##### Table of Contents



FORM 10-Q
 SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended December 31, 2008
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the transition period from
 _____ 
to
 _____
 Commission file number: 1-10986
 MISONIX, INC.
 (Exact name of registrant as specified in its charter)
 New York
    
    11-2148932(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer
Identification No.)1938 New Highway, Farmingdale, NY
    
    11735(Address of principal executive offices)
    
    (Zip Code)
 (Registrants telephone number, including area code)
 þ o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ(Do not check if a smaller reporting company)
 o þ
  Outstanding atClass of Common Stock
    
    February 13, 2009Common Stock, $.01 par value
    
    7,001,369




---



##### 



MISONIX, INC.
 INDEX
 PagePart I  FINANCIAL INFORMATIONItem 1. Financial Statements:Consolidated Balance Sheets
 as of
December 31, 2008 (Unaudited) and June 30, 2008
    
    
    3Consolidated Statements of Operations 

Six months ended December 31, 2008
and 2007 (Unaudited)
    
    
    4Consolidated Statements of Operations 
Three months ended December 31, 2008
and 2007 (Unaudited)
    
    
    5Consolidated Statement of Stockholders Equity

Six months ended December 31, 2008 (Unaudited)
    
    
    6Consolidated Statements of Cash Flows 

Six months ended December 31, 2008
and 2007 (Unaudited)
    
    
    7Notes to Consolidated Financial Statements
    
    
    8Item 2. Managements Discussion and Analysis of Financial Condition
and Results of Operations
    
    
    17Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    23Item 4. Controls and Procedures
    
    
    23Part II  OTHER INFORMATIONItem 1A. Risk Factors
    
    
    24Item 4. Submissions of Matters to a Vote of Security Holders
    
    
    24Item 6. Exhibits
    
    
    24Signatures
    
    
    25Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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##### Table of Contents



Part I  FINANCIAL INFORMATION
 
 Item 1.
Financial Statements.
 MISONIX, INC. and Subsidiaries
 
 Consolidated Balance Sheets
 December 31,
    
    
    June 30,2008
    
    
    2008(Derived fromaudited financial(Unaudited)
    
    
    statements)AssetsCurrent assets:Cash
    
    $
    1,510,973
    
    
    $
    1,873,863Accounts receivable, less allowance for doubtful accounts of
$368,212 and $376,998, respectively
    
    
    7,586,072
    
    
    
    7,986,802Inventories, net
    
    
    10,068,516
    
    
    
    12,651,564Deferred income taxes
    
    
    1,040,473
    
    
    
    1,562,279Prepaid expenses and other current assets
    
    
    500,482
    
    
    
    904,737Total current assets
    
    
    20,706,516
    
    
    
    24,979,245Property, plant and equipment, net
    
    
    3,244,885
    
    
    
    4,398,867Deferred income taxes
    
    
    868,657
    
    
    
    1,280,217Goodwill
    
    
    5,709,013
    
    
    
    5,784,542Other assets
    
    
    847,510
    
    
    
    807,203Total assets
    
    $
    31,376,581
    
    
    $
    37,250,074Liabilities and stockholders equityCurrent liabilities:Revolving credit facilities
    
    $
    3,573,368
    
    
    $
    4,470,389Notes payable
    
    
    11,278
    
    
    
    246,888Accounts payable
    
    
    3,352,167
    
    
    
    5,497,541Accrued expenses and other current liabilities
    
    
    3,185,510
    
    
    
    4,760,115Foreign income taxes payable
    
    
    506,765
    
    
    
    696,791Current portion of deferred gain from sale and leaseback of building
    
    
    122,698
    
    
    
    159,195Current maturities of capital lease obligations
    
    
    226,574
    
    
    
    307,325Total current liabilities
    
    
    10,978,360
    
    
    
    16,138,244Capital lease obligations
    
    
    82,456
    
    
    
    225,909Deferred lease liability
    
    
    311,502
    
    
    
    348,502Deferred income taxes
    
    
    246,892
    
    
    
    250,514Deferred gain from sale and leaseback of building
    
    
    859,324
    
    
    
    1,273,772Deferred income
    
    
    346,596
    
    
    
    371,452Total liabilities
    
    
    12,825,130
    
    
    
    18,608,393Commitments and contingenciesMinority interest
    
    
    238,020
    
    
    
    199,237Stockholders equity:Common stock, $.01 par valueshares authorized 20,000,000;
7,079,169 issued and 7,001,369 outstanding
    
    
    70,792
    
    
    
    70,792Additional paidin capital
    
    
    25,140,914
    
    
    
    25,052,539Accumulated deficit
    
    
    (6,116,666
    )
    
    
    (6,630,170
    )Accumulated other comprehensive (loss) income
    
    
    (369,185
    )
    
    
    361,707Treasury stock, 77,800 shares
    
    
    (412,424
    )
    
    
    (412,424
    )Total stockholders equity
    
    
    18,313,431
    
    
    
    18,442,444Total liabilities and stockholders equity
    
    $
    31,376,581
    
    
    $
    37,250,074
 See Accompanying Notes to Consolidated Financial Statements.
  3




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MISONIX, INC. and Subsidiaries
 
 Consolidated Statements of Operations
 (Unaudited)
 For the six months endedDecember 31,2008
    
    
    2007Net sales
    
    $
    23,496,412
    
    
    $
    22,132,290Cost of goods sold
    
    
    14,128,232
    
    
    
    12,301,921Gross profit
    
    
    9,368,180
    
    
    
    9,830,369Operating expenses:Selling expenses
    
    
    3,454,744
    
    
    
    3,587,185General and administrative expenses
    
    
    4,850,664
    
    
    
    5,126,076Research and development expenses
    
    
    1,477,982
    
    
    
    1,645,552Litigation expenses
    
    
    100,000
    
    
    
    Total operating expenses
    
    
    9,883,390
    
    
    
    10,358,813Loss from operations
    
    
    (515,210
    )
    
    
    (528,444
    )Other income (expense):Interest income
    
    
    16,384
    
    
    
    24,586Interest expense
    
    
    (186,440
    )
    
    
    (251,180
    )Royalty income and license fees
    
    
    315,963
    
    
    
    332,718Royalty expense
    
    
    (99,245
    )
    
    
    (163,468
    )Recovery of Focus Surgery, Inc. investment
    
    
    1,516,866
    
    
    
    Other
    
    
    (57,962
    )
    
    
    122,124Total other income
    
    
    1,505,566
    
    
    
    64,780Income (loss) before minority interest and income taxes
    
    
    990,356
    
    
    
    (463,664
    )Minority interest in net income of consolidated
subsidiaries
    
    
    36,328
    
    
    
    23,311Income (loss) before income taxes
    
    
    954,028
    
    
    
    (486,975
    )Income tax provision (benefit)
    
    
    440,524
    
    
    
    (143,531
    )Net income (loss)
    
    $
    513,504
    
    
    $
    (343,444
    )Net income (loss) per share  Basic
    
    $
    0.07
    
    
    $
    (0.05
    )Net income (loss) per share  Diluted
    
    $
    0.07
    
    
    $
    (0.05
    )Weighted average common shares outstanding  Basic
    
    
    7,001,369
    
    
    
    7,001,369Weighted average common shares outstanding  Diluted
    
    
    7,022,226
    
    
    
    7,001,369
 See Accompanying Notes to Consolidated Financial Statements
  4




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MISONIX, INC. and Subsidiaries
 
 Consolidated Statements of Operations
 (Unaudited)
 For the three months endedDecember 31,2008
    
    
    2007Net sales
    
    $
    12,189,939
    
    
    $
    11,600,053Cost of goods sold
    
    
    7,247,189
    
    
    
    6,435,478Gross profit
    
    
    4,942,750
    
    
    
    5,164,575Operating expenses:Selling expenses
    
    
    1,617,487
    
    
    
    1,898,675General and administrative expenses
    
    
    2,197,859
    
    
    
    2,620,316Research and development expenses
    
    
    701,508
    
    
    
    935,315Litigation expenses
    
    
    100,000
    
    
    
    Total operating expenses
    
    
    4,616,854
    
    
    
    5,454,306Income (loss) from operations
    
    
    325,896
    
    
    
    (289,731
    )Other income (expense):Interest income
    
    
    4,745
    
    
    
    6,854Interest expense
    
    
    (91,740
    )
    
    
    (118,871
    )Royalty income and license fees
    
    
    139,736
    
    
    
    146,640Royalty expense
    
    
    (50,667
    )
    
    
    (77,498
    )Other
    
    
    31,141
    
    
    
    128,816Total other income
    
    
    33,215
    
    
    
    85,941Income (loss) before minority interest and income taxes
    
    
    359,111
    
    
    
    (203,790
    )Minority interest in net income of consolidated
subsidiaries
    
    
    19,601
    
    
    
    13,867Income (loss) before income taxes
    
    
    339,510
    
    
    
    (217,657
    )Income tax provision (benefit)
    
    
    146,008
    
    
    
    (100,477
    )Net income (loss)
    
    $
    193,502
    
    
    $
    (117,180
    )Net income (loss) per share  Basic
    
    $
    0.03
    
    
    $
    (0.02
    )Net income (loss) per share  Diluted
    
    $
    0.03
    
    
    $
    (0.02
    )Weighted average common shares outstanding  Basic
    
    
    7,001,369
    
    
    
    7,001,369Weighted average common shares outstanding  Diluted
    
    
    7,012,498
    
    
    
    7,001,369
 See Accompanying Notes to Consolidated Financial Statements
  5




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MISONIX, INC. and Subsidiaries
 
 Consolidated Statement of Stockholders Equity
 (Unaudited)
  AccumulatedCommon Stock
    
    
    Treasury Stock
    
    
    
    
    
    
    
    
    
    
    other
    
    
    TotalNumber of
    
    
    
    
    
    
    Number of
    
    
    
    
    
    
    Additional
    
    
    Accumulated
    
    
    comprehensive
    
    
    stockholdersshares
    
    
    Amount
    
    
    shares
    
    
    Amount
    
    
    paid-in capital
    
    
    deficit
    
    
    income (loss)
    
    
    equityBalance, June 30,
2008
    
    
    7,079,169
    
    
    $
    70,792
    
    
    
    (77,800
    )
    
    $
    (412,424
    )
    
    $
    25,052,539
    
    
    $
    (6,630,170
    )
    
    $
    361,707
    
    
    $
    18,442,444Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    513,504
    
    
    
    
    
    
    
    513,504Foreign
currency
translation
adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (730,892
    )
    
    
    (730,892
    )Comprehensive
income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (217,388
    )Stock-based
compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    88,375
    
    
    
    
    
    
    
    
    
    
    
    88,375Balance, December
31, 2008
    
    
    7,079,169
    
    
    $
    70,792
    
    
    
    (77,800
    )
    
    $
    (412,424
    )
    
    $
    25,140,914
    
    
    $
    (6,116,666
    )
    
    $
    (369,185
    )
    
    $
    18,313,431
 See Accompanying Notes to Consolidated Financial Statements.
  6




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MISONIX, INC. and Subsidiaries
 
 Consolidated Statements of Cash Flows
 (Unaudited)
 For the six months endedDecember 31,2008
    
    
    2007Operating activitiesNet income (loss)
    
    $
    513,504
    
    
    $
    (343,444
    )Adjustments to reconcile net income (loss) to net cash provided by (used in)
operating activities:Depreciation and amortization and other non-cash items
    
    
    829,809
    
    
    
    757,224Bad debt expense
    
    
    137,820
    
    
    
    168,798Deferred income tax expense (benefit)
    
    
    543,031
    
    
    
    (164,327
    )Loss on disposal of property, plant and equipment
    
    
    35,237
    
    
    
    52,408Minority interest in net income of subsidiaries
    
    
    36,328
    
    
    
    23,311Stock-based compensation
    
    
    88,375
    
    
    
    98,237Deferred income (loss)
    
    
    (24,856
    )
    
    
    (91,026
    )Deferred leasehold costs
    
    
    (106,276
    )
    
    
    (98,232
    )Recovery of Focus Surgery, Inc. investment
    
    
    (1,516,866
    )
    
    
    Changes in operating assets and liabilities:Accounts receivable
    
    
    (801,347
    )
    
    
    (122,351
    )Inventories
    
    
    876,425
    
    
    
    (134,300
    )Income taxes
    
    
    (22,980
    )
    
    
    4,882Prepaid expenses and other current assets
    
    
    326,683
    
    
    
    1,146,687Accounts payable and accrued expenses
    
    
    (1,871,183
    )
    
    
    (615,422
    )Foreign income taxes payable
    
    
    90,846
    
    
    
    Other assets
    
    
    (132,822
    )
    
    
    (17,872
    )Net cash (used in) provided by operating activities
    
    
    (998,272
    )
    
    
    664,573Investing activitiesAcquisition of property, plant and equipment
    
    
    (163,834
    )
    
    
    (303,057
    )Recovery of Focus Surgery, Inc. investment
    
    
    1,516,866
    
    
    
    Investment in UKHIFU Limited
    
    
    (21,705
    )
    
    
    (25,414
    )Acquisition of minority interest
    
    
    
    
    
    
    (559,768
    )Net cash provided by (used in) investing activities
    
    
    1,331,327
    
    
    
    (888,239
    )Financing activitiesProceeds from short-term borrowings
    
    
    14,211,396
    
    
    
    9,517,899Payments of short-term borrowings
    
    
    (14,836,575
    )
    
    
    (10,887,510
    )Principal payments on capital lease obligations
    
    
    (145,621
    )
    
    
    (210,174
    )Net cash used in financing activities
    
    
    (770,800
    )
    
    
    (1,579,785
    )Effect of exchange rate changes on cash
    
    
    74,855
    
    
    
    10,483Net decrease in cash
    
    
    (362,890
    )
    
    
    (1,792,968
    )Cash at beginning of period
    
    
    1,873,863
    
    
    
    2,900,358Cash at end of period
    
    $
    1,510,973
    
    
    $
    (1,107,390
    )Supplemental disclosure of cash flow information:Cash paid for:Interest
    
    $
    186,797
    
    
    $
    259,510Income taxes
    
    $
    63,763
    
    
    $
    11,539Supplemental disclosure of noncash investing
and financing activities:Capital lease additions
    
    $
    35,576
    
    
    $
    330,503
 See Accompanying Notes to Consolidated Financial Statements.
  7




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##### Table of Contents



MISONIX,
INC. and Subsidiaries
 
 Notes to Consolidated Financial Statements
 Basis of Presentation
    Net Income (Loss) Per Share of Common Stock
   For the six months ended
    
    
    For the three months endedDecember 31,
    
    
    December 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Basic shares
    
    
    7,001,369
    
    
    
    7,001,369
    
    
    
    7,001,369
    
    
    
    7,001,369Dilutive effect of stock options
    
    
    20,857
    
    
    
    
    
    
    
    11,129
    
    
    
    Diluted shares
    
    
    7,022,226
    
    
    
    7,001,369
    
    
    
    7,012,498
    
    
    
    7,001,369
   Comprehensive Income (Loss)
   8




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MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
 Stock-Based Compensation
     For the six months ended
    
    
    For the three months endedDecember 31,
    
    
    December 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Risk-free interest rate
    
    
    3.1
    %
    
    
    4.3
    %
    
    
    2.8
    %
    
    
    4.3
    %Expected option life in years
    
    
    6.5
    
    
    
    6.5
    
    
    
    6.5
    
    
    
    6.5Expected stock price volatility
    
    
    54.5
    %
    
    
    54.7
    %
    
    
    54.9
    %
    
    
    54.9
    %Expected dividend yield
    
    
    0
    %
    
    
    0
    %
    
    
    0
    %
    
    
    0
    %Weighted-average fair value of options
granted
    
    $
    1.14
    
    
    $
    2.51
    
    
    $
    0.93
    
    
    $
    2.90
   9




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##### Table of Contents



MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
  OptionsWeightedAverageWeighted
    
    
    RemainingAverage
    
    
    Contractual
    
    
    AggregateNumber of
    
    
    Exercise
    
    
    Life
    
    
    IntrinsicShares
    
    
    Price
    
    
    (years)
    
    
    Value(a)Outstanding as of June 30, 2008
    
    
    1,822,841
    
    
    $
    5.71
    
    
    
    4.9Granted
    
    
    303,150
    
    
    
    2.02Forfeited
    
    
    (500
    )
    
    
    4.04Expired
    
    
    (264,500
    )
    
    
    5.20Outstanding as of December 31, 2008
    
    
    1,860,991
    
    
    $
    5.18
    
    
    
    5.6
    
    
    $
    Exercisable and vested at December 31, 2008
    
    
    1,431,738
    
    
    $
    5.87
    
    
    
    4.5
    
    
    $
    Available for grant at December 31, 2008
    
    
    445,783
 (a)
    
    Intrinsic value for purposes of this table represents the amount by which the fair value of the
underlying stock, based on the respective market prices at December 31, 2008 or if exercised, the
exercise dates, exceeds the exercise prices of the respective options. Focus Surgery, Inc.
     10




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##### Table of Contents



MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
 Income Taxes
     Inventories
  December 31,
    
    
    June 30,2008
    
    
    2008Raw materials
    
    $
    6,832,308
    
    
    $
    6,234,467Workinprocess
    
    
    2,257,094
    
    
    
    3,375,878Finished goods
    
    
    2,939,611
    
    
    
    4,983,59312,029,013
    
    
    
    14,593,938Less valuation reserve
    
    
    1,960,497
    
    
    
    1,942,374$
    10,068,516
    
    
    $
    12,651,564
  11




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##### Table of Contents



MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
 Accrued Expenses and Other Current Liabilities
  December 31,
    
    
    June 30,2008
    
    
    2008Customer deposits and deferred contracts
    
    $
    941,144
    
    
    $
    1,765,827Accrued payroll and vacation
    
    
    960,739
    
    
    
    945,933Accrued VAT and sales tax
    
    
    233,799
    
    
    
    359,172Accrued commissions and bonuses
    
    
    356,033
    
    
    
    675,069Accrued professional fees
    
    
    96,540
    
    
    
    43,352Litigation
    
    
    424,000
    
    
    
    324,000Other
    
    
    173,255
    
    
    
    646,762$
    3,185,510
    
    
    $
    4,760,115
 Revolving Credit Facilities
   1 2
  12




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MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
  Commitments and Contingencies
   Business Segments
 ®
   13




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##### Table of Contents



MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
  Medical Device
    
    
    Laboratory and
    
    
    Corporate andProducts
    
    
    Scientific Products
    
    
    Unallocated
    
    
    TotalNet sales
    
    $
    12,399,442
    
    
    $
    11,096,970
    
    
    $
    
    
    
    $
    23,496,412Cost of goods sold
    
    
    6,751,782
    
    
    
    7,376,450
    
    
    
    
    
    
    
    14,128,232Gross profit
    
    
    5,647,660
    
    
    
    3,720,520
    
    
    
    
    
    
    
    9,368,180Selling expenses
    
    
    2,285,424
    
    
    
    1,169,320
    
    
    
    
    
    
    
    3,454,744Research and development
expenses
    
    
    966,660
    
    
    
    511,322
    
    
    
    
    
    
    
    1,477,982General and administrative
expenses
    
    
    
    
    
    
    
    
    
    
    4,850,664
    
    
    
    4,850,664Litigation
expense
    
    
    100,000
    
    
    
    
    
    
    
    
    
    
    
    100,000Total operating expenses
    
    
    3,352,084
    
    
    
    1,680,642
    
    
    
    4,850,664
    
    
    
    9,883,390Income (loss) from operations
    
    $
    2,295,576
    
    
    $
    2,039,878
    
    
    $
    (4,850,664
    )
    
    $
    (515,210
    )
  Medical Device
    
    
    Laboratory and
    
    
    Corporate andProducts
    
    
    Scientific Products
    
    
    Unallocated
    
    
    TotalNet sales
    
    $
    11,336,320
    
    
    $
    10,795,970
    
    
    $
    
    
    
    $
    22,132,290Cost of goods sold
    
    
    5,663,322
    
    
    
    6,638,599
    
    
    
    
    
    
    
    12,301,921Gross profit
    
    
    5,672,998
    
    
    
    4,157,371
    
    
    
    
    
    
    
    9,830,369Selling expenses
    
    
    2,295,628
    
    
    
    1,291,557
    
    
    
    
    
    
    
    3,587,185Research and development
expenses
    
    
    1,119,065
    
    
    
    526,487
    
    
    
    
    
    
    
    1,645,552General and administrative
expenses
    
    
    
    
    
    
    
    
    
    
    5,126,076
    
    
    
    5,126,076Total operating expenses
    
    
    3,414,693
    
    
    
    1,818,044
    
    
    
    5,126,076
    
    
    
    10,358,813Income (loss) from operations
    
    $
    2,258,305
    
    
    $
    2,339,327
    
    
    $
    (5,126,076
    )
    
    $
    (528,444
    )
  14




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##### Table of Contents



MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
  Medical Device
    
    
    Laboratory and
    
    
    Corporate andProducts
    
    
    Scientific Products
    
    
    Unallocated
    
    
    TotalNet sales
    
    $
    6,947,616
    
    
    $
    5,242,323
    
    
    $
    
    
    
    $
    12,189,939Cost of goods sold
    
    
    3,728,874
    
    
    
    3,518,315
    
    
    
    
    
    
    
    7,247,189Gross profit
    
    
    3,218,742
    
    
    
    1,724,008
    
    
    
    
    
    
    
    4,942,750Selling expenses
    
    
    1,037,633
    
    
    
    579,854
    
    
    
    
    
    
    
    1,617,487Research and development
expenses
    
    
    483,728
    
    
    
    217,780
    
    
    
    
    
    
    
    701,508General and administrative
expenses
    
    
    
    
    
    
    
    
    
    
    2,197,859
    
    
    
    2,197,859Litigation
expense
    
    
    100,000
    
    
    
    
    
    
    
    
    
    
    
    100,000Total operating expenses
    
    
    1,621,361
    
    
    
    797,634
    
    
    
    2,197,859
    
    
    
    4,616,854Income (loss) from operations
    
    $
    1,597,381
    
    
    $
    926,374
    
    
    $
    (2,197,859
    )
    
    $
    325,896
  Medical Device
    
    
    Laboratory and
    
    
    Corporate andProducts
    
    
    Scientific Products
    
    
    Unallocated
    
    
    TotalNet sales
    
    $
    6,038,203
    
    
    $
    5,561,850
    
    
    $
    
    
    
    $
    11,600,053Cost of goods sold
    
    
    2,956,296
    
    
    
    3,479,182
    
    
    
    
    
    
    
    6,435,478Gross profit
    
    
    3,081,907
    
    
    
    2,082,668
    
    
    
    
    
    
    
    5,164,575Selling expenses
    
    
    1,215,457
    
    
    
    683,218
    
    
    
    
    
    
    
    1,898,675Research and development
expenses
    
    
    650,220
    
    
    
    285,095
    
    
    
    
    
    
    
    935,315General and administrative
expenses
    
    
    
    
    
    
    
    
    
    
    2,620,316
    
    
    
    2,620,316Total operating expenses
    
    
    1,865,677
    
    
    
    968,313
    
    
    
    2,620,316
    
    
    
    5,454,306Income (loss) from operations
    
    $
    1,216,230
    
    
    $
    1,114,355
    
    
    $
    (2,620,316
    )
    
    $
    (289,731
    )
  15




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##### Table of Contents



MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
  Six months ended December 31,
    
    
    Three months ended December 31,2008
    
    
    2007
    
    
    2008
    
    
    2007United States
    
    $
    12,387,241
    
    
    $
    11,894,476
    
    
    $
    6,600,534
    
    
    $
    6,250,743United Kingdom
    
    
    7,229,607
    
    
    
    7,037,648
    
    
    
    3,299,097
    
    
    
    3,589,682Europe
    
    
    1,906,228
    
    
    
    1,190,475
    
    
    
    1,379,813
    
    
    
    798,875Asia
    
    
    796,626
    
    
    
    1,143,351
    
    
    
    409,694
    
    
    
    460,741Canada and Mexico
    
    
    374,017
    
    
    
    270,886
    
    
    
    161,892
    
    
    
    162,743Middle East
    
    
    190,657
    
    
    
    136,911
    
    
    
    74,255
    
    
    
    108,990Other
    
    
    612,036
    
    
    
    458,543
    
    
    
    264,654
    
    
    
    228,279$
    23,496,412
    
    
    $
    22,132,290
    
    
    $
    12,189,939
    
    
    $
    11,600,053
 Recent Accounting Pronouncements
       16




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##### Table of Contents



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
  Net sales :
  Gross profit: ®
  17




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##### Table of Contents



Selling expenses:
 General
and administrative expenses:
 Research and development expenses:
 Litigation expenses:
 Other income (expense):
 Income
taxes:
  Net sales :
  18




---



##### Table of Contents



Gross profit:
 Selling expenses:
 General
and administrative expenses:
 Research and development expenses:
  19




---



##### Table of Contents



Litigation expenses:
 Other income (expense):
 Income taxes:
 Critical Accounting Policies
    Recent Accounting Pronouncements
    20




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##### Table of Contents



Forward Looking Statements
  Liquidity and Capital Resources
   21




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##### Table of Contents



Revolving Credit Facilities
   1 2
   22




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##### Table of Contents



Off-Balance Sheet Arrangements
  Other
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risk.
 Market Risk:
  Foreign Exchange Rates:
  Interest Rate Risk:
  
 Item 4. Controls and Procedures.
  and 15d-15(f)
  23




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##### Table of Contents



Part
II  OTHER INFORMATION
 
   
    
  Exhibits 31.1-
    
    Rule 13a-14(a)/15d-14(a) CertificationExhibits 31.2-
    
    Rule 13a-14(a)/15d-14(a) CertificationExhibits 32.1-
    
    Section 1350 Certification of Chief Executive OfficerExhibits 32.2-
    
    Section 1350 Certification of Chief Financial Officer
  24




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##### Table of Contents



SIGNATURES
   MISONIX, INC.(Registrant)By:
    /s/ Michael A. McManus, Jr.Michael A. McManus, Jr.President and Chief Executive OfficerBy:
    /s/ Richard ZarembaRichard ZarembaSenior Vice President, Chief Financial Officer,
Treasurer and Secretary  25




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##### Table of Contents



EXHIBIT INDEX
 Exhibits 31.1-
    
    Rule 13a-14(a)/15d-14(a) CertificationExhibits 31.2-
    
    Rule 13a-14(a)/15d-14(a) CertificationExhibits 32.1-
    
    Section 1350 Certification of Chief Executive OfficerExhibits 32.2-
    
    Section 1350 Certification of Chief Financial Officer
  26