Even when PTSC was losing money quarter-over-quarter and were desperate for cash to remain in existence, were any preferreds issued?

No... just ~150M warrants/shares.. [that would have been an approx conversion rate of 30 to 1 for 5M Preferreds].. of which all were also eligible for divys when the time came... they just had to share those divys..

I wouldn't think S&L would try to play that game here again...........