UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
 
FORM 10-K/A
 
Amendment No. 2
 
ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 
For the fiscal year ended December 31, 2006
 
Commission File No. 000-23016
 
 
MEDIFAST, INC.
 
DELAWARE
  
13-3714405
Incorporation State
  
Tax Identification number
     
11445 CRONHILL DRIVE, OWINGS MILLS, MD
  
21117
Principal Office Address
    
 
Phone (410) 581-8042

 
SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT: NONE
 
SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:
 
COMMON STOCK, PAR VALUE $.001 PER SHARE
 
 
New York Stock Exchange
 
 
 
 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes x   No o
 
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Yes o  No x
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes x   No o
 
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):
 
Large accelerated filer o
 
Accelerated filer  x
 
Non-accelerated filer  o
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o  No x
 
The aggregate market value of the voting common equity held by non-affiliates of the registrant as of June 30, 2006, based upon the closing price of $17.87 per share on the American Stock Exchange on that date, was $208,000,000.
 
As of March 14, 2007, the Registrant had 13,643,998 shares of Common Stock outstanding.
 
 
 
 
Explanatory Note
 
This Amendment No. 2 to our Annual Report on Form 10-K for the fiscal year ended December 31, 2006 is being filed for the sole purpose of updating Item 8, footnote 7, for the estimated future amortization expense on intangible assets pursuant to the restated financial statements filed with the Securities and Exchange Commission on September 6, 2007.
 
Except as discussed above, we have not modified or updated the disclosure presented in the Amendment No. 1 to Form 10-K for fiscal year ended December 31, 2006 filed on September 6, 2007 with the Securities and Exchange Commission. This Form 10-K/A does not reflect events that have occurred after the filing of the Original Annual Report or modify or update disclosures presented in the Original Annual Report affected by subsequent events. Accordingly, this Form 10-K/A should be read in conjunction with our filings made with the Securities and Exchange Commission (“SEC”) subsequent to the date of the filing of the Original Annual Report.
 
In addition, in accordance with applicable SEC rules, this Form 10-K/A includes updated certifications from our Chief Executive Officer and Chief Financial Officer.
 
 
 
 
7. TRADEMARKS AND INTANGIBLES

   
As of December 31, 2006
  
As of December 31, 2005
  
   
(Restated)
  
(Restated)
  
(Restated)
  
(Restated)
  
   
Gross Carrying
  
Accumulated
  
Gross Carrying
  
Accumulated
  
   
Amount
  
Amortization
  
Amount
  
Amortization
  
                   
Customer lists
  
$
5,587,000
  
$
1,969,000
  
$
4,356,000
  
$
1,398,000
  
Non-compete agreements
    
840,000
   
840,000
   
840,000
   
566,000
 
Trademarks, patents, and copyrights
                          
finite life
    
1,557,000
   
210,000
   
920,000
   
121,000
 
infinite life
    
909,000
   
-
   
1,059,000
   
-
 
Goodwill
    
-
         
894,000
   
-
 
                           
Total
  
$
8,893,000
  
$
3,019,000
  
$
8,069,000
  
$
2,085,000
  
 
Amortization expense for the years ended December 31, 2006, 2005 and 2004 was as follows:
 
   
(Restated)
  
(Restated)
      
   
2006
  
2005
  
2004
  
Customer lists
  
$
774,000
  
$
1,004,000
  
$
244,000
  
Non-compete agreements
    
273,000
   
369,000
   
162,000
 
Trademarks, patents, and copyrights
    
152,000
   
58,000
   
-
 
                     
Total trademarks and intangibles
  
$
1,199,000
  
$
1,431,000
  
$
406,000
  

On January 17, 2006 the Consumer Choice Systems division of the Company was sold which included the sale of $1,601,000 in gross intangible assets and $265,000 in accumulated amortization.
 
The estimated future amortization expense of trademarks and intangible assets is as follows:

For the years ending December 31,
  
Amount
2007
  
$1,290,000
2008
 
1,265,000
2009
  
1,118,000
2010
  
550,000
2011
  
545,000
 
 
 
 
SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
MEDIFAST, INC.      
(Registrant)      
       
       
/s/ BRADLEY T. MACDONALD      
Bradley T. MacDonald		    
Executive Chairman of the Board      
Dated: November 2, 2007      

Pursuant to the requirements of the Securities Exchange Act of 1934, the following persons on behalf of the Registrant and in the capacities and on the dates indicated have signed this Report below.
 
Name   Title   Date
         
/s/ BRADLEY T. MACDONALD
Bradley T. MacDonald		   Chairman of the Board, Director   November 2, 2007
         
/s/ GEORGE LAVIN
George Lavin
   Director   November 2, 2007
         
/s/ MICHAEL C. MACDONALD
Michael C. MacDonald
   Director   November 2, 2007
         
/s/ MARY T. TRAVIS
Mary T. Travis 
   Director   November 2, 2007
         
/s/ REV. DONALD F. REILLY, OSA
Rev. Donald F. Reilly, OSA 
   Director   November 2, 2007
         
/s/ MICHAEL J. MCDEVITT
Michael J. McDevitt
   Director   November 2, 2007
         
/s/ JOSEPH D. CALDERONE
Joseph D. Calderone
   Director   November 2, 2007
         
/s/ CHARLES P. CONNOLLY
Charles P. Connolly
   Director   November 2, 2007
         
/s/ DENNIS M. MCCARTHY
Dennis M. McCarthy
   Director   November 2, 2007