The period is considered to have been “a transformative year” for the company.
Seeking Alpha and Menafn.com have both uploaded the Media Sciences International Inc. – 10-K – Management’s Discussion and Analysis of Financial Condition and Results of
Operations, a “discussion of our financial condition and results of operations” for fiscal year 2011.
The discussion denotes the legal impact following settling the litigation suit with Xerox in January 2011, which led to terminating its existing distribution agreement with Katun.
Subsequently Media Sciences sold its toner operations to Katun and “ceased manufacturing its inks for use in Xerox color printers and effectively exited the ink business”.
Overall business operations are positively commented on. Selling, general and administrative expense are listed as increasing by $1,297,000 (€941,151) – 57 percent – over the fiscal year in 2010, excluding depreciation and amortization: “Due to the discontinued operations, expenses related to discounted operations were reported in discounted
operations and not in selling, general and administrative expenses.”
Noting significant factors that may affect future liquidity, the discussion states a “lack of ongoing operations” as “[Media Science’s] liquidity could be significantly affected by future legal fees and other costs as the Company currently does not have any material ongoing operations” and “currently do not plan to invest in any material capital expenditures over the next twelve months”.
The discussion concludes the executive summary that “the Company is no longer actively engaged in any substantial operations and the Board of Directors is reviewing business options, including a proposal for a plan of liquidation”.