released after market close.
Misonix, Inc. Announces Reserve On Accounts Receivable
Business Wire - October 22, 1998 17:35
FARMINGDALE, N.Y.--(BUSINESS WIRE)--Oct. 22, 1998--Misonix, Inc. ("Misonix") (Nasdaq: MSON) today announced that it will be taking a reserve for possible bad debts of approximately $1,700,000 against accounts receivable due and owing by Medical Device Alliance, Inc. and its wholly-owned subsidiary, LySonix Incorporated, as licensees of the Misonix ultrasonic soft tissue aspirator presently being marketed by these parties as the LySonix 2000. Misonix has just transmitted a notice of default to these licensees due to late payments and other business developments involving the licensees.
Dr. Joseph Librizzi, President of Misonix, reported that the Company could not tolerate the delays in securing substantial payments on this account and is taking this action to enforce the Company's rights. In this connection, he noted that Misonix was exploring one or more avenues leading to the collection of the amounts due and termination of the exclusive license agreement which could lead to direct sale and exploitation of the Misonix device. He said: we do not view this action as adversely affecting our joint role with the licensees in aggressively defending the suit brought by Mentor Corp. for alleged patent infringement.
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