What is on the immediate horizon for PTSC?

This is an update to my 11/26/08 post based on current company happenings since that date. The info provided is based on: CEO Rick Goerner provided info from Shareholder Letters, company press releases, and investor relations feedback. If some info is IMO, I will reference it as such. Brown font means newly added info or (IMO) comment since my last update.

Completed:

Ø Done [Announced 12/09/08] Iameter Acquired– Crossflo Systems, Inc., a Patriot Scientific company (OTCBB:PTSC - News), announced today that it has acquired the assets of Verras Medical, Inc. (dba Iameter) and the Iameter portfolio of data analysis software and programs. The assets will be utilized to expand the current healthcare data sharing and analysis capabilities of the company. Crossflo Systems, Inc., a wholly owned subsidiary of Patriot Scientific Corporation, provides data sharing solutions to the public sector. Crossflo’s flagship software product, the Crossflo DataExchange® (CDX) solution, is commercial off-the-shelf (COTS) middleware specifically designed for interagency and cross-domain data sharing.

Ø Done [Released 11/14/08] - Crossflo Historical and Pro Forma Financial Statements.

Ø Done [Released 11/20/08] [Monthly Shareholder Letter #10] - Comment (IMO): SH letter out on November 20th, 28 days after the last one.

Ø Done [Insider Buys transaction on 11/20,11/21, 11/26/2008] End of Blackout Period for Insider Transactions– Share Purchases by:

Felcyn (280,000 sh.

Bibeau (150,000 sh.)

Tredennick (180,000 sh.)

Goerner(300,000 sh.)

H Falk, Jr. (100,000 sh.)

C. Johnson (150,000 sh.)

Link: http://www.insidercow.com/history/co...

Ø Probably Done, but not confirmed [November 2008]: New Investor Meetings in San Francisco

Comment: (IMO): Must have happened, but have found no confirmation on this.

Ø Updated, but not resolved [ARS Situation Updated in 11/20/08 SH Letter, but no resolution]: ARS Update – From the 11/20/08 SH Letter #10, RG stated, ”As shown in our most recent quarterly report, which we filed on October 10th, the Auction Rate Securities (ARS) held by us, although illiquid, retain approximately 95% of their face value as determined by a third party valuation firm. The 5% write down to date represents a temporary valuation adjustment reflective of their illiquid status. The relatively high carrying value is attributable to the strength of the underlying principal as a result of US government agency guarantees. The ARS, which continue to earn and pay interest, serve as collateral for a line of credit secured by us earlier in the year whereby we are able to borrow against 50% of their value when necessary. Also, we recently filed a formal claim against the institution through whom we purchased the ARS, seeking redemption of the instruments at full value and payment for specified damages. We believe we have strong arguments and intend to aggressively pursue this matter.”

Upcoming:

Ø [Early December]: European Road Show-New Investor Meetings – No specific new info about this in Nov. 20, 2008 Shareholder Letter #10. Comment (IMO) I assume that he did the European meetings last week (Dec 1-5, 2008) or is doing them now (Dec 8-12, 2008). My guess is this week.

Ø [December 2008]: HP-Crossflo Webcast – 200/7000 hospitals participating. In 11/20/08 Shareholder Letter, RG stated: “As noted in my last letter, Crossflo’s technology is highlighted with Hewlett-Packard’s Integrity Non-Stop server technology on HP’s healthcare solutions website. Crossflo is actively involved in several pilot healthcare projects that could grow into multi-million dollar initiatives connecting hospitals, physicians groups, and other medical service providers. With HP as a partner we are confident that we can increase Crossflo’s market presence and accelerate revenues in the healthcare sector. In the next month Crossflo will present to numerous hospitals via webcast to lay out the compelling Crossflo solution.”

Ø [December 18/19 2008]: Monthly Shareholder Letter #11 - Comment (IMO): – The trends (and assuming he doesn’t release it X-Mas or New Year’s week) suggests we will see the next shareholder letter released on or about December 18th or 19th.

Ø [Soon -within a month (Estimate)]: Comment (IMO): Update the Website to reflect/include the non-MMP source of revenue direction. Comment (IMO) I did go ahead and ask this question of Patriot IR last week and received confirmation yesterday that new information to be added to the website reflecting Patriot’s additional direction is in the works. A specific timeframe was not provided, but my sense is that it is less than one month away.

Ø [Shortly]: Dutton Full Research Report on PTSC – As mentioned in Dutton Summary Section of their 10/14/08 PTSC update – they said it was to be issued “shortly”. They have issued Research Note Updates on 11/10/08 and 11/24/08. Also, as an FYI, PTSC paid $35000 for 4 Research reports commencing on 11/27/06 (noted in the fine print at the end of the first report). Later, I noticed in the fine print of the 07/22/08 Dutton report that PTSC paid $67,000 for 8 research reports commencing on 11/27/08. So, the answer is, by averaging, PTSC is paying about $33,500 per year for Dutton Coverage (and presumably the 2 year coverage ends tomorrow, 11/27/08. Was it continued?).

Ø [Within next month or so?] (IMO): Big Cohen Research Report - I thought I had read a comment somewhere that RG planned to pay Cohen again but not for sure on that. Still, I think it is a good idea. We got the first full Cohen Research Report one back on 10/16/07 and the last Cohen Update on 7/18/08. No update/clarification on this from RG in the 11/20/08 SH Letter.

Ø [Within a few calendar quarters]: Significant USPTO action on one of patent re-exams. Comment: Resolved within “quarters” per someone’s ( one of the Leckrone’s) statement at Annual shareholder meeting. More news on the ‘584 patent came out last week, please see other shareholder postings for info on that.

Ø [Some Date in the Future]: Resolution on Evaluation of a “Textual Analysis and Search Software Company”. From Nov. 20, 2008 Shareholder Letter – “We have analyzed several potential text search/analytical tools, but not yet found an acceptable opportunity.”

Ø [Some Date in the Future]: Further updates on IP expansion. RG stated in the 8/20/08 SH Letter #7, “We have held preliminary discussions with the developers of advanced networking IP technology for Digital Subscriber Line (DSL) applications." RG provided no new update on this in Shareholder Letter #10.

Ø [Shortly, but Overdue]: New 2nd Fusion Center contract won by Crossflo: RG stated on 9/23/08: “…and has most recently won an additional state Fusion Center award which will be announced shortly. Comment (IMO): Crossflo should announce a 2nd Fusion Center contract shortly. Well, has this been announced, did I miss it? It has been nearly 11 weeks since- is that still defined as “shortly”? RG provided no new update on this in Shareholder Letter #10.

Ø [January 2009]: Host Conference Calls & Guidance on Crossflo/Iameter Revenues: Starting in January 2009 for Q2 FY ’09 results. In 11/20/08 SH Letter, RG stated: “I have also committed to a conference call following the release of our Q2 10-Q results in mid-January, more details to follow.”

“We expect Crossflo to have a profitable 2009 plan with more specifics released before year-end.”

“We project Crossflo/Iameter profitability by fiscal year 2009 Q4 (May 2009).”

Ø [51 days and counting]: Another MMP License. In 11/20/08 SH Letter, RG stated, “Patriot has not announced a new MMP Portfolio licensee since my last update. As reported at the SHM, TPL/Alliacense are actively pursuing new MMP licensees and are aggressively opposing the current Patent Reform legislation. Visit the TPL website for how you can assist in the effort by writing your Congressman.

StormKing