Replies to post #22 on Scanner Tech Corp. (fka SCNI)

[startingboy]

looks like it

Despite these efforts to reduce costs, we expect to continue to incur litigation expenses, perhaps at a higher rate than in the third quarter of 2008, due in part to additional proceedings filed against us in response to the June 19, 2008 opinion and the September 19, 2008 mandate of the United States Court of Appeals in the ICOS litigation (See Part II, Item 1 Legal Proceedings). We currently have insufficient working capital and are pursuing several alternatives to obtain additional working capital including seeking additional debt or equity financing and licensing or sale of our intellectual property to licensors or buyers that may include parties interested in continuing to enforce our intellectual property through litigation and negotiation with the other parties in our existing litigation to reach a satisfactory resolution of such litigation. There is no assurance that we will be able to secure the additional cash or working capital that we require to continue operations. If we are unable to secure the necessary cash or working capital, we may be required to seek protection from creditors under the bankruptcy laws or to curtail, and possibly cease, our operations.

The Company intends to vigorously defend itself and its intellectual property rights and expects to incur significant additional expenses to pursue its claims


We recognized a judgment of $3,355,033 for attorney’s fees, costs and expert fees in the fourth quarter of 2007 in connection with the supplemental judgment that was issued against us in November 2007 related to an unfavorable ruling in the ICOS patent infringement lawsuit. We appealed the judgment in 2007 and in September 2008, the Court of Appeals vacated the award of attorney’s fees and costs. The accrual for the judgment was removed from the condensed consolidated balance sheet and included in the condensed consolidated statement of operations in the quarter ended September 30, 2008.