SSP Solutions Inc. ended its development agreement with Wave Systems Corp. by agreeing to issue 1.6 million common shares and a $270,000 non-interest-bearing note convertible into SSP shares in a settlement.
As a result of the settlement, Irvine-based SSP Solutions expects to record a gain of about $1.2 million in its third quarter and to remove $3.3 million in liabilities from its balance sheet.
In a press release Tuesday, SSP said the settlement will improve working capital and increase stockholders' equity, and is one of several moves during the third quarter to improve its balance sheet and lower operating costs.
SSP expects to issue third-quarter results on or before Nov. 15. The company reported a loss of 52 cents a share in the year-ago period.