Discontinued Operations

3 Months Ended

Mar. 31, 2015

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

Note 4 – Discontinued Operations

In 2013, the Company committed to a plan to divest of or close certain sleep diagnostic and sleep therapy locations. The decision was based on a combination of the financial performance of the facilities and the shift in focus to surgical hospitals. As a result of the pending closure or sale of these locations, the related assets, liabilities, results of operations and cash flows were classified as discontinued operations which were acquired by the Company in the reverse acquisition.

Under this plan, from July 2013 to October 2013, the Company closed or sold 24 sleep diagnostic locations including both IDTF and contracted locations in Georgia, Iowa, Kansas, Missouri, Nevada, Oklahoma and Texas and 5 sleep therapy locations in Iowa, Kansas, Nevada, Oklahoma and Texas.

In 2013, the Company recorded an initial special charge liability of $475,570 related to the estimated closing costs resulting from the plan to sell or close the sleep diagnostic and therapy locations. For the three month period ended March 31, 2015, the activity in the accruals for restructuring charges established for lease termination costs were as follows:

	Lease Termination Cost
Balance at December 31, 2014	$	110,421
Adjustments		(10,421	)
Cash payments		(30,000	)
Balance at March 31, 2015	$	70,000

Adjustments to the special charge liability include changes to estimated settlements or other changes to the liabilities. Additional charges or adjustments may be recorded in future periods dependent upon the Company’s ability to sub-lease or otherwise mitigate future lease costs at closed facilities.

The operating results of the discontinued sleep diagnostic and therapy locations and the Company’s other discontinued operations for the three month periods ended March 31, 2015 and 2014 are summarized below:

	2015			2014
Revenue	$	—		$	123,729
Net loss before taxes	$	(86,078	)	$	(503,747	)
Income tax benefit		—			191,424
Net loss from discontinued operations, net of tax	$	(86,078	)	$	(312,323	)

The balance sheet items for discontinued operations are summarized below:

	March 31, 2015		December 31, 2014
Cash and cash equivalents	$	9,439	$	8,148
Other current assets		291,412		334,293
Total current assets		300,851		342,441
Fixed assets, net		100,475		165,285
Total assets	$	401,326	$	507,726
Payables and accrued liabilities	$	780,844	$	839,791
Total liabilities	$	780,844	$	839,791