Extrapolations are always wrong, but some are useful.

To begin with I had to to base my extrapolations on estimates and WAGs (Wild A.. Guesses). Need I say there's been very little in the way of details from PTSC re license sales over the years. So you might guess that this reduces the accuracy of my results. For that reason I'll stick to using trend arrows, without timelines or any quantified measure.

Trend over a 5 year period:

1) Rate of licensing. ^ (averages up for 2-3 years)

2) Average cost of licensing. v (down for 2-3 years)

3) Average gross $ per license; expect we'll work on the big ones first. v > (down or flat)

4) Net income per share. ^ (up for 2-3 years)

5) P/E ratio as we approach patent life. (worhtless metric in 1-5 years)

6) Stock price as we approach patent experation. ? (SP based on time to expiration?)

Consider that business plans are typically 3 year plans. A big investor doing DD would look at the potential over the next 3 years, along with actuals from past years. An intelligent investor will also understand that a big black hole exists approximatly 2 years beyond the business plan horizon, as we approach patent experations.

Conclusion: The longer it takes to get rolling, the bigger the Stock Price expiration anchor will become. My calculations say that if net income were $1 billion over the next five years, and all of it went to dividends, stockholders would get about $2.44/share in dividends - total over 5 years.

If we really start doing well with licenses, it seems likely that SP over the years will begin to track the time to expiration, considering the peak income will likely be years before experation. Without dividens, I'm not sure what the SP will track. I doubt it will be traditional P/E ratios. And I have little hope for an M&A to build to significant income numbers.