Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 13, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | Integrated Inpatient Solutions, Inc. | |
Entity Central Index Key | 1,174,672 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
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? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 111,225,013 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 |
Balance Sheets (Unaudited)
Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash | $ 170,863 | $ 372,206 |
Accounts Receivable, net | 6,494 | 58,927 |
Refundable income taxes | 237,077 | $ 237,077 |
Inventory | $ 1,816 | |
Prepaid expenses and other current assets | $ 14,810 | |
Assets from discontinued operations | $ 29,402 | 45,546 |
Total Current Assets | 445,652 | 728,566 |
Other Assets | ||
Deposits | 954 | 954 |
TOTAL ASSETS | 446,606 | 729,520 |
CURRENT LIABILITIES | ||
Accounts Payable and accrued liabilities | 90,540 | 59,954 |
Deferred revenue | 6,547 | $ 23,782 |
Due to related party | 4,000 | |
Liabilities from discontinued operations | 123,647 | $ 167,306 |
Total current liabilities | 224,734 | 251,042 |
TOTAL LIABILITIES | 224,734 | 251,042 |
STOCKHOLDER'S EQUITY | ||
Preferred stock, $0.0001 par value, 10,000,000 share authorized 250,000 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively | 25 | 25 |
Common stock, $0.0001 par value, 2,000,000,000 shares authorized, 111,225,013 and 158,503,951 shares issued and outstanding as of September 30, 2015 and December 31, 2014 respectively. | 11,123 | 15,850 |
Additional paid-in capital | 1,015,925 | 1,011,198 |
Accumulated deficit | (805,201) | (548,595) |
TOTAL STOCKHOLDER'S EQUITY | 221,872 | 478,478 |
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ 446,606 | $ 729,520 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred Stock Par Value | $ 0.0001 | $ 0.0001 |
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 | $ 0.0001 | $ 0.0001 |
Common Stock Shares Authorized | 2,000,000,000 | 2,000,000,000 |
Common Stock Shares Issued | 111,225,013 | 158,503,951 |
Common Stock Shares Outstanding | 111,225,013 | 158,503,951 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue - Design | $ 58,824 | $ 78,085 | $ 199,876 | $ 177,505 |
Cost of Services | 76,465 | 95,508 | 268,455 | 149,197 |
Gross Income / (Loss) | (17,641) | (17,423) | (68,579) | 28,308 |
Operating Expenses | ||||
General and administrative | 75,535 | 556,516 | 200,366 | 759,338 |
Loss from continuing operations | (93,176) | (573,939) | (268,945) | (731,030) |
Interest Income | 50 | $ 116 | 264 | $ 420 |
Interest Expense | (485) | (1,227) | ||
Loss before benefit for income taxes | $ (93,611) | $ (573,823) | $ (93,611) | $ (730,610) |
Benefit from income taxes on continuing operations | 256,408 | 331,392 | ||
Loss from continuing operations | $ (93,611) | (317,415) | $ (93,611) | (399,218) |
Discontinued operations: | ||||
Income / (Loss) from discontinued operations | 12,165 | (510,924) | 13,302 | (510,924) |
Net Income/ (Loss) before benefit for income taxes | $ 12,165 | (510,924) | $ 13,302 | (510,924) |
Benefit from income taxes on discontinued operations | 62,575 | 62,575 | ||
Income / (Loss) from discontinued operations | $ 12,165 | (448,349) | $ 13,302 | (448,349) |
Net Loss | $ (81,446) | $ (765,764) | $ (256,606) | $ (847,567) |
Net Loss per share - basic and diluted | ||||
Loss from continuing operations | $ 0 | $ 0 | $ 0 | $ 0 |
Income / (Loss) from discontinued operations | 0 | (0.01) | 0 | (0.01) |
Net Loss per share - basic and diluted | $ 0 | $ (0.01) | $ 0 | $ (0.01) |
Weighted average number of common shares outstanding - basic and diluted | 111,225,013 | 93,764,599 | 137,404,181 | 64,224,107 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flow used in Operating Activities | ||
Net loss | $ (256,606) | $ (847,567) |
Adjustments to reconcile net loss to net cash used in Operating Activities | ||
Depreciation | 3,567 | |
Provision for doubtful accounts | $ 7,080 | 9,537 |
Stock issued for services | 506,842 | |
Impairment of goodwill | 372,965 | |
Changes in assets and liabilities | ||
Accounts Receivable | $ 45,605 | (36,429) |
Refundable Income Taxes | $ (393,967) | |
Inventory | $ (1,816) | |
Prepaid expenses and other current assets | 14,810 | |
Assets from discontinued operations | 16,144 | $ (134,496) |
Deferred Revenue | (17,235) | 66,338 |
Liabilities from discontinued operations | (43,659) | 81,782 |
Accounts payable and accrued expenses | 30,334 | 39,945 |
Net cash used in Operating Activities | $ (205,343) | (331,483) |
Cash Flows from Investing Activities | ||
Cash acquired in acquisition of subsidiary | 10,106 | |
Net Cash provided by Investing Activities | $ 10,106 | |
Cash Flow from Financing Activities | ||
Due to Related Party | $ 4,000 | |
Net Cash provided by Financing Activities | 4,000 | |
Net Decrease in Cash | (201,343) | $ (321,377) |
Cash - Beginning of Year | 372,206 | 538,633 |
Cash - End of the period | $ 170,863 | $ 217,256 |
1. ORGANIZATION AND SUMMARY OF
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 intensives services. Under the exclusive agreement, the Company provided critical care intensives coverage for all medical and surgical intensive care unit patients at the hospital. The physician’s includes full-time employees, part-time and temporary physicians as well as contracted physician providers. The intensives 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. On August 26, 2014, the Company entered into a Share Exchange Agreement pursuant to which the Company agreed to acquire all of the outstanding capital stock of Integrated Timeshare Solutions, Inc., a Nevada corporation (“ITS”) in exchange for newly issued shares of the Company’s common stock. Accordingly, as a result of the exchange, ITS is now a wholly owned subsidiary of the Company. ITS was established on July 2, 2014 as a real estate consulting firm specializing in timeshare liquidation and mortgage relief. The Company has discontinued operations of this subsidiary. 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 nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015. 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 claims 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 September 30, 2015 and December 31, 2014, 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 $0 at September 30, 2015. Deposits in excess of the FDIC insurance amount of $250,000 totaled $80,000 at December 31, 2014 Accounts Receivable The determination of bad debt allowances constitutes a significant estimate. Accounts receivable represent amounts due from interior design customers. Accounts receivable are recorded and stated at the amount expected to be collected and have been adjusted to reflect the differences between charges and the estimated reimbursable amounts. Accounts receivable represent amounts due from customers for design services and customers relinquishing their Timeshares. Accounts receivable from customers for design services are recorded and stated at the amount expected to be collected and reflect an allowance for uncollectible amounts of $13,814 and $6,987 at September, 30, 2015 and December 31, 2014, respectively, Accounts receivable from customers relinquishing their Timeshares was $9,000 and $9,000 at September 30, 2015 and December 31, 2014, respectively. This amount is being held by the company’s credit card processor which places a six month hold on transactions dealing with Timeshares. Inventory Inventories consist of finished goods and are stated at the lower of cost or market. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Integrated Inpatient Solutions, Inc. and it’s wholly owned subsidiary Integrated Timeshare Solutions, Inc. (from August 26, 2014). All intercompany transactions and balances have been eliminated in consolidation. Impairment of Goodwill and Long-Lived Assets The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives, against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company determined that there were no impairments of long-lived assets as of September 30, 2015. 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 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. Interior Design Timeshare Liquidation Income Taxes 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 As of September 30, 2015 and December 2014, the company had 250,000 shares of Convertible Preferred Stock outstanding convertible into 2,500,000 common shares. Reclassification Certain reclassifications, including discontinued operations, have been made to the prior year’s data to conform to current year presentation. These reclassifications had no effect on net income (loss). Recent Accounting Pronouncements In April 2015, FASB issued Accounting Standards Update (“ASU”) No. 2015-03, “ Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” In April 2015, FASB issued Accounting Standards Update (“ASU”) No. 2015-04, “ Compensation – Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets” In April 2015, FASB issued Accounting Standards Update (“ASU”) No. 2015-05, “ Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” In April 2015, FASB issued Accounting Standards Update (“ASU”) No. 2015-06, “ Earnings Per Share (Topic 260): Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions” In July 2015, FASB issued Accounting Standards Update (“ASU”) No. 2015-11, “ Inventory (Topic 330): Simplifying the Measurement of Inventory” In August 2015, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” |
2. STOCKHOLDERS' EQUITY
2. STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
2. STOCKHOLDERS' EQUITY | NOTE 2 - STOCKHOLDERS' EQUITY Common Stock On June 23, 2015, the company amended its Articles of Incorporation to increase the total number of shares of all classes of stock to 2,010,000,000 shares, of which 2,000,000,000 shares shall be Common Stock with a par value of $0.0001 per share, and 10,000,000 shares shall be Serial Preferred Stock with a par value of $0.0001 per share. In March 2015, the Company entered into a settlement agreements with a former Officers and shareholders. Under the terms of the agreement, the Company agreed to pay $19,250 and forgive the $5,000 note receivable paid to the former Officer. The former Officers and shareholders agreed to relinquish his interest in the Company including 21,296,819 shares of the Company’s common stock. As of September 30, 2015, the Company has paid $19,250 to the former officer and the stock ownership has been returned to the Company. In May 201, the former Directors agreed to relinquish 25,982,119 shares of the Company’s common stock due to Company winding down the timeshare business. 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. |
3. COMMITMENT AND CONTINGENCIES
3. COMMITMENT AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
3. COMMITMENT AND CONTINGENCIES | NOTE 3 - COMMITMENT AND CONTINGENCIES Commitment In April 2013, the Company entered into a one year office lease agreement at $450 per month, and the lease expired in May 2014. The office space was being occupied on a month to month basis until the lease agreement was amended. In August 2014, the Company entered into an amended lease agreement. The lease term is one year commencing on June 1, 2014 and expired on May 31, 2015. The office space is currently being occupied on a month to month basis and the Company has no plans on relocating. The Company anticipates entering into a new lease agreement for a period of no less than one year in the fourth quarter. The monthly rent remains at $450 per month. Total rent expense for the three and nine months ended September 30, 2015 were $1,908 and $4,293 respectively. Total rent expense for the three and nine months ended September 30, 2014 were 1,908 and $4,293 respectively. On August 26, 2014, the Company entered into an employment agreement with its Chief Executive Officer. The agreement is for a period of two years unless renewed or extended by both parties. The agreement provides an annual base salary of $80,000. The Officer is also eligible for a bonus payment based on the gross revenue achieved by the Company at the end of each twelve month period following commencement of this agreement. The bonuses are ranging from $40,000 to $100,000 for gross revenues ranging from $3,750,000 to $7,500,000 and over $7,500,000. As of September 30, 2015, the Company did not reach the targeted gross revenue. Therefore, the Officer did not receive any bonuses for the nine months ended September 30, 2015. On August 26, 2014, the Company entered into an employment agreement with its Senior Vice President of Sales. The agreement is for a period of two years unless renewed or extended by both parties. The agreement provides an annual base salary of $80,000. The Officer is also eligible for a bonus payment based on the gross revenue achieved by the Company at the end of each twelve month period following commencement of this agreement. The bonuses are ranging from $40,000 to $100,000 for the gross revenue ranging from $3,750,000 to $7,500,000 and over $7,500,000. In March 2015, the Officer entered into a settlement agreement with the Company. As a result, the employment agreement was concurrently terminated. 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. In September 2013, the Company became involved in a legal settlement relating to a malpractice claim. As a result of the settlement agreement, the Company agreed to pay a total amount of $500,000, which will be covered by the tail malpractice insurance. The Company has accrued $50,000 for the deductible on the tail malpractice insurance as of September 30, 2015 and December 31, 2014. 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 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 September 30, 2015 the remaining balance was approximately $40,000 which is due in equal annual installments of $20,000 over the next two years. The accrued legal settlements are presented as liabilities from discontinued operation in the accompanying balance sheets (see Note 7). In November 2014 the Company had a dispute with a former Officer and shareholder. The agreement was settled in March 2015 whereupon the Company agreed to pay the former Officer and shareholder $19,250 and forgive the $5,000 note receivable paid to the former Officer (see Note 4). The former Officer and shareholder agreed to relinquish his entire interest in the company, including his stock ownership. As of September 30, 2015, the Company has paid $19,250 to the former officer and the stock ownership has been returned to the Company. In October 2015, the Company became involved in a potential legal settlement relating to a malpractice claim. The Company and the other parties have not entered into a settlement agreement. However, the Company anticipates that the amount will be covered by the tail malpractice insurance. The Company has accrued $25,000 for the deductible on the tail malpractice insurance as of September 30, 2015. 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 effect on its business, financial condition or operating results except for the items described above. 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. |
4. NOTE RECEIVABLE - RELATED PA
4. NOTE RECEIVABLE - RELATED PARTY | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
4. NOTE RECEIVABLE - RELATED PARTY | NOTE 4 – NOTE RECEIVABLE – RELATED PARTY In March 2015, the Company entered into a settlement agreements with a former Officers and shareholders. Under the terms of the agreement, the Company agreed to pay $19,250 and forgive the $5,000 note receivable paid to the former Officer. The former Officers and shareholders agreed to relinquish his interest in the Company including 21,296,819 shares of the Company’s common stock. As of September 30, 2015, the Company has paid $19,250 to the former officer and the stock ownership has been returned to the Company treasury. |
NOTE 5 - DUE TO RELATED PARTY
NOTE 5 - DUE TO RELATED PARTY | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
NOTE 5 - DUE TO RELATED PARTY | NOTE 5 – DUE TO RELATED PARTY During the nine months ended September 30, 2015, the Officer and principal shareholder of the Company paid expenses on behalf of the Company in the amount of $4,000. |
6. CONCENTRATIONS
6. CONCENTRATIONS | 9 Months Ended |
Sep. 30, 2015 | |
Risks and Uncertainties [Abstract] | |
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 executives one who manage the operations of the Company. Revenue and Accounts Receivable During the nine months ended September 30, 2015, 72% of revenues from the design business were derived from three customers of 33%, 26%, and 13% of net revenue. During the nine months ended September 30, 2014, 60% of revenues were derived from three customers at 34%, 15%, and 11% of net revenue. At September 30, 2015, 14% of accounts receivable were derived from two customers at 7% and 7%. At September 30, 2014, 61% of accounts receivable were derived from three customers at 35%, 13% and 13%. Accounts receivable from customers relinquishing their Timeshares was $9,000 at September 30, 2015 and December 31, 2014. This amount is being held by the Company’s credit card processor which places a six month hold on any transactions involving Timeshares. In October 2015, the Company collected the remaining $9,000 of Accounts Receivable from discontinued operations. |
7. Discontinued Operations
7. Discontinued Operations | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
7. Discontinued Operations | NOTE 7 - Discontinued Operations In March 2013 management decided to exit the business Discontinued Operations The following table illustrates the reporting of the discontinued operations included in the Statements of Operations for the nine months ended September 30, 2015: Timeshare deed liquidation revenue $ 41,490 Operating expenses: General and administrative 28,188 Total operating expenses 28,188 Income from discontinued operations $ 13,302 As of September 30, 2015 and December 31, 2014, assets and liabilities from discontinued operations are listed below: September 30, 2015 December 31, 2014 Cash $ 20,402 $ 20,496 Accounts receivable 9,000 9,000 Escrow funds - timeshare 16,050 Assets from discontinued operations $ 29,402 $ 45,546 Accrued legal settlements $ 114,294 $ 108,589 Client Deposits - Timeshare 5,295 46,784 Other 4,058 11,933 Liabilities from discontinued operations $ 123,647 $ 167,306 |
1. ORGANIZATION AND SUMMARY O13
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
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 nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015. |
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 claims 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 September 30, 2015 and December 31, 2014, 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 $0 at September 30, 2015. Deposits in excess of the FDIC insurance amount of $250,000 totaled $80,000 at December 31, 2014 |
Accounts Receivable | Accounts Receivable The determination of bad debt allowances constitutes a significant estimate. Accounts receivable represent amounts due from interior design customers. Accounts receivable are recorded and stated at the amount expected to be collected and have been adjusted to reflect the differences between charges and the estimated reimbursable amounts. Accounts receivable represent amounts due from customers for design services and customers relinquishing their Timeshares. Accounts receivable from customers for design services are recorded and stated at the amount expected to be collected and reflect an allowance for uncollectible amounts of $13,814 and $6,987 at September, 30, 2015 and December 31, 2014, respectively, Accounts receivable from customers relinquishing their Timeshares was $9,000 and $9,000 at September 30, 2015 and December 31, 2014, respectively. This amount is being held by the company’s credit card processor which places a six month hold on transactions dealing with Timeshares. |
Inventory | Inventory Inventories consist of finished goods and are stated at the lower of cost or market. |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Integrated Inpatient Solutions, Inc. and it’s wholly owned subsidiary Integrated Timeshare Solutions, Inc. (from August 26, 2014). All intercompany transactions and balances have been eliminated in consolidation. |
Impairment of Goodwill and Long-Lived Assets | Impairment of Goodwill and Long-Lived Assets The Company assesses the recoverability of its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group of long-lived assets over their remaining estimated useful lives, against their respective carrying amounts. Impairment, if any, is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company determined that there were no impairments of long-lived assets as of September 30, 2015. |
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 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. Interior Design Timeshare Liquidation |
Income Taxes | Income Taxes 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 As of September 30, 2015 and December 2014, the company had 250,000 shares of Convertible Preferred Stock outstanding convertible into 2,500,000 common shares. |
Reclassification | Reclassification Certain reclassifications, including discontinued operations, have been made to the prior year’s data to conform to current year presentation. These reclassifications had no effect on net income (loss). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In April 2015, FASB issued Accounting Standards Update (“ASU”) No. 2015-03, “ Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” In April 2015, FASB issued Accounting Standards Update (“ASU”) No. 2015-04, “ Compensation – Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets” In April 2015, FASB issued Accounting Standards Update (“ASU”) No. 2015-05, “ Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” In April 2015, FASB issued Accounting Standards Update (“ASU”) No. 2015-06, “ Earnings Per Share (Topic 260): Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions” In July 2015, FASB issued Accounting Standards Update (“ASU”) No. 2015-11, “ Inventory (Topic 330): Simplifying the Measurement of Inventory” In August 2015, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” |
7. Discontinued Operations (Tab
7. Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Timeshare deed liquidation revenue $ 41,490 Operating expenses: General and administrative 28,188 Total operating expenses 28,188 Income from discontinued operations $ 13,302 As of September 30, 2015 and December 31, 2014, assets and liabilities from discontinued operations are listed below: September 30, 2015 December 31, 2014 Cash $ 20,402 $ 20,496 Accounts receivable 9,000 9,000 Escrow funds - timeshare 16,050 Assets from discontinued operations $ 29,402 $ 45,546 Accrued legal settlements $ 114,294 $ 108,589 Client Deposits - Timeshare 5,295 46,784 Other 4,058 11,933 Liabilities from discontinued operations $ 123,647 $ 167,306 |
1. ORGANIZATION AND SUMMARY O15
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||
FDIC Insured Amount | $ 250,000 | |
Uninsured Cash | 0 | $ 80,000 |
Accounts Receivable, Uncollectible | 13,814 | 6,987 |
Accounts Receivable, Held Value | $ 9,000 | $ 9,000 |
Convertible Preferred Stock, Shares Outstanding | 250,000 | |
Convertible Preferred Stock, Common Shares | 2,500,000 |
2. STOCKHOLDERS' EQUITY (Detail
2. STOCKHOLDERS' EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | |
May. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | |||
Convertible Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | |
Convertible Preferred Stock, Par Value | $ 0.0001 | $ 0.0001 | |
Preferred Stock Conversion Rate | Each share of preferred stock is convertible to 10 shares of common stock. | ||
Preferred Stock Shares Issued | 250,000 | 250,000 | |
Preferred Stock Shares Outstanding | 250,000 | 250,000 | |
Common Stock Par Value | $ 0.0001 | $ 0.0001 | |
Common Stock Shares Authorized | 2,000,000,000 | 2,000,000,000 | |
Common Stock Shares Issued | 111,225,013 | 158,503,951 | |
Common Stock Shares Outstanding | 111,225,013 | 158,503,951 | |
Settlement Agreement, Cash Paid | $ 19,250 | ||
Settlement Agreement, Debt Forgiveness | $ 5,000 | ||
Stock Returned, Shares | 25,982,119 | 21,296,819 | |
Stock Returned, Value | $ 19,250 |
3. COMMITMENT AND CONTINGENCI17
3. COMMITMENT AND CONTINGENCIES (Details Narrative) - 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 | Dec. 31, 2013 | Dec. 31, 2011 | |
Rental Payments | $ 450 | $ 450 | |||||
Rent Expense | 1,908 | $ 1,908 | 4,293 | $ 4,293 | |||
Malpractice Loss Contingency | 50,000 | $ 500,000 | $ 100,000 | ||||
Malpractice Payable | $ 40,000 | 40,000 | |||||
Legal Settlements, Payments Made | $ 19,250 | $ 50,000 | |||||
Chief Executive Officer | |||||||
Base Salary | $ 80,000 | ||||||
Bonus Description | The bonuses are ranging from $40,000 to $100,000 for gross revenues ranging from $3,750,000 to $7,500,000 and over $7,500,000. | ||||||
Senior Vice President of Sales | |||||||
Base Salary | $ 80,000 | ||||||
Bonus Description | The bonuses are ranging from $40,000 to $100,000 for the gross revenue ranging from $3,750,000 to $7,500,000 and over $7,500,000. |
4. NOTE RECEIVABLE - RELATED 18
4. NOTE RECEIVABLE - RELATED PARTY (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended |
May. 31, 2015 | Sep. 30, 2015 | |
Payables and Accruals [Abstract] | ||
Settlement Agreement, Cash Paid | $ 19,250 | |
Settlement Agreement, Debt Forgiveness | $ 5,000 | |
Stock Returned, Shares | 25,982,119 | 21,296,819 |
NOTE 5 - DUE TO RELATED PARTY (
NOTE 5 - DUE TO RELATED PARTY (Details Narrative) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Due to related party | $ 4,000 |
6. CONCENTRATIONS (Details Narr
6. CONCENTRATIONS (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Accounts Receivable from Customers Relinquishing Timeshares | $ 9,000 | $ 9,000 |
Sales Revenue, Net [Member] | ||
Concentration Risk | 72.00% | 60.00% |
Accounts Receivable [Member] | ||
Concentration Risk | 14.00% | 61.00% |
7. Discontinued Operations - Di
7. Discontinued Operations - Discontinued Operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating expenses: | ||||||
General and administrative | $ 75,535 | $ 556,516 | $ 200,366 | $ 759,338 | ||
Income from discontinued operations | 12,165 | (448,349) | 13,302 | (448,349) | ||
Cash | 170,863 | $ 217,256 | 170,863 | $ 217,256 | $ 372,206 | $ 538,633 |
Assets from discontinued operations | 29,402 | 29,402 | 45,546 | |||
Discontinued Operations, Disposed of by Means Other than Sale [Member] | ||||||
Timeshare deed liquidation revenue | 41,490 | |||||
Operating expenses: | ||||||
General and administrative | 28,188 | |||||
Total operating expenses | 28,188 | |||||
Income from discontinued operations | 13,302 | |||||
Cash | 20,402 | 20,402 | 20,496 | |||
Accounts receivable | $ 9,000 | $ 9,000 | 9,000 | |||
Escrow funds - timeshare | 16,050 | |||||
Assets from discontinued operations | $ 29,402 | $ 29,402 | 45,546 | |||
Accrued legal settlements | 114,294 | 114,294 | 108,589 | |||
Client Deposits - Timeshare | 5,295 | 5,295 | 46,784 | |||
Other | 4,058 | 4,058 | 11,933 | |||
Liabilities from discontinued operations | $ 123,647 | $ 123,647 | $ 167,306 |