Quarterly report pursuant to Section 13 or 15(d)

5. Discontinued Operations: Sale of Assets (Tables)

v3.20.2
5. Discontinued Operations: Sale of Assets (Tables)
3 Months Ended
Jun. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of allocation of sale price
Customer base   $ 850,000  
Less: Funds remaining in escrow     (60,000 )
Less: Services due from buyer     (100,000 )
Less: Working capital adjustment     (80,000 )
Total proceeds   $ 610,000  
Assets and liabilities of disposal group

The carrying value of the assets and liabilities of discontinued operations on the condensed consolidated balance sheets as of June 30, 2020 and March 31, 2020 were as follows:

 

     

June 30,

2020

     

March 31,

2020

 
Assets                
Accounts receivable (net)   $     $ 89,000  
Inventory           11,000  
Operating lease, right of use           604,000  
Total current assets of discontinued operations   $     $ 704,000  
                 
Liabilities                
Accounts payable   $     $ 18,000  
Operating lease           117,000  
Total current liabilities of discontinued operations   $     $ 135,000  
                 
Operating lease   $     $ 511,000  
Total Long-term liabilities of discontinued operations   $     $ 511,000  

 

The operations of its Micromed business included in discontinued operations as restated is summarized as follows:

 

   

Three Months Ended

June 30, 

 
    2020     2019  
Revenues   $ 212,000     $ 216,000  
Cost of Revenues     53,000       143,000  
Selling, general and administrative expenses     5,000       32,000  
Income from discontinued operations before tax     154,000       41,000  
Gain on disposal of discontinued operations before income taxes     795,000        
Total income from discontinued operations, before tax     949,000       41,000  
Income Tax benefit (expense)            
Income from discontinued operations, net of tax