Ronald P. Erickson
About Ronald P. Erickson
Ronald P. Erickson, age 81, is Lead Director and President of the Science Division, Senior Vice President at USBC (appointed August 6, 2025). He previously served as Chairman of the Board (2004–2011, 2015–Aug 6, 2025) and CEO (Nov 2009–Apr 2018; Jan 2023–Aug 6, 2025). He holds a BA (Central Washington University), MA (University of Wyoming), and JD (UC Davis), and is licensed to practice law in Washington. USBC reports cumulative net losses in recent years ($16.6M FY2024; $15.3M FY2023; $20.1M FY2022) and disclosed total shareholder return (TSR) values of $116 on a $100 base for 2024, $13.66 for 2023, and $72.33 for 2022 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Know Labs | Founder | Not disclosed | Built/developed technology company |
| Blue Frog Media | Chairman, CEO, Co-Founder | Not disclosed | Mobile media and entertainment platform |
| eCharge Corporation | Chairman & CEO | Not disclosed | Internet-based transaction processing |
| GlobalTel Resources | Chairman, CEO, Co-Founder | Not disclosed | Telecom services provider |
| Egghead Software, Inc. | Chairman, Interim President & CEO | Not disclosed | Led software reseller; original investor |
| NBI, Inc. | Chairman & CEO | Not disclosed | Corporate leadership in technology |
| MicroRim, Inc. | Co-Founder | Not disclosed | Database software developer |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Central Washington University | Chairman and Board of Trustees Member | 2010–2021 | Higher-education governance and oversight |
| Various tech companies (public/private) | Angel investor and board member | Not disclosed | Strategic guidance and early-stage investing |
Fixed Compensation
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Base Salary ($) | 371,083 | 453,125 |
| Bonus ($) | 0 | 100,000 |
| Other Compensation ($) | 173,885 (includes interest paid to J3E2A2Z LP) | 205,000 (interest to J3E2A2Z LP) |
| Total ($) | 1,096,537 | 1,652,327 |
Base salary schedule changes and current role terms:
| Period | Annual Base Salary | Notes |
|---|---|---|
| Nov 1, 2022 – Dec 22, 2022 | 325,000 | CEO compensation phase |
| Dec 23, 2022 – Mar 1, 2024 | 375,000 | CEO compensation phase |
| Mar 1, 2024 – Sep 30, 2024 | 500,000 | CEO compensation phase |
| Effective Aug 6, 2025 | 375,000 | New role: President, Science Division; SVP |
Performance Compensation
| Component | FY 2023 | FY 2024 |
|---|---|---|
| Option Awards – Grant Date Fair Value ($) | 551,569 | 894,202 |
Equity grants and vesting:
| Grant Date | Instrument | Number of Shares | Exercise Price | Expiration | Vesting |
|---|---|---|---|---|---|
| Dec 14, 2022 | Stock Option | 25,000 (pre-split) | $57.60 (pre-split) | 5 years | Quarterly over 4 years |
| Oct 10, 2023 | Stock Option | 116,021 (pre-split) | $10.00 (pre-split) | 5 years | Quarterly over 4 years |
| Aug 6, 2025 | Common Stock | 385,000 | N/A | N/A | Half vests over 2 years with 6-month cliff, then quarterly |
Outstanding options at FY2024 (post-split presentation):
| Exercisable (#) | Unexercisable (#) | Exercise Price ($) | Expiration Date |
|---|---|---|---|
| 750 | – | 1,760.00 | 11/4/2024 |
| – | – | 2,448.00 | 12/15/2025 |
| 167 | 999 | 2,448.00 | 12/15/2025 |
| 1,250 | – | 2,448.00 | 12/15/2025 |
| 430 | 195 | 3,344.00 | 12/16/2026 |
| 273 | 352 | 2,256.00 | 12/14/2027 |
| 725 | 2,175 | 400.00 | 10/10/2028 |
Plan-level performance criteria and clawbacks:
- The 2021 Plan permits use of performance criteria (e.g., earnings, sales, ROA, TSR, project milestones) for awards; actual executive metric weightings/targets are not disclosed .
- A Compensation Recovery (clawback) Policy was adopted in 2023, requiring recoupment of certain incentives upon restatements under SEC/NYSE rules .
Equity Ownership & Alignment
| Item | As of Aug 18, 2025 |
|---|---|
| Total beneficial ownership (shares) | 2,569,569 (includes 97,367 warrants exercisable within 60 days) |
| Ownership % of shares outstanding | Less than 1% of 384,234,130 shares |
| Breakdown | 2,472,202 shares directly/controlled; 97,367 warrants |
| Insider hedging policy | Hedging prohibited; pledging/margin limited to ≤25% of owned shares |
| Ownership guidelines | Not disclosed |
Vesting and potential selling pressure indicators:
- 385,000-share grant on Aug 6, 2025: half vests over 2 years with six-month cliff (first vest expected ~Feb 2026), then quarterly; could create scheduled unlocks .
- Multiple options vest quarterly over 4 years; expirations span 2024–2028; exercise prices reflect the Feb 19, 2025 reverse split .
Employment Terms
| Term | Provision |
|---|---|
| Legacy Employment Agreement (Apr 10, 2018; amended Jun 5, 2025) | Base $500,000; auto-renewal annually; severance: 12 months base + 18 months medical if terminated without cause/for good reason/disability; “Good Reason” amended to exclude title/duty diminutions and exclude the June 5, 2025 transaction as change-of-control . |
| New Employment Agreement (Aug 6, 2025) | Role: President of Science Division; SVP; base $375,000; discretionary bonus eligibility; equity grants discretionary; at-will employment . |
| Severance (new agreement) | If terminated without cause or for good reason: 12 months base salary paid over 12 months; any earned current-year bonus; COBRA premium reimbursement for 12 months; requires release . |
| Restrictive covenants | Confidentiality (indefinite); non-compete 12 months post-termination; non-solicit of personnel/partners 12 months post-termination; non-disparagement; IP assignment . |
| Change-of-control treatment | Plan-level 2021 Plan provides for potential acceleration if awards are not assumed/substituted in a change-of-control; else continued under successor; cash-out alternative may be used . |
Board Governance
- Board service history: Director since 2004; Chairman 2004–2011 and 2015–Aug 6, 2025; CEO Nov 2009–Apr 2018 and Jan 2023–Aug 6, 2025; currently Lead Director and employee director; not independent .
- Board leadership structure is combined Chairman/CEO (Robert Gregory Kidd); the Board states no lead independent director at present .
- Committees: Audit—Owens, Pepper (Chair), Takesako; Compensation—Owens (Chair), Pepper, Takesako; Nominating/Governance—Jenkinson (Chair), Ellingson, Pepper, Takesako. Erickson is not listed on any committee .
- Controlled company: Goldeneye 1995 LLC (owned/managed by CEO Kidd) holds 93.1% voting power; USBC avails itself of certain NYSE American controlled-company governance exemptions (e.g., majority independent directors not required) .
- Board meetings and attendance: Board met 3 times, acted by consent 13 times last fiscal year; each director attended ≥75% of meetings/committee meetings .
Director Compensation
- Non-employee directors: compensated primarily via stock options/grants plus a $10,000 cash retainer; FY2024 director comp totals disclosed (Erickson did not receive director compensation while serving as CEO in FY2024) .
Related Party Transactions (Erickson/J3E2A2Z)
| Date | Transaction | Terms |
|---|---|---|
| Jan 19, 2023 | Warrant extension for Erickson and controlled entity | Extended exercise dates to Jan 30, 2024 . |
| Jan 30, 2024 | Warrant extension for Erickson and controlled entity | Extended exercise dates to Jan 31, 2026 . |
| Jun 2, 2025 | Series H Preferred issued to J3E2A2Z (convertible of Erickson notes) | 16,916 shares; initial conversion price $0.335; 8% cumulative dividends; deemed dividend $679,020 . |
| Aug 6, 2025 | Redemption of Series H Preferred | Cash of $654,276.15 plus 2,000,000 common shares at $0.335; $140,210.15 accrued dividends paid . |
| Aug 6, 2025 | Common stock issuance to Erickson | 385,000 shares; half vest over 2 years (6-month cliff), then quarterly . |
| FY2024/FY2023 | Interest paid to J3E2A2Z LP | $205,000 (FY2024); $140,000 (FY2023) . |
Compensation Structure Analysis
- Shift in cash vs. equity: FY2024 option award fair value rose to $894,202 from $551,569 in FY2023, while base salary increased to $500,000 annualized by March 2024 before resetting to $375,000 in the new SVP role effective Aug 6, 2025 .
- Plan amendments and repricing: The Amended & Restated 2021 Plan explicitly authorizes option/SAR repricings and expanded evergreen (to 15,000,000 shares annually), approved Sept 29, 2025; USBC repriced 48.62M options on Oct 7, 2025 (reducing strike to $1.10) for certain executives/directors (Payne, Chapman, Jenkinson listed), to maintain incentive/retention value .
- Clawbacks: Compensation Recovery Policy adopted (2023) aligns with SEC/NYSE requirements .
Risk Indicators & Red Flags
- Controlled company governance exemptions reduce independence safeguards (e.g., majority independent board not required) .
- Explicit option repricing authority and actual repricing activity can be shareholder-unfriendly if used to mitigate underwater awards rather than drive performance alignment .
- Insider policy restricts hedging; pledging and margin use capped at 25% of owned shares, reducing alignment risk from collateral use .
- Legal proceedings: Company not aware of directors/officers in material legal proceedings in past ten years .
- Section 16 timing: Proxy notes Erickson’s Form 4 filing date tied to note extensions (filed May 31, 2024) .
Equity Ownership & Unlock Timeline (Insights)
- Near-term unlocks likely from the Aug 6, 2025 stock grant with first vest after six months and quarterly thereafter; multiple option grants vest quarterly over four years with expirations through 2028, potentially creating staggered selling pressure windows .
Employment Terms (Retention Risk)
- New at-will role with 12-month severance, non-compete/non-solicit covenants, and discretionary equity grants supports retention but leaves flexibility for organizational adjustments post-control transaction; “Good Reason” narrowed in June 2025 to exclude title/duty diminutions and the Goldeneye transaction .
Investment Implications
- Alignment: Erickson’s beneficial ownership is <1%, but recent 385,000-share grant plus prior options create equity-based alignment and scheduled vesting that can serve as performance incentives; anti-hedging and limited pledging reduce misalignment risk .
- Dilution/overhang: The significantly expanded plan reserve and evergreen, plus repricing authority and actual repricing for peers, imply higher potential dilution and lower strike-price hurdles for option exercises; monitor additional grants to Erickson under the plan .
- Governance: Controlled-company status and combined Chair/CEO diminish independence safeguards; Erickson’s dual role as Lead Director and employee director raises independence optics amid strategic shifts under a controlling shareholder .
- Performance context: USBC’s net losses and volatile TSR highlight execution risk; Erickson’s long operating background in tech and digital media may be additive, but pay outcomes in FY2022–FY2024 rose despite losses; continue to track pay-versus-performance and any performance-conditioned awards .
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