UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED)
October 25, 2006 (October 23, 2006)
Commission File No. 000-22390
SHARPS COMPLIANCE CORP.
(Exact Name Of Registrant As Specified In Its Charter)
Delaware 74-2657168
(State Or Other Jurisdiction Of (IRS Employer
Incorporation Or Organization) Identification No.)
9350 Kirby Drive, Suite 300
Houston, Texas 77054
(Address Of Principal Executive Offices)
Registrant's Telephone Number, Including Area Code)
713-432-0300
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
|_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
================================================================================
Item 8.01 Other Events.
During September and October 2003, the Company secured judgments
against Ameritech Environmental, Inc. ("Ameritech") totaling $176,958 related to
the non-payment by Ameritech for incineration services provided by the Company
in 2002. In November 2003, Ameritech sold its assets representing collateral for
the judgments to MedSolutions, Inc. of Dallas, Texas ("MedSolutions"). During
January 2004, the Company secured a Garnishment Order against MedSolutions
whereby MedSolutions was ordered to pay to the Company $170,765, plus interest
at 5%, subject to the terms of the agreement by which MedSolutions purchased the
Ameritech assets. A balloon payment of $137,721 due November 7, 2004, under the
Garnishment Order, was not made by MedSolutions to the Company. This represented
the then outstanding remaining amount due to the Company.
In August 2006, the Company filed an amended suit against Ameritech,
its officers and directors (Jasper S. Howard, Alton H. Howard and Jonathon S.
Howard) alleging fraudulent conveyance, fraud on creditors, civil conspiracy,
breach of court order and conversion.
In October 2006, the Company sold certain assets secured by the above
noted Garnishment Order for $50,000 cash, $17,500 of which was paid to an
attorney under a contingency fee arrangement. In conjunction with this
transaction, the Company and MedSolutions entered into a mutual release whereby
the Company agreed to dismiss MedSolutions from the litigation.
Prior to year ending June 30, 2003, the Company wrote-off all
outstanding amounts due from Ameritech. Any recovery that may be received by the
Company will be reduced by collection-related legal fees computed at thirty-five
percent of any amounts collected plus expenses. Although the Company will
continue to aggressively pursue collection of the remaining outstanding amount
of approximately $90,000 (plus interest and attorney fees), no assurances can be
made regarding ultimate collection.
SIGNATURES
----------
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.
Date: October 25, 2006 SHARPS COMPLIANCE CORP.
By: /s/ David P. Tusa
-----------------------------------------
Executive Vice President, Chief Financial
Officer and Business Development