Business Segments

12 Months Ended

Aug. 31, 2014

Segment Reporting [Abstract]

Business Segments

NOTE 13 – BUSINESS SEGMENTS

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

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.

Our Medical Products and Technologies segment will consist of the products of Advanced Medical Products and Technologies and future acquisitions.

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 as of August 31, 2014.

As of August 31, 2014
	Personal Care		Medical Device			Med. Products		Corporate
	Segment		Segment			Segment		Overhead		Totals
	(Unaudited)		(Unaudited)			(Unaudited)		(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	9,336	$	(110	)	$	1,000	$	7,278	$	17,504
Accounts receivable (net)		213,399		—			—		—		213,399
Inventory		—		31,271			—		—		31,271
Prepaid expenses and other current assets		—		—			—		9,307		9,307
Prepaid commissions and finders' fees		—		—			—		3,152		3,152
Total current assets		222,735		31,161			1,000		19,737		274,633
Property and equipment (net)		21,287		17,893			—		787		39,967
Deposits and other assets		2,082		12,500			—		—		14,582
Goodwill		564,075		1,217,704			—		—		1,781,779
Patents, registrations (net of amortization)		—		24,497			—		—		24,497
Total assets	$	810,179	$	1,303,755		$	1,000	$	20,524	$	2,135,458

Below are the segment assets as of August 31, 2013.

As of August 31, 2013
	Personal Care		Medical Device			Med. Products		Corporate
	Segment		Segment			Segment		Overhead		Totals
ASSETS
Current Assets:
Cash and cash equivalents	$	41,985	$	(2,742	)	$	—	$	213	$	39,456
Accounts receivable (net)		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		62,354			—		1,488		218,222
Property and equipment (net)		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	$	1,342,189		$	—	$	2,610	$	2,033,850

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

For the Year Ended August 31, 2014
		Personal Care			Medical Device			Medical Products			Corporate
		Segment			Segment			Segment			Overhead			Totals
Revenues	$	3,677,475		$	—		$	—		$	—		$	3,677,475
Cost of revenues		3,016,221			46,843			—			—			3,063,064
Gross profit		661,254			(46,843	)		—			—			614,411
Operating expenses:
General and administrative		487,509			25,371			329			620,222			1,133,431
Research and development expense		—			30,000			—			—			30,000
Depreciation and amortization		12,793			9,691			—			335			22,819
Total operating expenses		500,302			65,062			329			620,557			1,186,250
Loss from operations		160,952			(111,905	)		(329	)		(620,557	)		(571,839	)
Other income (expense):
Interest and finance charges		(232,573	)		(11,337	)		—			(561,708	)		(805,618	)
Other income (expenses)		73,282			66,049			—			—			139,331
Total other income (expense)		(188,039	)		51,573			—			(699,266	)		(835,732	)
Loss from operations	$	(27,087	)	$	(60,332	)	$	(329	)	$	(1,319,823	)	$	(1,407,571	)

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

For the Year Ended August 31, 2013
		Personal Care			Medical Device			Medical Products		Corporate
		Segment			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			49,431			—		231,653			329,523
Depreciation and amortization		1,049			4,048			—		358			5,455
Total operating expenses		49,488			53,479			—		232,011			334,978
Loss from operations		9,052			(63,472	)		—		(232,011	)		(286,431	)
Other income (expense):
Interest and finance charges		(10,000	)		(1,877	)		—		(22,304	)		(34,181	)
Other income (expenses)		—			126			—		3,364			3,490
Total other income (expense)		(10,000	)		(1,751	)		—		(355,133	)		(366,884	)
Loss from operations	$	(948	)	$	(65,223	)	$	—	$	(587,144	)	$	(653,315	)