- 3 - Background Some of the facts have been stipulated and are so found. The stipulation of facts and the exhibits received into evidence are incorporated herein by reference. At the time the petition was filed, petitioners resided in Orange, California. John F. Meyer (petitioner) is an engineer and software developer. Petitioner developed a unique bill payments system (the technology) that involved the application of a bar code to a “billhead that had a 1 in 30 billion to 1 in 300 billion error rate” while “normal bar codes have an error rate of 1 in 2 million or 1 in 20 million.” In October 2001, petitioner and his partner organized Pacific Payment Systems, Inc. (PPS) to be “a sales and marketing company that was going to offer a bill payment service to the unbanked, underserved” in anticipation of a funding commitment. They hired the Duane Morris law firm to form PPS, negotiate deals, and interpret any financing proposals.1 The first funding commitment fell through. Thereafter, petitioner, on behalf of PPS, submitted a business proposal to the U.S. Postal Service, seeking a sponsorship in 2001 that fell through. A commitment in May 2002 fell through. They did not dissolve PPS, and it subsequently operated as a going concern in 2003, 2004, and 2005. 1 The contract with the Duane Morris law firm was adopted by PPS by a resolution dated October 26, 2001.Page: Previous 1 2 3 4 5 6 7 8 9 10 NextLast modified: November 10, 2007