“On December 24, 2009, we entered into a secured note receivable with TPL for $950,000, intended to cover operating costs including the furtherance of MMP portfolio licensing, which is due and payable on or before July 12, 2010. Terms of the note require interest payable at the rate of 10%. The note is secured by TPL’s portion of its license receivable distribution currently accounted for as license fees receivable on the February 28, 2010 balance sheet of PDS (see Note 11). At February 28, 2010 the balance of the note receivable was $967,438, including accrued interest receivable of $17,438.”

Considering that the only license signed since the last quarter is the Arcelik license, and that PDS’sbalance sheet showed $2.15M in assets of which $2M is the “license receivable” that is referenced in the above, and of which at best TPL would get $1M, has PTSC really done much by “securing” the first loan?

Consider what happens if the Arcelik license is as small as the recent quarter’s licenses were.Those 4 totaled a measly $1.875M.Those revenues were offset by quarterly expenses of $1.1M, leaving a net income of less than $800K.If, for example, the USPTO delays for several more months as some expect, and that there is no “resumption” of productive licensing before August, and the Arcelik license is only $500K, and you add in the $2M in July receivables, based on what seems to be some elevated level of legal activity, a small Arcelik license added into the $2.15M in current assets that PDS has, would only result in $2.65M in ACTUAL cash assets by the July time frame that the note is due.Considering PDS has spent on average $570K per month over the last 9 months reported in the 10q, by July, it’s likely they will have spent at least $2.8M, which would actually result in a DEFICIT to PDS, and leave NO MONEY to distribute to TPL or PTSC from the “license receivable”, and thus no money from which to “secure” even the secured loan that PTSC gave TPL.

Is this another “blunder” by PTSC?Or are they confident that the USPTO will rule positively and thus the “resumption” of productive licensing will commence?It sure would be nice to think that our BOD and temp CEO know something that we don’t that gave them the confidence to make that loan 4 months ago, but based on the history of their decisions, is anyone confident that they are being strategically smart?Could it be that TPL has managed to song and dance them into parting with our money, based on promises that they won’t be able to deliver upon?

To all of those “positive thinkers” or “thankful thinkers” who feel it’s best to release our minds from the burden of thinking and analyzing and just be patent and allow the universe to provide what it will, can you provide something that perhaps shows that the “receiver” of the universe’s gifts will really be shareholders and not the insiders of TPL and PTSC?I’m happy to accept positive thoughts and be patient for just rewards, but when someone keeps stuffing cash into the paper bag under the counter instead of putting it in the cash register, I begin to suspect that I’m being taken advantage of, rather than being overanalytical.But I’m all ears.Please advise.TIA.