"Fred is a good listener and a good talker, he's just between a rock and a hard place in many ways"

I’ve only met Fred a couple times back in 1999 & 2000... but my impression was that he was a likeable guy - and not stupid. He should be able to understand our concerns easily enough and it sounds like you have a good rapport with him. Face to face is always best... so how about you talk to him along these lines?

Have him define for you what he believes is his rock and hard place? We are between filings and DM is as much in wait-and-see mode as we are. Does DM still control what he can say? Why exactly is that? Is there a contract in place which keeps him from saying anything and can he provide you with even a redacted copy of that? Or has DM just verbally told him not to talk... and he’s just afraid of getting into trouble? He’s the freaking CEO for crying out loud. Besides, what else could happen? How could things get that much worse? Really, have him explain to you how they could get that much worse if he were to provide some helpful information to shareholders. If he says something about the SEC and insider-information, tell him BS, you’re not asking for anything like that. If he says it’s all that kind of information, tell him BS again. (you know, nicely)

Regarding the re-exam, what are some of the specific points that they intend to address with the examiner and how do they plan to address them? We’ve all read the patents, the court documents, and the transcripts... so come on - we understand the issues. We understand that they may not be able to achieve a favorable outcome. But it’s all between Fred, Woody, Pat, and the examiner. Where’s the harm in giving us (the shareholders and part owners of the company AND its patents) some sense of their strategy and the points they intend to cover during the re-exam? What will they attempt to show and prove technically speaking? Don’t accept an answer that they hope to prove validity or that they’ll be "successful". Define how you expect to achieve success. We don’t need every detail... just some sense of the strategy. They have to have one, right?

Nunchi is the generic name they’ve given to some new technology they are working on. Pat Nunally made it clear in the webcast that the goal was not to develop new technology for its own sake just because they could and to play around... the goal was to develop real solutions that could be sold - he said something like: "so we could participate and be fairly paid for what we bring to the table", or words to that effect. Since they already have patents-pending (or at least filed), when do they expect to be able to discuss more in-depth about what they are developing and what potential value it could bring to the company? They filed some special, "super-secret" type of patent, but if memory serves, it will only stay non-public for so long. When WILL these patents be published (even if not yet issued)? I’ll bet they know or at least have a good idea of a date range. Where’s the harm in giving us that range? It seems to me that if they want to keep it quiet until they can’t, then they still effectively have a deadline - or is this not so? He should be able to tell you one way or the other.

You should try as much as possible to get at whether they have real opportunities in this Nunchi space for actual sales and partnerships or if it’s all a bunch of hooey. I realize as do they how many times this company has "promised" big things only to have whatever they were "working on" fall apart and not come to pass. We’re always the last to know that things have fallen apart and they have always kept up with their story (whether it was true or not) for as long as they could get away with it. Again, I would seek to cut to the chase and determine as best you can whether this Nunchi thing has actual potential and is simply not quite ready yet (but will be soon), or if it is already looking DOA and he’s just afraid to say so. No one turns down a good money-making opportunity just because the economy is bad. They do the opposite... they RUN toward a good money-making opportunity. So if Nunchi is all that they claim, then what is the hold up? How long before they can prove the technology to some buyer/partner versus how long before their window of opportunity closes? Again, they’ve got to have some sort of deadline. How about he share that information with us?

All the above is FWIW. Do as you see fit, man. Good luck in any case.

- Sinkman