Two corrections/clarifications:

I realize it was a long, long time ago, but my recollection is that the original offer from TPL was for $7.5M PLUS 50% of net licensing proceeds. While such would have put us close to where we are now, we could have saved some ownership dispute litigation expense (including, perhaps, the cost of support from Fish). Comparatively speaking, it was not a bad offer.

With regard to the accounting issues, as I have expressed multiple times before, and as you acknowledge, irregularities would be difficult to uncover through the examination of PDS accounting records alone. As you suggest, a truly effective audit (that could uncover concerns) would have to entail examination of Alliacense's accounting records.

But Alliacense is/was a separate corporate entity, with PTSC having no ownership rights in Alliacense (PTSC basically being a customer of Alliacense, thereby contributing funding). This presented a problem, as Alliacense was under no obligation to allow PTSC or anyone access.

Only recently (January/February 2011), through legal/court action and agreements, was PTSC permitted access to Alliacense accounting records.

Recognizing this reality, criticisms of PTSC for not catching accounting irregularities "early on" are IMO not well founded.

I hope the above is helpful.

SGE