legal dispute, page-6

Hi Guys/Gals,

If you refer to the final report it states 'No product sales in Australia have been recorded since the distribution agreement with the company's Australian distributor was terminated in November 2005. This dispute is the subject of litigation. The company is advancing negotiations for alternative product distribution in Australia with an outcome expected in the first half of this financial year.'

Also take a look at the segment information which shows $1,301,400 worth of Sales in the US vs only $90,113 in Australia.

In the Commitments & Contingencies section (Note 21) it has under legal claims a bit about the proceedings. Again, it states 'The Directors are of the opinion, based on legal advice, that the action will be successful and no provision has been made for non-recovery of the good or the debt in the financial statements.'
The ex-distributor has made a cross-claim, which the directors believe will not be successful.

It mentions a figure of $750,000 which the ex-distributor is trying to claim. I'm not sure if the original claim by PCC is for the same amount or not. Maybe someone knows more on litigation as it's not my specialty.

Based on this, I'd say PCC may be in for some compensation for lost sales if successful.