ParkerVision Reports Second Quarter 2019 Results; Touts Litigation Financing of its IP Claims for Reduction in Operating Costs
JACKSONVILLE, FL / ACCESSWIRE / August 14, 2019 / ParkerVision, Inc. (PRKR), a developer and marketer of technologies and products for wireless applications, today announced results for the three and six months ended June 30, 2019.
Second Quarter 2019 Summary and Recent Developments
- Louis Freeh and Freeh Sporkin & Sullivan LLP joined the ParkerVision litigation team in June 2019.
- Freeh, former federal judge and FBI Director, has been admitted as the Company’s counsel alongside Mintz Levin and Mckool Smith in the Company’s two district court patent infringement cases in Florida.
- The District Court in the Middle District of Florida (Jacksonville division) issued an order denying Apple’s motion for summary judgment in the pending patent litigation against Qualcomm and Apple and also issued its claim construction (Markman) order, in which the Court adopted the Company’s proposed construction for two terms and the “plain and ordinary meaning” on the remaining terms.
- A case management schedule has been submitted to the court with a proposed trial date in August 2020.
- The District Court for the Middle District of Florida (Orlando division) granted the Company’s proposed selection of patent claims from four asserted patents and denied Qualcomm’s request to limit the claims and patents, including claims that survived Qualcomm’s validity challenges through Inter Partes Review (“IPR”).
- The court also agreed that the Company may elect to pursue accused products that were at issue at the time the case was stayed, as well as new products that were released by Qualcomm during the pendency of the stay.
- A case management schedule has been submitted to the court with a proposed trial date in December 2020.
- The Company has withdrawn its pursuit of appellate actions in Germany.
- The Company declined to appeal the April 2019 decision by the District Court of Munich Germany that Apple does not infringe the Company’s German ‘853 patent.
- The Company recently withdrew its appeal of the October 2018 decision by the Federal Patent Court in Munich that ruled the Company’s German ‘831 patent is invalid.
Second Quarter and First Half Financial Results
- Net loss for the second quarter of 2019 was $1.6 million, or $0.05 per common share, compared to a $4.5 million net loss, or $0.18 per common share, for the second quarter of 2018.
- Net loss for the first half of 2019 was $3.7 million, or $0.12 per common share, compared to an $8.8 million net loss, or $0.39 per common share, for the first half of 2018.
- Cash used for operations decreased approximately 68% in the second quarter of 2019 compared to the same period in 2018 as a result of the Company’s cost reduction measures.
- The Company sold $1.64 million in five-year, 8% convertible notes during the first half of 2019. Of this amount, $1.3 million have a fixed conversion price of $0.25 per share and $0.34 million have a fixed conversion price of $0.10 per share. The majority of the proceeds were used to finance operations, with $0.15 million used for retention payments to legal counsel engaged to assist in a wide range of litigation related activities.
Jeffrey Parker, Chairman and Chief Executive Officer, commented, “We are pleased with the recent decisions from the two district courts in Florida and are looking forward to having trial dates set in both of those cases. Our decisions to abandon our appellate actions in Germany were made based on the lengthy timeframe that this process requires, and our belief that the best return for our shareholders and the fairest compensation for the unauthorized use of our technologies can be achieved by focusing our resources on the two U.S. district court actions.”
Mr. Parker continued, “We have significantly reduced operating costs over the past year, and we believe those reductions, paired with additional litigation financing for the completion of our cases in Florida, will enable us to see these cases through to conclusion. Our longer-term goal is to rebuild ParkerVision’s innovative culture and to continue to bring new solutions to the challenges of a wireless world.”
About ParkerVision
ParkerVision, Inc. has designed and developed proprietary radio-frequency (RF) technologies which enable advanced wireless solutions for current and next generation wireless communication products. ParkerVision is engaged in a number of patent enforcement actions to protect patented rights that it believes are broadly infringed by others. For more information, please visit www.parkervision.com. (PRKR-I)
Safe Harbor Statement
This press release contains forward-looking information. Readers are cautioned not to place undue reliance on any such forward-looking statements, each of which speaks only as of the date made. Such statements are subject to certain risks and uncertainties which are disclosed in the Company’s SEC reports, including the Form 10-K for the year ended December 31, 2018 and the Forms 10-Q for the quarters ended March 31 and June 30, 2019. These risks and uncertainties could cause actual results to differ materially from those currently anticipated or projected.
Contact: Cindy Poehlman Chief Financial Officer ParkerVision, Inc. 904-732-6100 cpoehlman@parkervision.com
ParkerVision, Inc. Balance Sheet Highlights
| (in thousands) | (unaudited) June 30, 2019 | December 31, 2018 | ||||||
| Cash and cash equivalents | $ | 63 | $ | 1,527 | ||||
| Prepaid expenses | 637 | 538 | ||||||
| Accounts receivable and other current assets | 51 | 122 | ||||||
| Finished goods inventories | 58 | 98 | ||||||
| Property and equipment, net | 96 | 129 | ||||||
| Operating lease right-of-use assets | 364 | – | ||||||
| Intangible assets & other | 3,357 | 3,917 | ||||||
| Total assets | 4,626 | 6,331 | ||||||
| Accounts payable and other accrued expenses | 2,810 | 1,833 | ||||||
| Operating lease liabilities, current portion | 264 | 86 | ||||||
| Notes payable, current portion | 1,933 | 2,437 | ||||||
| Long-term liabilities | 28,305 | 27,285 | ||||||
| Shareholders’ deficit | (28,686 | ) | (25,310 | ) | ||||
| Total liabilities and shareholders’ deficit | $ | 4,626 | $ | 6,331 | ||||
ParkerVision, Inc. Summary of Results of Operations (unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| (in thousands, except per share amounts) | June 30, | June 30, | ||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Product revenue | $ | 25 | $ | 38 | $ | 35 | $ | 115 | ||||||||
| Cost of sales | (25 | ) | (31 | ) | (35 | ) | (84 | ) | ||||||||
| Write down of obsolete inventory | – | (42 | ) | – | (42 | ) | ||||||||||
| Gross margin | – | (35 | ) | – | (11 | ) | ||||||||||
| Research and development expenses | – | 1,001 | 334 | 1,875 | ||||||||||||
| Selling, general and administrative expenses | 1,851 | 2,902 | 4,007 | 5,879 | ||||||||||||
| Total operating expenses | 1,851 | 3,903 | 4,341 | 7,754 | ||||||||||||
| Interest and other income (expense) | (76 | ) | (18 | ) | (138 | ) | (32 | ) | ||||||||
| Change in fair value of contingent payment obligation | 365 | (538 | ) | 823 | (987 | ) | ||||||||||
| Total interest and other | 289 | (556 | ) | 685 | (1,019 | ) | ||||||||||
| Net loss | $ | (1,562 | ) | $ | (4,494 | ) | $ | (3,656 | ) | $ | (8,784 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.05 | ) | $ | (0.18 | ) | $ | (0.12 | ) | $ | (0.39 | ) | ||||
| Weighted average shares outstanding | 30,888 | 24,564 | 30,042 | 22,672 | ||||||||||||
ParkerVision, Inc. Condensed Consolidated Statements of Cash Flows (unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| (in thousands) | June 30, | June 30, | ||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Net cash used in operating activities | $ | (877 | ) | $ | (2,775 | ) | $ | (2,550 | ) | $ | (6,126 | ) | ||||
| Net cash provided by (used in) investing activities | – | 2 | 6 | 17 | ||||||||||||
| Net cash provided by (used in) financing activities | 565 | 2,602 | 1,080 | 4,854 | ||||||||||||
| Net decrease in cash and cash equivalents | (312 | ) | (171 | ) | (1,464 | ) | (1,255 | ) | ||||||||
| Cash and cash equivalents – beginning of period | 375 | 270 | 1,527 | 1,354 | ||||||||||||
| Cash and cash equivalents – end of period | $ | 63 | $ | 99 | $ | 63 | $ | 99 | ||||||||
SOURCE: ParkerVision, Inc.
