crushersk

Since we have currently run out of money at the current company, how does that play a role here?

I invested the patent into the startup when I was founding it. The remaining work is brand design, hardware boards that need another round of redesign (some firmware code can be kept), and app re-development since CTO's work is unusable/not shared. So besides patent and branding, pretty much clean slate. (app design is mostly done)

In the contract it says at-will employment, so we can end his contract. We've asked, over period of 2+ years about the status of work, his availability.

When I have kept asking now for 3 months what the status of work is, if he can upload work done and share it with us so we can evaluate where we are, the response is 'there is nothing to share until it is done', that he has other responsibilities with other work etc, that he's busy and doesn't have time. No idea when he will finish it.

How can we evaluate his shares and give him an offer? what if he refuses?

I invested it into the company when I was founding it. At that time, we were good friends.

How would we value his 5% shares of a company that has no money now, no product, no revenue. We have some designs, brand design etc, valued patent (although 4 years old now). But we need to do new hardware design, still develop our software.

Yes we can fire him, but that doesn't solve our issues with his shares. Our investor would put up more money for development, but not while the CTO is involved with the company anymore.

We would much rather continue working on our own without him.