FC: More on Zero Knowledge's planned public offering

[Declan McCullagh <declan () well com>]

---

Date: Wed, 05 Jun 2002 00:42:47 -0700
To: Declan McCullagh <declan () well com>, cypherpunks () lne com
From: Greg Broiles <gbroiles () parrhesia com>
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 -- gbroiles () parrhesia com -- PGP 0x26E4488c or 0x94245961




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