From 10K for year ending 5/31/2010

We Are Dependent Upon A Joint Venture In Which Our Role Is Of A Passive Nature For Substantially All Of Our Income.

In June 2005, we entered into a joint venture with TPL, pursuant to which TPL is responsible for the licensing and enforcement of our microprocessor patent portfolio. This joint venture has been the source of substantially all of our income since June 2005. Therefore, in light of the absence of significant revenue from other sources, we should be regarded as entirely dependent on the success or failure of the licensing and prosecution efforts of TPL on behalf of the joint venture, and the ability of TPL to obtain capital when necessary to fund its operations. In December 2009 and January 2010, we provided operational funding by loaning TPL $950,000 and $1,000,000, respectively. The $1,000,000 note which was due to be repaid by February 28, 2010 is currently in default, and we have provided a full allowance against this receivable. On July 15, 2010, we received $1,003,095 from PDS for payment on the $950,000 note issued in December 2009. We do not anticipate making additional loans to TPL, and its ability to access liquidity from other sources is not certain. See Part 1, Item 3. “Legal Proceedings” in this Annual Report for more information.

PTSC flat out states that it does not anticipate making additional loans to TPL. Then they turn around and loan $410,000 to Alliacense (owned by TPL) in June 2010.

This is outrageous.