shares of PS Audio from Steve Jeffery and owned 100% of the corporation. Steve Jeffery went on to be appointed President of the Wadia Corporation, a competing high-end audio DAC manufacturer. Patton ran PS Audio and the Threshold Corporation until 1997 when the entity ceased operations and declared bankruptcy. Steve Jeffery, the primary creditor of the corporation, liquidated the remaining assets of the company and sold the name PS Audio back to McGowan, who restarted operations in 1998. Modern products 1997–2014 With the return of co-founder McGowan to PS Audio, the company returned to its roots of high-end audio by producing an entirely new category of product, the AC regenerator. McGowan reasoned that in order to return the company to viability in a very crowded and competitive market it was necessary to take a Blue Ocean Strategy and provide a product that solved a major problem in all high-end systems, the AC power feeding them. Realizing that the (then) infantile power conditioning category consisted only of filters that cleaned power line noise and did not address the larger issues of voltage regulation and sine wave purity, a new type of product called a regenerator was created. The first regenerator prototype was large stereo power amplifier fed by a low distortion Hewlett Packard sine wave oscillator. Each channel of the power amplifier produced 60 volts AC and when a load was placed across the two out of phase channels of the amplifier, the required 120 volts AC was achieved to power products. The research and prototype phase of the regenerator included various listening tests at different frequencies and 400 Hz was found to sound best (50 Hz and 60 Hz is standard) when equipment was powered by the amplifier. Further research negated the use of 400 Hz sine waves because many tube amplification systems were not filtered well enough at higher frequencies and the 400 Hz tone could be heard through the system. 60 Hz was the final design choice and the first product was launched. It was called a Power Plant and the model was the P300, producing up to 300 watts of regenerated, regulated AC power. The P300 was designed to produce up to 300 watts of clean power to connected audio equipment. The P-300 had a digital sine wave stored in memory, which it passed through a digital-to-analog converter and then amplified to 117V (adjustable) at a frequency