Expenses to PDS seem to go on and up no matter what. Considering what we are unable to accomplish until the patent office does it's thing I can only hope that the expenses are for ever increasing efforts to hit the ground running when we get positive answers to the reexam. Hopefully they are lining up all the ducks and all that will be required is signing one or two letters to infringers the first saying something to the effect "..... we have told you what we have, we have told you what you have done and we have told you how much we want for what you have done..... now will you or won't you settle with us?.......". The second item if necessary should by this time only require an authorized signature and current date making it ready filing for filing suit in Tx or whereever is the most expedient and for serving on the infringer(s). At least this is where I hope the expense money is going.

Am I reading it correctly or is the company taking a million plus "anticpated loss" on our investment in the ARS account? I thought that we were informed that we would be recouping all of that investment. If we are taking the step of showing the loss on the Q then we are being either extremely conservative in our reporting basis (which for the most part is a good thing as the only surprises would be on the upside) or our Board and accountants feel it is a real possibility that we are going to be taking a bath on this investment. Of course these are just my thoughts and opinion and I welcome as always any enlightenment on these issues.

marc