The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

PARKERVISION, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

PARKERVISION, INC.

CONDENSED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. Description of Business

ParkerVision, Inc. and its wholly-owned German subsidiary, ParkerVision GmbH (collectively “ParkerVision”, “we” or the “Company”), is in the business of innovating fundamental wireless hardware technologies and products.

We have designed and developed a consumer distributed Wi-Fi product line that is being marketed under the brand name Milo™.  We also design, develop and market our proprietary radio frequency (“RF”) technologies and integrated circuits based on those technologies, and we license those technologies to others for use in semiconductor circuits for wireless communication products, includingproducts.  We have expended significant financial and other resources to research and develop our own internally developed products.RF technologies and to obtain patent protection for those technologies in the United States of America (“U.S.”) and certain foreign jurisdictions.  We believe certain patents protecting our proprietary technologies have been broadly infringed by others, and therefore the primary focus of our business plan includesis the enforcement of our intellectual property rights through patent licensing and infringement litigation efforts.  We currently have patent enforcement actions ongoing in various U.S. district courts against mobile handset, smart television and licensing efforts.    other WiFi product providers, as well as semiconductor suppliers, for the infringement of a number of our RF patents.  We have made significant investments in developing and protecting our technologies.

2. Liquidity and Going Concern

Our accompanying condensed consolidated financial statements were prepared assuming we would continue as a going concern, which contemplates that we will continue in operation for the foreseeable future and will be able to realize assets and settle liabilities and commitments in the normal course of business.  These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that could result should we be unable to continue as a going concern.

We have incurred significant losses from operations and negative cash flows in every year since inception and have utilized the proceeds from the sales of our equity securities and contingent funding arrangements with third-parties to fund our operations, including the cost of litigation.  For the ninethree months ended September 30, 2017,March 31, 2023, we incurred arecognized net lossincome of approximately $12.9$13.1 million and negative cash flows from operations of approximately $11.0$13.2 million.  At September 30, 2017,March 31, 2023, we had cash and cash equivalents, excluding restricted cash, of approximately $0.1 million and an accumulated deficit of approximately $365$430.1 million.  These circumstances raise substantial doubt aboutWe had restricted cash of approximately $13.9 million at March 31, 2023, all of which was used to make a repayment on our ability to continue to operate as a going concern within one year following the issue date of these condensed consolidated financial statements.secured contingent payment obligation in May 2023.   

At September 30, 2017,For the three months ended March 31, 2023, we had cash, cash equivalents,received aggregate net proceeds from debt and available-for-sale securitiesequity financings of approximately $0.4 million and restricted cash equivalents of approximately $0.2$0.8 million. We began shipments of our Milo Wi-Fi product line in October 2017.  Although we anticipate revenues and margin generated by this consumer product will begin to offset our operating costs in the fourth quarter of 2017, the revenues and margins generated in the short-term will not be sufficient to fully fund our operations without the need for additional working capital.

In August 2017, On May 4, 2023, we entered into an At-Market Issuance Sales Agreement (“ATM”)a confidential letter agreement with FBR Capital Markets & Co. for the sale ofBrickell whereby Brickell provided $5.0 million in new funding to us on substantially similar repayment terms as those set forth in our common stock having an aggregate offering price of upexisting contingent payment agreement, but at a lower interest rate.   These proceeds will be used to $4.4 million.support our operations.  We sold 0.64 million shares ofbelieve our common stock for net proceeds of approximately $1.0 million under this agreement as of September 30, 2017 and had approximately $3.2 million remaining available under the ATM which we intend to use to fund our short-term workingcurrent capital needs.

Our abilityresources are sufficient to meet our liquidity needs for at least the next twelve months is dependent upon (i) our ability to develop, market and sell existing and new products; (ii) our ability to successfully negotiate licensing agreements and/or settlements relating to the use of our technologies by others in excess of our contingent payment obligations; and/or (iii) our ability to obtain additional debt or equity financing.  We expect that revenue generated from product sales, patent enforcement actions, and technology licenses over the next twelve months may not be sufficient to cover our working capital requirements.   In the event we do not generate sufficient revenues to cover our operational costs and contingent repayment obligations, we willnot be required to use available working capital and/or raiseseek additional working capital through the sale of equity securities or other financing arrangements.capital.  

We expect to continue to invest in the support of our patent prosecutionlicensing and enforcement product development,program.  A significant amount of future proceeds that we may receive from our patent licensing and sales, marketing,enforcement program will be first utilized to repay borrowings and customer support forlegal fees and expenses under our technologies and products.contingent funding arrangements.  The long-term continuation of our business plan is dependent upon the generation of sufficient revenuescash flows from our technologies and/or products to offset expenses and contingent paymentdebt obligations.  In the event that we do not generate sufficient revenues,cash flows, we will be required to obtain additional funding through public or private debt or equity financing or contingent fee arrangements and/or reduce operating costs.  Failure to generate sufficient revenues,cash flows, raise additional capital through debt or equity financings or contingent fee arrangements, and/or reduce operating costs will have a material adverse effect on our ability to meet our long-term liquidity needs and achieve our intended long-term business objectives.

3. Basis of Presentation

The accompanying unaudited condensed consolidated financial statements for the period ended September 30, 2017March 31, 2023 were prepared in accordance with accounting principles generally accepted in the United States of Americaaccounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q10-Q and Rule 10-0110-01 of Regulation S-X.S-X.  Operating results for the three and nine months ended September 30, 2017March 31, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 20172023, or future years.  Certain reclassifications have been made to prior period amounts to conform to the current period presentation.  All normal and recurring adjustments which, in the opinion of management, are necessary for a fair statement of the consolidated financial condition and results of operations have been included.

The year-end condensed consolidated balance sheet data was derived from audited financial statements for the year ended December 31, 2016, but does not include all2022.  Certain information and disclosures required by GAAP.normally included in the notes to the annual financial statements prepared in accordance with GAAP have been omitted from these interim condensed consolidated financial statements.  These interim condensed consolidated financial statements should be read in conjunction with our latest Annual Report on Form 10-K10-K for the year ended December 31, 2016.  2022 (“2022 Annual Report”).

The condensed consolidated financial statements include the accounts of ParkerVision, Inc. and its wholly-owned German subsidiary, ParkerVision GmbH, after elimination of all intercompany transactions and accounts.

4. Accounting Policies

There have been no changes in accounting policies from those stated in our 2022Annual Report on Form 10-K for the year ended December 31, 2016, except as follows:

Recent Accounting Pronouncements

In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting.  This update provides guidance on the types of changes to the terms or conditions of share-

based payment awards to which an entity would be required to apply modificationReport.  We do not expect any newly effective accounting under ASC 718. The new standard is effective for annual periods beginning after December 15, 2017 and interim periods within those years. Early adoption is permitted. The adoption of this guidance is not expectedstandards to have a material effectimpact on our consolidated financial statements.position, results of operations or cash flows when they become effective. 

5. Revenue

In February 2016, the FASB issued ASU 2016-02 “Leases,” to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements.    Under the new guidance, a lessee will be required to recognize assets and liabilities for capital and operating leases with lease terms of more than 12 months.  ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018.  Early adoption is permitted.  We are currently assessing the impact of this update on our consolidated financial statements. We have identified all existing operatingan active monitoring and financing leases and areenforcement program with respect to our intellectual property rights that includes seeking appropriate compensation from third parties that utilize or have utilized our intellectual property without a license.  As a result, we may receive payments as part of a settlement or in the processform of determining the present value of existing lease assets and liabilities under the new guidance.court-awarded damages for a patent infringement dispute.  We are also currently formalizing processes and controls to identify, classify and measure new leasesrecognize such payments as revenue in accordance with ASU 2016-02.  The impact of ASU 2016-02 on our consolidated financial statements is currently being evaluated.

In May 2014, the FASB issued ASU 2014-09,“RevenueAccounting Standards Codification (“ASC”) 606, “Revenue from Contracts with Customers.”  ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue.  This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized.    ASU 2015-14, “Revenue from Contracts with Customers (Topic 606)”, issued in August 2015, defers adoption of ASU 2014-09 to annual reporting periods beginning after December 15, 2017.  Early adoption is not permitted.  We do not expect the adoption of ASU 2014-09 to have a material effect on our consolidated financial statements.

5.  LossWe recognized $25.0 million of revenue during the three-month period ended March 31, 2023 from patent license and settlement agreements with third parties for their use of our technologies.  Our performance obligations were satisfied, and therefore revenue recognized, upon transfer of the licensed rights and dismissal of all patent enforcement actions between the parties.  No revenue was recognized during the three months ended March 31, 2022. 

6. Earnings per Common Share

Basic lossearnings per common share is determined based on the weighted-average number of common shares outstanding during each period. 

The dilutive effect of outstanding options and warrants is calculated using the treasury stock method.  The dilutive effect of shares underlying convertible notes was calculated using the if-converted method.

The following table shows the computation of basic and diluted earnings per share for the three months ended March 31, 2023 and 2022 (net income and shares in thousands):

Diluted lossearnings per common share isfor the same as basic loss per common share as allthree months ended March 31, 2023 and 2022 excludes options and warrants that are anti-dilutive.  The anti-dilutive common share equivalents are excluded from the calculation,at March 31, 2023 and 2022 were as their effect is anti-dilutive.follows (in thousands):

7. Cash, Cash Equivalents and Restricted Cash

OptionsCash, cash equivalents and warrantsrestricted cash of $14.06 million as of March 31, 2023, consists of $0.135 million of cash and cash equivalents and $13.925 million in restricted cash.  Restricted cash represents cash held in escrow by our attorneys designated for repayment of principal on our secured contingent debt obligation.  These restricted funds were released from escrow and remitted to purchase approximately 1.4 million and 1.0 million shares of common stock were outstanding at September 30, 2017 and 2016, respectively.  In addition, unvested restricted stock units (“RSUs”), representing approximately 0.6 million and 0.3 shares of common stock were outstanding at September 30, 2017 and 2016, respectively.   These options, warrants and RSUs were excluded from the computation of diluted loss per common share as their effect would have been anti-dilutive.Brickell in May 2023.   

8. Prepaid Expenses

6.  Inventories

Inventories consistedPrepaid expenses consist of the following (in thousands):

7.   Prepaid Expenses and Other

Prepaid expensesservices at March 31, 2023 and other consistDecember 31, 2022 include approximately $0.2 million and $0.2 million, respectively of consulting services paid in shares of stock or warrants to purchase shares of stock in the following (in thousands): 

future.

8.9. Intangible Assets

Intangible assets consist of the following (in thousands):

10. Debt

Related Party Note Payable

We have an unsecured promissory note of approximately $0.6 million payable to Sterne, Kessler, Goldstein, & Fox, PLLC (“SKGF”), a related party, for outstanding unpaid fees for legal services.  In 2022, SKGF agreed to amend the note in order to change and extend the final balloon payment due under the note from April 2023 to April 2027.  The SKGF note, as amended, will continue to accrue interest at a rate of 4% per annum, requires monthly payments of principal and interest of $12,500 with a final balloon payment of approximately $0.02 million in April 2027.  We are currently in compliance with all the terms of the note. 

Convertible Notes

Our convertible notes represent 5-year promissory notes that are convertible, at the holders’ option, into shares of our common stock at fixed conversion prices.  Interest payments are made on a quarterly basis and are payable, at our option, subject to certain equity conditions, in either cash, shares of our common stock, or a combination thereof.  The number of shares issued for interest is determined by dividing the interest payment amount by the closing price of our common stock on the trading day immediately prior to the scheduled interest payment date.  To date, all interest payments on the convertible notes have been made in shares of our common stock. We have recognized the convertible notes as debt in our condensed consolidated financial statements.

We have the option to prepay the majority of the notes, subject to a premium on the outstanding principal prepayment amount of 25% prior to the two-year anniversary of the note issuance date, 20% prior to the three-year anniversary of the note issuance date, 15% prior to the four-year anniversary of the note issuance date, or 10% thereafter.  The notes provide for events of default that include failure to pay principal or interest when due, breach of any of the representations, warranties, covenants or agreements made by us, events of liquidation or bankruptcy, and a change in control.  In the event of default, the interest rate increases to 12% per annum and the outstanding principal balance of the notes plus all accrued interest due may be declared immediately payable by the holders of a majority of the then outstanding principal balance of the notes.

For the three months ended March 31, 2023, convertible notes with a face value of $0.2 million were converted, at the option of the holder, into approximately 1.5 million shares of our common stock.  For the three months ended March 31, 2023, we recognized interest expense of approximately $0.1 million related to the contractual interest on our convertible notes which we elected to pay in shares of our common stock and issued approximately 428,000 shares of our common stock as interest-in-kind payments.

In January 2023, we issued 5-year convertible notes with an aggregate face value of $0.7 million to accredited investors.  The notes have a conversion price of $0.16 per share.  The shares underlying the notes, as well as shares reserved for future in-kind interest payments on the notes, were registered on a registration statement that was declared effective on May 11, 2023 (File No.333-271351).

Convertible notes payable at March 31, 2023 and December 31, 2022 consist of the following (in thousands):

At March 31, 2023, we estimate our convertible notes have an aggregate fair value of approximately $3.8 million and would be categorized within Level 2 of the fair value hierarchy.

9.  Secured Contingent Payment Obligation

The following table provides a reconciliation of our secured contingent payment obligation, measured at estimated fair market value, for the three months ended March 31, 2023 and the year ended December 31, 2022 (in thousands):

Our secured contingent payment obligation represents the estimated fair value of our repayment obligation to Brickell Key Investments, LP (“BKI”Brickell”) under a February 2016 funding agreement, as amended in May 2016.  Under the agreement, we received aggregate proceeds of $13 million in exchange for BKI’s right to reimbursement and compensation from gross proceeds resulting from patent enforcement and other patent monetization actions. 

BKIamended.  Brickell is entitled to priority paymentpayments of 100% of proceeds received by us from all patent-related actions, after deduction of legal contingent fees, until such time that Brickell has been repaid its remaining principal.  As of March 31, 2023, Brickell's remaining principal was approximately $14.7 million.In May 2023, we repaid approximately $13.9 million of principal and borrowed an additional $5.0 million under the agreement, leaving $5.8 million in remaining outstanding principal.  After repayment of principal, Brickell is entitled to a portion of remaining proceeds received from all patent-related actions until such time that BKIBrickell has been repaid in full.  After repaymentits minimum return.  The minimum return is determined as a multiple of the funded amount BKI is entitled to a portion of remaining proceeds up to a specifiedthat increases over time.  The estimated minimum return which is determineddue to Brickell was approximately $59.3 million and $56.9 million as a percentage of the funded amountMarch 31, 2023 and varies based on the timing of repayment.December 31, 2022, respectively.  In addition, BKI isBrickell may be entitled to a pro rata portion of proceeds from specified legal actions to the extent aggregate proceeds from those actions exceed the specified minimum return.

BKI holds a senior security interest  The range of potential proceeds payable to Brickell is discussed more fully in our assets until such time as the specified minimum return is paid, in which case, the security interest will be released except with respect to the patents and proceeds related to specific legal actions.  The security interest is enforceable by BKI in the event that we are in default under the agreement which would occur if (i) we fail, after notice, to pay proceeds to BKI, (ii) we become insolvent or insolvency proceedings are commenced (and not subsequently discharged) with respect to us, (iii) our creditors commence actions against us (which are not subsequently discharged) that affect our material assets, (iv) we, without BKI’s consent, incur indebtedness other than immaterial ordinary course indebtedness, or (v) there is an uncured non-compliance of our obligations or misrepresentations under the agreement.Note 11.  As of September 30, 2017,March 31, 2023, we are in compliance with our obligations under this agreement.

We have elected to measure our secured contingent payment obligation at its estimated fair value based on probability-weighted estimated cash outflows, discounted back to present value using a discount rate determined in accordance with accepted valuation methods.methods (see Note 11).  The secured contingent payment obligation is remeasured to fair value at each reporting period with changes recorded in the condensed consolidated statements of comprehensive loss until the contingency is resolved.  As of September 30, 2017, the fair value of the obligation is estimated to be approximately $14.1 million (see Note 12).

10.  Share-Based Compensation

There has been no material change in the assumptions used to compute the fair value of our equity awards, nor in the method used to account for share-based compensation from those stated in our Annual Report on Form 10-K for the year ended December 31, 2016. Unsecured Contingent Payment Obligations

The following table presents share-based compensation expense includedprovides a reconciliation of our unsecured contingent payment obligations, measured at estimated fair market value, for the three months ended March 31, 2023 and the year ended December 31, 2022 (in thousands):

Our unsecured contingent payment obligations represent amounts payable to others from future patent-related proceeds including (i) a termination fee due to a litigation funder and (ii) contingent payment rights issued to accredited investors in ourconnection with equity financings (“CPRs”).  We have elected to measure these unsecured contingent payment obligations at their estimated fair value based on probability-weighted estimated cash outflows, discounted back to present value using a discount rate determined in accordance with accepted valuation methods.  The unsecured contingent payment obligations will be remeasured to fair value at each reporting period with changes recorded in the condensed consolidated statements of comprehensive loss foruntil the three and nine months ended September 30, 2017 and 2016, respectively (in thousands):contingency is resolved (see Note 11).

As of September 30, 2017, we had approximately $1.6 million in unrecognized compensation cost related to unvested share-based compensation awards.  This cost is expected to be recognized over a weighted average period of approximately  one year.

11.  Stock Authorization and Issuance

On July 11, 2017, we amended our articles of incorporation to increase the number of authorized shares of common stock from 20 million to 30 million shares.  This amendment was approved by our shareholders on July 11, 2017.  Our shareholders also approved an amendment to our 2011 Long-Term Incentive Equity Plan to increase the shares authorized for issuance under the plan from 1.95 million to 3 million shares. 

On November 14, 2016, we filed a shelf registration statement (“Shelf”) for the offering of various securities, up to $15 million, over a period of up to three years.  The Shelf, which was declared effective

November 30, 2016, was intended to provide flexibility for our future capital needs.  On December 30, 2016, we entered into an ATM for the sale of up to $10 million of our common stock registered under the Shelf.  During the first quarter of 2017, we completed the sale of approximately 4.1 million shares of our common stock under the ATM at an average price of $2.46 per share for net proceeds of approximately $9.6 million after deduction of broker commissions, legal fees and expenses.    

On August 14, 2017, we entered into a new ATM agreement for the sale of up to approximately $4.4 million of our common stock registered under the Shelf.  As of September 30, 2017, we completed the sale of approximately 0.64 million shares of our common stock under the ATM at an average price of $1.85 per share for net proceeds of approximately $1.0 million after deduction of broker commissions, legal fees and expenses.   We had approximately $3.2 million remaining available for sale under the ATM as of September 30, 2017.

In February  2017,  we received proceeds of approximately $0.2 million from the sale of 80,510 unregistered shares of our common stock at a price of $2.11 per share to one of our directors.

Stock for Services

During the nine months ended September 30, 2017, we issued an aggregate of 0.3 million shares of unregistered common stock to two consultants in exchange for an aggregate of approximately $0.4 million in prepaid retainers for executive consulting and other advisory services.    We have no registration obligation with respect to these shares.

12. Fair Value Measurements

The following tables summarize the fair value of our assets and liabilitiescontingent payment obligations measured at fair value on a recurring basis as of September 30, 2017March 31, 2023 and December 31, 20162022 (in thousands):

For the three and nine months ended September 30, 2017, we had no transfers of assets or liabilities between the levels of the hierarchy.  The fair valuevalues of our secured and unsecured contingent payment obligation wasobligations were estimated using a probability-weighted income approach based on various cash flow scenarios as to the outcome of patent-related actions both in terms of timing and amount, discounted to present value using a risk-adjusted rate.  The contingent payment obligation does not have a fixed duration; however our cash flow projections assume a remaining duration ranging from approximately one to four years.  The cash outflows could potentially range from $0 to $32 million through 2021 and the cash flow scenarios have probabilities of 0% to 30%.  We used a risk-adjusted discount rate of 15.77%17.94% at March 31, 2023, based on a risk-free rate of 1.77%3.94% as adjusted by 8% for credit risk and 6% for litigation inherent risk.

The following table provides quantitative information about the significant unobservable inputs used in the measurement of fair value for both the secured and unsecured contingent payment obligations at March 31, 2023, including the lowest and highest undiscounted payout scenarios as well as a weighted average payout scenario based on relative undiscounted fair value of each cash flow scenario.

We evaluate the estimates and assumptions used in determining the fair value of our contingent payment obligations each reporting period and make any adjustments prospectively based on those evaluations.  Changes in any of these Level 3 inputs could result in a significantly higher or lower fair value measurement.

The following table provides a reconciliation

12. Legal Proceedings

 13.  Commitments and Contingencies

Lease Commitments

In April 2017, we entered into a new lease agreement for our Lake Mary, Florida facility with a lease commencement date of July 1, 2017.  The lease provides for a straight-lined monthly base rental payment of approximately $13,000  through November 2022 with an option for renewal. 

In July 2017, we entered into a new lease agreement for warehouse and assembly space in Jacksonville, Florida.  The lease provides for a straight-lined monthly base rental payment of approximately $2,000 through July 2020 with options for expansion and renewal.

In July 2017, we also amended the lease for our existing Jacksonville, Florida facility to extend the lease expiration date from January 15, 2018 to July 15, 2018.  The lease provides for a straight-lined monthly base rental payment of approximately $28,000 through July 2018.

Legal Proceedings

From time to time, we are subject to legal proceedings and claims which arise in the ordinary course of our business.  These proceedings include patent enforcement actions initiated by us against others for the infringement of our technologies, as well as proceedings brought by others against us at the Patent Trial and Appeal Board of the U.S. Patent and Trademark Office (“PTAB”) in an attempt to invalidate certain of our patent claims.   These patent-related proceedings are more fully described below.Although there is at least a reasonable possibility of an unfavorable outcome in any one or more of these matters, we believe that any such outcome is not expected to have a material impact on our financial position or results of operations.

The majority of our litigation, including our PTAB proceedings, is being paid for through contingency fee arrangements with our litigation counsel as well as third-party litigation financing.  In general, litigation counsel is entitled to recoup on a priority basis, from litigation proceeds, any out-of-pocket expenses incurred.  Following reimbursement of out-of-pocket expenses, litigation counsel is generally entitled to a percentage of remaining proceeds based on the terms of the specific arrangement between us, counsel and our third-party litigation funder.

ParkerVision v. Qualcomm and HTC (Middle District of Florida)Florida-Orlando Division) - Appealed to U.S. Court of Appeals for the Federal Circuit

We have aappealed certain March 2022 rulings by the Middle District of Florida in our patent infringement complaint pendingagainst Qualcomm Incorporated and Qualcomm Atheros, Inc. (collectively “Qualcomm”).  Appellate court briefs have been filed by both parties and we are awaiting a hearing date in this matter. 

The patent infringement case was filed in the Middle District of Florida against Qualcomm and Qualcomm Atheros, Inc. (collectively “Qualcomm”), and HTC (HTC Corporation and HTC America, Inc.) (the “Qualcomm Action”) seeking unspecified damages and injunctive relief for infringement of certain of our patents.  Certain of the defendants have filed counterclaims against us for non-infringement and invalidity for all patents in the case.  A claim construction hearingMay 2014.  The case was heldstayed in August 2015 but no ruling on claim construction has been issued by the court.  In February 2016 the court granted the parties’ joint motion to stay these proceedings until resolution of the proceedings at the International Trade Commission (“ITC”) as discussed below.  In May 2017, we filed a motion to continue the stay of these proceedings pending andecisions in other cases, including the appeal of certaina PTAB decisionsproceeding with regard to our ‘940 Patent as discussed below.

Qualcomm v. ParkerVision (PTAB)

In August 2015, Qualcomm filed an aggregate of ten petitions for Inter Partes Review (“IPR”) with U.S. patent 6,091,940 ("the PTAB seeking to invalidate certain claims related to three of the eleven patents originally'940 Patent") asserted in our Qualcomm Action.this case.  In March 2016, the PTAB issued decisions denying institution of trial for three of the petitions, all of which relate to our U.S. patent 7,039,372 (“the ‘372 Patent”).  The remaining petitions, all of which relate to our U.S. patent 6,091,940 (“the ‘940 Patent”) and U.S. patent 7,966,012 (“the ‘012 Patent”) were instituted for trial by the PTAB.    In May 2016, the PTAB granted our motion to disclaim the challenged claims of the ‘012 Patent and entered an adverse judgment against us with respect to those claims. In March 2017, the PTAB issued its decisions on the six outstanding IPRs, all of which relate to the ‘940 Patent.  The PTAB ruled in our favor on three of the six petitions (the method claims), ruled in Qualcomm’sQualcomm's favor on two of the six petitions (the apparatus claims) and issued a split decision on the claims covered in the sixth petition.  In September 2018, the Federal Circuit upheld the PTAB's decision with regard to the '940 Patent and, in January 2019, the court lifted the stay in this case.  In July 2019, the court issued an order that granted our proposed selection of patent claims from four asserted patents, including the '940 Patent, and denied Qualcomm's request to limit the claims and patents.  The court also agreed that we may elect to pursue accused products that were at issue at the time the case was stayed, as well as new products that were released by Qualcomm during the pendency of the stay.  In September 2019, Qualcomm filed a motion for partial summary judgment in an attempt to exclude certain patents from the case, including the '940 Patent.  The court denied this motion in January 2020.

In April 2020, the court issued its claim construction order in which the court adopted our proposed construction for seven of the ten disputed terms and adopted slightly modified versions of our proposed construction for the remaining terms.  Due to the impact of COVID-19, a number of the scheduled deadlines in this case were moved, including the trial commencement date which was rescheduled from December 2020 to May 2021.  In October 2020, our damages expert submitted a report supporting our damages ask of $1.3 billion for Qualcomm's unauthorized use of our technology.  Such amount excludes additional amounts requested by us for interest and enhanced damages for willful infringement.  Ultimately, the amount of damages, if any, will be determined by the court.  Discovery was expected to close in December 2020; however, the court allowed us to designate a substitute expert due to medical issues with one of our experts in the case.  Accordingly, the close of discovery was delayed until January 2021.  As a result of these delays, the court rescheduled the trial commencement date from May 3, 2021 to July 6, 2021.

In March 2021, the court further delayed the trial date citing backlog due to the pandemic, among other factors.  A new trial date was not set and the court indicated the case was unlikely to be tried before November or December 2021.  Fact and expert discovery was completed, expert reports were submitted, and summary judgment and Daubert briefings were submitted by the parties.  Joint pre-trial statements were submitted in May 2021.  In March 2021, the court granted Qualcomm's motion to strike certain of our 2020 infringement contentions.  As a result of this ruling, in July 2021, we filed a joint motion for entry of a judgment of non-infringement of our Patent No.7,865,177 ("the '177 Patent"), subject to appeal.

In January 2022, the court held a hearing to allow the parties to present their respective positions on three outstanding motions.  The court indicated that upon its ruling on these motions, a pre-trial conference would be scheduled and a trial date set.  On March 9, 2022, the court ruled with respect to one of these motions granting Qualcomm’s motion to strike and exclude opinions regarding the alleged infringement and validity issues.  This court order precluded the presentation of infringement and validity opinions by both of our experts at trial. On March 22, 2022, the court issued an order granting Qualcomm’s motion for summary judgment ruling that Qualcomm does not infringe the remaining three patents in this case.  On April 20, 2022, we filed a notice of appeal to the United States Court of Appeals for the Federal Circuit.  As a result of the PTAB decisions, certain claimscourt’s summary judgment motion in favor of Qualcomm, Qualcomm has the ‘940 Patent whichright to petition the court for its fees and costs. The court has granted a Qualcomm motion to delay such a petition until 30 days following the appellate court’s decision.  We are the subject of our district courtrepresented in this case against Qualcomm and HTC were found to be un-patentable.  In May 2017, we filed our notice of appeal of these decisions with the Federal Circuit.  Qualcomm also appealed the decisions that were unfavorable to them.on a full contingency fee basis.

ParkerVision v. Apple and Qualcomm (ITC and(Middle District of Florida-Jacksonville Division)

In December 2015, we filed a patent infringement complaint in the Middle District of Florida)

In December 2015, we filed a complaint with the U.S. ITCFlorida against Apple Inc. (“Apple”), LG Electronics, Inc., LG Electronics U.S.A., Inc., and LG Electronics MobileComm U.S.A., Inc. (collectively “LG”), Samsung Electronics Co., Ltd., Samsung Electronics America, Inc., Samsung Telecommunications America LLC, and Samsung Semiconductor, Inc. (collectively “Samsung”), and Qualcomm alleging that these companies make, use or sell products that infringe certain of our patent claims and requesting that the ITC bar the defendants from continuing to import and sell infringing products in the U.S.  We filed a corresponding patent infringement complaint in the Middle District of Florida against these same defendants alleging infringement of four of our patents.  In January

2016, the ITC instituted an investigation based on our complaint. In February 2016, the district court proceedings were stayed pending resolution of the proceedingsa corresponding case filed at the ITC.International Trade Commission (“ITC”).  In July 2016, we entered into a confidential patent license and settlement agreement with Samsung and, as a result, Samsung was removeddismissed from both the ITC and the related district court action.  In JanuaryMarch 2017, we dismissed three of the four patents from the case in order to simplify the investigation.  On March 10, 2017, the administrative law judge issued a ruling on a pre-trial motion that precluded us from presenting key evidence in our case.  As a result, on March 13, 2017, we filed a motion to terminate the proceedings at the ITC.  On April 28, 2017, the ITC granted our motion to withdraw from the ITC proceedings.