Variable Interest Entity Disclosures
On January 9, 2012, PDS’ cash and cash equivalents balance was $314,388. Management has concluded that our equity investment at risk in PDS is insufficient to finance its activities as the volume of license revenue has not supported litigation costs independent of additional working capital funding.
We have not provided financial support to PDS other than required capital contributions and the $200,000 contribution we agreed to make in December 2011 as described above, and we are not contractually obligated to provide financial support to PDS other than to fund the working capital account at the discretion of PDS’ management committee. In the event we, and not TPL, provide working capital funding to PDS we would consolidate PDS’ financial statements with our own as our ownership in PDS would be greater than 50%.
