Well, I regret that the only significant "positive" that I've noted is the statement re: percentage ownership of PDS. Other than that, I don't see much at first blush that wasn't basically known.

$11M, no debt. No statement of Subsequent Events.

However, IMO the statement about percentage ownership of PDS may be very significant. With the supposed growing demand for working capital for Alliacense and a belief that TPL/Leckrone may be on financial life support, we could see PTSC as majority owner of PDS - putting us in the driver's seat and enabling a greater percentage of licensing proceeds.

While some believed that the percentage ownership clause of the ComAg was actionable, the loans to TPL caused uncertainty. With that statement in the 10Q (which I do not recall seeing before) that uncertainty is now gone. It strongly suggests that there will be no future loans to TPL (no surprise after past experience) and that their intent is to exercise the percentage ownership clause when possible. IMO, the prospects may be very positive.

I'm glad they've cut Baroni loose.

I'll add a note re: PDSG - not based on the 10Q, but based on Congress finally doing their job and getting the budget passed. I suspect that Government funding has basically been on hold. I know that certain big defense contracts (Vandenberg AFB; ballistic missile intercept) had not been awarded due to funding issues. With the budget now in place, funding may begin to flow within the next few months, if not much sooner. Here I think of that BOA for effort in which PDSG could become engaged. The Government could be ready to rock and roll immediately - they've had plenty of time to prepare! Bottom line, IMO those efforts had been on hold as well, and good things could now happen for PDSG (independent work, partnership, or buy out).

So we have these and more potential bright spots out there, but I'd rather see them "right here" rather than "out there". But they may be closer to "here" than one might think.

FWIW,

SGE