IMO, the view that TPL is near bankruptcy and almost on their knees due to few licensees recently is flawed. Additionally, the view PTSC has little funds available is equally suspect as well, IMO.
For PTSC: Yes, the ARS credit line is sparse and the monthly BOD salaries are exhorbitant. (IMO, the BOD may defer salaries, if necessary, to fund their legal war chest). PTSC does have several millions available (in Bank), at a minimum to fund the "Legal right-to-work Act". Potential revenue from PDSG is minimum, even if they acquire a large contract tomorrow. The best we could hope for with PDSG is for PDSG to obtain a contract, any contract, and leverage the sale with some sort of short term accounts receivable loan. Regardless, PDSG is a cash drain. Holocom contribution is minimal, too. As I alluded earlier in a prior post, Swartz may act as Mr. Moneybags again, in a pinch.
On the TPL ledger, no one knows TPL's financial inner workings. If the intent of Lecky was to siphon off $2M of PTSC funds to turnaround and use these funds to cover new working capital and legal costs against PTSC with the assumption all along by Lecky to bleed PTSC, he has succeeded.
Lecky is no fool and has "gamed" many legal scenarios involving the MMP & PTSC. Am confident he has a sufficient legal war chest to fund these efforts. I suspect TPL has larger labor costs currently than PTSC, given that he has a certain amount of fixed costs to keep Alliancense funded adequately, and TPL in general.
Additionally, Lecky has his paymasters. No one knows the pressure, if any, on Lecky by the group that provided TPL with their original start-up capital. A figure of $30M was once bandied about I think several years ago. The Great Unknown, is whether Lecky is going Rogue, or is supported by the Private Funding Group to wrest control of the MMP from PTSC legally.
In my view, both sides have Big $$ behind them, if need be. Other vultures may see this as an opportunity as well. Moore may have a role ultimately, too.
Those that advocate tearing up the MA, be careful what you wish for. Think strategically..
What is Plan B??..Inquiring minds want to know..
Virt
