This AM I reviewed our 3Q 10Q and 4Q 10K for 2007. This was about the time that the 2006 dividends were changed to non taxable. I noted that the deferred tax liabilities jumped to about $12 million in Q4 from $4 million in Q3. So did the change to non taxable status pull funds that the company could have used elsewhere? Who was the main beneficiary of the dividends on stock and warrants? Who would have benefitted most by making the dividends non taxable?

In the 10Q I believe it says PTSC still has to pay $4 million in those deferred tax liabilities in next Q.

If PTSC does what Palm did and marks the ARS to 80% of value, its takes an paper loss of $3 million. Most of which will probably be recoverable. For example, UBS is accepting ARS's as collateral for low interest loans at par, so there may be an avenue to immediately access all or part of those funds. A smart accountant (I am not an accountant, I defer to Fut) could probably turn this situation to the company's adavantage.

Right now, I can't work up outrage over the ARS situation.