the various players are, it really leads to more questions then it answers. I'm sitting here trying to figure out how BOD advises us that we will continue pursuing PDSG opportunities yet Goerner won't be here to participate. The PR and subsequent Q certainly leads us to believe some kind of nefarious activity ocurred that was revealed through audits or lack of contract developments. If the burn rate and lack of revenue development was really the problem, exactly why do we need Baroni? If the BOD is pleased with Goerner's direction, why couldn't he stick around to here the consultants recommendations and then impliment them? If we are to believe the Alliacense propaganda machine, licensing activity is exploding as we speak. Capital should not be an issue so the burn rate on PDSG shouldn't really matter. Goerner cut director and officer pay, held divideds at bay, took a loan against our ARS collateral, and purchased/invested in several small companies without significant cash burn.
They called Allen Mulally a genius when Ford took out billions in loans before the cash crunch. Goerner did the same thing anticipating that the opportunity may not exist if things got worse. Now the board didn't have a problem with the majority of our cash being invested in one ARS vehicle, yet all of the sudden Goerner's vision doesn't work the burn rate is a concern and on on on. I don't know what's going on behind the scene's but this doesn't add up. Our cash position actually increased this quarter, not to mention the redemption on part of the ARS. Goerner did such a terrible job that the Board made the following statements:
"The changes being made are intended to accelerate the transformation of the PDSG acquisition and enable a faster implementation of its strategic direction."
"Additionally, the Board expects to receive a favorable independent technical assessment of PDSG's flagship Crossflo DataExchange® product (CDX) within the next two weeks."
Mr. Goerner did such a terrible job that he left them with this wonderful opportunity, that apparently they plan to continue funding. We even decided to spend money on a well known consultant to help lead the way. It wouldn't bother me so much if it weren't for the manner in which Goerner, Senn and Bibeau left. The guys started building an operating base while actually doing a very good job of protecting our cash. You've got to pay to play and they certainly didn't mishandle the cash even remotely close to what the BOD did several years ago. The explanation in the PR was weak. I mean really, how creative do you have to be to come up with this line?
"The Board of Directors has endorsed this reorganization of the Company with the intent of providing a new generation of leadership that will transform Patriot and its wholly owned subsidiary, PDSG, into a more innovative, integrated and global company."
I thought that's what we've been doing the last 3 years? The reality is most of us can't do a damn thing about it, so once again I'll have to sit back and hope/wish/whine/pray that the BOD will finally get it right. This time it really feels like we haven't heard the whole story.
