SurgiLight, Inc. ("the Company" or "SurgiLight") sells ophthalmic lasers
and related products and services based on its own and licensed
intellectual property, primarily for use in refractive and presbyopia
Paul Miano - Advanced Medical Laser Services, Inc. ("AMLSI") and Paul
Miano ("Miano") filed a lawsuit against us on September 26, 2001, in
Broward County, later moved to Orange County, alleging breach of contract
for our alleged failure to finance up to $1,000,000 of working capital.
During August 2005, the Company and Miano agreed to settle the matter by
Miano paying the Company approximately $212,500 over the next two years.
The Company has recorded revenue of $100,000 in the quarterly financial
statements ending September 30, 2005 from the receipt of Miano's first of
three annual settlement payments. During February 2006, Miano exercised
his option to pay the remaining balance of $125,000 at a discounted
amount of $112,500, which the Company has recorded as other income at
that date. As part of the settlement, the Company purchased back from
Miano 190,150 of its common shares, which have been recorded as treasury
stock at December 31, 2005.