Stan Caplan spoke with me today about the annual meeting. Stan has always been very vocal at the annual meetings and is not afraid to ask the tough questions that are most important to shareholders. I would like to thank Stan for allowing me to share my notes from my conversation with him today. Please forgive any inaccuracies on my part, and as always corrections are welcome.
Highlights from the Annual Shareholder Meeting Jan 2012
These are notes hand written by me from a telephone conversation with Stan Caplan who attended.
Stan addressed several questions to Gloria for her Yes or No answer
1.Does she agree to no more virtual meetings – No does not agree to no more virtual meetings
2.Does she agree to no more business investments in other companies- Yes she agrees no more investments
3.Does she agree to return profit to shareholders in the form of dividends- Yes she agrees to dividends if the money is coming in
4.Does the BoD agree to take a 10% immediate reduction in BoD compensation – No they do not agree
Does the BoD agree to take reductions in compensation if the company is not profitable over the next couple of quarters- No they do not agree to cut in pay
5.Does the BoD agree to take no option grants until PTSC is profitable for two consecutive quarters- Yes they agree to no more option grants until profitable
6.Does the BoD agree to buy 100K shares- No they do not agree
Stan brought up the Apple license and even Cliff admitted there are some licenses signed and there could be some in the future that they will not announce.Stan said this was material information that shareholders should know and he asked where the SEC attorney was. Mark Ziebel was in the room and said he couldn’t disclose the advice he has given to a client. It appeared that agreement with TPL would never have been reached if they didn’t agree to non disclosure.
Stan told Dan Leckrone, I’m glad you are here so I can say this directly to you. There have been strong public allegations in the law suit that Patriot filed against you, claiming that you cheated PTSC and its shareholders..What assurances do we have from you that this won’t happen again?How can we monitor this?Dan said that he has always been fair with Patriot. He agreed that he would be more open to Patriot and agreed to have someone involved in the licensing process. Stan then addressed the BoD and said…"now that Dan Leckrone agrees to have someone involved in the licensing process, it would be in Patriot’s best interest to hire someone to do this. The BoD needs to watch each deal every step of the way.PTSC needs to have someone from the company involved in every step of the licensing process."
He asked Dan if PTSC knows his licensing schedule (i.e. tier licensing dollar amounts). Stan said PTSC should know if TPL has raised the price for 2nd and 3rd tiers. Dan said he wasn’t sure if PTSC had this schedule but the BoD said they have it. This is important so that the BoD understands the value that should be placed on licenses.
Stan said there is a direct correlation between the J3 settlement and reversal of Patriot’s fortunes.Dan said now we are stronger because of the re-exams. He felt more vulnerable early on. Stan told Dan Leckrone “you folded” with the J3.Now that you say we are stronger because of all the re-exams you have to show them that you will stand up and go all the way.
Carl said they “felt” it went well at the Markman.There have been some good comments.However, until the judge rules….it’s anybody’s game.
Cliff expects some resolution with PDSG shortly.
Arbitration in March/April with Crossflo officers.
Dan said still are 450 infringers (infringer=companies with over 1billion in revenues) and currently in discussions with over 100 prospective licensees
Dan Leckrone still owns about 3 million shares
Eric Swartz was there- he still is a significant shareholder.
Stan asked Cliff, assume money is coming in, what plans do you have for letting the world know about PTSC?Cliff said he has a lot of experience with moving companies to more major exchanges and reverse mergers and experience in investor and public relations and is ready to take this on when money begins to come in to patriot.
