Quarterly report pursuant to Section 13 or 15(d)

DISCONTINUED OPERATIONS

v2.4.0.8
DISCONTINUED OPERATIONS
 9 Months Ended
Jun. 30, 2013
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
3.
DISCONTINUED OPERATIONS
 
On September 30, 2012 the Company discontinued its Clinical Services Operation at its wholly-owned subsidiary Neuro Therapy Clinic, Inc. (“NTC”), because the operation had persistent losses which could no longer be supported by the Company. Furthermore, the Company chose to focus its limited cash resources to conduct its clinical trial at Walter Reed National Military Medical Center.
 
As of September 30, 2012 the staff of NTC had departed and the premises were vacated. Prior to the clinic’s closure all patients were sent letters informing them where they could continue their treatment with their usual provider. Two of NTC’s providers joined a nearby psychiatric clinic operated by Compass Health Systems (“Compass”). NTC executed a business associate agreement with Compass to allow the confidential sharing of patient information and to enable the providers to continue to treat their patients. We are in discussion with Compass to manage NTC as part of Compass’ operations with an option to acquire NTC. All revenues and operating expenses under this management agreement would belong to Compass. Furthermore, if Compass exercises their option to acquire NTC, it would be for a nominal sum. All NTC assets and liabilities incurred prior to October 1, 2012 would remain with CNS Response.
 
Summary Financial Data of Discontinued Operations:
 
Revenues, income before income taxes and net loss of NTC which are included in discontinued operations are as follows:
 
 
 
Three Months ended
June 30,
 
 
 
2013
 
2012
 
Neuro-Therapy Clinic
 
 
 
 
 
 
 
Revenues
 
$
-
 
$
163,200
 
Expenses
 
 
1,800
 
 
264,400
 
Operating Loss before taxes
 
$
(1,800)
 
$
(101,200)
 
Taxes
 
 
-
 
 
-
 
Net Loss
 
$
(1,800)
 
$
(101,200)
 
 
 
 
Nine Months ended
June 30,
 
 
 
2013
 
2012
 
Neuro-Therapy Clinic
 
 
 
 
 
 
 
Revenues
 
$
-
 
$
522,300
 
Expenses
 
 
15,200
 
 
851,800
 
Operating Loss before taxes
 
$
(15,200)
 
$
(329,500)
 
Taxes
 
 
-
 
 
-
 
Net Loss
 
$
(15,200)
 
$
(329,500)
 
 
The assets and liabilities of NTC are as follows:
 
 
 
As at June 30,
 
 
 
2013
 
2012
 
ASSETS:
 
 
 
 
 
 
 
Cash
 
$
3,100
 
$
9,500
 
Account Receivable
 
 
-
 
 
24,200
 
Prepaid Expenses
 
 
-
 
 
800
 
Security Deposit
 
 
-
 
 
5,800
 
Assets of Discontinued Operations
 
$
3,100
 
$
40,300
 
LIABILITIES:
 
 
 
 
 
 
 
Accounts Payable
 
$
61,300
 
$
31,400
 
Accrued Payroll Liabilities
 
 
215,800
 
 
154,000
 
Liabilities of Discontinued Operations
 
$
277,100
 
$
185,400