| 2. Significant Accounting Policies | Going
Concern The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has
incurred net losses of $61,531 and $151,425 for the three month periods ended June 30, 2016 and 2015, respectively. The Company
has incurred net losses of $179,420 and $1,722,923 for the six month periods ended June 30, 2016 and 2015, respectively. The Company's
history of recurring losses has resulted in an accumulated deficit of $12,439,568. The Company has negative working capital and
operations have not provided cash flows. Additionally, the Company does not currently have sufficient revenue to cover its operating
expenses and meet its current obligations. In view of these matters, the Company's ability to continue as a going concern is dependent
upon the Company's ability to expand operations and to achieve a level of profitability. The Company intends on financing its
future development activities and its working capital needs largely from the sale of public equity securities with some additional
funding from other traditional financing sources, including term notes until such time that funds provided by operations are sufficient
to fund working capital requirements. The financial statements of the Company do not include any adjustments relating to the recoverability
and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company
be unable to continue as a going concern. The
Chief Executive Officer has agreed to advance funds or make payments of the Company's obligations at his discretion. There is
no written agreement to continue this support. Use
of Estimates The
preparation of financial statements in conformity with generally accepted accounting principles requires the Company's management
to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements
and the reported amounts of income and expenses during the reported period. Changes in the economic environment, financial markets,
as well as in the healthcare industry, and any other parameters used in determining these estimates, could cause actual results
to differ. Revenue
Recognition The
Company recognizes revenues when persuasive evidence of an arrangement exists, product has been delivered or services have been
rendered, the price is fixed or determinable and collectability is reasonably assured. Revenue is recognized net of estimated
sales returns and allowances. Revenues
are attributable to the sale of medical products through distributor agreements. The principal terms of the distributor agreements
provide that the distributor orders be accompanied by partial payment in advance, which at least equals 50% of total manufactured
cost, as defined, for orders for distributor inventory and, in addition, an agreed portion of the distributor's gross profit on
special orders. The balance of the manufactured cost is due from the distributor at the time of shipment. The Company is also
entitled to an agreed percentage of the distributor's profit on receipt by the distributor. The Company defers all amounts received
in advance of shipment and recognizes as revenue the aggregate of amounts invoiced in advance and an estimate of the Company's
portion of distributor's profit at the time of shipment. Trade
Accounts Receivable We
record accounts receivable at the invoiced amount and we do not charge interest. We review the accounts receivable by amounts
due from customers which are past due, to identify specific customers with known disputes or collectability issues. In determining
the amount of the reserve, we make judgments about the creditworthiness of significant customers based on ongoing credit evaluations.
We will also maintain a sales allowance to reserve for potential credits issued to customers. We will determine the amount of
the reserve based on historical credits issued. There
was no provision for doubtful accounts recorded at June 30, 2016 and December 31, 2015, as we have not experienced any bad debts
from any of our customers. Inventory Inventory
is valued at the lower of cost or market using the first-in, first-out (FIFO) method. Inventory on the balance sheet consists
of raw materials purchased by the Company. Per the Company's operating agreement with Hemo Manufacturing LLC, the lowest price
to produce and distribute a four square inch of inventory is $0.86, which will be recorded upon completion of the manufacturing
process. Stock
Based Compensation The
Company issues restricted stock to consultants and employees for various services. Cost for these transactions are measured at
the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable.
The value of the common stock for non-employees is measured at the date at which a firm commitment for performance by the counterparty
to earn the equity instruments is reached and expense is recognized during the term at which the counterparty's performance is
earned or at the date the shares are considered non-forfeitable. The Company recognized consulting expenses and a corresponding
increase to additional paid-in-capital related to stock issued for services. Compensation for employee stock grants are recognized
at the fair market value of the shares at the date of grant and recognized at the grant date, as it is considered that the shares
issued are considered non-forfeitable at the date of grant. Stock compensation for the periods presented were issued for past
services provided, accordingly, all shares issued are fully vested, and there is no unrecognized compensation associated with
these transactions. Per
Share Information Basic
earnings per share are calculated using the weighted average number of common shares outstanding for the period presented. Diluted
loss per share is the same as basic loss per share, as the effect of potentially dilutive securities (-0- options and -0- warrants
at June 30, 2016 and June 30, 2015) is anti-dilutive. New
Accounting Pronouncements; Recently Adopted Accounting Pronouncements In
March 2016, the FASB issued issued Accounting Standards Update (ASU) No. ASU 2016-09, Compensation - Stock Compensation, Improvements
to Employee Share-Based payment Accounting (Topic 718). In
February 2016, the FASB issued Accounting Standards Update (ASU) No. ASU 2016-02, Leases, In
July 2015, the FASB issued Accounting Standards Update (ASU) No. ASU 2015-11, Simplifying the Subsequent Measurement of Inventory In
August 2014, FASB issued Accounting Standards Update (ASU) No. 2014-15 Preparation of Financial Statements Going Concern
(Subtopic 205-40), Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. Presentation of
Financial StatementsLiquidation Basis of Accounting In
May 2014, FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers The
Company considers all new pronouncements and management has determined that there have been no other recently adopted or issued
accounting standards that had or will have a material impact on its Financial Statements. |
