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 December 31, 2020 and March 31, 2020 were as follows:
|
|
December 31,
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 December 31, |
|
|
Nine Months Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenues |
|
$ |
– |
|
|
$ |
283,000 |
|
|
$ |
214,000 |
|
|
$ |
741,000 |
|
Cost of revenues |
|
|
– |
|
|
|
126,000 |
|
|
|
53,000 |
|
|
|
391,000 |
|
Selling general and administrative expenses |
|
|
(1,000 |
) |
|
|
31,000 |
|
|
|
38,000 |
|
|
|
98,000 |
|
Income (loss) from discontinued operations before tax |
|
|
1,000 |
|
|
|
126,000 |
|
|
|
123,000 |
|
|
|
252,000 |
|
Gain (loss) on disposal of discontinued operations before income taxes |
|
|
(25,000 |
) |
|
|
– |
|
|
|
770,000 |
|
|
|
– |
|
Total income (loss) from discontinued operations, before tax |
|
|
(24,000 |
) |
|
|
126,000 |
|
|
|
893,000 |
|
|
|
252,000 |
|
Income Tax benefit (expense) |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
Income (loss) from discontinued operations, net of tax |
|
$ |
(24,000 |
) |
|
$ |
126,000 |
|
|
$ |
893,000 |
|
|
$ |
252,000 |
|
|