The activist shareholder with plans to nominate his own directors to the board of Waukesha-based Telkonet Inc. has renewed his efforts, sending a letter to shareholders that was filed with the SEC Wednesday.
[caption id="attachment_125275" align="alignright" width="322"] The Telkonet headquarters in Waukesha.[/caption]
Peter Kross is seeking shareholder support for his three director nominations at Telkonet’s annual stockholder meeting on June 27. Telkonet has a five-member board.
Kross’ nominees are himself, Leland Blatt and Arthur Byrnes. All three are common stockholders.
“I am seeking to replace a majority of the board because the board has presided over the company’s poor financial results and stock performance,” Kross says in his letter.
He lays out several complaints, including: Telkonet has incurred cumulative losses of $122 million from its founding through the end of 2015; the company has had stagnant low stock prices over the past five years; outside board members own little to no stock and receive a $48,000 annual salary; and there were only three board meetings in 2015.
Telkonet increased its revenue 80 percent in the first quarter, to $4.6 million. Net income was $120,122 in the quarter, or 0 cents per share.
Telkonet makes intelligent automation solutions that are part of the Internet of Things. It serves commercial markets worldwide. The company is currently exploring its strategic options with an investment bank.