Ann: Market Update, page-18

Should I sell or should I hold? As a family, we hold some 200,000 shares acquired at an average 30cents. It pains me to say the loss is 90%. At this point we have decided not to sell and take 10 cents in the dollar invested and see if Ted can breathe any life into the company.

The technology looks solid as it keeps winning awards, but there are so many competitors in the encryption space and they have failed to differentiate themselves. Their partners have all failed, including Macquarie Telecom, Cisco, T-Systems, Colt, Sumantics, and NSC. Not one success even though they were all brought on to great fanfare.

Many thought the Sumantics deal gave away too much of the company with them getting an entitlement to 10% of the company if the deal with Cisco was successful. I'd give them 25% if they could pull it off from here.

So why continue to hold? Yes, there is an element of chasing my losses and not being able to look at this objectively. I said on December that I thought the company won't survive if they don't win the POC. Now I'm hoping that Ted and the new board can pull off a miracle and get one of these partnerships delivering some sort of revenue.