Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 12, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'Integrated Inpatient Solutions, Inc. | ' |
Entity Central Index Key | '0001174672 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 54,012,365 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
Balance_Sheets_Unaudited
Balance Sheets (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
CURRENT ASSETS | ' | ' |
Cash | $443,319 | $538,633 |
Accounts receivable, net | 9,549 | ' |
Refundable income taxes | 196,661 | 121,677 |
Total current assets | 649,529 | 660,310 |
Property and equipment, net | 1,185 | 3,567 |
Other assets | ' | ' |
Deposits | 954 | 954 |
TOTAL ASSETS | 651,668 | 664,831 |
CURRENT LIABILITIES | ' | ' |
Accounts payable and accrued liabilities | 52,707 | 51,407 |
Deferred revenue | 28,200 | ' |
Liabilities from discontinued operation | 109,379 | 119,379 |
Total current liabilities | 190,286 | 170,786 |
TOTAL LIABILITIES | 190,286 | 170,786 |
Stockholders Equity | ' | ' |
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 250,000 shares issued and oustanding as of June 30, 2014 and December 31, 2013, respectively | 25 | 25 |
Common stock, $0.0001 par value, 300,000,000 shares authorized, 54,012,365 and 48,612,365 shares issued and outstanding as of June 30, 014 and December 31, 2013, respectively. | 5,401 | 4,861 |
Additional paid-in capital | 185,714 | 137,114 |
Retaining earnings | 270,242 | 352,045 |
Total Stockholders Equity | 461,382 | 494,045 |
Total Liabilities and Stockholders' Equity | $651,668 | $664,831 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred Stock Par Value | $0.00 | $0.00 |
Preferred Stock Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock Shares Issued | 250,000 | 250,000 |
Preferred Stock Shares Outstanding | 250,000 | 250,000 |
Common Stock Par Value | $0.00 | $0.00 |
Common Stock Shares Authorized | 300,000,000 | 300,000,000 |
Common Stock Shares Issued | 54,012,365 | 48,612,365 |
Common Stock Shares Outstanding | 54,012,365 | 48,612,365 |
Statements_of_Operations_Unaud
Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenue | $59,280 | $2,162 | $99,420 | $2,162 |
Cost of services | 43,065 | ' | 53,689 | 5,741 |
Gross Income (Loss) | 16,215 | 2,162 | 45,731 | 3,579 |
Operating expenses | ' | ' | ' | ' |
General and administrative | 120,544 | 111,793 | 202,822 | 196,177 |
Loss from continuing operations | -104,329 | -109,631 | -157,091 | -199,756 |
Benefit from income taxes on continuing operations | 37,950 | 36,710 | 74,984 | 71,134 |
Interest Income | 149 | 6 | 304 | 7 |
Net Loss | -66,230 | -72,915 | -81,803 | -128,615 |
Discontinued operations: | ' | ' | ' | ' |
Loss from discontinued operations | ' | -147,541 | ' | -328,031 |
Benefit from income taxes | ' | 49,407 | ' | 116,816 |
Income (loss) on discontinued operations | ' | -98,134 | ' | -211,215 |
Loss from continuing operations | ($66,230) | ($171,049) | ($81,803) | ($339,830) |
Net loss per share - basic | ' | ' | ' | ' |
Loss from continuing operations | $0 | $0 | $0 | $0 |
Loss from discontinued operations | $0 | $0 | $0 | $0 |
Net income (loss) per share - basic | $0 | $0 | $0 | $0 |
Net loss per share - diluted | ' | ' | ' | ' |
Loss from continuing operations | $0 | $0 | $0 | $0 |
Loss from discontinued operations | $0 | $0 | $0 | $0 |
Net loss per share - diluted | $0 | $0 | $0 | $0 |
Weighted average number of common shares outstanding - basic | 49,799,178 | 48,612,365 | 49,209,050 | 48,612,365 |
Weighted average number of common shares outstanding - diluted | 49,799,178 | 48,612,365 | 49,209,050 | 48,612,365 |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash Flow from Operating Activities | ' | ' |
Net Loss | ($81,803) | ($128,615) |
Plus loss from discontinued operations, net of income taxes | ' | -211,215 |
Loss from continuing operations, net of income taxes | -81,803 | -339,830 |
Depreciation | 2,382 | 5,871 |
Provision for doubtful accounts | 5,881 | ' |
Stock issued for services | 49,140 | ' |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -15,430 | ' |
Refundable income taxes | -74,984 | -187,950 |
Accounts payable and accrued liabilities | 1,300 | 11,443 |
Deferred revenue | 28,200 | ' |
Net cash used in operating activities from continuing operations | -85,314 | -170,636 |
Net cash used in operating activities from discontinued operations | -10,000 | 34,687 |
Net cash used in operating activities | -95,314 | -135,949 |
Net decrease in cash | -95,314 | -475,779 |
Cash - Beginning of year | 538,633 | 927,895 |
Cash - End of the period | $443,319 | $452,116 |
Note_1_ORGANIZATION_AND_BUSINE
Note 1. ORGANIZATION AND BUSINESS ACTIVITY | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Note 1. ORGANIZATION AND BUSINESS ACTIVITY | ' |
NOTE 1 – ORGANIZATION AND BUSINESS ACTIVITY | |
The Company was incorporated in Florida on July 31, 2001. On September 21, 2001 the Company was acquired by PlaNet.Com, Inc., a Nevada public, non-reporting corporation. Pla.Net.Com, Inc. was considered a shell at the time of acquisition and therefore the acquisition was treated as a reverse merger (the acquired company is treated as the acquiring company for accounting purposes). Pla.Net.Com, Inc. changed its name to Inpatient Clinical Solutions, Inc. immediately after the merger. | |
Through March 2013, the Company provided health care services in South Florida. The Company provided inpatient physician care to various health care facilities and health plans in the South Florida area. Prior to February 2012, the Company provided Hospitalist services at acute care hospitals. Hospitalists focus on a patient’s care from the time of admission to discharge, working in close consultation with primary care physicians, other referring physicians and medical providers to coordinate the inpatient care delivery system and manage the entire inpatient episode of care. | |
The Company sold the hospitalist business during February 2012. At that time, the Company changed its name from Inpatient Clinical Solutions, Inc. to Integrated Inpatient Solutions, Inc. In November 2011, the Company entered into an agreement with a hospital to provide intensivist services. Under the exclusive agreement, the Company provided critical care intensivist coverage for all medical and surgical intensive care unit patients at the hospital. The physicians included full-time employees, part-time and temporary physicians as well as contracted physician providers. The intensivist agreement was terminated in January 2013. | |
The Company now provides interior design services targeting budget minded individuals. The business operates under the trade name Integrated Interior Design. The Company earns revenues from providing decorator services which are billed on hourly and per diem rates. The interior design business currently operates in South Florida and will expand regionally and nationally. The business provides interior design, interior staging, accompanied shopping, paint color selection, architectural drawing and other design services. |
Note_2_SUMMARY_OF_SIGNIFICANT_
Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Section 107 of the JOBS Act also provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We are choosing to take advantage of the extended transition period for complying with new or revised accounting standards. As a result, our financial statements may not be comparable to those of companies that comply with public company effective dates. | |
BASIS OF PRESENTATION | |
The unaudited interim financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation SX. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. | |
The financial information furnished herein reflects all adjustments, consisting of normal recurring items that, in the opinion of management, are necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods. The results of operations for the six months ended June 30, 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014. | |
Use of Estimates | |
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The areas involving the most significant use of estimates include legal contingencies, deferred tax benefits, refundable income taxes, estimated realizable value of accounts receivable, and payables for known claims and liabilities for claims incurred but not reported (IBNR) related to medical malpractice. These estimates are based on knowledge of current events and anticipated future events. The Company adjusts these estimates each period as more current information becomes available. The impact of any changes in estimates is included in the determination of earnings in the period in which the estimate is adjusted. Actual results may ultimately differ materially from those estimates. | |
Cash | |
The Company considers cash in banks and other highly liquid investments with insignificant interest rate risk and maturities of three months or less at the time of acquisition to be cash and cash equivalents. At June 30, 2014 and December 31, 2013, the Company had no cash equivalents. The Company maintains cash accounts in financial institutions that are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”). Deposits in excess of the FDIC insurance amount of $250,000 totaled approximately $150,000 and $245,000 at June 30, 2014 and December 31, 2013, respectively. | |
Accounts Receivable | |
Accounts receivable represent amounts due from customers for design services. Accounts receivable are recorded and stated at the amount expected to be collected and reflect an allowance for uncollectible amounts of $5,881 at June 30, 2014. The Company had no accounts receivable at December 31, 2013. | |
Property and Equipment | |
Property and equipment are recorded at cost and depreciated on a straight-line basis over the estimated useful life of the asset. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. | |
Impairment of Long-Lived Assets | |
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company determined that there were no impairments of long-lived assets as of June 30, 2014 and December 31, 2013. | |
Fair Value of Financial Instruments | |
U.S. GAAP for fair value measurements establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy gives the highest priority to quoted market prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Level 2 inputs are inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. | |
The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, deposits, accounts payable and accrued liabilities, approximate their fair values because of the short maturity of these instruments. | |
Revenue Recognition | |
Interior Design - The Company follows ASC 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when it has persuasive evidence of an arrangement that the services have been rendered to the customer, the sales price is fixed or determinable, and collectability is reasonably assured. | |
Income Taxes | |
The Company follows Section 740-10-30 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Operations in the period that includes the enactment date. | |
The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of Section 740-10-25. | |
Earnings (Loss) Per Share | |
The Company computes earnings (loss) per share in accordance with the provisions of FASB ASC Topic 260, "Earnings Per Share," which specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. Basic earnings (loss) per share are computed by dividing net earnings (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share are computed assuming the exercise of dilutive stock options under the treasury stock method and the related income tax effects. Accordingly, for purposes of dilutive earnings per share, the Company excluded the convertible preferred stock. | |
As of June 30, 2014 and 2013, we had 250,000 shares of Convertible Preferred Stock outstanding convertible into 2,500,000 common shares. | |
Recent Accounting Pronouncements | |
There have been no accounting pronouncements or changes in accounting pronouncements during the six months ended June 30, 2014 that are expected to have a material impact on the Company’s financial position, results of operations or cash flows. Accounting pronouncements that became effective during the six months ended June 30, 2014 did not have a material impact on disclosures or on the Company’s financial position, results of operations or cash flows. |
Note_3_PROPERTY_AND_EQUIPMENT
Note 3. PROPERTY AND EQUIPMENT | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Note 3. PROPERTY AND EQUIPMENT | ' | |||||||
NOTE 3 - PROPERTY AND EQUIPMENT | ||||||||
The Company’s property and equipment consisted of the following at June 30, 2014 and December 31, 2013: | ||||||||
Estimated | ||||||||
2014 | 2013 | Useful Life | ||||||
Computer and Office Equipment | $ | 33,868 | $ | 33,868 | 5 -7 years | |||
Furniture and Fixtures | 18,530 | 18,530 | 7 years | |||||
$ | 52,398 | $ | 52,398 | |||||
Less: Accumulated Depreciation | (51,213) | (48,831) | ||||||
$ | 1,185 | $ | 3,567 | |||||
Depreciation expense for the six month period ended June 30, 2014 and 2013 was $2,382 and $5,871, respectively. |
Note_4_STOCKHOLDERS_EQUITY
Note 4. STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
Note 4. STOCKHOLDERS' EQUITY | ' |
NOTE 4 - STOCKHOLDERS' EQUITY | |
Preferred Stock | |
The Company has 10,000,000 authorized shares of non-redeemable, convertible preferred stock with a par value of $.0001. Each share of preferred stock is convertible to 10 shares of common stock. | |
Common Stock | |
On June 10, 2014 the company issued 2,700,000 shares of common stock to an employee for services with a fair value of $24,570. | |
On June 10, 2014 the company issued 2,700,000 shares of common stock to a non-related party for services with a fair value of $24,570. | |
Note_5_COMMITMENT_AND_CONTINGE
Note 5. COMMITMENT AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Note 5. COMMITMENT AND CONTINGENCIES | ' |
NOTE 5 - COMMITMENT AND CONTINGENCIES | |
Commitment | |
In April 2013, the Company entered into a new one year office lease agreement at $450 per month, the lease expired in May 2014. The office space is now being occupied on a month to month basis. Total rent expense for the six months ended June 30, 2014 was $2,385 and $7,866, respectively. | |
Contingencies | |
While providing healthcare services in the ordinary course of our business, the Company became involved in lawsuits and legal proceedings involving claims of medical malpractice related to medical services provided by our affiliated physicians. The Company is currently involved in the settlement stages of one such matter. The accompanying financial statements include an accrual of $50,000 for this matter under the caption liabilities from discontinued operations. This accrual represents the Company’s anticipated deductible on the settlement. The details of this settlement are described more fully below. | |
Edra Schwartz as the Personal Representative of the Estate of Robert A. Schwartz, Deceased, v. Jason Strong, M.D., Aretha Nelson, M.D. and Inpatient Clinical Solutions, Inc. - This matter involves a 66 year old white male who developed a MRSA (methicillin-resistant staphylococcus aureus) infection following a craniotomy to remove a suspected meningioma. The mater alleges (1) Failure to properly interpret the brain MRIs preoperatively (this is directed at the radiologist preoperatively); and (2) Failure to diagnose a MRSA infection and brain abscess following the craniotomy on May 6, 2009. The patient died on September 24, 2009. The suit commenced October 18, 2011 and the case is pending in the circuit court of the 17 Judical Circuit in and for Broward County, FL, Case # 11-10485. The claim is for unspecified monetary damages. The Company is defending this case vigorously and, while the claims for damages have not been quantified, the Company does not believe that a negative decision would have a material impact on the Company. | |
In November 2011, the Company became involved in a legal settlement relating to a malpractice claim for $100,000. As a result of the settlement agreement, the Company agreed to pay a total amount of $100,000. As of June 30, 2014 and December 31, 2013, the remaining balance is approximately $59,000 which is due in equal yearly installments of $20,000 over the next four years. The Company made payments of $10,000 on this obligation during the six month period ended June 30, 2014. | |
The accrued legal settlements are presented as liabilities from discontinued operation in the accompanying balance sheets (see Note 7). | |
The Company is currently not aware of any other such legal proceedings or claims that they believe will have, individually or in the aggregate, a material adverse affect on its business, financial condition or operating results except for the items described above and in Note 9 Subsequent Events. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm its business. | |
Regulatory Matters | |
Laws and regulations governing the Medicare and Medicaid programs are complex and subject to interpretation. Compliance with such laws and regulations can be subject to future government review and interpretation as well as significant regulatory action including fines, penalties, and exclusion from the Medicare and Medicaid programs. We believe that we are in compliance with all applicable laws and regulations. We are not aware of any specific investigations involving allegations of potential wrongdoing. |
Note_6_CONCENTRATIONS
Note 6. CONCENTRATIONS | 6 Months Ended |
Jun. 30, 2014 | |
Risks and Uncertainties [Abstract] | ' |
Note 6. CONCENTRATIONS | ' |
NOTE 6 – CONCENTRATIONS | |
Geographic and Employment | |
Our operations are concentrated in the South Florida region. We are reliant on the services of two full time employees, one who runs management and operations of the Company and one interior designer. | |
Revenue and Accounts Receivable | |
During the six months ended June 30, 2014, 54% of revenues were derived from three customers at 34%, 11% and 9%. | |
At June 30, 2014, 64% of accounts receivable were derived from three customers at 29%, 21% and 14%. |
Note_7_Discontinued_Operations
Note 7. Discontinued Operations | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Note 7. Discontinued Operations | ' | ||||||||
NOTE 7 - Discontinued Operations | |||||||||
In March 2013, management decided to exit the health care provider business and change the Company's strategy in order to focus on its interior design business. Accordingly, the financial statements have been presented in accordance with ASC 205-20, Discontinued Operations. | |||||||||
The following table illustrates the reporting of the discontinued operations included in the Statements of Operations for the six months ended June 30, 2014 and 2013: | |||||||||
Six Months Ended June 30, | |||||||||
2014 | 2013 | ||||||||
(restated) | |||||||||
Patient Service Revenue (net of contractual | |||||||||
allowances and discounts) | $ | — | $ | 109,463 | |||||
Operating expenses: | |||||||||
Cost of services-physicians | — | 225,964 | |||||||
General and administrative | — | 211,530 | |||||||
Total operating expenses | — | 437,494 | |||||||
Benefit from income taxes | — | 116,816 | |||||||
Loss on discontinued operations | $ | — | $ | (211,215 | ) | ||||
As of June 30, 2014 and December 31, 2013, liabilities from discontinued operations are listed below: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Accrued legal settlements | $ 109,379 | $ 119,379 | |||||||
Note_8_RESTATEMENT_OF_PRIOR_YE
Note 8. RESTATEMENT OF PRIOR YEARS COMPARATIVE FINANCIAL STATEMENTS | 6 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
Note 8. RESTATEMENT OF PRIOR YEARS COMPARATIVE FINANCIAL STATEMENTS | ' |
NOTE 8 – RESTATEMENT OF PRIOR YEARS COMPARATIVE FINANCIAL STATEMENTS | |
The Company made adjustments to the condensed statement of operations and condensed statement of cash flows as of June 30, 2013. The adjustment of $187,950 appears as benefit from income taxes in the condensed statement of operations and refundable income taxes in the condensed statement of cash flows. This adjustment reflects the tax benefit from net operating losses which were not previously recorded. The Company originally treated these amounts as fully reserved deferred tax assets. Under FASB ASC 740 an asset is recognized for the amount of refundable income taxes and the anticipated claim for refund is reported as a tax benefit in the statement of income. In accordance with ASC 740, the statements have been restated to reflect the tax benefit. |
Note_9_SUBSEQUENT_EVENTS
Note 9. SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Note 9. SUBSEQUENT EVENTS | ' |
NOTE 9 – SUBSEQUENT EVENTS | |
On July 14, 2014, the holders of 52.5% of the Company’s outstanding Common Stock voted to amend the Company’s Certificate of Incorporation to increase the total number of shares of all classes of stock. Under the amendment, the total number of shares outstanding was increased from 110,000,000 shares to 310,000,000 shares comprised of 300,000,000 shares of Common Stock and 10,000,000 shares of Preferred Stock. The number of shares previously authorized was 110,000,000 comprised of 100,000,000 shares of Common Stock and 10,000,000 shares of preferred stock. The par value of both the Common and Preferred shares remained unchanged at $0.0001 per share. This amendment was effective as of July 17, 2014. | |
On July 7, 2014, the Company received notification that one of the hospitalist physicians may be named in a lawsuit. Because this matter is in the early stages, the claim for damages, if any, has not yet been determined. Legal council has been retained by the Company’s insurance carrier. |
Note_2_SUMMARY_OF_SIGNIFICANT_1
Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
The unaudited interim financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation SX. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. | |
The financial information furnished herein reflects all adjustments, consisting of normal recurring items that, in the opinion of management, are necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods. The results of operations for the six months ended June 30, 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The areas involving the most significant use of estimates include legal contingencies, deferred tax benefits, refundable income taxes, estimated realizable value of accounts receivable, and payables for known claims and liabilities for claims incurred but not reported (IBNR) related to medical malpractice. These estimates are based on knowledge of current events and anticipated future events. The Company adjusts these estimates each period as more current information becomes available. The impact of any changes in estimates is included in the determination of earnings in the period in which the estimate is adjusted. Actual results may ultimately differ materially from those estimates. | |
Cash | ' |
Cash | |
The Company considers cash in banks and other highly liquid investments with insignificant interest rate risk and maturities of three months or less at the time of acquisition to be cash and cash equivalents. At June 30, 2014 and December 31, 2013, the Company had no cash equivalents. The Company maintains cash accounts in financial institutions that are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”). Deposits in excess of the FDIC insurance amount of $250,000 totaled approximately $150,000 and $245,000 at June 30, 2014 and December 31, 2013, respectively. | |
Accounts Receivable | ' |
Accounts Receivable | |
Accounts receivable represent amounts due from customers for design services. Accounts receivable are recorded and stated at the amount expected to be collected and reflect an allowance for uncollectible amounts of $5,881 at June 30, 2014. The Company had no accounts receivable at December 31, 2013. | |
Property and Equipment | ' |
Property and Equipment | |
Property and equipment are recorded at cost and depreciated on a straight-line basis over the estimated useful life of the asset. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. | |
Impairment of Long-Lived Assets | ' |
Impairment of Long-Lived Assets | |
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company determined that there were no impairments of long-lived assets as of June 30, 2014 and December 31, 2013. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
U.S. GAAP for fair value measurements establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy gives the highest priority to quoted market prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Level 2 inputs are inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. | |
The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, deposits, accounts payable and accrued liabilities, approximate their fair values because of the short maturity of these instruments. | |
Revenue Recognition | ' |
Revenue Recognition | |
Interior Design - The Company follows ASC 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when it has persuasive evidence of an arrangement that the services have been rendered to the customer, the sales price is fixed or determinable, and collectability is reasonably assured. | |
Income Taxes | ' |
Income Taxes | |
The Company follows Section 740-10-30 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Operations in the period that includes the enactment date. | |
The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of Section 740-10-25. | |
Earnings (Loss) Per Share | ' |
Earnings (Loss) Per Share | |
The Company computes earnings (loss) per share in accordance with the provisions of FASB ASC Topic 260, "Earnings Per Share," which specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. Basic earnings (loss) per share are computed by dividing net earnings (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share are computed assuming the exercise of dilutive stock options under the treasury stock method and the related income tax effects. Accordingly, for purposes of dilutive earnings per share, the Company excluded the convertible preferred stock. | |
As of June 30, 2014 and 2013, we had 250,000 shares of Convertible Preferred Stock outstanding convertible into 2,500,000 common shares. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
There have been no accounting pronouncements or changes in accounting pronouncements during the six months ended June 30, 2014 that are expected to have a material impact on the Company’s financial position, results of operations or cash flows. Accounting pronouncements that became effective during the six months ended June 30, 2014 did not have a material impact on disclosures or on the Company’s financial position, results of operations or cash flows. |
Note_3_PROPERTY_AND_EQUIPMENT_
Note 3. PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment | ' | |||||||
Estimated | ||||||||
2014 | 2013 | Useful Life | ||||||
Computer and Office Equipment | $ | 33,868 | $ | 33,868 | 5 -7 years | |||
Furniture and Fixtures | 18,530 | 18,530 | 7 years | |||||
$ | 52,398 | $ | 52,398 | |||||
Less: Accumulated Depreciation | (51,213) | (48,831) | ||||||
$ | 1,185 | $ | 3,567 |
Note_7_Discontinued_Operations1
Note 7. Discontinued Operations (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Discontinued Operations | ' | ||||||||
Six Months Ended June 30, | |||||||||
2014 | 2013 | ||||||||
(restated) | |||||||||
Patient Service Revenue (net of contractual | |||||||||
allowances and discounts) | $ | — | $ | 109,463 | |||||
Operating expenses: | |||||||||
Cost of services-physicians | — | 225,964 | |||||||
General and administrative | — | 211,530 | |||||||
Total operating expenses | — | 437,494 | |||||||
Benefit from income taxes | — | 116,816 | |||||||
Loss on discontinued operations | $ | — | $ | (211,215 | ) | ||||
As of June 30, 2014 and December 31, 2013, liabilities from discontinued operations are listed below: | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Accrued legal settlements | $ 109,379 | $ 119,379 |
Note_2_SUMMARY_OF_SIGNIFICANT_2
Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' | ' | ' |
FDIC Insured Amount | $250,000 | ' | ' |
Cash, Uninsured | 150,000 | ' | 245,000 |
Accounts Receivable, Uncollectible | $5,581 | ' | ' |
Convertible Preferred Stock, Shares Outstanding | 250,000 | 250,000 | ' |
Convertible Preferred Stock, Common Shares | 2,500,000 | 2,500,000 | ' |
Note_3_PROPERTY_AND_EQUIPMENT_1
Note 3. PROPERTY AND EQUIPMENT - Property and Equipment (Details) (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Property and Equipment Gross | $52,398 | ' | $52,398 |
Less: Accumulated Depreciation | -51,213 | ' | -48,831 |
Property and Equipment Net | 1,185 | ' | 3,567 |
Estimated Useful Life | '5 years | '7 years | ' |
Computer and Office Equipment [Member] | ' | ' | ' |
Property and Equipment Gross | 33,868 | ' | 33,868 |
Furniture and Fixtures [Member] | ' | ' | ' |
Property and Equipment Gross | $18,530 | ' | $18,530 |
Note_3_PROPERTY_AND_EQUIPMENT_2
Note 3. PROPERTY AND EQUIPMENT (Details Narrative) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Property, Plant and Equipment [Abstract] | ' | ' |
Depreciation Expense | $2,382 | $5,871 |
Note_4_STOCKHOLDERS_EQUITY_Det
Note 4. STOCKHOLDERS' EQUITY (Details Narrative) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | ' | ' |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Par Value | $0.00 | $0.00 |
Preferred Stock, Conversion Rate | 'Each share of preferred stock is convertible into 10 shares of common stock. | ' |
Common Stock, Shares Issued For Services Value | $24,570 | ' |
Common Stock, Shares Issued For Services | 2,700,000 | ' |
Common Stock, Shares Issued Non-Related Party Value | $24,570 | ' |
Common Stock, Shares Issued Non-Related Party | 2,700,000 | ' |
Note_5_COMMITMENT_AND_CONTINGE1
Note 5. COMMITMENT AND CONTINGENCIES (Details Narrative) (USD $) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' |
Rental Payments | $450 | ' | ' | ' |
Rent Expense | 2,385 | 7,866 | ' | ' |
Malpractice Loss Contingency | ' | ' | 100,000 | ' |
Malpractice Payable | 59,000 | ' | ' | 59,000 |
Liabilities from Discontinued Operations | 50,000 | ' | ' | ' |
Legal Settlements, Payments Made | $10,000 | ' | ' | ' |
Note_6_CONCENTRATIONS_Details_
Note 6. CONCENTRATIONS (Details Narrative) | 6 Months Ended |
Jun. 30, 2014 | |
Sales Revenue, Net [Member] | ' |
Concentration Risk | 54.00% |
Accounts Receivable [Member] | ' |
Concentration Risk | 64.00% |
Note_7_Discontinued_Operations2
Note 7. Discontinued Operations - Discontinued Operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Operating expenses: | ' | ' | ' | ' |
Cost of services-physicians | $43,065 | ' | $53,689 | $5,741 |
General and administrative | 120,544 | 111,793 | 202,822 | 196,177 |
Benefit from income taxes | 37,950 | 36,710 | 74,984 | 71,134 |
Loss on discontinued operations | ' | -147,541 | ' | -328,031 |
Discontinued Operations [Member] | ' | ' | ' | ' |
Patient Service Revenue (net of contractual allowances and discounts) | ' | ' | ' | 109,463 |
Operating expenses: | ' | ' | ' | ' |
Cost of services-physicians | ' | ' | ' | 225,964 |
General and administrative | ' | ' | ' | 211,530 |
Total operating expenses | ' | ' | ' | 437,494 |
Benefit from income taxes | ' | ' | ' | 116,816 |
Loss on discontinued operations | ' | ' | ' | -211,215 |
Accrued legal settlements | ' | ' | $109,379 | $119,379 |
Note_8_RESTATEMENT_OF_PRIOR_YE1
Note 8. RESTATEMENT OF PRIOR YEARS COMPARATIVE FINANCIAL STATEMENTS (Details Narrative) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Equity [Abstract] | ' | ' |
Benefit from Income Taxes | ($74,984) | ($187,950) |
Note_9_SUBSEQUENT_EVENTS_Detai
Note 9. SUBSEQUENT EVENTS (Details Narrative) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Par Value | $0.00 | $0.00 |
Preferred Stock, Par Value | $0.00 | $0.00 |
Scenario, Previously Reported [Member] | ' | ' |
Common Stock, Shares Authorized | 100,000,000 | ' |
Preferred Stock, Shares Authorized | 10,000,000 | ' |
Common Stock, Par Value | $0.00 | ' |
Preferred Stock, Par Value | $0.00 | ' |