| Summary of Significant Accounting Policies | NOTE 2 - SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES: The accompanying consolidated
financial statements of Medical Innovation Holdings, Inc. and its subsidiaries were prepared in accordance with GAAP and include
the assets, liabilities, revenues, and expenses of subsidiaries. All intercompany balances and transactions have been eliminated
in consolidation. Use of Estimates The preparation of
our consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial
statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions
are used for, but are not limited to;
1) Revenue recognition;
2) Allowance for doubtful accounts;
3) Inventory costs;
4) Asset impairments;
5) Depreciable lives of assets;
6) Income tax reserves and valuation allowances;
7) Fair value of stock options;
8) Allocation of direct and indirect cost of sales; and
9) Contingent liabilities. Future events and
their effects cannot be predicted with certainty; accordingly, our accounting estimates require judgment. We base our estimates
on historical experience, available market information, appropriate valuation methodologies, and on various other assumptions that
we believe to be reasonable. We evaluate and update our assumptions and estimates on an ongoing basis and may employ outside experts
to assist in our evaluation, when necessary. Actual results could differ materially from these estimates. Revenue Recognition Revenue Recognition
is recognized when earned. The Company’s revenue recognition policies are in compliance with SEC Staff Accounting Bulletin
(SAB) 104. Sales revenue is recognized at the date services are rendered and no other significant obligations of the Company exist
and collectability is reasonably assured. Payments received before all of the relevant criteria for revenue recognition are satisfied,
are recorded as unearned revenue. Cash and Cash Equivalents The Company considers
all liquid investments with a maturity of three months or less from the date of purchase that are readily convertible into cash
to be cash equivalents. The Company maintains its cash in bank deposit accounts that does not exceed federally insured limits.
The Company has not experienced any losses in such accounts. Accounts Receivable The Company reviews
its accounts receivables accounts periodically for collectability and establishes an allowance for doubtful accounts and records
bad debt expense when deemed necessary. Advertising costs Advertising costs
are expensed as incurred. The Company recorded no advertisement costs in the 12 months ended April 30, 2017. Inventory We carry our inventories
at the lower of their cost or market value. Cost is determined using first-in, first-out (“FIFO”) method. Market is
determined based on net realizable value. We also provide due consideration to obsolescence, excess quantities, and other factors
in evaluating net realizable value. Fixed Assets Capital assets are
stated at cost. Equipment consists of medical equipment and related assets. Depreciation of fixed assets is provided using the
straight-line method over the estimated useful lives (3-7 years) of the assets. Expenditures for maintenance and repairs are charged
to expense as incurred.
Property and Equipment No. of Years
Medical Equipment 7 years
Telemedicine Equipment 3 years
Computers 3 years
Furniture 5 years
Office Equipment 5 years
Office Phone 3 years Long Lived Assets The Company adopted
Statement of Financial Accounting Standard No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”
(“SFAS 144”), now codified in ASC 350,which addresses financial accounting and reporting for the impairment or disposal
of long-lived assets and supersedes SFAS No. 121, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed Of,” and the accounting and reporting provisions of APB Opinion No. 30, “Reporting the Results
of Operations for a Disposal of a Segment of a Business.” The Company periodically evaluates the carrying value of long-lived
assets to be held and used in accordance with ASC 350. ASC 350 requires impairment losses to be recorded on long-lived assets used
in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets
are less than the assets’ carrying amounts. In that event, a loss is recognized based on the amount by which the carrying
amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar
manner, except that fair market values are reduced. Income Taxes The Company uses the
liability method of accounting for income taxes under which deferred tax assets and liabilities are recognized for the future tax
consequences of temporary differences between the accounting bases and the tax bases of the Company’s assets and liabilities.
Any deferred tax assets and liabilities are computed using enacted tax rates in effect for the year in which the temporary differences
are expected to reverse. GAAP generally requires
that recognized revenue, expenses, gains and losses be included in net income. Certain statements, however, require entities to
report specific changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, as a separate
component of the equity section of the balance sheet. Such items, along with net income, are components of comprehensive income. Issuance of Shares
for Service The Company accounts
for employee and non-employee stock awards under ASC 718, whereby equity instruments issued to employees for services are recorded
based on the fair value of the instrument issued and those issued to non-employees are recorded based on the fair value of the
consideration received or the fair value of the equity instrument, whichever is more reliably measurable. Foreign Currency
Translations and Hedging The Company will be
exposed to foreign currency fluctuations due to international trade. Management does not intend to enter into forward exchange
contracts or any derivative financial investments for trading purposes. There is no present international trade and as such management
does not currently hedge foreign currency exposure. Basic and Diluted
Net Loss per Share Net loss per share
is calculated in accordance with FASB ASC 105. Basic net loss per share is based upon the weighted average number of common shares
outstanding. Diluted net loss per share is based on the assumption that all dilutive convertible shares and stock options were
converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are
assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby
were used to purchase common stock at the average market price during the period. Products and Services,
Geographic Areas and Major Customers The Company intends
to establish a nationwide, state-by-state, multi-disciplinary medical specialist provider/practice network, staffed by sixteen
types of physician specialists. These specialist physicians will provide virtual medical consultations to the potential millions
of rural patients who are chronically underserved. This will be accomplished via a seamless, comprehensive, sophisticated end-to-end
virtual medicine program. Recently issued
accounting pronouncements In May 2014, the Financial
Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) amending revenue recognition
guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing,
and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB deferred the effective
date of the revenue recognition guidance to reporting periods beginning after December 15, 2017. Early adoption is permitted for
reporting periods beginning after December 15, 2016. In August 2014, the
FASB issued ASU No. 2014-15, “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern”
(“ASU 2014-15”), which requires management to perform interim and annual assessments of an entity’s ability to
continue as a going concern within one year of the date the financial statements are issued and provides guidance on determining
when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions
give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 applies to all entities
and is effective for annual and interim reporting periods ending after December 15, 2016, with early adoption permitted. This standard
has no material effect on our financial statements In November 2015,
the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes”. The new guidance requires that all
deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet.
This update is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods.
This standard has no material effect on our financial statements In February 2016,
the FASB issued ASU No. 2016-02, Leases (Topic 842). The guidance in ASU 2016-02 supersedes the lease recognition requirements
in ASC Topic 840, Leases (FAS 13). ASU 2016-02 requires an entity to recognize assets and liabilities arising from a lease for
both financing and operating leases, along with additional qualitative and quantitative disclosures. ASU 2016-02 is effective for
fiscal years beginning after December 15, 2018, with early adoption permitted. In March 2016, the
FASB issued an ASU amending the accounting for stock-based compensation and requiring excess tax benefits and deficiencies to be
recognized as a component of income tax expense rather than equity. This guidance also requires excess tax benefits to be presented
as an operating activity on the statement of cash flows and allows an entity to make an accounting policy election to either estimate
expected forfeitures or to account for them as they occur. The ASU is effective for reporting periods beginning after December
15, 2016, with early adoption permitted This standard has no material effect on our financial statements As of April 30, 2017,
there are no recently issued accounting standards not yet adopted that would have a material effect on the Company’s financial
statements to have a material impact on the Company’s CFS. |
