Well, Sxip Identity apparently owes Sxip Networks, also founded by Hardt, $4.7 million — and owes Hardt $275,000. The angel investors have filed suit, alleging that Hardt never disclosed the existence of the other company, and that the arrangement puts Hardt in a position to recoup money from the company before other investors do. They're looking to recover their losses with damages.(Photo by Kris Krüg)

The company led by Dick Hardt, Sxip Identity, has gone soft.

The lead developer at Internet startup Sxip Identity was forced out of the company this week. It has lead to an exodus of the whole engineering team. Dick is taking over as head engineer and running a nonexistant team. Clearly Dick's company is becoming weak and soft (all Dick's talk of Viagra was premature).

This is about the 5th engineering exodus since the company began. They have gone through 100+ employees in the past 2 years, an unheard-of level of turnover for a small company. So far he has figured out how to pump himself up again and again. But Sxip Identity has taken out bank loans; a core company product (their only asset) Sxip Access is up for sale. The company is in big trouble. Can Dick keep his own company up?

Sxip's Dick Hardt replies:

Fact:
Sxip and the Director of Development have agreed to part ways. (story is close with lead developer)

False statements:
No one else from the engineering team or any other staff have left.
We have an engineering team.
The company has not had 100+ people leave.
Sxip has many more assets then Sxip Access.
The company has not taken out bank loans. (What bank would loan money to a startup?)