ICOP Digital’s headaches mount: Nasdaq delists stock, partner demands payment
Kansas City Business Journal - by David Twiddy , Staff Writer
Date: Friday, January 14, 2011, 12:02pm CST Related:
Technology
ICOP Digital Inc. shares no longer are trading on the Nasdaq stock market, and one of its business partners is demanding thousands of dollars from the dormant company.
The Lenexa-based maker of video surveillance equipment for law enforcement and other security applications announced last month that it had laid off its 50-plus employees and suspended operations as executives sought to restructure ICOP’s finances and secure new capital financing.
On Jan. 7, ICOP disclosed that it had received a letter from Nasdaq officials warning that because of its situation, the company’s stock was on track to be delisted. The company had the option of appealing the decision, but apparently no hearing was requested, and the delisting occurred before trading Thursday.
The company now is trading on the highly speculative “over-the-counter” market, where its shares were worth a quarter each in Friday morning trading.
Also on Thursday, ICOP disclosed in a securities filing that FCC LLC, also called First Growth Capital, had sent a letter declaring ICOP in default of a 2008 agreement under which First Growth would buy the company’s accounts receivable, advancing ICOP the cash. In particular, First Growth Capital claims ICOP is in default of solvency, reporting, receivable quality and net-worth covenants.
The filing said First Growth could demand immediate repayment of all obligations and repossess collateral, which included the company’s commercial accounts receivable. As of Jan. 7, ICOP owed First Growth as much as $202,863, and First Growth held $478,530 in ICOP receivables available for collection, the filing said.
In the filing, ICOP officials said they disagreed with First Growth.
“We do not believe we are in payment default under the purchasing agreement, nor do we concur that we are in default of a number of the covenants described in the letter,” the filing said.
Neither CEO David Owen nor other company officials returned repeated phone calls for comment.
News 
Market Data 
Discover 
