Presto escalates activities to collect up to $11.1M of non-dilutive cash awarded to the company from XAC in Singaporean ruling
05 Dicembre 2023 - 2:30PM
Presto Automation Inc. (Nasdaq: PRST) today announced it is
escalating its activities to act on a previously reported (June
2022) favorable arbitration ruling from the Singapore International
Arbitration Center related to a matter with its third-party
subcontractor, XAC Taiwan, with respect to the legacy tablets used
in its Touch business. Pursuant to the ruling, Presto was awarded
approximately $11.1 million in damages.
This arbitration ruling was affirmed on March 28,
2023 by the High Court in Singapore. The vendor appealed the ruling
to the Singapore Court of Appeal, which is now scheduled to be
heard in January 2024. This decision will be the vendor's
last chance to attempt to set aside the arbitration
ruling. In conjunction, Presto is actively involved in local
court procedures in Taiwan, a "domestication" process that is
required in the vendor's home jurisdiction to enforce the
international damages award. This process may take another 12
to 18 months to domesticate the arbitration ruling in Taiwan. The
vendor has limited defenses to such domestication and enforcement,
provided that Singapore Court of Appeal rules against
it.
“We are owed $11M and intend to pursue every last
dollar awarded to us from XAC as soon as possible, given that the
ruling and first appeal went in our favor and that the final appeal
is now going to be held in January. This is non-dilutive cash
Presto can put to good work in 2024,” said Presto Chairman Krishna
Gupta. “The legacy tablets developed by XAC caused significant harm
to our Touch business and, while our new generation of tablets are
built with a larger vendor, we must collect what we are owed from
the past. We are escalating our engagement with XAC with, among
other options, an offer to reach a negotiated settlement in order
for us to collect maximal non-dilutive cash in 2024.”
About Presto Automation Inc.
Presto (NASDAQ: PRST) provides enterprise-grade AI
and automation solutions to the restaurant industry. Our solutions
are designed to decrease labor costs, improve staff productivity,
increase revenue, and enhance the guest experience. We offer our AI
solution, Presto Voice™, to quick service restaurants (QSR) and our
pay-at-table tablet solution, Presto Touch, to casual dining
chains. Some of the most recognized restaurant names in the United
States are among our customers, including Carl’s Jr., Hardee’s, and
Checkers for Presto Voice™ and Applebee’s, Chili’s, and Red
Lobster for Presto Touch.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended (the “Securities Act”), and Section 21E of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”).
Statements that refer to projections, forecasts or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking statements.
Forward-looking statements are typically identified by words such
as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,”
“estimate,” “forecast,” “project,” “continue,” “could,” “may,”
“might,” “possible,” “potential,” “predict,” “should,” “would” and
other similar words and expressions, but the absence of these words
does not mean that a statement is not forward-looking.
The forward-looking statements are based on
management’s current expectations and assumptions about future
events and are based on currently available information as to the
outcome and timing of future events. The forward-looking statements
speak only as of the date of this press release or as of the date
they are made. Except as otherwise required by applicable law,
Presto disclaims any duty to update any forward-looking statements,
all of which are expressly qualified by the statements in this
section, to reflect events or circumstances after the date of this
press release. Presto cautions you that these forward-looking
statements are subject to numerous risks and uncertainties, most of
which are difficult to predict and many of which are beyond the
control of Presto. In addition, Presto cautions you that the
forward-looking statements contained in this press release are
subject to the following risks and uncertainties: our ability to
manage our growth effectively, to sustain our recent revenue growth
or attract new customers; the limited operating history with our
new Voice products in a new and developing market; our ability to
roll out new locations within a specified amount of time; our
ability to achieve revenue growth while our expenses increase;
continued adverse impacts from COVID-19 (including as a result of
global supply chain shortages); the loss of any of our three
largest customers or a reduction in their business with us; our
ability to improve and enhance the functionality, performance,
reliability, design, security, or scalability of our platform to
respond to customers’ evolving needs; our ability to protect the
security of our customers’ information; changing privacy laws,
regulations and standards, and our ability to comply with
contractual obligations and laws related to data privacy and
security; unfavorable conditions in the restaurant industry or the
global economy, including with respect to food, labor, and
occupancy costs; the availability of capital or financing on
acceptable terms, if at all; financial covenants and other
restrictions on our actions contained in our financing agreements
that may limit our operational flexibility; the length and
unpredictability of our sales cycles and the amount of investments
required in sales efforts; material weaknesses in our internal
control over financial reporting and, our ability to remediate
these deficiencies; our ability to continue as a going concern; our
ability to receive additional financing in a timely manner;
shortages, price increases, changes, delays or discontinuations of
hardware; our ability to maintain relationships with our payment
processors; our relies on computer hardware, licensed software and
services rendered by third parties; U.S. laws and regulations
(including with respect to payment transaction processing), many of
which are unsettled and still developing, and our or our customers’
ability to comply with such laws and regulations; significant
changes in U.S. and international trade policies that restrict
imports or increase tariffs; any requirements to collect additional
sales taxes or be subject to other tax liabilities that may
increase the costs to our customers; our ability to adequately
protect our intellectual property rights; claims by third parties
of intellectual property infringement; our use of open-source
software in our platform; and other economic, business, competitive
and/or regulatory factors affecting Presto’s business generally as
set forth in our filings with the Securities and Exchange
Commission.
ContactInvestors:Krishna Guptainvestor@presto.com
Media:Brian Rubymedia@presto.com
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