Replies to post #9887 on Imaging Diagnostic Systems (fka IMDS)

[Arnold25764]

Well they must have put future value on IMDS ya think?

[Cool_Trades]

$IMDS PLEASE ANSWER THIS QUESTION:

I have asked that question several times myself and I will ask it again.

WHY WOULD SHIMADZU (and MAREEN GROUP) SIGN A DISTRIBUTION AGREEMENT JUST LAST MONTH IF THE COMPANY WAS DEAD IN THE WATER LIKE SO MANY ARE PEGGING IT TO BE???

THIS ANSWER IS THEY WOULDN'T! Shimadzu as of last March had $375 million in cash and last year grossed $1.2 billion dollars alone. (I converted the yen to dollars based on their annual filings)

The implications are OBVIOUS...IMDS IS NOT A FAILING COMPANY! And the ONLY way for IMDS to continue and provide support to Shimadzu in particular is through NON-TOXIC FUNDING. We know a chunk of debt is due on 6/30 at the amount of $756,000. Count on their being funding prior to that date.

[stockmasterflash]

They've not committed to anything

They've not yet even take delivery of a machine.

Often struggling companies pay large incentives

There likely too is some relationship between the Australian approval process and having a customer lined up and/or a machine already in the country.

It seems quite odd that delivery of the machine was delayed 6 months even though the machine was shipped. Coincides nicely with IMDS's revenue recognition policy requiring shipment and delivery into the country and not necessarily installation.

There is no risk. As with the 20 or so other distributors before them that came and went, it's not that big of a deal to them. They are in the business of giving their customers choices. If the customers never purchase as happens with most of IMDS' distributors, the machine will be returned.