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DISCONTINUED OPERATIONS
|
12 Months Ended | ||
|---|---|---|---|
|
Sep. 30, 2011
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| DISCONTINUED OPERATIONS |
As
part of the Company’s strategy to evaluate each of its
business segments as separate entities, management noted that the
Direct Sales business segment had incurred operating losses and
declining revenues and did not fit with the Company’s change
in strategic direction. Accordingly, in March 2011, the
Company made the strategic decision to discontinue its Direct Sales
business and product offerings. Prior year financial statements
have been restated to present the Direct Sales business segment as
a discontinued operation.
The
Company initiated shutdown activities in March 2011 and closed the
Direct Sales business segment in May 2011. In
conjunction with the discontinued operations, the Company recorded
the following charges in the year ended September 30,
2011:
·
Employee contract termination charges of $7,083 reflecting the
reduction in force of 7 employees;
·
Non cash impairment charges of $367,588 consisting of the write-off
of net intangible assets;
The
Direct Sales business segment accounted for $1,341,430 and
$3,838,479 of net revenues for the years ended September 30, 2011
and 2010, respectively, which are now included as part of income
(loss) from discontinued component, including disposal costs, in
the accompanying consolidated statements of
operations.
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