Quarterly report pursuant to Section 13 or 15(d)

DISCONTINUED OPERATIONS

v2.4.0.8
DISCONTINUED OPERATIONS
 6 Months Ended
Mar. 31, 2014
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.
 
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. All revenues and operating expenses under this management agreement would belong to Compass. 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
March 31,
 
 
 
2014
 
2013
 
Neuro-Therapy Clinic
 
 
 
 
 
 
 
Revenues
 
$
-
 
$
-
 
Expenses
 
 
(300)
 
 
1,100
 
Operating Gain (Loss) before taxes
 
$
300
 
$
(1,100)
 
Taxes
 
 
-
 
 
-
 
Net Gain (Loss)
 
$
300
 
$
(1,100)
 
  
 
 
Six Months ended
March 31,
 
 
 
2014
 
2013
 
Neuro-Therapy Clinic
 
 
 
 
 
 
 
Revenues
 
$
-
 
$
-
 
Expenses
 
 
3,300
 
 
13,300
 
Operating Loss before taxes
 
$
(3,300)
 
$
(13,300)
 
Taxes
 
 
-
 
 
-
 
Net Loss
 
$
(3,300)
 
$
(13,300)
 
 
The assets and liabilities of NTC are as follows:
 
 
 
As at March 31,
 
(Audited) 
As at September 30,
 
 
 
2014
 
2013
 
ASSETS:
 
 
 
 
 
 
 
Cash
 
$
-
 
$
-
 
Account Receivable
 
 
-
 
 
-
 
Prepaid Expenses
 
 
-
 
 
-
 
Security Deposit
 
 
-
 
 
-
 
Assets of Discontinued Operations
 
$
-
 
$
-
 
 
 
 
 
 
 
 
 
LIABILITIES:
 
 
 
 
 
 
 
Accounts Payable
 
$
88,500
 
$
88,500
 
Accrued Payroll Liabilities
 
 
110,200
 
 
130,000
 
Note Payable (see Note 8)
 
 
33,600
 
 
50,000
 
Liabilities of Discontinued Operations
 
$
232,300
 
$
268,500