| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation The accompanying unaudited consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements
and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (the “SEC”).
Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States
of America for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited financial statements
contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company
as of March 31, 2022, and the results of operations and cash flows for the periods presented. The results of operations for the three
months ended March 31, 2022 are not necessarily indicative of the operating results for the full fiscal year or any future period. These
unaudited consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included
in the Form 10-K for the year ended December 31, 2021, filed with the SEC on April 15, 2022. The accompanying consolidated financial statements reflect the accounts
of Healthtech Solutions, Inc. and its subsidiaries, Medi-Scan, RevHeart and Healthtech Wound Care, All significant inter-company accounts
and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements. Management makes these estimates using the
best information available at the time the estimates are made; however, actual results could differ from those estimates. These estimates
are often based on complex judgments and assumptions that management believes to be reasonable but are inherently uncertain and unpredictable.
Actual results could differ from these estimates. Concentrations of Credit Risk We maintain our cash in bank deposit accounts, the balances of which at
times may exceed federally insured limits. We continually monitor our banking relationships and have not experienced any losses in our
accounts. We believe we are not exposed to any significant credit risk on cash. Software Development Costs In accordance with ASC 985-20, the Company expenses software
development costs, including costs to develop software products or the software component of products to be sold, leased, or
marketed to external users, before technological feasibility is reached. Technological feasibility is typically reached shortly
before the release of such products. Software development costs also include costs to develop software to be used solely to meet
internal needs and cloud-based applications used to deliver our services. The Company capitalizes development costs related to these
software applications once the preliminary project stage is complete and it is probable that the project will be completed, and the
software will be used to perform the function intended. Capitalization ends, and amortization begins when the product is available
for general release to customers. Research and Development Research and development costs are expensed when incurred. Research and
development costs include costs of research, engineering, and technical activities to develop a new product or service or make significant
improvement to an existing product or manufacturing process. Research and development costs also include pre-approval regulatory and clinical
trial expenses. Intangible Assets The Company reviews goodwill and intangible assets with indefinite lives
for impairment according to the provisions of ASC Topic 350: "Intangibles - Goodwill and Other" Convertible Instruments The Company evaluates and accounts for conversion options embedded in convertible
instruments in accordance with ASC 815, Derivatives and Hedging Activities. Applicable GAAP requires companies to bifurcate conversion options from
their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. The criteria
include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely
related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative
instrument and the host contract is not re-measured at fair value under other GAAP with changes in fair value reported in earnings as
they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. The Company accounts for convertible instruments (when it has been determined
that the embedded conversion options should not be bifurcated from their host instruments) as follows: the Company records, when necessary,
discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between
the fair value of the underlying common stock at the commitment date of this note transaction and the effective conversion price embedded
in this note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The Company accounts for the conversion of convertible debt when a conversion
option has been bifurcated using the general extinguishment standards. The debt and equity linked derivatives are removed at their carrying
amounts and the shares issued are measured at their then-current fair value, with any difference recorded as a gain or loss on extinguishment
of the two separate accounting liabilities. Share-Based Compensation The Company follows the provisions of FASB ASC 718 requiring employee
equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at grant date,
based on the fair value of the award and recognized over its vesting period. No equity instruments were granted to employees during
the quarter ending March 31, 2022 and no compensation expense is required to be recognized under provisions of ASC 718 with respect
to employees. Fair Value of Financial Instruments The Company follows ASC 825-10-50-10 with respect to disclosures about
fair value of its financial instruments and ASC 820-10-35-37 to measure the fair value of its financial instruments. ASC 820-10-35-37
establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America, and expands
disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures,
ASC 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into
three (3) broad levels. 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 three (3) levels of fair value hierarchy defined by Paragraph
820-10-35-37 are described below:
· Level 1: Quoted market prices available in active markets for identical
assets or liabilities as of the reporting date.
· Level 2: Pricing inputs other than quoted prices in active markets included
in Level 1, which are either directly or indirectly observable as of the reporting date.
· Level 3: Pricing inputs that are generally unobservable inputs and not corroborated
by market data. Determining which category an asset or liability falls within the hierarchy
requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. Financial assets and liabilities of the Company primarily consist of cash,
prepaid expenses, accounts payable and accrued liabilities, other payables and convertible debentures. As of March 31, 2022, the carrying
values of these financial instruments (other than convertible debentures) approximated their fair values due to the short-term nature
of these instruments. See There were no transfers between level 1, level 2 or level 3 measurements
during the quarter ending March 31, 2022. Earnings Per Share The Company calculates earnings per share (“EPS”) as required
by ASC 260, Earnings Per Share. Basic EPS is calculated by dividing the net income available to common stockholders by the weighted average
number of common shares outstanding for the period, excluding common stock equivalents. Diluted EPS is computed by dividing the net income
available to common stockholders by the weighted average number of common shares outstanding for the period, plus the weighted average
number of dilutive common stock equivalents outstanding for the period determined using the treasury-stock method. For periods with a
net loss, the dilutive common stock equivalents are excluded from the diluted EPS calculation. For purposes of this calculation, common
stock subject to repurchase by the Company, options, and warrants are considered to be common stock equivalents and are only included
in the calculation of diluted earnings per share when their effect is dilutive. Income Taxes The Company follows ASC Topic 740, Income Taxes, which requires the recognition
of deferred income taxes for the differences between the basis of assets and liabilities for financial statements and income tax purposes.
Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases
of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable
to the periods in which the differences are expected to affect taxable income. Deferred tax assets are also recognized for operating losses and for tax
credit carryforwards. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be
realized. ASC 740-10-30 requires income tax positions to meet a more-likely-than-not
recognition threshold to be recognized in the financial statements. Under ASC 740-10-30, tax positions that previously failed to meet
the more-likely-than-not threshold should be recognized in the first subsequent financial reporting period in which that threshold is
met. Under ASC 740-10-40, previously recognized tax positions that no longer meet the more-likely-than-not threshold should be derecognized
in the first subsequent financial reporting period in which that threshold is no longer met. The Company had no material uncertain tax
positions as of March 31, 2022 or December 31, 2021. The application of tax laws and regulations is subject to legal and factual
interpretation, judgment and uncertainty. Tax laws and regulations themselves are subject to change as a result of changes in fiscal policy,
changes in legislation, the evolution of regulations and court rulings. Therefore, the actual liability may be materially different from
our estimates, which could result in the need to record additional tax liabilities or potentially reverse previously recorded tax liabilities
or the deferred tax asset valuation allowance. Recently Adopted Accounting Standards The Company has reviewed recently issued accounting pronouncements and
plans to adopt those that are applicable to it. The Company does not expect the adoption of any recently issued pronouncements to have
an impact on its results of operations or financial position. |
