Annual report pursuant to Section 13 and 15(d)

4. Sale of Assets - Discontinued Operations (Tables)

v3.21.2
4. Sale of Assets - Discontinued Operations (Tables)
 12 Months Ended
Mar. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]  
Components of sale

The proceeds from the sale were allocated to the components of the sale utilizing the residual approach as follows:

 

Total proceeds   $ 1,100,000  
Less - Production equipment     (150,000 )
Residual attributable to the intellectual property and territory rights   $ 950,000  
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 consolidated balance sheets as of March 31, 2021 and March 31, 2020 were as follows:

 

   

March 31,

2021

    

March 31,

2020

  
Assets                
Non-current assets held for sale   $ –     $ 704,000  
                 
Liabilities                
Liabilities associated with assets currently held for sale   $ –     $ 646,000  

  

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

 

    Year ended March 31,  
    2021     2020  
Revenues   $ 214,000     $ 1,008,000  
Cost of revenues     53,000       521,000  
Selling general and administrative expenses     38,000       130,000  
Income from discontinued operations before tax     123,000       357,000  
Gain on disposal of discontinued operations before income taxes     770,000       –  
Total income from discontinued operations, before tax     893,000       357,000  
Income Tax benefit (expense)     (228,000 )     (92,000 )
Income from discontinued operations, net of tax   $ 665,000     $ 265,000