Cashflow issues notwithstanding, three things stand out from this report.

1. The external auditor (KMJ Corbin) report for 2011"effectiveness" is not submitted. Note the clause "audits of effectiveness of internal control over financial reporting for fiscal 2010 only" followed by "Our [KMJ Corbin] audit for the year ended May 31, 2011 included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion for the year ended May 31, 2011."

Yet Gloria Felcyn got $67,200 just to chair the Audit Committee, plus another $28,800.

2. The BOD has the inalienable right to issue up to 5,000,000 shares of Preferred Stock to the gross detriment of holders (us) of Common Stock and with no requirement for Shareholder approval.

3. PDSG in bleeding cash with no sign of recovery. If it is auctioned off it ought to be a Dutch auction - start at $1,000,000 and see how far it drops.
Probably faster, better and cheaper (anyone who knows me personally knows how hard that was to type) to just wind it up, write it off and let one of the smarter programmers take over any support obligations independently.

My betting is that #2 will get enacted pretty soon. I also noticed that stock options for all 3 BOD members expire 60 days from August 12th.

The fees paid to Directors are, as usual, utterly obscene given the pathetic results of their alleged individual and combined efforts. It says a lot about moral character that these fees were accepted in full. I sure wish we could see the Minutes of their meetings.

Maybe I missed it, maybe it's not required in a 10-K, but I didn't see reference to the adoption of the motion to require majority vote counts for Directors.