Legal issues
Regarding the court case that Empower is involved in with Pixon it is my understanding that a CEO has a legal obligation to disclose in a timely fashion all material information about a company. I may be completely wrong but that is what I have been told and I believe my information to be correct.
Pixon filed its case against Empower on May 18,2011. It wasn't until after the latest finacing was completed that Mr. Leung mentioned it in an announcement on Oct 19th, 2011. Were imvestors who participated in the last financing made aware of the ongoing court action?
It is completely irrelevent if Mr. Leung believed the outcome would favour Empower. In my opinion this crucial piece of information should have been made available to those investors and I hope it was. Did Mr.Leung disclose this information to Teatyn? Was Teatyn unaware of this and therefore unwittingly selling stock in Empower without reporting this to investors? Why did Teatyn and Empower sever their relationship so suddenly?
You can draw your own conclusions why Mr.Leung did not report the lawsuit on the Empower website.
For those who are unaware, Pixon made 7 claims against Empower with the most important claim being misappropriation of trade secrets. This is lawyer speak and means they believe Empower stole their trade secrets for the ISC technology. I am not going to express any opinion on whether or not Pixon's claim is true, however, if you read the last 3 lines on page 6 and the first 2 lines of page 7 of the attached judgement below it is very clear the judge believes Pixon's claim of trade secret misappropriation.
At any point if Pixon believes they can win their case they have the option of reopening it. We will have to wait and see if they do. [I doubt they will because its too costly]
As for the future price of Empower I believe it will drop to under 5 cents by Christmas without a major announcement. Its already traded as low as 6 cents. Its not a stretch for it to drop to 2-3 cents. Mr. Leung might want to consider a company update to inform investors about the status of the purchase orders for the ISC technology or the testing of the Inflight project. That would be helpful. For all we know they may have died already.
One thing is certain. There won't be any more financings without a major advance forward. The only way this company will continue once the latest financing of $500,000 is gone is if there is serious revenue or Mr. Leung loans the company more money.
My personal opinion is we have less than a 50-50 chance the company survives past the spring. I think this may be why Mr.Leung is again attempting to secure the assets of the company as collateral in the event of collapse. The technology does have value and may be worth several million to the right buyer. Mr. Leung gets his money back and investors get the shaft.
But............if the purchase orders actually come through this company could become very profitable. We just don't know.
Where are you Mr. Leung?
https://law.justia.com/cases/federal/district-courts/california/casdce/3:2011cv01093/352061/25