Deb,

First you must do something for me. You need to get a better picture of Dave (better angle). Every time I look at your avatar I think Dave has shaving cream on his face. JK

1.What is the "gross" amount received in Revenues by Phoenix Digital Solutions, our holding company with TPL? Gross amount received was $19,433,000 for the quarter.

2. How much money did PTSC have in the coffers "before this Q?" About $20 million including cash, restricted cash and marketable securities (short term investments)

3. How much did PTSC receive from our half of the licensing dollars? (roughly half I think......pls. correct) Remember that expenses are deducted from gross. So after expenses we earned $5.486 thru PDS licensing activity. PDS actually distributed $7.738 million to us during the quarter.

4. What were our total expenses? I assume you mean PTSC alone (ssdi numbers are included on the face of the income statement) which were roughly $1.5 million for the quarter, excluding income taxes.

5. How much money do we have in the bank right now? I don't know about right now, but as of November 30 we had about $21.8 million.

6. What is our overall asset worth including the shares in the war chest? And please confirm that we still have no long term or large debt that we have to pay. Our net equity (assets minus liabilities) is about $15.2 million. Our debts are minimal, ordinary short term debts (accounts payable, accrual) which EVERY company will have, plus a liability for income taxes of about $5.4 million. The only long term debt we have is Deferred Taxes of $736,259. Also, since we had received more than we earned from PDS we show a liability of $568,605 for that. That amount goes away int his quarter, offset by earnings this quarter. See #7 below for "war chest" comments.

7. Do you think the SP would appreciate with knowledge by the market that our war chest contained "say" 50 million of bought back shares? Many posters have applauded the company for buying shares now that should be worth a lot more in the future due to sp appreciation. IMO this is a little bit of skewed thinking, if only in the fact that we have 500 million shares authorized. That means in reality we have about 110 million shares in our "war chest" right now. IMO the biggest advantage of buying shares is the fact that we are taking these shares out of the float - there is no longer someone that may want to sell these shares in the future, thus affecting supply in the supply vs demand module. In addition, it helps our calculation of eps as there are now fewer shares to divide earnings by. Think of it this way - when were in our most fully diluted state (about 420 million fully diluted shares out) we could have issued another 80 million shares at todays price and received about $40 million. With todays fully diluted outstanding of about 390 million we could issue 110 million for proceeds of $55 million. Yes it's nice to have that extra $15 million "available" but in the grand scheme of things, such as to be used in an acquisition, it's really not that much. Point is, to me at least, it's much more important to have those shares out of the trading environment than it is to have them in a "war chest".

8. Or do you think it would be better to show $50 million in Cash in the bank as soon as possible? See #7 above, and cash beats everything.

9. Will they HAVE to clearly spell out the Royalty agreement if such agreement exists in April? I believe you already said Yes. If so, then I think April could look somewhat Low "IF" there are on going royalties as part of the J's Business Resolution. And that would probably give way to initial panic. In the Q, it looked like PTSC was trying to figure out how to report royalties as this was a new way of accounting for the income. Correct? If there are future royalties to be earned based on our recent settlements it will be stated that there is such an agreement and maybe give a brief, but not detailed description of how we might earn those royalties. I doubt we will be able to calculate estimated amount of future royalties from what's in the 10q and they would never put an estimate in there due to the huge exposure that would open them up to, but this is when issuing "guidance" would be crucial. Cliff Flowers could certainly estimate what they expect as future royalties and put that in a pr. More importantly, this type of arrangement would eliminate a large chunk of uncertainty regarding ptsc - we could now say that future revenues are pretty much guaranteed. While that guarantee might be in the minds of current investors already due to recurring licensing, remember "the street" doesn't look at it this way.

As for the rest of your post and JT comments (I thought he stated the "tens of millions" in an article he wrote, not an interview) I would prefer not to speculate as to what he was thinking. I previously stated what I thought he meant when I first read it and I'll leave it at that. I prefer to wait until April when we get actual info rather than go by the assumption that he had a slip of the tongue and was "guaranteeing" us tens of millions in income in the future.

Geez, how does sge do it. I'm beat, but now back to work.