SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED COMMISSION FILE NUMBER
June 30, 2008 0-10581
--------------- -------
TRIMEDYNE, INC.
------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Nevada 36-3094439
(State or other jurisdiction (IRS Employer Identification Number)
of incorporation or organization)
25901 Commercentre Dr., Lake Forest, CA 92630
(Address of principal executive offices) (Zip Code)
(949/951-3800)
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal
year, if changed since last report).
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the Registrant
was required to file such reports), (2) has been subject to such filing
requirements for the past 90 days.
YES [X] NO [ ]
(Issuers involved in bankruptcy proceedings during the past five years)
Not applicable
Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).
Yes [ ] No [X]
Indicate the number of shares outstanding of each of the issuer's class of
common stock, as of the last practicable date.
Class Outstanding at August 19, 2008
----------------------------- ------------------------------------
Common Stock, $0.01 par value 18,264,351 shares
TRIMEDYNE, INC.
Page Number
-----------
PART I. Financial Information 3
ITEM 1. Condensed Consolidated Financial Statements (Unaudited) 3
Condensed Consolidated Balance Sheet 3
Condensed Consolidated Statements of Operations 4
Condensed Consolidated Statements of Cash Flows 5
Notes to Condensed Consolidated Financial Statements 6
ITEM 2. Management's Discussion and Analysis or
Plan of Operation 12
ITEM 3. Controls and Procedures 16
PART II. Other Information 17
SIGNATURE PAGE 18
CERTIFICATIONS 19
2
TRIMEDYNE, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
ASSETS
June 30,
2008
-------------
Unaudited
Current assets:
Cash and cash equivalents $ 2,297,000
Trade accounts receivable, net of allowance for doubtful
accounts of $12,000 633,000
Inventories 2,878,000
Other current assets 236,000
------------
Total current assets 6,044,000
Property and equipment, net 1,392,000
Other 55,000
Goodwill 544,000
------------
$ 8,035,000
============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 286,000
Accrued expenses 359,000
Deferred revenue 74,000
Accrued warranty 29,000
Notes Payable 111,000
Current portion of long-term debt 162,000
------------
Total current liabilities 1,021,000
Deferred rent 78,000
Long-term debt, net of current portion 444,000
------------
Total liabilities 1,543,000
------------
Commitments and contingencies
Stockholders' equity:
Preferred stock - $0.01 par value, 1,000,000 shares
authorized, none issued and outstanding --
Common stock - $0.01 par value; 30,000,000 shares
authorized, 18,365,960 shares issued,
18,264,351 shares outstanding 184,000
Additional paid-in capital 51,422,000
Accumulated deficit (44,401,000)
------------
7,205,000
Treasury stock, at cost (101,609 shares) (713,000)
------------
Total stockholders' equity 6,492,000
------------
$ 8,035,000
============
See accompanying notes to condensed consolidated financial statements
3
TRIMEDYNE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
June 30, June 30,
2008 2007 2008 2007
------------ ------------ ------------ ------------
Net revenues $ 1,385,000 $ 1,197,000 $ 4,090,000 $ 4,090,000
Cost of revenues 1,017,000 685,000 2,897,000 2,324,000
------------ ------------ ------------ ------------
Gross profit 368,000 512,000 1,193,000 1,766,000
Operating expenses:
Selling, general and administrative 602,000 566,000 1,780,000 1,598,000
Research and development 419,000 391,000 994,000 804,000
------------ ------------ ------------ ------------
Total operating expenses 1,021,000 957,000 2,774,000 2,402,000
------------ ------------ ------------ ------------
Loss from operations (653,000) (445,000) (1,581,000) (636,000)
Other income, net 81,000 101,000 340,000 482,000
------------ ------------ ------------ ------------
Loss before provision for income taxes (572,000) (344,000) (1,241,000) (154,000)
Provision for income taxes 13,000 4,000 13,000 8,000
------------ ------------ ------------ ------------
Net loss $ (585,000) $ (348,000) $ (1,254,000) $ (162,000)
============ ============ ============ ============
Net loss:
Basic $ (0.03) $ (0.02) $ (0.07) $ (0.01)
============ ============ ============ ============
Diluted $ (0.03) $ (0.02) $ (0.07) $ (0.01)
============ ============ ============ ============
Weighted average number of shares outstanding:
Basic 18,365,960 17,963,623 18,365,960 17,334,137
============ ============ ============ ============
Diluted 18,365,960 17,963,623 18,365,960 17,334,137
============ ============ ============ ============
See accompanying notes to condensed consolidated financial statements
4
TRIMEDYNE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended
June 30,
2008 2007
----------- -----------
Cash flows from operating activities:
Net loss $ (1,254,000) $ (162,000)
Adjustment to reconcile net loss to net cash
provided by operating activities:
Stock-based compensation 47,000 48,000
Depreciation and amortization 226,000 170,000
Loss on disposal of property and equipment 17,000 --
Changes in operating assets and liabilities:
Trade accounts receivable (59,000) 203,000
Inventories 113,000 (473,000)
Other assets 130,000 (22,000)
Note due from related party 9,000 20,000
Accounts payable 74,000 6,000
Accrued expenses (68,000) (39,000)
Deferred revenue 29,000 (18,000)
Accrued warranty 2,000 (3,000)
Accrued interest due officer -- 11,000
Income taxes payable -- (4,000)
Deferred rent (13,000) (5,000)
----------- -----------
Net cash used in operating activities (747,000) (268,000)
----------- -----------
Cash flows from investing activities:
Purchase of property and equipment (64,000) (169,000)
----------- -----------
Net cash used in investing activities (64,000) (169,000)
----------- -----------
Cash flows from financing activities:
Proceeds from the sale of stock, net of issuance costs -- 3,034,000
Proceeds from the exercise of stock options -- 11,000
Payments on debt (71,000) (71,000)
----------- -----------
Net cash (used in) provided by financing activities (71,000) 2,974,000
----------- -----------
Net (decrease) increase in cash and cash equivalents (882,000) 2,537,000
Cash and cash equivalents at beginning of period 3,179,000 802,000
----------- -----------
Cash and cash equivalents at end of period $ 2,297,000 $3,339,000
=========== ===========
Supplemental disclosure of cash flow information:
Cash paid for income taxes during the nine months ended June 30, 2008 and 2007
was $13,000 and $6,000, respectively. Cash paid for interest during the nine
months ended June 30, 2008 and 2007 was approximately $21,000 and $2,000,
respectively.
Supplemental disclosure of non-cash investing activity:
During the nine months ended June 30, 2008, the Company financed the purchase of
equipment with $651,000 in lease agreements.
During the nine months ended June 30, 2008, the Company financed the purchase of
certain insurance policies with a $134,000 note.
During the nine month period ended June 30, 2007, the Company issued 763,958
shares of common stock to its Chief Executive Officer in connection with the
conversion of senior convertible notes of $200,000 and accrued interest of
$122,000 thereon owed to the officer.
See accompanying notes to condensed consolidated financial statements
5
TRIMEDYNE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2008 AND 2007
(UNAUDITED)
NOTE 1 - Summary of Significant Accounting Policies
Principles of Consolidation
The accompanying condensed consolidated financial statements include the
accounts of Trimedyne, Inc., its wholly owned subsidiary, Mobile Surgical
Technologies, Inc. ("MST"), and its 90% owned inactive subsidiary, Cardiodyne,
Inc. ("Cardiodyne") (collectively, the "Company"). All intercompany accounts and
transactions have been eliminated in consolidation.
Unaudited Interim Financial Information
The accompanying unaudited condensed consolidated financial statements have been
prepared by the Company in accordance with accounting principles generally
accepted in the United States of America for interim financial information, and
pursuant to the instructions to Form 10-QSB and Article 10 of Regulation S-X
promulgated by the Securities and Exchange Commission (SEC). Accordingly, they
do not include all information and disclosures required by generally accepted
accounting principles for complete financial statement presentation. In the
opinion of management, the accompanying condensed consolidated financial
statements contain all adjustments (consisting of only normal recurring
adjustments) necessary to present fairly the Company's consolidated financial
position as of June 30, 2008 and the results of its operations and its cash
flows for the nine months ended June 30, 2008 and 2007. Results for the nine
months ended June 30, 2008 are not necessarily indicative of the results to be
expected for the year ending September 30, 2008.
While management believes that the disclosures presented are adequate to make
the information not misleading, it is suggested that these condensed
consolidated financial statements be read in conjunction with the condensed
consolidated financial statements and the notes included in the Company's 2007
annual report on Form 10-KSB for the year ended September 30, 2007.
Stock-Based Compensation
Effective October 1, 2006, the Company adopted SFAS No. 123(R), "Share Based
Payment," which establishes standards for the accounting of all transactions in
which an entity exchanges its equity instruments for goods or services,
including transactions with non-employees and employees. SFAS No. 123(R)
requires a public entity to measure the cost of non-employee and employee
services received in exchange for an award of equity instruments, including
stock options, based on the grant date fair value of the award, and to recognize
it as compensation expense over the period service is provided in exchange for
the award, usually the vesting period. The value of the portion of the award
that is ultimately expected to vest is recognized as expense over the requisite
service periods in the Company's condensed consolidated statement of operations.
In March 2005, the SEC issued Staff Accounting Bulletin ("SAB") No. 107,
"Share-Based Payment", relating to SFAS No. 123(R). The Company has applied the
provisions of SAB No. 107 in its adoption of SFAS No. 123(R).
The fair value of stock-based awards is calculated using the Black-Scholes
option pricing model. The Black-Scholes model requires subjective assumptions
regarding future stock price volatility and expected time to exercise, which
greatly affect the calculated values. The expected term of options granted is
derived from historical data on employee exercises and post-vesting employment
termination behavior. The risk-free rate selected to value any particular grant
is based on the U.S. Treasury rate that corresponds to the pricing term of the
grant effective as of the date of the grant. The expected volatility is based on
the Company's historical volatilities of its common stock. These factors could
change in the future, affecting the determination of stock-based compensation
expense in future periods. During the nine months ended June 30, 2008, the
Company granted 35,000 stock options.
As of June 30, 2008, there was approximately $132,000 of total unrecognized
compensation cost, net of estimated expected forfeitures, related to employee
and director stock option compensation arrangements. This unrecognized cost is
expected to be recognized on a straight-line basis over the next five years.
The following table summarizes stock-based compensation expense related to
employee and director stock options under SFAS No. 123(R) for the three and nine
months ended June 30, 2008, which was allocated as follows:
Three Months Ended Nine Months Ended
June 30, 2008 June 30, 2008
------------------ ----------------
Stock-based compensation included in:
Cost of revenues $ 3,000 $ 9,000
Research and development expenses $ 1,000 $ 3,000
Selling, general, and administrative expenses $ 13,000 $ 35,000
6
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make certain
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
Significant estimates and assumptions include inventory valuation, allowances
for doubtful accounts and deferred income tax assets, recoverability of goodwill
and long-lived assets, losses for contingencies and certain accrued liabilities.
Fair Value of Financial Instruments
The Company's financial instruments consist primarily of cash and cash
equivalents, accounts receivable, note due from related party, accounts payable,
accrued expenses and long-term debt. The carrying amounts of the Company's
financial instruments generally approximate their fair values as of June 30,
2008 because of the short maturity of these instruments.
Per Share Information
Basic per share information is computed based upon the weighted average number
of common shares outstanding during the period. Diluted per share information
consists of the weighted average number of common shares outstanding, plus the
dilutive effects of options and warrants calculated using the treasury stock
method. In loss periods, dilutive common equivalent shares are excluded as the
effect would be anti-dilutive. During the nine months ended June 30, 2008 and
2007, outstanding options of 75,056 and 473,538, respectively, were excluded
from the diluted net loss per share as the effects would have been
anti-dilutive.
Recently Issued Accounting Pronouncements
In December 2007, the FASB issued SFAS No. 141 (revised 2007), "Business
Combinations." SFAS No. 141R established principles and requirements for how an
entity which obtains control of one or more businesses (1) recognizes and
measures the identifiable assets acquired, the liabilities assumed and any
noncontrolling interest in the acquiree, (2) recognizes and measures the
goodwill acquired in the business combination and (3) determines what
information to disclose regarding business combinations. SFAS No. 141R applies
prospectively to business combinations for which the acquisition date is on or
after the beginning of the first annual report period beginning on or after
December 15, 2008. The Company is currently assessing the potential impact of
SFAS No. 141R on its financial statements.
NOTE 2 - Composition of Certain Balance Sheet Captions
June 30,
2008
-----------
Inventories, net of reserves, consist of the following:
Raw materials $ 1,337,000
Work-in-process 744,000
Finished goods 797,000
-----------
$ 2,878,000
===========
For the nine months ended June 30, 2008, the aggregate net realizable value of
demonstration and evaluation lasers did not comprise a material amount in
inventories.
Other current assets consist of the following:
Royalty receivable $ 95,000
Prepaid insurance 123,000
Prepaid income tax 5,000
Other 13,000
-----------
Total other current assets $ 236,000
============
Property and equipment consist of the following:
Furniture and equipment $ 3,203,000
Leasehold improvements 619,000
Other 216,000
------------
4,038,000
Less accumulated depreciation and amortization (2,646,000)
------------
Total property and equipment $ 1,392,000
============
7
Accrued expenses consist of the following:
Accrued vacation $ 170,000
Accrued salaries and wages 60,000
Sales and use tax 66,000
Customer deposits 19,000
Accrued commissions 30,000
Accrued payroll taxes 4,000
Other 10,000
-----------
Total accrued expenses $ 359,000
===========
NOTE 3 - NOTES PAYABLE AND LONG-TERM DEBT
Notes payable and long-term debt consists of the following at June 30, 2008:
Loan payable to finance company bearing interest at 8.69% per annum principal
and interest due in equal installments of $3,147 through September 2012. The
loan is secured by the related equipment. $ 108,000
Loan payable to finance company bearing interest at 9.25% per annum principal
and interest due in equal installments of $4,979 through January 2013. The loan
is secured by the related equipment. 223,000
Loan payable to finance company bearing interest at 9.23% per annum principal
and interest due in equal installments of $526 through February 2013. The loan
is secured by the related equipment. 24,000
Capital lease agreement in connection with the purchasing of equipment bearing
an effective interest rate of 8.82% per annum. The lease requires monthly
payments of $2,403 through March 2012. 95,000
Capital lease agreement in connection with the purchasing of equipment bearing
an effective interest rate of 8.66% per annum. The lease requires monthly
payments of $2,386 through October 2010. 60,000
Capital lease agreement in connection with the purchasing of ERP software
bearing an effective interest rate of 8.51% per annum. The lease requires
monthly payments of $3,195 through April 2011. 96,000
Finance agreement issued in connection with the purchasing of certain insurance
policies. The note bears interest at 6.8% per annum and require monthly
principal and interest payments of $12,631 through March 2009. 111,000
-----------
717,000
Less: current portion (273,000)
-----------
$ 444,000
===========
NOTE 4 - Commitments and Contingencies
Litigation
In February 2008, the Company and other manufacturers of lasers were named as
defendants in a lawsuit in the State Court of Massachusetts by CardioFocus, Inc.
as allegedly infringing three of their now expired patents in 2002 -2006. The
Company and two of the other defendants submitted a petition to the U.S. Patent
and Trademark Office ("USPTO") to re-examine the patents to determine if they
are valid, as did several of the other defendants. The Company and the other
defendants petitioned the Court to stay the action, which is commonly done in
patent cases, to save the court time in conducting a case on patents which may
be later invalidated by the USPTO. The USPTO usually takes two to three years to
reach a decision on the validity of patents. If the USPTO should find any of the
patents to be valid, the Company has other defenses that we believe will enable
it to successfully defend against any claims by CardioFocus, Inc.
The Company is subject to various claims and actions which arise in the ordinary
course of business. The litigation process is inherently uncertain, and it is
possible that the resolution of any of the Company's existing and future
litigation may adversely affect the Company. Management is unaware of any
matters which are not reflected in the condensed consolidated statements of
operations that may have material impact on the Company's financial position,
results of operations or cash flows.
8
Guarantees and Indemnities
The Company has made certain indemnities and guarantees, under which it may be
required to make payments to a guaranteed or indemnified party. The Company
indemnifies its directors, officers, employees and agents to the maximum extent
permitted under the laws of the State of California. In connection with its
facility leases, the Company has indemnified its users of lasers for certain
claims arising from the use of the lasers. The duration of the guarantees and
indemnities varies, and in many cases is indefinite. These guarantees and
indemnities do not provide for any limitation of the maximum potential future
payments the Company could be obligated to make. Historically, the Company has
not been obligated to make any payments for these obligations and no liabilities
have been recorded for these indemnities and guarantees in the accompanying
condensed consolidated balance sheet.
Risks and Uncertainties
The Centers for Medicare and Medicaid Services (CMS), the agency of the U.S.
Government that administers the Medicare Program, recently announced a proposed
decision to deny reimbursement for thermal intradiscal procedures (TIPs).
Thermal procedures to treat spinal discs typically entail the use of
electrothermal (ET) or radiofrequency (RF) energy to heat or coagulate the
nucleus of the disc, a spongy, gelatinous material that absorbs shocks when
people run, jump or are injured, to prevent damage to the vertebra.
CMS, however, included the use of laser energy in its proposed denial of
reimbursement, as the early lasers used in spinal disc treatment, Nd:YAG and KTP
lasers, emit continuous wave (CW) energy at a constant level, which is thermal,
like ET or RF energy.
The Company's pulsed Holmium Lasers emit pulsed energy, which is highly absorbed
by water. Each pulse of Holmium laser energy is absorbed by the water in the
cells, which is rapidly turned to steam, vaporizing the tissue. The tissue cools
between the pulses, which last a few hundred microseconds (millionths of a
second), and only a small amount of heating or coagulation occurs. That is why
our Holmium lasers are commonly referred to as "cold" vaporizing lasers.
The Company filed an objection to CMS' lumping our pulsed Holmium Lasers with
ET, RF and older, thermal Nd:YAG and KTP lasers, few of which lasers are still
in use in the treatment of spinal discs. We explained the different mechanisms
of action, tissue effects and improved patient outcomes of pulsed Holmium laser
energy, compared to those of ET, RF, Nd:YAG and KTP laser energy, and we
attached ten (10) published papers on clinical studies of Holmium laser energy
that support our position.
The Company believes its objection makes a convincing argument to avoid
including our pulsed Holmium Lasers with other thermal devices in CMS' proposed
decision. The Company expects it will take until October or later before CMS
makes a final decision to either deny or approve reimbursement for TIPS or take
no action, leaving the decision on what to reimburse or not to its 30 or so
local reimbursement bodies. If CMS makes a final decision to deny reimbursement
for the use of our pulsed Holmium Lasers in TIPS, our spinal business would be
adversely affected.
NOTE 5 - Other Income
During the three month period ended June 30, 2008 and 2007, the Company recorded
$94,000 and $25,000, respectively, in royalties in connection with the terms of
a settlement agreement. During the nine month period ended June 30, 2008 and
2007, the Company recorded $314,000 and $354,000, respectively, in royalties in
connection with the terms of the same settlement agreement. These royalties are
included in other income in the accompanying condensed consolidated financial
statements.
Note 6 - Related Party Transactions
The Company had a promissory note receivable (the "Note") from Cardiomedics,
Inc. ("Cardiomedics"), a privately held corporation in which the Chairman/CEO of
Company holds a majority interest and is a member of the Board of Directors. The
COO/President of the Company is also a board member of Cardiomedics. The Note
matured on March 31, 2008, and was paid in full.
On April 7, 2006, the Company entered into an agreement to employ Cardiomedics
as a consultant to provide graphics arts services, since the Company did not
have any employees with experience in the design and production of brochures and
other marketing materials. Under this agreement, Cardiomedics will provide the
services of a graphics art specialist at a rate comparable to those presently
prevailing in the market in the design and production of marketing materials.
During the nine months ended June 30, 2008 and 2007, the Company incurred
$28,000 and $29,000, respectively, in expense for the services provided under
the agreement.
9
NOTE 7 - Segment Information
The Company's revenue base is derived from the sales of medical products and
services on a worldwide basis originating from the United States. Products
consist of lasers, and related products such as disposable systems and component
parts. Services consist of rentals, fees on a per-case basis, as well as service
and warranty repairs and maintenance. Although discrete components that earn
revenues and incur expenses exist, significant expenses such as research and
development and corporate administration are not incurred by nor allocated to
these operating units but rather are employed by the entire enterprise.
Additionally, the chief operating decision maker evaluates resource allocation
not on a product or geographic basis, but rather on an enterprise-wide basis.
Therefore, the Company has concluded that it contains only one reportable
segment, which is the medical systems business. However, data with respect to
these operating activities for the three and nine months ended June 30, 2008 and
2007 are as follows:
For the quarter ended June 30, 2008 For the quarter ended June 30, 2007
(Unaudited) (Unaudited)
Service and Service and
Products Rental Total Products Rental Total
--------------------------------------- ----------------------------------------
Net revenues $ 778,000 $ 607,000 $ 1,385,000 $ 844,000 $ 353,000 $ 1,197,000
Cost of revenues 606,000 411,000 1,017,000 456,000 229,000 685,000
--------------------------------------- ----------------------------------------
Gross profit 172,000 196,000 368,000 388,000 124,000 512,000
Operating expenses:
Selling, general and
administrative 486,000 116,000 602,000 470,000 96,000 566,000
Research and development 419,000 -- 419,000 391,000 -- 391,000
--------------------------------------- ----------------------------------------
Income (loss) from operations $ (733,000) $ 80,000 (653,000) $ (473,000) $ 28,000 (445,000)
========================= ==========================
Other:
Interest income 6,000 37,000
Interest expense (10,000) --
Loss on disposal of equipment (17,000) --
Royalty income 94,000 25,000
Settlements and recoveries 8,000 39,000
Income taxes (13,000) (4,000)
------------ ----------
Net loss $ (585,000) $ (348,000)
============ ==========
For the nine months ended June 30, 2008 For the nine months ended June 30, 2007
(Unaudited) (Unaudited)
Service and Service and
Products Rental Total Products Rental Total
--------------------------------------- ---------------------------------------
Net revenues $ 2,603,000 $ 1,487,000 $ 4,090,000 $ 2,851,000 $ 1,239,000 $ 4,090,000
Cost of revenues 1,768,000 1,129,000 2,897,000 1,498,000 826,000 2,324,000
--------------------------------------- ---------------------------------------
Gross profit 835,000 358,000 1,193,000 1,353,000 413,000 1,766,000
Expenses:
Selling, general and
administrative 1,435,000 345,000 1,780,000 1,339,000 259,000 1,598,000
Research and development 994,000 -- 994,000 804,000 -- 804,000
--------------------------------------- ---------------------------------------
Income (loss) from operations $(1,594,000) $ 13,000 (1,581,000) $ (790,000) $ 154,000 (636,000)
========================= =========================
Other:
Interest income 48,000 100,000
Interest expense (21,000) (11,000)
Loss on disposal of equipment (17,000) --
Royalty income 314,000 354,000
Settlements and recoveries 16,000 39,000
Income taxes (13,000) (8,000)
------------ ----------
Net loss $ (1,254,000) $ (162,000)
============ ==========
10
Sales and gross profit to customers by similar products and services for the
three and nine months ended June 30, 2008 and 2007 were as follows:
For the three months ended June 30, For the nine months ended June 30,
(Unaudited) (Unaudited)
2008 2007 2008 2007
----------- ----------- ----------- -----------
By similar products and services:
Revenues:
Products:
Laser equipment and accessories $ 182,000 $ 127,000 $ 613,000 $ 432,000
Delivery and disposable devices 596,000 717,000 1,990,000 2,419,000
Service and rental 607,000 353,000 1,487,000 1,239,000
----------- ----------- ------------ -----------
Total $ 1,385,000 $ 1,197,000 $ 4,090,000 $ 4,090,000
=========== =========== ============ ===========
Gross profit
Products:
Laser equipment and accessories $ 22,000 $ 31,000 $ 76,000 $ 104,000
Delivery and disposable devices 150,000 357,000 759,000 1,249,000
Service and rental 196,000 124,000 358,000 413,000
----------- ----------- ------------ -----------
Total $ 368,000 $ 512,000 $ 1,193,000 $ 1,766,000
=========== =========== ============ ===========
Sales in foreign countries for the quarters ended June 30, 2008 (unaudited) and
June 30, 2007 (unaudited) accounted for approximately 13% and 20% of the
Company's total sales, respectively. Sales in foreign countries for the nine
months ended June 30, 2008 (unaudited) and June 30, 2007 (unaudited) accounted
for approximately 21% and 22% of the Company's total sales, respectively. The
breakdown by geographic region is as follows:
Three months Three months Nine months Nine months
ended June ended June ended June ended June
30, 2008 30, 2007 30, 2008 30, 2007
------------ ------------ ------------ ------------
Asia $ 44,000 $ 84,000 $ 361,000 $ 385,000
Europe 38,000 32,000 176,000 184,000
Latin America 3,000 42,000 28,000 134,000
Middle East -- -- 80,000 --
Australia 96,000 2,000 109,000 6,000
Africa -- -- -- --
Other -- 81,000 99,000 198,000
------------ ------------ ------------- ------------
$ 181,000 $ 241,000 $ 853,000 $ 907,000
============ ============ ============= ============
All long-lived assets were located in the United States during the nine months
ended June 30, 2008 and 2007.
NOTE 8 - SUBSEQUENT EVENTS
On August 6, 2008, MST, Inc. entered into an agreement to purchase selected
assets from CPT Services, Inc., a company providing similar services, located in
Houston, Texas. The Company acquired the assets to expand the operations of MST,
Inc. In connection with the acquisition, the Company paid $94,000 and assumed a
capital lease. The Company is currently assessing the impact of the asset
purchase on its financial statements
On August 8, 2008, Trimedyne, Inc. entered into a letter of intent with
FemSuite, LLC, a privately-held San Francisco-based company which develops,
manufactures, and markets a variety of devices for use in the gynecology field.
Under the letter of intent, Trimedyne will license certain intellectual property
to FemSuite exclusively in the gynecology field, and exclusively for use in anal
(fecal) incontinence in the urology, general surgery, and gastrointestinal
fields. In return, FemSuite will organize a subsidiary to which the intellectual
property will be licensed, the subsidiary will test and market up to four
products based on the intellectual property, the subsidiary will purchase its
requirements for lasers and laser energy delivery devices from Trimedyne, and
the subsidiary will pay Trimedyne for the further development of the products,
including regulatory compliance costs and readying the products for manufacture.
Subject to certain milestones being achieved, FemSuite has offered to issue to
Trimedyne, without cost, twenty percent (20%) of the fully diluted shares of the
FemSuite subsidiary on the date such goals are met by at least two of the
products (10% if only one of the products meets the goals). The letter of intent
is not binding and is subject to the execution of a definitive exclusive license
and OEM supply agreement, which could differ substantially from the terms of the
letter of intent, and that is acceptable to the boards of directors of Trimedyne
and FemSuite, respectively.
11
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
CRITICAL ACCOUNTING POLICIES
Revenue Recognition
The Company's net revenues include revenues from the sale of delivery and
disposable devices, the sale and rental of laser equipment and accessories, and
service contracts for lasers manufactured by the Company.
In accordance with Staff Accounting Bulletin 104, "Revenue Recognition," the
Company recognizes revenue from products sold once all of the following criteria
for revenue recognition have been met: (i) persuasive evidence that an
arrangement exists, (ii) the products have been shipped, (iii) the prices are
fixed and determinable and not subject to refund or adjustment, and (iv)
collection of the amounts due is reasonably assured.
Revenues from the sale of delivery and disposable devices and lasers are
recognized upon shipment and passage of title of the products, provided that all
other revenue recognition criteria have been met. Generally, customers are
required to insure the goods from the Company's place of business. Accordingly,
the risk of loss transfers to the customer once the goods have been shipped from
the Company's warehouse. The Company sells its products primarily through
commission sales representatives in the United States and distributors in
foreign countries. In cases where the Company utilizes distributors, it
recognizes revenue upon shipment, provided that all other revenue recognition
criteria have been met, and ownership risk has transferred. In general, the
Company does not have any post shipment obligations such as installation or
acceptance provisions. All domestic laser systems are sold with a one year
warranty which includes parts and labor. All international lasers systems are
sold with a one year parts only warranty. As each laser sale is recognized, a
liability is accrued for estimated future warranty costs.
The Company utilizes distributors for international sales only. All laser system
sales are non-returnable. Our international distributors typically locate
customers for laser systems before ordering and in general do not maintain
inventories. The Company's return policy for laser accessories, delivery and
disposable devices sold to distributors is as follows: 1) The Company will
accept returns of any unopened, undamaged, standard catalogue items (except
laser systems) within sixty (60) days of invoice date. Acceptable returned
products will be subject to a 20% restocking fee. 2) A return authorization
number is required for all returns. The number can be obtained by contacting the
Customer Service Department. 3) Should a product be found defective at the time
of initial use, the Company will replace it free of charge.
The Company offers service contracts on its lasers. These service contracts are
offered at different pricing levels based on the level of coverage, which
include periodic maintenance and different levels of parts and labor to be
provided. Since the service contracts have a twelve month term, the revenue of
each service contract is deferred and recognized ratably over the term of each
service contract.
Trimedyne, Inc. rents its lasers for a flat monthly charge for a period of
years, on a month-to-month basis, or on a fee-per-case basis, sometimes with a
minimum monthly rental fee. During the nine months ended June 30, 2008 and 2007,
two lasers were being rented from Trimedyne, Inc., each on a month-to-month
basis, respectively. For these lasers, rental revenue is recorded ratably over
the rental period. MST generally enters into rental service contracts with
customers for a two year period, which unless cancelled, are renewed on an
annual basis after the initial period. During the rental service contract period
customers do not maintain possession of any rental equipment unless it is for
the Company's convenience. Customers are billed on a fee-per-case basis for
rentals, which includes the services of the laser operator and, in some cases,
the use of a reusable or disposable (single use) laser delivery device. Revenue
from these rental service contracts is recognized as the cases are performed.
Allowance for Doubtful Accounts
The Company maintains allowances for doubtful accounts for estimated losses
resulting from the inability of the Company's customers to make required
payments. The allowance for doubtful accounts is based on specific
identification of customer accounts and the Company's best estimate of the
likelihood of potential loss, taking into account such factors as the financial
condition and payment history of major customers. The Company evaluates the
collectibility of our receivables at least quarterly. If the financial condition
of the Company's customers were to deteriorate, resulting in an impairment of
their ability to make payments, additional allowances may be required. The
differences could be material and could significantly impact cash flows from
operating activities.
Inventories
Inventories consist of raw materials and component parts, work in process and
finished good lasers and dispensing systems. Inventories are recorded at the
lower of cost or market, cost being determined principally by use of the
average-cost method, which approximates the first-in, first-out method. Cost is
determined at the actual cost for raw materials, and at production cost
(materials, labor and indirect manufacturing overhead) for work-in-process and
finished goods.
12
Goodwill
Goodwill represents the excess of the cost over the acquired assets of MST. On
October 1, 2002, the Company adopted the provisions of Statement of Financial
Accounting Standards ("SFAS") No. 142, "Goodwill and Other Tangible Assets." As
a result of adoption SFAS No. 142, the Company's goodwill is no longer
amortized, but is subject to an annual impairment test, or whenever events or
changes in circumstances indicate that the carrying value may not be
recoverable.
Deferred Taxes
The Company records a valuation allowance to reduce the deferred tax assets to
the amount that is more likely than not to be realized. The Company has
considered estimated future taxable income and ongoing tax planning strategies
in assessing the amount needed for the valuation allowance. Based on these
estimates, all of the Company's deferred tax assets have been reserved. If
actual results differ favorably from those estimates used, the Company may be
able to realize all or part of the Company's net deferred tax assets. Such
realization could positively impact our operating results and cash flows from
operating activities.
Research and Development Costs
All research and development costs, including licensing costs, are charged to
expense as incurred. In accordance with this policy, all costs associated with
the design, development and testing of the Company's products have been expensed
as incurred.
Stock-based Compensation
Effective October 1, 2006, the Company adopted SFAS No. 123(R), "Share Based
Payment," which establishes standards for the accounting of all transactions in
which an entity exchanges its equity instruments for goods or services,
including transactions with non-employees and employees. SFAS No. 123(R)
requires a public entity to measure the cost of non-employee and employee
services received in exchange for an award of equity instruments, including
stock options, based on the grant date fair value of the award, and to recognize
it as compensation expense over the period service is provided in exchange for
the award, usually the vesting period. The value of the portion of the award
that is ultimately expected to vest is recognized as expense over the requisite
service periods in the Company's condensed consolidated statement of income.
SFAS No. 123(R) supersedes the Company's previous accounting under APB No. 25.
In March 2005, the SEC issued Staff Accounting Bulletin ("SAB") No. 107,
"Share-Based Payment", relating to SFAS No. 123(R). The Company has applied the
provisions of SAB No. 107 in its adoption of SFAS No. 123(R).
The Company adopted SFAS No. 123(R) using the modified prospective transition
method. Accordingly, the Company's condensed consolidated financial statements
as of and for the nine months ended June 30, 2007 reflect the impact of adopting
SFAS No. 123(R). The Company's condensed consolidated financial statements for
periods prior to the adoption of SFAS No. 123(R) have not been restated to
reflect, and do not include, the impact of SFAS No. 123(R).
The fair value of stock-based awards is calculated using the Black-Scholes
option pricing model. The Black-Scholes model requires subjective assumptions
regarding future stock price volatility and expected time to exercise, which
greatly affect the calculated values. The expected term of options granted is
derived from historical data on employee exercises and post-vesting employment
termination behavior. The risk-free rate selected to value any particular grant
is based on the U.S. Treasury rate that corresponds to the pricing term of the
grant effective as of the date of the grant. The expected volatility for the
nine months ended June 30, 2008 is based on the Company's historical
volatilities of its common stock. These factors could change in the future,
affecting the determination of stock-based compensation expense in future
periods.
RESULTS OF OPERATIONS
The statements contained in this Quarterly Report on Form 10-QSB that are not
historical facts may contain forward-looking statements that involve a number of
known and unknown risks and uncertainties that could cause actual results to
differ materially from those discussed or anticipated by management. Potential
risks and uncertainties include, among other factors, general business
conditions, government regulations governing medical device approvals and
manufacturing practices, competitive market conditions, success of the Company's
business strategy, delay of orders, changes in the mix of products sold,
availability of suppliers, concentration of sales in markets and to certain
customers, changes in manufacturing efficiencies, development and introduction
of new products, fluctuations in margins, timing of significant orders, and
other risks and uncertainties currently unknown to management.
Method of Presentation
The unaudited condensed consolidated financial statements include the accounts
of Trimedyne, Inc., its wholly owned subsidiary Mobile Surgical Technologies,
Inc. ("MST") and its 90% owned inactive subsidiary, Cardiodyne, Inc.
("Cardiodyne").
13
Quarter Ended June 30, 2008 Compared to Quarter ended June 30, 2007
During the quarter ended June 30, 2008, net revenues were $1,385,000 as compared
to $1,197,000 for the same period of the previous year, a $188,000 or 15%
increase. Net sales from lasers and accessories increased by $55,000 or 43% to
$182,000 during the three months ended June 30, 2008 from $127,000 in the same
period of the prior year. Net sales from delivery and disposable devices
decreased by $121,000 or 17% to $596,000 during the three months ended June 30,
2008 from $717,000 in the same period of the prior year. Export sales decreased
by $60,000 or 24% to $181,000 from $241,000 for the same quarter of the prior
year. The decreases in domestic and export sales was primarily due to domestic
customers and international distributors awaiting the introduction of the
Company's new VaporMax(R) fiber, which will be used with the Company's Holmium
laser for the treatment of benign prostatic hyperplasia ("BPH"). Net sales from
service and rental increased by $254,000 or 72% to $607,000 from $353,000 for
the same quarters. This increase was primarily due to an increase in case
revenues from MST as a result of the addition of sales personnel and the
expansion of its service business.
Cost of sales during the quarter ended June 30, 2008 was $1,017,000 or 73% of
net revenues as compared to $685,000 or 57% the prior year quarter. Gross profit
from the sale of lasers and accessories was 12% as compared to 24% for the prior
year three-month period. Gross profit from the sale of delivery and disposable
devices was 25% as compared to 50% for the prior year three-month period. The
decreases in gross profit was primarily the result of a volumizing difference
due to a lower production of units created by the 21% decrease in sales of
delivery systems during the current quarter along with increasing costs of
commodities and other raw materials. Gross profit from revenue received from
service and rentals was 32% as compared to 35% for the prior year three-month
period.
Selling, general and administrative expenses increased in the current quarter to
$602,000 from $566,000 in the prior year quarter, an increase of $36,000 or 6%.
The increase in selling, general and administrative expenses during the current
three-month period was primarily due to increases of $19,000 in payroll related
expenses, $22,000 in legal expense,$9,000 in accounting fees, and $5,000 in
commission expense, offset by decreases in marketing expense of $9,000, and
travel expenses of $8,000.
Research and development expenditures for the quarter ended June 30, 2008
increased $28,000 or 7% to $419,000 as compared to $391,000 in the quarter ended
June 30, 2007. This increase was a result of the Company expanding its product
development efforts and readying its new Side-Firing Laser Fibers for sale by
the Company, Lumenis, Inc. and Boston Scientific, Inc., which has taken longer
than anticipated due to problems in making the new Fibers consistently durable
to withstand the very high energy and powers of today's Holmium lasers.
Significant progress has been made in overcoming these problems; however,
delivery of the new Fibers is currently not expected to commence until about the
quarter ended March 31, 2009.
Other income, net, decreased by $20,000 or 20% to $81,000 in the quarter ended
June 30, 2008 from $101,000 in the same quarter of the prior year. The decrease
in other income during the quarter ended June 30, 2007 was primarily result of a
increase in royalty revenue of $69,000 offset by a decrease in bank interest
income of $31,000, due to lower interest rates combined with a lower cash
balance in interest bearing accounts, interest expense of $10,000, due to the
financing of equipment and certain insurance policies, a loss on the disposal of
equipment of $17,000 and a $31,000 decrease in settlements and recoveries which
was primarily the result of a refund from the state of California of $21,000 for
the overpayment of use tax during the current prior year.
For the current quarter, the Company had a net loss of $585,000 or $0.03 per
share, based on 18,365,960 basic weighted average number of common shares
outstanding, as compared to a net loss of $348,000 or $0.02 per share, based on
17,963,623 basic weighted average number of common shares outstanding in the
same quarter of the previous year.
Nine Months Ended June 30, 2008 Compared to Nine Months Ended June 30, 2007
During the nine months ended June 30, 2008, net revenues were the same as the
same period of the previous year at $4,090,000. Net revenues from lasers and
accessories increased by $181,000 or 42% to $613,000 during the nine months
ended June 30, 2008 from $432,000 in the same period of the prior year. Net
revenues from delivery and disposable devices decreased by $429,000 or 18% to
$1,990,000 during the nine months ended June 30, 2008 from $2,419,000 for the
same period of the prior year. During the nine months ended June 30, 2008 export
sales decreased by $54,000 or 5% to $853,000 as compared to $907,000 in the same
period of the prior year. The decreases in domestic and export sales was
primarily due to domestic customers and international distributors awaiting the
introduction of the Company's new VaporMax(R) fiber, which will be used with the
Company's Holmium laser for the treatment of benign prostatic hyperplasia
("BPH"). Net sales from service and rental increased by $248,000 or 20% to
$1,487,000 from $1,239,000 for the same quarters in the prior year. This
increase was primarily due to an increase in case revenues from MST as a result
of the addition of sales personnel and the expansion of its service business.
14
Cost of sales during the nine months ended June 30, 2008 was $2,897,000 or 70%
of net revenues as compared to $2,324,000 or 56% for the same period of the
prior year. Gross profit from the sale of lasers and accessories was 12% as
compared to 23% for the prior year nine-month period. The higher gross profit
from the sale of lasers during the prior year nine-month period was primarily
due to sale of a fully amortized demo laser during the period. Gross profit from
the sale of delivery and disposable devices was 38% as compared to 52% for the
prior year nine-month period. The decreases in gross profit was primarily the
result of a volumizing difference due to a lower production of units created by
the 18% decrease in sales of delivery systems during the nine-month period along
with increasing costs of commodities and other raw materials. Gross profit from
revenue received from service and rentals was 24% as compared to 33% for the
prior year nine-month period. The lower gross profit for the current nine-month
was primarily attributable to a higher cost of sales for our subsidiary, MST,
during the nine-month period of the previous year. This higher cost of sales was
primarily the result of increased repairs to upgrade MST's laser fleet during
the previous year period, along with a reduction in Medical Laser Safety
Technical staff in the current year. Additionally, overhead for Trimedyne's
service department increased during the current quarter as compared the prior
year quarter due to a reduction in laser service calls in the current nine-month
period.
For the nine months ended June 30, 2008, selling, general and administrative
expenses totaled $1,780,000 as compared to $1,598,000 for the same period of the
previous year, a $182,000 or an 11% increase. The increase in selling, general
and administration expense was primarily due to increases in payroll related
expenses of $99,000, insurance expense of $33,000, commissions expense of
$43,000, which was the result of new agreements with our international
distributors, and legal expenses of $20,000, offset by decreases in sales and
marketing expense of $11,000 and recruiting expense of $10,000.
During the nine months ended June 30, 2008, research and development expenses
increased to $994,000 from $804,000 in the prior year nine-month period, an
increase of $190,000 or 24%. This increase was a result the Company expanding
its product development efforts and readying its new Side-Firing Laser Fibers
for sale by the Company, Lumenis, Inc. and Boston Scientific, Inc., which has
taken longer than anticipated due to problems in making the new Fibers
consistently durable to withstand the very high energy and powers of today's
Holmium lasers. Significant progress has been made in overcoming these problems;
however, delivery of the new Fibers is currently not expected to commence until
about the quarter ended March 31, 2009.
Other income decreased by $142,000 or 37% to $340,000 in the current nine-month
period from $482,000 in the previous nine-month period of fiscal 2007. During
the nine months ended June 30, 2008, royalty income decreased $40,000 to
$314,000 as compared to $354,000 in the prior year nine-month period. Interest
income decreased $52,000 to $48,000 as compared to $100,000 during the same
prior year period due to lower bank interest rates combined with a lower cash
balance in interest bearing accounts. Interest expense increased $10,000 during
the current nine-month period as the Company entered into lease agreements for
the purchase of additional equipment and software along with the financing
certain insurance policies. During the nine months ended June 30, 2007, the
Company received a $21,000 refund from the State of California for overpayment
of use taxes, $2,000 from the State of Texas for a refund of surplus
unemployment taxes and reversed $14,000 of previous accruals for which the
Company no longer had obligations, offset by $11,000 of accrued interest on
notes due to an officer.
For the nine months ended June 30, 2008, the Company had net loss of $1,254,000
or $0.07 per share, based on 18,365,960 basic weighted average number of common
shares outstanding, as compared to a net loss of $162,000, or $0.01 per share,
based on 17,334,137 basic weighted average number of common shares outstanding
in the same period of the previous year, resulting from the above mentioned
factors.
Liquidity and Capital Resources
-------------------------------
At June 30, 2008, the Company had working capital of $5,023,000 compared to
$6,285,000 at September 30, 2007. Cash decreased by $882,000 to $2,297,000 from
$3,179,000 at the fiscal year ended September 30, 2007. We believe our existing
working capital will be sufficient to meet Trimedyne's operating needs, and the
operating needs of our 100% owned laser rental subsidiary for the next twelve
months. During the nine-month period ended June 30, 2008, net cash used in
operating activities was $747,000, which was the result of decreases in revenue,
higher cost of sales, increases in selling, general and administrative expenses
and research and development expenses. Net cash used in investing activities was
$64,000 due to the purchase of equipment. Net cash used in financing activities
during the current six month period was $71,000, which was the result of
payments on debt. If we fail to operate profitability, or if we undertake the
development, testing and marketing of additional new products in the future, we
will likely need to raise substantial additional capital. There can be no
assurance that we will be able to operate profitably in the future.
15
ITEM 3. CONTROLS AND PROCEDURES
As of June 30, 2008, an evaluation was carried out under the supervision and
with the participation of the Company's management, including our Chief
Executive Officer, of the effectiveness of the design and operation of our
disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e)
under the Securities Exchange Act of 1934). Based upon that evaluation, the
Chief Executive Officer concluded that the design and operation of these
disclosure controls and procedures were effective. No significant changes were
made in our internal controls or in other factors that could significantly
affect these controls subsequent to June 30, 2008.
(a) Evaluation of Disclosure Controls and Procedures. The Company carried out an
evaluation under the supervision and with the participation of the Company's
management, including the Company's Chief Executive Officer ("CEO") of the
effectiveness of the Company's disclosure controls and procedures. Based upon
that evaluation, the CEO concluded that as of June 30, 2008 our disclosure
controls and procedures were effective in timely alerting them to the material
information relating to the Company (or the Company's consolidated subsidiaries)
required to be included in the Company's periodic filings with the SEC, subject
to the various limitations on effectiveness set forth below under the heading,
"LIMITATIONS ON THE EFFECTIVENESS OF INTERNAL CONTROLS," such that the
information relating to the Company, required to be disclosed in SEC reports (i)
is recorded, processed, summarized and reported within the time periods
specified in SEC rules and forms, and (ii) is accumulated and communicated to
the Company's management, including our CEO, as appropriate to allow timely
decisions regarding required disclosure.
(b) Changes in internal control over financial reporting. There has been no
change in the Company's internal control over financial reporting that occurred
during the nine months ended June 30, 2008 that has materially affected, or is
reasonably likely to materially affect, the Company's internal control over
financial reporting.
LIMITATIONS ON THE EFFECTIVENESS OF INTERNAL CONTROLS
The Company's management, including the CEO, does not expect that our disclosure
controls and procedures or our internal control over financial reporting will
necessarily prevent all fraud and material error. An internal control system, no
matter how well conceived and operated, can provide only reasonable, not
absolute, assurance that the objectives of the control system are met. Further,
the design of the control system must reflect the fact that there are resource
constraints and the benefits of controls must be considered relative to their
costs. Because of the inherent limitations in all control systems, no evaluation
of controls can provide absolute assurance that all control issues and instances
of fraud, if any, within the Company have been detected. These inherent
limitations include the realities that judgments in decision-making can be
faulty and that breakdowns can occur because of simple error or mistake.
Additionally, controls can be circumvented by the individual acts of some
persons, by collusion of two or more people, or by management override of the
internal control. The design of any system of controls also is based in part
upon certain assumptions about the likelihood of future events, and there can be
no assurance that any design will succeed in achieving its stated goals under
all potential future conditions. Over time, control may become inadequate
because of changes in conditions, and/or the degree of compliance with the
policies or procedures may deteriorate.
16
PART II Other Information
ITEM 1. Legal Proceedings
In February 2008, the Company and other manufacturers of lasers were named as
defendants in a lawsuit in the State Court of Massachusetts by CardioFocus, Inc.
as allegedly infringing three of their now expired patents in 2002 -2006. The
Company and two of the other defendants submitted a petition to the U.S. Patent
and Trademark Office ("USPTO") to re-examine the patents to determine if they
are valid, as did several of the other defendants. The Company and the other
defendants petitioned the Court to stay the action, which is commonly done in
patent cases, to save the court time in conducting a case on patents which may
be later invalidated by the USPTO. The USPTO usually takes two to three years to
reach a decision on the validity of patents. If the USPTO should find any of the
patents to be valid, the Company has other defenses that we believe will enable
it to successfully defend against any claims by CardioFocus, Inc.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits
(a) Exhibits
31.1 Certification of CEO
31.2 Certification of Controller
32.1 Officer Certification
32.2 Controller Certification
17
SIGNATURE PAGE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
TRIMEDYNE, INC.
Date: August 19, 2008 /s/ Marvin P. Loeb
-------------------------- -----------------------------------
Marvin P. Loeb
Chairman and
Chief Executive Officer
Date: August 19, 2008 /s/ Jeffrey S. Rudner
-------------------------- -----------------------------------
Jeffrey S. Rudner
Controller
18