Note 4 - Discontinued Operations

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note 4 – Discontinued Operations

On July 11, 2011, the Company completed the sale of its red blood cell collection operation assets in California and Maine to The American National Red Cross. The financial results related to the red blood cell collection operations are shown as discontinued operations on the statement of operations for the periods ended December 31, 2011 and 2010.

On November 5, 2007, HemaCare Corporation’s wholly owned subsidiary, HemaCare BioScience, Inc. (“HemaBio”), ceased operations. On December 4, 2007, HemaBio executed an Assignment for Benefit of Creditors, under Florida Statutes Section 727.101 et seq. (“Assignment”), assigning all of its assets to an assignee, who was responsible for taking possession of, protecting, preserving, and liquidating such assets and ultimately distributing the proceeds to creditors of HemaBio according to their priorities as established by Florida law.

On January 9, 2012, the Seventeenth Judicial Circuit Court in Broward County, Florida, issued an Order Granting Petition to Approve Final Report, Discharge Assignee, and Close Case, discharging the assignee from duties, liabilities and responsibilities pursuant to the Assignment and Section 727 of the Florida Statutes, and closing the Assignment. At December 31, 2011, the assets remaining in the assignment are shown on the Company’s balance sheet as assets held for sale, and the liabilities as liabilities related to assets held for sale.

The following indicates the assets held for sale and related liabilities as of December 31, 2011 and 2010:

Discontinued Operations

	December 31,		December 31,
	2011		2010
Assets held for sale
Cash and cash equivalents	$	229,000	$	210,000
Inventory		-		40,000
Fixed assets (net of accumulated depreciation of $1,134,000 on December 31, 2010)		-		213,000
	$	229,000	$	463,000
Liabilities related to assets held for sale
Accounts payable	$	792,000	$	774,000
Accrued payroll and payroll taxes		603,000		603,000
Accrued interest		267,000		217,000
Notes payable		500,000		500,000
Total liabilities related to assets held for sale	$	2,162,000	$	2,094,000

The following are the components of income from discontinued operations:

	For the Year Ended December 31,
	2011			2010
Revenue	$	6,152,000		$	15,017,000
Operating expenses		6,120,000			12,939,000
Gross (loss) profit		32,000			2,078,000
General and administrative expenses		1,472,000			302,000
(Loss) income from operations		(1,440,000	)		1,776,000
Gain on sale of assets		2,802,000			-
Income from discontinued operations, net of tax	$	1,362,000		$	1,776,000