On August 6 , 2008 , the Company signed an agreement to settle litigation with its former insurance broker . Under the terms of the agreement , Media Sciences received a one-time payment on that date of $ 1,500,000 . The settlement will be recorded as a reduction to operating expense during the period in which it was received ; the Company 's fiscal first quarter of 2009 , ending September 30 , 2008 . The settlement received represents a recovery of legal fees incurred to pursue the action and a partial recovery of product warranty expense the company incurred during its fiscal 2002 year .