AI
Sunday, January 08, 2012 2:20:36 AM
2012 CDVT 0.01 POISED TO EXPLODE, READ WHY... MAJOR LAWSUIT AGAINST MAJOR US RETAILERS FOR PATENT BREACH, IF APPEAL CONFIRM PATENT VALIDITY, COMPANY WILL SETTLE FOR MILLIONS AND MILLIONS OF $ AND RWARD ALL COMMONS!!!
DD CDVT .01 TO $ LAND IF THEY WIN APPEAL OR SETTLE PATENT DISPUTE
CDVT NEWS OUT, APPEAL FILED, SEEKING 3.7 BILLIONS IN CLAIMS FOR PATENT BREACH, .01 WILL BE MULTI DOLLARS IF APPEAL WON AND/OR SETTLEMENT SIGNED
http://finance.yahoo.com/news/Card-Activ...
Card Activation Files Its Opening Appeal Brief
Press Release: Card Activation Technologies Inc. – 48 minutes ago
CHICAGO--(BUSINESS WIRE)-- Card Activation Technologies Inc. (Pink Sheets: CDVT)—Card Activation Technologies, Inc. (“Card”) filed its opening brief of appellant in the United States Court of Appeals for the Federal Circuit on Thursday, December 29, 2011. Card is appealing from a July 2011 adverse ruling by the Federal District Court for the District of Delaware that invalidated its Patent.
About Card Activation Technologies Inc.
Card Activation Technologies, Inc. is a Chicago-based company that owns the patent rights to a proprietary payment transaction method used for processing gift cards and other debit purchase transactions. The company is actively seeking to license its patent to the thousands of current users and believes that many retailers, gas stations, phone companies and others that utilize those stored value cards, such as gift and debit cards, infringe its patent. As a result, the company is aggressively pursuing litigation against these infringers.
For further information about Card Activation Technologies go to www.cardactivationtech.com
Contact:
Card Activation Technologies Inc.
Robert H. Kite, 312-972-1662
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CDVT 0.01 mother of all bounce coming going to be epic imho read PENDING BILLION $ APPEAL NEWS AND OUTCOME, MARKET CAP JUST 1MILLION $, NO OR SMALL DILUTION, STABLE OS, LIMITED FLOAT, RUMORS ABOUT (UNCOVERABLE GIVEN VERY THIN EVEN IF GROWING VOLUMES) 40MLN SHARES SHORT, GOING TO BE EPIC RUN IN 2012 IMHO, BARRON'S ARTICLE AND INDEPENDENT APPRAISAL REPORT LINKS
www.cardactivationtech.com/index.php their patent for prepaid debit cards worth billions!!!
online.barrons.com/article/SB50001424052748704048804577082290891910560.html?mod=BOL_twm_col
CDVT 0.01 appeal news coming, a gamechanger, appeal worth billions, for real, limk
CDVT 0.01 GETTING HOTTER DAY AFTER DAY, VOLUMES PRECEED PRICES
CDVT .01 TO EXPLODE, APPEAL NEWS COMING DECEMBER 29TH, 3$ IN REQUESTED DAMAGES ACCORDING TO INDIPENDENT APPRAISAL LINK www.cardactivationtech.com/final-report.pdf if appeal rules positive cdvt will distribute any fund to commons shareholders,
CDVT 0.01 mm scrambling TO AVOID MASSIVE SHORT SELLING COVER DUE TO APPEAL NEWS END OF DECEMBER, 3$ PER SHARE IN REQUESTED DAMAGES VS NATIONAL US RETAILERS
...WHILE BARRON'S JUST HIGHLIGHTED CO' PATENT POTENTIAL
online.barrons.com/article/SB50001424052748704048804577082290891910560.html?mod=BOL_twm_col
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http://finance.yahoo.com/news/Card-Activ...
Card Activation Files Its Opening Appeal Brief
Press Release: Card Activation Technologies Inc. – 48 minutes ago
CHICAGO--(BUSINESS WIRE)-- Card Activation Technologies Inc. (Pink Sheets: CDVT)—Card Activation Technologies, Inc. (“Card”) filed its opening brief of appellant in the United States Court of Appeals for the Federal Circuit on Thursday, December 29, 2011. Card is appealing from a July 2011 adverse ruling by the Federal District Court for the District of Delaware that invalidated its Patent.
About Card Activation Technologies Inc.
Card Activation Technologies, Inc. is a Chicago-based company that owns the patent rights to a proprietary payment transaction method used for processing gift cards and other debit purchase transactions. The company is actively seeking to license its patent to the thousands of current users and believes that many retailers, gas stations, phone companies and others that utilize those stored value cards, such as gift and debit cards, infringe its patent. As a result, the company is aggressively pursuing litigation against these infringers.
For further information about Card Activation Technologies go to www.cardactivationtech.com
Contact:
Card Activation Technologies Inc.
Robert H. Kite, 312-972-1662
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CDVT .01 next weeks over .20 again, news coming, billions dollars news coming
CDVT 0.01 lots of volume, appeal decision soon, worth up to 3$ in requested damages, link
CDVT appeal news coming,damages requested woth up to 3billions, market cap 1m!!!
CDVT GOING TO THE MOON WITH APPEAL NEWS 12/29, PERFECT STORM!
CDVT highlited by Barron's, link, 0.016 vs 3$ in requested damages for patent breach, appeal pending
http://online.barrons.com/article/SB50001424052748704048804577082290891910560.html?mod=BOL_twm_col
A Gift-Card Christmas
By MARK VEVERKA | MORE ARTICLES BY AUTHOR
The favored form of electronic fund transfers—for gift givers, recipients and retailers: like any technology, they're attracting patent lawsuits.
Technology-based gifts will definitely stock Santa's sleigh this holiday, but not only in the form of tablets, game consoles and gadgets. The most interesting tech trend this holiday season will be the growing use of electronic funds transfer, or EFT, to pay for everything from clothes to televisions to airplane tickets.
Common forms of EFT, such as PayPal and BillMeLater, which are both owned by eBay (ticker: EBAY), and Google's (GOOG) Wallet, are popular with online shoppers. But the most popular form of EFT—for gift buyers, recipients and merchants—is the prepaid gift card.
According to a National Federation of Retailers survey, U.S. shoppers intend to spend an average of $155.43 on gift cards this holiday season, up from $145.61 last year. The total gift-budget per shopper is expected to be around $516, down from $541 last year.
In the NFR survey, gift cards were the top choice among those on the receiving end: 57.7% said they prefer gift cards to any other presents this year. Clothing came in second at 50%; books, CDs and other media (including software) were third at 44.4%; and computers and consumer electronics were fourth at 35.4%. Respondents were allowed to check more than one answer.
Consumers like gift cards because they are convenient and offer the recipient choice, but retailers like them even more. Prepaid cards lock customers into spending at specific stores and Websites.
What's more, retailers love gift cards because they operate outside of the banking system, where credit-card processing costs are significantly higher. EFT processing incurs small, fixed-transaction costs for retailers as opposed to a percentage of the sale transaction, which is the case with credit cards.
On top of that, retailers get to keep unclaimed revenue from unused gift cards, although they must honor the cards for up to five years, which is good news, given the number of $5 Cold Stone Creamery cards on my refrigerator door that my kids have yet to use.
Most retailers outsource their gift-card operations to third-party processors, such as First Data, Ceridian Stored Value Solutions, and Safeway (SWY). These companies tend to function more like IT operations than financial institutions because they control databases of information as opposed to cash.
The revenue is generally held by the retailer—who receives it right away but can't recognize it until a card is actually used. And not unlike other areas of technology, EFT technology is embroiled in patent warfare.
In recent months, the gift-card industry has scored a number of patent victories against nonpracticing entities, commonly known as "patent trolls." These companies typically acquire patents and attempt to collect royalties and licensing fees.
Shares of one so-called troll, Card Activation Technologies (CDVT), got whacked in July when a Federal court in Delaware ruled its patents invalid. Alan Fisch of Kaye Scholer in Washington represented the plaintiff, Ceridian. Card Activation has also been tangled in litigation with Macy's, Nordstrom, Barnes & Noble and others. Fisch doesn't expect gift-card patent battles to wane anytime soon. "Successful technologies attract patent litigation, which will remain a constant for some time," he says.
For now, at least, chalk one up for the elves against the trolls.
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CDVT .016 poised to epic bounce if appeal won! company will distribute funds to shareholders if appeal won, must read, market cap 1million $ vs 3£ in damages requested by management
CDVT .016 may be worth 3$ if appeal won, link to report
www.cardactivationtech.com/final-report.pdf
what investors are missing? must read, if appeal won, tons of money in...
CDVT .013 REPORT SAYS THEIR PATENTS WORTH 3$ PER SHARE, IMPOSSIBLE FIND SHARES ON THE MARKET, SUPER TINY ASK, IMHO SET TO REACH AT LEAST .15/.20 BEFORE APPEAL RULING DUE IN 2012
CDVT TO DA MOON FINALLY, MOST UNDERVALUED STOCK OF THE WORTLD, APPRAISAL TELLS 3$
CDVT .01 WILL DISTRIBUTE CASH DIVIDEND WHEN ANF IF SETTLEMENTS AND OR LICENSE AGREEMENTS REACHED, MUST READ
CDVT .01 WORTH UP TO 3$ ACCORDING REPORT, LINK
CDVT WILL DISTRIBUTE DIVIDENDS TWICE FOR YEAR WHEN AND IF SETTLEMENT AVAILABLE
CDVT 0.1 +200% short squeeze, successful appeal worth up to 3$
CDVT 0.01 mother of all short squeeze must read, ultrathin with major catalyst 10q out within days
no shares in the market, ask at 0.01/0.03/.10
if appeal against major retailers filed and won short sellers will need to cover up to 40 mln shares, daily volume equal to 0 up to 30/40k if lucky, lawyers ready to file appeal against retailers in fed circuit and uspto, they won the first and lose the second, now the final round.
CDVT traded around .10/.15 before negative verdict in july, if appeal won or settlement done, plenty of romm up to 3$
CDVT .01 FAIR VALUE 3$ IF APPEAL WON
MONSTER CDVT .01
FALLING PLENTY OF ROOM UP TO .03
CDVT must read, .01 no dilution, legal claims worth up to 3$$
CDVT .01 VS UP TO 3$ IN LEGAL CLAIMS, INVOLVED IN PATENT BATTLE AGAINST MAJOR US RETAILERS, UNIQUE OPPORTUNITY IMHO
CDVT 1.5MC VS 3.7 BILLION $ MORE IN CLAIMS FOR PATENT BREACH ultra low float, main shareholders own more than 50%, may be settlement agmts to come, I smell huge money
LINK TO OFFICIAL APPRAISAL REPORT
www.cardactivationtech.com/final-report.pdf
CDVT 0.01 ONE OF THE MOST UNDERVALUED STOCKS, LEGAL CLAIMS WORTH UP TO 3$
CDVT 0.01 WORTH 3$ IF APPEAL WON!!!!!!! ultrathin, CDVT .005 if they won appeal, worth up to 3$!!! debit card patents war player
CDVT .006 HUGE UP UP PATENTS WORTH UPTO 3$ BASED ON CLAIMS, APPEAL FILED
CDVT.0055 pending news, moving up, oversold, if appeal won they may get billions for their patent
CDVT finally gapping .02 in the radar, volumes means finally positive news
CDVT 0.01 alert, patents worth 3$, appeal filed to court CDVT .01 THE NEXT 100BAGGER, PATENTS WORTH BILLIONS!!!
MUST READ CDVT .0080/.0120 +25% PATENT WORTH BILLIONS PATENTS'WAR HUGE PLAYER, CDVT.PK, MUST READ
NOBRAINER CDVT.pk THEIR PATENTS USED BY 600+ CO'S 0,0080!!!!!!!!!!!!!!!!
www.cardactivationtech.com/index.php their patent for prepaid debit cards worth billions!!!
CDVT OWNS UNIQUE PATENTS WORTH BILLIONS, TRADING UNDER .01
50x CDVT 0.0080 huge suing USPTO and CO's for billions for patents breach
CDVT huge buying opp suing co's for billions, 0.016 vs 3$ claims!!!
CDVT .0080 huge news filed appeal worth up to 3$, link
co's suing hundreds of co's for patent breach, billions in damages requested!!!
finance.yahoo.com/news/Card-Activation-Files-Its-bw-1866058952.html?x=0&.v=1
Card Activation Files Its Notice of Appeal
{"s" : "cdvt.pk","k" : "a00,a50,b00,b60,c10,g00,h00,l10,p20,t10,v00","o" : "","j" : ""} Press Release Source: Card Activation Technologies Inc. On Friday August 5, 2011, 7:01 am EDT
CHICAGO--(BUSINESS WIRE)-- Card Activation Technologies Inc. (Pink Sheets:CDVT.pk - News)—Card filed its Notice of Appeal in the United States District Court for the District of Delaware on Thursday, August 4, 2011. This is the first step toward having its appeal heard in the United States Court of Appeals for the Federal Circuit, the exclusive jurisdictions for appeals relating to patent validity and infringement issues. Card is appealing from a July adverse ruling by the Delaware Court that invalidated its Patent.
About Card Activation Technologies Inc.
Card Activation Technologies, Inc. is a Chicago-based company that owns the patent rights to a proprietary payment transaction method used for processing gift cards and other debit purchase transactions. The company is actively seeking to license its patent to the thousands of current users and believes that many retailers, gas stations, phone companies and others that utilize those stored value cards, such as gift and debit cards, infringe its patent. As a result, the company is aggressively pursuing litigation against these infringers.
For further information about Card Activation Technologies go to www.cardactivationtech.com
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Card Activation Technologies, Inc. (the Company) to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) defend its patent; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings."
Contact:
Card Activation Technologies Inc.Robert H. Kite, 312-972-1662
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Card Activation Technologies Announces Dividend
Reuters is not responsible for the content in this press release.
Fri Mar 6, 2009 2:49pm EST
CHICAGO, March 6 /PRNewswire-FirstCall/ -- Card Activation Technologies, Inc.
(OTC Bulletin Board: CDVT) announces:
"The law firm of Orum & Roth LLC is engaged in a campaign to notify potential
infringers about Card Activation's patent. Notifying a party about the
existence of the patent is the first step in attempting to obtain a license
agreement. The firm is also engaged in performing due diligence to determine
the method used by each potential infringer and to document that method. The
firm then generally engages in communications about the patent either directly
with a party or with that party's outside counsel. The goal of the
communications is to obtain a voluntary license of the patent. In the event
that communications break down between the firm and the accused party, the law
firm then generally files an infringement lawsuit against the party in issue,"
said Mark Roth, patent infringement attorney with Orum & Roth LLC.
"We will dividend from all future settlements of Card Activation Technologies,
Inc. upon payment of all ordinary and necessary expenses and will reserve 20%
of the settlement to be used for future business ventures. The prospective
dividends, when available will be paid on a semi annual basis to shareholders
of record on the dividend date," said Michael De La Garza, CEO and President
of Card Activation Technologies, Inc.
Mr. De La Garza further states, "We are moving in a new business direction and
have engaged BFR Capital Group, LLC, a premier Investor Relations firm who
will be available for shareholders inquiry. To facilitate their efforts, they
have established a toll free number."
About Card Activation Technologies, Inc.
Card Activation Technologies, Inc. is a Chicago-based company that owns
proprietary patented payment transaction technology used for processing gift
cards, phone cards and other debit purchase transactions. The company is
actively seeking to license its technology to the thousands of current users
and believes that many retailers, gas stations, phone companies and others
that utilize those stored value cards, such as gift and debit, infringe its
patent. As a result, the company is aggressively pursuing litigation against
these infringements. The Federal Reserve Bank of Philadelphia estimated
prepaid card market to be valued in excess of $181.7 billion in transactions
in 2006. According to market forecasts, the prepaid industry will grow to
$421.5 billion by 2010. For further information about Card Activation
Technologies, Inc. go to www.cardactivationtech.com. MedCom USA, Incorporated
(OTC Bulletin Board: EMED) is a majority shareholder in Card Activation
Technologies, Inc. www.medcomusa.com
Certain statements in this press release that are not historical facts are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements may be identified by the use of
words such as "anticipate," "believe," "expect," "future," "may," "will,"
"would," "should," "plan," "projected," "intend," and similar expressions.
Such forward-looking statements involve known and unknown risks, uncertainties
and other factors that may cause the actual results, performance or
achievements of Card Activation Technologies, Inc. (the Company) to be
materially different from those expressed or implied by such forward-looking
statements. The Company's future operating results are dependent upon many
factors, including but not limited to the Company's ability to: (i) defend its
patent; (ii) build the management and human resources and infrastructure
necessary to support the growth of its business; (iii) competitive factors and
developments beyond the Company's control; and (iv) other risk factors
discussed in the Company's periodic filings with the Securities and Exchange
Commission, which are available for review at www.sec.gov under "Search for
Company Filings."
SOURCE Card Activation Technologies, Inc.
William E. Lane of BFR Capital Group, LLC, 1-888-955-9992, for Card Activation
Technologies, Inc.
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last 2011 quarter results...
CARD ACTIVATION TECHNOLOGIES INC - 10-K - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
December 02, 2011 Email Print Free Newsletter
Edgar Online, Inc.
The following is management's discussion and analysis of certain significant factors that have affected our financial position and operating results during the periods included in the accompanying financial statements, as well as information relating to the plans of our current management. This report includes forward-looking statements. Generally, the words "believes," "anticipates," "may," "will," "should," "expect," "intend," "estimate," "continue," and similar expressions or the negative thereof or comparable terminology are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, including the matters set forth in this report or other reports or documents we file with the Securities and Exchange Commission from time to time, which could cause actual results or outcomes to differ materially from those projected. Undue reliance should not be placed on these forward-looking statements which speak only as of the date hereof. We undertake no obligation to update these forward-looking statements.
The following discussion and analysis should be read in conjunction with our financial statements and the related notes thereto and other financial information contained elsewhere in this Form 10-K.
Overview
We own and commercially develop our patented method of processing debit purchase transactions, which include gift cards, phone cards and other stored value cards. Currently, our business strategy consists exclusively of attempting to enter into license agreements with third parties to license our rights under our '859 Patent and in pursuing patent litigation in an effort to protect our intellectual property and obtain recourse against alleged infringement of our '859 Patent. Our ability to continue to pursue licensing agreement and patent litigation to protect our intellectual property is subject to our pending appeals regarding the validity of the '859 Patent. If the pending appeals concerning the '859 Patent result in a favorable determination of validity, we intend to aggressively enforce our rights during the remaining life of the '859 Patent, and to seek royalty payments from all infringing parties until the '859 Patent expires in 2017.
Results of Operations
Fiscal Year Ended September 30, 2011, Compared to Fiscal Year Ended September 30, 2010
Revenues decreased 61.6% to $264,000 for the year ended September 30, 2011 from $687,500 for the year ended September 30, 2010. The decrease in revenues was due to lower settlement amounts in 2011 compared to 2010.
Operating expenses consist of cost of revenue, general and administrative expenses and sales and marketing costs.
Cost of revenue consists of contingency fees paid to legal counsel of 35% of settlement revenue in certain cases. Cost of revenue decreased 45.8% to $92,400 for the year ended September 30, 2011 from $170,625 for the year ended September 30, 2010 as a result of decreased revenue and the fact that all of our settlements are not subject to contingency fees.
7
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Table of Contents
General and administrative expenses consist of salaries and benefits, legal, professional and consulting fees, corporate costs, facilities cost, insurance, travel and entertainment. General and administrative costs decreased 3.3% to $1,796,459 for the year ended September 30, 2011 from $1,858,060 for the year ended September 30, 2010. This decrease was primarily due to a reserve for affiliate receivable in 2010 offset by increased legal fees, additional SEC filing costs and cost of raising capital.
Liquidity and Capital Resources
Our primary sources of liquidity are the sale of our common stock and cash generated from operations. We sold 4,562,103 shares of stock and issued 728,571 shares for previous subscription agreements for shares of our common stock and received four settlements during the year ended September 30, 2011. The Company's operating requirements have historically been funded from the sale of our common stock and litigation settlement revenue. Subject to the pending appeals regarding the '859 Patent discussed above, we expect our future operations will be funded from the litigation revenue settlements as well as revenues from licensing our technology. In addition, the Company is researching potential business combinations that would utilize our technology or enhance our strategy, although no such target acquisition has been identified.
In order to develop our business plan, we will require funds for working capital. We are attempting to raise additional working capital through the sale of equity, debt or a combination of equity and debt. We do not presently have any firm commitments for additional working capital and there are no assurances that such capital will be available to us when needed or upon terms and conditions which are acceptable to us. If we are able to secure additional working capital through the sale of equity securities, the ownership interests of our current stockholders will be diluted. If we raise additional working capital through the issuance of debt or additional dividend paying securities our future interest and dividend expenses will increase. If we are unable to secure additional working capital as needed, our ability to grow our sales, meet our operating and financing obligations as they become due and continue our business and operations could be in jeopardy.
The Company is currently being funded by the sale of its common stock and revenue from litigation settlements. Subject to the pending appeals regarding the '859 Patent discussed above, the Company anticipates increasing its sources of funds in the future by entering into license agreements with third parties to license the use of its '859 Patent. However, no such agreements have been entered into at this time, and the Company cannot predict when, if ever, it will enter into such agreements. Management anticipates that the Company's current funds will be able to sustain the Company through the next three to six months, at which point the Company may be required to seek additional financing through a financial institution or through the sale of equity, debt, or a combination of equity or debt, if the Company has not received additional funding through litigation settlements at that time. The Company does not have any contractual commitments that would be impacted by a loss of funding at this time.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements.
Critical Accounting Policies and Estimates
Our financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. As such, we are required to make estimates and assumptions about the effects of matters that are inherently uncertain. Those estimates and assumptions are derived and continually evaluated based on historical experience, current facts and circumstances, and changes in the business environment. However, actual results may sometimes differ materially from estimates under different conditions. We have summarized our significant accounting policies in Note 3 to our financial statements. Of the accounting policies, we believe the following may involve a higher degree of judgment and complexity.
8
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Table of Contents
Revenue Recognition
Revenue is recognized from litigation settlements received from companies that have violated our patented technology and is recorded upon receipt. Revenue is recognized from the receipt of royalties or licensing fees from the use of our patent technology and is recorded when sales are generated from third parties that have generated sales from the use of our technology. We have no licensing agreements executed that generate royalty payments at this time.
Other Considerations
There are numerous factors that affect the business and the results of its operations. Sources of these factors include general economic and business conditions, federal and state regulation of business activities, the level of demand for our product, and the ability to develop new products based on new or evolving technology and the market's acceptance of those products.
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Card Activation’s ’859 Patent Ruled Invalid
Posted By Kenneth G. Mages,on July 22nd,2011
July 22,2011 07:01 AM Eastern Daylight Time
Card Activation’s Opinion on Delaware Court Ruling.
Read more: http://nfcdata.com/blog/2011/07/22/card-activations-859-patent-ruled-invalid/#ixzz1i7e0DjSv
CHICAGO–(BUSINESS WIRE)–Card Activation Technologies Inc. (Pink Sheets:CDVT)—In the action pending in the United States District Court for the District of Delaware (the “Delaware Action”),the Court recently ruled that the ’859 Patent owned by Card Activation Technologies is invalid. This press release is intended to provide further information concerning the Court’s conclusions,its effects upon the ’859 Patent,and the circumstances facing the company at this juncture.
Initially,we disagree with the Court’s Order and continue the process of determining the issues for appeal,the likely effects of the Order on the pending reexamination of the ’859 Patent being conducted by the U.S. Patent and Trademark Office (“PTO”),and the likelihood of success in prevailing against adverse rulings by the Federal District Court and PTO. On January 3,2011,Judge Jordan from the Third Circuit Court of Appeals took over the case from presiding District Court Judge Stark in the Delaware Action. Shortly thereafter,the Court on its own raised a validity challenge to ’859 Patent based upon a defense known as Section 112. SVS had never previously raised this issue in the litigation between the parties. In 2010,the Third Circuit Court of Appeals determined that it was improper for a court to raise a defense on its own and then dismiss the claim on that defense. In our case,however,the Court’s Order did indeed invalidate claims of the ’859 Patent based upon a Section 112 defense first raised by the Court. The opinion neither cites the Third Circuit Court of Appeals’prior contrary position nor does it distinguish that opinion. We believe this to be one of several errors in the Order.
The claim construction previously given to the ’859 Patent was also changed in the Order. A claim construction was initially entered by Judge Stark on April 28,2010,and confirmed by Judge Farnan on June 3,2010,which we believed was very favorable. The changes made in the claim construction significantly alter the scope of the ’859 Patent and thus its susceptibility to prior art invalidation. The changes to the claim construction were the primary bases for the Court to invalidate the remaining claims of the ’859 Patent.
The Court also held that the prior art reference known as “MicroTrax”was indeed prior art even though SVS provided no corroborating evidence that the document was disseminated to the public prior to the filing of the ’859 Patent with the PTO. We believe the Court’s Order in this regard is directly contrary to over 100 years of Supreme Court precedent and numerous recent cases throughout the country.
We believe the Delaware Court’s Order contains numerous additional errors. However,we anticipate that the PTO will likewise make a final determination that the ’859 Patent is invalid. Consequently,we will be required to appeal in both the Delaware Action and the PTO reexamination proceeding.
The realities of Card’s financial status surely impact our ability to appeal these decisions. The costs of appeal,as well as the cost of maintaining an ongoing entity,are estimated to reach $750,000.00 over the next two years. It is also important to understand that success on appeal means the action will be returned to the Delaware District Court for further proceedings regarding the validity of the patent. It is also common for the Federal Circuit Court of Appeals to affirm a trial court’s ruling without written explanation.
Although we strongly disagree with the Court’s Order and what we presume will be the findings of the PTO,we are mindful of the economic realities facing the company at this juncture. A telephone conference has been scheduled for August 2,2011 at 9:00 AM PDT,dial in # 800-895-0198 Conference ID:CASUPDATE,in which President Bob Kite will answer questions concerning these important issues. Please bear in mind that we know,and expect,our adversaries to be listening on this call. Consequently,the company will not be inclined or able to fully disclose all of its strategies.
About Card Activation Technologies Inc.
Card Activation Technologies,Inc. is a Chicago-based company that owns the patent rights to a proprietary payment transaction method used for processing gift cards and other debit purchase transactions. The company is actively seeking to license its patent to the thousands of retailers,gas stations,phone companies and others that utilize the patented payment method.
For further information about Card Activation Technologies go to www.cardactivationtech.com.
Read more: http://nfcdata.com/blog/2011/07/22/card-activations-859-patent-ruled-invalid/#ixzz1i7dviFhA
DD CDVT .01 TO $ LAND IF THEY WIN APPEAL OR SETTLE PATENT DISPUTE
CDVT NEWS OUT, APPEAL FILED, SEEKING 3.7 BILLIONS IN CLAIMS FOR PATENT BREACH, .01 WILL BE MULTI DOLLARS IF APPEAL WON AND/OR SETTLEMENT SIGNED
http://finance.yahoo.com/news/Card-Activ...
Card Activation Files Its Opening Appeal Brief
Press Release: Card Activation Technologies Inc. – 48 minutes ago
CHICAGO--(BUSINESS WIRE)-- Card Activation Technologies Inc. (Pink Sheets: CDVT)—Card Activation Technologies, Inc. (“Card”) filed its opening brief of appellant in the United States Court of Appeals for the Federal Circuit on Thursday, December 29, 2011. Card is appealing from a July 2011 adverse ruling by the Federal District Court for the District of Delaware that invalidated its Patent.
About Card Activation Technologies Inc.
Card Activation Technologies, Inc. is a Chicago-based company that owns the patent rights to a proprietary payment transaction method used for processing gift cards and other debit purchase transactions. The company is actively seeking to license its patent to the thousands of current users and believes that many retailers, gas stations, phone companies and others that utilize those stored value cards, such as gift and debit cards, infringe its patent. As a result, the company is aggressively pursuing litigation against these infringers.
For further information about Card Activation Technologies go to www.cardactivationtech.com
Contact:
Card Activation Technologies Inc.
Robert H. Kite, 312-972-1662
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CDVT 0.01 mother of all bounce coming going to be epic imho read PENDING BILLION $ APPEAL NEWS AND OUTCOME, MARKET CAP JUST 1MILLION $, NO OR SMALL DILUTION, STABLE OS, LIMITED FLOAT, RUMORS ABOUT (UNCOVERABLE GIVEN VERY THIN EVEN IF GROWING VOLUMES) 40MLN SHARES SHORT, GOING TO BE EPIC RUN IN 2012 IMHO, BARRON'S ARTICLE AND INDEPENDENT APPRAISAL REPORT LINKS
www.cardactivationtech.com/index.php their patent for prepaid debit cards worth billions!!!
online.barrons.com/article/SB50001424052748704048804577082290891910560.html?mod=BOL_twm_col
CDVT 0.01 appeal news coming, a gamechanger, appeal worth billions, for real, limk
CDVT 0.01 GETTING HOTTER DAY AFTER DAY, VOLUMES PRECEED PRICES
CDVT .01 TO EXPLODE, APPEAL NEWS COMING DECEMBER 29TH, 3$ IN REQUESTED DAMAGES ACCORDING TO INDIPENDENT APPRAISAL LINK www.cardactivationtech.com/final-report.pdf if appeal rules positive cdvt will distribute any fund to commons shareholders,
CDVT 0.01 mm scrambling TO AVOID MASSIVE SHORT SELLING COVER DUE TO APPEAL NEWS END OF DECEMBER, 3$ PER SHARE IN REQUESTED DAMAGES VS NATIONAL US RETAILERS
...WHILE BARRON'S JUST HIGHLIGHTED CO' PATENT POTENTIAL
online.barrons.com/article/SB50001424052748704048804577082290891910560.html?mod=BOL_twm_col
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http://finance.yahoo.com/news/Card-Activ...
Card Activation Files Its Opening Appeal Brief
Press Release: Card Activation Technologies Inc. – 48 minutes ago
CHICAGO--(BUSINESS WIRE)-- Card Activation Technologies Inc. (Pink Sheets: CDVT)—Card Activation Technologies, Inc. (“Card”) filed its opening brief of appellant in the United States Court of Appeals for the Federal Circuit on Thursday, December 29, 2011. Card is appealing from a July 2011 adverse ruling by the Federal District Court for the District of Delaware that invalidated its Patent.
About Card Activation Technologies Inc.
Card Activation Technologies, Inc. is a Chicago-based company that owns the patent rights to a proprietary payment transaction method used for processing gift cards and other debit purchase transactions. The company is actively seeking to license its patent to the thousands of current users and believes that many retailers, gas stations, phone companies and others that utilize those stored value cards, such as gift and debit cards, infringe its patent. As a result, the company is aggressively pursuing litigation against these infringers.
For further information about Card Activation Technologies go to www.cardactivationtech.com
Contact:
Card Activation Technologies Inc.
Robert H. Kite, 312-972-1662
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CDVT .01 next weeks over .20 again, news coming, billions dollars news coming
CDVT 0.01 lots of volume, appeal decision soon, worth up to 3$ in requested damages, link
CDVT appeal news coming,damages requested woth up to 3billions, market cap 1m!!!
CDVT GOING TO THE MOON WITH APPEAL NEWS 12/29, PERFECT STORM!
CDVT highlited by Barron's, link, 0.016 vs 3$ in requested damages for patent breach, appeal pending
http://online.barrons.com/article/SB50001424052748704048804577082290891910560.html?mod=BOL_twm_col
A Gift-Card Christmas
By MARK VEVERKA | MORE ARTICLES BY AUTHOR
The favored form of electronic fund transfers—for gift givers, recipients and retailers: like any technology, they're attracting patent lawsuits.
Technology-based gifts will definitely stock Santa's sleigh this holiday, but not only in the form of tablets, game consoles and gadgets. The most interesting tech trend this holiday season will be the growing use of electronic funds transfer, or EFT, to pay for everything from clothes to televisions to airplane tickets.
Common forms of EFT, such as PayPal and BillMeLater, which are both owned by eBay (ticker: EBAY), and Google's (GOOG) Wallet, are popular with online shoppers. But the most popular form of EFT—for gift buyers, recipients and merchants—is the prepaid gift card.
According to a National Federation of Retailers survey, U.S. shoppers intend to spend an average of $155.43 on gift cards this holiday season, up from $145.61 last year. The total gift-budget per shopper is expected to be around $516, down from $541 last year.
In the NFR survey, gift cards were the top choice among those on the receiving end: 57.7% said they prefer gift cards to any other presents this year. Clothing came in second at 50%; books, CDs and other media (including software) were third at 44.4%; and computers and consumer electronics were fourth at 35.4%. Respondents were allowed to check more than one answer.
Consumers like gift cards because they are convenient and offer the recipient choice, but retailers like them even more. Prepaid cards lock customers into spending at specific stores and Websites.
What's more, retailers love gift cards because they operate outside of the banking system, where credit-card processing costs are significantly higher. EFT processing incurs small, fixed-transaction costs for retailers as opposed to a percentage of the sale transaction, which is the case with credit cards.
On top of that, retailers get to keep unclaimed revenue from unused gift cards, although they must honor the cards for up to five years, which is good news, given the number of $5 Cold Stone Creamery cards on my refrigerator door that my kids have yet to use.
Most retailers outsource their gift-card operations to third-party processors, such as First Data, Ceridian Stored Value Solutions, and Safeway (SWY). These companies tend to function more like IT operations than financial institutions because they control databases of information as opposed to cash.
The revenue is generally held by the retailer—who receives it right away but can't recognize it until a card is actually used. And not unlike other areas of technology, EFT technology is embroiled in patent warfare.
In recent months, the gift-card industry has scored a number of patent victories against nonpracticing entities, commonly known as "patent trolls." These companies typically acquire patents and attempt to collect royalties and licensing fees.
Shares of one so-called troll, Card Activation Technologies (CDVT), got whacked in July when a Federal court in Delaware ruled its patents invalid. Alan Fisch of Kaye Scholer in Washington represented the plaintiff, Ceridian. Card Activation has also been tangled in litigation with Macy's, Nordstrom, Barnes & Noble and others. Fisch doesn't expect gift-card patent battles to wane anytime soon. "Successful technologies attract patent litigation, which will remain a constant for some time," he says.
For now, at least, chalk one up for the elves against the trolls.
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CDVT .016 poised to epic bounce if appeal won! company will distribute funds to shareholders if appeal won, must read, market cap 1million $ vs 3£ in damages requested by management
CDVT .016 may be worth 3$ if appeal won, link to report
www.cardactivationtech.com/final-report.pdf
what investors are missing? must read, if appeal won, tons of money in...
CDVT .013 REPORT SAYS THEIR PATENTS WORTH 3$ PER SHARE, IMPOSSIBLE FIND SHARES ON THE MARKET, SUPER TINY ASK, IMHO SET TO REACH AT LEAST .15/.20 BEFORE APPEAL RULING DUE IN 2012
CDVT TO DA MOON FINALLY, MOST UNDERVALUED STOCK OF THE WORTLD, APPRAISAL TELLS 3$
CDVT .01 WILL DISTRIBUTE CASH DIVIDEND WHEN ANF IF SETTLEMENTS AND OR LICENSE AGREEMENTS REACHED, MUST READ
CDVT .01 WORTH UP TO 3$ ACCORDING REPORT, LINK
CDVT WILL DISTRIBUTE DIVIDENDS TWICE FOR YEAR WHEN AND IF SETTLEMENT AVAILABLE
CDVT 0.1 +200% short squeeze, successful appeal worth up to 3$
CDVT 0.01 mother of all short squeeze must read, ultrathin with major catalyst 10q out within days
no shares in the market, ask at 0.01/0.03/.10
if appeal against major retailers filed and won short sellers will need to cover up to 40 mln shares, daily volume equal to 0 up to 30/40k if lucky, lawyers ready to file appeal against retailers in fed circuit and uspto, they won the first and lose the second, now the final round.
CDVT traded around .10/.15 before negative verdict in july, if appeal won or settlement done, plenty of romm up to 3$
CDVT .01 FAIR VALUE 3$ IF APPEAL WON
MONSTER CDVT .01
FALLING PLENTY OF ROOM UP TO .03
CDVT must read, .01 no dilution, legal claims worth up to 3$$
CDVT .01 VS UP TO 3$ IN LEGAL CLAIMS, INVOLVED IN PATENT BATTLE AGAINST MAJOR US RETAILERS, UNIQUE OPPORTUNITY IMHO
CDVT 1.5MC VS 3.7 BILLION $ MORE IN CLAIMS FOR PATENT BREACH ultra low float, main shareholders own more than 50%, may be settlement agmts to come, I smell huge money
LINK TO OFFICIAL APPRAISAL REPORT
www.cardactivationtech.com/final-report.pdf
CDVT 0.01 ONE OF THE MOST UNDERVALUED STOCKS, LEGAL CLAIMS WORTH UP TO 3$
CDVT 0.01 WORTH 3$ IF APPEAL WON!!!!!!! ultrathin, CDVT .005 if they won appeal, worth up to 3$!!! debit card patents war player
CDVT .006 HUGE UP UP PATENTS WORTH UPTO 3$ BASED ON CLAIMS, APPEAL FILED
CDVT.0055 pending news, moving up, oversold, if appeal won they may get billions for their patent
CDVT finally gapping .02 in the radar, volumes means finally positive news
CDVT 0.01 alert, patents worth 3$, appeal filed to court CDVT .01 THE NEXT 100BAGGER, PATENTS WORTH BILLIONS!!!
MUST READ CDVT .0080/.0120 +25% PATENT WORTH BILLIONS PATENTS'WAR HUGE PLAYER, CDVT.PK, MUST READ
NOBRAINER CDVT.pk THEIR PATENTS USED BY 600+ CO'S 0,0080!!!!!!!!!!!!!!!!
www.cardactivationtech.com/index.php their patent for prepaid debit cards worth billions!!!
CDVT OWNS UNIQUE PATENTS WORTH BILLIONS, TRADING UNDER .01
50x CDVT 0.0080 huge suing USPTO and CO's for billions for patents breach
CDVT huge buying opp suing co's for billions, 0.016 vs 3$ claims!!!
CDVT .0080 huge news filed appeal worth up to 3$, link
co's suing hundreds of co's for patent breach, billions in damages requested!!!
finance.yahoo.com/news/Card-Activation-Files-Its-bw-1866058952.html?x=0&.v=1
Card Activation Files Its Notice of Appeal
{"s" : "cdvt.pk","k" : "a00,a50,b00,b60,c10,g00,h00,l10,p20,t10,v00","o" : "","j" : ""} Press Release Source: Card Activation Technologies Inc. On Friday August 5, 2011, 7:01 am EDT
CHICAGO--(BUSINESS WIRE)-- Card Activation Technologies Inc. (Pink Sheets:CDVT.pk - News)—Card filed its Notice of Appeal in the United States District Court for the District of Delaware on Thursday, August 4, 2011. This is the first step toward having its appeal heard in the United States Court of Appeals for the Federal Circuit, the exclusive jurisdictions for appeals relating to patent validity and infringement issues. Card is appealing from a July adverse ruling by the Delaware Court that invalidated its Patent.
About Card Activation Technologies Inc.
Card Activation Technologies, Inc. is a Chicago-based company that owns the patent rights to a proprietary payment transaction method used for processing gift cards and other debit purchase transactions. The company is actively seeking to license its patent to the thousands of current users and believes that many retailers, gas stations, phone companies and others that utilize those stored value cards, such as gift and debit cards, infringe its patent. As a result, the company is aggressively pursuing litigation against these infringers.
For further information about Card Activation Technologies go to www.cardactivationtech.com
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Card Activation Technologies, Inc. (the Company) to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) defend its patent; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings."
Contact:
Card Activation Technologies Inc.Robert H. Kite, 312-972-1662
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Card Activation Technologies Announces Dividend
Reuters is not responsible for the content in this press release.
Fri Mar 6, 2009 2:49pm EST
CHICAGO, March 6 /PRNewswire-FirstCall/ -- Card Activation Technologies, Inc.
(OTC Bulletin Board: CDVT) announces:
"The law firm of Orum & Roth LLC is engaged in a campaign to notify potential
infringers about Card Activation's patent. Notifying a party about the
existence of the patent is the first step in attempting to obtain a license
agreement. The firm is also engaged in performing due diligence to determine
the method used by each potential infringer and to document that method. The
firm then generally engages in communications about the patent either directly
with a party or with that party's outside counsel. The goal of the
communications is to obtain a voluntary license of the patent. In the event
that communications break down between the firm and the accused party, the law
firm then generally files an infringement lawsuit against the party in issue,"
said Mark Roth, patent infringement attorney with Orum & Roth LLC.
"We will dividend from all future settlements of Card Activation Technologies,
Inc. upon payment of all ordinary and necessary expenses and will reserve 20%
of the settlement to be used for future business ventures. The prospective
dividends, when available will be paid on a semi annual basis to shareholders
of record on the dividend date," said Michael De La Garza, CEO and President
of Card Activation Technologies, Inc.
Mr. De La Garza further states, "We are moving in a new business direction and
have engaged BFR Capital Group, LLC, a premier Investor Relations firm who
will be available for shareholders inquiry. To facilitate their efforts, they
have established a toll free number."
About Card Activation Technologies, Inc.
Card Activation Technologies, Inc. is a Chicago-based company that owns
proprietary patented payment transaction technology used for processing gift
cards, phone cards and other debit purchase transactions. The company is
actively seeking to license its technology to the thousands of current users
and believes that many retailers, gas stations, phone companies and others
that utilize those stored value cards, such as gift and debit, infringe its
patent. As a result, the company is aggressively pursuing litigation against
these infringements. The Federal Reserve Bank of Philadelphia estimated
prepaid card market to be valued in excess of $181.7 billion in transactions
in 2006. According to market forecasts, the prepaid industry will grow to
$421.5 billion by 2010. For further information about Card Activation
Technologies, Inc. go to www.cardactivationtech.com. MedCom USA, Incorporated
(OTC Bulletin Board: EMED) is a majority shareholder in Card Activation
Technologies, Inc. www.medcomusa.com
Certain statements in this press release that are not historical facts are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements may be identified by the use of
words such as "anticipate," "believe," "expect," "future," "may," "will,"
"would," "should," "plan," "projected," "intend," and similar expressions.
Such forward-looking statements involve known and unknown risks, uncertainties
and other factors that may cause the actual results, performance or
achievements of Card Activation Technologies, Inc. (the Company) to be
materially different from those expressed or implied by such forward-looking
statements. The Company's future operating results are dependent upon many
factors, including but not limited to the Company's ability to: (i) defend its
patent; (ii) build the management and human resources and infrastructure
necessary to support the growth of its business; (iii) competitive factors and
developments beyond the Company's control; and (iv) other risk factors
discussed in the Company's periodic filings with the Securities and Exchange
Commission, which are available for review at www.sec.gov under "Search for
Company Filings."
SOURCE Card Activation Technologies, Inc.
William E. Lane of BFR Capital Group, LLC, 1-888-955-9992, for Card Activation
Technologies, Inc.
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last 2011 quarter results...
CARD ACTIVATION TECHNOLOGIES INC - 10-K - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
December 02, 2011 Email Print Free Newsletter
Edgar Online, Inc.
The following is management's discussion and analysis of certain significant factors that have affected our financial position and operating results during the periods included in the accompanying financial statements, as well as information relating to the plans of our current management. This report includes forward-looking statements. Generally, the words "believes," "anticipates," "may," "will," "should," "expect," "intend," "estimate," "continue," and similar expressions or the negative thereof or comparable terminology are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, including the matters set forth in this report or other reports or documents we file with the Securities and Exchange Commission from time to time, which could cause actual results or outcomes to differ materially from those projected. Undue reliance should not be placed on these forward-looking statements which speak only as of the date hereof. We undertake no obligation to update these forward-looking statements.
The following discussion and analysis should be read in conjunction with our financial statements and the related notes thereto and other financial information contained elsewhere in this Form 10-K.
Overview
We own and commercially develop our patented method of processing debit purchase transactions, which include gift cards, phone cards and other stored value cards. Currently, our business strategy consists exclusively of attempting to enter into license agreements with third parties to license our rights under our '859 Patent and in pursuing patent litigation in an effort to protect our intellectual property and obtain recourse against alleged infringement of our '859 Patent. Our ability to continue to pursue licensing agreement and patent litigation to protect our intellectual property is subject to our pending appeals regarding the validity of the '859 Patent. If the pending appeals concerning the '859 Patent result in a favorable determination of validity, we intend to aggressively enforce our rights during the remaining life of the '859 Patent, and to seek royalty payments from all infringing parties until the '859 Patent expires in 2017.
Results of Operations
Fiscal Year Ended September 30, 2011, Compared to Fiscal Year Ended September 30, 2010
Revenues decreased 61.6% to $264,000 for the year ended September 30, 2011 from $687,500 for the year ended September 30, 2010. The decrease in revenues was due to lower settlement amounts in 2011 compared to 2010.
Operating expenses consist of cost of revenue, general and administrative expenses and sales and marketing costs.
Cost of revenue consists of contingency fees paid to legal counsel of 35% of settlement revenue in certain cases. Cost of revenue decreased 45.8% to $92,400 for the year ended September 30, 2011 from $170,625 for the year ended September 30, 2010 as a result of decreased revenue and the fact that all of our settlements are not subject to contingency fees.
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Table of Contents
General and administrative expenses consist of salaries and benefits, legal, professional and consulting fees, corporate costs, facilities cost, insurance, travel and entertainment. General and administrative costs decreased 3.3% to $1,796,459 for the year ended September 30, 2011 from $1,858,060 for the year ended September 30, 2010. This decrease was primarily due to a reserve for affiliate receivable in 2010 offset by increased legal fees, additional SEC filing costs and cost of raising capital.
Liquidity and Capital Resources
Our primary sources of liquidity are the sale of our common stock and cash generated from operations. We sold 4,562,103 shares of stock and issued 728,571 shares for previous subscription agreements for shares of our common stock and received four settlements during the year ended September 30, 2011. The Company's operating requirements have historically been funded from the sale of our common stock and litigation settlement revenue. Subject to the pending appeals regarding the '859 Patent discussed above, we expect our future operations will be funded from the litigation revenue settlements as well as revenues from licensing our technology. In addition, the Company is researching potential business combinations that would utilize our technology or enhance our strategy, although no such target acquisition has been identified.
In order to develop our business plan, we will require funds for working capital. We are attempting to raise additional working capital through the sale of equity, debt or a combination of equity and debt. We do not presently have any firm commitments for additional working capital and there are no assurances that such capital will be available to us when needed or upon terms and conditions which are acceptable to us. If we are able to secure additional working capital through the sale of equity securities, the ownership interests of our current stockholders will be diluted. If we raise additional working capital through the issuance of debt or additional dividend paying securities our future interest and dividend expenses will increase. If we are unable to secure additional working capital as needed, our ability to grow our sales, meet our operating and financing obligations as they become due and continue our business and operations could be in jeopardy.
The Company is currently being funded by the sale of its common stock and revenue from litigation settlements. Subject to the pending appeals regarding the '859 Patent discussed above, the Company anticipates increasing its sources of funds in the future by entering into license agreements with third parties to license the use of its '859 Patent. However, no such agreements have been entered into at this time, and the Company cannot predict when, if ever, it will enter into such agreements. Management anticipates that the Company's current funds will be able to sustain the Company through the next three to six months, at which point the Company may be required to seek additional financing through a financial institution or through the sale of equity, debt, or a combination of equity or debt, if the Company has not received additional funding through litigation settlements at that time. The Company does not have any contractual commitments that would be impacted by a loss of funding at this time.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements.
Critical Accounting Policies and Estimates
Our financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. As such, we are required to make estimates and assumptions about the effects of matters that are inherently uncertain. Those estimates and assumptions are derived and continually evaluated based on historical experience, current facts and circumstances, and changes in the business environment. However, actual results may sometimes differ materially from estimates under different conditions. We have summarized our significant accounting policies in Note 3 to our financial statements. Of the accounting policies, we believe the following may involve a higher degree of judgment and complexity.
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Table of Contents
Revenue Recognition
Revenue is recognized from litigation settlements received from companies that have violated our patented technology and is recorded upon receipt. Revenue is recognized from the receipt of royalties or licensing fees from the use of our patent technology and is recorded when sales are generated from third parties that have generated sales from the use of our technology. We have no licensing agreements executed that generate royalty payments at this time.
Other Considerations
There are numerous factors that affect the business and the results of its operations. Sources of these factors include general economic and business conditions, federal and state regulation of business activities, the level of demand for our product, and the ability to develop new products based on new or evolving technology and the market's acceptance of those products.
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Card Activation’s ’859 Patent Ruled Invalid
Posted By Kenneth G. Mages,on July 22nd,2011
July 22,2011 07:01 AM Eastern Daylight Time
Card Activation’s Opinion on Delaware Court Ruling.
Read more: http://nfcdata.com/blog/2011/07/22/card-activations-859-patent-ruled-invalid/#ixzz1i7e0DjSv
CHICAGO–(BUSINESS WIRE)–Card Activation Technologies Inc. (Pink Sheets:CDVT)—In the action pending in the United States District Court for the District of Delaware (the “Delaware Action”),the Court recently ruled that the ’859 Patent owned by Card Activation Technologies is invalid. This press release is intended to provide further information concerning the Court’s conclusions,its effects upon the ’859 Patent,and the circumstances facing the company at this juncture.
Initially,we disagree with the Court’s Order and continue the process of determining the issues for appeal,the likely effects of the Order on the pending reexamination of the ’859 Patent being conducted by the U.S. Patent and Trademark Office (“PTO”),and the likelihood of success in prevailing against adverse rulings by the Federal District Court and PTO. On January 3,2011,Judge Jordan from the Third Circuit Court of Appeals took over the case from presiding District Court Judge Stark in the Delaware Action. Shortly thereafter,the Court on its own raised a validity challenge to ’859 Patent based upon a defense known as Section 112. SVS had never previously raised this issue in the litigation between the parties. In 2010,the Third Circuit Court of Appeals determined that it was improper for a court to raise a defense on its own and then dismiss the claim on that defense. In our case,however,the Court’s Order did indeed invalidate claims of the ’859 Patent based upon a Section 112 defense first raised by the Court. The opinion neither cites the Third Circuit Court of Appeals’prior contrary position nor does it distinguish that opinion. We believe this to be one of several errors in the Order.
The claim construction previously given to the ’859 Patent was also changed in the Order. A claim construction was initially entered by Judge Stark on April 28,2010,and confirmed by Judge Farnan on June 3,2010,which we believed was very favorable. The changes made in the claim construction significantly alter the scope of the ’859 Patent and thus its susceptibility to prior art invalidation. The changes to the claim construction were the primary bases for the Court to invalidate the remaining claims of the ’859 Patent.
The Court also held that the prior art reference known as “MicroTrax”was indeed prior art even though SVS provided no corroborating evidence that the document was disseminated to the public prior to the filing of the ’859 Patent with the PTO. We believe the Court’s Order in this regard is directly contrary to over 100 years of Supreme Court precedent and numerous recent cases throughout the country.
We believe the Delaware Court’s Order contains numerous additional errors. However,we anticipate that the PTO will likewise make a final determination that the ’859 Patent is invalid. Consequently,we will be required to appeal in both the Delaware Action and the PTO reexamination proceeding.
The realities of Card’s financial status surely impact our ability to appeal these decisions. The costs of appeal,as well as the cost of maintaining an ongoing entity,are estimated to reach $750,000.00 over the next two years. It is also important to understand that success on appeal means the action will be returned to the Delaware District Court for further proceedings regarding the validity of the patent. It is also common for the Federal Circuit Court of Appeals to affirm a trial court’s ruling without written explanation.
Although we strongly disagree with the Court’s Order and what we presume will be the findings of the PTO,we are mindful of the economic realities facing the company at this juncture. A telephone conference has been scheduled for August 2,2011 at 9:00 AM PDT,dial in # 800-895-0198 Conference ID:CASUPDATE,in which President Bob Kite will answer questions concerning these important issues. Please bear in mind that we know,and expect,our adversaries to be listening on this call. Consequently,the company will not be inclined or able to fully disclose all of its strategies.
About Card Activation Technologies Inc.
Card Activation Technologies,Inc. is a Chicago-based company that owns the patent rights to a proprietary payment transaction method used for processing gift cards and other debit purchase transactions. The company is actively seeking to license its patent to the thousands of retailers,gas stations,phone companies and others that utilize the patented payment method.
For further information about Card Activation Technologies go to www.cardactivationtech.com.
Read more: http://nfcdata.com/blog/2011/07/22/card-activations-859-patent-ruled-invalid/#ixzz1i7dviFhA
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