Quarterly report pursuant to Section 13 or 15(d)

4. Disposition of Latin American Operations (Tables)

v3.6.0.2
4. Disposition of Latin American Operations (Tables)
9 Months Ended
Dec. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of proceeds from disposition
Cash received on October 27, 2016   $ 18,000,000  
Cash held in escrow until delivery of equipment     1,500,000  
Face value of variable consideration ($250,000 per year for ten years)     2,500,000  
Total proceeds from sale     22,000,000  
Transaction costs     556,000  
Total proceeds, net of transaction costs     21,444,000  
Discount on variable consideration (using a 7.5% discount rate)     752,000  
Total proceeds, net of discount   $ 20,692,000  
Allocation of proceeds
Services under the Technical Services Arrangement   $ 708,000  
Production equipment to be manufactured     497,000  
Intellectual property and territory rights     19,487,000  
Total proceeds   $ 20,692,000  
Schedule of discontinued assets and liabilities
   

December 31,

2016

   

March 31,

2016

 
Assets                
Accounts receivable (net)   $     $ 766,000  
Inventories           45,000  
Total current assets of discontinued operations   $     $ 811,000  
                 
Liabilities                
Deferred Revenue   $     $ 300,000  
Total current liabilities of discontinued operations   $     $ 300,000  
                 
Deferred Revenue, less current portion   $     $ 112,000  
Total Long-term liabilities of discontinued operations   $     $ 112,000  
Schedule of income from discontinued operations
   

Three Months Ended

December 31,

   

Nine Months Ended

December 31,

 
    2016     2015     2016     2015  
Revenues   $ 621,000     $ 1,336,000     $ 3,105,000     $ 4,760,000  
Cost of Revenues     62,000       271,000       561,000       954,000  
Income from discontinued operations before tax     559,000       1,065,000       2,544,000       3,806,000  
Gain on disposal of discontinued operations before income taxes     19,487,000             19,487,000        
Total income from discontinued operations, before tax     20,046,000       1,065,000       22,031,000       3,806,000  
Income Tax benefit (expense)     (4,581,000 )           (4,581,000 )      
Income from discontinued operations, net of tax   $ 15,465,000     $ 1,065,000     $ 17,450,000     $ 3,806,000