##### 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 endedMarch 31, 2009
 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
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)1938 New Highway, Farmingdale, NY
    
    11735(Address of principal executive offices)
    
    (Zip Code)
  (Registrants telephone number, including area code)
 Yes þ No o
 Yes o No o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ(Do not check if a smaller reporting company)
 Yes o No þ
  Outstanding atClass of Common Stock
    
    May 11, 2009Common Stock, $.01 par value
    
    7,001,369




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##### 



MISONIX, INC.
  
 INDEX
 PagePart I   FINANCIAL INFORMATIONItem 1. Financial Statements:Consolidated Balance Sheets as of 
March 31, 2009 (Unaudited) and June 30, 2008
    
    
    3Consolidated Statements of Operations 
Nine months ended March 31, 2009
and 2008 (Unaudited)
    
    
    4Consolidated Statements of Operations 
Three months ended March 31, 2009
and 2008 (Unaudited)
    
    
    5Consolidated Statement of Stockholders Equity 

Nine months ended March 31, 2009 (Unaudited)
    
    
    6Consolidated Statements of Cash Flows 

Nine months ended March 31, 2009 and 2008 (Unaudited)
    
    
    7Notes to Consolidated Financial Statements
    
    
    8Item 2. Managements Discussion and Analysis of Financial Condition
and Results of Operations
    
    
    18Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    24Item 4. Controls and Procedures
    
    
    24Part II   OTHER INFORMATIONItem 1A. Risk Factors
    
    
    25Item 6. Exhibits
    
    
    25Signatures
    
    
    26Exhibit 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
 March 31,
    
    
    June 30,2009
    
    
    2008(Unaudited)
    
    
    (Derived fromaudited financialstatements)AssetsCurrent assets:Cash
    
    $
    1,096,677
    
    
    $
    1,873,863Accounts receivable, less allowance for doubtful accounts of
$473,314 and $376,998, respectively
    
    
    6,245,861
    
    
    
    7,986,802Inventories, net
    
    
    10,017,066
    
    
    
    11,906,091Deferred income taxes
    
    
    1,125,846
    
    
    
    1,562,279Prepaid expenses and other current assets
    
    
    1,157,893
    
    
    
    904,737Current assets held for sale
    
    
    622,372
    
    
    
    745,473Total current assets
    
    
    20,265,715
    
    
    
    24,979,245Property, plant and equipment, net
    
    
    2,984,281
    
    
    
    4,371,373Deferred income taxes
    
    
    819,269
    
    
    
    1,280,217Goodwill
    
    
    5,713,034
    
    
    
    5,784,542Other assets
    
    
    1,486,551
    
    
    
    807,203Assets held for sale
    
    
    25,255
    
    
    
    27,494Total assets
    
    $
    31,294,105
    
    
    $
    37,250,074Liabilities and stockholders equityCurrent liabilities:Revolving credit facilities
    
    $
    2,816,852
    
    
    $
    4,470,389Notes payable
    
    
    388,410
    
    
    
    246,888Accounts payable
    
    
    3,344,840
    
    
    
    5,497,541Accrued expenses and other current liabilities
    
    
    2,868,804
    
    
    
    4,760,115Foreign income taxes payable
    
    
    546,775
    
    
    
    696,791Current portion of deferred gain from sale and leaseback of building
    
    
    113,418
    
    
    
    159,195Current maturities of capital lease obligations
    
    
    209,156
    
    
    
    307,325Total current liabilities
    
    
    10,288,255
    
    
    
    16,138,244Capital lease obligations
    
    
    32,353
    
    
    
    225,909Deferred lease liability
    
    
    292,999
    
    
    
    348,502Deferred income taxes
    
    
    687,526
    
    
    
    250,514Deferred gain from sale and leaseback of building
    
    
    822,277
    
    
    
    1,273,772Deferred income
    
    
    350,773
    
    
    
    371,452Total liabilities
    
    
    12,474,183
    
    
    
    18,608,393Commitments and contingenciesMinority interest
    
    
    236,107
    
    
    
    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
    
    
    25,193,939
    
    
    
    25,052,539Accumulated deficit
    
    
    (6,001,199
    )
    
    
    (6,630,170
    )Accumulated other comprehensive (loss) income
    
    
    (267,293
    )
    
    
    361,707Treasury stock, 77,800 shares
    
    
    (412,424
    )
    
    
    (412,424
    )Total stockholders equity
    
    
    18,583,815
    
    
    
    18,442,444Total liabilities and stockholders equity
    
    $
    31,294,105
    
    
    $
    37,250,074
 See Accompanying Notes to Consolidated Financial Statements.
  3




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##### Table of Contents



MISONIX, INC. and Subsidiaries
 
 Consolidated Statements of Operations
 (Unaudited)
 For the nine months endedMarch 31,2009
    
    
    2008Net sales
    
    $
    29,325,347
    
    
    $
    30,588,650Cost of goods sold
    
    
    17,474,066
    
    
    
    17,009,968Gross profit
    
    
    11,851,281
    
    
    
    13,578,682Operating expenses:Selling expenses
    
    
    4,429,295
    
    
    
    5,273,525General and administrative expenses
    
    
    6,949,336
    
    
    
    7,596,223Research and development expenses
    
    
    1,896,370
    
    
    
    2,175,713Litigation expenses
    
    
    102,000
    
    
    
    Total operating expenses
    
    
    13,377,001
    
    
    
    15,045,461Operating loss from continuing operations
    
    
    (1,525,720
    )
    
    
    (1,466,779
    )Other income (expense):Interest income
    
    
    17,089
    
    
    
    35,345Interest expense
    
    
    (248,768
    )
    
    
    (353,070
    )Royalty income and license fees
    
    
    464,416
    
    
    
    539,413Royalty expense
    
    
    (99,545
    )
    
    
    (262,867
    )Recovery of Focus Surgery, Inc. investment
    
    
    1,516,866
    
    
    
    Other
    
    
    (68,951
    )
    
    
    179,129Total other income
    
    
    1,581,107
    
    
    
    137,950Income (loss) from continuing operations before minority
interest and income taxes
    
    
    55,387
    
    
    
    (1,328,829
    )Minority interest in net income of consolidated subsidiaries
    
    
    32,967
    
    
    
    47,580Income (loss) from continuing operations before income taxes
    
    
    22,420
    
    
    
    (1,376,409
    )Income tax benefit
    
    
    (234,679
    )
    
    
    (381,004
    )Net income (loss) from continuing operations
    
    $
    257,099
    
    
    $
    (995,405
    )Net income from discontinued operations , net of tax
    
    $
    371,872
    
    
    $
    457,924Net income (loss)
    
    $
    628,971
    
    
    $
    (537,481
    )Net income (loss) per share from continuing operations  Basic
    
    $
    0.04
    
    
    $
    (0.14
    )Net income per share from discontinued operations  Basic
    
    $
    0.05
    
    
    $
    0.07Net income (loss) per share  Basic
    
    $
    0.09
    
    
    $
    (0.08
    )Net income (loss) per share from continuing operations  Diluted
    
    $
    0.04
    
    
    $
    (0.14
    )Net income per share from discontinued operations  Diluted
    
    $
    0.05
    
    
    $
    0.07Net income (loss) per share  Diluted
    
    $
    0.09
    
    
    $
    (0.08
    )Weighted average common shares outstanding  Basic
    
    
    7,001,369
    
    
    
    7,001,369Weighted average common shares outstanding  Diluted
    
    
    7,016,299
    
    
    
    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 endedMarch 31,2009
    
    
    2008Net sales
    
    $
    8,047,051
    
    
    $
    10,700,621Cost of goods sold
    
    
    4,743,033
    
    
    
    6,143,723Gross profit
    
    
    3,304,018
    
    
    
    4,556,898Operating expenses:Selling expenses
    
    
    1,203,821
    
    
    
    1,883,948General and administrative expenses
    
    
    2,098,672
    
    
    
    2,470,147Research and development expenses
    
    
    574,181
    
    
    
    653,372Litigation settlement expenses
    
    
    2,000
    
    
    
    Total operating expenses
    
    
    3,878,674
    
    
    
    5,007,467Operating loss from continuing operations
    
    
    (574,656
    )
    
    
    (450,569
    )Other income (expense):Interest income
    
    
    2,081
    
    
    
    10,759Interest expense
    
    
    (63,703
    )
    
    
    (101,890
    )Royalty income and license fees
    
    
    148,453
    
    
    
    206,695Royalty expense
    
    
    (300
    )
    
    
    (99,399
    )Other
    
    
    (10,989
    )
    
    
    57,005Total other income
    
    
    75,542
    
    
    
    73,170Loss from continuing operations before minority interest and income
taxes
    
    
    (499,114
    )
    
    
    (377,399
    )Minority interest in net income (loss) of consolidated
subsidiaries
    
    
    (3,361
    )
    
    
    24,269Loss from continuing operations before income taxes
    
    
    (495,753
    )
    
    
    (401,668
    )Income tax benefit
    
    
    (473,838
    )
    
    
    (97,266
    )Net loss from continuing operations
    
    $
    (21,915
    )
    
    $
    (304,402
    )Net income from discontinued operations, net of
tax
    
    $
    137,382
    
    
    $
    110,365Net income (loss)
    
    $
    115,467
    
    
    $
    (194,037
    )Net loss per share from continuing operations  Basic
    
    $
    0.00
    
    
    $
    (0.04
    )Net income per share from discontinued operations  Basic
    
    $
    0.02
    
    
    $
    0.02Net income (loss) per share  Basic
    
    $
    0.02
    
    
    $
    (0.03
    )Net loss per share from continuing operations  Diluted
    
    $
    0.00
    
    
    $
    (0.04
    )Net income per share from discontinued operations  Diluted
    
    $
    0.02
    
    
    $
    0.02Net income (loss) per share  Diluted
    
    $
    0.02
    
    
    $
    (0.03
    )Weighted average common shares outstanding  Basic
    
    
    7,001,369
    
    
    
    7,001,369Weighted average common shares outstanding  Diluted
    
    
    7,001,369
    
    
    
    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)
 Nine months ended March 31, 2009AccumulatedCommon 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
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    628,971
    
    
    
    
    
    
    
    628,971Foreign
currency
translation
adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (629,000
    )
    
    
    (629,000
    )Comprehensive
loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (29
    )Stock-based
compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    141,400
    
    
    
    
    
    
    
    
    
    
    
    141,400Balance, December 31,
2008
    
    
    7,079,169
    
    
    $
    70,792
    
    
    
    (77,800
    )
    
    $
    (412,424
    )
    
    $
    25,193,939
    
    
    $
    (6,001,199
    )
    
    $
    (267,293
    )
    
    $
    18,583,815
 See Accompanying Notes to Consolidated Financial Statements.
  6




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MISONIX, INC. and Subsidiaries
 
 Consolidated Statements of Cash Flows
 (Unaudited)
 For the nine months endedMarch 31,2009
    
    
    2008Operating activitiesNet income (loss) from continuing operations
    
    $
    257,099
    
    
    $
    (995,405
    )Net income from discontinued operations
    
    
    371,872
    
    
    
    457,924Net income (loss)
    
    $
    628,971
    
    
    $
    (537,481
    )Adjustments to reconcile net income (loss) to net cash used in
operating activities:Depreciation and amortization and other non-cash items
    
    
    1,078,193
    
    
    
    1,051,349Bad debt expense
    
    
    255,243
    
    
    
    (56,405
    )Deferred income tax benefit
    
    
    1,090,557
    
    
    
    (246,753
    )Loss on disposal of property, plant and equipment
    
    
    33,249
    
    
    
    63,159Minority interest in net income of subsidiaries
    
    
    32,968
    
    
    
    47,580Stock-based compensation
    
    
    141,400
    
    
    
    151,262Deferred income (loss)
    
    
    (20,679
    )
    
    
    (96,269
    )Deferred leasehold costs
    
    
    (153,553
    )
    
    
    (144,233
    )Recovery of Focus Surgery, Inc. investment
    
    
    (1,516,866
    )
    
    
    Changes in operating assets and liabilities:Accounts receivable
    
    
    540,060
    
    
    
    (624,458
    )Inventories
    
    
    106,648
    
    
    
    286,985Income taxes
    
    
    (64,596
    )
    
    
    21,584Prepaid expenses and other current assets
    
    
    (370,826
    )
    
    
    615,601Accounts payable and accrued expenses
    
    
    (3,026,888
    )
    
    
    40,369Foreign income taxes payable
    
    
    540,854
    
    
    
    Other assets
    
    
    (202,984
    )
    
    
    (19,944
    )Change in assets held for sale
    
    
    125,340
    
    
    
    (771,966
    )Net cash used in operating activities
    
    
    (782,909
    )
    
    
    (219,620
    )Investing activitiesAcquisition of property, plant and equipment
    
    
    (231,579
    )
    
    
    (335,335
    )Recovery of Focus Surgery, Inc. investment
    
    
    1,516,866
    
    
    
    Investment in UKHIFU Limited
    
    
    (30,721
    )
    
    
    (37,781
    )Acquisition of minority interest
    
    
    
    
    
    
    (839,653
    )Net cash provided by (used in) investing activities
    
    
    1,254,566
    
    
    
    (1,212,769
    )Financing activitiesProceeds from short-term borrowings
    
    
    21,235,940
    
    
    
    18,519,219Payments of short-term borrowings
    
    
    (22,349,876
    )
    
    
    (18,032,773
    )Principal payments on capital lease obligations
    
    
    (209,640
    )
    
    
    (348,398
    )Net cash (used in) provided by financing activities
    
    
    (1,323,576
    )
    
    
    138,048Effect of exchange rate changes on cash
    
    
    74,733
    
    
    
    1,512Net decrease in cash
    
    
    (777,186
    )
    
    
    (1,292,829
    )Cash at beginning of period
    
    
    1,873,863
    
    
    
    2,900,358Cash at end of period
    
    $
    1,096,677
    
    
    $
    1,607,529Supplemental disclosure of cash flow information:Cash paid for:Interest
    
    $
    254,152
    
    
    $
    363,311Income taxes
    
    $
    63,763
    
    
    $
    19,607Supplemental disclosure of noncash investing
and financing activities:Capital lease additions
    
    $
    33,568
    
    
    $
    391,900
 See Accompanying Notes to Consolidated Financial Statements.
  7




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MISONIX, INC. and Subsidiaries
 
 Notes to Consolidated Financial Statements
  Basis of Presentation
      March 31,
    
    
    June 30,2009
    
    
    2008Inventory
    
    $
    622,372
    
    
    $
    745,473Property, plant and equipment  net
    
    
    25,255
    
    
    
    27,494Total assets held for sale
    
    $
    647,627
    
    
    $
    772,967
 For the nine months ended
    
    
    For the three months endedMarch 31,
    
    
    March 31,2009
    
    
    2008
    
    
    2009
    
    
    2008Revenues
    
    $
    3,287,012
    
    
    $
    3,346,666
    
    
    $
    1,068,896
    
    
    $
    1,102,405Income from
discontinued operations, before tax
    
    
    695,544
    
    
    
    633,366
    
    
    
    259,689
    
    
    
    145,620Income tax expense
    
    
    323,672
    
    
    
    175,442
    
    
    
    175,442
    
    
    
    35,255Income from
discontinued
operations, net of
tax
    
    $
    371,872
    
    
    $
    457,924
    
    
    $
    137,382
    
    
    $
    110,365
  8




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MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
 Net Income (Loss) Per Share of Common Stock
   For the nine months ended
    
    
    For the three months endedMarch 31,
    
    
    March 31,2009
    
    
    2008
    
    
    2009
    
    
    2008Basic shares
    
    
    7,001,369
    
    
    
    7,001,369
    
    
    
    7,001,369
    
    
    
    7,001,369Dilutive effect of stock options
    
    
    14,930
    
    
    
    
    
    
    
    
    
    
    
    Diluted shares
    
    
    7,016,299
    
    
    
    7,001,369
    
    
    
    7,001,369
    
    
    
    7,001,369
   Comprehensive (Loss) Income
  Stock-Based Compensation
    9




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MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
   For the nine months endedMarch 31,2009
    
    
    2008Risk-free interest rate
    
    
    3.1
    %
    
    
    4.3
    %Expected option life in years
    
    
    6.5
    
    
    
    6.5Expected stock price volatility
    
    
    54.5
    %
    
    
    54.7
    %Expected dividend yield
    
    
    0
    %
    
    
    0
    %Weighted-average fair value of options granted
    
    $
    1.14
    
    
    $
    2.51
   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
    
    
    300,278
    
    
    
    4.99Outstanding as of March 31, 2009
    
    
    1,825,213
    
    
    
    5.22
    
    
    
    5.6
    
    
    $
    2,894Exercisable and vested at March 31, 2009
    
    
    1,395,960
    
    
    
    5.94
    
    
    
    4.5
    
    
    $
    Available for grant at March 31, 2009
    
    
    299,356
 (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 March 31, 2009 or if exercised, the
exercise dates, exceeds the exercise prices of the respective options.  10




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##### Table of Contents



MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
 Focus Surgery, Inc.
    Income Taxes
     11




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##### Table of Contents



MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
 Inventories
  March 31,
    
    
    June 30,2009
    
    
    2008Raw materials
    
    $
    6,321,920
    
    
    $
    5,917,331Work-in-process
    
    
    1,948,774
    
    
    
    3,060,547Finished goods
    
    
    3,473,403
    
    
    
    4,870,58711,744,097
    
    
    
    13,848,465Less valuation reserve
    
    
    1,727,031
    
    
    
    1,942,374$
    10,017,066
    
    
    $
    11,906,091
 Accrued Expenses and Other Current Liabilities
  March 31,
    
    
    June 30,2009
    
    
    2008Customer deposits and deferred contracts
    
    $
    929,552
    
    
    $
    1,765,827Accrued payroll and vacation
    
    
    566,761
    
    
    
    945,933Accrued VAT and sales tax
    
    
    303,945
    
    
    
    359,172Accrued commissions and bonuses
    
    
    327,011
    
    
    
    675,069Accrued professional fees
    
    
    114,244
    
    
    
    43,352Litigation
    
    
    426,000
    
    
    
    324,000Other
    
    
    201,291
    
    
    
    646,762$
    2,868,804
    
    
    $
    4,760,115
 Revolving Credit Facilities
   12




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##### Table of Contents



MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
   1 2
  Commitments and Contingencies
    13




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##### Table of Contents



MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
 Business Segments
 ®
   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
    
    $
    17,241,229
    
    
    $
    12,084,118
    
    
    $
    
    
    
    $
    29,325,347Cost of goods sold
    
    
    9,386,652
    
    
    
    8,087,414
    
    
    
    
    
    
    
    17,474,066Gross profit
    
    
    7,854,577
    
    
    
    3,996,704
    
    
    
    
    
    
    
    11,851,281Selling expenses
    
    
    3,270,353
    
    
    
    1,158,942
    
    
    
    
    
    
    
    4,429,295Research and
development expenses
    
    
    1,384,187
    
    
    
    512,183
    
    
    
    
    
    
    
    1,896,370Litigation settlement
expenses
    
    
    102,000
    
    
    
    
    
    
    
    
    
    
    
    102,000General and
administrative expenses
    
    
    
    
    
    
    
    
    
    
    6,949,336
    
    
    
    6,949,336Total operating expenses
    
    
    4,756,540
    
    
    
    1,671,125
    
    
    
    6,949,336
    
    
    
    13,377,001Operating income (loss)
from continuing
operations
    
    $
    3,098,037
    
    
    $
    2,325,579
    
    
    $
    (6,949,336
    )
    
    $
    (1,525,720
    )Income net of tax from
discontinued operations
    
    $
    
    
    
    $
    371,872
    
    
    $
    
    
    
    $
    371,872
  Medical Device
    
    
    Laboratory and
    
    
    Corporate andProducts
    
    
    Scientific Products
    
    
    Unallocated
    
    
    TotalNet sales
    
    $
    17,854,832
    
    
    $
    12,733,818
    
    
    $
    
    
    
    $
    30,588,650Cost of goods sold
    
    
    9,053,042
    
    
    
    7,956,926
    
    
    
    
    
    
    
    17,009,968Gross profit
    
    
    8,801,790
    
    
    
    4,776,892
    
    
    
    
    
    
    
    13,578,682Selling expenses
    
    
    3,566,860
    
    
    
    1,706,665
    
    
    
    
    
    
    
    5,273,525Research and development
expenses
    
    
    1,569,483
    
    
    
    606,230
    
    
    
    
    
    
    
    2,175,713Litigation settlement expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    General and administrative
expenses
    
    
    
    
    
    
    
    
    
    
    7,596,223
    
    
    
    7,596,223Total operating expenses
    
    
    5,136,343
    
    
    
    2,312,895
    
    
    
    7,596,223
    
    
    
    15,045,461Operating income (loss) from
continuing operations
    
    $
    3,665,447
    
    
    $
    2,463,997
    
    
    $
    (7,596,223
    )
    
    $
    (1,466,779
    )Income net of tax from
discontinued operations
    
    $
    
    
    
    $
    457,924
    
    
    $
    
    
    
    $
    457,924
  15




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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
    
    $
    4,841,787
    
    
    $
    3,205,264
    
    
    $
    
    
    
    $
    8,047,051Cost of goods sold
    
    
    2,634,870
    
    
    
    2,108,163
    
    
    
    
    
    
    
    4,743,033Gross profit
    
    
    2,206,917
    
    
    
    1,097,101
    
    
    
    
    
    
    
    3,304,018Selling expenses
    
    
    984,929
    
    
    
    218,892
    
    
    
    
    
    
    
    1,203,821Research and development
expenses
    
    
    417,527
    
    
    
    156,654
    
    
    
    
    
    
    
    574,181Litigation settlement expenses
    
    
    2,000
    
    
    
    
    
    
    
    
    
    
    
    2,000General and administrative
expenses
    
    
    
    
    
    
    
    
    
    
    2,098,672
    
    
    
    2,098,672Total operating expenses
    
    
    1,404,456
    
    
    
    375,546
    
    
    
    2,098,672
    
    
    
    3,878,674Operating income (loss) from
continuing operations
    
    $
    802,461
    
    
    $
    721,555
    
    
    $
    (2,098,672
    )
    
    $
    (574,656
    )Income from discontinued
operations
    
    $
    
    
    
    $
    137,382
    
    
    $
    
    
    
    $
    137,382
  Medical Device
    
    
    Laboratory and
    
    
    Corporate andProducts
    
    
    Scientific Products
    
    
    Unallocated
    
    
    TotalNet sales
    
    $
    6,518,512
    
    
    $
    4,182,109
    
    
    $
    
    
    
    $
    10,700,621Cost of goods sold
    
    
    3,389,720
    
    
    
    2,754,003
    
    
    
    
    
    
    
    6,143,723Gross profit
    
    
    3,128,792
    
    
    
    1,428,106
    
    
    
    
    
    
    
    4,556,898Selling expenses
    
    
    1,271,232
    
    
    
    612,716
    
    
    
    
    
    
    
    1,883,948Research and development
expenses
    
    
    450,418
    
    
    
    202,954
    
    
    
    
    
    
    
    653,372Litigation settlement expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    General and administrative
expenses
    
    
    
    
    
    
    
    
    
    
    2,470,147
    
    
    
    2,470,147Total operating expenses
    
    
    1,721,650
    
    
    
    815,670
    
    
    
    2,470,147
    
    
    
    5,007,467Operating income (loss) from
continuing operations
    
    $
    1,407,142
    
    
    $
    612,436
    
    
    $
    (2,470,147
    )
    
    $
    (450,569
    )Income from discontinued
operations
    
    $
    
    
    
    $
    110,365
    
    
    $
    
    
    
    $
    110,365
  16




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##### Table of Contents



MISONIX, INC. and Subsidiaries
Notes to Consolidated Financial Statements
  Nine months ended March 31,
    
    
    Three months ended March 31,2009
    
    
    2008
    
    
    2009
    
    
    2008United States
    
    $
    15,416,781
    
    
    $
    16,079,766
    
    
    $
    4,477,485
    
    
    $
    5,760,773United Kingdom
    
    
    9,508,760
    
    
    
    10,544,091
    
    
    
    2,365,581
    
    
    
    3,574,689Europe
    
    
    2,382,306
    
    
    
    1,618,057
    
    
    
    593,864
    
    
    
    605,007Asia
    
    
    783,591
    
    
    
    1,012,182
    
    
    
    277,344
    
    
    
    157,146Canada and Mexico
    
    
    518,861
    
    
    
    397,639
    
    
    
    235,882
    
    
    
    194,524Middle East
    
    
    173,209
    
    
    
    176,014
    
    
    
    38,439
    
    
    
    80,317Other
    
    
    541,839
    
    
    
    760,901
    
    
    
    58,456
    
    
    
    328,165$
    29,325,347
    
    
    $
    30,588,650
    
    
    $
    8,047,051
    
    
    $
    10,700,621
 Recent Accounting Pronouncements
      Subsequent Event
   17




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##### Table of Contents



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
  Net sales:
   18




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##### Table of Contents



Gross profit: ®
 Selling expenses:
 General and administrative expenses:
 Research and development expenses:
 Litigation expenses:
 Other income (expense):
 Income taxes:
  19




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##### Table of Contents



Net sales:
  Gross profit:
 Selling expenses:
 General and administrative expenses:
 Research and development expenses:
  20




---



##### Table of Contents



Litigation expenses:
 Other income (expense):
 Income taxes:
 Critical Accounting Policies:
    Recent Accounting Pronouncements
    21




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##### Table of Contents



Forward Looking Statements
  Liquidity and Capital Resources
   22




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##### Table of Contents



Revolving Credit Facilities
   1 2
   23




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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.
   24




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##### Table of Contents



15d-15(f)
 
 Part II  OTHER INFORMATION
 
 Item 1A. Risk Factors.
  
 Item 6. Exhibits.
 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
  25




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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  26




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##### Table of Contents



EXHIBIT INDEX
 ExhibitNumber
    
    
    Description31.1
    
    Rule 13a-14(a)/15d-14(a) Certification31.2
    
    Rule 13a-14(a)/15d-14(a) Certification32.1
    
    Section 1350 Certification of Chief Executive Officer32.2
    
    Section 1350 Certification of Chief Financial Officer
  27