Last Friday, Patriot Scientific Corporation (OTC:PTSC) and the TPL Group finally disclosed that they had brought their long-running litigation to a successful end. Considering what happened subsequently on the stock market, this agreement was the best both parties could have come up with.
What PTSC stock did on Oct. 7 was nothing short of spectacular. Going up by a staggering 82%, PTSC shares almost doubled their value, closing the session at a three-month high of $0.082 per share. The huge volume spike, on the other hand, scored an even bigger record as more than 3.1 million shares changed hands, i.e the highest turnover of PTSC stock generated for the last six months or so.
Now that the aforementioned dispute is no longer an issue, PTSC and the TPL group are ready for further collaboration. As it turned out, the settlement they reached had a bombastic impact on the stock market, which suggests that such disputes could only prove negative to all the parties involved.
Patriot Scientific describes itself as an intellectual-property licensing company which has a couple of patents regarding the design of microprocessor chips used in a wide variety of electronic products all over the world. The company concluded the fiscal year ended May 31, 2011 with:
- cash reserves in excess of $8.4 million
- $12.1 million in current assets vs. $0.57 million in current liabilities;
- net loss of $11.5 million as compared to $6.8 million accrued for the previous fiscal year.
Although PTSC seems to have sufficient capital reserves at the moment, its net losses are becoming bigger and bigger. If the negative trend continues well into the future, the company will soon go in the red.
