If by tax-free you mean we have a boatload of tax loss carryforward to offset things for awhile, yes. Even with the loss carryforward we will end up paying some alternative minimum tax in both California and on the Federal level. That would be at no where near what regular tax rates are however.

I know someone posted a link previously about some royalties being no-taxable. The link didn`t give enough specific info to determine whether PTSC falls into that category. I highly doubt that it would. In fact I would think that that might have been footnoted in the financial statements if it were the case.

Moxa, you say the uncertainty regarding when we will sign a new licensee is something you don`t like about a business model focusing on license revenue. How is that any different from a business model that sells a product to bring in revenues. There`s still uncertainty in any case. In fact if recent history is any gauge I would say the licensing model might have less uncertainty than the product selling one. That argument could certainly be made, anyway.

BTW, please do not misunderstand my previous post. I pointed out those things as ``Uncertainty`` for most new investors. Being here as long as I have been, none of those things bring uncertainty to my mind for the long run.