During the period June 1, 2007 through August 9, 2007, Phoenix Digital entered into license agreements with third parties, pursuant to which it received aggregate proceeds totaling $500,000.

During the period June 1, 2007 through August 1, 2007, we purchased 4,961,640 shares of our common stock at an aggregate cost of $2,725,793 pursuant to our stock buyback program.

On June 5, 2007, our outgoing chief executive officer retired. As a result, we recorded a severance charge of $100,000 based on terms of his employment agreement which provided for salary continuation.