Under liquidity page 52

While our current liquid cash resources as of February 28, 2010, are expected to provide the funds necessary to support our operations through at least the next twelve months, the cash flows from our interest in PDS represents our primary significant source of cash generation. In the event of a decrease or interruption in MMP Portfolio licensing we would incur a significant reduction to our cash position as the revenues from our PDSG subsidiary are insufficient to cover the costs of their operations and the costs of Patriot Scientific Corporation as a whole. Our most significant source of additional liquid cash would likely come from our ARS positions either as a result of redemption, successfully prevailing in our arbitration action against Deutsche Bank Securities, Inc. and affiliates, or the liquidation of some or all of the ARS instruments in negotiated transactions with third parties at a discount to their par value.

Under contractual obligations page 52

By the terms of his employment contract, our CFO, who also currently serves as our interim CEO, is eligible to earn an annual bonus equivalent to 50% of his base salary. In connection with management’s restructuring plan on October 5, 2009, our Compensation Committee determined that this bonus would be payable at the end of the interim period. The projected liability for such bonus is $145,875.

In connection with management’s restructuring plan, On October 7, 2009, we entered into a Separation Agreement with our former CEO which requires us to pay his base salary for the seven months following his departure (through May 2010) in exchange for a general release of claims against us. At February 28, 2010, the current balance of the liability is $58,471

So it would seem that Cliff was promised his bonus before the separation agreement with Goerner and it doesn’t appear to be based on any type of performance…hmmm.