LAKE FOREST, Calif., May 19, 2014 /PRNewswire/ -- Comarco, Inc. (OTC: CMRO.PK) (the "Company") today announced that on May 15, 2014, the Company executed a definitive settlement agreement (the "Agreement") ending its previously reported litigation with Chicony Power Technology, Co. Ltd ("Chicony"). The Agreement requires Chicony to pay Comarco a total of $7.6 million. The cash settlement amount is being paid in two installments of $4.0 million and $3.6 million. The Company received the first installment on May 16, 2014, in accordance with the Agreement. The second installment is to be paid on June 2, 2014. The Agreement does not become effective until the Company receives the second payment.
The settlement provides Comarco with a capital infusion sufficient to recapitalize its balance sheet and enables the company to advance its ongoing intellectual property enforcement efforts. As previously disclosed, Comarco has initiated litigation alleging breach of contract and patent infringement against Targus, and has previously provided written notice to additional companies alleging infringement of portions of the Company's 48 patent portfolio covering a variety of mobile charging solutions.
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This press release contains statements relating to our future plans, strategies and developments that are based on our current beliefs and assumptions. These statements constitute "forward-looking statements" within the meaning of federal securities laws. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "could," "may," "should," and similar expressions or variations of such words are intended to identify forward-looking statements, but are not deemed to represent an all-inclusive means of identifying forward-looking statements as denoted in this release. Additionally, statements concerning future matters are forward-looking statements.
Although forward-looking statements in this release reflect the good faith judgment of our management, such statements are only based on facts and factors known by us as of the date of this release. Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those specifically addressed in the section entitled "Risk Factors" in our Annual Report on Form 10-K of the fiscal year ended January 31, 2013, and in our other filings with the Securities and Exchange Commission. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release, whether as a result of new information, future events or otherwise, except as required by law.
Based in Lake Forest, Calif., Comarco develops technologies and products for the charging of portable battery powered devices. Our products are aimed at the mobile user and charge a multitude of devices ranging from laptop computers, tablets, mobile phones, smart phones as well as many other devices. Our extensive portfolio of 48 U.S. patents and a number of foreign patents is the result of years of research and development programs to provide charging solutions for portable electronic devices to original equipment manufacturers and retail outlets. Comarco continues to develop new technologies and expand its patent portfolio, and has commenced efforts to enhance shareholder value through the monetization of this significant corporate asset. The Company's Web sites can be found at www.comarco.com and www.chargesource.com.
SOURCE Comarco, Inc.