| 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 |
|
|