Meta, the company behind the Meta 2 tethered AR headset, has shut down amidst a patent infringement lawsuit filed in summer of last year, and a recent asset liquidation that has left the company insolvent.
Back in September, Meta lost out on a fresh round of funding lead by a Chinese investor which forced the company to furlough around 2/3 of their staff, leaving Meta’s existence in doubt as they no doubt looked for additional investment.
Making matters worse, the suspension of operations came shortly before Meta faced a patent infringement lawsuit from Genedics, LLC, which claims Meta infringed on “user interface methods for image manipulation and user input in a three-dimensional space where projectors display images and sensors identify user input,” Next Reality reports.
Next Reality obtained a statement from Meta CFO John Sines to Judge Christopher J. Burke, the Delaware-based presiding district court judge in the case, which details the company’s asset liquidation to a third-party after settlement negotiations failed.
Dear Judge Burke:
I am replying to your Court order that Meta Company retain counsel or reach a settlement with Genedics LLC.
I regret to inform you that settlement negotiations were unsuccessful. Further, Meta Company’s lender exercised its remedies as first priority secured lender and foreclosed and sold all assets to a third party in a UCC foreclosure sale at a value below the outstanding loan amount, and Meta Company is insolvent. Meta does not have the resources to retain legal counsel or to provide a settlement offer.
Chief Financial Officer
Another fold in the foreclosure: both the Meta 2 headset and its list of executives have been removed from the company’s website, leaving only tutorials and info on their software.
Founded in 2012, the company ran a successful Kickstarter in 2013 for an early AR development headset. Meta then went on to raise $ 73 million between its Series A and Series B investments. In 2016, Meta went on to unveil the Meta 2, a tethered AR headset development kit with a wide field of view, which the company sold for $ 1,500.
We’ve reached out to Meta for additional comments on the shutdown, and will update when we hear back.
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