BRK Inc (OTCBB:BRKK), established in 2008, is a cutting edge sports and entertainment marketing company. With the acquisition of the live-broadcast helmet camera patents, BRK is poised to enter sports marketing in a big way.
The RefCam was first used professionally by referees during the NHL All-Star Game in January 2016 in Nashville TN, debuting to an audience of 1.8 million viewers.
The patents give BRK Inc. the exclusive right to integrate a camera into any type of helmet – meaning BRK now has an exclusive in the industry.
The first product introduced using this technology was the RefCam HD-I. The RefCam HD-I is a professional broadcast quality high definition (HDTV) camera and video transmitter, integrated into a compact wearable unit. The RefCam is designed for live broadcast applications, using professional optics and state of the art transmitters. It differs from other prosumer strap-on sports cameras in image quality, transmission reliability, and doesn’t require bulky battery packs. The easy to use clip on battery module gives users over an hour of continuous use and can easily be replaced during play. The integrated camera and electronics transmits directly to live broadcast equipment for incorporation into the live TV broadcast programming. The entire unit is only 2 inches by 6 inches and easily integrates into the helmet worn by referees, providing a point of view never before seen on professional TV sports broadcasts.
The RefCam was first used professionally by referees during the NHL All Star game in January 2016 in Nashville TN, debuting to an audience of 1.8 million viewers.
Pardon us while we tidy up - watch for our new website, coming soon.
Call from the CEO
Hello to all BRK shareholders and thank you for taking the time to listen to this informative call. The purpose of this call is to share with everyone the restructuring steps that are planned. I will discuss the reasoning for the separation of current and future litigation from the forthcoming business operations. I will explain the status of the litigations and why it would be a good time to separate this activity from operations. And finally, I will provide a high-level forecast of what to expect in the New Year with respect to business operations.
Current Legal Action - $2.5M Judgement
To recap, the $2.5M judgement that BRK was awarded was against iSee Automation, a Canadian Company. Although iSee Automation also has a US business and address, we found out during the enforcement process that it is in fact a separate US entity and business. Since this business was not the one who was a party to the Agreements that were initially executed with BRK then our legal team informed us that they could not enforce the judgement against it. Our next step was to have the US judgement enforceable in Canada so that we could go after the Canadian iSee Automation Company. In order to do this, BRK was required to file a new action in Canada, which it did. The Canadian iSee Automation has since been noted in Default and BRK is waiting for a court date to have the judgement officially awarded by the Canadian courts. Once this is in hand, BRK will then be able to start enforcement procedures against iSee Automation in Canada to recuperate as much as possible of the $2.5M judgement in USD not CAD.
Future Litigation - $25M
During this process, BRK was aware that the Principle owner of iSee Automation, the one who executed the agreements with BRK, had formed a new company in Canada and continued to use and profit from the technology that he had previously sold to BRK. That new company, along with a Canadian media entity, ignored numerous communications and warnings made by BRK to cease and desist their actions. By neglecting these warnings, they continued to inflict damage on BRK and its shareholders and therefore, will all be named in the upcoming new litigation. This new litigation will also serve to pierce all the corporate veils that have been put in place to shield the parties. It will permit BRK to go after the US iSee Automation company and any other companies that were subsequently formed including their Officers and Directors. To that end, BRK has been working with a top and reputable IP law firm in Canada and also with an international litigation financing company, with the aim of having the new litigation financed by them and not at the expense of shareholders. This financing would still allow BRK to receive between 70% and 80% of all the funds collected. BRK is aiming to have the new litigation filed in the courts before the end of the year and will post the State of Claims on its website so that shareholders can obtain a better understanding of BRK’s position moving forward.
Separation of Litigation and Business Operations
For these reasons, BRK expects the new litigation to take on a life of its own. The position that BRK is taking against the various parties is quite serious and will require its full time and attention to make sure that it defends its position to the fullest. Therefore, management does not want to have this one-off activity, albeit one that can produce significant proceeds, distract from its ultimate goal which is to re-enter the marketplace with a new and disruptive technology. It is therefore management’s belief that the timing is right to start the process to separate what is viewed as two distinct and separate activities.
How the Separation will be Structured
BRK will form a new public entity, which will be done by filing a Form 10 and registration with the SEC. The new entity will be a reporting issuer 60 days after the filing. Once the SEC has completed its review, Management will issue every shareholder of BRK shares in the new entity. BRK shareholders will not be required to choose between the two entities, they will own shares in both. The calculation for issuing shares in the new entity will be determined at a later point in time once the process nears completion. All shareholders of BRK will be treated equally and everyone will become shareholders in both entities. BRK management has already started this process but the timing for completion is still hard to predict at this moment. The commitment has been made and updates will be provided as the process continues to move along.
Impending Business Operations
The timing for this change in structure is ideal because management is getting ready to file new patents for its Gen2 technology. The first filing will be for a provisional patent that will describe the entire system. Then there will be at least two dozen divisional patents stemming from it. Once the provisional patent has been filed, management will be working directly with a few professional sports leagues to develop new cameras for them. We are currently under NDA with a couple of leagues so information will be made public once the development contracts have been executed. A Copy of the provisional patent or link to it will also be made available to shareholders in due course. The new technology will permit us to establish our new business model, which is a full-service provider geared to professional leagues and athletes that will allow fans to watch them in action from incredible perspectives that do not exist today. Our niche is that we are a second screen content provider that does not pose a threat to first screen media but rather we provide the opportunity to pioneer complimentary content and campaigns. Our technology is designed to work seamlessly with existing broadcasting and communications network but we also bring an unprecedented amount of viewer controls directly to the consumers through our own platform. These are controls that they are accustomed to having while playing video games like controlling the span and visibility of the field, freezing frames, 360 view and so on, all from their phone or laptop and whether they are live at the event or from home.
Value Proposition for doing this
A final note from Mr. Michael Kovacocy, special advisor on strategic and capital restructuring. He says, As Daniel has explained, we have come to an important point where management activities, focus and capital have to be clearly allocated to where shareholder value will be best served. It has become increasingly apparent over the last several weeks that a number of key operational initiatives are being held back due to management’s continued efforts to draw to a successful conclusion its legacy litigation claims and by the continued efforts to address and optimize the capital structure of BRK Inc. The creation of two separate entities will allow that important litigation and collection activity to continue unabated with all facets of the previously announced strategy - share buyback in particular - proceeding unabated. During the course of 2020, we anticipate having a cleaned-up capital structure reflecting 700M to 300M outstanding share count, aiming for the bottom of this range, in the current BRK Inc. Against this new capital structure, we anticipate having collected material sums of the original $2.5m judgement in 2020. As for the newly formed operations entity, we expect to have a capital structure of between 50m to 150m shares. We anticipate that a share dividend of a ratio of 40:1 will provide shares in new operations entity for holders of record of BRK. Furthermore, we anticipate offering rights to current BRK shareholders to purchase additional discounted shares above and beyond their pro rata share dividend. We believe that our plans put current BRK shareholders in the best position possible to benefit from a tremendous 2020 where we can finally turn the corner and deliver value for our loyal shareholders. Thank you for your confidence and patience.
Questions? Email [email protected].