Dividends must be paid out of retained earnings. PTSC has a negative retained earnings including all prior years losses ergo they cannot pay out dividends.

So these need to be classified as "Return of Capital" . As such they serve to reduce your cost basis and therefore do not need to beincluded as income UNLESS your cost basis is at zero.

Example bought 20k shares at 4 cents 30k at >38 cents

then you pay taxes only on 2 of teh 6 cents receievd for 20,000 shares at 4 cents and nothing on teh 38 cent share

However for capital gains your cost basis is now adjusted to 0 on the 20k and 32 on the 30k.

you can do an inet search on "return of capital" and of course I am not a tax attorney so review this with your local LLM or cpa and remember since dividends are taxed at 15% same as capital gains if you don't own so many shares you might just want to pay the tax today leave your basis unadjusted and not deal with the hassle and cost of refiling. But again ask your local cpa/llm to make sure this is allowable.