Topeka The Kansas Technology Enterprise Corp. loaned a San Francisco-based pharmaceutical company $100,000 while KTEC’s leader served on its board of directors, according to records filed with the Securities and Exchange Commission.
The annual report for Urigen Pharmaceuticals Inc. for the year that ended June 30, 2008, also states that Tracy Taylor, KTEC president and chief executive officer, received $37,500 in compensation for serving as chairman of Urigen’s board.
Taylor and Urigen officials deny that was the case.
“Absolutely not,” Taylor said Monday. “Not one dime, not one share.”
The company’s founder, Dr. William Garner, and chief financial officer Martin Shmagin supported Taylor and said they’d be happy to sign an affidavit that Taylor receives no compensation for being on Urigen’s board. They said for accounting purposes the company’s SEC filing included how much compensation was accrued, but that Taylor had made it clear he did not want to be paid.
Garner said Taylor has agreed to serve on the board as a favor.
“No good deed goes unpunished,” Garner said.
According to the SEC filing, Urigen, which specializes in the development of products for urological ailments, on Jan. 5, 2007, entered into an unsecured promissory note with KTEC Holdings Inc. in the amount of $100,000. Under the terms of the note, Urigen was to pay 12 percent interest.
KTEC was started in 1987 to assist in the creation and growth of technology businesses in Kansas. Urigen has Kansas connections, Taylor and Garner said. Garner grew up in Kansas and the company has conducted clinical trials in Kansas, he said. Urigen had an office at the Enterprise Center in Johnson County from 2005 to 2008, according to KTEC.
“We have spent a lot money in Kansas,” Garner said.
Meanwhile, KTEC is fighting for its life.
Gov. Kathleen Sebelius earlier this month vetoed its $12 million appropriation, saying that its functions could be brought under the Kansas Department of Commerce.
A recent assessment of KTEC found that the agency should continue as a stand-alone agency, but that changes were needed to make it more effective.
Taylor, who makes about $280,000 per year with KTEC, has also been under fire for not responding to legislators’ inquiries for information.