“In connection with our plans to expand our IP business beyond the Flash-R patent portfolio, we are collaborating with Dr. Pat Nunally on developing new technologies,” Falk added. “Also, we’ve received and responded to the first USPTO office action on our digital storage media encryption patent application.”

The above statement is from the 8/4/10 Q1-2011 press release.

From your post: via 9/29/10 press release

Our new IP developments beyond Flash-R and eVU are progressing rapidly,” added Falk. “We’re on schedule to file patents and announce these new technologies next quarter. Also, we’ve received and responded to the second USPTO office action on our active digital storage media encryption patent application.”

My conclusion, connecting the dots....it says when, not what, but who is behind it...Dr. Pat Nunally.

Sounds like an "element" to me.