Business Context and Reporting Period
Company: Emerson Radio Corp.
Filing Type: Form 8-K (Current Report)
Date of Report: April 3, 2007
Event: Execution of an employment agreement with Greenfield Pitts, Chief Financial Officer.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on executive compensation arrangements.
Material Changes
The material change reported is the formalization of the CFO's compensation package effective April 3, 2007. Key terms include:
- Base Salary: $250,000 annually (subject to increase at the Company's discretion).
- Bonus: Discretionary bonus determined by the Board of Directors at the end of the fiscal year.
- Benefits: Four weeks of paid vacation, participation in welfare and retirement plans, and reimbursement of reasonable business expenses.
- Term: Initial term expires March 31, 2008, with automatic continuation thereafter subject to 90-day termination notice by either party.
Guidance, Outlook, and Risks
Termination Provisions:
- Disability: Company may terminate if disability exceeds 90 days; employee receives applicable disability benefits and salary through the original term end date.
- Cause: Company may terminate immediately for "cause" with no further obligation beyond accrued salary and benefits.
- Notice: Standard termination requires 90 days' written notice after the initial term.
Confidentiality: The agreement includes standard confidentiality provisions.
Outlook: No financial guidance or strategic outlook is provided in this filing.
Investor Verification Checklist
- Verify the full text of the Employment Agreement (Exhibit 10.1) for specific definitions of "cause" and "disability."
- Confirm the Company's current fiscal year end to understand the timing of the discretionary bonus.
- Review the Company's prevailing expense policy to understand reimbursement limits.
- Check subsequent filings for any amendments to the agreement or changes in executive leadership.