dotOB / Re: It seems to me one of the MAJOR problems is. Lambert
in response to
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posted on
Jul 30, 2008 06:38PM
Yes, point taken. I didn't mean to imply that the $7.56M was just the salaries and other costs I briefly listed, but rather that it was those plus the items you mention as well as some others. The pertinent blurb from the 10K that expounds on those costs is pasted below. My point is these are the costs that are directly attributable to these people, thier decisions and their efforts to move the company forward and disentangle it from issues they in large part created. And I wanted to differentiate that these costs are NOT inclusive of the MMP costs and other business venture costs. In the end of the day, PTSC can't afford to spend like this WITHOUT creating a perception that they can provide investors with VALUE. To date they haven't despite so many successes. They CAN change that with the right ACTION, independent of USPTO, M&A, and T3 and other similar issues. Selling, general and administrative expenses increased from approximately $4,151,000 for the fiscal year ended May 31, 2006 to approximately $7,559,000 for the fiscal year ended May 31, 2007. Legal and accounting related expenses increased by approximately $847,000 for the fiscal year ended May 31, 2007 compared with the fiscal year ended May 31, 2006 related to legal and accounting matters in connection with the restatement of our financial statements for the fiscal years 2005, 2004, 2003 and 2002 as well as the quarterly reports for the periods ended August 31, 2005 and February 28, 2006 and our required compliance with Sarbanes-Oxley regulations. Legal expenses related to a dispute with a former officer as well as other legal proceedings involving a co-inventor of a portion of our technology and other legal expenses connected with SSDI contributed to the increase in legal expenses for the 2007 fiscal year. Salary costs and related expenses included non-cash expenses associated with the fair value of options granted during the fiscal year ended May 31, 2007 in accordance with SFAS No. 123(R). On June 5, 2006, 1,500,000 options were granted to our former chief executive officer resulting in non-cash compensation expense amounting to approximately $1,527,000. On October 23, 2006, 230,000 options were granted to employees resulting in non-cash compensation expense of approximately $184,000. On February 9, 2007, 1,070,000 options were granted to employees and directors resulting in non-cash compensation expense of $584,000. Additional non-cash compensation for the fiscal year ended May 31, 2007 amounted to $61,000 for vesting of employee stock options in accordance with SFAS No. 123(R). No such compensation expense was incurred for the 2006 fiscal year. Other salary expenses increased by approximately $398,000 for the fiscal year ended May 31, 2007 as compared with the fiscal year ended May 31, 2006 including approximately $223,000 in salaries and related expenses for SSDI during the fourth quarter of the 2007 fiscal year. Salary expenses for the parent company including expenses connected with bonuses and 401(k) employer matching of salaries increased by approximately $175,000 in the 2007 fiscal year as compared with the 2006 fiscal year. Marketing related expenses decreased by approximately $139,000 for the fiscal year ended May 31, 2007 as compared with the fiscal year ended May 31, 2006 as product marketing activities were largely discontinued. Public and investor relations expenses increased by approximately $165,000 for the fiscal year ended May 31, 2007 as compared with the 2006 fiscal year as a result of a change in our public relations firm and one-time contracts with investor relations consultants. Insurance expense increased by approximately $158,000 for the fiscal year ended May 31, 2007 as compared with the 2006 fiscal year primarily as a result of increased costs of directors and officers insurance coverage. Travel and related expenses for the 2007 fiscal year increased by approximately $44,000 as expenses for SSDI were combined with travel expenses for the parent company which increased due to travel to attend various lawsuit mediations