Unformatted text preview: issuing replacement shields. The new shields will not be distributed until the next fiscal year. The company has been notified by a competitor that one of Camo Max's camouflage designs violates a copyright held by the competitor. The competitor is asking for a $250,000 paid up license to the use the design. Camo Max disagrees, but believes that it is reasonably possible the competitor will fill a copyright infringement action. Subsequent to year end (but before preparing financial statements), an employee was seriously injured by a fabric cutting machine. The company has agreed to a large financial settlement with the employee. This payment will eliminate any hope of profitability during the next several years....
View Full Document
- Spring '11
- Accounting, Injury, Camo Max, defective face shields