Item 2.05 Costs Associated with Exit or Disposal Activities.
As previously reported in its quarterly report on Form 10-Q filed on August 14, 2012, Arrhythmia Research Technology Inc. (the "Company") was pursuing strategic alternatives for its RMDDxUSA Corporation ("WirelessDx") subsidiary. On September 4, 2012, the Company's Board of Directors on the recommendation of management authorized the discontinuance of operations and disposition of the assets of WirelessDx.
The expenses and charges related to the termination of WirelessDx operations and its liquidation are estimated to be $2.75 million, comprised of the following major components: (i) $0.9 million related to the impairment of fixed assets, net of liquidation proceeds; (ii) $0.5 million related to the early termination of multiple lease contracts; (iii) $1.0 million for a contingent liability of an unmet performance obligation; (iii) $0.35 million in other employee related and one-time expenses associated with the orderly shutdown of the monitoring operation. Management expects the majority of the assets to be sold within the next 60 days.

Item 2.06 Material Impairments
As reported above on item 2.05, the Company has impaired the assets of WirelessDx by $0.9 million to the expected net proceeds from the sale of the assets. The value is an estimate and could differ from the final salvage value of assets.