Annual report pursuant to Section 13 and 15(d)

3. Discontinued Operations

v3.6.0.2
3. Discontinued Operations
12 Months Ended
Sep. 30, 2016
Notes  
3. Discontinued Operations

3.                   Discontinued Operations

In December 2014, the Company sold substantially all of its customer contracts and equipment leased to customers associated with its CareServices segment.  The sale included all segment assets that generated revenue related to the CareServices segment.  The Company no longer holds any ownership interest in these assets and has ceased incurring costs related to the operations and development of the CareServices segment.  This segment was engaged in the business of developing, distributing and marketing mobile health monitoring and concierge services to distributors and consumers.  The debt secured by the CareServices customer contracts was amended in January 2015, December 2015, July 2016 and subsequent to September 30, 2016, and remains an obligation of the Company (see Notes 9 and 21).  There were no material liabilities of discontinued operations as of September 30, 2016 and 2015.

 

As a result of the sale of the CareServices assets, the Company has reflected this segment as discontinued operations in the consolidated financial statements for the fiscal year 2015.  The following table summarizes certain operating data for discontinued operations for the fiscal years 2016 and 2015:

 

 

 

2016

 

 

2015

 

Revenues

$

-

 

 

$

152,686

 

 

 

 

 

Cost of revenues

 

-

 

 

127,709

 

 

 

 

 

Gross profit

 

-

 

 

24,977

 

 

 

 

 

Selling, general and administrative expenses

 

-

 

 

(211,209

)

 

 

 

 

Loss from discontinued operations

$

-

 

 

 

(186,232

)