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Message: Legal Fees

Well, here, is some info from the most recent report.

PDS reimburses TPL for payment of all legal and third-party expert fees and other related third-party costs and other expenses. During the three months ended August 31, 2010

and 2009, PDS expensed $615,585 and $2,295,208, respectively, pursuant to the agreement. These expenses are recorded in the accompanying statements of operations presented below.

On August 17, 2009, the management committee of PDS resolved to pay TPL $500,000 per quarter beginning on June 1, 2009 and continuing through May 31, 2010 relating to TPL’s special work and effort regarding the MMP litigation and U.S. Patent Office re-examinations.

Selling, general and administrative expenses increased from approximately $917,000 for the three months ended August 31, 2009 to approximately $984,000 for the three months ended August 31, 2010. The increase consisted primarily of approximately $167,000 in legal expense related to our litigation with Deutsche Bank and TPL and approximately $114,000 in consulting expense related to PDSG .

The Crossflo litigation went to arbitration and I'm not sure what the expense was there. Ironically, it appears PTSC is paying more to TPL for legal fees than they are paying 3rd party legal fees to sue TPL.

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