Medical Imaging (MEDD) 10-Q 15 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 08, 2016
Document And Entity Information
Entity Registrant Name	MEDICAL IMAGING CORP.
Entity Central Index Key	1,370,804
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
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		25,641,481
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current Assets
Cash and Cash Equivalents	$ 136,279	$ 109,914
Accounts Receivable
Accounts Receivable - Direct Billings	1,138,705	708,479
Accounts Receivable - Third Party Billings (Florida Operations)	424,310	503,206
Allowance for Doubtful Accounts - Direct Billings	(56,475)	(56,475)
Allowance for Doubtful Accounts - Third Party Billings (Florida Operations)	(275,000)	(275,000)
Accounts Receivable, net	1,231,540	880,210
Prepaid Expenses	30,172	19,204
Total Current Assets	1,397,991	1,009,328
Property and Equipment
Property and Equipment	3,523,430	3,454,718
Less: Accumulated Depreciation	(1,280,235)	(998,224)
Total Property and Equipment, net	2,243,195	2,456,494
Goodwill	1,977,670	1,977,670
Other Assets
Deposits	21,687	11,764
Total Other Assets	21,687	11,764
TOTAL ASSETS	5,640,543	5,455,256
Current Liabilities
Accounts Payable	1,482,472	1,212,430
Accrued Liabilities	643,206	580,336
Obligations Under Capital Lease, short term portion	167,246	205,740
Promissory Notes, short term portion	224,597	409,789
Royalty Financing, short term portion	131,816	106,141
Convertible Notes, net short term portion	2,189,793	156,425
Total Current Liabilities	4,839,130	2,670,861
Long Term Liabilities
Obligations Under Capital Lease, long term portion	225,635	267,146
Prommisory Notes, long term portion	500,000	0
Royalty Financing, long term portion	1,775,761	1,828,960
Convertible Notes, net, long term portion	215,854	2,267,575
Total Long Term Liabilities	2,717,250	4,363,681
Total Liabilities	7,556,380	7,034,542
Commitments and Contingencies
Stockholders' Deficit
Preferred Stock	0	0
Common Stock	25,642	25,392
Additional Paid-In Capital	2,048,823	2,034,758
Accumulated Other Comprehensive Income	208,849	140,670
Accumulated Deficit	(4,199,151)	(3,780,106)
Total Stockholders' Deficit	(1,915,837)	(1,579,286)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 5,640,543	$ 5,455,256

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value in dollars	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value in dollars	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	25,641,481	25,391,481
Common stock, shares outstanding	25,641,481	25,391,481

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue:
Sales	$ 1,910,038	$ 2,004,301	$ 3,832,523	$ 3,824,818
Less: Cost of Sales	930,936	976,238	1,886,116	1,927,704
Gross Margin	979,102	1,028,063	1,946,407	1,897,114
Operating Expenses:
Labor	330,170	307,722	648,172	639,493
General and Administrative	193,152	163,623	410,242	352,425
Rent Office Space and Servers	140,908	132,759	278,935	265,452
Depreciation	140,166	137,014	277,748	272,738
Legal and Professional	65,595	79,300	172,471	222,195
Insurance	23,853	24,212	45,445	49,162
Advertising	21,541	8,066	27,892	17,582
Travel	10,534	12,596	19,396	21,111
Increase in Allowance for Doubtful Accounts - Direct Billings	0	6,379	0	6,379
Management Fees	5,100	5,100	10,200	23,413
Total Operating Expenses	931,019	876,771	1,890,501	1,869,950
Income from Operations	48,083	151,292	55,906	27,164
Other Income and (Expenses):
Other Income	50,082	47,677	56,092	53,701
Foreign Currency Gains (Losses)	(927)	(19,755)	(39,251)	(17,519)
Amortization of Debt Discount	(96,458)	(177,607)	(257,792)	(289,898)
Interest & Penalties Expense	(128,853)	(15,397)	(234,000)	(173,209)
Total Other Income (Expenses)	(176,156)	(165,082)	(474,951)	(426,925)
Loss Before Provision for Income Taxes	(128,073)	(13,790)	(419,045)	(399,761)
Provision for Income (Taxes) Credit	0	0	0	0
Net Loss	(128,073)	(13,790)	(419,045)	(399,761)
Comprehensive Income	27,715	37,654	68,179	57,051
Total Comprehensive Loss	$ (100,358)	$ 23,864	$ (350,866)	$ (342,710)
Basic and Diluted Loss per Share	$ (0.004)	$ 0.001	$ (0.014)	$ (0.014)
Weighted Average Shares Outstanding - Basic and Diluted	25,578,732	24,166,481	25,511,642	24,131,342

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)	$ (419,045)	$ (399,761)
Adjustments to Reconcile Net Loss to Net Cash provided by Operating Activities:
Depreciation	277,748	272,738
Amortization of Debt Discount	257,792	289,898
Stock-based compensation	5,000	92,919
Foreign currency transaction (Gain) Loss	(1,181)	429
Changes in operating assets and liabilities:
Accounts Receivable	(351,330)	(464,997)
Allowance for Doubtful Accounts - Direct Billings	0	6,379
Change in allowance for Doubtful Accounts - Third Party Billings (Florida Operations)	0	0
Prepaid Expenses	(15,660)	(17,079)
Loans Receivable	0	1,497
Accounts Payable and Accrued Liabilities	316,999	156,516
NET CASH AND CASH EQUIVALENTS PROVIDED BY (USED IN) OPERATING ACTIVITIES	70,323	(61,461)
CASH FLOWS FROM INVESTING ACTIVITIES:
Deposit on Equipment	(5,000)	0
Equipment Purchase	(46,613)	(42,806)
NET CASH USED IN INVESTING ACTIVITIES	(51,613)	(42,806)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Promissory Notes	670,000	854,044
Proceeds from Convertible Debt	0	20,000
Royalty Fee Payment	(182,933)	(205,172)
Principal Payments on Promissory Notes	(420,700)	(662,354)
Principal Payments on Convertible Debt	(30,000)	(30,000)
Principal Payments on Capital Lease Obligations	(96,891)	(82,770)
NET CASH AND CASH EQUIVALENTS USED IN FINANCING ACTIVITIES	(60,524)	(106,252)
Gain (Loss) Due to Foreign Currency Translation	68,179	57,051
NET CHANGE IN CASH AND CASH EQUIVALENTS	26,365	(153,468)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	109,914	188,206
CASH AND CASH EQUIVALENTS AT END OF PERIOD	136,279	34,738
Cash paid during the year for:
Interest	269,102	173,209
Income Taxes	51,187	28,813
Non-cash financing and investing activities:
Shares Issued for Convertible Note	9,030	1,040
Warrants Issued for Converted Notes	285	0
Equipment purchase under Capital Lease	16,618	20,399
Accrued Interest converted to Note	$ 30,000	$ 75,039

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Summary of Significant Accounting Policies	Note 1. Organization and Summary of Significant Accounting Policies Organization and Basis of Presentation Medical Imaging Corp., (“MIC” or the “Company”), a Nevada Corporation was incorporated in 2000. In 2005, the Company developed a business plan for private healthcare opportunities in Canada with the objective of owning and operating private diagnostic imaging clinics. In 2009, the Company purchased Canadian Teleradiology Services Inc., which operates as: Custom Teleradiology Services (“CTS”). CTS provides remote reading of medical diagnostic imaging scans for rural hospitals and clinics in Canada. In early 2010, the Company modified its business plan to grow its CTS subsidiary while commencing the acquisition of existing full service imaging clinics located in the United States and exploring the development of new diagnostic imaging technology. In 2012, the Company purchased Schuylkill Open MRI Inc., which operates as: Schuylkill Medical Imaging (“SMI”), an independent diagnostic imaging facility located in Pottsville, Pennsylvania. In 2014, the company purchased Partners Imaging Center of Venice, LLC (“PIV”) located in Venice, Florida; Partners Imaging Center of Naples, LLC (“PIN”) located in Naples, Florida; and Partners Imaging Center of Charlotte, LLC (“PIC”) located in Port Charlotte, Florida. Basis of Presentation These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in U.S. dollars. The Company’s fiscal year-end is December 31. Principle of Consolidation The consolidated financial statements include the accounts of Medical Imaging, Corp., and its wholly-owned subsidiaries, CTS, SMI, PIV, PIN, and PIC. Intercompany accounts and transactions have been eliminated in the consolidated financial statements. CTS’, SMI’s, PIV’s, PIN’s, and PIC’s accumulated earnings prior to their acquisitions are not included in the consolidated balance sheet. Use of Estimates and Assumptions The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities known to exist as of the date the consolidated financial statements are published, and (iii) the reported amount of net sales, expenses and costs recognized during the periods presented. Adjustments made with respect to the use of estimates often relate to improved information not previously available. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of consolidated financial statements; accordingly, actual results could differ from these estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At June 30, 2016, and December 31, 2015, cash includes cash on hand and cash in the bank. Accounts Receivable Credit Risk The allowance for doubtful accounts is maintained at a level sufficient to provide for estimated credit losses based on evaluating known and inherent risks in the receivables portfolio. Management evaluates various factors including expected losses and economic conditions to predict the estimated realization on outstanding receivables. As of June 30, 2016 and December 31, 2015, the allowance for doubtful accounts from direct billings was $56,475. For the six months ended June 30, 2016 and 2015 there was change in allowance from direct billings of $0 and $6,379, respectively. As of June 30, 2016 and December 31, 2015, the allowance for doubtful accounts from third party billings (Florida operations) was $275,000. There was no change in the allowance for doubtful accounts from third party billings (Florida operations) for the six months ended June 30, 2016 and 2015. In connection with the acquisition of the three facilities located in Venice, Port Charlotte and Naples, Florida, the Company, in October 2014, entered into professional services agreements whereby the seller of those three facilities continued to handle the billing and collection for the imaging centers (the “third party billing”). The seller must still provide a full set of verification data to the Company with respect to its account receivable processing and collections so that the Company can determine the extent to which accounts submitted by the seller in connection with the third party billing have been collected or denied. Final verification will only be able to be completed after the conclusion of the services performed pursuant to the third party billing contract, which is expected during the 2016 fiscal year. Goodwill and Indefinite - Lived Intangible Assets The Company follows the provisions of Financial Accounting Standard (“FASB”) Accounting Standards Codification (“ASC”) Topic 350, Goodwill and Other Intangible Assets No goodwill impairment was recognized during 2016 or 2015. Revenue Recognition The Company holds contracts with several hospitals and groups of health care facilities to provide Teleradiology services for a specific period of time. The Company bills for services rendered on a monthly basis. For the six months ended June 30, 2016, CTS held six contracts; four contracts that are renewable on a year-to-year basis and two contracts that are renewable in 2016 and 2018. In accordance with the requirement of Staff Accounting Bulletin (“SAB”) 104, the Company recognizes revenue when: (1) persuasive evidence of an arrangement exists (contracts); (2) delivery has occurred (monthly); (3) the seller’s price is fixed or determinable (per the customer’s contract, and services performed); and (4) collectability is reasonably assured (based upon our credit policy). Revenue is accounted for under the guidelines established by SAB 101, Revenue Recognition in Financial Statements, Revenue Recognition – Principal Agent Considerations For SMI, PIV, PIN, and PIC, revenue is recognized on the date of service and recorded on an aggregate monthly basis. Cost of Sales Cost of sales includes fees paid to radiologists for reading services, transcription fees, equipment repairs, system license and usage costs. Impairment of Long-Lived Assets In accordance with ASC Topic 360, Property, Plant and Equipment, Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Amortization and Depreciation Depreciation and amortization are calculated using the straight-line method over the following useful lives: 3 - 7 years Equipment 5 – 7 years Furniture and Fixtures 3 - 5 years Non-compete Contract 5 - 15 years Leasehold Improvements Stock Based Compensation The Company follows ASC 718, Stock Compensation The Company measures all share-based payments to employees (which includes non-employee Board of Directors), including employee stock options, warrants and restricted stock, at the fair value of the award and expenses it over the requisite service period (generally the vesting period). The fair value of common stock options or warrants granted to employees is estimated at the date of grant using the binomial option pricing model (“BOPM”). The calculation also takes into account the common stock fair market value at the grant date, the exercise price, the expected life of the common stock option or warrant, the dividend yield and the risk-free interest rate. The Company from time to time may issue stock options, warrants and restricted stock to acquire goods or services from third parties. Restricted stock, options or warrants issued to other than employees or directors are recorded on the basis of their fair value. The options or warrants are valued using the BOPM on the basis of the market price of the underlying equity instrument on the “valuation date,” which for options and warrants related to contracts that have substantial disincentives to non-performance, is the date of the contract, and for all other contracts is the vesting date. Expenses related to the options and warrants are recognized on a straight-line basis over the period which services are to be received. There was no stock-based compensation expense to non-employees for the three months ended June 30, 2016 and 2015. For the three months ended June 30, 2016, the Company recognized stock based compensation expenses from stock granted to employees of $5,000. There was no stock-based compensation expense to employees for the three months ended June 30, 2015. There was no stock-based compensation expense to non-employees for the six months ended June 30, 2016, and 2015. For the six months ended June 30, 2016, the Company recognized stock based compensation expenses from stock granted to employees of $5,000. There was no stock-based compensation expense to employees for the six months ended June 30, 2015. Fair Value of Financial Instruments The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties other than in a forced sale or liquidation. The carrying amounts of the Company’s financial instruments, including cash, accounts receivable, prepaid expenses, accounts payable, accrued liabilities and notes and loans payable approximate fair value due to their maturities. Fair Value Measurements The Company follows paragraph 825-10-50-10 of the FASB AS for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB ASC (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in U.S. GAAP, and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three 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 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 observable inputs and not corroborated by market data. The carrying amounts of the Company’s financial assets and liabilities, such as cash and accounts payable approximate their fair values because of the short maturity of these instruments. The Company does not have assets and liabilities that are carried at fair value on a recurring basis. Foreign Currency Translation The Company’s functional currency for its wholly-owned subsidiary, CTS, is the Canadian dollar, and their financial statements have been translated into U.S. dollars. The Canadian dollar based accounts of the Company’s foreign operations have been translated into United States dollars using the current rate method. Assets and liabilities of those operations are translated into U.S. dollars using exchange rates as of the balance sheet date; income and expenses are translated using the weighted average exchange rates for the reporting period. Translation adjustments are recorded as accumulated other comprehensive income (loss), a separate component of stockholders’ equity. The Company recognized a foreign currency loss on transactions from operations of $927, and $19,755 for the three months ended June 30, 2016 and 2015, respectively. The Company recognized a foreign currency loss on transactions from operations of $39,251 and $17,519 for the six months ended June 30, 2016 and 2015, respectively. The Company recognized other comprehensive income of $27,715 and $37,654 for the three months ended June 30, 2016 and 2015, respectively. The Company recognized other comprehensive income of $68,179 and $57,051 for the six months ended June 30, 2016 and 2015, respectively. Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes Net Income (Loss) Per Share The Company follows the provisions of ASC Topic 260, Earnings per Share Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vest resulting in the issuance of common stock or conversion of notes into shares of the Company’s common stock that could increase the number of shares outstanding and lower the earnings per share of the Company’s common stock. This calculation is not done for periods in a loss position as this would be antidilutive. The information related to basic and diluted earnings per share is as follows: Three Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Numerator: Total Comprehensive Income (Loss) $ (100,358) $ 23,864 $ (350,866) $ (342,710) Denominator: Weighted average number of shares outstanding – basic and diluted 25,578,732 24,166,481 25,511,642 24,131,342 EPS: Basic and Diluted: $ (0.004) $ 0.001 $ (0.014) $ (0.014) Recent Accounting Updates The Company does not expect the adoption of any other recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow. Updates issued but not yet adopted The Company does not expect the adoption of any other recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow.

Interim Financial Statements

Interim Financial Statements	6 Months Ended
	Jun. 30, 2016
Quarterly Financial Information Disclosure [Abstract]
Interim Financial Statements	Note 2. Interim Financial Statements The accompanying interim unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month period ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, refer to the financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015.

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	Note 3. Property and Equipment Property and equipment are stated at cost. Depreciation is calculated using the straight - line method over the estimated useful life of the assets. At June 30, 2016 and December 31, 2015, the major class of property and equipment were as follows: June 30, 2016 December 31, 2015 Estimated useful lives Computer/Office Equipment $ 476,217 $ 454,117 3-7 years Medical Equipment 2,194,827 2,156,820 3-7 years Leasehold Improvements 852,386 843,781 5-15 years Less: Accumulated Depreciation (1,280,235) (998,224) Net Book Value $ 2,243,195 $ 2,456,494 Depreciation expense was $140,166 and $137,014 for the three months ended June 30, 2016 and 2015, respectively. Depreciation expense was $277,748 and $272,738 for the six months ended June 30, 2016 and 2015, respectively.

Goodwill

Goodwill	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Note 4. Goodwill

Operating Lease Commitments

Operating Lease Commitments	6 Months Ended
	Jun. 30, 2016
Leases, Operating [Abstract]
Operating Lease Commitments	Note 5. Operating Lease Commitments Leases, CTS has a lease commitment for its new office space in Toronto, Canada of approximately $2,600 minimum rental, and approximately $3,400 in utilities, realty taxes, and operating costs, for a total of approximately $6,000 per month. The lease will expire April 30, 2021. SMI entered into a lease commitment for its office space in Pottsville, Pennsylvania. The lease will expire on July 30, 2021. Monthly rental amounts are $5,437 per month plus approximately $1,674 in utilities, realty taxes, and operating costs. SMI has a lease for its x-ray equipment space in Pottsville, Pennsylvania. The lease term is seven years from commitment date of October 2014. Monthly lease payments are $3,000. SMI has a lease for use of x-ray equipment and space in Pottsville, Pennsylvania. The lease term is two years from commitment date of January 2016. Monthly lease payments are $2,000. SMI has a lease for office space in Dallas, Texas of approximately $880 per month. The lease will expire in August 31, 2016 and will not be renewed. PIV has a lease for office space in Venice, Florida. The lease will expire September 30, 2021. Monthly rental amounts are $15,377 per month. PIN has a lease for office space in Naples, Florida. The lease will expire January 1, 2020. Monthly rental amounts are $9,543 per month. PIC has a lease for office space in Port Charlotte, Florida. The lease will expire June 20, 2021. Monthly rental amounts are $5,512 per month. Expected lease commitments as of June 30, 2016: Year Total 2016 $ 347,017 2017 660,514 2018 567,514 2019 546,514 2020 431,998 2021 265,241 $ 2,818,799

Obligations Under Capital Lease

Obligations Under Capital Lease	6 Months Ended
	Jun. 30, 2016
Leases, Capital [Abstract]
Obligations Under Capital Lease	Note 6. Obligations Under Capital Lease SMI MRI Machines Capital Lease: On December 10, 2012, the Company entered into a lease agreement with one of the sellers of SMI to lease the two MRI machines. Under the terms of the lease, SMI is to make monthly payments of $11,013, plus applicable sales tax, over a period of 48 months. In addition, SMI agreed to make a one-time lease payment of $125,000, which was paid by March 30, 2013. The Company has guaranteed all of SMI’s obligations under the lease. At the end of the lease, SMI will have the option to purchase the MRI machines for a total purchase price of $1.00. The lease was accounted for as a capital lease for a total value of $555,000. The gross amount of the equipment held under capital leases totals $555,000. Net book value at June 30, 2016 was $157,333 after accumulated depreciation of $397,667. Net book value at December 31, 2015 was $218,833 after accumulated depreciation of $342,167. Amortization of the capital lease assets is included in the depreciation expense of $27,750 for the three months ended June 30, 2016, and 2015. SMI X-ray Machine Capital Lease: On July 3, 2014, Company entered into a capital lease agreement to lease the x-ray machine that was delivered and installed in July 2014. Under the terms of the lease, the Company’s subsidiary, SMI, is to make monthly payments of $1,495, plus applicable sales tax, over a period of 60 months. At the end of the lease, SMI will have the option to purchase the MRI machines for a total purchase price of $1.00. The lease was accounted for as a capital lease for a total value of $78,250. The gross amount of the x-ray machine held under the capital lease is $78,250. Net book value at June 30, 2016 was $46,950 after accumulated amortization of $31,300. Net book value at December 31, 2015 was $54,775 after accumulated amortization of $23,475. Amortization of the capital lease assets is included in the depreciation expense of $3,913 for the three months ended June 30, 2016, and 2015, respectively. SMI PACS/RIS System Capital Lease: On August 19, 2014, the Company entered into a capital lease agreement to lease PACS/RIS system that was delivered and installed in December 2014. Under the terms of the lease, the Company’s subsidiary, SMI, is to make monthly payments of $3,115, plus applicable sales tax, over a period of 60 months. At the end of the lease, SMI will have the option to purchase the system for a total purchase price of $1.00. The lease was accounted for as a capital lease for a total value of $162,333. The gross amount of the PACS/RIS system held under the capital lease is $162,333. Net book value at June 30, 2016 was $108,222 after accumulated amortization of $54,111. Net book value at December 31, 2015 was $124,455 after accumulated amortization of $37,878. Amortization of the capital lease assets is included in the depreciation expense of $8,355 for the three months ended June 30, 2016, and 2015. SMI Copier Capital Lease: On February 1, 2016, the Company entered into a capital lease agreement to lease computers that were delivered and installed in February 2016. Under the terms of the lease, the Company is to make monthly payments of $135, plus applicable sales tax, over a period of 31 months. At the end of the lease, the company will have the option to purchase the computers for a total purchase price of $1.00. The lease was accounted for as a capital lease for a total value of $2,968. In addition, SMI made a deposit payment of $530 that was applied to the balance owing towards the copier. The gross amount of the Digital Printers held under the capital lease is $3,498. Net book value at June 30, 2016 was $2,818 after accumulated amortization of $680. Amortization of the capital lease assets is included in the depreciation expense of $486 and $0 for the three months ended June 30, 2016, and 2015, respectively. PV, PN, PC PACS/RIS Capital Lease: On November 26, 2014, the Company entered into a capital lease agreement to lease PACS/RIS system that was delivered and installed in December 2014. Under the terms of the lease, the Company’s subsidiary, PIV, is to make monthly payments of $3,094, plus applicable sales tax, over a period of 60 months. At the end of the lease, PIV will have the option to purchase the system for a total purchase price of $1.00. The lease was accounted for as a capital lease for a total value of $167,107. The gross amount of the PACS/RIS system held under the capital lease is $167,107. Net book value at June 30, 2016 was $115,582 after accumulated amortization of $51,525. Net book value at December 31, 2015 was $132,292 after accumulated amortization of $34,815. Amortization of the capital lease assets is included in the depreciation expense of $8,355for the three months ended June 30, 2016, and 2015, respectively. PV, PN, PC Computers Capital Lease: On December 10, 2014, the Company entered into a capital lease agreement to lease computers that were delivered and installed in December 2014. Under the terms of the lease, the Company is to make monthly payments of $813, plus applicable sales tax, over a period of 36 months. At the end of the lease, the company will have the option to purchase the computers for a total purchase price of $1.00. The lease was accounted for as a capital lease for a total value of $25,108. The gross amount of the computers held under the capital lease is $25,108. Net book value at June 30, 2016 was $12,205 after accumulated amortization of $12,903. Net book value at December 31, 2015 was $16,390 after accumulated amortization of $8,718. Amortization of the capital lease assets is included in the depreciation expense of $2,092 for the three months ended June 30, 2016, and 2015, respectively. PV, PN, PC Digital Printers Capital Lease: On March 15, 2016, the Company entered into a capital lease agreement to lease digital printers that were delivered and installed in March 2016. Under the terms of the lease, the Company is to make monthly payments of $423, plus applicable sales tax, over a period of 36 months. At the end of the lease, the company will have the option to purchase the computers for a total purchase price of $1.00. The lease was accounted for as a capital lease for a total value of $13,120. The gross amount of the Digital Printers held under the capital lease is $13,120. Net book value at June 30, 2016 was $11,844 after accumulated amortization of $1,276. Amortization of the capital lease assets is included in the depreciation expense of $1,093 and $0 for the three months ended June 30, 2016, and 2015, respectively. CTS Computers Lease On January 21, 2015, the Company entered into a capital lease agreement to lease computers that were installed on the same date of acceptance. Under the terms of the lease, the Company is to make monthly payments of $529, plus applicable sales tax, over a period of 36 months. At the end of the lease, the Company will have the option to purchase the computers for a total purchase price of $1.00. The lease was accounted for as a capital lease for a total value of $19,560. The gross amount of the computers held under the capital lease is $19,560. Net book value at June 30, 2016 was $11,953 after accumulated amortization of $7,607. Net book value at December 31, 2015 was $12,767 after accumulated amortization of $6,230. Amortization of the capital lease assets is included in the depreciation expense of $1,592 for the three months ended June 30, 2016, and 2015, respectively. Minimum future lease payments under the capital leases as of June 30, 2016 are as follow: Minimum Lease Payments Total 2016 $ 123,839 2017 114,858 2018 99,733 2019 84,201 2020 3,094 Total minimum lease payments 425,725 Less amount representing interest 32,844 Present value of minimum lease payments 392,881 Less current portion of minimum lease payments 167,246 Long-term capital lease obligations at June 30, 2016 $ 225,635

Promissory Notes

Promissory Notes	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Promissory Notes	Note 7. Promissory Notes During the year ended December 31, 2015, the Company received $559,000 from forward sale of receivables. In accordance with ASC 860, Transfers and Servicing, ("ASC 860"), the sale of future accounts receivable as per the agreements does not represent a sale of accounts receivable for accounting purposes and as such, presented in the consolidated financial statements as promissory notes. The forward sales of receivables do not carry a security interest and the only recourse is against accounts receivable. The forward sales of receivables call for weekly payments of $13,000 towards the principal balance and interest. The forward sales of receivables were paid off early on February 29, 2016. In June and December 2015, the Company has issued loans of $120,700 and $86,400, respectively. The loans’ terms call for a daily payment of $509, towards the principal balance and interest. The final payment is due February 14, 2017. The loans are collateralized by the Accounts Receivable of: SMI, PIV, PIN, and PIC. In June 2015, the Company issued a loan of $147,224. The loan terms call for a daily payment of $553, towards the principal balance and interest. The loans were collateralized by the Accounts Receivable of: CTS SMI, PIV, PIN, and PIC. The final payment had an original maturity date of July 7, 2016. The note was paid off early on March 2, 2016. On February 23, 2016 the Company sold a bridge promissory note for $100,000 to a private investor. The Note pays interest monthly at an annual rate of 12%. As an inducement to purchase the Note, the investor was also given 100,000 shares of common stock of the Company. The note is due on February 23, 2017 but may be converted into a future financing of notes sold by the Company. In accordance with ASC 470, Debt with conversion and other options, (“ASC 470”) On February 25, 2016, the Company sold to Grenville Strategic Royalty Corp. (“Holder”) a note for the principal amount of $500,000. The Note pays interest monthly at an annual rate of 25%.From July 30, 2016 through to August 31, 2017, the Holder may elect to convert the Note into a temporary royalty and receive a monthly payment equal to a specified percentage of the Company’s revenue for the previous month, subject to certain minimum payments, in lieu of interest payments. However, in such case the Company may still buy back the temporary royalty for the original face value of the Note. If the Note is outstanding as of August 31, 2017, then the Note may be converted into a permanent royalty based on the revenues of the Company (the “Royalty”) at the Holder's election, subject to certain minimum payments. The Holder will maintain a security interest in the Company until such time as the Note is retired, the Company raises $1,200,000 in additional capital, or the Note is converted into the Royalty. On March 22, 2016, the Company sold additional $70,000 in a bridge promissory note to a private investor. The Note pays interest monthly at an annual rate of 12%. As an inducement to purchase the Note, the investor was also given 100,000 shares of common stock of the Company. The note is due on March 22, 2017 but may be converted into a future financing of notes sold by the Company. In accordance with ASC 470, Debt with conversion and other options, (“ASC 470”) A summary of the promissory notes is as follows: Issuance Date December 31, 2015 Balance Notes Issued Payments Changes in Discount June 30, 2016 Balance Maturity Date 21-Mar-11 $ 7,752 $ - (7,752) $ - $ - 18-Mar-16 16-Jun-15 108,456 - (63,954) 16,318 60,820 14-Feb-17 16-Jun-15 58,581 - (58,581) - - 02-Mar-16 04-Aug-15 10,000 - (10,000) - - 05-Jan-16 22-Sep-15 125,000 - (125,000) - - 29-Feb-16 22-Dec-15 100,000 - (100,000) - - 29-Feb-16 16-Feb-16 - 100,000 - (4,667) 95,333 23-Feb-17 22-Feb-16 - 500,000 - - 500,000 31-Aug-17 22-Mar-16 - 70,000 - (1,556) 68,444 22-Mar-17 Total $ 409,789 $ 670,000 $ (365,287) $ 10,095 $ 724,597

Convertible Notes

Convertible Notes	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Convertible Notes	Note 8. Convertible Notes Series B: On December 5, 2012 and March 27, 2013, the Company sold, through a private placement to accredited investors, three year 12% convertible notes (“Series B Notes”) in the aggregate principal amount of $1,865,000, and $365,000, respectively. The Notes pay interest at a rate of 12% per annum, payable to the holder at 1% per month, and are convertible into common shares of the Company at $0.15 per share. In addition, each purchaser of the Notes received shares dependent on the dollar amount of Notes purchased. The total number of shares of common stock issued was 5,315,000 shares. In accordance with ASC 470, Debt with conversion and other options, (“ASC 470”) On December 1, 2015, the holders of $1,840,000 Series B Notes have agreed to extend the maturity date of the debt outstanding to July 1, 2017 from its original maturity date of December 31, 2015. As part of the extension the Company issued warrants to entitle the holders to purchase up to 1,840,000 shares of common stock at an exercise price of $0.07 per share at any time from December 1, 2015 to July 1, 2018. The Company has valued the warrants at $0.0058 per issued share, and recorded a total discount of $10,672 to be amortized over the extension period on a monthly basis. This is from January 2016 to July 2017, an 18 month period. On March 31, 2016, the holders of $50,000 Series B Notes have agreed to extend the maturity date of the debt outstanding to September 1, 2017 from its original maturity date of March 31, 2016. As part of the extension the Company issued warrants to entitle the holders to purchase up to 50,000 shares of common stock at an exercise price of $0.07 per share at any time from March 31, 2016 to September 30, 2018. The Company has valued the warrants at $0.00278 per issued share, and recorded a total discount of $139 to be amortized over the extension period on a monthly basis. This is from April 2016 to September 2017, an 18 month period. On March 31, 2016, the holder of $25,000 Series B Notes has agreed to extend the maturity date of the debt outstanding to September 1, 2019 from its original maturity date of March 31, 2016. As part of the extension the Company issued warrants to entitle the holders to purchase up to 25,000 shares of common stock at an exercise price of $0.07 per share at any time from March 31, 2016 to September 30, 2019. The Company has valued the warrants at $0.00583 per issued share, and recorded a total discount of $146 to be amortized over the extension period on a monthly basis. This is from April 2016 to September 2019, a 30 month period. In accordance with ASC 480, Distinguishing Liabilities from Equity, · The debt can be transferred without the transfer of the warrants. · The warrants can be transferred without the transfer of the debt. · The warrants can be exercised while debt still outstanding. In accordance with ASC 470, if the warrants are classified as equity, then the proceeds should be allocated based on the relative fair values of the base instrument and the warrants following the guidance as in ASC 470. For the three months ended June 30, 2016, $60,450 of accrued interest was recorded on the notes and $45,450 was paid. The Details of Series B Notes are as follows: December 31, 2015 Balance Unamortized Discount June 30, 2016 Balance Maturity Date 03-Dec-12 $ 25,000 $ (96) $ 24,904 01-Jul-17 03-Dec-12 125,000 (482) 124,518 01-Jul-17 03-Dec-12 50,000 (193) 49,807 01-Jul-17 03-Dec-12 25,000 (96) 24,904 01-Jul-17 03-Dec-12 25,000 (96) 24,904 01-Jul-17 03-Dec-12 25,000 (96) 24,904 01-Jul-17 03-Dec-12 1,500,000 (5,780) 1,492,220 01-Jul-17 03-Dec-12 50,000 (194)) 49,806 01-Jul-17 03-Dec-12 15,000 (58) 14,942 01-Jul-17 03-Dec-12 100,000 - 100,000 31 -Dec-16 27-Mar-13 25,000 (58) 24,942 01-Sep-17 27-Mar-13 25,000 (58) 24,942 01-Sep-17 27-Mar-13 25,000 (135) 24,865 01-Sep-19 Total $ 2,015,000 $ (7,342) $ 2,007,658 Following are maturities of the long –term debt in Series B Notes for each of the next 5 years: Principal Payments 2016 $ 100,000 2017 1,890,000 2018 - 2019 25,000 Total $ 2,015,000 Series C: The Notes bear interest at a rate of 12% per annum, payable to the holder at1% per month, with the principal amount due on May 31, 2017. The Notes are convertible into shares of the Company’s common stock at an initial conversion rate of $0.15 per share. In addition, each holder of Series C Notes received shares dependent on the dollar amount of Notes purchased. On August 25, 2014, October 31, 2014 and February 17, 2015, the Company sold an additional $75,000, $50,000 and $20,000, respectively of Series C Notes. The total number of shares of common stock issued was 240,000 shares. In accordance with ASC 470 on issuance of the shares, the Company recognized additional paid-in capital and a discount against the notes for a total of $12,695. Amortization of the discount for the three months ended June 30, 2016 and 2015 was $1,277. For the three months ended June 30, 2016, $7,200 in accrued interest was recorded on the notes and paid. Issuance Date Balance at December 31, 2015 Unamortized Discount Balance at June 30, 2016 Balance at December 31, 2015 22-May-14 $ 50,000 $ (917) $ 49,083 31-May-17 22-May-14 22,500 (413) 22,088 31-May-17 22-May-14 22,500 (413) 22,088 31-May-17 25-Aug-14 50,000 (1,434) 48,566 31-Oct-17 25-Aug-14 25,000 (717) 24,283 31-Oct-17 31-Oct-14 50,000 (1,167) 48,833 31-Oct-17 17-Feb-15 20,000 (578) 19,422 17-Feb-18 Total $ 240,000 $ (5,636) $ 234,364 Following are maturities of the long –term debt in Series C Notes: Principal Payments 2016 $ - 2017 220,000 2018 20,000 Total $ 240,000 Individually issued Convertible Note: On March 26, 2014, the Company issued a $300,000 convertible note to a non-affiliate. The note pays interest at a rate of 12% per annum, payable to the holder at 1% per month. In addition to interest payments the Company will be making monthly payments of $5,000 towards the principal balance beginning June 1, 2014 for three years until the note due date of February 27, 2017. The note is convertible into common shares of the Company at $0.15 per share. In addition, the Note holder will receive 300,000 shares as part of the note agreement. For the three months ended June 30, 2016 and 2015, $5,835 and $7,180, respectively, of interest was recorded on the notes and paid. In accordance with ASC 470 on issuance of the shares, the Company recognized additional paid-in capital and a discount against the notes for a total of $25,500. Amortization of the discount for the three months ended June 30, 2016 and 2015 was $2,125. Summary of the note is as follows: Issuance Date December 31, 2015 Balance Payments Unamortized Discount June 30, 2016 Balance Maturity Date 26-Mar-14 $ 200,000 $ (30,000) $ (6,375) $ 163,625 27-Feb-17 Following are maturity of the individually issued convertible notes: Principal Payments 2016 $ 30,000 2017 140,000 Total $ 170,000

Royalty Financing

Royalty Financing	6 Months Ended
	Jun. 30, 2016
Royalty Financing
Royalty Financing	Note 9. Royalty Financing On October 31, 2014, the Company entered into a royalty purchase agreement with Grenville Strategic Royalty Corp. for the amount of $2,000,000. The agreement calls for a monthly payment to Grenville based on a percentage of the total of certain revenue items and subject to a minimum payment amount. As of December 31, 2015, the Company paid a total of $446,377 in royalty payments. The amount financed is recorded net of discount to be amortized during the term. For the three months ended June 30, 2016 and 2015, the Company has recorded discount amortization expense of $80,334 and $39,530, respectively. The balance as shown on the consolidated balance sheet as of June 30, 2016 was $1,907,577, net of $5,463,270 in unamortized discount.

Major Customers

Major Customers	6 Months Ended
	Jun. 30, 2016
Major Customers
Major Customers	Note 10. Major Customers For the three months ended June 30, 2016 and 2015, revenue was derived primarily from medical imaging and radiology services. There were no major customers representing more than 10% of total revenue for the three and six months ended June 30, 2016 and 2015. There were no closing balances for accounts receivable greater than 10% of total balance the six months ended June 30, 2016 and 2015.

Major Vendors

Major Vendors	6 Months Ended
	Jun. 30, 2016
Major Vendors
Major Vendors	Note 11. Major Vendors There were no major vendors for the three and six months ended June 30, 2016 and 2015.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Note 12. Related Party Transactions

Common Stock Transactions

Common Stock Transactions	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Common Stock Transactions	Note 13. Common Stock Transactions On June 7, 2016, 50,000 shares were issued for services valued at $5,000 based upon the closing price of the Company’s common stock at the grant date. On June 16, 2016, the company issued 30,000 shares of common stock of the Company as part of the bridge convertible note to a private investor. The shares were valued at $609 based upon the closing price of the Company’s common stock at the grant date. On March 22, 2016 the company issued 70,000 shares of common stock of the Company as part of the bridge convertible note to a private investor. The shares were valued at $1,421 based upon the closing price of the Company’s common stock at the grant date. On February 18, 2016 issued the company 100,000 shares of common stock of the Company as part of the bridge convertible note to a private investor. The shares were valued at $7,000 based upon the closing price of the Company’s common stock at the grant date. For the year ended December 31, 2015, 1,425,000 shares were issued for services valued at $65,465 based upon the closing price of the Company’s common stock at the grant date. For the year ended December 31, 2015, 20,000 shares were issued as part of Series C convertible note agreements. The shares were valued at $1,040 based upon the closing price of the Company’s common stock at the grant date. On December 1, 2015, the Company issued 1,840,000 warrants to holders of Series B convertible notes (see Note 8) as part of the agreements to extend the maturity dates of the notes. The warrants are exercisable at a price of $0.07 per full share at any time from December 1, 2015 to July 1, 2018. The Company has valued the warrants at a $0.0058 per issued share. On January 27, 2015, the Company granted options as considerations for services provided by the CEO of the Company. The options are to purchase up to 4,200,000 shares of common stock, with an exercise price equal to $0.15 per share. The options shall have a five (5) year term. Inputs used in Binomial Option Pricing model were as follow: stock price at grant date: $0.0517, exercise price $0.15, expected life of the option two and a half (2.5) years, volatility of 70%, and risk free rate of 0.03%. The options were recorded on the grant date at a value of $34,683. On January 27, 2015, the Company granted options as considerations for consulting services provided to the Company. The options are to purchase up to 4,200,000 shares of common stock, with an exercise price equal to $0.15 per share. The options shall have a five (5) year term. Inputs used in Binomial Option Pricing model were as follow: stock price at grant date: $0.0517, exercise price $0.15, expected life of the option two and a half (2.5) years, volatility of 70%, and risk free rate of 0.03%. The options were recorded on the grant date at a value of $34,683. On January 27, 2015, the Company granted options as considerations for services provided by the CFO of the Company. The options are to purchase up to 1,600,000 shares of common stock, with an exercise price equal to $0.15 per share. The options shall have a five (5) year term. Inputs used in Binomial Option Pricing model were as follow: stock price at grant date: $0.0517, exercise price $0.15, expected life of the option two and a half (2.5) years, volatility of 70%, and risk free rate of 0.03%. The options were recorded on the grant date at a value of $13,213.

Income Tax

Income Tax	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Tax	Note 14. Income Tax The Company follows ASC 740, Income Taxes The provisions of ASC 740 require companies to recognize in their financial statements the impact of a tax position if that position is more likely than not to be sustained upon audit, based upon the technical merits of the position. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken on a tax return. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods and disclosure. Management does not believe that the Company has any material uncertain tax positions requiring recognition or measurement in accordance with the provisions of ASC 740. Accordingly, the adoption of these provisions of ASC 740 did not have a material effect on the Company’s financial statements. The Company’s policy is to record interest and penalties on uncertain tax positions, if any, as income tax expense.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Note 16. Subsequent events Subsequent to quarter end, the Company received $350,000 from forward sale of receivables. In accordance with ASC 860, Transfers and Servicing, ("ASC 860") the sale of future accounts receivable as per the agreements does not represent a sale of accounts receivable for accounting purposes and as such, the transaction will be presented in the consolidated financial statements as a promissory note. The forward sale of receivable does not carry a security interest and the only recourse is against accounts receivable. The forward sale of receivables calls for twenty monthly payments of $20,000 towards the principal balance and interest starting August 1, 2016. The Company evaluated subsequent events through the date the consolidated financial statements were issued.

Accounting Policies (Policies)

Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Organization and Basis of Presentation	Organization and Basis of Presentation Medical Imaging Corp., (“MIC” or the “Company”), a Nevada Corporation was incorporated in 2000. In 2005, the Company developed a business plan for private healthcare opportunities in Canada with the objective of owning and operating private diagnostic imaging clinics. In 2009, the Company purchased Canadian Teleradiology Services Inc., which operates as: Custom Teleradiology Services (“CTS”). CTS provides remote reading of medical diagnostic imaging scans for rural hospitals and clinics in Canada. In early 2010, the Company modified its business plan to grow its CTS subsidiary while commencing the acquisition of existing full service imaging clinics located in the United States and exploring the development of new diagnostic imaging technology. In 2012, the Company purchased Schuylkill Open MRI Inc., which operates as: Schuylkill Medical Imaging (“SMI”), an independent diagnostic imaging facility located in Pottsville, Pennsylvania. In 2014, the company purchased Partners Imaging Center of Venice, LLC (“PIV”) located in Venice, Florida; Partners Imaging Center of Naples, LLC (“PIN”) located in Naples, Florida; and Partners Imaging Center of Charlotte, LLC (“PIC”) located in Port Charlotte, Florida. Basis of Presentation These consolidated financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in U.S. dollars. The Company’s fiscal year-end is December 31.
Principle of Consolidation	Principle of Consolidation The consolidated financial statements include the accounts of Medical Imaging, Corp., and its wholly-owned subsidiaries, CTS, SMI, PIV, PIN, and PIC. Intercompany accounts and transactions have been eliminated in the consolidated financial statements. CTS’, SMI’s, PIV’s, PIN’s, and PIC’s accumulated earnings prior to their acquisitions are not included in the consolidated balance sheet.
Use of Estimates and Assumptions	Use of Estimates and Assumptions The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities known to exist as of the date the consolidated financial statements are published, and (iii) the reported amount of net sales, expenses and costs recognized during the periods presented. Adjustments made with respect to the use of estimates often relate to improved information not previously available. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of consolidated financial statements; accordingly, actual results could differ from these estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At June 30, 2016, and December 31, 2015, cash includes cash on hand and cash in the bank.
Accounts Receivable Credit Risk	Accounts Receivable Credit Risk The allowance for doubtful accounts is maintained at a level sufficient to provide for estimated credit losses based on evaluating known and inherent risks in the receivables portfolio. Management evaluates various factors including expected losses and economic conditions to predict the estimated realization on outstanding receivables. In connection with the acquisition of the three facilities located in Venice, Port Charlotte and Naples, Florida, the Company, in October 2014, entered into professional services agreements whereby the seller of those three facilities continued to handle the billing and collection for the imaging centers (the “third party billing”). The seller must still provide a full set of verification data to the Company with respect to its account receivable processing and collections so that the Company can determine the extent to which accounts submitted by the seller in connection with the third party billing have been collected or denied. Final verification will only be able to be completed after the conclusion of the services performed pursuant to the third party billing contract, which is expected during the 2016 fiscal year.
Goodwill and Indefinite Intangible Assets	Goodwill and Indefinite - Lived Intangible Assets The Company follows the provisions of Financial Accounting Standard (“FASB”) Accounting Standards Codification (“ASC”) Topic 350, Goodwill and Other Intangible Assets
Revenue Recognition	Revenue Recognition The Company holds contracts with several hospitals and groups of health care facilities to provide Teleradiology services for a specific period of time. The Company bills for services rendered on a monthly basis. For the six months ended June 30, 2016, CTS held six contracts; four contracts that are renewable on a year-to-year basis and two contracts that are renewable in 2016 and 2018. In accordance with the requirement of Staff Accounting Bulletin (“SAB”) 104, the Company recognizes revenue when: (1) persuasive evidence of an arrangement exists (contracts); (2) delivery has occurred (monthly); (3) the seller’s price is fixed or determinable (per the customer’s contract, and services performed); and (4) collectability is reasonably assured (based upon our credit policy). Revenue is accounted for under the guidelines established by SAB 101, Revenue Recognition in Financial Statements, Revenue Recognition – Principal Agent Considerations For SMI, PIV, PIN, and PIC, revenue is recognized on the date of service and recorded on an aggregate monthly basis.
Cost of Sales	Cost of Sales Cost of sales includes fees paid to radiologists for reading services, transcription fees, equipment repairs, system license and usage costs.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets In accordance with ASC Topic 360, Property, Plant and Equipment, Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Depreciation and amortization are calculated using the straight-line method over the useful lives.
Amortization and Depreciation	Amortization and Depreciation Depreciation and amortization are calculated using the straight-line method over the following useful lives: 3 - 7 years Equipment 5 – 7 years Furniture and Fixtures 3 - 5 years Non-compete Contract 5 - 15 years Leasehold Improvements
Stock Based Compensation	Stock Based Compensation The Company follows ASC 718, Stock Compensation The Company measures all share-based payments to employees (which includes non-employee Board of Directors), including employee stock options, warrants and restricted stock, at the fair value of the award and expenses it over the requisite service period (generally the vesting period). The fair value of common stock options or warrants granted to employees is estimated at the date of grant using the binomial option pricing model (“BOPM”). The calculation also takes into account the common stock fair market value at the grant date, the exercise price, the expected life of the common stock option or warrant, the dividend yield and the risk-free interest rate. The Company from time to time may issue stock options, warrants and restricted stock to acquire goods or services from third parties. Restricted stock, options or warrants issued to other than employees or directors are recorded on the basis of their fair value. The options or warrants are valued using the BOPM on the basis of the market price of the underlying equity instrument on the “valuation date,” which for options and warrants related to contracts that have substantial disincentives to non-performance, is the date of the contract, and for all other contracts is the vesting date. Expenses related to the options and warrants are recognized on a straight-line basis over the period which services are to be received.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties other than in a forced sale or liquidation. The carrying amounts of the Company’s financial instruments, including cash, accounts receivable, prepaid expenses, accounts payable, accrued liabilities and notes and loans payable approximate fair value due to their maturities.
Fair Value Measurements	Fair Value Measurements The Company follows paragraph 825-10-50-10 of the FASB AS for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB ASC (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in U.S. GAAP, and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three 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 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 observable inputs and not corroborated by market data. The carrying amounts of the Company’s financial assets and liabilities, such as cash and accounts payable approximate their fair values because of the short maturity of these instruments. The Company does not have assets and liabilities that are carried at fair value on a recurring basis.
Foreign Currency Translation	Foreign Currency Translation The Company’s functional currency for its wholly-owned subsidiary, CTS, is the Canadian dollar, and their financial statements have been translated into U.S. dollars. The Canadian dollar based accounts of the Company’s foreign operations have been translated into United States dollars using the current rate method. Assets and liabilities of those operations are translated into U.S. dollars using exchange rates as of the balance sheet date; income and expenses are translated using the weighted average exchange rates for the reporting period. Translation adjustments are recorded as accumulated other comprehensive income (loss), a separate component of stockholders’ equity.
Income Taxes	Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes
Net Income (Loss) Per Share	Net Income (Loss) Per Share The Company follows the provisions of ASC Topic 260, Earnings per Share Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vest resulting in the issuance of common stock or conversion of notes into shares of the Company’s common stock that could increase the number of shares outstanding and lower the earnings per share of the Company’s common stock. This calculation is not done for periods in a loss position as this would be antidilutive.
Recent Accounting Updates	Recent Accounting Updates The Company does not expect the adoption of any other recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow. Updates issued but not yet adopted The Company does not expect the adoption of any other recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow.

Organization and Summary of S22

Organization and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Earnings Per Share	Three Months Ended Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Numerator: Total Comprehensive Income (Loss) $ (100,358) $ 23,864 $ (350,866) $ (342,710) Denominator: Weighted average number of shares outstanding – basic and diluted 25,578,732 24,166,481 25,511,642 24,131,342 EPS: Basic and Diluted: $ (0.004) $ 0.001 $ (0.014) $ (0.014)

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Property Plant and Equipment	June 30, 2016 December 31, 2015 Estimated useful lives Computer/Office Equipment $ 476,217 $ 454,117 3-7 years Medical Equipment 2,194,827 2,156,820 3-7 years Leasehold Improvements 852,386 843,781 5-15 years Less: Accumulated Depreciation (1,280,235) (998,224) Net Book Value $ 2,243,195 $ 2,456,494

Operating Lease Commitments (Ta

Operating Lease Commitments (Tables)	6 Months Ended
	Jun. 30, 2016
Leases, Operating [Abstract]
Schedule of Operating Lease Commitments	Year Total 2016 $ 347,017 2017 660,514 2018 567,514 2019 546,514 2020 431,998 2021 265,241 $ 2,818,799

Obligations Under Capital Lea25

Obligations Under Capital Lease (Tables)	6 Months Ended
	Jun. 30, 2016
Leases, Capital [Abstract]
Schedule of Future Minimum Lease Payments for Capital Leases	Minimum Lease Payments Total 2016 $ 123,839 2017 114,858 2018 99,733 2019 84,201 2020 3,094 Total minimum lease payments 425,725 Less amount representing interest 32,844 Present value of minimum lease payments 392,881 Less current portion of minimum lease payments 167,246 Long-term capital lease obligations at June 30, 2016 $ 225,635

Promissory Notes (Tables)

Promissory Notes (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule of Promissory Notes	Issuance Date December 31, 2015 Balance Notes Issued Payments Changes in Discount June 30, 2016 Balance Maturity Date 21-Mar-11 $ 7,752 $ - (7,752) $ - $ - 18-Mar-16 16-Jun-15 108,456 - (63,954) 16,318 60,820 14-Feb-17 16-Jun-15 58,581 - (58,581) - - 02-Mar-16 04-Aug-15 10,000 - (10,000) - - 05-Jan-16 22-Sep-15 125,000 - (125,000) - - 29-Feb-16 22-Dec-15 100,000 - (100,000) - - 29-Feb-16 16-Feb-16 - 100,000 - (4,667) 95,333 23-Feb-17 22-Feb-16 - 500,000 - - 500,000 31-Aug-17 22-Mar-16 - 70,000 - (1,556) 68,444 22-Mar-17 Total $ 409,789 $ 670,000 $ (365,287) $ 10,095 $ 724,597

Convertible Notes (Tables)

Convertible Notes (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule of Convertible Debt	Series B Notes December 31, 2015 Balance Unamortized Discount June 30, 2016 Balance Maturity Date 03-Dec-12 $ 25,000 $ (96) $ 24,904 01-Jul-17 03-Dec-12 125,000 (482) 124,518 01-Jul-17 03-Dec-12 50,000 (193) 49,807 01-Jul-17 03-Dec-12 25,000 (96) 24,904 01-Jul-17 03-Dec-12 25,000 (96) 24,904 01-Jul-17 03-Dec-12 25,000 (96) 24,904 01-Jul-17 03-Dec-12 1,500,000 (5,780) 1,492,220 01-Jul-17 03-Dec-12 50,000 (194)) 49,806 01-Jul-17 03-Dec-12 15,000 (58) 14,942 01-Jul-17 03-Dec-12 100,000 - 100,000 31-Dec-16 27-Mar-13 25,000 (58) 24,942 01-Sep-17 27-Mar-13 25,000 (58) 24,942 01-Sep-17 27-Mar-13 25,000 (135) 24,865 01-Sep-19 Total $ 2,015,000 $ (7,342) $ 2,007,658 Series C Notes Issuance Date Balance at December 31, 2015 Unamortized Discount Balance at June 30, 2016 Balance at December 31, 2015 22-May-14 $ 50,000 $ (917) $ 49,083 31-May-17 22-May-14 22,500 (413) 22,088 31-May-17 22-May-14 22,500 (413) 22,088 31-May-17 25-Aug-14 50,000 (1,434) 48,566 31-Oct-17 25-Aug-14 25,000 (717) 24,283 31-Oct-17 31-Oct-14 50,000 (1,167) 48,833 31-Oct-17 17-Feb-15 20,000 (578) 19,422 17-Feb-18 Total $ 240,000 $ (5,636) $ 234,364 Individually Issued Issuance Date December 31, 2015 Balance Payments Unamortized Discount June 30, 2016 Balance Maturity Date 26-Mar-14 $ 200,000 $ (30,000) $ (6,375) $ 163,625 27-Feb-17
Schedule of Maturities of Long-term Debt	Series B Notes Principal Payments 2016 $ 100,000 2017 1,890,000 2018 - 2019 25,000 Total $ 2,015,000 Series C Notes Principal Payments 2016 $ - 2017 220,000 2018 20,000 Total $ 240,000 Individually Issued Principal Payments 2016 $ 30,000 2017 140,000 Total $ 170,000

Organization and Summary of S28

Organization and Summary of Significant Accounting Policies - Basic and Diluted Earners Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Numerator
Total comprehensive loss	$ (100,358)	$ 23,864	$ (350,866)	$ (342,710)
Denominator
Weighted average number of shares outstanding - basic and diluted	25,578,732	24,166,481	25,511,642	24,131,342
Earnings per Share
Basic earnings per share from total comprehensive income (loss)	$ (0.004)	$ 0.001	$ (0.014)	$ (0.014)
Diluted earnings per share from total comprehensive income (loss)	$ (0.004)	$ .001	$ (0.014)	$ (0.014)

Organization and Summary of S29

Organization and Summary of Significant Accounting Policies - PPE Amortization and Depreciation (Details Narrative)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Equipment
Property, Plant and Equipment [Line Items]
Property Plant and Equipment Depreciation Methods	Straight-line method
Property Plant and Equipment Useful Life	3 - 7 years
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property Plant and Equipment Depreciation Methods	Straight-line method
Property Plant and Equipment Useful Life	5 - 7 years
Non-compete Contract
Property, Plant and Equipment [Line Items]
Property Plant and Equipment Depreciation Methods	Straight-line method
Property Plant and Equipment Useful Life	3 - 5 years
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property Plant and Equipment Depreciation Methods	Straight-line method
Property Plant and Equipment Useful Life	5-15 years	5-15 years

Organization and Summary of S30

Organization and Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Accounts Receivable, Net, Current
Allowance for doubtful accounts	$ 56,475		$ 56,475		$ 56,475
Allowance for Doubtful Accounts - Third Party Billings (Florida Operations)	(275,000)		(275,000)		$ (275,000)
Change in allowance from direct billings			0	$ 6,379
Recognized Share-Based Compensation Expense
Stock-based compensation expense, employees	5,000		5,000
Foreign Currency Translation
Foreign currency loss	(927)	$ (19,755)	(39,251)	(17,519)
Other comprehensive gain	$ 27,715	$ 37,654	$ 68,179	$ 57,051

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,523,430	$ 3,454,718
Property and equipment, accumulated depreciation	(1,280,235)	(998,224)
Property and equipment, net	2,243,195	2,456,494
Computer/Office Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 476,489	$ 454,117
Property and equipment, estimated useful lives	3-7 years	3-7 years
Medical Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,194,827	$ 2,156,820
Property and equipment, estimated useful lives	3-7 years	3-7 years
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 852,386	$ 843,781
Property and equipment, estimated useful lives	5-15 years	5-15 years

Property and Equipment (Detai32

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 140,166	$ 137,014	$ 277,748	$ 272,738

Goodwill (Details Narrative)

Goodwill (Details Narrative) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Balance of goodwill	$ 1,977,670	$ 1,977,670

Operating Lease Commitments (De

Operating Lease Commitments (Details)	Jun. 30, 2016USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity
Year 2,016	$ 347,017
Year 2,017	660,514
Year 2,018	567,514
Year 2,019	546,514
Year 2,020	431,998
Year 2,021	265,241
Operating Leases, Future Minimum Payments Due	$ 2,818,799

Operating Lease Commitments (35

Operating Lease Commitments (Details Narrative)	6 Months Ended
	Jun. 30, 2016USD ($)
CTS - Office Space
Operating lease, minimum payments	$ 6,000
Leasing arrangements	CTS has a lease commitment for its office space of approximately $2,450 minimum rental, and approximately $3,550 in utilities, realty taxes, and operating costs. The Lease renewed in April 2013 for a period of five years and will expire in March 2018.
Loss on sublease	$ 8,000
CTS - Office Space - Toronto, Canada
Operating lease, minimum payments	$ 6,000
Leasing arrangements	CTS has a lease commitment for its new office space in Toronto, Canada of approximately $2,600 minimum rental, and approximately $3,400 in utilities, realty taxes, and operating costs. The lease will expire April 30, 2021.
SMI - Office Space - Pottsville, Pennsylvania
Operating lease, minimum payments	$ 7,111
Leasing arrangements	SMI entered into a lease commitment for its office space in Pottsville, Pennsylvania. The lease will expire on July 30, 2021. Monthly rental amounts are $5,437 per month plus approximately $1,674 in utilities, realty taxes, and operating costs.
SMI - X-Ray Equipment
Operating lease, minimum payments	$ 3,000
Leasing arrangements	Lease for x-ray equipment space. The lease term is seven years from commitment date of October 2014.
SMI - X-Ray Equipment #2
Operating lease, minimum payments	$ 2,000
Leasing arrangements	Lease for use of x-ray equipment and space. The lease term is two years from commitment date of January 2016.
SMI - Office Space - Dallas, Texas
Operating lease, minimum payments	$ 880
Leasing arrangements	SMI has a lease for office space that will expire in August 31, 2016.
Lease Arrangement | PIC
Operating lease, minimum payments	$ 5,512
Leasing arrangements	PIC has a lease for office space in Port Charlotte, Florida. The lease will expire June 20, 2021.
Lease Arrangement | PIN
Operating lease, minimum payments	$ 9,543
Leasing arrangements	PIN has a lease for office space in Naples, Florida. The lease will expire January 1, 2020.
Lease Arrangement | PIV
Operating lease, minimum payments	$ 15,377
Leasing arrangements	PIV has a lease for office space in Venice, Florida. The lease will expire September 30, 2021.

Obligations Under Capital Lea36

Obligations Under Capital Lease (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Capital Leases Future Minimum Payments
Minimum future lease payments, 2016	$ 123,839
Minimum future lease payments, 2017	114,858
Minimum future lease payments, 2018	99,733
Minimum future lease payments, 2019	84,201
Minimum future lease payments, 2020	3,094
Total minimum lease payments	425,725
Less amount representing interest	32,844
Present value of minimum lease payments	392,881
Less current portion of minimum lease payments	(167,246)	$ (205,740)
Obligations Under Capital Lease, long term portion	$ 225,635	$ 267,146

Obligations Under Capital Lea37

Obligations Under Capital Lease (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Dec. 31, 2015
SMI - MRI
Capital leases, equipment, gross	$ 555,000		$ 555,000
Capital leases, equipment, net	157,333		157,333	$ 218,833
Capital leases, depreciation expense	27,750	$ 27,750
Capital leases, accumulated amortization and depreciation	397,667		$ 397,667	342,167
Capital leases, leasing arrangements			On December 10, 2012, the Company entered into a lease agreement with one of the sellers of SMI to lease the two MRI machines. Under the terms of the lease, SMI is to make monthly payments of $11,013, plus applicable sales tax, over a period of 48 months. In addition, SMI agreed to make a one-time lease payment of $125,000, which was paid by March 30, 2013. The Company has guaranteed all of SMI’s obligations under the lease. At the end of the lease, SMI will have the option to purchase the MRI machines for a total purchase price of $1.00.
SMI - X-Ray Lease
Capital leases, equipment, gross	78,250		$ 78,250
Capital leases, equipment, net	46,950		46,950	54,775
Capital leases, depreciation expense		3,913	3,913
Capital leases, accumulated amortization and depreciation	31,300		$ 31,300	23,475
Capital leases, leasing arrangements			On July 03, 2014 Company has entered into a capital lease agreement to lease the x-ray machine that was delivered and installed in July 2014. Under the terms of the lease, the Company’s subsidiary, SMI, is to make monthly payments of $1,495, plus applicable sales tax, over a period of 60 months. At the end of the lease, SMI will have the option to purchase the MRI machines for a total purchase price of $1.00.
SMI - PACS/RIS Lease
Capital leases, equipment, gross	162,333		$ 162,333
Capital leases, equipment, net	108,222		108,222	124,455
Capital leases, depreciation expense	8,355	8,355
Capital leases, accumulated amortization and depreciation	54,111		$ 54,111	37,878
Capital leases, leasing arrangements			On August 19, 2014 Company has entered into a capital lease agreement to lease PACS/RIS system that was delivered and installed in December 2014. Under the terms of the lease, the Company’s subsidiary, SMI, is to make monthly payments of $3,115, plus applicable sales tax, over a period of 60 months. At the end of the lease, SMI will have the option to purchase the system for a total purchase price of $1.00.
SMI Copier Lease
Capital leases, equipment, gross	3,498		$ 3,498
Capital leases, equipment, net	2,818		2,818
Capital leases, depreciation expense	486	0
Capital leases, accumulated amortization and depreciation	680		$ 680
Capital leases, leasing arrangements			On February 1, 2016, the Company entered into a capital lease agreement to lease computers that were delivered and installed in February 2016. Under the terms of the lease, the Company is to make monthly payments of $135, plus applicable sales tax, over a period of 31 months. At the end of the lease, the company will have the option to purchase the computers for a total purchase price of $1.00.
PV, PN, PC PACS/RIS Lease
Capital leases, equipment, gross	167,107		$ 167,107
Capital leases, equipment, net	115,582		115,582	132,292
Capital leases, depreciation expense	8,355	8,355
Capital leases, accumulated amortization and depreciation	51,525		$ 51,525	34,815
Capital leases, leasing arrangements			On November 26, 2014 Company has entered into a capital lease agreement to lease PACS/RIS system that was delivered and installed in December 2014. Under the terms of the lease, the Company’s subsidiary, PIV, is to make monthly payments of $3,094, plus applicable sales tax, over a period of 60 months. At the end of the lease, PIV will have the option to purchase the system for a total purchase price of $1.00.
PV, PN, PC Computers Lease
Capital leases, equipment, gross	25,108		$ 25,108
Capital leases, equipment, net	12,205		12,205	16,390
Capital leases, depreciation expense	2,092	2,092
Capital leases, accumulated amortization and depreciation	12,903		$ 12,903	8,718
Capital leases, leasing arrangements			On December 10, 2014 Company has entered into a capital lease agreement to lease computers that were delivered and installed in December 2014. Under the terms of the lease, the Company is to make monthly payments of $813, plus applicable sales tax, over a period of 36 months. At the end of the lease, the company will have the option to purchase the computers for a total purchase price of $1.00.
PV, PN, PC Digital Printers Lease
Capital leases, equipment, gross	13,120		$ 13,120
Capital leases, equipment, net	11,844		11,844
Capital leases, depreciation expense	1,093	0
Capital leases, accumulated amortization and depreciation	1,276		$ 1,276
Capital leases, leasing arrangements			On March 15, 2016, the Company entered into a capital lease agreement to lease digital printers that were delivered and installed in March 2016. Under the terms of the lease, the Company is to make monthly payments of $423, plus applicable sales tax, over a period of 36 months. At the end of the lease, the company will have the option to purchase the computers for a total purchase price of $1.00.
CTS Computers Lease
Capital leases, equipment, gross	19,560		$ 19,560
Capital leases, equipment, net	11,953		11,953	12,767
Capital leases, depreciation expense	1,592	$ 1,592
Capital leases, accumulated amortization and depreciation	$ 7,607		$ 7,607	$ 6,230
Capital leases, leasing arrangements			On January 21, 2015 the company has entered into a capital lease agreement to lease computers that were installed on the same date of acceptance. Under the terms of the lease, the company is to make monthly payments of $529, plus applicable sales tax, over a period of 36 months. At the end of the lease, the company will have the option to purchase the computers for a total purchase price of $1.00.

Promissory Notes (Details)

Promissory Notes (Details)	6 Months Ended
	Jun. 30, 2016USD ($)
Short-term Debt [Line Items]
Promissory notes, beginning of period	$ 409,789
Promissory notes, issued	670,000
Promissory notes, payments	(365,287)
Unamortized discount	10,092
Promissory notes, end of period	$ 724,597
Promissory Note #1
Short-term Debt [Line Items]
Promissory note, issuance date	Mar. 21, 2011
Promissory notes, beginning of period	$ 7,752
Promissory notes, issued	0
Promissory notes, payments	(7,752)
Unamortized discount	0
Promissory notes, end of period	$ 0
Promissory note, maturity date	Mar. 18, 2016
Promissory Note #2
Short-term Debt [Line Items]
Promissory note, issuance date	Jun. 16, 2015
Promissory notes, beginning of period	$ 108,456
Promissory notes, issued	0
Promissory notes, payments	(63,954)
Unamortized discount	16,318
Promissory notes, end of period	$ 60,820
Promissory note, maturity date	Feb. 14, 2017
Promissory Note #3
Short-term Debt [Line Items]
Promissory note, issuance date	Jun. 16, 2015
Promissory notes, beginning of period	$ 58,581
Promissory notes, issued	0
Promissory notes, payments	(58,581)
Unamortized discount	0
Promissory notes, end of period	$ 0
Promissory note, maturity date	Mar. 2, 2016
Promissory Note #4
Short-term Debt [Line Items]
Promissory note, issuance date	Aug. 4, 2015
Promissory notes, beginning of period	$ 10,000
Promissory notes, issued	0
Promissory notes, payments	(10,000)
Unamortized discount	0
Promissory notes, end of period	$ 0
Promissory note, maturity date	Jan. 5, 2016
Promissory Note #5
Short-term Debt [Line Items]
Promissory note, issuance date	Sep. 22, 2015
Promissory notes, beginning of period	$ 125,000
Promissory notes, issued	0
Promissory notes, payments	(125,000)
Unamortized discount	0
Promissory notes, end of period	$ 0
Promissory note, maturity date	Feb. 29, 2016
Promissory Note #6
Short-term Debt [Line Items]
Promissory note, issuance date	Dec. 22, 2015
Promissory notes, beginning of period	$ 100,000
Promissory notes, issued	0
Promissory notes, payments	(100,000)
Unamortized discount	0
Promissory notes, end of period	$ 0
Promissory note, maturity date	Feb. 29, 2016
Promissory Note #7
Short-term Debt [Line Items]
Promissory note, issuance date	Feb. 16, 2016
Promissory notes, beginning of period	$ 0
Promissory notes, issued	100,000
Promissory notes, payments	0
Unamortized discount	(4,667)
Promissory notes, end of period	$ 95,333
Promissory note, maturity date	Feb. 23, 2017
Promissory Note #8
Short-term Debt [Line Items]
Promissory note, issuance date	Feb. 22, 2016
Promissory notes, beginning of period	$ 0
Promissory notes, issued	500,000
Promissory notes, payments	0
Unamortized discount	0
Promissory notes, end of period	$ 500,000
Promissory note, maturity date	Aug. 31, 2017
Promissory Note #9
Short-term Debt [Line Items]
Promissory note, issuance date	Mar. 22, 2016
Promissory notes, beginning of period	$ 0
Promissory notes, issued	70,000
Promissory notes, payments	0
Unamortized discount	(1,556)
Promissory notes, end of period	$ 68,444
Promissory note, maturity date	Mar. 22, 2017

Promissory Notes (Details Narra

Promissory Notes (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Promissory note, additional proceeds			$ (670,000)
Amortization of debt discount	$ 96,458	$ 177,607	257,792	$ 289,898
Promissory Notes
Promissory note, additional proceeds			$ 500,000		$ 913,324
Promissory note, interest rate	25.00%		25.00%
Short term loan payable, repayment terms					The loans totaling $559,000 call for weekly payments of $13,000 towards the principal balance and interest. The loans were collateralized by the Accounts Receivable of PIV, PIN, and PIC. The notes were paid off early on February 29, 2016. The loans totaling of $207,100 call for a daily payment of $509, towards the principal balance and interest. The final payment is due February 14, 2017. The loans are collateralized by the Accounts Receivable of: SMI, PIV, PIN, and PIC. The loan totaling $147,224 call for a daily payment of $553, towards the principal balance and interest. The loans were collateralized by the Accounts Receivable of: CTS SMI, PIV, PIN, and PIC. The final payment had an original maturity date of July 7, 2016. The note was paid off early on March 2, 2016.
Bridge Convertible Promissory Notes
Bridge loan	$ 170,000		$ 170,000
Promissory note, interest rate	12.00%		12.00%
Promissory note, maturity date			The bridge note for $100,000 is due on February 23, 2017. The bridge note for $70,000 is due on March 22, 2017.
Shares issued, inducement			200,000
Additional paid in capital and discount			$ 9,030
Amortization of debt discount	$ 2,105	$ 0

Convertible Notes - Details of

Convertible Notes - Details of Series B Notes (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Debt Instrument [Line Items]
Convertible note, unamortized debt discount	$ (257,792)	$ (289,898)
Convertible Notes | Series B - Note 8
Debt Instrument [Line Items]
Convertible note, issuance date	Dec. 3, 2012
Convertible note, beginning balance	$ 50,000
Convertible note, unamortized debt discount	(194)
Convertible note, ending balance	$ 49,806
Convertible note, maturity date	Jul. 1, 2017
Convertible Notes | Series B - Note 7
Debt Instrument [Line Items]
Convertible note, issuance date	Dec. 3, 2012
Convertible note, beginning balance	$ 1,500,000
Convertible note, unamortized debt discount	(5,780)
Convertible note, ending balance	$ 1,492,220
Convertible note, maturity date	Jul. 1, 2017
Convertible Notes | Series B - Note 6
Debt Instrument [Line Items]
Convertible note, issuance date	Dec. 3, 2012
Convertible note, beginning balance	$ 25,000
Convertible note, unamortized debt discount	(96)
Convertible note, ending balance	$ 24,904
Convertible note, maturity date	Jul. 1, 2017
Convertible Notes | Series B - Note 5
Debt Instrument [Line Items]
Convertible note, issuance date	Dec. 3, 2012
Convertible note, beginning balance	$ 25,000
Convertible note, unamortized debt discount	(96)
Convertible note, ending balance	$ 24,904
Convertible note, maturity date	Jul. 1, 2017
Convertible Notes | Series B - Note 4
Debt Instrument [Line Items]
Convertible note, issuance date	Dec. 3, 2012
Convertible note, beginning balance	$ 25,000
Convertible note, unamortized debt discount	(96)
Convertible note, ending balance	$ 24,904
Convertible note, maturity date	Jul. 1, 2017
Convertible Notes | Series B - Note 3
Debt Instrument [Line Items]
Convertible note, issuance date	Dec. 3, 2012
Convertible note, beginning balance	$ 50,000
Convertible note, unamortized debt discount	(193)
Convertible note, ending balance	$ 49,807
Convertible note, maturity date	Jul. 1, 2017
Convertible Notes | Series B - Note 2
Debt Instrument [Line Items]
Convertible note, issuance date	Dec. 3, 2012
Convertible note, beginning balance	$ 125,000
Convertible note, unamortized debt discount	(482)
Convertible note, ending balance	$ 124,518
Convertible note, maturity date	Jul. 1, 2017
Convertible Notes | Series B - Note 1
Debt Instrument [Line Items]
Convertible note, issuance date	Dec. 3, 2012
Convertible note, beginning balance	$ 25,000
Convertible note, unamortized debt discount	(96)
Convertible note, ending balance	$ 24,904
Convertible note, maturity date	Jul. 1, 2017

Convertible Notes - Details o41

Convertible Notes - Details of Series B Notes Continued (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Debt Instrument [Line Items]
Convertible note, unamortized debt discount	$ (257,792)	$ (289,898)
Convertible Notes | Series B - Note 13
Debt Instrument [Line Items]
Convertible note, issuance date	Mar. 27, 2013
Convertible note, beginning balance	$ 25,000
Convertible note, unamortized debt discount	(135)
Convertible note, ending balance	$ 24,865
Convertible note, maturity date	Sep. 1, 2019
Convertible Notes | Series B - Note 12
Debt Instrument [Line Items]
Convertible note, issuance date	Mar. 27, 2013
Convertible note, beginning balance	$ 25,000
Convertible note, unamortized debt discount	(58)
Convertible note, ending balance	$ 24,942
Convertible note, maturity date	Sep. 1, 2017
Convertible Notes | Series B - Note 11
Debt Instrument [Line Items]
Convertible note, issuance date	Mar. 27, 2013
Convertible note, beginning balance	$ 25,000
Convertible note, unamortized debt discount	(58)
Convertible note, ending balance	$ 24,942
Convertible note, maturity date	Sep. 1, 2017
Convertible Notes | Series B - Note 10
Debt Instrument [Line Items]
Convertible note, issuance date	Dec. 3, 2012
Convertible note, beginning balance	$ 100,000
Convertible note, unamortized debt discount	0
Convertible note, ending balance	$ 100,000
Convertible note, maturity date	Dec. 31, 2016
Convertible Notes | Series B - Note 9
Debt Instrument [Line Items]
Convertible note, issuance date	Dec. 3, 2012
Convertible note, beginning balance	$ 15,000
Convertible note, unamortized debt discount	(58)
Convertible note, ending balance	$ 14,942
Convertible note, maturity date	Jul. 1, 2017

Convertible Notes - Details o42

Convertible Notes - Details of Series C and Individually Issued Notes (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Debt Instrument [Line Items]
Convertible note, payments	$ 30,000	$ 30,000
Convertible note, unamortized debt discount	$ (257,792)	$ (289,898)
Convertible Notes | Individually Issued
Debt Instrument [Line Items]
Convertible note, issuance date	Mar. 26, 2014
Convertible note, beginning balance	$ 200,000
Convertible note, payments	(30,000)
Convertible note, unamortized debt discount	(6,375)
Convertible note, ending balance	$ 163,625
Convertible note, maturity date	Feb. 27, 2017
Convertible Notes | Series C - Note 7
Debt Instrument [Line Items]
Convertible note, issuance date	Feb. 17, 2015
Convertible note, beginning balance	$ 20,000
Convertible note, unamortized debt discount	(578)
Convertible note, ending balance	$ 19,422
Convertible note, maturity date	Feb. 17, 2018
Convertible Notes | Series C - Note 6
Debt Instrument [Line Items]
Convertible note, issuance date	Oct. 31, 2014
Convertible note, beginning balance	$ 50,000
Convertible note, unamortized debt discount	(1,167)
Convertible note, ending balance	$ 48,833
Convertible note, maturity date	Oct. 31, 2017
Convertible Notes | Series C - Note 5
Debt Instrument [Line Items]
Convertible note, issuance date	Aug. 25, 2014
Convertible note, beginning balance	$ 25,000
Convertible note, unamortized debt discount	(717)
Convertible note, ending balance	$ 24,283
Convertible note, maturity date	Oct. 31, 2017
Convertible Notes | Series C - Note 4
Debt Instrument [Line Items]
Convertible note, issuance date	Aug. 25, 2014
Convertible note, beginning balance	$ 50,000
Convertible note, unamortized debt discount	(1,434)
Convertible note, ending balance	$ 48,566
Convertible note, maturity date	Oct. 31, 2017
Convertible Notes | Series C - Note 3
Debt Instrument [Line Items]
Convertible note, issuance date	May 22, 2014
Convertible note, beginning balance	$ 22,500
Convertible note, unamortized debt discount	(413)
Convertible note, ending balance	$ 22,088
Convertible note, maturity date	May 31, 2017
Convertible Notes | Series C - Note 2
Debt Instrument [Line Items]
Convertible note, issuance date	May 22, 2014
Convertible note, beginning balance	$ 22,500
Convertible note, unamortized debt discount	(413)
Convertible note, ending balance	$ 22,088
Convertible note, maturity date	May 31, 2017
Convertible Notes | Series C - Note 1
Debt Instrument [Line Items]
Convertible note, issuance date	May 22, 2014
Convertible note, beginning balance	$ 50,000
Convertible note, unamortized debt discount	(917)
Convertible note, ending balance	$ 49,083
Convertible note, maturity date	May 31, 2017

Convertible Notes - Long-Term D

Convertible Notes - Long-Term Debt Maturities (Details) - Convertible Notes	Jun. 30, 2016USD ($)
Individually Issued
Debt Instrument [Line Items]
Principal payments, 2016	$ 30,000
Principal payments, 2017	140,000
Total principal payments	170,000
Series C Notes
Debt Instrument [Line Items]
Principal payments, 2016	0
Principal payments, 2017	220,000
Principal payments, 2018	20,000
Total principal payments	240,000
Series B Notes
Debt Instrument [Line Items]
Principal payments, 2016	100,000
Principal payments, 2017	1,890,000
Principal payments, 2019	25,000
Total principal payments	$ 2,015,000

Convertible Notes (Details Narr

Convertible Notes (Details Narrative) - USD ($)	3 Months Ended			6 Months Ended			12 Months Ended
	Jun. 30, 2016		Jun. 30, 2015	Jun. 30, 2016		Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Amortization of debt discount	$ 96,458		$ 177,607	$ 257,792		$ 289,898
Convertible Notes | Individually Issued
Convertible notes, sold								$ 300,000
Convertible notes, payment terms								The note pays interest at a rate of 12% per annum, payable to the holder at 1% per month. The Company will also be making monthly payments of $5,000 towards the principal balance beginning June 1, 2014 for 3 years until the note due date of February 27, 2017.
Convertible notes, price per share for conversion of shares of common stock								$ 0.15
Convertible notes, interest rate								12.00%
Note holder additions								The non-affiliate will receive 300,000 shares as part of the note agreement.
Additional paid in capital and discount	25,500
Amortization of debt discount	2,125		2,125
Convertible note, accrued interest	5,835		7,180
Private placement, maturity date								Feb. 27, 2017
Common stock issued								300,000
Convertible Notes | Series C Notes
Convertible notes, sold							$ 20,000	$ 125,000
Convertible notes, payment terms								Series C Notes bear interest at a rate of 12% per annum, payable to the holder at 1% per month, with principal amount due May 31, 2017.
Convertible notes, price per share for conversion of shares of common stock								$ 0.15
Convertible notes, interest rate								12.00%
Additional paid in capital and discount	12,695
Amortization of debt discount	1,277		1,277
Convertible note, accrued interest	7,200
Private placement, 12% convertible notes, principal amount								$ 95,000
Private placement, maturity date								May 31, 2017
Common stock issued							240,000
Convertible Notes | Series B Notes
Convertible notes, payment terms									Series B Notes pay interest at a rate of 12% per annum, payable to the holder at 1% per month.
Convertible notes, price per share for conversion of shares of common stock									$ 0.15
Convertible notes, interest rate									12.00%
Additional paid in capital and discount				244,275
Amortization of debt discount	$ 1,806		$ 20,356
Convertible note, accrued interest				60,450
Interest paid				$ 45,450
Private placement, 12% convertible notes, principal amount									$ 2,230,000
Private placement, maturity date, description				The holders of $1,840,000 Series B Notes have agreed to extend the maturity date of the debt outstanding to July 1, 2017 from its original maturity date of December 31, 2015. The holders of $50,000 Series B Notes have agreed to extend the maturity date of the debt outstanding to September 1, 2017. The holder of $25,000 Series B Notes has agreed to extend the maturity date of the debt outstanding to September 1, 2019.
Common stock issued									5,315,000
Warrants issued, shares	75,000	[1],[2]		75,000	[1],[2]		1,840,000
Warrants issued, value per share	$ 0.07			$ 0.07			$ 0.07
Exercise price							$ 0.0058
Unamortized debt discount	$ 285			$ 285			$ 10,672
[1]	The 25,000 warrants issued are valued at $0.00583 per issued share.
[2]	The 50,000 warrants issued are valued at $0.00278 per issued share.

Royalty Financing (Details Narr

Royalty Financing (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Royalty Financing
Royalty purchase agreement, amount					$ 2,000,000
Royalty purchase agreement					On October 31, 2014, the Company entered into a royalty purchase agreement with Grenville Strategic Royalty Corp. for the amount of $2,000,000. The agreement calls for a monthly payment to the seller based on a percentage of the total of certain revenue items and subject to a minimum payment amount.
Royalty payments			$ 182,933	$ 205,172	$ 446,377
Discounted amortization expense	$ 80,334	$ 39,530
Royalty purchase agreement, balance	1,907,577		1,907,577
Royalty financing, unamortized discount	$ 5,463,270		$ 5,463,270

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Common stock issued for services	50,000
Common stock issued for services, value	$ 5,000
Major Shareholder
Consulting services, description		January 2015, the Company entered into an agreement with a company that is owned and controlled by a major shareholder, to provide consulting services. Fees payable for performance of the consulting services are $10,000 per month.
Stock options, granted		4,200,000
Stock options, exercise price		$ 0.15
Stock options, contractual term		5 years
Common stock issued for services		450,000
Common stock issued for services, value		$ 20,250
Balance for services rendered	$ 62,415

Common Stock Transactions (Deta

Common Stock Transactions (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2016		Dec. 31, 2015
Shares issued for services, shares	50,000
Shares issued for services, value	$ 5,000
Bridge Convertible Promissory Notes
Value of stock options at grant date	8,421
Bridge loan	$ 170,000
Shares issued, inducement	200,000
Shares issued, inducement, value	$ 9,030
Convertible Notes | Series C Notes
Shares issued, convertible notes, shares			20,000
Shares issued, convertible notes, value			$ 1,040
Convertible Notes | Series B Notes
Warrants issued, shares	75,000	[1],[2]	1,840,000
Warrants issued, value per share	$ 0.07		$ 0.07
Exercise price			$ 0.0058
Common Stock
Shares issued for services, shares			1,425,000
Shares issued for services, value			$ 65,465
Major Shareholder
Stock options, granted			4,200,000
Stock options, exercise price			$ 0.15
Stock options, contractual term			5 years
Stock price at grant date	$ 0.0517
Expected volatility rate			70.00%
Risk free interest rate			0.03%
Value of stock options at grant date	$ 34,683
Shares issued for services, shares			450,000
Shares issued for services, value			$ 20,250
Chief Executive Officer
Stock options, granted			4,200,000
Stock options, exercise price			$ 0.15
Stock options, contractual term			5 years
Stock price at grant date			$ 0.0517
Expected volatility rate			70.00%
Risk free interest rate			0.03%
Value of stock options at grant date			$ 34,683
Chief Financial Officer
Stock options, granted			1,600,000
Stock options, exercise price			$ 0.15
Stock options, contractual term			5 years
Stock price at grant date			$ 0.0517
Expected volatility rate			70.00%
Risk free interest rate			0.03%
Value of stock options at grant date			$ 13,213
[1]	The 25,000 warrants issued are valued at $0.00583 per issued share.
[2]	The 50,000 warrants issued are valued at $0.00278 per issued share.

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Going Concern Details Narrative
Total Comprehensive Income (Loss)	$ (100,358)	$ 23,864	$ (350,866)	$ (342,710)
Working capital deficit	$ 3,447,840		$ 3,447,840

Subsequent Eventes (Details Nar

Subsequent Eventes (Details Narrative) - USD ($)	1 Months Ended	6 Months Ended	12 Months Ended
	Jul. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Subsequent Event [Line Items]
Promissory note, additional proceeds		$ (670,000)
Promissory Notes
Subsequent Event [Line Items]
Promissory note, additional proceeds		$ 500,000	$ 913,324
Short term loan payable, repayment terms			The loans totaling $559,000 call for weekly payments of $13,000 towards the principal balance and interest. The loans were collateralized by the Accounts Receivable of PIV, PIN, and PIC. The notes were paid off early on February 29, 2016. The loans totaling of $207,100 call for a daily payment of $509, towards the principal balance and interest. The final payment is due February 14, 2017. The loans are collateralized by the Accounts Receivable of: SMI, PIV, PIN, and PIC. The loan totaling $147,224 call for a daily payment of $553, towards the principal balance and interest. The loans were collateralized by the Accounts Receivable of: CTS SMI, PIV, PIN, and PIC. The final payment had an original maturity date of July 7, 2016. The note was paid off early on March 2, 2016.
Subsequent Event | Promissory Notes
Subsequent Event [Line Items]
Promissory note, additional proceeds	$ 350,000
Short term loan payable, repayment terms	The loans call for twenty monthly payments of $20,000 towards the principal balance and interest starting August 1, 2016.