I'm pretty sure you're interpretation is incorrect. PDS paid PTSC for the loan, so, TPL owes PDS the money. That is now an accounting issue between TPL & PDS solely.

The "company" referred to in the 8-K is the company issuing the 8-K, ie PTSC, not PDS. PDS is referred to as "PDS" specifically.

The $1.1M is definitely money that PTSC felt it was shorted by TPL through the past licensing process (ie short MMP allocation for Apple license or other ones) or through other advances that PTSC made to fund TPL's operations that may have been off sheet transactions, or otherwise not accounted for as loans. Or it could have been for other items PTSC felt TPL overcharged PDS (and consequently PTSC by half) for, etc.

I'm pretty certain it does NOT have anything to do with the money TPL owes PDS. In fact, that should have already been paid back through any subsequent license distributions to TPL (ie PDS should have shorted TPL the balance owed).