Fonix Corporation was founded in 1994.
Suspension of Trading and Revocation of Registration of Fonix Corporation
On June 7, 2012, the U.S. Securities and Exchange Commission (the "SEC") entered an Order Instituting Administrative Proceedings against Fonix Corporation ("Fonix") for Fonix's delinquency in filing periodic reports.
Additionally, on June 7, 2012, the SEC entered an Order of Suspension of Trading of Fonix's common stock from June 7, 2012, through June 20, 2012.
Finally, on July 6, 2012, the SEC entered an Order Making Findings and Revoking Registrations by Default as to the registration under the Securities Exchange Act of 1934, as amended (the "1934 Act"), pursuant to Section 12(j) of the 1934 Act. The Order of Revocation can be found on the SEC's website.
Termination of Representation of Counsel for Fonix
On July 13, 2012, Durham Jones & Pinegar, P.C. ("DJP"), gave a written notice to Fonix of DJP's termination of its representation and its attorney-client relationship with Fonix and each of its subsidiaries.
Foreclosure of Security Interest
Following the termination of its representation of Fonix, on July 13, 2012, DJP published its Notification of Public Disposition, in which an affiliate of DJP, DJP Asset Management, Inc. ("DJPAM"), announced its intention to offer for sale at public auction the following collateral security for the obligation of Fonix and its subsidiaries and affiliates to DJP: Two Million (2,000,000) shares (the "Shares") of common stock of SpeechFX, Inc. ("SFX"), a Delaware corporation, which constitutes all of the issued and outstanding shares of capital stock of SFX. SFX was formerly known as Fonix Speech, Inc., and is a wholly owned subsidiary of Fonix. DJP assigned its security interest in the Shares to DJPAM. DJPAM will offer the Shares to the highest qualified bidder in a public auction at 2:00p.m. on Friday, July 27, 2012, at the offices of DJP at 111 East Broadway, Suite 900, Salt lake City, Utah. The Shares will be offered at the public auction subject to a senior security interest held by the remaining officer and director of Fonix. Click here to review the Notification of Public Disposition.
Completion of Foreclosure Sale
On July 27, 2012, DJP Asset Management, Inc. (“DJPAM”), as the secured party under an Amended and Restated Security Agreement, conducted a public auction of Two Million (2,000,000) shares (the "Shares") of common stock of SpeechFX, Inc. ("SFX"), a Delaware corporation, which constitutes all of the issued and outstanding shares of capital stock of SFX. The sale was conducted at the time and place designated in the Notice of Public Disposition, which was sent to Fonix, together with other persons holding an interest in the Shares. The Shares were sold to DJPAM, as the highest bidder at the public disposition. Accordingly, DJPAM has acquired all right, title, and interest held by Fonix in the Shares.