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Legal Proceedings
6 Months Ended
Jun. 30, 2012
Legal Proceedings [Abstract]  
Legal Proceedings
Legal Proceedings:

On February 24, 2012, a medical/surgical dealer, which accounted for $1,900,000 and $2,148,000 of the Company's sales during the six months ended June 30, 2012 and 2011, respectively, filed a voluntary petition for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Central District of California in Santa Ana, California. According to its bankruptcy petition, the dealer filed its petition as the most effective means of stabilizing its finances as it seeks to resolve a reimbursement guidelines dispute with Medicare. The dealer believes that Medicare is improperly withholding payments. While the reimbursement dispute does not involve products supplied by the Company, it has negatively affected the Company's sales to this dealer. The petition states that this dealer relies on Medicare payments for more than 90% of its revenue. On March 9, 2012, the Bankruptcy Court approved a "standstill" agreement between the dealer and Medicare, which agreement provides that Medicare would pay the dealer for certain claims it was withholding and that it would process and pay certain additional claims while the parties attempted to resolve the issues underlying the dispute. In a press release issued by the dealer, the dealer indicated that this agreement would provide it with the cash it requires to continue operations in the ordinary course of business and service its customers without interruption. As of the date of the bankruptcy filing, the Company had approximately $436,000 in accounts receivable that was owed by this dealer, and it has continued to fill this dealer's post-petition purchase orders.

On May 29, 2012, the Bankruptcy Court entered an order approving a Stipulated Motion of the dealer which directed the dealer to pay the Company for products that were shipped during the twenty day period immediately preceding the petition date. The accounts receivable owed by this dealer related to these shipments was approximately $195,000. The order directed the dealer to repay the Company in six equal installments of approximately $32,500, commencing on July 1, 2012. The first of these payments was received by the Company as ordered by the bankruptcy court.

The accounts receivable balance as of July 27, 2012 was approximately $690,000. While the Company believes that the amounts due from this dealer will be collected in full, it intends to monitor these proceedings as they progress in order to appropriately assess and enforce its rights in this matter.

The Company is from time to time engaged in routine litigation.  The Company regularly reviews all pending litigation matters in which it is involved and establishes reserves deemed appropriate by management for these litigation matters.