Business Segments

12 Months Ended

Aug. 31, 2013

Segment Reporting [Abstract]

Business Segments

NOTE 17 – BUSINESS SEGMENTS

We identify our reportable segments based on our management structure, financial data and market. We have identified two business segments: Personal Care Services and Medical Device Manufacturing.

Our Personal Care Service segment consists of the services of Angels of Mercy, Inc. This segment provides non-medical, Personal Care Attendant (PCA) services, Supervised Independent Living (SIL), Long-Term Senior Care, and other approved programs performed by a trained caregiver that will meet the health service needs of beneficiaries whose disabilities preclude the performance of certain independent living skills related to the activities of daily living (ADL).

Our Medical Device Manufacturing segment consists of the products of Dotolo Research Corporation. This segment designs, develops, manufactures and distributes the Toxygen hardware system with disposable speculums and medical grade tubing.

The accounting policies of the segments are the same as those described, or referred to, in Note 2 - Summary of Significant Accounting Policies. Assets and related depreciation expense in the column labeled “Corporate Overhead” pertain to capital assets maintained at the corporate level. Segment loss from operations in the “Corporate Overhead” column contains corporate related expenses not allocable to the operating segments. Intercompany transactions between operating segments were immaterial in all periods presented.

Below are the segment assets for the periods presented.

	As of August 31, 2013
	Personal Care		Medical Device			Corporate
	Segment		Segment			Overhead		Totals
ASSETS
Current Assets:
Cash and cash equivalents	$	41,985	$	(2,753	)	$	224	$	39,456
Accounts receivable (net of allowance of $3,000)		104,544		3,775			—		108,319
Inventory		—		31,271			—		31,271
Prepaid expenses and other current assets		7,851		30,050			1,275		39,176
Total current assets		154,380		62,343			1,499		218,222
Property and equipment (net of accumulated depreciation)		55,950		21,461			1,122		78,533
Deposits and other assets		—		10,050			—		10,050
Goodwill		478,721		1,217,704			—		1,696,425
Patents, registrations (net of amortization)		—		30,620			—		30,620
Total assets	$	689,051	$	1,342,178		$	2,621	$	2,033,850

	As of August 31, 2012
	Personal Care		Medical Device		Corporate
	Segment		Segment		Overhead		Totals
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	25	$	1,906	$	1,931
Accounts receivable (net of allowance of $3,000)		—		—		—		—
Inventory		—		—		—		—
Prepaid expenses and other current assets		—		—		2,993		2,993
Total current assets		—		25		4,899		4,924
Property and equipment (net of accumulated depreciation)		—		—		1,481		1,481
Deposits and other assets		—		—		—		—
Goodwill		—		—		—		—
Patents, registrations (net of amortization)		—		—		—		—
Total assets	$	—	$	25	$	6,380	$	6,405

Below are the statements of operations for the reporting periods presented.

	For the Year Ended August 31, 2013
		Personal Care			Medical Device			Corporate
		Segment			Segment			Overhead			Totals
Revenues	$	215,248		$	28,998		$	—		$	244,246
Cost of revenues		156,708			38,991			—			195,699
Gross profit		58,540			(9,993	)		—			48,547
Operating expenses:
General and administrative		48,439			49,575			231,653			329,667
Depreciation and amortization		1,049			4,048			358			5,455
Total operating expenses		49,488			53,623			232,011			335,122
Loss from operations		9,052			(63,616	)		(232,011	)		(286,575	)
Other income (expense):
Interest and finance charges		(10,000	)		(1,877	)		(22,304	)		(34,181	)
Interest and finance charges - related parties		—			—			(152,087	)		(152,087	)
Loss on conversion of notes payable - related parties		—			—			(10,242	)		(10,242	)
Induced conversion expense		—			—			—			—
Loss on disposal of assets		—			—			—			—
Acquisition costs		—						(173,864	)		(173,864	)
Other income (expenses)		—			126			3,364			3,490
Total other income (expense)		(10,000	)		(1,751	)		(355,133	)		(366,884	)
Loss from operations	$	(948	)	$	(65,367	)	$	(587,144	)	$	(653,459	)

	For the Year Ended August 31, 2012
	Personal Care		Medical Device			Corporate
	Segment		Segment			Overhead			Totals
Revenues	$	—	$	—		$	—		$	—
		—
Cost of revenues				—			—			—
Gross profit		—		—			—			—
Operating expenses:
General and administrative		—		144			130,625			130,769
Depreciation and amortization		—		—			450			450
Total operating expenses		—		144			131,075			131,219
Loss from operations		—		(144	)		(131,075	)		(131,219	)
Other income (expense):
Interest and finance charges		—		—			(10,768	)		(10,768	)
Interest and finance charges - related parties		—		—			(25,312	)		(25,312	)
Loss on conversion of notes payable - related parties		—		—			(92,758	)		(92,758	)
Induced conversion expense		—		—			(25,402	)		(25,402	)
Loss on disposal of assets		—		—			(110	)		(110	)
Acquisition costs		—					—			—
Other income (expenses)		—		—			—			—
Total other income (expense)		—		—			(154,350	)		(154,350	)
Loss from operations	$	—	$	(144	)	$	(285,425	)	$	(285,569	)