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 |
|
|
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 |
|
|