Escalon Medical Corp. reported consolidated earnings results for the fourth quarter and year ended June 30, 2009. For the quarter, the company reported product revenue increased 2.0% to $8,564,000, compared with $7,566,000 reported in the same period last fiscal year. Product revenues were driven by increased sales related to the acquisition of JAS Diagnostics and Biocode Hycel, offset by decreases at its Sonomed unit. For the fourth quarter of fiscal 2009, the company reported a net loss of $11,104,000 or $1.55 per diluted share, which includes the goodwill impairment of $9,526,000, compared with net loss of $11,649,000 or $1.82 per diluted share, in the fourth quarter of fiscal 2008. For the year, the company reported net loss of $12,965,000 or $1.82 per diluted share on net revenues of $34,601,000 compared to net loss of $15,060,000 or $2.36 per diluted share on net revenues of $30,210,000 for the last year. Loss from operations was $12,794,000 compared to $15,125,000 and loss before taxes was $12,965,000 compared to $14,925,000 reported for the last year. The net loss of 2009 includes a non-cash goodwill impairment of $9,526,000, or $1.33 per share. Non-GAAP adjusted loss was $2,391,410 or $0.34 per diluted share compared to $4,655,720 or $0.73 per diluted share for the last year. The company reported goodwill impairment of $9,526,000 for the fourth quarter of 2009.

Escalon Medical Corp. filed its 10-K on October 13, 2009 for the period ending June 30, 2009. In this report its auditor, Mayer Hoffman McCann P.C., gave an unqualified opinion expressing doubt that the company can continue as a going concern.

Escalon Medical Corp. on October 13, 2009 announced that its financial statements for the fiscal year ended June 30, 2009, included in the Annual Report on Form 10-K, filed with the Securities and Exchange Commission on October 13, 2009, contain a going concern qualification from its independent registered public accounting firm. This announcement is being made in compliance with NASDAQ Marketplace Rule 4350(b) (1) (B), which requires separate disclosure of a recent audit opinion that contains a going concern qualification. The company added that is looking to utilize strategic partnerships to help finance its development programs and is also seeking acquisitions to further diversify its product line to achieve critical mass in sales and take better advantage of the Company’s distribution capabilities, although such partnerships or acquisitions may not occur.