[X]
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
[_]
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
Delaware
(State
or other jurisdiction of
incorporation
or organization)
|
84-1070278
(I.R.S.
Employer Identification No.)
|
6183
Paseo Del Norte, Suite 180, Carlsbad, California
(Address
of principal executive offices)
|
92011
(Zip
Code)
|
Large
accelerated filer [_]
|
Accelerated
filer [X]
|
Non-accelerated
filer [_]
|
Smaller
reporting company [_]
|
Page
|
|
PART
I. FINANCIAL INFORMATION
|
|
ITEM
1. Financial Statements
|
|
Condensed
consolidated Balance Sheets as of February 28, 2009 (unaudited) and May
31, 2008
|
3
|
Condensed
consolidated Statements of Operations for the three and nine months ended
February 28, 2009 and February 29, 2008 (unaudited)
|
4
|
Condensed
consolidated Statements of Cash Flows for the nine months ended February
28, 2009 and February 29, 2008 (unaudited)
|
5
|
Notes
to condensed consolidated Financial Statements (unaudited)
|
7-36
|
ITEM
2. Management’s Discussion and Analysis of Financial Condition and Results
of Operations
|
37-54
|
ITEM
3. Quantitative and Qualitative Disclosures About Market
Risk
|
54
|
ITEM
4. Controls and Procedures
|
55
|
PART
II. OTHER INFORMATION
|
|
ITEM
1. Legal Proceedings
|
56
|
ITEM
1A. Risk Factors
|
57
|
ITEM
2. Unregistered Sales of Equity Securities and Use of
Proceeds
|
57
|
ITEM
3. Defaults Upon Senior Securities
|
57
|
ITEM
4. Submission of Matters to a Vote of Security Holders
|
57
|
ITEM
5. Other Information
|
57
|
ITEM
6. Exhibits
|
58-60
|
SIGNATURES
|
61
|
February
28,
2009 |
May
31,
2008 |
|||||||
ASSETS
|
(Unaudited)
|
|||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$ | 7,038,888 | $ | 6,424,015 | ||||
Restricted
cash and cash equivalents
|
51,998 | 51,122 | ||||||
Marketable
securities and short term investments
|
68,797 | 298,243 | ||||||
Accounts
receivable
|
809,056 | 538,500 | ||||||
Accounts
receivable - affiliated company
|
9,901 | 7,501 | ||||||
Notes
receivable
|
100,067 | 450,115 | ||||||
Inventory
|
981,801 | 388,141 | ||||||
Work-in-process
|
96,442 | - | ||||||
Prepaid
income taxes
|
- | 222,311 | ||||||
Deferred
tax assets
|
831,170 | 1,390,832 | ||||||
Prepaid
expenses and other current assets
|
213,731 | 79,840 | ||||||
Total
current assets
|
10,201,851 | 9,850,620 | ||||||
Marketable
securities
|
10,318,249 | 12,527,675 | ||||||
Property
and equipment, net
|
94,783 | 68,504 | ||||||
Goodwill
|
1,865,142 | - | ||||||
Other
intangible assets, net
|
5,982,691 | 63,299 | ||||||
Deferred
tax assets
|
3,801,222 | - | ||||||
Other
assets
|
46,885 | 8,190 | ||||||
Investments
in affiliated companies
|
2,808,150 | 2,913,614 | ||||||
Total
assets
|
$ | 35,118,973 | $ | 25,431,902 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ | 506,462 | $ | 555,690 | ||||
Accrued
expenses and other
|
730,095 | 373,848 | ||||||
Notes
payable
|
50,000 | - | ||||||
Deferred
revenue
|
52,055 | - | ||||||
Income
taxes payable
|
1,027,213 | - | ||||||
Total
current liabilities
|
2,365,825 | 929,538 | ||||||
Long
term debt, including accrued interest
|
3,025,421 | - | ||||||
Deferred
tax liabilities
|
- | 1,085,181 | ||||||
Total
long term liabilities
|
3,025,421 | 1,085,181 | ||||||
Total
liabilities
|
5,391,246 | 2,014,719 | ||||||
Commitments and
contingencies
|
||||||||
Minority
interest
|
379,696 | 115,406 | ||||||
Stockholders’
equity:
|
||||||||
Preferred
stock, $0.00001 par value; 5,000,000 shares authorized: none
outstanding
|
- | - | ||||||
Common
stock, $0.00001 par value: 600,000,000 shares authorized: 438,067,618
shares issued and 410,664,229 shares outstanding at February 28, 2009 and
500,000,000 shares authorized: 410,979,163 shares issued and 389,414,915
shares outstanding at May 31, 2008
|
4,380 | 4,109 | ||||||
Additional
paid-in capital
|
76,927,334 | 70,004,814 | ||||||
Accumulated
deficit
|
(32,975,451 | ) | (33,763,357 | ) | ||||
Common
stock held in treasury, at cost – 27,403,389 shares and 21,564,248 shares
at February 28, 2009 and May 31,
2008, respectively
|
(13,819,116 | ) | (12,723,172 | ) | ||||
Accumulated
other comprehensive loss
|
(789,116 | ) | (220,617 | ) | ||||
Total
stockholders’ equity
|
29,348,031 | 23,301,777 | ||||||
Total
liabilities and stockholders’ equity
|
$ | 35,118,973 | $ | 25,431,902 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
February
28,
2009 |
February
29,
2008 |
February
28,
2009 |
February
29,
2008 |
|||||||||||||
Revenues:
|
||||||||||||||||
Product
sales and other
|
$ | 1,193,378 | $ | 801,284 | $ | 4,168,932 | $ | 2,268,484 | ||||||||
License
and service revenue
|
216,823 | - | 475,177 | - | ||||||||||||
Total
revenues
|
1,410,201 | 801,284 | 4,644,109 | 2,268,484 | ||||||||||||
Cost
of sales:
|
||||||||||||||||
Product
sales and other
|
534,555 | 345,084 | 1,819,172 | 852,958 | ||||||||||||
License
and service revenue
|
89,195 | - | 254,335 | - | ||||||||||||
Amortization
of purchased intangibles
|
223,902 | - | 435,204 | - | ||||||||||||
Total
cost of sales
|
847,652 | 345,084 | 2,508,711 | 852,958 | ||||||||||||
Gross
profit
|
562,549 | 456,200 | 2,135,398 | 1,415,526 | ||||||||||||
Operating
expenses:
|
||||||||||||||||
Research
and development
|
117,781 | - | 269,655 | - | ||||||||||||
Selling,
general and administrative
|
2,088,100 | 1,364,077 | 6,194,627 | 5,308,631 | ||||||||||||
Settlement
and license expense
|
- | 417,740 | - | 836,400 | ||||||||||||
Total
operating expenses
|
2,205,881 | 1,781,817 | 6,464,282 | 6,145,031 | ||||||||||||
Operating
loss
|
(1,643,332 | ) | (1,325,617 | ) | (4,328,884 | ) | (4,729,505 | ) | ||||||||
Other
income (expense):
|
||||||||||||||||
Interest
and other income
|
63,257 | 318,284 | 320,850 | 1,093,876 | ||||||||||||
Loss
on sale of assets
|
- | (2,242 | ) | (1,733 | ) | (3,511 | ) | |||||||||
Interest
expense
|
(27,396 | ) | - | (48,158 | ) | (237 | ) | |||||||||
Gain
on sale of subsidiary interest
|
- | - | - | 150,000 | ||||||||||||
Equity
in earnings (loss) of affiliated companies
|
(921,883 | ) | 11,696,265 | 5,746,626 | 15,981,763 | |||||||||||
Total
other income (expense), net
|
(886,022 | ) | 12,012,307 | 6,017,585 | 17,221,891 | |||||||||||
Income
(loss) before income taxes and minority interest
|
(2,529,354 | ) | 10,686,690 | 1,688,701 | 12,492,386 | |||||||||||
Provision
(benefit) for income taxes
|
(1,111,374 | ) | 4,394,505 | 636,505 | 5,746,050 | |||||||||||
Minority
interest
|
71,367 | - | 264,290 | - | ||||||||||||
Net
income (loss)
|
$ | (1,489,347 | ) | $ | 6,292,185 | $ | 787,906 | $ | 6,746,336 | |||||||
Basic
income (loss) per common share
|
$ | - | $ | 0.02 | $ | - | $ | 0.02 | ||||||||
Diluted
income (loss) per common share
|
$ | - | $ | 0.02 | $ | - | $ | 0.02 | ||||||||
Weighted
average number of common shares outstanding-basic
|
408,030,851 | 391,472,101 | 401,578,784 | 391,055,464 | ||||||||||||
Weighted
average number of common shares outstanding-diluted
|
408,030,851 | 395,666,621 | 404,026,257 | 396,382,070 |
Nine
months ended
|
||||||||
February
28,
2009 |
February
29,
2008 |
|||||||
Operating
activities:
|
||||||||
Net
income
|
$ | 787,906 | $ | 6,746,336 | ||||
Adjustments
to reconcile net income to net cash used in operating
activities:
|
||||||||
Minority
interest in variable interest entity
|
264,290 | - | ||||||
Amortization
and depreciation
|
486,015 | 36,454 | ||||||
Non-cash
compensation relating to issuance of stock options and vesting
of warrants
|
324,380 | 407,652 | ||||||
Accrued
interest income added to investments and notes receivable
|
(8,287 | ) | (959 | ) | ||||
Equity
in earnings of affiliated companies
|
(5,746,626 | ) | (15,981,763 | ) | ||||
Loss
on disposal of assets
|
1,733 | 3,513 | ||||||
Value
of stock issued in connection with legal settlement
|
- | 100,000 | ||||||
Write-off
of patent costs
|
21,527 | - | ||||||
Deferred
income taxes
|
(1,762,371 | ) | (9,473,195 | ) | ||||
Gain
on VIE sale of portion of subsidiary interest
|
- | (150,000 | ) | |||||
Reversal
of tax effect of exercise of options
|
- | (25,645 | ) | |||||
Changes
in operating assets and liabilities, net of effects of
acquisitions:
|
||||||||
Accounts
receivable
|
(144,377 | ) | (45,584 | ) | ||||
Receivable
from affiliated company
|
(2,400 | ) | (3,616 | ) | ||||
Inventory
|
(593,660 | ) | (269,594 | ) | ||||
Work-in-process
|
(84,784 | ) | - | |||||
Prepaid
expenses and other current assets
|
74,893 | 250,896 | ||||||
Prepaid
income taxes
|
222,311 | 2,070,981 | ||||||
Accounts
payable and accrued expenses
|
(182,544 | ) | (1,425,157 | ) | ||||
Deferred
revenue
|
52,055 | - | ||||||
Income
taxes payable
|
1,027,213 | 3,982,909 | ||||||
Net
cash used in operating activities
|
(5,262,726 | ) | (13,776,772 | ) | ||||
Investing
activities:
|
||||||||
Proceeds
from sales of marketable securities
|
1,582,287 | 6,800,159 | ||||||
Purchases
of short-term investments
|
(102,629 | ) | (18,072,953 | ) | ||||
Proceeds
from sale of restricted investments
|
- | 52,500 | ||||||
Purchases
of property and equipment
|
(23,681 | ) | (20,411 | ) | ||||
Proceeds
from sale of property and equipment
|
- | 125 | ||||||
Costs
incurred for patents and trademarks
|
- | (7,344 | ) | |||||
Proceeds
from VIE sale of portion of subsidiary interest
|
- | 100,000 | ||||||
Issuance
of notes receivable
|
(133,000 | ) | - | |||||
Cash
received from repayment of note receivable
|
50,243 | - | ||||||
Purchases
of convertible notes receivable
|
(667,750 | ) | - | |||||
Investments
in affiliated companies
|
(1,546,500 | ) | - | |||||
Distributions
from affiliated company
|
7,648,589 | 16,666,800 | ||||||
Cash
paid in Crossflo acquisition, net of cash acquired
|
(2,578,281 | ) | - | |||||
Cash
paid in Verras Medical acquisition, net of cash acquired
|
(98,824 | ) | - | |||||
Net
cash provided by investing activities
|
4,130,454 | 5,518,876 | ||||||
Financing
activities:
|
||||||||
Proceeds
from exercise of common stock warrants and options
|
5,000 | 18,200 | ||||||
Repurchase
of warrants
|
- | (2,760,900 | ) | |||||
Payments
on notes payable
|
(416,393 | ) | - | |||||
Issuance
of notes payable
|
3,250,000 | - | ||||||
Repurchase
of common stock for treasury
|
(1,095,944 | ) | (3,042,921 | ) | ||||
Tax
effect of exercise of options granted under APB 25
|
4,482 | - | ||||||
Net
cash provided by (used in) financing activities
|
1,747,145 | (5,785,621 | ) | |||||
Net
increase (decrease) in cash and cash equivalents
|
614,873 | (14,043,517 | ) | |||||
Cash
and cash equivalents, beginning of period
|
6,424,015 | 21,605,428 | ||||||
Cash
and cash equivalents, end of period
|
$ | 7,038,888 | $ | 7,561,911 |
Nine
months ended
|
||||||||
February
28,
2009 |
February
29,
2008 |
|||||||
Supplemental
Disclosure of Cash Flow Information:
|
||||||||
Cash
payments for interest
|
$ | 48,158 | $ | 237 | ||||
Cash
payments for income taxes
|
$ | 1,143,785 | $ | 9,191,000 | ||||
Supplemental
Disclosure of Non-Cash Investing and Financing
Activities:
|
||||||||
Cashless
exercise of stock options
|
$ | - | $ | 10 | ||||
Cashless
exercise of warrants
|
$ | - | $ | 25 | ||||
Note
receivable issued in connection with VIE sale of portion of subsidiary
interest
|
$ | - | $ | 50,000 | ||||
Conversion
of note receivable to preferred stock – Avot Media, Inc.
|
$ | 250,000 | $ | - | ||||
Insurance
premium financed with a note payable
|
$ | 210,888 | $ | - | ||||
Deferred
tax benefit related to unrealized loss on investments in marketable
securities charged to other comprehensive income
|
$ | (390,927 | ) | $ | - | |||
Conversion
of notes receivable plus accrued interest in connection with Crossflo
Systems, Inc. acquisition
|
$ | 824,600 | $ | - | ||||
Common
stock issued in connection with Crossflo Systems, Inc.
acquisition
|
$ | 6,582,214 | $ | - | ||||
Conversion
of note receivable plus accrued interest in connection with Verras
Medical, Inc. acquisition
|
$ | 33,154 | $ | - |
Three
Months Ended February 28, 2009
|
||||||||||||
Numerator
(Income) |
Denominator
(Shares) |
Per
Share Amount
|
||||||||||
Basic
EPS:
|
||||||||||||
Net loss
|
$ | (1,489,347 | ) | 408,030,851 | $ | - | ||||||
Diluted
EPS:
|
||||||||||||
Effect
of dilutive securities:
|
||||||||||||
Options and
warrants
|
- | - | ||||||||||
Loss
available to common shareholders
|
$ | (1,489,347 | ) | 408,030,851 | $ | - |
Three
Months Ended February 29, 2008
|
||||||||||||
Numerator
(Income) |
Denominator
(Shares) |
Per
Share Amount
|
||||||||||
Basic
EPS:
|
||||||||||||
Net income
|
$ | 6,292,185 | 391,472,101 | $ | 0.02 | |||||||
Diluted
EPS:
|
||||||||||||
Effect
of dilutive securities:
|
||||||||||||
Options and
warrants
|
- | 4,194,520 | ||||||||||
Income
available to common shareholders
|
$ | 6,292,185 | 395,666,621 | $ | 0.02 |
Nine
Months Ended February 28, 2009
|
||||||||||||
Numerator
(Income) |
Denominator
(Shares) |
Per
Share Amount
|
||||||||||
Basic
EPS:
|
||||||||||||
Net income
|
$ | 787,906 | 401,578,784 | $ | - | |||||||
Diluted
EPS:
|
||||||||||||
Effect
of dilutive securities:
|
||||||||||||
Options and
warrants
|
- | 582,313 | ||||||||||
Add:
escrow shares
|
- | 1,865,160 | ||||||||||
Income
available to common shareholders
|
$ | 787,906 | 404,026,257 | $ | - |
Nine
Months Ended February 29, 2008
|
||||||||||||
Numerator
(Income) |
Denominator
(Shares) |
Per
Share Amount
|
||||||||||
Basic
EPS:
|
||||||||||||
Net income
|
$ | 6,746,336 | 391,055,464 | $ | 0.02 | |||||||
Diluted
EPS:
|
||||||||||||
Effect
of dilutive securities:
|
||||||||||||
Options and
warrants
|
- | 5,326,606 | ||||||||||
Income
available to common shareholders
|
$ | 6,746,336 | 396,382,070 | $ | 0.02 |
Three
Months
Ended
|
Nine
Months
Ended |
Three
Months
Ended
|
Nine
Months
Ended |
|||||||||
February
28,
2009
(Unaudited)
|
February
28, 2009
(Unaudited) |
February
29,
2008
(Unaudited)
|
February
29, 2008
(Unaudited)
|
|||||||||
Expected
term
|
5
|
years |
5
|
years |
5
|
years |
5
|
years | ||||
Expected
volatility
|
120-125
|
% |
120-125
|
% |
124
|
% |
124-128
|
% | ||||
Risk-free
interest rate
|
1.67-1.75
|
% |
1.67–3.23
|
% |
2.5
|
% |
2.5
– 4.96
|
% | ||||
Expected
dividends
|
2.82
|
% |
2.82
|
% |
2.82
|
% |
2.82
|
% |
Shares
|
Weighted
Average Exercise Price
|
Weighted
Average Remaining Contractual Term (Years)
|
Aggregate
Intrinsic Value
|
|||||||||||||
Options
outstanding at June 1, 2008
|
8,195,000 | $ | 0.44 | |||||||||||||
Options
granted
|
1,950,000 | $ | 0.21 | |||||||||||||
Options
exercised
|
(100,000 | ) | $ | 0.05 | ||||||||||||
Options
forfeited
|
(65,000 | ) | $ | 0.50 | ||||||||||||
Options
outstanding at February 28, 2009
|
9,980,000 | $ | 0.40 | 3.38 | $ | 2,550 | ||||||||||
Options
vested and expected to vest at February 28, 2009
|
7,667,832 | $ | 0.40 | 3.24 | $ | 2,550 | ||||||||||
Options
exercisable at February 28, 2009
|
5,536,632 | $ | 0.45 | 2.74 | $ | 2,550 |
Three
Months Ended
|
Nine
Months Ended
|
Three
Months Ended
|
Nine
Months
Ended
|
|||||||||||||
February 28,
2009
|
February
28, 2009
|
February29,
2008
|
February
29, 2008
|
|||||||||||||
Research
and development - Crossflo
|
$ | 397 | $ | 774 | $ | - | $ | - | ||||||||
Selling,
general and administrative expense - Crossflo
|
16,189 | 31,759 | - | - | ||||||||||||
Selling,
general and administrative expense - Patriot
|
34,659 | 281,866 | 61,517 | 407,652 | ||||||||||||
Total
|
$ | 51,245 | $ | 314,399 | $ | 61,517 | $ | 407,652 |
Purchase
consideration:
|
||||
Price
per share
|
$
|
0.24389
|
||
Number
of common shares issued
|
26,988,455
|
|||
Value
of shares issued
|
6,582,214
|
|||
Cash
paid, including acquisition costs
|
2,850,790
|
|||
Principal
and interest on convertible notes
|
824,600
|
|||
$
|
10,257,604
|
Net
Operating
Loss
Carryforward
|
Tax
Rate
|
Deferred
Tax
Asset
|
||||||||||
Federal
|
$
|
11,995,697
|
35%
|
$
|
4,198,494
|
|||||||
California
|
7,810,697
|
5.746%
|
448,802
|
|||||||||
$
|
19,806,394
|
$
|
4,647,296
|
Identifiable
intangible assets acquired
|
$
|
6,071,400
|
||
Tax
rate
|
40.746
%
|
|
||
$
|
2,473,853
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||
February 29,
2008
|
February 28,
2009
|
February 29,
2008
|
||||||||||
Revenue
|
$ | 916,777 | $ | 4,869,733 | $ | 2,610,723 | ||||||
Net
income (loss)
|
$ | 5,431,500 | $ | (113,414 | ) | $ | 4,404,301 | |||||
Earnings
per common share—basic
|
$ | 0.01 | $ | - | $ | 0.01 | ||||||
Earnings
per common share—diluted
|
$ | 0.01 | $ | - | $ | 0.01 |
Purchase
consideration:
|
||||
Cash
paid, including acquisition costs
|
$
|
103,071
|
||
Non-interest
bearing payable
|
400,000
|
|||
Conversion
of note receivable into cash consideration
|
33,154
|
|||
$
|
536,225
|
Net
Carrying Value
|
|||||||||||||
Estimated
|
Allocated
|
Accumulated
|
February
28,
|
||||||||||
Life
in Years
|
Value
|
Amortization
|
2009
|
||||||||||
Customer
contracts – open orders
|
0.75
|
$
|
63,600
|
$
|
(42,402
|
)
|
$
|
21,198
|
|||||
Customer
relationships
|
5.00
|
36,000
|
(1,800
|
)
|
34,200
|
||||||||
Maintenance
agreements
|
4.00
|
75,400
|
(9,426
|
)
|
65,974
|
||||||||
Trademarks/names
|
10.00
|
110,000
|
(2,750
|
)
|
107,250
|
||||||||
Technologies
and processes
|
5.00–8.00
|
6,093,400
|
(378,826
|
)
|
5,714,574
|
||||||||
Patents
|
14.00-20.00
|
47,801
|
(8,306
|
)
|
39,495
|
||||||||
$
|
6,426,201
|
$
|
(443,510
|
)
|
$
|
5,982,691
|
Year
|
||||||
2009
|
$ | 224,658 | ||||
2010
|
813,840 | |||||
2011
|
813,840 | |||||
2012
|
813,840 | |||||
2013
|
799,693 | |||||
Thereafter
|
2,516,820 |
Balance,
June 1, 2008
|
$ | - | ||
Goodwill
of Crossflo acquired (see Note 2)
|
1,668,630 | |||
Goodwill
of Verras acquired (see Note 2)
|
196,512 | |||
Balance,
February 28, 2009
|
$ | 1,865,142 |
Quoted
Prices in
Active Markets
Level
1
|
Significant
Other Observable Inputs
Level
2
|
Significant
Unobservable
Inputs
Level
3
|
Balance
as of
February 28,
2009
|
|||||||||||||
Auction
rate securities
|
$
|
—
|
$
|
—
|
$
|
10,318,249
|
$
|
10,318,249
|
(Unaudited)
|
|
Fair Value Measurements Using Significant
Unobservable
Inputs (Level 3)
|
||||||
Description
|
|
Auction
Rate
Securities
|
Total
|
|||||
Beginning
balance
|
|
$
|
—
|
$
|
—
|
|||
Transfers
in to Level 3
|
|
12,900,000
|
12,900,000
|
|||||
Total
realized/unrealized losses:
|
|
|||||||
Included
in earnings
|
|
—
|
—
|
|||||
Included
in comprehensive income (loss)
|
|
(1,331,751
|
)
|
(1,331,751
|
)
|
|||
Purchases,
issuances and settlements
|
|
(1,250,000
|
)
|
(1,250,000
|
)
|
|||
Ending
balance
|
|
$
|
10,318,249
|
$
|
10,318,249
|
|||
|
||||||||
Total
amount of unrealized losses for the nine months ended February 28, 2009
included in other comprehensive income (loss) attributable to the change
in fair market value relating to assets still held at the reporting
date
|
|
$
|
(959,426
|
)
|
$
|
(959,426
|
)
|
February
28,
2009 |
May
31,
2008 |
|||||||
PTSC
|
$ | - | $ | 26,959 | ||||
Holocom
|
662,426 | 511,541 | ||||||
Crossflo
|
146,630 | - | ||||||
Total
|
$ | 809,056 | $ | 538,500 |
As
of February 28, 2009
|
||||||||||||
Cost
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
||||||||||
Short-term
|
||||||||||||
Accrued
interest - auction rate securities
|
$ | 68,797 | $ | — | $ | 68,797 | ||||||
Long-term
|
||||||||||||
Auction
rate securities
|
11,650,000 | (1,331,751 | ) | 10,318,249 | ||||||||
Total
|
$ | 11,718,797 | $ | (1,331,751 | ) | $ | 10,387,046 |
February
28,
2009 |
May
31,
2008 |
||||||||
Cash
and cash equivalents
|
$ | 3,699,060 | $ | 8,260,288 | |||||
Total
assets
|
$ | 3,699,060 | $ | 8,260,288 |
February
28,
2009 |
May
31,
2008 |
|||||||
Accounts
payable and accrued expenses
|
$ | 1,696,526 | $ | 3,204,519 | ||||
LLC
tax payable
|
11,790 | 11,790 | ||||||
Members’
equity
|
1,990,744 | 5,043,979 | ||||||
Total
liabilities and members’ equity
|
$ | 3,699,060 | $ | 8,260,288 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
February
28,
2009 |
February
29,
2008 |
February
28,
2009 |
February
29,
2008 |
|||||||||||||
Revenues
|
$ | 290,000 | $ | 27,918,970 | $ | 19,340,000 | $ | 48,851,970 | ||||||||
Operating
expenses
|
1,807,244 | 2,735,261 | 5,893,877 | 16,334,021 | ||||||||||||
Operating
income (loss)
|
(1,517,244 | ) | 25,183,709 | 13,446,123 | 32,517,949 | |||||||||||
Interest
and other income
|
15,202 | 64,696 | 58,580 | 177,281 | ||||||||||||
Net
income (loss)
|
$ | (1,502,042 | ) | $ | 25,248,405 | $ | 13,504,703 | $ | 32,695,230 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
February
28,
2009 |
February
29,
2008 |
February
28,
2009 |
February
29,
2008 |
|||||||||||||
Net
income (loss)
|
$ | (1,489,347 | ) | $ | 6,292,185 | $ | 787,906 | $ | 6,746,336 | |||||||
Unrealized
holding gains (losses) on investments, net of taxes
|
41,226 | - | (568,499 | ) | - | |||||||||||
Total
comprehensive income (loss)
|
$ | (1,448,121 | ) | $ | 6,292,185 | $ | 219,407 | $ | 6,746,336 |
Common
Stock
|
Additional
|
Accumulated
|
|||||||||||||||||||
Shares
|
Amounts
|
Paid-in
Capital
|
Deficit
|
Treasury
Stock
|
|||||||||||||||||
Balance
June 1, 2008
|
389,414,915 | $ | 4,109 | $ | 70,004,814 | $ | (33,763,357 | ) | $ | (12,723,172 | ) | ||||||||||
Non-cash
compensation
|
-- | - | 324,380 | - | - | ||||||||||||||||
Repurchase
of common stock for treasury
|
(5,839,141 | ) | - | - | - | (1,095,944 | ) | ||||||||||||||
Exercise
of options at $0.05 per share
|
100,000 | 1 | 4,999 | - | - | ||||||||||||||||
Issuance
of stock in connection with acquisition
|
26,988,455 | 270 | 6,581,944 | - | - | ||||||||||||||||
Dissolution
of subsidiary
|
-- | - | 6,715 | - | - | ||||||||||||||||
Tax
effect of exercise of options under APB 25
|
-- | - | 4,482 | - | - | ||||||||||||||||
Net
income
|
-- | - | - | 787,906 | - | ||||||||||||||||
Balance
February 28, 2009
|
410,664,229 | $ | 4,380 | $ | 76,927,334 | $ | (32,975,451 | ) | $ | (13,819,116 | ) |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
February
28, 2009
|
February
29, 2008
|
February
28, 2009
|
February
29, 2008
|
|||||||||||||
Net
revenue:
|
||||||||||||||||
Holocom
|
$ | 1,187,128 | $ | 784,447 | $ | 4,117,152 | $ | 2,229,592 | ||||||||
Crossflo
|
216,823 | - | 475,177 | - | ||||||||||||
All
other
|
6,250 | 16,837 | 51,780 | 38,892 | ||||||||||||
Total
net revenue
|
$ | 1,410,201 | $ | 801,284 | $ | 4,644,109 | $ | 2,268,484 | ||||||||
Operating
income (loss):
|
||||||||||||||||
Holocom
|
$ | 115,839 | $ | (44,376 | ) | $ | 575,981 | $ | (69,418 | ) | ||||||
Crossflo
|
(1,037,586 | ) | - | (1,943,642 | ) | - | ||||||||||
All
other
|
(721,585 | ) | (1,281,241 | ) | (2,961,223 | ) | (4,660,087 | ) | ||||||||
Total
operating loss
|
(1,643,332 | ) | $ | (1,325,617 | ) | $ | (4,328,884 | ) | $ | (4,729,505 | ) | |||||
Income
(loss) before taxes:
|
||||||||||||||||
Holocom
|
$ | 116,815 | $ | (38,667 | ) | $ | 574,084 | $ | 85,381 | |||||||
Crossflo
|
(1,037,586 | ) | - | (1,942,389 | ) | - | ||||||||||
All
other
|
(1,608,583 | ) | 10,725,357 | 3,057,006 | 12,407,005 | |||||||||||
Total
income (loss) before taxes
|
$ | (2,529,354 | ) | $ | 10,686,690 | $ | 1,688,701 | $ | 12,492,386 |
February
28, 2009
|
May
31, 2008
|
|||||||
Total
assets:
|
||||||||
Holocom
|
$ | 1,782,756 | $ | 1,383,941 | ||||
Crossflo
|
10,153,967 | - | ||||||
All
other
|
23,182,250 | 24,047,961 | ||||||
Total
assets
|
$ | 35,118,973 | $ | 25,431,902 |
Nine
months ended
February
28, 2009
|
February
28, 2009
|
Nine
months ended
February
29, 2008
|
May
31, 2008
|
|||||||||||||||||||||
Sales
|
%
of sales
|
%
of A/R
|
Sales
|
%
of sales
|
%
of A/R
|
|||||||||||||||||||
Customer
A
|
$ | 1,759,561 | 42 | % | 9 | % | $ | 927,647 | 42 | % | 16 | % | ||||||||||||
Customer
B
|
$ | 661,638 | 16 | % | 8 | % | $ | 491,576 | 22 | % | 38 | % | ||||||||||||
Customer
C
|
$ | 899,540 | 22 | % | 37 | % | ---- | ---- | ---- | |||||||||||||||
Customer
D
|
$ | 155,380 | 4 | % | 19 | % | ---- | ---- | ---- | |||||||||||||||
Customer
E
|
$ | 121,830 | 3 | % | 15 | % | ---- | ---- | ---- |
Nine
months ended
February
28, 2009
|
February
28, 2009
|
Nine
months ended
February
29, 2008
|
May
31, 2008
|
|||||||||||||||||||||
Sales
|
%
of sales
|
%
of A/R
|
Sales
|
%
of sales
|
%
of A/R
|
|||||||||||||||||||
Customer
A
|
$ | 248,487 | 52 | % | ---- | ---- | ---- | ---- | ||||||||||||||||
Customer
C
|
$ | 81,387 | 17 | % | 48 | % | ---- | ---- | ---- | |||||||||||||||
Customer
D
|
$ | 4,650 | 1 | % | 12 | % | ---- | ---- | ---- | |||||||||||||||
Customer
E
|
$ | 26,128 | 6 | % | 15 | % | ---- | ---- | ---- | |||||||||||||||
Customer
F
|
$ | 17,500 | 4 | % | 12 | % | ---- | ---- | ---- |
1.
|
Revenue
Recognition
|
2.
|
Assessment
of Contingent Liabilities
|
3.
|
Stock
Options and Warrants
|
4.
|
Income
Taxes
|
5.
|
Investments
in Affiliated Companies
|
6.
|
Variable
Interest Entity
|
Three
Months Ended
|
||||||||
February
28, 2009
|
February
29, 2008
|
|||||||
Revenues:
|
||||||||
Product
sales and other
|
$ | 1,193,378 | $ | 801,284 | ||||
License
and service revenue
|
216,823 | - | ||||||
Total
revenues
|
1,410,201 | 801,284 | ||||||
Cost
of sales:
|
||||||||
Product
sales and other
|
534,555 | 345,084 | ||||||
License
and service revenue
|
89,195 | - | ||||||
Amortization
of purchased intangibles
|
223,902 | - | ||||||
Total
cost of sales
|
847,652 | 345,084 | ||||||
Gross
profit
|
$ | 562,549 | $ | 456,200 |
Three
months ended
|
||||||||||||||||
February
28, 2009
|
February
29, 2008
|
|||||||||||||||
Holocom:
|
Dollars
|
%
of Revenue
|
Dollars
|
%
of Revenue
|
||||||||||||
Revenues
- Product sales and other
|
$ | 1,187,128 | 100.0 | % | $ | 784,447 | 100.0 | % | ||||||||
Cost
of sales
|
534,555 | 45 | % | 345,084 | 44 | % | ||||||||||
Gross
profit
|
$ | 652,573 | 55 | % | $ | 439,363 | 56 | % | ||||||||
Crossflo:
|
||||||||||||||||
License
and service revenue
|
$ | 216,823 | 100.0 | % | $ | - | - | |||||||||
Cost
of sales
|
89,195 | 41.1 | % | - | - | |||||||||||
Amortization
of purchased intangibles
|
223,902 | - | - | - | ||||||||||||
Gross
loss
|
$ | (96,274 | ) | - | $ | - | - | |||||||||
PTSC:
|
||||||||||||||||
Revenues
- Product sales and other
|
$ | 6,250 | 100.0 | % | $ | 16,837 | 100.0 | % | ||||||||
Cost
of sales
|
- | - | - | - | ||||||||||||
Gross
profit
|
$ | 6,250 | 100.0 | % | $ | 16,837 | 100.0 | % |
Three
months ended
|
||||||||
February
28, 2009
|
February
29, 2008
|
|||||||
Research
and development
|
$ | 117,781 | $ | - |
Three
months ended
|
||||||||
February
28, 2009
|
February
29, 2008
|
|||||||
Selling,
general and administrative
|
$ | 2,088,100 | $ | 1,364,077 |
Three
months ended
|
||||||||
February
28, 2009
|
February
29, 2008
|
|||||||
Holocom:
|
||||||||
Selling,
general and administrative
|
$ | 536,734 | $ | 483,739 | ||||
Crossflo:
|
||||||||
Selling,
general and administrative
|
$ | 823,531 | $ | - | ||||
PTSC:
|
||||||||
Selling,
general and administrative
|
$ | 727,835 | $ | 880,338 |
Three
months ended
|
||||||||
February
28, 2009
|
February
29, 2008
|
|||||||
Settlement
and license expense
|
$ | - | $ | 417,740 |
Three
months ended
|
||||||||
February
28, 2009
|
February
29, 2008
|
|||||||
Other
income (expense):
|
||||||||
Interest
and other income
|
$ | 63,257 | $ | 318,284 | ||||
Loss
on sale of assets
|
- | (2,242 | ) | |||||
Interest
expense
|
(27,396 | ) | - | |||||
Equity
in earnings (loss) of affiliated companies
|
(921,883 | ) | 11,696,265 | |||||
Total
other income (expense), net
|
$ | (886,022 | ) | $ | 12,012,307 |
Three
months ended
|
||||||||
February
28, 2009
|
February
29, 2008
|
|||||||
Holocom:
|
||||||||
Interest
and other income
|
$ | 2,951 | $ | 12,084 | ||||
Interest
expense
|
(1,975 | ) | - | |||||
Loss
on sale of assets
|
- | - | ||||||
Total
other income, net
|
$ | 976 | $ | 12,084 | ||||
Crossflo:
|
||||||||
Interest
and other income
|
$ | - | $ | - | ||||
Interest
expense
|
- | - | ||||||
Loss
on sale of assets
|
- | - | ||||||
Total
other income, net
|
$ | - | $ | - | ||||
PTSC:
|
||||||||
Interest
and other income
|
$ | 60,306 | $ | 306,200 | ||||
Interest
expense
|
(25,421 | ) | - | |||||
Loss
on sale of assets
|
- | (2,242 | ) | |||||
Equity
in earnings (loss) of affiliated companies
|
(921,883 | ) | 11,696,265 | |||||
Total
other income (expense), net
|
$ | (886,998 | ) | $ | 12,000,223 |
Nine
Months Ended
|
||||||||
February
28, 2009
|
February
29, 2008
|
|||||||
Revenues:
|
||||||||
Product
sales and other
|
$ | 4,168,932 | $ | 2,268,484 | ||||
License
and service revenue
|
475,177 | - | ||||||
Total
revenues
|
4,644,109 | 2,268,484 | ||||||
Cost
of sales:
|
||||||||
Product
sales and other
|
1,819,172 | 852,958 | ||||||
License
and service revenue
|
254,335 | - | ||||||
Amortization
of purchased intangibles
|
435,204 | - | ||||||
Total
cost of sales
|
2,508,711 | 852,958 | ||||||
Gross
profit
|
$ | 2,135,398 | $ | 1,415,526 |
Nine
months ended
|
||||||||||||||||
February
28, 2009
|
February
29, 2008
|
|||||||||||||||
Holocom:
|
Dollars
|
%
of Revenue
|
Dollars
|
%
of Revenue
|
||||||||||||
Revenues
- Product sales and other
|
$ | 4,117,152 | 100.0% | $ | 2,229,592 | 100.0% | ||||||||||
Cost
of sales
|
1,819,172 | 44.2% | 852,958 | 38.3% | ||||||||||||
Gross
profit
|
$ | 2,297,980 | 55.8% | $ | 1,376,634 | 61.7% | ||||||||||
Crossflo:
|
||||||||||||||||
License
and service revenue
|
$ | 475,177 | 100.0% | $ | - | - | ||||||||||
Cost
of sales
|
254,335 | 53.5% | - | - | ||||||||||||
Amortization
of purchased intangibles
|
435,204 | - | - | - | ||||||||||||
Gross
loss
|
$ | (214,362 | ) | - | $ | - | - |
PTSC:
|
||||||||||||||||
Revenues
- Product sales and other
|
$ | 51,780 | 100.0% | $ | 38,892 | 100.0% | ||||||||||
Cost
of sales
|
- | - | - | - | ||||||||||||
Gross
profit
|
$ | 51,780 | 100.0% | $ | 38,892 | 100.0% |
Nine
months ended
|
||||||||
February
28, 2009
|
February
29, 2008
|
|||||||
Research
and development
|
$ | 269,655 | $ | - |
Nine
months ended
|
||||||||
February
28, 2009
|
February
29, 2008
|
|||||||
Selling,
general and administrative
|
$ | 6,194,627 | $ | 5,308,631 |
Nine
months ended
|
||||||||
February
28, 2009
|
February
29, 2008
|
|||||||
Holocom:
|
||||||||
Selling,
general and administrative
|
$ | 1,721,999 | $ | 1,446,052 | ||||
Crossflo:
|
||||||||
Selling,
general and administrative
|
$ | 1,459,625 | $ | - | ||||
PTSC:
|
||||||||
Selling,
general and administrative
|
$ | 3,013,003 | $ | 3,862,579 |
Nine
months ended
|
||||||||
February
28, 2009
|
February
29, 2008
|
|||||||
Settlement
and license expense
|
$ | - | $ | 836,400 |
Nine
months ended
|
||||||||
February
28, 2009
|
February
29, 2008
|
|||||||
Other
income (expense):
|
||||||||
Interest
and other income
|
$ | 320,850 | $ | 1,093,876 | ||||
Loss
on sale of assets
|
(1,733 | ) | (3,511 | ) | ||||
Interest
expense
|
(48,158 | ) | (237 | ) | ||||
Gain
on sale of subsidiary interest
|
- | 150,000 | ||||||
Equity
in earnings of affiliated companies
|
5,746,626 | 15,981,763 | ||||||
Total
other income, net
|
$ | 6,017,585 | $ | 17,221,891 |
Nine
months ended
|
||||||||
February
28, 2009
|
February
29, 2008
|
|||||||
Holocom:
|
||||||||
Interest
and other income
|
$ | 5,919 | $ | 23,477 | ||||
Interest
expense
|
(4,549 | ) | (237 | ) | ||||
Gain
on sale of subsidiary interest
|
- | 150,000 | ||||||
Total
other income, net
|
$ | 1,370 | $ | 173,240 | ||||
Crossflo:
|
||||||||
Interest
and other income
|
$ | 3,003 | $ | - | ||||
Interest
expense
|
(17 | ) | - | |||||
Loss
on sale of assets
|
(1,733 | ) | - | |||||
Total
other income, net
|
$ | 1,253 | $ | - | ||||
PTSC:
|
||||||||
Interest
and other income
|
$ | 311,928 | $ | 1,070,399 | ||||
Interest
expense
|
(43,592 | ) | - | |||||
Loss
on sale of assets
|
- | (3,511 | ) | |||||
Equity
in earnings of affiliated companies
|
5,746,626 | 15,981,763 | ||||||
Total
other income, net
|
$ | 6,014,962 | $ | 17,048,651 |
Contractual
Cash
Obligations
|
Total
Amounts
Committed
|
1-3
Years
|
3-6
Years
|
|||||||||
Operating
leases - facilities
|
$ | 500,766 | $ | 491,727 | $ | 9,039 | ||||||
Repayments
of short term debt
|
$ | 50,000 | $ | 50,000 | $ | - | ||||||
Repayments
of long term debt
|
$ | 3,025,421 | $ | - | $ | 3,025,421 | ||||||
Retention
bonus payments to former Crossflo employees
|
$ | 230,000 | $ | 230,000 | $ | - | ||||||
Payments
to Verras for asset acquisition
|
$ | 400,000 | $ | 400,000 | $ | - |
Period
|
Total
Number of Shares Purchased
|
Average
Price Paid per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced Plans or
Programs
|
|||||||||
December
1 – 31, 2008
|
200,000 | $ | 0.13 | 200,000 | ||||||||
January
1 – 31, 2009
|
250,750 | $ | 0.13 | 250,750 | ||||||||
February
1 – 28, 2009
|
69,415 | $ | 0.11 | 69,415 | ||||||||
Total
|
520,165 | $ | 0.13 | 520,165 |
Exhibit No.
|
Document
|
2.1
|
Agreement
to Exchange Technology for Stock in the Company, incorporated by reference
to Exhibit 2.1 to Form 8-K dated August 10, 1989 (Commission
file No. 33-23143-FW)
|
2.2
|
Assets
Purchase Agreement and Plan of Reorganization dated June 22, 1994,
among the Company, nanoTronics Corporation and Helmut Falk, incorporated
by reference to Exhibit 10.4 to Form 8-K dated July 6, 1994
(Commission file No. 000-22182)
|
2.2.1
|
Amendment
to Development Agreement dated April 23, 1996 between the Company and
Sierra Systems, incorporated by reference to Exhibit 2.2.1 to
Pre-Effective Amendment No. 1 to Registration Statement on Form SB-2
filed April 29, 1996 (Commission file No. 333-01765)
|
2.3
|
Form
of Exchange Offer dated December 4, 1996 between the Company and
certain shareholders of Metacomp, Inc., incorporated by reference to
Exhibit 2.3 to Form 8-K filed January 9, 1997 (Commission file
No. 000-22182)
|
2.4
|
Letter
of Transmittal to Accompany Shares of Common Stock of Metacomp, Inc.
Tendered Pursuant to the Exchange Offer dated December 4, 1996,
incorporated by reference to Exhibit 2.4 to Form 8-K filed
January 9, 1997 (Commission file No. 000-22182)
|
2.5
|
Agreement
and Plan of Merger dated August 4, 2008, among the Company, PTSC
Acquisition 1 Corp, Crossflo Systems, Inc. and the Crossflo principal
officers, incorporated by reference to Exhibit 99.1 to Form 8-K filed
August 11, 2008 (Commission file No. 000-22182)
|
3.1
|
Original
Articles of incorporation of the Company’s predecessor, Patriot
Financial Corporation, incorporated by reference to Exhibit 3.1 to
registration statement on Form S-18, (Commission file No.
33-23143-FW)
|
3.2
|
Articles of
Amendment of Patriot Financial Corporation, as filed with the Colorado
Secretary of State on July 21, 1988, incorporated by reference to
Exhibit 3.2 to registration statement on Form S-18, (Commission file
No. 33-23143-FW)
|
3.3
|
Certificate
of Incorporation of the Company, as filed with the Delaware Secretary of
State on March 24, 1992, incorporated by reference to
Exhibit 3.3 to Form 8-K dated May 12, 1992 (Commission file No.
33-23143-FW)
|
3.3.1
|
Certificate
of Amendment to the Certificate of Incorporation of the Company, as filed
with the Delaware Secretary of State on April 18, 1995, incorporated
by reference to Exhibit 3.3.1 to Form 10-KSB for the fiscal year
ended May 31, 1995 (Commission file No. 000-22182)
|
3.3.2
|
Certificate
of Amendment to the Certificate of Incorporation of the Company, as filed
with the Delaware Secretary of State on June 24, 1997, incorporated
by reference to Exhibit 3.3.2 to Form 10-KSB for the fiscal year
ended May 31, 1997, filed July 18, 1997 (Commission file No.
000-22182)
|
3.3.3
|
Certificate
of Amendment to the Certificate of Incorporation of the Company,
as filed with the Delaware Secretary of State on April 28, 2000,
incorporated by reference to Exhibit 3.3.3 to Registration Statement
on Form S-3 filed May 5, 2000 (Commission file No.
333-36418)
|
3.3.4*
|
Certificate
of Amendment to the Certificate of Incorporation of the Company, as filed
with the Delaware Secretary of State on May 6, 2002
|
3.3.5
|
Certificate
of Amendment to the Certificate of Incorporation of the Company, as filed
with the Delaware Secretary of State on October 16, 2003,
incorporated by reference to Exhibit 3.3.5 to Registration Statement
on Form SB-2 filed May 21, 2004 (Commission file No.
333-115752)
|
3.3.6*
|
Certificate
of Amendment to the Certificate of Incorporation of the Company, as filed
with the Delaware Secretary of State on April 29, 2005
|
3.3.7*
|
Certificate
of Amendment to the Certificate of Incorporation of the Company, as filed
with the Delaware Secretary of State on November 14,
2005
|
3.4
|
Articles and
Certificate of Merger of Patriot Financial Corporation into the Company
dated May 1, 1992, with Agreement and Plan of Merger attached thereto
as Exhibit A, incorporated by reference to Exhibit 3.4 to Form
8-K dated May 12, 1992 (Commission file No. 33-23143-FW)
|
3.5
|
Certificate
of Merger issued by the Delaware Secretary of State on May 8, 1992,
incorporated by reference to Exhibit 3.5 to Form 8-K dated
May 12, 1992 (Commission file No. 33-23143-FW)
|
3.6
|
Certificate
of Merger issued by the Colorado Secretary of State on May 12, 1992,
incorporated by reference to Exhibit 3.6 to Form 8-K dated
May 12, 1992 (Commission file No. 33-23143-FW)
|
3.7
|
Bylaws
of the Company, incorporated by reference to Exhibit 3.7 to Form 8-K
dated May 12, 1992 (Commission file No. 33-23143-FW)
|
4.1
|
Specimen
common stock certificate, incorporated by reference to Exhibit 4.1
Form 8-K dated May 12, 1992 (Commission file No.
33-23143-FW)
|
4.2
|
1996
Stock Option Plan of the Company dated March 25, 1996 and approved by
the Shareholders on May 17, 1996, incorporated by reference to
Exhibit 10.13 to Pre-Effective Amendment No. 2 to Registration
Statement on Form SB-2 filed May 23, 1996 (Commission file No.
333-01765)
|
4.3
|
2001
Stock Option Plan of the Company dated February 21, 2001 incorporated
by reference to Exhibit 4.19 to Registration Statement on Form S-8
filed March 26, 2001 (Commission file No. 333-57602)
|
4.4
|
2003
Stock Option Plan of the Company dated July 2, 2003 incorporated by
reference to Exhibit 4.27 to Registration Statement on Form S-8 filed
September 4, 2003 (Commission file No. 333-108489)
|
4.5
|
2006
Stock Option Plan of the Company dated March 31, 2006 incorporated by
reference to Exhibit 4.19 to Registration Statement on Form S-8 filed
June 20, 2006 (Commission file No. 333-135156)
|
10.1
|
Employment
Agreement dated September 17, 2007 by and between the Company and Clifford
L. Flowers, incorporated by reference to Exhibit 10.1 to Form 8-K filed
September 19, 2007 (Commission file No. 000-22182)
|
10.2
|
Employment
Agreement dated February 29, 2008 by and between the Company and Frederick
C. Goerner, incorporated by reference to Exhibit 99.1 to Form 8-K filed
May 20, 2008 (Commission file No. 000-22182)
|
23.1*
|
Consent
of Independent Valuation Firm
|
31.1*
|
Certification
of Frederick C. Goerner, CEO, pursuant to Rule
13a-14(a)/15d-14(a)
|
31.2*
|
Certification
of Clifford L. Flowers, CFO, pursuant Rule
13a-14(a)/15d-14(a)
|
32.1*
|
Certification
of Frederick C. Goerner, CEO, pursuant to Section 1350 of Chapter 63 Title
18 of the United States Code
|
32.2*
|
Certification
of Clifford L. Flowers, CFO, pursuant to Section 1350 of Chapter 63 Title
18 of the United States Code
|
DATED: April 9,
2009
|
PATRIOT
SCIENTIFIC CORPORATION
/S/
FREDERICK C. GOERNER
Frederick
C. Goerner
Chief
Executive Officer
|
Signature
|
Title
|
Date
|
|
/S/
FREDERICK C. GOERNER
Frederick
C. Goerner
|
President
and Chief Executive Officer
|
April
9, 2009
|
|
/S/
CLIFFORD L. FLOWERS
Clifford
L. Flowers
|
Chief
Financial Officer and
Principal Accounting Officer |
April
9, 2009
|
|
/S/
CARLTON M. JOHNSON
Carlton
M. Johnson
|
Director
|
April
9, 2009
|
|
/S/
GLORIA H. FELCYN
Gloria
H. Felcyn
|
Director
|
April
9, 2009
|
|
/S/
HELMUT FALK, JR.
Helmut
Falk, Jr.
|
Director
|
April
9, 2009
|
|
/S/
HARRY L. TREDENNICK
Harry
L. Tredennick
|
Director
|
April
9, 2009
|
|
/S/
DONALD E. SCHROCK
Donald
E. Schrock
|
Director
|
April
9, 2009
|
/s/
David H. Pohl
|
|
David
H. Pohl, President and
|
|
Chief
Executive Officer
|
/s/
Frederick C. Goerner
Frederick C. Goerner
Chief Executive
Officer
|
/s/
Clifford L. Flowers
Clifford L. Flowers
Chief Financial
Officer
|
/s/
Frederick C. Goerner
Frederick C. Goerner
Chief Executive
Officer
|
/s/
Clifford L. Flowers
Clifford L. Flowers
Chief
Financial Officer
|