Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 25, 2014 | Jun. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'Spine Pain Management, Inc. | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 18,715,882 | ' |
Entity Public Float | ' | ' | $4,990,188 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0001066764 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash | $687,549 | $1,017,755 |
Accounts receivable, net | 2,663,652 | 3,209,191 |
Prepaid expenses | 116,314 | 257,684 |
Other assets | 0 | 55,786 |
Total current assets | 3,467,515 | 4,540,416 |
Accounts receivable, net of allowance for doubtful accounts of $352,615 and $52,628, respectively | 3,642,864 | 3,287,552 |
Intangible assets, net | 197,200 | 215,200 |
Other assets | 15,770 | 10,417 |
Total assets | 7,323,349 | 8,053,585 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 76,381 | 183,950 |
Due to related parties | 164,293 | 352,909 |
Current portion of long-term debt, net | 500,000 | 371,088 |
Total current liabilities | 740,674 | 907,947 |
Long-term debt, including convertible note payable and secured note payable, net | 995,723 | 1,332,365 |
Total liabilities | 1,736,397 | 2,240,312 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Common stock: $0.001 par value, 50,000,000 shares authorized; 18,715,882 and 18,415,882 shares issued and outstanding at December 31, 2013 and 2012, respectively | 18,716 | 18,416 |
Additional paid-in capital | 19,212,669 | 18,813,219 |
Accumulated deficit | -13,644,433 | -13,018,362 |
Total stockholders’ equity | 5,586,952 | 5,813,273 |
Total liabilities and stockholders' equity | $7,323,349 | $8,053,585 |
BALANCE_SHEETS_Parentheticals
BALANCE SHEETS (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for doubtful accounts (in Dollars) | $352,615 | $52,628 |
Common stock: par value (in Dollars per share) | $0.00 | $0.00 |
Common stock: shares authorized | 50,000,000 | 50,000,000 |
Common stock: shares issued | 18,715,882 | 18,415,882 |
Common stock: shares outstanding | 18,715,882 | 18,415,882 |
STATEMENTS_OF_OPERATIONS
STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Net revenue | $3,299,928 | $3,459,231 |
Cost of providing services, including amounts billed by a related party of $719,270 and $761,832 during the years ended December 31, 2013 and 2012, respectively | 1,320,348 | 1,468,731 |
Gross profit | 1,979,580 | 1,990,500 |
Operating, general and administrative expenses | 2,270,230 | 1,898,925 |
Income from operations | -290,650 | 91,575 |
Other income and (expense): | ' | ' |
Other income | 25,562 | 33,436 |
Gain from debt extinguishment | 60,179 | 95,568 |
Interest expense | -421,162 | -324,147 |
Litigation settlement expense | 0 | -326,650 |
Total other income and (expense) | -335,421 | -521,793 |
Net loss | ($626,071) | ($430,218) |
Net loss income per common share: | ' | ' |
Basic (in Dollars per share) | ($0.03) | ($0.02) |
Diluted (in Dollars per share) | ($0.03) | ($0.02) |
Shares used in (loss) income per common share: | ' | ' |
Basic (in Shares) | 18,507,936 | 17,956,615 |
Diluted (in Shares) | 18,507,936 | 17,956,615 |
STATEMENTS_OF_OPERATIONS_Paren
STATEMENTS OF OPERATIONS (Parentheticals) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cost of providing services, related party | $719,270 | $761,832 |
STATEMENTS_OF_CHANGES_IN_STOCK
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Warrants issued with convertible note payable [Member] | Warrants issued with secured note payable [Member] | Total |
Warrants issued with convertible note payable [Member] | Warrants issued with secured note payable [Member] | |||||||
Balances at Dec. 31, 2011 | $17,088 | ' | ' | $16,318,083 | ($12,588,144) | ' | ' | $3,747,027 |
Balances (in Shares) at Dec. 31, 2011 | 17,088,396 | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock for debt conversions | 558 | ' | ' | 1,019,642 | ' | ' | ' | 1,020,200 |
Issuance of common stock for debt conversions (in Shares) | 557,486 | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock for acquisition of assets of Gleric Holdings, LLC (See Note 4) | 170 | ' | ' | 231,030 | ' | ' | ' | 231,200 |
Issuance of common stock for acquisition of assets of Gleric Holdings, LLC (See Note 4) (in Shares) | 170,000 | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock options for compensation of officers and directors | ' | ' | ' | 300,000 | ' | ' | ' | 300,000 |
Issuance of common stock for consulting services | 365 | ' | ' | 358,735 | ' | ' | ' | 359,100 |
Issuance of common stock for consulting services (in Shares) | 365,000 | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock in settlement of legal dispute | 235 | ' | ' | 326,415 | ' | ' | ' | 326,650 |
Issuance of common stock in settlement of legal dispute (in Shares) | 235,000 | ' | ' | ' | ' | ' | ' | ' |
Detachable warrants issued | ' | 46,716 | 212,598 | ' | ' | 46,716 | 212,598 | ' |
Net income (loss) | ' | ' | ' | ' | -430,218 | ' | ' | -430,218 |
Balances at Dec. 31, 2012 | 18,416 | ' | ' | 18,813,219 | -13,018,362 | ' | ' | 5,813,273 |
Balances (in Shares) at Dec. 31, 2012 | 18,415,882 | ' | ' | ' | ' | ' | ' | 18,415,882 |
Issuance of common stock for acquisition of assets of Gleric Holdings, LLC (See Note 4) | ' | ' | ' | ' | ' | ' | ' | 0 |
Issuance of common stock options for compensation of officers and directors | ' | ' | ' | 288,000 | ' | ' | ' | 288,000 |
Issuance of common stock for consulting services | 300 | ' | ' | 95,700 | ' | ' | ' | 96,000 |
Issuance of common stock for consulting services (in Shares) | 300,000 | ' | ' | ' | ' | ' | ' | 300,000 |
Detachable warrants issued | ' | ' | ' | 15,750 | ' | ' | ' | 15,750 |
Net income (loss) | ' | ' | ' | ' | -626,071 | ' | ' | -626,071 |
Balances at Dec. 31, 2013 | $18,716 | ' | ' | $19,212,669 | ($13,644,433) | ' | ' | $5,586,952 |
Balances (in Shares) at Dec. 31, 2013 | 18,715,882 | ' | ' | ' | ' | ' | ' | 18,715,882 |
CONDENSED_STATEMENTS_OF_CASH_F
CONDENSED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities: | ' | ' |
Net loss income | ($626,071) | ($430,218) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Provision for bad debts | 460,000 | 240,000 |
Gain from debt extinguishment | -60,179 | -95,568 |
Interest expense related to warrant amortization | 100,448 | 168,408 |
Accretion of debt discount on long term debt | 113,358 | 41,679 |
Stock based compensation | 516,666 | 474,084 |
Common stock issued in settlement of litigation | 0 | 326,650 |
Depreciation and amortization expense | 22,000 | 10,583 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable, net | -269,774 | -905,627 |
Related party receivable | 0 | 163,703 |
Prepaid expenses and other assets | 8,703 | 26,416 |
Due to related party | -33,616 | 57,810 |
Accounts payable and accrued liabilities | -47,390 | -644,147 |
Net cash provided by ( used) in operating activities | 184,145 | -566,227 |
Cash flows from investing activities: | ' | ' |
Purchase of equipment | -9,351 | -5,000 |
Net cash used in investing activities | -9,351 | -5,000 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of long-term debt and warrants | 0 | 1,550,000 |
Repayments of long-term debt | -350,000 | 0 |
Proceeds from related party notes payable | 0 | 296,300 |
Repayments on related party notes payable | -155,000 | -311,900 |
Net cash (used in) provided by financing activities | -505,000 | 1,534,400 |
Net (decrease) increase in cash and cash equivalents | -330,206 | 963,173 |
Cash and cash equivalents at beginning of period | 1,017,755 | 54,582 |
Cash and cash equivalents at end of period | 687,549 | 1,017,755 |
Supplementary disclosure of cash flow information: | ' | ' |
Interest paid | 207,356 | 114,059 |
Taxes paid | 0 | 0 |
Supplementary disclosure of non-cash investing and financing activities: | ' | ' |
Common stock issued to acquire Gleric Holdings, LLC | 0 | 231,200 |
Common stock issued in conversion of related party payable | $0 | $1,020,200 |
NOTE_1_DESCRIPTION_OF_BUSINESS
NOTE 1. DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure Text Block [Abstract] | ' |
Nature of Operations [Text Block] | ' |
NOTE 1. DESCRIPTION OF BUSINESS | |
Spine Pain Management, Inc., (the “Company,” “we” or “us”) formerly known as Versa Card, Inc., was incorporated in Delaware on March 4, 1998 to acquire interests in various business operations and assist in their development. In November 2009, we changed our name from Versa Card, Inc. to Spine Pain Management, Inc. and our trading symbol from "IGLB" to "SPIN." | |
At the end of December 2008, we began moving forward to launch our new business concept of delivering turnkey solutions to spine surgeons, orthopedic surgeons and other healthcare providers for necessary and appropriate treatment of musculo-skeletal spine injuries. We currently manage six spine injury diagnostic centers within the United States, which are located in Houston, Texas; McAllen, Texas; San Antonio, Texas; Orlando, Florida; Sarasota, Florida; and the Tampa Bay Area of Florida. In March 2013, we ceased managing a center in Jacksonville, Florida when the affiliation with our healthcare provider there ended. We are also evaluating the expansion of our services through additional spine injury diagnostic centers in multiple markets across the United States. | |
We are a medical services and technology company facilitating diagnostic services for patients who have sustained spine injuries resulting from traumatic accidents. We deliver turnkey solutions to spine surgeons, orthopedic surgeons and other healthcare providers that provide necessary and appropriate treatment of musculo-skeletal spine injuries resulting from automobile and work-related accidents. Our management services help reduce the financial burden on healthcare providers that provide patients with early-stage diagnostic testing and non-invasive surgical care, preventing many patients from being unnecessarily delayed or inhibited from obtaining needed treatment. | |
Through our management system, we affiliate with spine surgeons, orthopedic surgeons and other healthcare providers who diagnose and treat patients with musculo-skeletal spine injuries. We assist the centers that provide the spine diagnostic injections and treatment and the doctors are paid a fixed rate for the medical procedures they performed. After a patient is billed for the procedures performed, we take control of the patients’ unpaid bill and oversee collection. In most instances, the patient is a plaintiff in an accident case, where the patient is represented by an attorney. Typically, the defendant (and/or the insurance company of the defendant) in the accident case pays the patient’s bill upon settlement or final judgment of the accident case. The payment to us is made through the attorney of the patient. In most cases, we must agree to the settlement price and the patient must sign off on the settlement. Once we are paid, the patient’s attorney can receive payment for his or her legal fee. | |
The clinic facilities where the spine injury diagnostic centers operate are owned or leased by third parties. We have no ownership interest in these clinic facilities and have no responsibilities towards building or operating the clinic facilities. | |
NOTE_2_GOING_CONCERN_CONSIDERA
NOTE 2. GOING CONCERN CONSIDERATIONS | 12 Months Ended |
Dec. 31, 2013 | |
Going Concern Disclosure [Abstract] | ' |
Going Concern Disclosure [Text Block] | ' |
NOTE 2. GOING CONCERN CONSIDERATIONS | |
Since our inception in 1998, until commencement of our spine injury diagnostic operations in August, 2009, our expenses substantially exceeded our revenue, resulting in continuing losses and an accumulated deficit from operations of $15,004,698 as of December 31, 2009. Since that time, we have been able to reduce our deficit, and our accumulated deficit is $13,644,433 as of December 31, 2013. During the year ended December 31, 2013, we realized net revenue of $3,299,928 and a net loss of $626,071. Successful business operations and our transition to sustained positive cash flows from operations are dependent upon obtaining additional financing and achieving a level of collections adequate to support our cost structure. Considering the nature of our business, we are not generating immediate liquidity and sufficient working capital within a reasonable period of time to fund our planned operations and strategic business plan through December 31, 2013. There can be no assurances that there will be adequate financing available to us. The accompanying financial statements have been prepared assuming that we will continue as a going concern. This basis of accounting contemplates the recovery of our assets and the satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty. | |
NOTE_3_SUMMARY_OF_SIGNIFICANT_
NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Accounting Method | |
Our financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of our financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of our financial position and results of operations. | |
Revenue Recognition | |
Revenues are recognized in accordance with SEC staff accounting bulletin, Topic 13, Revenue Recognition, which specifies that only when persuasive evidence for an arrangement exists; the fee is fixed or determinable; and collection is reasonably assured can revenue be recognized. | |
Persuasive evidence of an arrangement is obtained prior to services being rendered when the patient completes and signs the medical and financial paperwork. Delivery of services is considered to have occurred when medical diagnostic services are provided to the patient. The price and terms for the services are considered fixed and determinable at the time that the medical services are provided and are based upon the type and extent of the services rendered. Our credit policy has been established based upon extensive experience by management in the industry and has been determined to ensure that collectability is reasonably assured. Payment for services are primarily made to us by a third party and the credit policy includes terms of net 240 days for collections; however, collections occur upon settlement or judgment of cases (see Note 5). | |
Fair Value of Financial Instruments | |
Cash, accounts receivable, accounts payable and accrued liabilties, and notes payable as reflected in the financial statements, approximates fair value. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. | |
Cash and Cash Equivalents | |
Cash and cash equivalents consist of liquid investments with original maturities of three months or less. Cash equivalents are stated at cost, which approximates fair value. We maintain cash and cash equivalents in banks which at times may exceed federally insured limits. We have not experienced any losses on these deposits. | |
Intangible Assets | |
Intangible assets acquired are initially recognized at cost. Intangible assets acquired in a business combination are recognized at their estimated fair value at the date of acquisition. | |
Goodwill recognized in a business combination is subjective and represents the value of the excess amount given to the acquired company above the estimated fair market value of the assets on the balance sheet. Each year, during the fourth quarter, the goodwill amount is reviewed to determine if any impairment has occurred. Impairment occurs when the original amount of goodwill exceeds the value of the expected future net cash flows from the business acquired. At December 31, 2013 and 2012, no impairment to the asset was determined to have occurred. | |
Long-Lived Assets | |
We periodically review and evaluate long-lived assets such as intangible assets, when events and circumstances indicate that the carrying amount of these assets may not be recoverable. In performing our review for recoverability, we estimate the future cash flows expected to result from the use of such assets and its eventual disposition. If the sum of the expected undiscounted future operating cash flows is less than the carrying amount of the related assets, an impairment loss is recognized in the statement of operations. Measurement of the impairment loss is based on the excess of the carrying amount of such assets over the fair value calculated using discounted expected future cash flows. | |
Concentrations of Credit Risk | |
Assets that expose us to credit risk consist primarily of cash and accounts receivable. Our accounts receivable are from a diversified customer base and, therefore, we believe the concentration of credit risk is minimal. We evaluate the creditworthiness of customers before any services are provided. We record a discount based on the nature of our business, collection trends, and an assessment of our ability to fully realize amounts billed for services. Additionally, we have established an allowance for doubtful accounts in the amount of $352,615 and $52,628, at December 31, 2013 and 2012, respectively. | |
Stock Based Compensation | |
We account for the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors, including employee stock options, based on estimated fair values. Under authoritative guidance issued by the Financial Accounting Standards Board (“FASB”), companies are required to estimate the fair value or calculated value of share-based payment awards on the date of grant using an option-pricing model. The value of awards that are ultimately expected to vest is recognized as expense over the requisite service periods in our statements of income. We use the Black-Scholes Option Pricing Model to determine the fair-value of stock-based awards. We recognized stock based compensation cost of $516,666 and $474,084 during 2013 and 2012, respectively. | |
Income Taxes | |
We account for income taxes in accordance with the liability method. Under the liability method, deferred assets and liabilities are recognized based upon anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. We establish a valuation allowance to the extent that it is more likely than not that deferred tax assets will not be utilized against future taxable income. | |
Uncertain Tax Positions | |
Accounting Standards Codification “ASC” Topic 740-10-25 defines the minimum threshold a tax position is required to meet before being recognized in the financial statements as “more likely than not” (i.e., a likelihood of occurrence greater than fifty percent). Under ASC Topic 740-10-25, the recognition threshold is met when an entity concludes that a tax position, based solely on its technical merits, is more likely than not to be sustained upon examination by the relevant taxing authority. Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard, or are resolved through negotiation or litigation with the taxing authority, or upon expiration of the statute of limitations. De-recognition of a tax position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more likely than not threshold of being sustained. | |
We are subject to ongoing tax exposures, examinations and assessments in various jurisdictions. Accordingly, we may incur additional tax expense based upon the outcomes of such matters. In addition, when applicable, we will adjust tax expense to reflect our ongoing assessments of such matters which require judgment and can materially increase or decrease our effective rate as well as impact operating results. | |
Under ASC Topic 740-10-25, only the portion of the liability that is expected to be paid within one year is classified as a current liability. As a result, liabilities expected to be resolved without the payment of cash (e.g. resolution due to the expiration of the statute of limitations) or are not expected to be paid within one year are not classified as current. We have recently adopted a policy of recording estimated interest and penalties as income tax expense and tax credits as a reduction in income tax expense. | |
We have not made any provision for federal and state income tax liabilities or interest and penalties that may result from this uncertainty that arose as a result of filing U.S. federal and applicable state tax returns in 2010 related to tax years 2004 to 2009. The number of years with open tax audits varies depending on the tax jurisdiction. Our major taxing jurisdictions include the United States (including applicable states). Because U.S. federal and applicable state tax returns for years 2004 to 2009 were filed in 2010, management believes that all these years of returns will remain subject to audit until 2013. | |
Legal Costs and Contingencies | |
In the normal course of business, we incur costs to hire and retain external legal counsel to advise us on regulatory, litigation and other matters. We expense these costs as the related services are received. | |
If a loss is considered probable and the amount can be reasonably estimated, we recognize an expense for the estimated loss. If we have the potential to recover a portion of the estimated loss from a third party, we make a separate assessment of recoverability and reduce the estimated loss if recovery is also deemed probable. | |
Net Income/Loss per Share | |
Basic and diluted net income/loss per common share is presented in accordance with ASC Topic 260, “Earnings per Share,” for all periods presented. During year ended December 31, 2013 and 2012, common stock equivalents from outstanding stock options, warrants and convertible debt have been excluded from the calculation of the diluted loss per share in the statement of operations, because all such securities were anti-dilutive. The net income per share is calculated by dividing the net income by the weighted average number of shares outstanding during the periods. | |
Recent Accounting Pronouncements | |
In February 2013, the FASB issued ASU 2012-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This new accounting guidance under ASC 220, Comprehensive Income, provides an improvement on the reporting of reclassifications out of accumulated other comprehensive income by requiring an entity to report the effect of significant reclassifications out of accumulated other comprehensive income by component either on the income statement or in the notes to the financial statements. The guidance will become effective prospectively for fiscal years and interim reporting periods beginning after December 15, 2012. Early adoption is permitted. The adoption of ASU 2012-02 did not have a significant impact on the financial statements. | |
In July 2012, the FASB issued ASU No. 2012-02, Intangible - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. ASU No. 2012-02 permits an entity to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Subtopic 350-30, Intangibles – Goodwill and Other – General Intangibles Other than Goodwill. The more likely than not threshold is defined as having a likelihood of more than 50 percent. Under ASU No. 2012-02, an entity is not required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines it is more likely than not that its fair value is less than its carrying value. ASU No. 2013-02 is effective for annual periods beginning after September 15, 2012. The adoption of ASU 2012-02 did not have a significant impact on the financial statements. | |
In December 2011, the FASB issued ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. ASU No. 2012-11 was issued to provide enhanced disclosures that will enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on an entity's financial position. The amendments under ASU No. 2012-11 require enhanced disclosures by requiring entities to disclose both gross information and net information about both instruments and transactions subject to an agreement similar to a master netting arrangement. This scope would include derivatives, sale and repurchase agreements, reverse sale and repurchase agreements, and securities borrowing and lending arrangements. ASU No. 2011-11 is effective retrospectively for annual periods beginning on or after January 1, 2013, and interim periods within those periods. The adoption of ASU 2011-11 did not have a significant impact on our financial position or results of operations. | |
In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. ASU No. 2011-05 eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders' equity. The guidance now requires the company to present the components of net income and other comprehensive income either in one continuous statement of comprehensive income or in two separate but consecutive statements. Regardless of whether the company chooses to present comprehensive income in a single continuous statement or in two separate but consecutive statements, the company is required to present on the face of the financial statements reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement(s) where the components of net income and the components of other comprehensive income are presented. The standard does not change the items which must be reported in other comprehensive income, how such items are measured or when they must be reclassified to net income. ASU No. 2012-05 is effective retrospectively for fiscal years and interim reporting periods within these years beginning after December 15, 2011, with early adoption permitted. We adopted the pronouncement, on January 1, 2012, and it had no significant impact on our financial statements. | |
In May 2011, the FASB issued ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards ("IFRS"). This pronouncement was issued to provide a consistent definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and IFRS. ASU 2011-04 changes certain fair value measurement principles and enhances the disclosure requirements, particularly for Level 3 fair value measurements. ASU 2011-04 was effective for reporting periods beginning after December 15, 2011 with application on a prospective basis. We adopted the pronouncement, on January 1, 2012, and it had no significant impact on our financial statements. | |
NOTE_4_ACQUISITIONS
NOTE 4. ACQUISITIONS | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Business Combinations [Abstract] | ' | ||||
Business Combination Disclosure [Text Block] | ' | ||||
NOTE 4. ACQUISITIONS | |||||
On May 9, 2012, we entered into a Membership Interest Purchase Agreement (the “Agreement”), whereby we purchased 100% of Gleric Holdings, LLC (“Gleric”) from Dr. Eric K. Groteke and Dr. Glen C. Pettersen for aggregate consideration of 170,000 restricted shares of our common stock. Gleric owns a patent-pending technology and process, known at the Quad Video Halo system, involving a video and accessory apparatus for a video fluoroscopy unit. The accessory apparatus is designed for the purpose of maintaining a sterile environment during video fluoroscopy procedures in order to video and audio document medical procedures that utilize this type of equipment. The Quad Video Halo system is designed to provide greater transparency and impartial evidence to medical, legal, and insurance companies. The system is used to create a quad-screen multi-media view of the treatment process, which is incorporated into the patient’s medical records and provides a clear video of the overall procedure to further support claim review. The evidence provided by the video is tamper-proof and provides a candid reality of what the patient experienced. | |||||
We performed an internal valuation based upon analysis performed by our CEO on the value of the potential sales of the patent-pending video fluoroscopy units to other health care providers coupled with the incentive to employ Dr. Groteke as our Chief Technology Officer, who was hired on May 9, 2012. Gleric’s sole asset was the video camera they had assembled with the total material cost approximating $7,000 and no other assets or liabilities were assumed in the transaction. The $231,200 consideration given (170,000 shares of our common stock at $1.36 per share based on the quoted closing price on the date of the transaction), was assigned to the assets acquired as follows: | |||||
Incentive to hire Dr. Groteke as Chief Technology Officer coupled with | $ | 54,000 | |||
non-compete agreements for both Dr. Groteke and Dr. Pettersen | |||||
Quad Video Halo system equipment | 7,000 | ||||
Goodwill | 170,200 | ||||
$ | 231,200 | ||||
During the year ended December 31, 2013 and 2012, we recorded amortization expense of $18,000 and $9,000 related to the non-compete agreements for both parties included in the Gleric acquisition. | |||||
NOTE_5_ACCOUNTS_RECEIVABLE
NOTE 5. ACCOUNTS RECEIVABLE | 12 Months Ended | |
Dec. 31, 2013 | ||
Receivables [Abstract] | ' | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | |
NOTE 5. ACCOUNTS RECEIVABLE | ||
We recognize revenue and accounts receivable in accordance with SEC staff accounting bulletin, Topic 13, “Revenue Recognition,” which requires persuasive evidence that a sales arrangement exists; the fee is fixed or determinable; and collection is reasonably assured before revenue is recognized. We assist certain spine injury diagnostic centers where affiliated healthcare providers perform medical services for patients. Healthcare providers are paid a fixed rate for medical services performed. The patients are billed based on Current Procedural Terminology (“CPT”) codes for the medical procedure performed. CPT codes are numbers assigned to every task and service a medical practitioner may provide to a patient including medical, surgical and diagnostic services. CPT codes are developed, maintained and copyrighted by the American Medical Association. The patients are billed the normal billing amount, based on national averages, for a particular CPT code procedure. We take control of the patients’ unpaid bills. | ||
Revenue and corresponding accounts receivable are recognized by reference to “net revenue” and “accounts receivable, net” which is defined as gross amounts billed using CPT codes less account discounts that are expected to result when individual cases are ultimately settled. A discount rate of 52% based on settled patient cases, was used to reduce revenue to 48% of CPT code billings (“gross revenue”) during 2013 and 2012, respectively. | ||
The patients who receive medical services at the diagnostic centers are typically plaintiffs in accident lawsuits. The timing of collection of receivables is dependent on the timing of a settlement or judgment of each individual case associated with these patients. Historical experience, through 2013, demonstrated that the collection period for individual cases may extend for two years or more. Accordingly, we have classified receivables as current or long term based on our experience, which indicates that as of December 31, 2013 and 2012 that 40% and 49% of cases will be subject to a settlement or judgment within one year of a medical procedure. | ||
We take the following steps to establish an arrangement among all parties and facilitate collection upon settlement or final judgment of cases: | ||
· | The patient completed and signed medical and financial paperwork, which included an acknowledgement of the patient’s responsibility of payment for the services provided. Additionally, the paperwork should include an assignment of benefits derived from any settlement or judgment of the patient’s case. | |
· | The patient's attorney issued the healthcare provider a Letter of Protection designed to guarantee payment for the medical services provided to the patient from proceeds of any settlement or judgment in the accident case. This Letter of Protection also should preclude any case settlement without providing for payment of the patient’s medical bill. | |
· | Most of the patients who received medical services at the affiliated diagnostic centers have already have received two to four months of conservative treatment. The treating doctor then typically refers the patient to one of our affiliated healthcare providers for an evaluation of continuing symptoms. Appropriate, reasonable, and necessary treatment programs are ordered by the affiliate doctor. | |
Accounts Receivable Factoring | ||
During the year ended December 31, 2013 the company did not enter into any factoring agreements. During the year ended December 31, 2012, we factored $17,165 of gross receivables to a third party (the “factor”) for cash consideration of $5,150 respectively, or 30% of the gross receivable. In the event the factor does not receive at least 30% of the gross receivable purchased, we will transfer additional accounts receivable to the factor at no charge until the factor collects monies in the aggregate of the original gross receivables purchased. At December 31, 2013, factored gross receivables totaling $65,582 remained subject to the provisions of the factoring terms noted above from accounts receivable factored during 2011. | ||
NOTE_6_DUE_TO_RELATED_PARTIES
NOTE 6. DUE TO RELATED PARTIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt Disclosure [Text Block] | ' | ||||||||
NOTE 6. DUE TO RELATED PARTIES | |||||||||
Due to related parties consists of the following at December 31: | |||||||||
2013 | 2012 | ||||||||
Due to Northshore Orthopedics Associates | $ | 10,406 | $ | 4,400 | |||||
Due to Chief Executive Officer | 135,699 | 290,699 | |||||||
Due to Spine Injury Physicians (formerly Wellness Works LLC) | 18,188 | 57,810 | |||||||
$ | 164,293 | $ | 352,909 | ||||||
Amounts due to Northshore Orthopedics, Assoc. (“NSO”, a company owned by our Chief Executive Officer) and our Chief Executive Officer are non-interest bearing, due on demand and do not follow any specific repayment schedule. We used the amounts received to meet our working capital requirements (see Note 9). | |||||||||
Amounts due to Spine Injury Physicians (“SIP”), a company owned by our Chief Technology Officer formerly known as Wellness Works, LLC) are non-interest bearing and are due by the 15th of the month following the month in which they were billed. See Note 9 for further information on the amounts due to SIP. | |||||||||
NOTE_7_NOTES_PAYABLE_AND_LONG_
NOTE 7. NOTES PAYABLE AND LONG TERM DEBT | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Long-term Debt [Text Block] | ' | ||||||||
NOTE 7. NOTES PAYABLE AND LONG TERM DEBT | |||||||||
Debentures and third party note payable | |||||||||
In June 2013, we renewed a $50,000, 10% debenture originally due June 30, 2013 to a maturity date of June 30, 2015 in exchange for 50,000 warrants at $0.45 per share. Interest is payable quarterly and the full principal amount is due upon maturity. In June 2013, we also extended the maturity date of a $50,000 third party note originally due March 9, 2015 for two additional years maturing March 9, 2017 in exchange for warrants to purchase 50,000 shares at $0.45 per share. | |||||||||
The weighted-average estimated fair value of the 100,000 warrants issued was $0.21 per share using the Black-Sholes pricing model with the following assumptions: | |||||||||
Expected volatility | 89.5 | % | |||||||
Risk-free interest rate | 0.31 | % | |||||||
Expected life | 2 years | ||||||||
Dividend yield | 0 | % | |||||||
During the twelve months ended December 31, 2013 and 2012, we recorded $44,662 and $56,808 in interest expense, respectively, related to the amortization of warrants associated with the debentures and third party note. In June 2013, we repaid debentures totaling $350,000, based on the stated contractual terms. | |||||||||
Convertible and secured notes payable | |||||||||
On June 27, 2012, we issued a $500,000 convertible promissory note bearing interest at 12% per year which matures on March 27, 2014. This note provides for six quarterly payments of interest commencing on September 27, 2012, and continuing thereafter on December 27, March 27, June 27, and September 27 throughout the term of the promissory note. On the maturity date, a balloon payment of the entire outstanding principal plus any accrued but unpaid interest is due. Under the terms of the convertible note, the holder received a detachable warrant to purchase 69,445 shares of our common stock at the price of $1.80 per share that expires on June 27, 2014. The holder of the note also has the right to convert into common stock, at $1.50 per share, up to 50% of the principal amount after twelve months and up to 100% of the principal amount after fifteen months from the original issue date. This note was extended for one year on February 6, 2014 with the same provisions for quarterly interest payments with the note now maturing March 27, 2015. As consideration for the extension, we issued another 69,445 warrants to purchase our common stock for $0.43 that expire on February 6, 2015. The holder of the note continues to retain the right to convert the debt at $1.50 per share for the additional twelve months. | |||||||||
On August 29, 2012, we issued a $1,000,000 three-year secured promissory note bearing interest at 12% per year, with thirty-five monthly payments of interest commencing on September 29, 2013, and continuing thereafter on the 29th day of each successive month throughout the term of the promissory note. Under the terms of the secured promissory note, the holder received a detachable warrant to purchase 333,333 shares of our common stock at the price of $1.60 per share that expires on August 29, 2015. This promissory note is secured by $3,000,000 in gross accounts receivable. On the maturity date, one balloon payment of the entire outstanding principal amount plus any accrued and unpaid interest is due. | |||||||||
In accordance with ASC 470-20, Debt with Conversion and Other Options, the proceeds received from the convertible note were allocated between the convertible note and the detachable warrant based on the fair value of the convertible note without the warrant and the warrant. The portion of the proceeds allocated to the warrant was recognized as additional paid-in capital and a debt discount. The debt discount related to the warrant is accreted into interest expense through the maturity of the convertible note. The effective conversion price of the common stock did not exceed the stated conversion rate; therefore, there is no beneficial conversion feature associated with the convertible note. Similarly, the proceeds received from the secured note were allocated between the secured note and the detachable warrant based on the fair value of the secured note without the warrant and the warrant. The portion of the proceeds allocated to the warrant was recognized as additional paid-in capital and a debt discount. The debt discounts related to the warrants are accreted into interest expense over the lives of the notes. | |||||||||
The weighted-average estimated fair value of the 69,445 and 333,333 warrants issued with the convertible and secured notes, respectively was $0.62 and $0.81 per share, respectively, using the Black-Sholes pricing model with the following assumptions: | |||||||||
Convertible | Secured | ||||||||
Description | Note | Note | |||||||
Expected volatility | 128 | % | 133 | % | |||||
Risk-free interest rate | 0.31 | % | 0.36 | % | |||||
Expected life | 2 years | 3 years | |||||||
Dividend yield | 0 | % | 0 | % | |||||
The following table provides an analysis of activity related to the convertible and secured notes for the year ended December 31, 2013: | |||||||||
Convertible | Secured | ||||||||
Description | Note | Note | |||||||
Proceeds received on issuance of notes in 2012 | $ | 500,000 | $ | 1,000,000 | |||||
Discount allocated to warrants | (46,716 | ) | (212,598 | ) | |||||
Note balances after discount | 453,284 | 787,402 | |||||||
Accretion of discount to interest expense | 35,037 | 120,000 | |||||||
Note balances at December 31, 2013 | $ | 488,321 | $ | 907,402 | |||||
Total allocated to additional paid in capital | $ | 46,716 | $ | 212,598 | |||||
Unamortized discount at December 31, 2013 | $ | 11,679 | $ | 92,598 | |||||
Contractual interest expense for 12 months ended at December 31, 2013 | $ | 60,000 | $ | 120,000 | |||||
Effective interest rate on notes | 19 | % | 24 | % | |||||
The following table provides an analysis of activity related to the convertible and secured notes for the year ended December 31, 2012: | |||||||||
Convertible | Secured | ||||||||
Description | Note | Note | |||||||
Proceeds received on issuance of notes in 2012 | $ | 500,000 | $ | 1,000,000 | |||||
Discount allocated to warrants | (46,716 | ) | (212,598 | ) | |||||
Note balances after discount | 453,284 | 787,402 | |||||||
Accretion of discount to interest expense | 11,679 | 30,000 | |||||||
Note balances at December 31, 2012 | $ | 464,963 | $ | 817,402 | |||||
Total allocated to additional paid in capital | $ | 46,716 | $ | 212,598 | |||||
Unamortized discount at December 31, 2012 | $ | 35,037 | $ | 182,598 | |||||
Contractual interest expense for 12 months ended at December 31, 2012 | $ | 30,000 | $ | 40,000 | |||||
Effective interest rate on notes | 17.3 | % | 19.1 | % | |||||
The following table provides a listing of the future maturities of long-term debt at December 31, 2013. (See note above about convertible note extension) | |||||||||
Contractual | Principal | ||||||||
Amounts | Amounts | ||||||||
Year | Due | Due | |||||||
2014 | $ | 500,000 | $ | 500,000 | |||||
2015 | 1,050,000 | 945,723 | |||||||
2016 | - | - | |||||||
2017 | 50,000 | 50,000 | |||||||
Total | $ | 1,600,000 | $ | 1,495,723 | |||||
NOTE_8_STOCKHOLDERS_EQUITY
NOTE 8. STOCKHOLDERS' EQUITY | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | |||||||||||||||
NOTE 8. STOCKHOLDERS’ EQUITY | ||||||||||||||||
Common Stock | ||||||||||||||||
During the years ended December 31, 2013 and 2012, we issued common stock to compensate officers, employees, directors and outside professionals, to make an acquisition and to settle a lawsuit. The stock issuances were valued based on the quoted market price of our common stock on the respective measurement dates. Following is an analysis of common stock issuances during the years ended December 31, 2013 and 2012: | ||||||||||||||||
In February 2012, we converted $1,020,200 of outstanding debt to Northshore Orthopedics into 557,486 shares of common stock valued at $1.83 per share. See Note 9. | ||||||||||||||||
In May 2012, we issued 170,000 shares of common stock valued at $1.36 per share to acquire Gleric Holdings, LLC. See Note 4. | ||||||||||||||||
In May 2012, we entered into a Settlement Agreement and Mutual General Release with James McKay and Celebrity Foods, Inc., which agreement settled and released all parties from claims in connection with the lawsuit originally filed on January 19, 2010 in the United States District Court, Eastern District of Pennsylvania. The terms of the agreement provide that Mr. McKay and Celebrity Foods will retain an aggregate of 448,000 shares of stock and be issued an aggregate of 135,000 additional restricted shares at $1.39 per share. All of the shares retained by and issued to Mr. McKay and Celebrity Foods are subject to a leak-out provision. We also agreed to pay certain attorney’s fees which included the issuance of 100,000 restricted shares valued at $1.39 per share of common stock to the attorney of Mr. McKay and Celebrity Foods, which shares are also subject to certain trading restrictions. | ||||||||||||||||
In July 2012 and December 2012, we issued 15,000 and 30,000 restricted shares of common stock valued at $1.14 and $0.54 per share, respectively, in connection with the engagement of an investor relations consultant. | ||||||||||||||||
In August 2012, we issued an aggregate of 300,000 restricted shares of common stock, valued at $1.05 per share, in connection with the engagement of a business development consultant. | ||||||||||||||||
In December 2012, we issued 10,000 restricted shares of common stock to two separate consultants for their work on various matters for a total of 20,000 shares of common stock valued at $0.54 per share. | ||||||||||||||||
In September 2013, we issued an aggregate of 300,000 restricted shares of common stock, valued at $0.32 per share, in connection with the engagement of a business development consult | ||||||||||||||||
Warrants | ||||||||||||||||
The following summarizes outstanding warrants and their respective exercise prices at December 31, 2013: | ||||||||||||||||
Shares | Remaining | |||||||||||||||
Underlying | Exercise | Dates of | Contractual | |||||||||||||
Description | Warrants | Price | Expiration | Term (in years) | ||||||||||||
Warrants issued for loan extension | 100,000 | $ | 0.45 | Jun-15 | 1.5 | |||||||||||
Series D Warrants | 200,000 | $ | 1 | Dec-14 | 1 | |||||||||||
Series D Warrants | 200,000 | $ | 1 | Mar-15 | 1.3 | |||||||||||
Convertible Note Warrants | 69,445 | $ | 1.8 | Sep-14 | 0.5 | |||||||||||
Secured Note Warrants | 333,333 | $ | 1.6 | Aug-15 | 1.7 | |||||||||||
902,778 | ||||||||||||||||
We currently have four series of outstanding warrants. Series B and Series C warrants were issued with the debentures that we sold to five investors during 2012 and 2010 and have expired. We issued 100,000 warrants in connection with the renewal of a third party note payable and debenture as described further in Note 7. | ||||||||||||||||
During 2012, as described in Note 7, we issued two warrants to investors (1) to purchase 69,445 shares of common stock in conjunction with the convertible note payable and (2) to purchase 333,333 shares of common stock in conjunction with the secured note payable. | ||||||||||||||||
During 2011, we issued 400,000 Series D warrants as compensation for the consultants who sold the debentures. The warrants were immediately exercisable. The weighted-average estimated fair value of the warrants issued ranged from $0.57-$0.74 per share using the Black-Scholes model with the following assumptions: | ||||||||||||||||
Expected volatility | ranging from | 177.23 | to | 187.74 | ||||||||||||
Risk-free interest rate | ranging from | 0.52% | to | 1.25% | ||||||||||||
Expected life | 4 years | |||||||||||||||
Estimated forfeitures | 0%, based on limited forfeiture history | |||||||||||||||
Dividend yield | 0% | |||||||||||||||
The fair value of the Series D warrants issued in 2011 was $279,000 and was recorded as a debt issuance cost asset which was amortized through June 13, 2013. The unamortized portion of the debt issuance cost asset is $0 at December 31, 2013. Interest expense related to these Series D warrants issued in 2011 of $55,786 and $111,600 was recognized in the Statements of Operations for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||||||
A summary of the warrant activity for the years ended December 31, 2013 and 2012 follows: | ||||||||||||||||
Weighted- | ||||||||||||||||
Weighted- | Average | Aggregate | ||||||||||||||
Shares | Average | Remaining | Intrinsic | |||||||||||||
Underlying | Exercise | Contractual | Value | |||||||||||||
Description | Warrants | Price | Term (in years) | (In-the-Money) | ||||||||||||
Outstanding and exercisable at December 31, 2011 | 800,000 | $ | 1.88 | 2.3 | $ | - | ||||||||||
Warrants issued with long-term notes payable | 402,778 | $ | 1.63 | 2.5 | $ | - | ||||||||||
Warrants expired (Series A) | (200,000 | ) | $ | - | - | $ | - | |||||||||
Outstanding and exerciseable at December 31, 2012 | 1,002,778 | $ | 1.85 | 2 | ||||||||||||
Warrants issued with long-tern Notes payable | 100,000 | $ | 0.45 | 1 | $ | 45,000 | ||||||||||
Warrants expired (Series B and C) | (200,000 | ) | ||||||||||||||
Outstanding and exerciseable at December 31, 2013 | 902,778 | $ | 1.39 | 1.2 | ||||||||||||
Stock Options | ||||||||||||||||
The Company recognizes compensation expense related to stock options in accordance with the Financial Accounting Standards Board (“FASB”) standard regarding share-based payments, and as such, has measured the share-based compensation expense for stock options granted during the years ended December 31, 2013 and 2012 based upon the estimated fair value of the award on the date of grant and recognizes the compensation expense over the award’s requisite service period. The weighted average fair values were calculated using the Black Scholes option pricing model. | ||||||||||||||||
On June 28, 2012, we issued 150,000 stock options to directors as follows: | ||||||||||||||||
· | Options to purchase up to a total of 150,000 shares of common stock were granted to the certain members of the Board of Directors. These options vested and became exercisable immediately. The weighted-average estimated fair value of the stock options granted was $1.15 per share using the Black-Scholes model with the following assumptions: | |||||||||||||||
Expected volatility | 136.00% | |||||||||||||||
Risk-free interest rate | 0.40% | |||||||||||||||
Expected life | 3 years | |||||||||||||||
Dividend yield | 0% | |||||||||||||||
On December 1, 2012, we issued 600,000 stock options to officers as follows: | ||||||||||||||||
· | Options to purchase up to a total of 600,000 shares of common stock were granted to three officers as they each were given employment agreements which included the right to purchase 200,000 shares of common stock at the price of $0.54 per share for the next two years. These options vest evenly every six months over the first two years of the five-year life of the options. The weighted-average estimated fair value of the stock options granted was $0.46 per share using the Black-Scholes model with the following assumptions: | |||||||||||||||
Expected volatility | 130.21% | |||||||||||||||
Risk-free interest rate | 0.61% | |||||||||||||||
Expected life | 5 years | |||||||||||||||
Dividend yield | 0% | |||||||||||||||
There were no options granted or forfeited for the year ended December 31, 2013. | ||||||||||||||||
Details of stock option activity for the years ended December 31, 2013 and 2012 follows: | ||||||||||||||||
Weighted- | ||||||||||||||||
Average | Aggregate | |||||||||||||||
Shares | Weighted | Remaining | Intrinsic | |||||||||||||
Underlying | Average | Contractual | Value | |||||||||||||
Description | Options | Exercise Price | Term (Years) | (In-the-Money) | ||||||||||||
Outstanding at December 31, 2011 | 875,000 | $ | 0.77 | 3.2 | $ | - | ||||||||||
Options granted | 750,000 | $ | 0.66 | 4.4 | $ | - | ||||||||||
Options forfeited | (225,000 | ) | $ | 0.77 | - | $ | - | |||||||||
Outstanding at December 31, 2012 | 1,400,000 | $ | 0.71 | 3.8 | $ | - | ||||||||||
Options granted | - | $ | - | - | $ | - | ||||||||||
Options forfeited | - | - | - | - | ||||||||||||
Outstanding at December 31, 2013 | 1,400,000 | $ | 0.71 | 2.8 | $ | - | ||||||||||
The following summarizes outstanding stock options and their respective exercise prices at December 31, 2013: | ||||||||||||||||
Shares | Remaining | |||||||||||||||
Underlying | Exercise | Dates of | Contractual | |||||||||||||
Description | Options | Price | Expiration | Term (in years) | ||||||||||||
Directors Options | 50,000 | $ | 0.77 | Jun-14 | 0.4 | |||||||||||
Officers Options | 600,000 | $ | 0.77 | Jun-16 | 2.4 | |||||||||||
Directors Options | 150,000 | $ | 1.15 | Jun-15 | 1.5 | |||||||||||
Officers Options | 600,000 | $ | 0.54 | Dec-17 | 3.9 | |||||||||||
1,400,000 | ||||||||||||||||
No options were granted or forfeited for the year ended December 31, 2013. The fair value of the options granted during the years ended December 31, 2012 was $408,000. We recorded $288,000 and $300,000 in compensation expense in operating, general and administrative expenses in the Statements of Operations for the years ended December 31, 2013 and 2012, respectively. As of December 31, 2013, there was approximately $194,110 of total unrecognized compensation expense related to non-vested stock option awards. The remaining $194,110 in compensation expense will be recognized during the year ended December 31, 2014. | ||||||||||||||||
NOTE_9_RELATED_PARTY_TRANSACTI
NOTE 9. RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
NOTE 9. RELATED PARTY TRANSACTIONS | |
Due to Related Parties | |
We have an agreement with NSO, which is 100% owned by our Chief Executive Officer, William Donovan, M.D., to provide medical services as our independent contractor. As of December 31, 2013 and 2012, we had balances payable to NSO of $10,406 and $4,400, respectively. This outstanding payable is non-interest bearing, due on demand and does not follow any specific repayment schedule. We do not directly pay Dr. Donovan (in his individual capacity as a physician) any fees in connection with NSO. However, Dr. Donovan is the sole owner of NSO, and we pay NSO under the terms of our agreement. In February 2012, a $1,020,200 outstanding NSO balance payable was converted to stock at the price of $1.83 per share, which was the closing market price on February 17, 2012. This resulted in the issuance of 557,486 restricted shares of common stock. | |
As shown in Note 6, at December 31, 2013 and 2012, we had balances of $135,699 and $290,699, respectively, due to Dr. Donovan, in his individual capacity, for working capital advances and payments made on our behalf. This outstanding payable is non-interest bearing, due on demand and does not follow any specific repayment schedule. | |
Also, as shown in Note 6, we have an agreement with Spine Injury Physicians, (formerly Wellness Works LLC) a company 100% owned by Eric Groteke, D.C., who became our Chief Technology Officer in May 2012 (See Note 4), to provide medical services as our independent contractor in Florida. SIP is paid for services on a monthly basis dependent upon the services provided. At December 31, 2013 and 2012, $18,188 and $57,810 respectively, was owed to SIP. For the year ended December 31, 2013, SIP billed us $352,302 as a third-party for service costs. For the year ended December 31, 2012, Wellness billed us for service costs in the amount of $459,532 as a related party and $296,299 as a third-party. | |
Note Receivable from a Related Party | |
We entered into the 6% promissory note with a major stockholder (a beneficial owner of over 5% of our common stock) on June 30, 2012, as part of a transaction where we recorded a liability for legal expenses that arose in 2008-2010 for which the stockholder and we were held jointly and severally liable. In September 2012, the legal expenses were settled with the law firm for a $200,000 cash payment. During the year ended December 31, 2012 we wrote off the promissory note with the shareholder and realized a net credit to other income of approximately $66,000. | |
NOTE_10_INCOME_TAXES
NOTE 10. INCOME TAXES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
NOTE 10. INCOME TAXES | |||||||||
We have not made provision for income taxes for the years ended December 31, 2013 or 2012, since we have net operating loss carryforwards to offset current taxable income. | |||||||||
Deferred tax assets consist of the following at December 31: | |||||||||
2013 | 2012 | ||||||||
Benefit from net operating loss carryforwards | $ | 2,041,083 | $ | 2,279,261 | |||||
Allowance for doubtful accounts | 119,889 | - | |||||||
Less: valuation allowance | (2,160,972 | ) | (2,279,261 | ) | |||||
$ | - | $ | - | ||||||
Due to uncertainties surrounding our ability to generate future taxable income to realize these assets, a full valuation has been established to offset the net deferred income tax asset. Based on management’s assessment, utilizing an effective combined tax rate for federal and state taxes of approximately 37%, we have determined that it is not currently more likely than not that we will realize a deferred income tax assets of approximately $2,160,972 and $2,279,261 attributable to the future utilization of the approximate $6,003,185 and $7,043,430 in eligible net operating loss carryforwards, and the allowance for doubtful accounts, as of December 31, 2013 and December 31, 2012 respectively. We will continue to review this valuation allowance and make adjustments as appropriate. The net operating loss carryforwards will begin to expire in varying amounts from year 2018 to 2031. | |||||||||
Current income tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, amounts available to offset future taxable income may be limited under Section 382 of the Internal Revenue Code. | |||||||||
Following is a reconciliation of the (provision) benefit for federal income taxes as reported in the accompanying Statements of Operations, to the expected amount at the 34% federal statutory rate: | |||||||||
2013 | 2012 | ||||||||
Income tax benefit at the 34% statutory rate | $ | 212,864 | $ | 146,274 | |||||
Effect of state income taxes | 18,782 | 12,906 | |||||||
Non-deductible interest expense | (53,726 | ) | (98,487 | ) | |||||
Non-deductible wage expense | (97,920 | ) | - | ||||||
Expiration and adjustment of net operating loss carryforwards available | (186,706 | ) | - | ||||||
Non-deductible meals and entertainment | (11,563 | ) | - | ||||||
Less change in valuation allowance | 118,269 | (60,693 | ) | ||||||
Income tax (provision) benefit | $ | - | $ | - | |||||
We are subject to taxation in the United States and certain state jurisdictions. Our tax years for 2002 and forward are subject to examination by the United States and applicable state tax authorities due to the carryforwards of unutilized net operating losses and the timing of tax filings. | |||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Accounting Method, Policy [Policy Text Block] | ' |
Accounting Method | |
Our financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of our financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of our financial position and results of operations. | |
Revenue Recognition, Policy [Policy Text Block] | ' |
Revenue Recognition | |
Revenues are recognized in accordance with SEC staff accounting bulletin, Topic 13, Revenue Recognition, which specifies that only when persuasive evidence for an arrangement exists; the fee is fixed or determinable; and collection is reasonably assured can revenue be recognized. | |
Persuasive evidence of an arrangement is obtained prior to services being rendered when the patient completes and signs the medical and financial paperwork. Delivery of services is considered to have occurred when medical diagnostic services are provided to the patient. The price and terms for the services are considered fixed and determinable at the time that the medical services are provided and are based upon the type and extent of the services rendered. Our credit policy has been established based upon extensive experience by management in the industry and has been determined to ensure that collectability is reasonably assured. Payment for services are primarily made to us by a third party and the credit policy includes terms of net 240 days for collections; however, collections occur upon settlement or judgment of cases (see Note 5). | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' |
Fair Value of Financial Instruments | |
Cash, accounts receivable, accounts payable and accrued liabilties, and notes payable as reflected in the financial statements, approximates fair value. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Cash and Cash Equivalents | |
Cash and cash equivalents consist of liquid investments with original maturities of three months or less. Cash equivalents are stated at cost, which approximates fair value. We maintain cash and cash equivalents in banks which at times may exceed federally insured limits. We have not experienced any losses on these deposits. | |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | ' |
Intangible Assets | |
Intangible assets acquired are initially recognized at cost. Intangible assets acquired in a business combination are recognized at their estimated fair value at the date of acquisition. | |
Goodwill recognized in a business combination is subjective and represents the value of the excess amount given to the acquired company above the estimated fair market value of the assets on the balance sheet. Each year, during the fourth quarter, the goodwill amount is reviewed to determine if any impairment has occurred. Impairment occurs when the original amount of goodwill exceeds the value of the expected future net cash flows from the business acquired. At December 31, 2013 and 2012, no impairment to the asset was determined to have occurred. | |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' |
Long-Lived Assets | |
We periodically review and evaluate long-lived assets such as intangible assets, when events and circumstances indicate that the carrying amount of these assets may not be recoverable. In performing our review for recoverability, we estimate the future cash flows expected to result from the use of such assets and its eventual disposition. If the sum of the expected undiscounted future operating cash flows is less than the carrying amount of the related assets, an impairment loss is recognized in the statement of operations. Measurement of the impairment loss is based on the excess of the carrying amount of such assets over the fair value calculated using discounted expected future cash flows. | |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' |
Concentrations of Credit Risk | |
Assets that expose us to credit risk consist primarily of cash and accounts receivable. Our accounts receivable are from a diversified customer base and, therefore, we believe the concentration of credit risk is minimal. We evaluate the creditworthiness of customers before any services are provided. We record a discount based on the nature of our business, collection trends, and an assessment of our ability to fully realize amounts billed for services. Additionally, we have established an allowance for doubtful accounts in the amount of $352,615 and $52,628, at December 31, 2013 and 2012, respectively. | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
Stock Based Compensation | |
We account for the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors, including employee stock options, based on estimated fair values. Under authoritative guidance issued by the Financial Accounting Standards Board (“FASB”), companies are required to estimate the fair value or calculated value of share-based payment awards on the date of grant using an option-pricing model. The value of awards that are ultimately expected to vest is recognized as expense over the requisite service periods in our statements of income. We use the Black-Scholes Option Pricing Model to determine the fair-value of stock-based awards. We recognized stock based compensation cost of $516,666 and $474,084 during 2013 and 2012, respectively. | |
Income Tax, Policy [Policy Text Block] | ' |
Income Taxes | |
We account for income taxes in accordance with the liability method. Under the liability method, deferred assets and liabilities are recognized based upon anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. We establish a valuation allowance to the extent that it is more likely than not that deferred tax assets will not be utilized against future taxable income. | |
Income Tax Uncertainties, Policy [Policy Text Block] | ' |
Uncertain Tax Positions | |
Accounting Standards Codification “ASC” Topic 740-10-25 defines the minimum threshold a tax position is required to meet before being recognized in the financial statements as “more likely than not” (i.e., a likelihood of occurrence greater than fifty percent). Under ASC Topic 740-10-25, the recognition threshold is met when an entity concludes that a tax position, based solely on its technical merits, is more likely than not to be sustained upon examination by the relevant taxing authority. Those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard, or are resolved through negotiation or litigation with the taxing authority, or upon expiration of the statute of limitations. De-recognition of a tax position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more likely than not threshold of being sustained. | |
We are subject to ongoing tax exposures, examinations and assessments in various jurisdictions. Accordingly, we may incur additional tax expense based upon the outcomes of such matters. In addition, when applicable, we will adjust tax expense to reflect our ongoing assessments of such matters which require judgment and can materially increase or decrease our effective rate as well as impact operating results. | |
Under ASC Topic 740-10-25, only the portion of the liability that is expected to be paid within one year is classified as a current liability. As a result, liabilities expected to be resolved without the payment of cash (e.g. resolution due to the expiration of the statute of limitations) or are not expected to be paid within one year are not classified as current. We have recently adopted a policy of recording estimated interest and penalties as income tax expense and tax credits as a reduction in income tax expense. | |
We have not made any provision for federal and state income tax liabilities or interest and penalties that may result from this uncertainty that arose as a result of filing U.S. federal and applicable state tax returns in 2010 related to tax years 2004 to 2009. The number of years with open tax audits varies depending on the tax jurisdiction. Our major taxing jurisdictions include the United States (including applicable states). Because U.S. federal and applicable state tax returns for years 2004 to 2009 were filed in 2010, management believes that all these years of returns will remain subject to audit until 2013. | |
Legal Costs, Policy [Policy Text Block] | ' |
Legal Costs and Contingencies | |
In the normal course of business, we incur costs to hire and retain external legal counsel to advise us on regulatory, litigation and other matters. We expense these costs as the related services are received. | |
If a loss is considered probable and the amount can be reasonably estimated, we recognize an expense for the estimated loss. If we have the potential to recover a portion of the estimated loss from a third party, we make a separate assessment of recoverability and reduce the estimated loss if recovery is also deemed probable. | |
Earnings Per Share, Policy [Policy Text Block] | ' |
Net Income/Loss per Share | |
Basic and diluted net income/loss per common share is presented in accordance with ASC Topic 260, “Earnings per Share,” for all periods presented. During year ended December 31, 2013 and 2012, common stock equivalents from outstanding stock options, warrants and convertible debt have been excluded from the calculation of the diluted loss per share in the statement of operations, because all such securities were anti-dilutive. The net income per share is calculated by dividing the net income by the weighted average number of shares outstanding during the periods. | |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
Recent Accounting Pronouncements | |
In February 2013, the FASB issued ASU 2012-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This new accounting guidance under ASC 220, Comprehensive Income, provides an improvement on the reporting of reclassifications out of accumulated other comprehensive income by requiring an entity to report the effect of significant reclassifications out of accumulated other comprehensive income by component either on the income statement or in the notes to the financial statements. The guidance will become effective prospectively for fiscal years and interim reporting periods beginning after December 15, 2012. Early adoption is permitted. The adoption of ASU 2012-02 did not have a significant impact on the financial statements. | |
In July 2012, the FASB issued ASU No. 2012-02, Intangible - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. ASU No. 2012-02 permits an entity to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Subtopic 350-30, Intangibles – Goodwill and Other – General Intangibles Other than Goodwill. The more likely than not threshold is defined as having a likelihood of more than 50 percent. Under ASU No. 2012-02, an entity is not required to calculate the fair value of an indefinite-lived intangible asset unless the entity determines it is more likely than not that its fair value is less than its carrying value. ASU No. 2013-02 is effective for annual periods beginning after September 15, 2012. The adoption of ASU 2012-02 did not have a significant impact on the financial statements. | |
In December 2011, the FASB issued ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. ASU No. 2012-11 was issued to provide enhanced disclosures that will enable users of the financial statements to evaluate the effect or potential effect of netting arrangements on an entity's financial position. The amendments under ASU No. 2012-11 require enhanced disclosures by requiring entities to disclose both gross information and net information about both instruments and transactions subject to an agreement similar to a master netting arrangement. This scope would include derivatives, sale and repurchase agreements, reverse sale and repurchase agreements, and securities borrowing and lending arrangements. ASU No. 2011-11 is effective retrospectively for annual periods beginning on or after January 1, 2013, and interim periods within those periods. The adoption of ASU 2011-11 did not have a significant impact on our financial position or results of operations. | |
In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income. ASU No. 2011-05 eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders' equity. The guidance now requires the company to present the components of net income and other comprehensive income either in one continuous statement of comprehensive income or in two separate but consecutive statements. Regardless of whether the company chooses to present comprehensive income in a single continuous statement or in two separate but consecutive statements, the company is required to present on the face of the financial statements reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement(s) where the components of net income and the components of other comprehensive income are presented. The standard does not change the items which must be reported in other comprehensive income, how such items are measured or when they must be reclassified to net income. ASU No. 2012-05 is effective retrospectively for fiscal years and interim reporting periods within these years beginning after December 15, 2011, with early adoption permitted. We adopted the pronouncement, on January 1, 2012, and it had no significant impact on our financial statements. | |
In May 2011, the FASB issued ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards ("IFRS"). This pronouncement was issued to provide a consistent definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and IFRS. ASU 2011-04 changes certain fair value measurement principles and enhances the disclosure requirements, particularly for Level 3 fair value measurements. ASU 2011-04 was effective for reporting periods beginning after December 15, 2011 with application on a prospective basis. We adopted the pronouncement, on January 1, 2012, and it had no significant impact on our financial statements. |
NOTE_4_ACQUISITIONS_Tables
NOTE 4. ACQUISITIONS (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Business Combinations [Abstract] | ' | ||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | 'The $231,200 consideration given (170,000 shares of our common stock at $1.36 per share based on the quoted closing price on the date of the transaction), was assigned to the assets acquired as follows: | ||||
Incentive to hire Dr. Groteke as Chief Technology Officer coupled with | $ | 54,000 | |||
non-compete agreements for both Dr. Groteke and Dr. Pettersen | |||||
Quad Video Halo system equipment | 7,000 | ||||
Goodwill | 170,200 | ||||
$ | 231,200 |
NOTE_6_DUE_TO_RELATED_PARTIES_
NOTE 6. DUE TO RELATED PARTIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Related Party Transactions [Table Text Block] | 'Due to related parties consists of the following at December 31: | ||||||||
2013 | 2012 | ||||||||
Due to Northshore Orthopedics Associates | $ | 10,406 | $ | 4,400 | |||||
Due to Chief Executive Officer | 135,699 | 290,699 | |||||||
Due to Spine Injury Physicians (formerly Wellness Works LLC) | 18,188 | 57,810 | |||||||
$ | 164,293 | $ | 352,909 |
NOTE_7_NOTES_PAYABLE_AND_LONG_1
NOTE 7. NOTES PAYABLE AND LONG TERM DEBT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
NOTE 7. NOTES PAYABLE AND LONG TERM DEBT (Tables) [Line Items] | ' | ||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | 'The weighted-average estimated fair value of the 69,445 and 333,333 warrants issued with the convertible and secured notes, respectively was $0.62 and $0.81 per share, respectively, using the Black-Sholes pricing model with the following assumptions: | ||||||||
Convertible | Secured | ||||||||
Description | Note | Note | |||||||
Expected volatility | 128 | % | 133 | % | |||||
Risk-free interest rate | 0.31 | % | 0.36 | % | |||||
Expected life | 2 years | 3 years | |||||||
Dividend yield | 0 | % | 0 | % | |||||
Schedule of Debt [Table Text Block] | 'The following table provides an analysis of activity related to the convertible and secured notes for the year ended December 31, 2013 and 2012: | ||||||||
Convertible | Secured | ||||||||
Description | Note | Note | |||||||
Proceeds received on issuance of notes in 2012 | $ | 500,000 | $ | 1,000,000 | |||||
Discount allocated to warrants | (46,716 | ) | (212,598 | ) | |||||
Note balances after discount | 453,284 | 787,402 | |||||||
Accretion of discount to interest expense | 35,037 | 120,000 | |||||||
Note balances at December 31, 2013 | $ | 488,321 | $ | 907,402 | |||||
Total allocated to additional paid in capital | $ | 46,716 | $ | 212,598 | |||||
Unamortized discount at December 31, 2013 | $ | 11,679 | $ | 92,598 | |||||
Contractual interest expense for 12 months ended at December 31, 2013 | $ | 60,000 | $ | 120,000 | |||||
Effective interest rate on notes | 19 | % | 24 | % | |||||
Convertible | Secured | ||||||||
Description | Note | Note | |||||||
Proceeds received on issuance of notes in 2012 | $ | 500,000 | $ | 1,000,000 | |||||
Discount allocated to warrants | (46,716 | ) | (212,598 | ) | |||||
Note balances after discount | 453,284 | 787,402 | |||||||
Accretion of discount to interest expense | 11,679 | 30,000 | |||||||
Note balances at December 31, 2012 | $ | 464,963 | $ | 817,402 | |||||
Total allocated to additional paid in capital | $ | 46,716 | $ | 212,598 | |||||
Unamortized discount at December 31, 2012 | $ | 35,037 | $ | 182,598 | |||||
Contractual interest expense for 12 months ended at December 31, 2012 | $ | 30,000 | $ | 40,000 | |||||
Effective interest rate on notes | 17.3 | % | 19.1 | % | |||||
Schedule of Maturities of Long-term Debt [Table Text Block] | 'The following table provides a listing of the future maturities of long-term debt at December 31, 2013. (See note above about convertible note extension) | ||||||||
Contractual | Principal | ||||||||
Amounts | Amounts | ||||||||
Year | Due | Due | |||||||
2014 | $ | 500,000 | $ | 500,000 | |||||
2015 | 1,050,000 | 945,723 | |||||||
2016 | - | - | |||||||
2017 | 50,000 | 50,000 | |||||||
Total | $ | 1,600,000 | $ | 1,495,723 | |||||
Notes Payable, Other Payables [Member] | ' | ||||||||
NOTE 7. NOTES PAYABLE AND LONG TERM DEBT (Tables) [Line Items] | ' | ||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | 'The weighted-average estimated fair value of the 100,000 warrants issued was $0.21 per share using the Black-Sholes pricing model with the following assumptions: | ||||||||
Expected volatility | 89.5 | % | |||||||
Risk-free interest rate | 0.31 | % | |||||||
Expected life | 2 years | ||||||||
Dividend yield | 0 | % |
NOTE_8_STOCKHOLDERS_EQUITY_Tab
NOTE 8. STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
NOTE 8. STOCKHOLDERS' EQUITY (Tables) [Line Items] | ' | |||||||||||||||
Schedule of Warrant Activity [Table Text Block] | 'The following summarizes outstanding warrants and their respective exercise prices at December 31, 2013: | |||||||||||||||
Shares | Remaining | |||||||||||||||
Underlying | Exercise | Dates of | Contractual | |||||||||||||
Description | Warrants | Price | Expiration | Term (in years) | ||||||||||||
Warrants issued for loan extension | 100,000 | $ | 0.45 | Jun-15 | 1.5 | |||||||||||
Series D Warrants | 200,000 | $ | 1 | Dec-14 | 1 | |||||||||||
Series D Warrants | 200,000 | $ | 1 | Mar-15 | 1.3 | |||||||||||
Convertible Note Warrants | 69,445 | $ | 1.8 | Sep-14 | 0.5 | |||||||||||
Secured Note Warrants | 333,333 | $ | 1.6 | Aug-15 | 1.7 | |||||||||||
902,778 | ||||||||||||||||
Schedule of Warrant Valuation Assumptions [Table Text Block] | 'During 2011, we issued 400,000 Series D warrants as compensation for the consultants who sold the debentures. The warrants were immediately exercisable. The weighted-average estimated fair value of the warrants issued ranged from $0.57-$0.74 per share using the Black-Scholes model with the following assumptions: | |||||||||||||||
Expected volatility | ranging from | 177.23 | to | 187.74 | ||||||||||||
Risk-free interest rate | ranging from | 0.52% | to | 1.25% | ||||||||||||
Expected life | 4 years | |||||||||||||||
Estimated forfeitures | 0%, based on limited forfeiture history | |||||||||||||||
Dividend yield | 0% | |||||||||||||||
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | 'A summary of the warrant activity for the years ended December 31, 2013 and 2012 follows: | |||||||||||||||
Weighted- | ||||||||||||||||
Weighted- | Average | Aggregate | ||||||||||||||
Shares | Average | Remaining | Intrinsic | |||||||||||||
Underlying | Exercise | Contractual | Value | |||||||||||||
Description | Warrants | Price | Term (in years) | (In-the-Money) | ||||||||||||
Outstanding and exercisable at December 31, 2011 | 800,000 | $ | 1.88 | 2.3 | $ | - | ||||||||||
Warrants issued with long-term notes payable | 402,778 | $ | 1.63 | 2.5 | $ | - | ||||||||||
Warrants expired (Series A) | (200,000 | ) | $ | - | - | $ | - | |||||||||
Outstanding and exerciseable at December 31, 2012 | 1,002,778 | $ | 1.85 | 2 | ||||||||||||
Warrants issued with long-tern Notes payable | 100,000 | $ | 0.45 | 1 | $ | 45,000 | ||||||||||
Warrants expired (Series B and C) | (200,000 | ) | ||||||||||||||
Outstanding and exerciseable at December 31, 2013 | 902,778 | $ | 1.39 | 1.2 | ||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | 'Details of stock option activity for the years ended December 31, 2013 and 2012 follows: | |||||||||||||||
Weighted- | ||||||||||||||||
Average | Aggregate | |||||||||||||||
Shares | Weighted | Remaining | Intrinsic | |||||||||||||
Underlying | Average | Contractual | Value | |||||||||||||
Description | Options | Exercise Price | Term (Years) | (In-the-Money) | ||||||||||||
Outstanding at December 31, 2011 | 875,000 | $ | 0.77 | 3.2 | $ | - | ||||||||||
Options granted | 750,000 | $ | 0.66 | 4.4 | $ | - | ||||||||||
Options forfeited | (225,000 | ) | $ | 0.77 | - | $ | - | |||||||||
Outstanding at December 31, 2012 | 1,400,000 | $ | 0.71 | 3.8 | $ | - | ||||||||||
Options granted | - | $ | - | - | $ | - | ||||||||||
Options forfeited | - | - | - | - | ||||||||||||
Outstanding at December 31, 2013 | 1,400,000 | $ | 0.71 | 2.8 | $ | - | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | 'The following summarizes outstanding stock options and their respective exercise prices at December 31, 2013: | |||||||||||||||
Shares | Remaining | |||||||||||||||
Underlying | Exercise | Dates of | Contractual | |||||||||||||
Description | Options | Price | Expiration | Term (in years) | ||||||||||||
Directors Options | 50,000 | $ | 0.77 | Jun-14 | 0.4 | |||||||||||
Officers Options | 600,000 | $ | 0.77 | Jun-16 | 2.4 | |||||||||||
Directors Options | 150,000 | $ | 1.15 | Jun-15 | 1.5 | |||||||||||
Officers Options | 600,000 | $ | 0.54 | Dec-17 | 3.9 | |||||||||||
1,400,000 | ||||||||||||||||
Options issued on December 1, 2012 [Member] | ' | |||||||||||||||
NOTE 8. STOCKHOLDERS' EQUITY (Tables) [Line Items] | ' | |||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 'Options to purchase up to a total of 600,000 shares of common stock were granted to three officers as they each were given employment agreements which included the right to purchase 200,000 shares of common stock at the price of $0.54 per share for the next two years. These options vest evenly every six months over the first two years of the five-year life of the options. The weighted-average estimated fair value of the stock options granted was $0.46 per share using the Black-Scholes model with the following assumptions: | |||||||||||||||
Expected volatility | 130.21% | |||||||||||||||
Risk-free interest rate | 0.61% | |||||||||||||||
Expected life | 5 years | |||||||||||||||
Dividend yield | 0% | |||||||||||||||
Options issued on June 28, 2012 [Member] | ' | |||||||||||||||
NOTE 8. STOCKHOLDERS' EQUITY (Tables) [Line Items] | ' | |||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 'Options to purchase up to a total of 150,000 shares of common stock were granted to the certain members of the Board of Directors. These options vested and became exercisable immediately. The weighted-average estimated fair value of the stock options granted was $1.15 per share using the Black-Scholes model with the following assumptions: | |||||||||||||||
Expected volatility | 136.00% | |||||||||||||||
Risk-free interest rate | 0.40% | |||||||||||||||
Expected life | 3 years | |||||||||||||||
Dividend yield | 0% |
NOTE_10_INCOME_TAXES_Tables
NOTE 10. INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 'Deferred tax assets consist of the following at December 31: | ||||||||
2013 | 2012 | ||||||||
Benefit from net operating loss carryforwards | $ | 2,041,083 | $ | 2,279,261 | |||||
Allowance for doubtful accounts | 119,889 | - | |||||||
Less: valuation allowance | (2,160,972 | ) | (2,279,261 | ) | |||||
$ | - | $ | - | ||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 'Following is a reconciliation of the (provision) benefit for federal income taxes as reported in the accompanying Statements of Operations, to the expected amount at the 34% federal statutory rate: | ||||||||
2013 | 2012 | ||||||||
Income tax benefit at the 34% statutory rate | $ | 212,864 | $ | 146,274 | |||||
Effect of state income taxes | 18,782 | 12,906 | |||||||
Non-deductible interest expense | (53,726 | ) | (98,487 | ) | |||||
Non-deductible wage expense | (97,920 | ) | - | ||||||
Expiration and adjustment of net operating loss carryforwards available | (186,706 | ) | - | ||||||
Non-deductible meals and entertainment | (11,563 | ) | - | ||||||
Less change in valuation allowance | 118,269 | (60,693 | ) | ||||||
Income tax (provision) benefit | $ | - | $ | - |
NOTE_2_GOING_CONCERN_CONSIDERA1
NOTE 2. GOING CONCERN CONSIDERATIONS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | |
Going Concern Disclosure [Abstract] | ' | ' | ' |
Retained Earnings (Accumulated Deficit) | ($13,644,433) | ($13,018,362) | ($15,004,698) |
Sales Revenue, Services, Net | 3,299,928 | 3,459,231 | ' |
Net Income (Loss) Attributable to Parent | ($626,071) | ($430,218) | ' |
NOTE_3_SUMMARY_OF_SIGNIFICANT_1
NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Accounting Policies [Abstract] | ' | ' |
Credit policy terms | '240 days | ' |
Allowance for Doubtful Accounts Receivable, Noncurrent | $352,615 | $52,628 |
Allocated Share-based Compensation Expense | $516,666 | $474,084 |
NOTE_4_ACQUISITIONS_Details
NOTE 4. ACQUISITIONS (Details) (Gleric Holdings [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Gleric Holdings [Member] | ' | ' |
NOTE 4. ACQUISITIONS (Details) [Line Items] | ' | ' |
Business Acquisition, Percentage of Voting Interests Acquired | ' | 100.00% |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares) | ' | 170,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Equipment | ' | $7,000 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | ' | 231,200 |
Share Price (in Dollars per share) | ' | $1.36 |
Amortization of Intangible Assets | $18,000 | $9,000 |
NOTE_4_ACQUISITIONS_Details_Sc
NOTE 4. ACQUISITIONS (Details) - Schedule of Business Acquisitions, by Acquisition (Gleric Holdings [Member], USD $) | Dec. 31, 2012 |
Gleric Holdings [Member] | ' |
Business Acquisition [Line Items] | ' |
Incentive to hire Dr. Groteke as Chief Technology Officer coupled with non-compete agreements for both Dr. Groteke and Dr. Pettersen | $54,000 |
Quad Video Halo system equipment | 7,000 |
Goodwill | 170,200 |
$231,200 |
NOTE_5_ACCOUNTS_RECEIVABLE_Det
NOTE 5. ACCOUNTS RECEIVABLE (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
NOTE 5. ACCOUNTS RECEIVABLE (Details) [Line Items] | ' | ' |
Discount rate used for recognition of revenue | 52.00% | 52.00% |
Net revenue recognized as percent of CPT code billings | 48.00% | 48.00% |
Collection period for receivables | '1 year | '1 year |
Percentage of cases subject to a settlement within one year | 40.00% | 49.00% |
Financing Receivable, Gross (in Dollars) | ' | $17,165 |
Collateralized Financings (in Dollars) | ' | 5,150 |
Percentage of cash consideration of gross feceivables factored | ' | 30.00% |
Factored gross receivable subject to provision of factoring (in Dollars) | $65,582 | ' |
Minimum [Member] | ' | ' |
NOTE 5. ACCOUNTS RECEIVABLE (Details) [Line Items] | ' | ' |
Collection period for receivables | '2 years | ' |
NOTE_6_DUE_TO_RELATED_PARTIES_1
NOTE 6. DUE TO RELATED PARTIES (Details) - Schedule of Related Party Transactions (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | ' | ' |
Due to related parties | $164,293 | $352,909 |
Northshore Orthopedics Associates [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due to related parties | 10,406 | 4,400 |
Chief Executive Officer [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due to related parties | 135,699 | 290,699 |
Spine Injury Physicians [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Due to related parties | $18,188 | $57,810 |
NOTE_7_NOTES_PAYABLE_AND_LONG_2
NOTE 7. NOTES PAYABLE AND LONG TERM DEBT (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Feb. 06, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | |
Subsequent Event [Member] | Balloon Payment Terms [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Convertible Debt [Member] | Secured Debt [Member] | ||
Convertible Debt [Member] | Secured Debt [Member] | Long-Term Note Payable Due June 30, 2015 [Member] | Debenture originally due March 9, 2015 [Member] | Notes Payable Due June 30, 2015 and March 9, 2017 [Member] | ||||||
NOTE 7. NOTES PAYABLE AND LONG TERM DEBT (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | $50,000 | ' | ' | ' | ' | $500,000 | $1,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | 10.00% | ' | ' | ' | ' | 12.00% | 12.00% |
Debt Instrument, Maturity Date | ' | 27-Mar-15 | ' | 30-Jun-15 | 9-Mar-17 | ' | ' | ' | 27-Mar-14 | ' |
Class of Warrant or Rights, Granted | 100,000 | 69,445 | ' | 50,000 | 50,000 | 100,000 | ' | ' | 69,445 | 333,333 |
Debt Instrument, Convertible, Conversion Price | ' | $1.50 | ' | $0.45 | ' | ' | ' | ' | $1.50 | ' |
Debt Instrument, Payment Terms | ' | ' | 'On the maturity date, one balloon payment of the entire outstanding principal amount plus any accrued and unpaid interest is due. | 'Interest is payable quarterly | ' | ' | ' | ' | 'This note provides for six quarterly payments of interest commencing on September 27, 2012, and continuing thereafter on December 27, March 27, June 27, and September 27 throughout the term of the promissory note. On the maturity date, a balloon payment of the entire outstanding principal plus any accrued but unpaid interest is due. | 'thirty-five monthly payments of interest commencing on September 29, 2013, and continuing thereafter on the 29 th day of each successive month throughout the term of the promissory note |
Debt Instrument, Maturity Date, Description | ' | 'This note was extended for one year on February 6, 2014 with the same provisions for quarterly interest payments with the note now maturing March 27, 2015 | ' | ' | 'extended the maturity date of a $50,000 third party note originally due March 9, 2015 for two additional years | ' | ' | ' | ' | 'three-year |
Class of Warrant or Right, Exercise Price of Warrants or Rights | ' | $0.43 | ' | ' | $0.45 | ' | ' | ' | $1.80 | $1.60 |
Warrants, weighted average estimated fair value | ' | ' | ' | ' | ' | $0.21 | ' | ' | $0.62 | $0.81 |
Interest Expense, Long-term Debt and Capital Securities | ' | ' | ' | ' | ' | ' | 44,662 | 56,808 | ' | ' |
Repayments of Debt | ' | ' | ' | ' | ' | ' | $350,000 | ' | ' | ' |
Debt Instrument, Issuance Date | ' | ' | ' | ' | ' | ' | ' | ' | 27-Jun-12 | 29-Aug-12 |
Warrant Expiration Date | ' | 6-Feb-15 | ' | ' | ' | ' | ' | ' | 27-Jun-14 | 29-Aug-15 |
Debt Instrument, Convertible, Terms of Conversion Feature | ' | 'The holder of the note continues to retain the right to convert the debt at $1.50 per share for the additional twelve months. | ' | ' | ' | ' | ' | ' | 'The holder of the note also has the right to convert into common stock, at $1.50 per share, up to 50% of the principal amount after twelve months and up to 100% of the principal amount after fifteen months from the original issue date. | ' |
Debt Instrument, Collateral | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'This promissory note is secured by $3,000,000 in gross accounts receivable |
NOTE_7_NOTES_PAYABLE_AND_LONG_3
NOTE 7. NOTES PAYABLE AND LONG TERM DEBT (Details) - Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques (Notes Payable, Other Payables [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Notes Payable, Other Payables [Member] | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' |
Expected volatility | 89.50% |
Risk-free interest rate | 0.31% |
Expected life | '2 years |
Dividend yield | 0.00% |
NOTE_7_NOTES_PAYABLE_AND_LONG_4
NOTE 7. NOTES PAYABLE AND LONG TERM DEBT (Details) - Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | 12 Months Ended |
Dec. 31, 2012 | |
Convertible Debt [Member] | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' |
Expected volatility | 128.00% |
Risk-free interest rate | 0.31% |
Expected life | '2 years |
Dividend yield | 0.00% |
Secured Debt [Member] | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' |
Expected volatility | 133.00% |
Risk-free interest rate | 0.36% |
Expected life | '3 years |
Dividend yield | 0.00% |
NOTE_7_NOTES_PAYABLE_AND_LONG_5
NOTE 7. NOTES PAYABLE AND LONG TERM DEBT (Details) - Schedule of Debt (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
NOTE 7. NOTES PAYABLE AND LONG TERM DEBT (Details) - Schedule of Debt [Line Items] | ' | ' |
Accretion of discount to interest expense | $113,358 | $41,679 |
Convertible Debt [Member] | ' | ' |
NOTE 7. NOTES PAYABLE AND LONG TERM DEBT (Details) - Schedule of Debt [Line Items] | ' | ' |
Proceeds received on issuance of notes in 2012 | ' | 500,000 |
Discount allocated to warrants | ' | -46,716 |
Note balances after discount | ' | 453,284 |
Accretion of discount to interest expense | 35,037 | 11,679 |
Note balances at period end | 488,321 | 464,963 |
Total allocated to additional paid in capital | 46,716 | 46,716 |
Unamortized discount at period end | 11,679 | 35,037 |
Contractual interest expense for period | 60,000 | 30,000 |
Effective interest rate on notes | 19.00% | 17.30% |
Secured Debt [Member] | ' | ' |
NOTE 7. NOTES PAYABLE AND LONG TERM DEBT (Details) - Schedule of Debt [Line Items] | ' | ' |
Proceeds received on issuance of notes in 2012 | ' | 1,000,000 |
Discount allocated to warrants | ' | -212,598 |
Note balances after discount | ' | 787,402 |
Accretion of discount to interest expense | 120,000 | 30,000 |
Note balances at period end | 907,402 | 817,402 |
Total allocated to additional paid in capital | 212,598 | 212,598 |
Unamortized discount at period end | 92,598 | 182,598 |
Contractual interest expense for period | $120,000 | $40,000 |
Effective interest rate on notes | 24.00% | 19.10% |
NOTE_7_NOTES_PAYABLE_AND_LONG_6
NOTE 7. NOTES PAYABLE AND LONG TERM DEBT (Details) - Schedule of Maturities of Long-term Debt (USD $) | Dec. 31, 2013 |
Contractual Amounts Due [Member] | ' |
NOTE 7. NOTES PAYABLE AND LONG TERM DEBT (Details) - Schedule of Maturities of Long-term Debt [Line Items] | ' |
2014 | $500,000 |
2015 | 1,050,000 |
2016 | 0 |
2017 | 50,000 |
Total | 1,600,000 |
Principal Amounts Due [Member] | ' |
NOTE 7. NOTES PAYABLE AND LONG TERM DEBT (Details) - Schedule of Maturities of Long-term Debt [Line Items] | ' |
2014 | 500,000 |
2015 | 945,723 |
2016 | 0 |
2017 | 50,000 |
Total | $1,495,723 |
NOTE_8_STOCKHOLDERS_EQUITY_Det
NOTE 8. STOCKHOLDERS' EQUITY (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Shares Issued, Price Per Share (in Dollars per share) | $0.32 | ' | ' |
Stock Issued During Period, Shares, Issued for Services | 300,000 | ' | ' |
Number of series of warrants | 4 | ' | ' |
Number of Investors | 5 | ' | ' |
Class of Warrant or Rights, Granted | 100,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 750,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | -225,000 | ' |
Allocated Share-based Compensation Expense (in Dollars) | $516,666 | $474,084 | ' |
Employee Stock Option [Member] | Options issued to each officer [Member] | Options issued on December 1, 2012 [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | 200,000 | ' |
Employee Stock Option [Member] | Options issued on June 28, 2012 [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | 150,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | ' | $1.15 | ' |
Employee Stock Option [Member] | Options issued on December 1, 2012 [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | 600,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | ' | $0.46 | ' |
Number of Officers | ' | 3 | ' |
Option Exercise Price (in Dollars per share) | ' | $0.54 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | ' | 'two years | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | ' | 'These options vest evenly every six months over the first two years of the five-year life of the options. | ' |
Employee Stock Option [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | ' | ' |
Fair value of options granted (in Dollars) | ' | 408,000 | ' |
Allocated Share-based Compensation Expense (in Dollars) | 288,000 | 300,000 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | 194,110 | ' | ' |
Compensation expense reconized last date | ' | 31-Dec-14 | ' |
Shares issued to each consultant [Member] | Shares issued to a consultant, December 2012 [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | ' | 10,000 | ' |
Warrants issued with debt [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Number of Investors | ' | 2 | ' |
Warrants issued with convertible note payable [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Class of Warrant or Rights, Granted | ' | 69,445 | ' |
Warrants issued with secured note payable [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Class of Warrant or Rights, Granted | ' | 333,333 | ' |
Series D Warrants [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Class of Warrant or Rights, Granted | ' | ' | 400,000 |
Deferred Finance Costs, Gross (in Dollars) | ' | ' | 279,000 |
Debt Instrument, Unamortized Discount (in Dollars) | 0 | ' | ' |
Interest Expense, Debt (in Dollars) | 55,786 | 111,600 | ' |
Series D Warrants [Member] | Minimum [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Warrants, weighted average estimated fair value (in Dollars per share) | ' | ' | $0.57 |
Series D Warrants [Member] | Maximum [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Warrants, weighted average estimated fair value (in Dollars per share) | ' | ' | $0.74 |
Northshore Orthopedics Associates [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Debt Conversion, Converted Instrument, Amount (in Dollars) | ' | $1,020,200 | ' |
Debt Conversion, Converted Instrument, Shares Issued | ' | 557,486 | ' |
Shares Issued, Price Per Share (in Dollars per share) | ' | $1.83 | ' |
Attorney's Fees [Member] | Shares issued for settlement [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Shares Issued, Price Per Share (in Dollars per share) | ' | $1.39 | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | ' | 100,000 | ' |
Shares issued for settlement [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Shares Issued, Price Per Share (in Dollars per share) | ' | $1.39 | ' |
Investment Owned, Balance, Shares | ' | 448,000 | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | ' | 135,000 | ' |
Shares issued for investor relations, July 2012 [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Shares Issued, Price Per Share (in Dollars per share) | ' | $1.14 | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | ' | 15,000 | ' |
Shares issued for investor relations, December 2012 [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Shares Issued, Price Per Share (in Dollars per share) | ' | $0.54 | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | ' | 30,000 | ' |
Shares issued a business development consultant [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Shares Issued, Price Per Share (in Dollars per share) | ' | $1.05 | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | ' | 300,000 | ' |
Shares issued to a consultant, December 2012 [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Shares Issued, Price Per Share (in Dollars per share) | ' | $0.54 | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | ' | 20,000 | ' |
Number of consultants | ' | 2 | ' |
Gleric Holdings [Member] | ' | ' | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) [Line Items] | ' | ' | ' |
Shares Issued, Price Per Share (in Dollars per share) | ' | $1.36 | ' |
Stock Issued During Period, Shares, Acquisitions | ' | 170,000 | ' |
NOTE_8_STOCKHOLDERS_EQUITY_Det1
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Renewal Loan Warrants [Member] | Shares Underlying Warrants [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Shares Underlying Warrants | 100,000 |
Renewal Loan Warrants [Member] | Exercise Price [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Exercise Price (in Dollars per Share) | 0.45 |
Renewal Loan Warrants [Member] | Dates of Expiration [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Dates of Expiration | 30-Jun-15 |
Renewal Loan Warrants [Member] | Remaining Contractual Term [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Remaining Contractual Term | '1 year 6 months |
Series D Warrants [Member] | Shares Underlying Warrants [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Shares Underlying Warrants | 200,000 |
Series D Warrants [Member] | Exercise Price [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Exercise Price (in Dollars per Share) | 1 |
Series D Warrants [Member] | Dates of Expiration [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Dates of Expiration | 31-Dec-14 |
Series D Warrants [Member] | Remaining Contractual Term [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Remaining Contractual Term | '1 year |
Series D Warrants [Member] | Shares Underlying Warrants [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Shares Underlying Warrants | 200,000 |
Series D Warrants [Member] | Exercise Price [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Exercise Price (in Dollars per Share) | 1 |
Series D Warrants [Member] | Dates of Expiration [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Dates of Expiration | 31-Mar-15 |
Series D Warrants [Member] | Remaining Contractual Term [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Remaining Contractual Term | '1 year 109 days |
Warrants issued with convertible note payable [Member] | Shares Underlying Warrants [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Shares Underlying Warrants | 69,445 |
Warrants issued with convertible note payable [Member] | Exercise Price [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Exercise Price (in Dollars per Share) | 1.8 |
Warrants issued with convertible note payable [Member] | Dates of Expiration [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Dates of Expiration | 30-Sep-14 |
Warrants issued with convertible note payable [Member] | Remaining Contractual Term [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Remaining Contractual Term | '6 months |
Warrants issued with secured note payable [Member] | Shares Underlying Warrants [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Shares Underlying Warrants | 333,333 |
Warrants issued with secured note payable [Member] | Exercise Price [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Exercise Price (in Dollars per Share) | 1.6 |
Warrants issued with secured note payable [Member] | Dates of Expiration [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Dates of Expiration | 31-Aug-15 |
Warrants issued with secured note payable [Member] | Remaining Contractual Term [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Remaining Contractual Term | '1 year 255 days |
Shares Underlying Warrants [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Activity [Line Items] | ' |
Shares Underlying Warrants | 902,778 |
NOTE_8_STOCKHOLDERS_EQUITY_Det2
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Valuation Assumptions (Series D Warrants [Member]) | 12 Months Ended |
Dec. 31, 2011 | |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Valuation Assumptions [Line Items] | ' |
Expected volatility | 187.74% |
Risk-free interest rate | 1.25% |
Expected life | '4 years |
Estimated forfeitures | '0%, based on limited forfeiture history |
Dividend yield | 0.00% |
Minimum [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Warrant Valuation Assumptions [Line Items] | ' |
Expected volatility | 177.23% |
Risk-free interest rate | 0.52% |
NOTE_8_STOCKHOLDERS_EQUITY_Det3
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Stockholders' Equity Note, Warrants or Rights (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Class of Warrant or Right [Line Items] | ' | ' |
Shares underlying warrants, warrants issued | 100,000 | ' |
Shares Underlying Warrants [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Shares underlying warrants, warrants outstanding | 1,002,778 | 800,000 |
Shares underlying warrants, warrants issued | 100,000 | 402,778 |
Shares underlying warrants, warrants expired | -200,000 | -200,000 |
Shares underlying warrants, warrants outstanding | 902,778 | 1,002,778 |
Weighted-Average Exercise Price [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Weighted average exercise price, warrants outstanding | 1.85 | 1.88 |
Weighted average exercise price, warrants issued | 0.45 | 1.63 |
Weighted average exercise price, warrants expired | 0 | 0 |
Weighted average exercise price, warrants outstanding | 1.39 | 1.85 |
Weighted-Average Remaining Contractual Term [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Weighted-average remaining contractual term, warrants outstanding | '2 years | '2 years 109 days |
Weighted-average remaining contractual term, warrants issued | '1 year | '2 years 6 months |
Weighted-average remaining contractual term, warrants expired | '0 years | '0 years |
Weighted-average remaining contractual term, warrants outstanding | '1 year 73 days | '2 years |
Aggregate Intrinsic Value [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Aggregate intrinsic value, warrants outstanding | 0 | 0 |
Aggregate intrinsic value, warrants issued | 45,000 | 0 |
Aggregate intrinsic value, warrants expired | 0 | 0 |
Aggregate intrinsic value, warrants outstanding | 0 | 0 |
NOTE_8_STOCKHOLDERS_EQUITY_Det4
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Options issued on June 28, 2012 [Member]) | 12 Months Ended |
Dec. 31, 2012 | |
Options issued on June 28, 2012 [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Line Items] | ' |
Expected volatility | 136.00% |
Risk-free interest rate | 0.40% |
Expected life | '3 years |
Dividend yield | 0.00% |
NOTE_8_STOCKHOLDERS_EQUITY_Det5
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Options issued on December 1, 2012 [Member]) | 12 Months Ended |
Dec. 31, 2012 | |
Options issued on December 1, 2012 [Member] | ' |
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Line Items] | ' |
Expected volatility | 130.21% |
Risk-free interest rate | 0.61% |
Expected life | '5 years |
Dividend yield | 0.00% |
NOTE_8_STOCKHOLDERS_EQUITY_Det6
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Schedule of Share-based Compensation, Stock Options, Activity (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Share-based Compensation, Stock Options, Activity [Abstract] | ' | ' | ' |
Shares underlying options, options outstanding | 1,400,000 | ' | 875,000 |
Weighted average exercise price, options outstanding | $0.71 | ' | $0.77 |
Weighted average remaining contractual term, options outstanding | '2 years 292 days | '3 years 292 days | '3 years 73 days |
Aggregate Intrinsic value, options outstanding | $0 | ' | $0 |
Shares underlying options, options granted | 0 | 750,000 | ' |
Weighted average exercise price, options granted | $0 | $0.66 | ' |
Weighted average remaining contractual term, options granted | '0 years | '4 years 146 days | ' |
Aggregate Intrinsic value, options granted | 0 | 0 | ' |
Shares underlying options, options forfeited | 0 | -225,000 | ' |
Weighted average exercise price, options forfeited | $0 | $0.77 | ' |
Weighted average remaining contractual term, options forfeited | '0 years | '0 years | ' |
Aggregate Intrinsic value, options forfeited | 0 | 0 | ' |
Shares underlying options, options outstanding | 1,400,000 | 1,400,000 | ' |
Weighted average exercise price, options outstanding | $0.71 | $0.71 | ' |
Aggregate Intrinsic value, options outstanding | $0 | $0 | ' |
NOTE_8_STOCKHOLDERS_EQUITY_Det7
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | ||||
Options Exercise Price $0.77 [Member] | Options Exercise Price $0.77 [Member] | Options Exercise Price $1.15 [Member] | Options Exercise Price $0.54 [Member] | |||||
Director [Member] | Officer [Member] | Director [Member] | Officer [Member] | |||||
NOTE 8. STOCKHOLDERS' EQUITY (Details) - Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Underlying Options | 1,400,000 | 1,400,000 | 875,000 | 50,000 | 600,000 | 150,000 | 600,000 | 1,400,000 |
Exercise Price (in Dollars per share) | ' | ' | ' | $0.77 | $0.77 | $1.15 | $0.54 | ' |
Dates of Expiration | ' | ' | ' | 30-Jun-14 | 30-Jun-16 | 30-Jun-15 | 31-Dec-17 | ' |
Remaining Contractual Term | ' | ' | ' | '146 days | '2 years 146 days | '1 year 6 months | '3 years 328 days | ' |
NOTE_9_RELATED_PARTY_TRANSACTI1
NOTE 9. RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
NOTE 9. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ' | ' |
Due to Related Parties, Current | $164,293 | $352,909 |
Related Party Costs | 719,270 | 761,832 |
Northshore Orthopedics Associates [Member] | ' | ' |
NOTE 9. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 100.00% | ' |
Due to Related Parties, Current | 10,406 | 4,400 |
Debt Conversion, Converted Instrument, Amount | ' | 1,020,200 |
Share Price (in Dollars per share) | ' | $1.83 |
Debt Conversion, Converted Instrument, Shares Issued (in Shares) | ' | 557,486 |
Chief Executive Officer [Member] | ' | ' |
NOTE 9. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ' | ' |
Due to Related Parties, Current | 135,699 | 290,699 |
Spine Injury Physicians [Member] | ' | ' |
NOTE 9. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ' | ' |
Equity Method Investment, Ownership Percentage | 100.00% | ' |
Due to Related Parties, Current | 18,188 | 57,810 |
Related Party Costs | 352,302 | 459,532 |
Third Party Cost | ' | 296,299 |
Majority Shareholder [Member] | ' | ' |
NOTE 9. RELATED PARTY TRANSACTIONS (Details) [Line Items] | ' | ' |
Related Party Transaction, Rate | ' | 6.00% |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | 5.00% |
Loss Contingency, Damages Awarded, Value | ' | 200,000 |
Other Income | ' | $66,000 |
NOTE_10_INCOME_TAXES_Details
NOTE 10. INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
NOTE 10. INCOME TAXES (Details) [Line Items] | ' | ' |
Effective Income Tax Rate Reconciliation, Percent | 37.00% | ' |
Deferred Tax Assets, Valuation Allowance | $2,160,972 | $2,279,261 |
Operating Loss Carryforwards | $6,003,185 | $7,043,430 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% |
Minimum [Member] | ' | ' |
NOTE 10. INCOME TAXES (Details) [Line Items] | ' | ' |
Net operating loss carryforwards beginning expiration year | '2018 | ' |
Maximum [Member] | ' | ' |
NOTE 10. INCOME TAXES (Details) [Line Items] | ' | ' |
Net operating loss carryforwards beginning expiration year | '2031 | ' |
NOTE_10_INCOME_TAXES_Details_S
NOTE 10. INCOME TAXES (Details) - Schedule of Deferred Tax Assets and Liabilities (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Deferred Tax Assets and Liabilities [Abstract] | ' | ' |
Benefit from net operating loss carryforwards | $2,041,083 | $2,279,261 |
Allowance for doubtful accounts | 119,889 | 0 |
Less: valuation allowance | -2,160,972 | -2,279,261 |
$0 | $0 |
NOTE_10_INCOME_TAXES_Details_S1
NOTE 10. INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ' | ' |
Income tax benefit at the 34% statutory rate | $212,864 | $146,274 |
Effect of state income taxes | 18,782 | 12,906 |
Non-deductible interest expense | -53,726 | -98,487 |
Non-deductible wage expense | -97,920 | 0 |
Expiration and adjustment of net operating loss carryforwards available | -186,706 | 0 |
Non-deductible meals and entertainment | -11,563 | 0 |
Less change in valuation allowance | 118,269 | -60,693 |
Income tax (provision) benefit | $0 | $0 |
NOTE_10_INCOME_TAXES_Details_S2
NOTE 10. INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation (Parentheticals) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ' | ' |
Statutory rate | 34.00% | 34.00% |