SEGMENT REPORTING AND CONCENTRATIONS

6 Months Ended

Nov. 30, 2011

SEGMENT REPORTING AND CONCENTRATIONS [Abstract]

SEGMENT REPORTING AND CONCENTRATIONS

NOTE D – SEGMENT REPORTING AND CONCENTRATIONS

The Company views its business in two segments – the Equipment segment and the Sales Representation segment.  The Equipment segment is engaged in designing, manufacturing, marketing and supporting EECP® enhanced external counterpulsation systems both domestically and internationally, as well as the marketing of other medical devices.  The Sales Representation segment operates through the VasoHealthcare subsidiary and is currently engaged solely in the execution of the Company's responsibilities under our agreement with GEHC.  The Company evaluates segment performance based on operating income.  Administrative functions such as finance, human resources, and information technology are centralized and related expenses allocated to each segment.  There are no intersegment revenues.  Summary financial information for the segments is set forth below:

	As of or for the three months ended November 30, 2011
	Equipment Segment			Sales Representation Segment			Corporate			Consolidated
Revenues from external customers	$	1,332,961		$	8,620,367		$	-		$	9,953,328
Operating income/(loss)	$	(733,789	)	$	3,463,347		$	(266,945	)	$	2,462,613
Total assets	$	8,179,790		$	15,175,375		$	3,723,104		$	27,078,269
Accounts and other receivables, net	$	1,099,955		$	11,882,164		$	-		$	12,982,119
Deferred commission expense	$	-		$	3,097,173		$	-		$	3,097,173
		As of or for the three months ended November 30, 2010
	Equipment Segment			Sales Representation Segment			Corporate			Consolidated
Revenues from external customers	$	1,789,554		$	2,011,188		$	-		$	3,800,742
Operating income/(loss)	$	177,330		$	(1,270,512	)	$	(59,857	)	$	(1,153,039	)
Total assets	$	3,374,898		$	7,055,400		$	1,075,134		$	11,505,432
Accounts and other receivables, net	$	867,837		$	5,993,415		$	-		$	6,861,252
Deferred commission expense	$	-		$	984,574		$	-		$	984,574
		As of or for the six months ended November 30, 2011
	Equipment Segment			Sales Representation Segment			Corporate			Consolidated
Revenues from external customers	$	2,094,909		$	12,186,855		$	-		$	14,281,764
Operating income/(loss)	$	(1,402,345	)	$	2,739,578		$	(558,107	)	$	779,126
Total assets	$	8,179,790		$	15,175,375		$	3,723,104		$	27,078,269
Accounts and other receivables, net	$	1,099,955		$	11,882,164		$	-		$	12,982,119
Deferred commission expense	$	-		$	3,097,173		$	-		$	3,097,173
		As of or for the six months ended November 30, 2010
	Equipment Segment			Sales Representation Segment			Corporate			Consolidated
Revenues from external customers	$	3,057,965		$	2,018,624		$	-		$	5,076,589
Operating income/(loss)	$	18,821		$	(3,632,752	)	$	(116,301	)	$	(3,730,232	)
Total assets	$	3,374,898		$	7,055,400		$	1,075,134		$	11,505,432
Accounts and other receivables, net	$	867,837		$	5,993,415		$	-		$	6,861,252
Deferred commission expense	$	-		$	984,574		$	-		$	984,574

For the six months ended November 30, 2011 and 2010, GE Healthcare accounted for 85% and 40% of revenue, respectively.  For the three months ended November 30, 2011 and 2010, GE Healthcare accounted for 87% and 53% of revenue, respectively.  Also, GE Healthcare accounted for $11,760,974, or 91%, and $2,990,978, or 74%, of accounts and other receivables at November 30, 2011 and May 31, 2011, respectively.