Quarterly report pursuant to Section 13 or 15(d)

4. Discontinued Operations: Sale of Assets to Infinity Labs SD, Inc. (Tables)

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4. Discontinued Operations: Sale of Assets to Infinity Labs SD, Inc. (Tables)
6 Months Ended
Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of allocation of sale price

Proceeds were allocated to the components of the sale based upon their relative selling prices are as follows:

 

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 September 30, 2020 and March 31, 2020 were as follows:

 

   

September 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 the Micromed business included in discontinued operations is summarized as follows:

 

    Three Months Ended September 30,     Six Months Ended September 30  
    2020     2019     2020     2019  
Revenues   $ 2,000     $ 241,000     $ 214,000     $ 458,000  
Cost of revenues           122,000       53,000       265,000  
Selling general and administrative expenses     33,000       34,000       39,000       67,000  
Income (loss) from discontinued operations before tax     (31,000 )     85,000       122,000       126,000  
Gain on disposal of discontinued operations before income taxes                 795,000        
Total income (loss) from discontinued operations, before tax     (31,000 )     85,000       917,000       126,000  
Income Tax benefit (expense)                        
Income (loss) from discontinued operations, net of tax   $ (31,000 )   $ 85,000     $ 917,000     $ 126,000