Carl, Gloria and Cliff's 2011 Cash Compensation

Fiscal Year ending 2010 was a greedy demonstration by Gloria, Carl and Cliff (non bod) by taking personal cash pay of $707,000 while PTSC suffered more of their failed leadership; racked up Operating Losses of <$12,764,015>, Net Losses of <$6,679,821>, and Total Revenues of only $568,000. Just these three combined, personally took 120% of what the company received in Total Revenue for the entire year.

Counting 4 other Members on the BOD whose combined cash pay was an additional $160,000, and the "relieved" Goerner and Bibeau's cash compensation ... BOD and Executive Officer compensation for FY 2010 was a total of $1,235,000, cash; accounting for something like 1 out of every 5 dollars of our Net Losses, and equaling more than twice what PTSC received in Total annual Revenues.


Would Carl, Gloria and Cliff do it again in FY 2011 ? Lets see how these three "care"ing leaders personally fared when compared with how PTSC itself did.


According to the May 31,2011 10-K:

PTSC had Operating Losses of <$6,439,024> and Net Losses of <$11,515,390>; on Total Revenue of only $468,678.

That's almost twice as much Net Loss as last year, on about 20% less total Revenue.

Loss Per Share increased 50% over FY 2010.

Year end Cash and Cash Equivalents dropped 20%, to $8.5 Million for FY 2011

Stockholder's Equity was cut in half; from $23 Million in May 2010 to $12 Million in May 2011

The way I interpret this, if 2012 was an exact duplicate of 2011, Shareholder's Equity in PTSC would actually become Zero (0) on May 31, 2012.


With "Gloria's" candid and publicly exposed written statements on the still unraveling fallout from our "Major Reorganization" fiasco ("The acquisitions made were Crossflo, Avot and Talis. All failures from the standpoint of representations made." [question: Didn't our Corporate Development M&A Committee verify those "representations" before the purchase ? What was that Committee doing ? Why was the Chairman of the M&A Committee renominated for the BOD and remain M&A Committee Chairman after the "Reorganization" announcement ?] ]"We later realized [question: when, exactly when ?] that our management had ventured into a field they knew nothing about and did not fully understand. Big Mistake." 1/30/2010 Gloria Felcyn email to Debbie) [Question: I wonder what Goerner has to say about your characterization ? Why then did you pay Severences totaling over $150,000 ? Did you demand back the additional Acquisition Bonus money you paid to the company Officers ? Is there a predated official PTSC PR which states this same information, as well as the "120 days" timeframe discussion as your letter to Debbie does ? Do you have an audio recording of the Jan 2010 Chicago SHM held just days earlier where perhaps the same content as your letter was disclosed ? I didn't find any message board postings by attendees reporting that same remarkable information. Your statements contain startling and serious admissions that I hadn't seen elsewhere, did I miss the PR notifying investors at the time you "realized" (or anytime for that matter) management's lack of knowledge, or equating that to a "Big Mistake" for the company, or how this "Big Mistake" would impact our corporate resources and efforts as we tried to undo it ? I don't recall a PR warning Investors with that type of unvarnished clarity, can you direct me to it ? I would think that a fundamental problem of this magnitude, which goes to the very heart of our entire M&A inititive which cost us an extreme amount of time and money, and committed us to many many Millions of dollars, the same Inititive inwhich the company indicated in a piechart on it's website (and which was only very recently removed) would contribute 200% more in future revenue generation for PTSC than the MMP would, that a public disclosure/admission of this level of "Big Mistake" would be deserving and extremely significant to Shareholders; don't you think ? Were you upfront about this "knew nothing about" lack of knowledge and understanding by management in your communications with Investors ? I only recall the company giving all kinds of other excuses for reasons why we weren't succeeding with the M&As, not that management "knew nothing about" the field of business we entered. Do you think PTSC Investors were entitled to know the extent of this "knew nothing about" once you "realized" this ? ... and again, when did you "realize" it exactly ? You also wrote "Did we do due diligence. I wish you knew how much due diligence we did". Judging from your own fuller statements, and the actual results of the entire M&A debacle, would it be accurate to say Negligence may have occurred in the M&A inititive process ?].... meanwhile, continuing on with the focus of this post ... with the now publicly and widely recognized failure of strategic leadership and business planning, and with how disasterous the financials turned out in FY 2010, you might think that Gloria, Carl and Cliff would have better visibility and appreciation into the corporate landscape their guidance got us into and might once again anticipate for 2011. Accordingly, you could also imagine that even they might be a little sheepish to repeat the largeness of the combined level of their compensation in FY 2010 considering the straits the company found itself under their direction and management ... and perhaps they were; just a little.

Although all three still took their full cash salaries (Carl, $122,400, Gloria $96,000, Cliff $291,750) the only difference for FY 2011 is that there was no absurd $208,000 cash bonus recorded for Cliff. However, not even considering the still up in the air status of litigation we were embroiled in, when you compare the Company's bottom line to the previous year, the company did TWICE as poorly in 2011; almost doubling our FY2010 Losses. Thus providing yet another example of the continuing disconnect between this failed Leadership's already too high pay, and the compounded downward spiraled fortune of our company under their direction.


For FY ending May 2011 ... Carl, Gloria and Cliff took total cash compensation of $519,673; once again totaling more than the $468,678 the company received in total annual Revenue for the entire year.

For FY ending May 2011, for every $1 PTSC took in in Revenue, just these three were paid $1.11 in cash.

CASH PAY to NET LOSS Ratio
For FY 2010 Carl, Gloria and Cliff combined, were paid $1 for every $9.45 that the company booked in Net Losses; <$6,679,821>.

For FY 2011, Carl, Gloria and Cliff combined ,were paid $1 for ever $22.16 that the company booked in Net Losses; <$11,515,390>.



So, although they did take less actual cash compensation in 2011, that pay, when compared to their performance as measured by Net Loss of the company, was more than double 2010's !!

Said another way, using ratios to compare 2011 to 2010, although their performance for the company's bottom line was almost twice worse, their pay equates to twice as much cash compensation relative to their increased negative performance.



Did Carl, Gloria or Cliff buy any PTSC stock or exercise any PTSC Options with any of their $519,673 cash compensation for FY 2011 ? Just like in 2010 when their pay recorded was $707,000, cash, ... the answer is No.

What was PTSC's average share price in FY 2011 ? 10.6 cents.


In addition to the cash pay above, they also took a combined $52,000 in Stock Options Compensation; perhaps just in case.


These folks are so strategic when it comes to their own benefit, that although the financials correctly show they recorded no Option awards as compensation in FY2010, they immediately awarded themselves (and Cliff) 5 year Options only 72 hours after Fiscal Year May 31, 2010 ended; thus it becoming a FY 2011 compensation item.

Additionally, 3 other (now ex) BOD members received a combined $118,400 in cash pay for FY 2011, making the BOD and Executive Officer compensation for FY 2011 a Total of $638,126; cash.