2023 Q1 Form 10-K Financial Statement

#000143774923008226 Filed on March 28, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $25.00M $925.0K $925.0K
YoY Change 542.36%
Cost Of Revenue $43.00K $2.000K $10.00K
YoY Change 1333.33% -50.0% 100.0%
Gross Profit $24.96M $923.0K $915.0K
YoY Change -832000.0% -23175.0% 558.27%
Gross Profit Margin 99.83% 99.78% 98.92%
Selling, General & Admin $12.09M $2.510M $7.773M
YoY Change 525.19% 29.65% -3.89%
% of Gross Profit 48.42% 271.94% 849.51%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $66.00K $73.00K $311.0K
YoY Change -20.48% -16.09% -15.49%
% of Gross Profit 0.26% 7.91% 33.99%
Operating Expenses $12.09M $2.510M $7.773M
YoY Change 525.19% 29.65% -3.89%
Operating Profit $12.87M -$1.587M -$6.858M
YoY Change -764.88% -18.2% -13.72%
Interest Expense $106.0K -$76.00K $324.0K
YoY Change 70.97% 105.41% 29.08%
% of Operating Profit 0.82%
Other Income/Expense, Net $243.0K -$3.682M -$2.955M
YoY Change -89.29% 167.59% -32.55%
Pretax Income $13.12M -$5.345M -$9.813M
YoY Change 3850.3% 59.41% -20.41%
Income Tax $0.00 $0.00
% Of Pretax Income 0.0%
Net Earnings $13.12M -$5.345M -$9.800M
YoY Change 3850.3% 59.41% -20.33%
Net Earnings / Revenue 52.46% -577.84% -1059.46%
Basic Earnings Per Share $0.16 -$0.13
Diluted Earnings Per Share $0.11 -$0.07 -$0.13
COMMON SHARES
Basic Shares Outstanding 84.52M 79.10M 78.40M
Diluted Shares Outstanding 121.7M 78.40M

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $135.0K $109.0K $109.0K
YoY Change -31.82% -89.42% -89.42%
Cash & Equivalents $135.0K $100.0K $109.0K
Short-Term Investments
Other Short-Term Assets $24.00K $30.00K $274.0K
YoY Change -7.69% 20.0% -54.26%
Inventory
Prepaid Expenses $226.0K $244.0K
Receivables
Other Receivables
Total Short-Term Assets $14.31M $383.0K $383.0K
YoY Change 1982.97% -76.49% -76.49%
LONG-TERM ASSETS
Property, Plant & Equipment $3.000K $4.000K $4.000K
YoY Change -57.14% -42.86% -71.43%
Goodwill
YoY Change
Intangibles $1.252M $1.359M
YoY Change -26.18% -23.87%
Long-Term Investments
YoY Change
Other Assets $4.000K $5.000K $5.000K
YoY Change -76.47% -73.68% -58.33%
Total Long-Term Assets $1.259M $1.368M $1.368M
YoY Change -26.8% -24.46% -24.46%
TOTAL ASSETS
Total Short-Term Assets $14.31M $383.0K $383.0K
Total Long-Term Assets $1.259M $1.368M $1.368M
Total Assets $15.57M $1.751M $1.751M
YoY Change 546.82% -49.1% -49.1%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $810.0K $901.0K $901.0K
YoY Change -14.19% 27.62% 27.62%
Accrued Expenses $580.0K $592.0K $167.0K
YoY Change -17.5% -30.02% -80.26%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $1.505M $764.0K $764.0K
YoY Change 1501.06% 712.77% 712.77%
Total Short-Term Liabilities $2.895M $2.257M $2.257M
YoY Change 66.28% 37.12% 37.12%
LONG-TERM LIABILITIES
Long-Term Debt $10.65M $9.475M $9.475M
YoY Change 33.03% 3.05% 3.05%
Other Long-Term Liabilities $38.90M $40.71M $40.71M
YoY Change 7.42% 8.91%
Total Long-Term Liabilities $49.55M $50.18M $50.18M
YoY Change 12.06% 7.76% 7.76%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.895M $2.257M $2.257M
Total Long-Term Liabilities $49.55M $50.18M $50.18M
Total Liabilities $52.45M $52.44M $52.44M
YoY Change 14.11% 8.76% 8.76%
SHAREHOLDERS EQUITY
Retained Earnings -$430.1M -$443.2M
YoY Change -0.69% 2.26%
Common Stock $845.0K $812.0K
YoY Change -99.78% -99.79%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$36.88M -$50.69M -$50.69M
YoY Change
Total Liabilities & Shareholders Equity $15.57M $1.751M $1.751M
YoY Change 546.82% -49.1% -49.1%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income $13.12M -$5.345M -$9.800M
YoY Change 3850.3% 59.41% -20.33%
Depreciation, Depletion And Amortization $66.00K $73.00K $311.0K
YoY Change -20.48% -16.09% -15.49%
Cash From Operating Activities $13.20M -$603.0K -$3.000M
YoY Change -1566.67% -22.89% -61.04%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00 $4.000K
YoY Change -100.0% 33.33%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities $0.00 $0.00 -$4.000K
YoY Change -100.0% 33.33%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $42.00K $91.00K
YoY Change 75.0% -9.0%
Cash From Financing Activities $797.0K 379.0K $2.042M
YoY Change 1892.5% -64.01% -71.27%
NET CHANGE
Cash From Operating Activities $13.20M -603.0K -$3.000M
Cash From Investing Activities $0.00 0.000 -$4.000K
Cash From Financing Activities $797.0K 379.0K $2.042M
Net Change In Cash $13.95M -224.0K -$921.0K
YoY Change -1776.8% -182.96% 54.27%
FREE CASH FLOW
Cash From Operating Activities $13.20M -$603.0K -$3.000M
Capital Expenditures $0.00 $0.00 $4.000K
Free Cash Flow $13.20M -$603.0K -$3.004M
YoY Change -1566.67% -22.79% -61.0%

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-921000 usd
CY2021 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-597000 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
1030000 usd
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
1627000 usd
CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
109000 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
1030000 usd
CY2022 us-gaap Interest Paid Net
InterestPaidNet
24000 usd
CY2021 us-gaap Interest Paid Net
InterestPaidNet
17000 usd
CY2022 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
0 usd
CY2021 us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
0 usd
CY2022 us-gaap Use Of Estimates
UseOfEstimates
<p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;"><b>Use of Estimates in the Preparation of Financial Statements </b></p> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;">The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.  The more significant estimates made by us include projected future cash flows and risk-adjusted discount rates for estimating the fair value of our contingent payment obligations, the volatility and estimated lives of share-based awards used in the estimate of the fair market value of share-based compensation, the assessment of recoverability of long-lived assets, the amortization periods for intangible and long-lived assets, and the valuation allowance for deferred taxes.  Actual results could differ from the estimates made.  We periodically evaluate estimates used in the preparation of the financial statements for continued reasonableness.  Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation.</p>
CY2022 us-gaap Net Income Loss
NetIncomeLoss
-9800000 usd
CY2022 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-3000000.0 usd
CY2022Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-443200000 usd
CY2022Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
100000 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
14319000 usd
CY2022 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
67460000
CY2021 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
53718000
CY2022 us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
930000 usd
CY2021 us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
140000 usd
CY2022Q4 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
0 usd
CY2022Q4 prkr Prepaid Services
PrepaidServices
202000 usd
CY2021Q4 prkr Prepaid Services
PrepaidServices
523000 usd
CY2022Q4 us-gaap Prepaid Insurance
PrepaidInsurance
25000 usd
CY2021Q4 us-gaap Prepaid Insurance
PrepaidInsurance
23000 usd
CY2022Q4 prkr Prepaid Licenses Software Tools And Support
PrepaidLicensesSoftwareToolsAndSupport
15000 usd
CY2021Q4 prkr Prepaid Licenses Software Tools And Support
PrepaidLicensesSoftwareToolsAndSupport
16000 usd
CY2022Q4 us-gaap Other Prepaid Expense Current
OtherPrepaidExpenseCurrent
2000 usd
CY2021Q4 us-gaap Other Prepaid Expense Current
OtherPrepaidExpenseCurrent
12000 usd
CY2022Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
244000 usd
CY2021Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
574000 usd
CY2021Q4 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
14755000 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
12960000 usd
CY2021Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
12970000 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
1359000 usd
CY2021Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
1785000 usd
CY2022 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
300000 usd
CY2021 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
350000 usd
CY2022 us-gaap Gain Loss On Disposition Of Intangible Assets
GainLossOnDispositionOfIntangibleAssets
-100000 usd
CY2021 us-gaap Gain Loss On Disposition Of Intangible Assets
GainLossOnDispositionOfIntangibleAssets
-30000.00 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths
256000 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo
243000 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
207000 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
140000 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Amortization Expense Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseYearFive
122000 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Amortization Expense After Year Five
FiniteLivedIntangibleAssetsAmortizationExpenseAfterYearFive
391000 usd
CY2022Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
1359000 usd
CY2022Q4 prkr Accrued Advances Current And Noncurrent
AccruedAdvancesCurrentAndNoncurrent
425000 usd
CY2021Q4 prkr Accrued Advances Current And Noncurrent
AccruedAdvancesCurrentAndNoncurrent
500000 usd
CY2022Q4 us-gaap Interest Payable Current And Noncurrent
InterestPayableCurrentAndNoncurrent
56000 usd
CY2021Q4 us-gaap Interest Payable Current And Noncurrent
InterestPayableCurrentAndNoncurrent
28000 usd
CY2022Q4 us-gaap Other Accrued Liabilities Current And Noncurrent
OtherAccruedLiabilitiesCurrentAndNoncurrent
5000 usd
CY2021Q4 us-gaap Other Accrued Liabilities Current And Noncurrent
OtherAccruedLiabilitiesCurrentAndNoncurrent
27000 usd
CY2022Q4 us-gaap Accrued Liabilities Current And Noncurrent
AccruedLiabilitiesCurrentAndNoncurrent
486000 usd
CY2021Q4 us-gaap Accrued Liabilities Current And Noncurrent
AccruedLiabilitiesCurrentAndNoncurrent
555000 usd
CY2022 us-gaap Operating Lease Cost
OperatingLeaseCost
40000.00 usd
CY2022 us-gaap Operating Lease Payments
OperatingLeasePayments
193000 usd
CY2021 us-gaap Operating Lease Payments
OperatingLeasePayments
181000 usd
CY2022 us-gaap Proceeds From Lease Payments
ProceedsFromLeasePayments
120000 usd
CY2021 us-gaap Proceeds From Lease Payments
ProceedsFromLeasePayments
44000 usd
CY2022Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P0Y9M18D
CY2021Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P0Y10M24D
CY2021 prkr Operating Sublease Weighted Average Remaining Lease Term
OperatingSubleaseWeightedAverageRemainingLeaseTerm
P0Y10M24D
CY2022Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.162 pure
CY2021Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.122 pure
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
4000 usd
CY2022Q4 prkr Lessee Operating Lease Liability Payments Due After Year Two
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearTwo
0 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
4000 usd
CY2022Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
-0 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
4000 usd
CY2022Q4 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
4000 usd
CY2022Q4 us-gaap Operating Lease Liability Noncurrent
OperatingLeaseLiabilityNoncurrent
0 usd
CY2022Q4 us-gaap Long Term Debt Maturities Repayments Of Principal In Next Twelve Months
LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths
139000 usd
CY2022Q4 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Two
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo
133000 usd
CY2022Q4 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Three
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree
139000 usd
CY2022Q4 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Four
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour
144000 usd
CY2022Q4 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Five
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive
57000 usd
CY2022Q4 us-gaap Long Term Debt
LongTermDebt
612000 usd
CY2021 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
3368000 usd
CY2022 us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
67000 usd
CY2021 us-gaap Income Tax Reconciliation Other Adjustments
IncomeTaxReconciliationOtherAdjustments
-249000 usd
CY2022Q4 us-gaap Convertible Debt
ConvertibleDebt
4538000 usd
CY2021Q4 us-gaap Convertible Debt
ConvertibleDebt
2895000 usd
CY2022Q4 us-gaap Convertible Debt Current
ConvertibleDebtCurrent
625000 usd
CY2021Q4 us-gaap Convertible Debt Current
ConvertibleDebtCurrent
0 usd
CY2022Q4 us-gaap Convertible Debt Noncurrent
ConvertibleDebtNoncurrent
3913000 usd
CY2021Q4 us-gaap Convertible Debt Noncurrent
ConvertibleDebtNoncurrent
2895000 usd
CY2022 us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;"><em style="font: inherit;">10.</em> <span style="text-decoration: underline; ">Contingent Payment Obligations</span></p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;"> </p> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;"><b>Secured Contingent Payment Obligation</b></p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;"> </p> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;">The following table provides a reconciliation of our secured contingent payment obligation measured at estimated fair market value for the years ended <em style="font: inherit;"> December 31, 2022 </em>and <em style="font: inherit;">2021</em>, respectively (in thousands):</p> <hr style="height: 3px; color: #000000; background-color: #000000; width: 100%; border: none; margin: 3pt 0"/> <table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 11pt; font-family: Times New Roman; text-indent: 0px;"><tbody><tr style="background-color: rgb(255, 255, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 11pt;"> </td><td style="font-family: Times New Roman; font-size: 11pt; padding-bottom: 1px;"> </td><td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; text-align: center; margin: 0pt;"><em style="font: inherit;">2022</em></p> </td><td style="font-family: Times New Roman; font-size: 11pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td><td style="font-family: Times New Roman; font-size: 11pt; padding-bottom: 1px;"> </td><td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; text-align: center; margin: 0pt;"><em style="font: inherit;">2021</em></p> </td><td style="font-family: Times New Roman; font-size: 11pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td></tr> <tr style="background-color: rgb(204, 238, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 11pt; width: 70%;"> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;">Secured contingent payment obligation, beginning of year</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt;">37,372</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt;">33,057</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt;"> </td></tr> <tr style="background-color: rgb(255, 255, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 11pt;"> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;">Change in fair value</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">3,336</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; border-bottom: 1px solid rgb(0, 0, 0); margin-left: 0pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">4,315</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; border-bottom: 1px solid rgb(0, 0, 0); margin-left: 0pt;"> </td></tr> <tr style="background-color: rgb(204, 238, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 11pt;"> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;">Secured contingent payment obligation, end of year</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">40,708</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; border-bottom: 3px double rgb(0, 0, 0); margin-left: 0pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">37,372</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; border-bottom: 3px double rgb(0, 0, 0); margin-left: 0pt;"> </td></tr> </tbody></table> <hr style="height: 3px; color: #000000; background-color: #000000; width: 100%; border: none; margin: 3pt 0"/> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;"> </p> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;">Our secured contingent payment obligation represents the estimated fair value of our repayment obligation to Brickell Key Investments, LP (“Brickell”) under a <em style="font: inherit;"> February 2016 </em>funding agreement, as amended from time to time (the “CPIA”).  To date, we have received aggregate proceeds of $18 million in exchange for Brickell’s right to reimbursement and compensation from gross proceeds resulting from patent enforcement and other patent monetization actions.  No proceeds were received from Brickell in <em style="font: inherit;">2022</em> or <em style="font: inherit;">2021.</em>  To date, we have repaid an aggregate of $3.3 million under the CPIA from patent license and settlement proceeds.</p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;"> </p> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;">Brickell is entitled to priority payment of 100% of proceeds received by us, after reimbursement of out-of-pocket expenses and legal contingent fees, from all patent-related actions until such time that Brickell has been paid its remaining principal of approximately $14.7 million.  Thereafter, Brickell is entitled to a significant portion of remaining proceeds from all patent-related actions until such time that Brickell has been repaid its minimum return.  The minimum return is determined as a multiple of the funded amount that increases over time.  The estimated minimum return due to Brickell was approximately $56.9 million and $48.8 million as of <em style="font: inherit;"> December 31, 2022 </em>and <em style="font: inherit;">2021</em>, respectively.  In addition, Brickell is entitled to a pro rata portion of proceeds from specified legal actions to the extent aggregate proceeds from those actions exceed the minimum return.</p> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;"> </p> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;">Brickell holds a senior security interest in the majority of our assets until such time as the specified minimum return is paid, in which case, the security interest will be released except with respect to the patents and proceeds related to specific legal actions.  The security interest is enforceable by Brickell in the event that we are in default under the agreement which would occur if (i) we fail, after notice, to pay proceeds to Brickell, (ii) we become insolvent or insolvency proceedings are commenced (and <em style="font: inherit;">not</em> subsequently discharged) with respect to us, (iii) our creditors commence actions against us (which are <em style="font: inherit;">not</em> subsequently discharged) that affect our material assets, (iv) we, without Brickell’s consent, incur indebtedness other than immaterial ordinary course indebtedness, or (v) there is an uncured non-compliance of our obligations or misrepresentations under the agreement.  As of <em style="font: inherit;"> December 31, 2022</em>, we are in compliance with our obligations under this agreement.</p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;"> </p> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;">In addition, in the event of a change in control of the Company, Brickell has the right to be paid its return as defined under the CPIA based on the transaction price for the change in control event.</p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;"> </p> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;">We have elected to measure our secured contingent payment obligation at its estimated fair value based on probability-weighted estimated cash outflows, discounted back to present value using a discount rate determined in accordance with accepted valuation methods (see Note <em style="font: inherit;">11</em>). The secured contingent payment obligation is remeasured to fair value at each reporting period with changes recorded in the consolidated statements of comprehensive loss until the contingency is resolved.</p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;"> </p> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;"><b>Unsecured Contingent Payment Obligations</b></p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;"> </p> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;">The following table provides a reconciliation of our unsecured contingent payment obligations, measured at estimated fair market value, for the years ended <em style="font: inherit;"> December 31, 2022 </em>and <em style="font: inherit;">2021</em>, respectively (in thousands):</p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;"> </p> <hr style="height: 3px; color: #000000; background-color: #000000; width: 100%; border: none; margin: 3pt 0"/> <table border="0" cellpadding="0" cellspacing="0" class="finTable" style="width: 100%; font-size: 11pt; font-family: Times New Roman; text-indent: 0px;"><tbody><tr style="background-color: rgb(255, 255, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 11pt;"> </td><td style="font-family: Times New Roman; font-size: 11pt;"> </td><td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; text-align: center; margin: 0pt;"><em style="font: inherit;">2022</em></p> </td><td style="font-family: Times New Roman; font-size: 11pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td><td style="font-family: Times New Roman; font-size: 11pt;"> </td><td colspan="2" style="text-align: center; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; text-align: center; margin: 0pt;"><em style="font: inherit;">2021</em></p> </td><td style="font-family: Times New Roman; font-size: 11pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td></tr> <tr style="background-color: rgb(204, 238, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 11pt; width: 70%;"> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;">Unsecured contingent payment obligations, beginning of period</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt;">5,691</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt;">5,222</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt;"> </td></tr> <tr style="background-color: rgb(255, 255, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 11pt;"> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;">Issuance of contingent payment rights</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt;"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt;">-</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt;"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt;">412</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt;"> </td></tr> <tr style="background-color: rgb(204, 238, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 11pt;"> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;">Change in fair value</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; padding-bottom: 1px;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(602</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">)</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; padding-bottom: 1px;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">57</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td></tr> <tr style="background-color: rgb(255, 255, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 11pt;"> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;">Unsecured contingent payment obligations, end of period</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">5,089</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; border-bottom: 3px double rgb(0, 0, 0); margin-left: 0pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">5,691</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; border-bottom: 3px double rgb(0, 0, 0); margin-left: 0pt;"> </td></tr> </tbody></table> <hr style="height: 3px; color: #000000; background-color: #000000; width: 100%; border: none; margin: 3pt 0"/> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;"> </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 11pt; margin: 0pt; text-align: left;"> </p> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;">Our unsecured contingent payment obligations represent amounts payable to others from future patent-related proceeds including (i) a termination fee due to a litigation funder (“Termination Fee”) and (ii) contingent payment rights (“CPRs”) issued to accredited investors primarily in connection with equity financings.  We have elected to measure these unsecured contingent payment obligations at their estimated fair value based on probability-weighted estimated cash outflows, discounted back to present value using a discount rate determined in accordance with accepted valuation methods.  The unsecured contingent payment obligations will be remeasured to fair value at each reporting period with changes recorded in the consolidated statements of comprehensive loss until the contingency is resolved (see Note <em style="font: inherit;">11</em>).</p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;"> </p> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;">The Termination Fee is a result of $1.0 million in advances received under a letter agreement with a <em style="font: inherit;">third</em>-party funder.  Based on the terms of the letter agreement, if a final funding arrangement was <em style="font: inherit;">not</em> executed by <em style="font: inherit;"> March 31, 2020, </em>we would be obligated to pay, from future patent-related proceeds, an aggregate termination payment equal to <em style="font: inherit;">five</em> times the advances received, or approximately $5.0 million.  We did <em style="font: inherit;">not</em> consummate a funding agreement and accordingly the advances were recorded as an unsecured contingent payment obligation at <em style="font: inherit;"> March 31, 2020, </em>when the Termination Fee obligation was incurred.  As of <em style="font: inherit;"> December 31, 2022</em>, the estimated fair value of unsecured contingent payment obligations related to the Termination Fee is $2.4 million.</p> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;"> </p> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;">The CPRs represent the estimated fair value of rights provided to accredited investors who purchased shares of our common stock in <em style="font: inherit;">2020</em> and <em style="font: inherit;">2021</em> and the fair value of a right issued to a <em style="font: inherit;">third</em>-party in connection with a service agreement during the year ended <em style="font: inherit;"> December 31, 2020.  </em>During the year ended <em style="font: inherit;"> December 31, 2021</em>, we received aggregate proceeds of $1.1 million from the sale of common stock with contingent payment rights, of which approximately $0.4 million was allocated to the CPRs.  No sales of common stock with contingent payment rights were completed during the year ended <em style="font: inherit;"> December 31, 2022</em>.  The terms of the CPRs provide that we will pay each investor an allocated portion of our net proceeds from patent-related actions, after taking into account fees and expenses payable to law firms representing us and amounts payable to Brickell.  The investors’ allocated portion of net proceeds will be determined by multiplying the net proceeds recovered by us (up to $10 million) by the quotient of such investors’ subscription amount divided by $10 million, up to an amount equal to each investor’s subscription amount, or an aggregate of $5.8 million.  As of <em style="font: inherit;"> December 31, 2022</em>, the estimated fair value of our unsecured contingent payment obligations related to the CPRs is $2.7 million.</p>
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