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19. Subsequent events
3 Months Ended
Mar. 31, 2014
Subsequent Events [Abstract]  
19. Subsequent events

19. Subsequent events

 

St. Clair aftercare

The Company had a plan to sell the St. Clair aftercare program during or after the three month period ended March 31, 2014.

 

The sale of the aftercare program occurred on May 5, 2014 to Edgewood Health Network Inc. for proceeds of $40,000 plus the return of prepaid deposits relating to rent. Edgewood is taking over liability for the remainder of the lease and responsibility for 3 full time staff and two contract employees.

 

This disposal allows the company to reduce overall costs and focus on the in-patient program in Bala. The provision of services at the St. Clair location will continue exactly as they have under the Greenestone ownership and in-patient and out-patient programs will continue to refer to each other as they have in the past. Revenue from the aftercare program represents less than 10% of the company’s overall revenue.

 

The company has applied an early adoption of FASB Accounting Standards Update 2014-08. Management has concluded that the disposal does not represent a significant strategic shift and will not have a major effect on the company’s operations and financial results. Therefore, it does not meet the requirement to be shown as discontinued operation that would require separate disclosure.