NL was brought in to turn the company around, and that's what she's going to try to do. She may fail, in which case the cash will evaporate, and there won't be anything left. She may succeed. Other CSO's are profitable. Presumably, PDII could be also.

Sale or liquidation of the company is a BOD decision. If there is no hope of profitability before, say, Q1 or Q2 2010, PDII should be liquidated or sold RIGHT NOW. Now, if NL believed that to be the case, she should recommend it to the BOD. It won't serve her reputation to pilot this ship to the bottom of the sea.

One other point: does Smith work of NL or is he the old goat's spycam?