Nikola agreed to sell the Badger and Powersport’s related assets, which included certain intellectual property and some physical prototypes. Mr. Sparks and Mr. Cannon expressed a desire to bring these products to market and brought several EV related partners to meetings as we discussed a possible sale. Based upon their representations that they plan to bring these products to market and that they needed working capital to do so, a deal was struck that allowed Ember to purchase the assets on a note with no money down to be paid back to Nikola over time. Nikola retained a 30% interest in Ember, which lowered the note payable owed back from Ember, allowed Nicholas to retain some value for its shareholders if the assets were ever developed into anything worthwhile, and allowed Nicholas to claw back 500,000 shares that were given by Mr. Milton to Mr. Sparks as part of Mr. Milton’s departure from the company.
Mr. Sparks and Mr. Cannon agreed that Mr. Milton would not be involved directly or indirectly in any way with the Badger or Powersport’s assets. It was specifically stated that Mr. Milton was to have zero involvement in this effort because the company felt strongly that he had caused enough reputational, financial and operational damage to Nikola. Mr. Sparks and Mr. Cannon acknowledged and agreed to this stipulation. Over the three and a half years since Mr. Milton left the company, we at Nikola have worked to stay above the fray, not comment on his legal proceedings, and stay focused on the work at hand to bring zero emission Class 8 trucks to market. As you have all heard on this call, we have done just that. The irony that Mr. Milton is now trying to take control of Nikola after all that has happened in the past three and a half years is not lost on us at the company.
We will continue to push back against any efforts he makes to attempt to take control of Nikola, and we believe our directors and management are far and away better for our stockholders than a slate of directors who lack relevant experience to run a clean energy, clean tech company. We continue to pursue all legal avenues against Mr. Milton related to the $165 million arbitration award that we won related to his wrongful conduct. We are currently working to have that arbitration award confirmed in federal court. Not surprisingly, Mr. Milton has opposed that request for confirmation, but we are waiting on a decision from the federal court judge. Our company has made a commitment to openness and transparency with government entities, our stockholders, partners, and our employees.
I am honored to be a part of this organization every day and like all Nikola team members, remain committed to our mission and eliminating unnecessary distractions. Thank you for your time this morning. And now, I turn it back to Dhillon.
Dhillon Sandhu : Thank you to our Chief Legal Officer, Britton Worthen for your explanation. That concludes our prepared remarks for today. Thank you all for joining.
Operator: Thank you. This does conclude today’s conference. You may disconnect your lines at this time and thank you for your participation.
