Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 10, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PACIFIC HEALTH CARE ORGANIZATION INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 794,072 | |
Amendment Flag | false | |
Entity Central Index Key | 1,138,476 | |
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 | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash | $ 3,281,140 | $ 2,946,025 |
Accounts receivable, net of allowance of $67,260 and $40,510 | 1,508,168 | 1,868,181 |
Deferred tax asset | 77,059 | 77,059 |
Prepaid income taxes | 240,359 | 2,703 |
Prepaid expenses | 88,178 | 77,278 |
Total current assets | 5,194,904 | 4,971,246 |
Property and Equipment, net | ||
Computer equipment | 294,405 | 222,240 |
Furniture and fixtures | 149,541 | 92,191 |
Office equipment | 27,160 | 27,160 |
Office equipment under capital lease | 0 | 63,923 |
Total property and equipment | 471,106 | 405,514 |
Less: accumulated depreciation and amortization | (245,472) | (226,329) |
Net property and equipment | 225,634 | 179,185 |
Other Assets | 26,788 | 8,158 |
Total assets | 5,447,326 | 5,158,589 |
Current Liabilities | ||
Accounts payable | 133,925 | 240,214 |
Accrued expenses | 282,477 | 261,510 |
Income tax payable | 4,867 | 9,348 |
Current obligations under capital lease | 0 | 8,151 |
Deferred rent expense | 258 | 14,332 |
Dividend payable | 133,420 | 0 |
Unearned revenue | 40,904 | 0 |
Total current liabilities | 595,851 | 533,555 |
Commitments and Contingencies | 0 | 0 |
Shareholders’ Equity | ||
Preferred stock; 5,000,000 shares authorized at $0.001 par value; zero shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value 50,000,000 shares authorized at September 30, 2015 and December 31, 2014; 802,424 shares issued, (794,072 outstanding net of treasury shares) and 802,424 shares issued, (800,396 outstanding net of treasury shares), respectively | 794 | 800 |
Additional paid-in capital | 623,637 | 623,631 |
Treasury stock at cost (8,269 shares and 2,028 shares at September 30, 2015 and December 31, 2014), respectively | (254,057) | (76,715) |
Retained earnings | 4,481,101 | 4,077,318 |
Total stockholders’ equity | 4,851,475 | 4,625,034 |
Total liabilities and stockholders’ equity | $ 5,447,326 | $ 5,158,589 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts receivable, allowance (in Dollars) | $ 67,260 | $ 40,510 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 802,424 | 802,424 |
Common stock, shares outstanding | 794,072 | 800,396 |
Treasury stock | 8,269 | 2,028 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
UR fees | $ 1,027,893 | $ 1,362,283 | $ 3,004,023 | $ 3,063,833 |
MBR fees | 201,903 | 526,341 | 855,089 | 1,444,524 |
HCO fees | 273,089 | 260,069 | 920,789 | 778,869 |
MPN fees | 224,128 | 285,415 | 779,941 | 797,449 |
NCM fees | 216,216 | 242,376 | 695,755 | 753,839 |
Other | 126,352 | 76,032 | 444,187 | 240,882 |
Total revenues | 2,069,581 | 2,752,516 | 6,699,784 | 7,079,396 |
Expenses: | ||||
Depreciation and amortization | 16,011 | 12,642 | 44,686 | 35,408 |
Bad debt provision | 9,750 | 15,851 | 26,677 | 24,991 |
Consulting fees | 90,063 | 76,790 | 268,588 | 229,010 |
Salaries and wages | 555,666 | 699,096 | 1,874,572 | 1,878,041 |
Professional fees | 99,418 | 109,871 | 315,357 | 338,403 |
Insurance | 83,283 | 82,155 | 256,265 | 225,035 |
Outsource service fees | 295,507 | 658,233 | 963,059 | 1,324,248 |
Data maintenance | 11,819 | 12,953 | 120,413 | 53,685 |
General and administrative | 139,035 | 133,449 | 436,644 | 396,156 |
Total expenses | 1,300,552 | 1,801,040 | 4,306,261 | 4,504,977 |
Income from operations | 769,029 | 951,476 | 2,393,523 | 2,574,419 |
Other expense | ||||
Interest expense | (6) | (258) | (201) | (956) |
Total other expense | (6) | (258) | (201) | (956) |
Income before taxes | 769,023 | 951,218 | 2,393,322 | 2,573,463 |
Income tax provision | 319,992 | 395,803 | 996,949 | 1,070,822 |
Net income | $ 449,031 | $ 555,415 | $ 1,396,373 | $ 1,502,641 |
Basic and fully diluted earnings per share: | ||||
Earnings per share amount (in Dollars per share) | $ 0.57 | $ 0.69 | $ 1.76 | $ 1.87 |
Weighted average common shares outstanding (in Shares) | 794,072 | 802,424 | 794,072 | 802,424 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 1,396,373 | $ 1,502,641 |
Adjustments to reconcile net income to net cash: | ||
Depreciation and amortization | 44,686 | 35,408 |
Changes in operating assets and liabilities | ||
Increase (decrease) in bad debt provision | 26,750 | (327) |
Decrease (increase) in accounts receivable | 333,263 | (567,614) |
(Increase) in other assets | (18,630) | (5,544) |
(Increase) decrease in prepaid income tax | (237,656) | 6,568 |
(Increase) in prepaid expenses | (10,900) | (6,703) |
(Decrease) increase in accounts payable | (106,289) | 225,270 |
Increase in accrued expenses | 20,967 | 56,170 |
(Decrease) increase in income tax payable | (4,481) | 153,121 |
(Decrease) in deferred rent expense | (14,074) | (5,448) |
Increase in unearned revenue | 40,904 | 0 |
Net cash provided by operating activities | 1,470,913 | 1,393,542 |
Cash flows used in investing activities | ||
Purchases of computers, furniture and equipment | (91,135) | (69,855) |
Net cash used by investing activities | (91,135) | (69,855) |
Cash flows used in financing activities | ||
Purchase of treasury stock | (177,342) | 0 |
Issuance of cash dividend | (859,170) | 0 |
Payment of obligation under capital lease | (8,151) | (9,787) |
Net cash used in financing activities | (1,044,663) | (9,787) |
Increase in cash | 335,115 | 1,313,900 |
Cash at beginning of period | 2,946,025 | 1,265,535 |
Cash at end of period | 3,281,140 | 2,579,435 |
Cash paid for: | ||
Interest | 205 | 959 |
Income taxes paid | 1,239,086 | 911,134 |
Non-cash financing and investing activities: | ||
Dividend payable | $ 133,420 | $ 0 |
NOTE 1 - BASIS OF FINANCIAL STA
NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | NOTE 1 – BASIS OF FINANCIAL STATEMENT PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “Commission”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted in accordance with such rules and regulations. The information furnished in these interim condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim condensed consolidated financial statements be read in conjunction with the Company’s audited financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2014. Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015. Revenue Recognition Accounts Receivables and Bad Debt Allowance 9/30/15 12/31/14 Customer A 38 % 25 % Customer B 20 % 22 % Reclassifications |
NOTE 2 - SHAREHOLDERS' EQUITY
NOTE 2 - SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 2 – SHAREHOLDERS’ EQUITY |
NOTE 3 - SUBSEQUENT EVENTS
NOTE 3 - SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 3 – SUBSEQUENT EVENTS In a letter dated |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition |
Receivables, Policy [Policy Text Block] | Accounts Receivables and Bad Debt Allowance 9/30/15 12/31/14 Customer A 38 % 25 % Customer B 20 % 22 % |
Reclassification, Policy [Policy Text Block] | Reclassifications |
NOTE 1 - BASIS OF FINANCIAL S10
NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Credit Concentration Risk [Member] | |
NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION (Tables) [Line Items] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | The percentages of the amounts due from major customers to total accounts receivable as of September 30, 2015 and December 31, 2014 are as follows: 9/30/15 12/31/14 Customer A 38 % 25 % Customer B 20 % 22 % |
NOTE 1 - BASIS OF FINANCIAL S11
NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Allowance for Doubtful Accounts Receivable | $ 67,260 | $ 40,510 |
NOTE 1 - BASIS OF FINANCIAL S12
NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION (Details) - Schedules of Credit Concentration Risk - Accounts Receivable [Member] - Credit Concentration Risk [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Customer A [Member] | ||
Concentration Risk [Line Items] | ||
Credit Concentration Risk, Percentage | 38.00% | 25.00% |
Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Credit Concentration Risk, Percentage | 20.00% | 22.00% |
NOTE 2 - SHAREHOLDERS' EQUITY (
NOTE 2 - SHAREHOLDERS' EQUITY (Details) - USD ($) | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 14, 2015 | Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | ||||
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share) | $ 1.25 | |||
Common Stock, Shares, Outstanding (in Shares) | 794,072 | 794,072 | 800,396 | |
Payments of Dividends | $ 859,170 | $ 0 | ||
Dividends Payable, Current | $ 133,420 | $ 0 | $ 0 |
NOTE 3 - SUBSEQUENT EVENTS (Det
NOTE 3 - SUBSEQUENT EVENTS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
NOTE 3 - SUBSEQUENT EVENTS (Details) [Line Items] | |||||
UR Fees | $ 1,027,893 | $ 1,362,283 | $ 3,004,023 | $ 3,063,833 | |
NCM Fees | 216,216 | 242,376 | 695,755 | 753,839 | |
MPN Fees | 224,128 | 285,415 | 779,941 | 797,449 | |
Revenues | $ 2,069,581 | $ 2,752,516 | 6,699,784 | 7,079,396 | |
AmTrust North America [Member] | |||||
NOTE 3 - SUBSEQUENT EVENTS (Details) [Line Items] | |||||
UR Fees | 2,223,965 | 1,426,760 | |||
NCM Fees | 563 | 0 | |||
MPN Fees | $ 58,140 | $ 40,205 | |||
Revenues | $ 1,804,095 |