2024 Q2 Form 10-Q Financial Statement

#000143774924016614 Filed on May 14, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024 Q1
Revenue $0.00 $0.00
YoY Change -100.0%
Cost Of Revenue $58.00K $59.00K
YoY Change -7.94% 37.21%
Gross Profit -$58.00K -$59.00K
YoY Change -7.94% -100.24%
Gross Profit Margin
Selling, General & Admin $683.0K $773.0K
YoY Change -39.29% -93.6%
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $58.00K $60.00K
YoY Change -10.77% -9.09%
% of Gross Profit
Operating Expenses $683.0K $773.0K
YoY Change -39.29% -93.6%
Operating Profit -$741.0K -$832.0K
YoY Change -37.63% -106.46%
Interest Expense -$88.00K $104.0K
YoY Change -182.24% -1.89%
% of Operating Profit
Other Income/Expense, Net $414.0K $139.0K
YoY Change -84.2% -42.8%
Pretax Income -$327.0K -$693.0K
YoY Change -122.82% -105.28%
Income Tax $0.00 $0.00
% Of Pretax Income
Net Earnings -$327.0K -$693.0K
YoY Change -122.82% -105.28%
Net Earnings / Revenue
Basic Earnings Per Share $0.00 -$0.01
Diluted Earnings Per Share $0.00 -$0.01
COMMON SHARES
Basic Shares Outstanding 88.70M 88.30M
Diluted Shares Outstanding 88.68M 88.16M

Balance Sheet

Concept 2024 Q2 2024 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.025M $1.734M
YoY Change -75.6% 1184.44%
Cash & Equivalents $1.000M $1.700M
Short-Term Investments
Other Short-Term Assets $36.00K $36.00K
YoY Change -2.7% 50.0%
Inventory
Prepaid Expenses $70.00K $60.00K
Receivables
Other Receivables
Total Short-Term Assets $1.131M $1.830M
YoY Change -73.9% -87.21%
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill
YoY Change
Intangibles $945.0K $996.0K
YoY Change -20.65% -20.45%
Long-Term Investments
YoY Change
Other Assets $312.0K $312.0K
YoY Change 5100.0% 7700.0%
Total Long-Term Assets $1.257M $1.308M
YoY Change 5.01% 3.89%
TOTAL ASSETS
Total Short-Term Assets $1.131M $1.830M
Total Long-Term Assets $1.257M $1.308M
Total Assets $2.388M $3.138M
YoY Change -56.82% -79.84%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $438.0K $427.0K
YoY Change -44.2% -47.28%
Accrued Expenses $542.0K $555.0K
YoY Change -6.23% -4.31%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $1.436M $1.555M
YoY Change -17.99% 3.32%
Total Short-Term Liabilities $2.400M $2.537M
YoY Change -22.93% -12.37%
LONG-TERM LIABILITIES
Long-Term Debt $40.16M $40.62M
YoY Change 269.26% 281.52%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $40.16M $40.62M
YoY Change 6.74% -18.02%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.400M $2.537M
Total Long-Term Liabilities $40.16M $40.62M
Total Liabilities $42.57M $43.16M
YoY Change 4.51% -17.7%
SHAREHOLDERS EQUITY
Retained Earnings -$434.7M -$434.4M
YoY Change 1.41% 1.0%
Common Stock $889.0K $884.0K
YoY Change 3.98% 4.62%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$40.19M -$40.02M
YoY Change
Total Liabilities & Shareholders Equity $2.388M $3.138M
YoY Change -56.82% -79.84%

Cashflow Statement

Concept 2024 Q2 2024 Q1
OPERATING ACTIVITIES
Net Income -$327.0K -$693.0K
YoY Change -122.82% -105.28%
Depreciation, Depletion And Amortization $58.00K $60.00K
YoY Change -10.77% -9.09%
Cash From Operating Activities -$625.0K -$800.0K
YoY Change -29.62% -106.06%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00
YoY Change -100.0%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities $0.00 $0.00
YoY Change -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -84.00K -$33.00K
YoY Change -99.06% -104.14%
NET CHANGE
Cash From Operating Activities -625.0K -$800.0K
Cash From Investing Activities 0.000 $0.00
Cash From Financing Activities -84.00K -$33.00K
Net Change In Cash -709.0K -$826.0K
YoY Change -92.81% -105.92%
FREE CASH FLOW
Cash From Operating Activities -$625.0K -$800.0K
Capital Expenditures $0.00 $0.00
Free Cash Flow -$625.0K -$800.0K
YoY Change -29.7% -106.06%

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<p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;"><b><em style="font: inherit;">1.</em> Description of Business</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;">ParkerVision, Inc. (“ParkerVision”, “we” or the “Company”) is in the business of innovating fundamental wireless hardware technologies and products.</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 designed and developed proprietary radio frequency (“RF”) technologies and integrated circuits based on those technologies, and we license those technologies to others for use in wireless communication products.  We have expended significant financial and other resources to research and develop our RF technologies and to obtain patent protection for those technologies in the United States of America (“U.S.”) and certain foreign jurisdictions.  We believe certain patents protecting our proprietary technologies have been broadly infringed by others, and therefore the primary focus of our business plan is the enforcement of our intellectual property rights through patent licensing and infringement litigation efforts.  We currently have patent enforcement actions ongoing in various U.S. district courts against mobile handset, smart television and other WiFi product providers, as well as semiconductor suppliers, for the infringement of a number of our RF patents.  We have made significant investments in developing and protecting our technologies.</p> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;"> </p>
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<p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt;"><b><em style="font: inherit;">3.</em> Basis of Presentation </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 accompanying unaudited condensed consolidated financial statements for the period ended <em style="font: inherit;"> March 31, 2024</em> were prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form <em style="font: inherit;">10</em>-Q and Rule <em style="font: inherit;">10</em>-<em style="font: inherit;">01</em> of Regulation S-<em style="font: inherit;">X.</em>  Operating results for the <em style="font: inherit;">three</em> months ended <em style="font: inherit;"> March 31, 2024</em>, are <em style="font: inherit;">not</em> necessarily indicative of the results that <em style="font: inherit;"> may </em>be expected for the year ending <em style="font: inherit;"> December 31, 2024</em>, or future years.  All normal and recurring adjustments which, in the opinion of management, are necessary for a fair statement of the consolidated financial condition and results of operations have been included.</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 year-end condensed consolidated balance sheet data was derived from audited financial statements for the year ended <em style="font: inherit;"> December 31, 2023</em>.  Certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with GAAP have been omitted from these interim condensed consolidated financial statements.  These interim condensed consolidated financial statements should be read in conjunction with our latest Annual Report on Form <em style="font: inherit;">10</em>-K for the year ended <em style="font: inherit;"> December 31, 2023</em> (“<em style="font: inherit;">2023</em> Annual Report”).  Certain reclassifications have been made to prior period amounts to conform to the current period presentation.</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 condensed consolidated financial statements include the accounts of ParkerVision, Inc. and its wholly-owned German subsidiary, ParkerVision GmbH, after elimination of all intercompany transactions and accounts.  </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;">Cash, cash equivalents, and restricted cash at <em style="font: inherit;"> March 31, 2023</em> included $13.9 million of restricted cash held in escrow by our attorneys designated for repayment of principal on our secured contingent debt obligation.  These restricted funds were released from escrow in <em style="font: inherit;"> May 2023.</em></p> <p style="font-family: Times New Roman; font-size: 11pt; font-variant: normal; margin: 0pt 0pt 0pt 18pt; text-indent: -18pt;"> </p>
CY2023Q1 us-gaap Restricted Cash
RestrictedCash
13900000 usd
CY2024Q1 us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
0 usd
CY2023Q1 us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
25000000 usd
CY2024Q1 us-gaap Net Income Loss
NetIncomeLoss
-693000 usd
CY2023Q1 us-gaap Net Income Loss
NetIncomeLoss
13115000 usd
CY2024Q1 prkr Income Attributable To The Dilutive Securities If Converted Or Exercised
IncomeAttributableToTheDilutiveSecuritiesIfConvertedOrExercised
0 usd
CY2023Q1 prkr Income Attributable To The Dilutive Securities If Converted Or Exercised
IncomeAttributableToTheDilutiveSecuritiesIfConvertedOrExercised
99000 usd
CY2024Q1 us-gaap Net Income Loss Attributable To Parent Diluted
NetIncomeLossAttributableToParentDiluted
-693000 usd
CY2023Q1 us-gaap Net Income Loss Attributable To Parent Diluted
NetIncomeLossAttributableToParentDiluted
13214000 usd
CY2024Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
88164000
CY2023Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
83968000
CY2024Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
0
CY2023Q1 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
37728000
CY2024Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
88164000
CY2023Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
121696000
CY2024Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
-0.01
CY2023Q1 us-gaap Earnings Per Share Basic
EarningsPerShareBasic
0.16
CY2024Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.01
CY2023Q1 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
0.11
CY2024Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
73905000
CY2023Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
24872000
CY2024Q1 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
10431000 usd
CY2023Q4 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
10431000 usd
CY2024Q1 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
9435000 usd
CY2023Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
9376000 usd
CY2024Q1 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
996000 usd
CY2023Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
1055000 usd
CY2024Q1 us-gaap Convertible Debt
ConvertibleDebt
4938000 usd
CY2023Q4 us-gaap Convertible Debt
ConvertibleDebt
4938000 usd
CY2024Q1 us-gaap Convertible Debt Current
ConvertibleDebtCurrent
1420000 usd
CY2023Q4 us-gaap Convertible Debt Current
ConvertibleDebtCurrent
1045000 usd
CY2024Q1 us-gaap Convertible Debt Noncurrent
ConvertibleDebtNoncurrent
3518000 usd
CY2023Q4 us-gaap Convertible Debt Noncurrent
ConvertibleDebtNoncurrent
3893000 usd
CY2024Q1 us-gaap Loss Contingency Disclosures
LossContingencyDisclosures
<p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;"><b><em style="font: inherit;">10.</em> Contingent Payment Obligations</b></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;"><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 <em style="font: inherit;">three</em> months ended <em style="font: inherit;"> March 31, 2024</em> and the year ended <em style="font: inherit;"> December 31, 2023</em> (in thousands):</p> <p style="font-family: Times New Roman; 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;">Three Months Ended March 31, 2024</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;">Year Ended December 31, 2023</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 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;">29,402</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;">40,708</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; padding: 0; margin: 0"> <p style="margin: 0pt; font-size: 11pt; font-family: &quot;Times New Roman&quot;;">Borrowings</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; padding: 0; margin: 0"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; padding: 0; margin: 0"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; padding: 0; margin: 0">-</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; padding: 0; margin: 0"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; padding: 0; margin: 0"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; padding: 0; margin: 0"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; padding: 0; margin: 0">5,000</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; padding: 0; margin: 0"> </td></tr> <tr style="background-color: rgb(204, 238, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 11pt; padding: 0; margin: 0"> <p style="margin: 0pt; font-size: 11pt; font-family: &quot;Times New Roman&quot;;">Repayments</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; padding: 0; margin: 0"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; padding: 0; margin: 0"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; padding: 0; margin: 0">-</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; padding: 0; margin: 0"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; padding: 0; margin: 0"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; padding: 0; margin: 0"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; padding: 0; margin: 0">(13,925</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; padding: 0; margin: 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;">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);">241</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;"> </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);">(2,381</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 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);">29,643</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);">29,402</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 consists of a secured, non-recourse note (the "Note") and a prepaid forward purchase contract (the "PPFPA") with Brickell<span style="background-color: rgb(255, 255, 255); font-size: 11pt;"> Key Investments, LP (“Brickell”).  </span> The Note has a face value of $45.5 million ("Face Value"), accrues simple interest at a fixed rate, and matures on <em style="font: inherit;"> August 14, 2028.  </em>Payments under the Note will be made solely from proceeds from our patent assets, net of contingent fees payable to attorneys ("Distributions").  We are obligated to pay <em style="font: inherit;">one hundred</em> percent (100%) of the <em style="font: inherit;">first</em> $5.8 million in Distributions to Brickell, and thereafter will pay a percentage of Distributions, which varies depending upon the origin of the Distributions, until the Face Value of the Note, and accrued interest thereon, has been repaid in full.  If the amounts payable to Brickell from Distributions are insufficient to repay the face value and interest accrued on the Note by the maturity date, our remaining repayment obligations under the Note will be reduced to <em style="font: inherit;">zero</em> with future payment obligations, if any, being determined under the PPFPA.  The Note is secured by our patent assets and related proceeds and contains standard and customary representations, warranties and covenants.  The Note contains events of default including, but <em style="font: inherit;">not</em> limited to, (a) failure to pay principal or interest on the Note when due; (b) breach of representations or covenants, (c) impairment in the perfection or priority of Brickell's security interests in the collateral, and (d) bankruptcy or dissolution of the Company.  In the event of a default, the outstanding principal and accrued interest on the Note will become immediately due and payable.  The PPFPA extends beyond the maturity date of the Note and provides that Brickell is entitled to a specified percentage of monetary recoveries resulting from our patent-related actions to the extent <em style="font: inherit;">not</em> already paid to Brickell under the Note, or otherwise prior to the inception of the Note.  The PPFPA also contains standard and customary representations, warranties and covenants.  The Note and PPFPA are collectively referred to as our secured contingent payment obligation.</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;">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 condensed consolidated statements of comprehensive income (loss) until the contingency is resolved.</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 underlying carrying value of the Note, which includes the Face Value plus accrued interest, was approximately $53.0 million and $51.0 million as of <em style="font: inherit;"> March 31, 2024</em> and <em style="font: inherit;"> December 31, 2023</em>, respectively. The range of potential proceeds payable to Brickell is discussed more fully in Note <em style="font: inherit;">11.</em>  As of <em style="font: inherit;"> March 31, 2024</em>, we are in compliance with our obligations under this agreement.</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;"><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 <em style="font: inherit;">three</em> months ended <em style="font: inherit;"> March 31, 2024</em> and the year ended <em style="font: inherit;"> December 31, 2023</em> (in thousands):</p> <p style="font-family: Times New Roman; 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);"><em style="font: inherit;">Three Months Ended March 31, 2024</em></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);"><em style="font: inherit;">Year Ended December 31, 2023</em></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;">7,618</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;">$</td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt;">5,089</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt;"> </td></tr> <tr style="background-color: rgb(255, 255, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 11pt;"> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;">Change in fair value</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">(461</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; border-bottom: 1px solid rgb(0, 0, 0); margin-left: 0pt;">)</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td><td style="width: 12%; text-align: right; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);">2,529</td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td></tr> <tr style="background-color: rgb(204, 238, 255); vertical-align: bottom"><td style="font-family: Times New Roman; font-size: 11pt;"> <p style="font-family: &quot;Times New Roman&quot;; font-size: 11pt; font-variant: normal; margin: 0pt;">Unsecured contingent payment obligations, end of period</p> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt;"> </td><td style="width: 1%; font-family: Times New Roman; font-size: 11pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</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);">7,157</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);">7,618</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 unsecured contingent payment obligations represent amounts payable to others from future patent-related proceeds including (i) a termination fee due to a litigation funder and (ii) contingent payment rights issued to accredited investors in connection with equity financings (“CPRs”).  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 condensed 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>
CY2024Q1 us-gaap Stock Issued During Period Shares Issued For Services
StockIssuedDuringPeriodSharesIssuedForServices
120000
CY2024Q1 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
19000 usd
CY2024Q1 us-gaap Class Of Warrant Or Right Outstanding
ClassOfWarrantOrRightOutstanding
10300000
CY2024Q1 prkr Class Of Warrant Or Right Weighted Average Remaining Life
ClassOfWarrantOrRightWeightedAverageRemainingLife
P1Y3M18D
CY2024Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
100000 usd
CY2023Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
200000 usd
CY2024Q1 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions
300000 usd
CY2024Q1 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1
P1Y
CY2024Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0 pure

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