Would someone with an understanding of Goodwill as it relates to accounting please explain what this means to PTSC.

From the 10Q filed April 2011 p.11

2. Goodwill and Other Intangible Assets

Goodwill originating from acquisitions is not amortized and is tested for impairment on an annual basis and between annual tests based on certain circumstances. As of November 30, 2010, all goodwill has been impaired.

Purchased intangible assets were being amortized over a period of 9 months to 10 years. After impairment, the technology of PDSG is currently being amortized over 81 months………

The inability of PDSG to meet its business plan and the general economic environment were indicators of potential impairment on our goodwill at May 31, 2010; accordingly, it was determined that goodwill was impaired by approximately $1,096,000. We recorded this as an impairment of goodwill on our consolidated statement of operations for the fiscal year ended May 31, 2010.

During the quarter ended November 30, 2010, we wrote off the remaining goodwill associated with our acquisition of Crossflo due to the inability of PDSG to meet its business plan. We recorded this as an impairment of goodwill on our consolidated statement of operations for the nine months ended February 28, 2011.