Carole, thanks for posting the link to the article. Novacom is financially strapped and is at IFLO's mercy.
The news release is taken almost word for word from Novacom's 10k. Have a look under "Management's Discussion":
freeedgar.com
<On February 14, 2000, Novacon was notified the U.S. District Court, Central
District of California, granted I-Flow Corporation, through a default judgment,
a permanent injunction restraining Novacon from importing, manufacturing, and
selling its Dib Drug Infusion Balloon in the United States. I-Flow Corporation
claimed the Dib infusion pump design violated its patents and was awarded
damages, legal fees and costs in amounts to be determined. Novacon denies the
Dib design infringes any I-Flow patents and believes the Dib patents protect
its design. However, Novacon is financially unable to respond to this lawsuit
and therefore I-Flow was able to obtain a default judgment. If the default
judgment is not successfully overturned, Novacon will be forced to immediately
cease its infusion pump business. This development will have a serious adverse
impact on Novacon and may cause the Company to go out of business.
The Company has an accumulated deficit of $8,866,092 as of May 31, 1999 and has
incurred annual operating losses for the past five years. If the Company does
not achieve an operating profit during 2000, it may be unable to continue in
business. > |
