Nano-Proprietary’s breach of contract suit against Canon likely will go to trial after April 2, it said in a 10-K filing with the SEC. A trial, in U.S. Dist. Court, Beaumont, Tex., would cap a 2-year battle that has seen Canon suffer a series of losses. In Feb., U.S. Dist. Judge Samuel Sparks ruled that Nano-Proprietary could terminate its SED licensing pact with Canon (CED Feb 26 p1), finding Canon engaged in “material and substantial” breach of contract. The contract barred Canon from sublicensing the SED technology, and it improperly transferred rights to Toshiba in forming the SED Inc. joint venture, Sparks said. In 2006 the Canon suit cost Nano-Proprietary $494,120, up from $172,816 a year earlier, it said. Nano-Proprietary also incurred $1.4 million in legal expenses in connection with a suit involving inventor Till Keesmann, who licensed his carbon nanotube technology to the company. A federal judge in Feb. issued a preliminary injunction barring Keesmann from ending his 7-year-old licensing agreement with Nano-Proprietary (CED Feb 20 p7). The injunction took effect when Nano-Proprietary posted a $100,000 bond this month, the company said. Nano-Proprietary had recorded $1.1 million in deferred legal fees related to the Keesmann litigation Dec. 31, it said. Meanwhile, Nano- Proprietary forecasts 2007 revenue of $5 million and said it could see positive cash flow with revenue of $6.5 million, the 10K stated. Nano-Proprietary projected a minimum of $2.9 million in revenue from government contracts in 2007 and an additional $1.7 million from “contracts currently in process,” the 10K stated. Nano-Proprietary also projected $4.1 million in 2007 research costs, and it will need $6.5 million cash. Nano- Proprietary’s Q4 net loss declined to $1.48 million, from $1.56 million, as revenue rose to $625,636 from $162,384. For the year, Nano-Proprietary’s net loss grew to $6.6 million from $5.8 million as revenue jumped to $1.1 million from $565,660. Revenue was bolstered by sales to Yonex ($248,454) and Shimane Masuda Electronics ($100,485), the latter down from $109,970 in 2005, the 10-K said. Nano- Proprietary had been working with Shimane on carbon nanotube lighting devices since 2004. It developed a proof of concept using carbon nanotubes as an LCD backlight and signed a distribution agreement for Japan with Mitsui. Yonex used carbon nanotube technology to develop its Nanospeed tennis racket. Nano-Proprietary benefited in 2006 from a $1 million sale of IP related to former subsidiary Electronic Billboard Technology to Novus Communications Technologies. New CEO Thomas Bijou, who joined the company in Dec., got a $24,000 salary for his month on the job, plus options for 663,442 shares. Bijou’s base salary for 2007 in $288,000. Former CEO R.D. Burck, who left the company in Nov. after 6 months in the job, was paid $145,833. Former CEO Marc Eller, replaced by Burck but still chmn., got $125,000 and options for 135,989 shares. Eller also got a $30,000 payment March 1 for consulting services, the 10K said.
The Commerce Department's Office of Textiles and Apparel (OTEXA) has posted to its Web site the monthly reports containing official January 2007 trade data from the Department of Census for imports and exports of textiles and apparel:
The International Trade Administration (ITA) has initiated an antidumping (AD) duty investigation to determine whether imports of sodium hexametaphosphate from China are being, or are likely to be, sold in the U.S. at less than fair value.
The House Ways and Means Trade Subcommittee has issued an advisory announcing that it will be holding a hearing on March 15, 2007 on the application of countervailing (CV) duties to unfairly subsidized and injurious imports from nonmarket economy (NME) countries (such as China), with a focus on H.R. 1229, the "Nonmarket Economy Trade Remedy Act of 2007."
Rent-a-Center took an accounting charge of $77 million to cover “probable losses” in a series of suits, including paying $58 million to settle allegations it violated an N.J. cap on installment loan interest. RAC set up a $58 million reserve this year (CED Feb 7 p3) after the U.S. Supreme Court rejected its petition for review. The chain had challenged a N.J. Supreme Court ruling that it fell under the N.J. Retail Installment Sales & Consumer Fraud Act, which caps at 30% a year interest on installment deals. Hilda Perez sued RAC in 2003, claiming she paid $8,000 toward interest of about 80% on furniture, a TV, a washing machine and other appliances. The suit seeks to include aggrieved customers with 294,000 rent-to-own contracts entered into April 23, 1999-March 17, 2006. RAC also is expected to pay $4.95 million this month to settle allegations it violated Cal. wage & hour laws. It reached a preliminary deal with former store managers Jeremy Burdusis and Israel French and other former employees. The 2001 suit claimed RAC violated Cal. law on overtime, lunch and work breaks. RAC promised overtime but didn’t pay it, the suit said. The settlement will be paid to 6,250 people who worked for the chain Aug. 1998-Nov. 9, 2006. Meanwhile, CE products brought 33% of RAC’s $2.1 billion in store rental revenue in fiscal 2006, behind furniture and accessories (37%), but ahead of appliances (16%) and PCs (14%). Furniture maker Ashley and Whirlpool accounted for 16% and 14.3% of RAC merchandise buys in 2006, against 16.6% and 14.9% a year earlier, the company’s 10-K filing with SEC said. RAC will spend about $75 million on capital projects in 2007, down from $84.4 million in 2006. RAC will finish building a new hq in Plano, Tex., this year and add financial services, including payday loans, to 350-400 stores. It has financial services at 150 stores in 14 states, including at 34 of 112 locations in Tenn., the chain said. It had spent $21.5 million building the hq by Dec. 31 and will incur $8.5- $10.5 million more in costs during Q1, the company said. RAC spent $657.3 million on 37 corporate transactions in 2006, including $622.5 million to buy 782-store Rent-Way. It since has merged about 160 Rent-Way stores into its own locations. A minimum 18-month term is required for a RAC customer to own a product and 25% of RAC contracts go to term, the chain said. The average life of a product at RAC is 19 months and 86% of its contracts carry a weekly term, it said. The average weekly past-due percentage was 6.58% of contracts in 2006, down from 6.76% a year earlier, RAC said. Charge-offs for goods stolen by renters was 2.4% of store rental revenue in 2006, down from 2.5% a year earlier. RAC had 3,406 stores Dec. 31. It also had 282 ColorTyme franchise locations, down from 299 a year earlier.
The International Trade Administration (ITA) has issued a notice announcing that it is revoking the antidumping (AD) duty order on furfuryl alcohol from Thailand.
Consumer intentions to buy TV sets fell slightly in Feb. from Jan., according to preliminary data in the Conference Board’s monthly survey. Of 5,000 households polled, 7.3% said they plan to buy a TV set the next 6 months, vs. 7.6% in Jan., 9.5% in Dec., 9.4% in Feb. 2006. The Consumer Confidence Index reached its highest level since Aug. 2001, the Conference Board said: “All in all, it appears that the pace of economic growth exhibited in the final months of 2006 has carried over into early 2007 and may have even gained a little momentum.”
The International Trade Commission (ITC) has posted to its Web site an announcement stating that the hard copy version of the February 3rd "basic edition" of the 2007 Harmonized Tariff Schedule (HTS) was inadvertently printed without Chapter 75.
The International Trade Administration (ITA) has made a final affirmative antidumping (AD) duty determination that certain activated carbon from China is being, or is likely to be, sold in the U.S. at less than fair value: