Quarterhill Inc T.QTRH

The costs keep adding up… anyone else keeping track?

[v_guerriero]

The focus on this quarter will be on "revenue"... and will try and convince shareholders that the charges and costs are "transitory"... here is a summary of what is to come and what will impact margins

Severance
- Paul Hill: $3 Million
- John Rim: $ 1 Million

Banker costs
- $2.3 Million debenture financing costs

New interest costs
- ~$1 Million interest per quarter on debenture interest

Litigation losses
- Fees paid to Vizio and Sharp for case brought forward without merits

Legal costs
- More appeals to the CAFC and ultimately Supreme Court
- Additional costs to open new legs front against Apple in Canada and Germany 
- More costs to appeal Amazon loss to CAFC as well as al of the other recent district court losses.  CAFC appeal costs are not done on contingency.  Each costs about $1million for each appeal.  

Restructuring costs
- Eliminating corporate overhead structure legal, severance and accounting costs

Executive search costs for new CFO

More dilution
- Additional options to new CEO
- Additional options to new CFO
- Additional options to existing Board members

Employee high tech cost inflation

Chips and sensor cost inflation

[mrmoribund]

It looks like you've pumped up every Q4 estimated regular cost or special charge to the highest number imaginable. This not a disinterested list. How on earth did you come up with $3 million for Paul Hill severance? For 1.5 years? I would have guessed the severance would have primarily involved Paul keeping a big chunk of his not-yet-vested options. Regardless, $3 million looks over the top.

[v_guerriero]

Good discussion. I shared the specific language from the Proxy Circular that lays out Paul's compensation under termination.  He got the $1 million lump sum + prorated bonus and Stock for the year a sit was full year (which is 300k).  His 1.4 million options that had a strike price of 1.99 immediately invested upon termination at 2.67.  That's a cool million.  Then