Big,

This is were you are getting confused....the deal struck between PTSC and Swartz was to convert the outstanding convertible debentures not convert the warrants into shares (although there could be some type of agreement behind the scenes??). The debentures worked similar to bonds as they were a loan to PTSC that accrued interest. The only HUGE difference is that they had an option to be converted into shares of PTSC at a supposed set share price. Not only was the debenture converted into shares but so was the interest that had been accruing. Not only this but the share conversion price was constantly being repriced lower to enable Swartz to dick us even further. Say for example $100,000 convertible debenture was bearing a 10% interest rate and came with a $.25 share conversion price. This means that for the $100,000 loan after 1 year it could be converted into 440K shares. ($10K interest + $100K principle /$.25). Now lets say the conversion price is reset to .05, (like Swartz did to us countless times) the convertible debenture would now be converted into 2,200,000 shares. ($110K/$.05).

Can you see the difference in dilution? This is what Swartz did to us over and over for the past 7 years. Now because he gave a speech at the SHM some want to call him our friend and believe that he never shorted a single share of PTSC. He can go blow smoke up most retails asses but not mine.

The convertible debentures are done with but we continue to suffer the consequences of past years financings. Hopefully with only 18M warrants left we will be done with this mess, however, we will still carry the effects of now having some 400M shares outstanding.

dot