010...Hybrid Audio LLC sues Apple, HTC and Dell over allegedly MP3-related patent...the reissue patent (application filed on 23 November 2004) and the original patent (application filed on 25 February 1997) were assigned to Aware, Inc...In the USPTO database, Aware is still listed as the assignee of the patent, (Undisclosed but discovered by fd_rox and posted on the Yahoo message board)
Feb 11, 2011 2010 10K...OFF-BALANCE SHEET ARRANGEMENTS...We do not have any arrangements with unconsolidated entities, such as entities often referred to as structured finance, special purpose entities or variable interest entities which are often established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes... (Blatant lie see Dec 22, 2010)
February 18, 2011 8-K, the Board of Directors of Aware, Inc. approved a new form of Indemnification Agreement for its directors and officers.
Oct. 27, 2011-Q3/2011 10Q...Variable Interest Entity. 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... We may receive royalties in the future if certain conditions are met.(Correcting lie from Feb 11, 2010, but still not acknowledging Hybrid Audio by name or context)
Feb 21, 2012-10K-2011...Patent Management:... The objective of our patent management operations, which we previously called patent licensing operations, is to develop patents and to license or sell them to third parties interested in acquiring such patent rights.There were no patent related fees in revenue in the years ended December 31, 2011 and 2009. There were $330,000 of such fees in services revenue for the year ended December 31, 2010 (Fee related to 4 Patents assigned to Hybrid Audio finally disclosed 2 years late?)
Hi Elitecrete, Verry good summary of events. Key issue is the Feb. 18, 2011 8K new form of indemnifation for the BOD and officers. Please note the 10K statement on off Balance Sheet arrangements was made one week before on Feb. 11, 2011. Decisions and actions were being taken (denying any off balance sheet transactions) that officers and directors were not on board with and felt they had personal liability. To placate those people Stafford had a new broader indemnifation agreement. Appears that those people were still concerened regarding liability as you saw a number of people resigned in a short period of time soon after this. My feeling is that while Aware may have D&O insurance these poeple felt it was not enough. To protect himself John Stafford Jr. has kept $75 million in the company that he can use to defend himself. I believe PWC pushed Aware to disclose the VIE and Stafford refused as it would be admitting The Feb. 11, 2011 10K was not truthful. So in the end the accountants were replaced and the issue of disclosure was solved.
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.
August 29, 2012... following a competitive selection process, the Audit Committee approved the selection of McGladrey and Pullen LLP ("McGladrey") to serve as the Company's independent registered public accounting firm for the fiscal year ending December 31, 2012
Oct 31. 2012 Q3/2012-10Q...L) Variable Interest Entity. In previous periods, we disclosed that we had a patent arrangement with a third party that we classified as a variable interest entity... iii) we may receive royalties in the future if certain conditions are met; iv) we were not the primary beneficiary of this 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 under generally accepted accounting principles, and we shall no longer classify it as such..We are unable to predict whether we will receive any meaningful income from this arrangement in future periods, because such a prediction is inherently uncertain. If this arrangement generates material income to us in future quarters, we will report such income in the quarters in which it is earned. (Translation?...Don't expect anything from HA)
Feb 12, 2013...8-K for Awares Q4 earnings...The income from a patent arrangement of $1.1 million relates to an agreement we entered into several years ago with an unaffiliated third party (hybrid Audio???) under which we assigned patents in return for royalties on proceeds from its patent monetization efforts. (Where did this money come from? Still no mention of Hybrid Audio)