"any revenue is ACCEPTABLE"

Not if the cost to obtain the revenue far exceeds the revenue itself with no imminent prospects of reversing the situation on an ongoing basis.

$11,000 a month for PDSG office space? For how many people? Why not have them telecommute and if necessary move their servers to PTSC's own office closet? If not there already, their website can be hosted on the same servers PTSC uses - maybe their development environments too, if they are still needed.
There's a 4-bedroom 1,957 sq.ft. appartment available for $2,095 a month in Oceanside.
A 4-bedroom house is not much more - and that's how 'shBoom' started.

You can even get a private office in Carlsbad at $399 a month (Executive suites, utilties, T-1 etc included), plus $40 an hour for a Conferece Room (or free at McDonalds I think). $11,000 would pay for 25 such offices, to put this in perspective.

It's SO easy to spend "other people's money" especially when there is NO recourse.