Forget about revenue from the lawsuit. From the latest 10K:
12. LEGAL CONTINGENCIES
In the normal course of business, the Company is involved in lawsuits and claims. While the amounts claimed could be material, the ultimate liability cannot now be determined because of the considerable uncertainties that exist. Therefore, it is possible that the results of operations or liquidity in a particular period could be affected by certain contingencies. However, based on facts currently available, including the insurance coverage that the Company has in place, management believes that the outcome of these lawsuits and claims will not have a material adverse effect on the Company’s financial position.
13. INCOME
The Company has recorded income in the year ended June 30, 2011 from Mass Mutual Insurance in the amount of 260,000 and from Access Health in the amount of approximately 80,00. Both companies have refused to pay citing unenforceable contracts. iMedicor has instituted legal proceedings against both companies and is confident that we will collect all amounts due plus legal fees associated with the lawsuits. The company has taken an allowance for bad debt relating to these two receivables of 20% on the gross amount in the year ended June 30, 2011, however the attornies representing the company have indicated that the entire amount should be collectable.
If you checked their revenue statement you would see that they reported revenue of $438K up from $295K last year. However, $340K of that was not collected, pathetic! So if you only count the revenue they actually received, their revenue was less than $100k or about equal to Zolla's salary! On the positive side they did reduce their salaries (Zolla and Stout) and their general administrative costs came down by ~$3MM, I would bet by reducing staff. Such a reduction in staff does not bode well for the future of this company. Lastly, these idiots protect their and their private placement investors stake in the company with non dilution clauses that only serve to dilute the common shareholders even more.
All their forward looking statements are pure BS. They have been saying the company was going to turn a profit by the EOY for over five years and still their debt and share count continues to increase. As of June 30, 2011 the O/S was over 332MM and it is now most likely over 400MM. When I first bought into this POS their were less that 50MM shares in the O/S. You can try to put whatever positive spin you want for this company but it will still come out looking and smelling like a turd, IMO!
