Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 11, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | First Choice Healthcare Solutions, Inc. | |
Entity Central Index Key | 1,416,876 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 26,828,538 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash (amounts related to VIE of $921,972 and $708,858) | $ 3,242,006 | $ 4,593,638 |
Accounts receivable, net (amounts related to VIE of $6,082,888 and $6,010,961) | 10,855,735 | 9,536,830 |
Employee loans (amounts related to VIE of $491,550 and $491,850) | 1,031,044 | 820,341 |
Prepaid and other current assets (amounts related to VIE of $453,420 and $329,427) | 655,687 | 422,512 |
Total current assets | 15,784,472 | 15,373,321 |
Property, plant and equipment, net of accumulated depreciation of $1,367,489 and $1,165,219 (amounts related to VIE of $653,892 and $693,629) | 2,540,364 | 2,544,816 |
Other assets (amounts related to VIE of $921,470) | 4,047,085 | 4,227,957 |
Total assets | 22,371,921 | 22,146,094 |
Current liabilities: | ||
Accounts payable and accrued expenses (amounts related to VIE of $1,622,119 and $1,366,143) | 2,221,316 | 2,083,231 |
Accounts payable, related party (amount related to VIE of $251,588) | 251,588 | 251,588 |
AMT Tax Payable | 181,029 | 181,029 |
Line of credit, short term (amount related to VIE of $439,524) | 1,539,524 | 1,539,524 |
Notes payable, current portion | 277,855 | 519,452 |
Unearned revenue | 44,037 | 26,936 |
Deferred rent, short term portion (amount related to VIE of $237,923) | 237,923 | 237,923 |
Total current liabilities | 4,753,272 | 4,839,683 |
Long term liabilities | ||
Deposits held | 41,930 | 41,930 |
Notes payable, long term portion | 15,695 | 14,531 |
Deferred rent, long term portion (amount related to VIE of $2,266,195 and $2,214,909) | 2,397,337 | 2,293,594 |
Total long term liabilities | 2,454,962 | 2,350,055 |
Total liabilities | 7,208,234 | 7,189,738 |
Equity: | ||
Preferred stock, $0.01 par value; 1,000,000 shares authorized, Nil issued and outstanding | ||
Common stock, $0.001 par value; 100,000,000 shares authorized, 26,971,038 and 24,631,327 shares issued; 26,938,650 and 24,631,327 shares outstanding as of June 30, 2017 and December 31, 2016, respectively | 26,971 | 24,631 |
Additional paid in capital | 24,343,291 | 24,020,610 |
Treasury stock, 32,388 and 0 common shares, at cost, respectively | (49,954) | |
Accumulated deficit | (10,029,590) | (10,100,534) |
Total stockholders' equity attributable to First Choice Healthcare Solutions, Inc. | 14,290,718 | 13,944,707 |
Non-controlling interest (note 10) | 872,969 | 1,011,649 |
Total equity | 15,163,687 | 14,956,356 |
Total liabilities and equity | $ 22,371,921 | $ 22,146,094 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Prepaid and other current assets | $ 655,687 | $ 422,512 |
Property, plant and equipment, net of accumulated depreciation | 1,367,489 | 1,165,219 |
Other assets | 4,047,085 | 4,227,957 |
Accounts payable and accrued expenses | 2,221,316 | 2,083,231 |
Accounts payable, related party | 251,588 | 251,588 |
Line of credit, short term | 1,539,524 | 1,539,524 |
Deferred rent, short term portion | 237,923 | 237,923 |
Deferred rent, long term portion | $ 2,397,337 | $ 2,293,594 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 26,971,038 | 24,631,327 |
Common stock, shares outstanding | 26,938,650 | 24,631,327 |
Treasury stock | 32,388 | 32,388 |
VIE [Member] | ||
Cash Related to VIE | $ 921,972 | $ 708,858 |
Accounts receivable | 6,082,888 | 6,010,961 |
Employee loans | 491,550 | 491,850 |
Prepaid and other current assets | 453,420 | 329,427 |
Property, plant and equipment, net of accumulated depreciation | 653,892 | 693,629 |
Other assets | 921,470 | 921,470 |
Accounts payable and accrued expenses | 1,622,119 | 1,366,143 |
Accounts payable, related party | 251,588 | 251,588 |
Line of credit, short term | 439,524 | 439,524 |
Deferred rent, short term portion | 237,923 | 237,923 |
Deferred rent, long term portion | 2,266,195 | 2,214,909 |
Crane Creek Surgery Center [Member] | ||
Accounts payable and accrued expenses | 635,366 | 461,489 |
Deferred rent, long term portion | 557,645 | 556,051 |
B.A.C.K. Center [Member] | ||
Other assets | 22,005 | 22,005 |
Accounts payable and accrued expenses | $ 987,774 | $ 904,684 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues: | ||||
Patient service revenue | $ 7,870,271 | $ 7,290,456 | $ 15,277,257 | $ 14,168,121 |
Allowance for bad debts | (239,354) | (267,194) | (504,350) | (529,718) |
Net patient service revenue less provision for bad debts | 7,630,917 | 7,023,262 | 14,772,907 | 13,638,403 |
Rental revenue | 583,774 | 629,838 | 1,162,137 | 1,256,450 |
Total revenue | 8,214,691 | 7,653,100 | 15,935,044 | 14,894,853 |
Operating expenses: | ||||
Salaries and benefits | 3,591,451 | 3,139,042 | 6,945,827 | 5,919,611 |
Other operating expenses | 2,631,823 | 2,428,310 | 5,161,006 | 4,473,885 |
General and administrative | 2,018,819 | 1,680,807 | 3,554,652 | 3,228,383 |
Depreciation and amortization | 193,424 | 136,800 | 382,912 | 435,750 |
Total operating expenses | 8,435,517 | 7,384,959 | 16,044,397 | 14,057,629 |
Net (loss) income from operations | (220,826) | 268,141 | (109,353) | 837,224 |
Other income (expense): | ||||
Gain on sale of property and improvements | 23,378 | 9,212,346 | ||
Miscellaneous income (expense) | 53,696 | 46,812 | 103,798 | 105,669 |
Amortization of financing costs | (329) | (15,654) | ||
Interest expense, net | (30,107) | (51,053) | (62,181) | (232,188) |
Total other income | 23,589 | 18,808 | 41,617 | 9,070,173 |
Net (loss) income before provision for income taxes | (197,237) | 286,949 | (67,736) | 9,907,397 |
Income taxes (benefit) | ||||
Net (loss) income | (197,237) | 286,949 | (67,736) | 9,907,397 |
Non-controlling interest (note 10) | 65,662 | (133,812) | 138,680 | (187,319) |
NET (LOSS) INCOME ATTRIBUTABLE TO FIRST CHOICE HEALTHCARE SOLUTIONS, INC. | $ (131,575) | $ 153,137 | $ 70,944 | $ 9,720,078 |
Net (loss) income per common share, basic | $ 0 | $ 0.01 | $ 0 | $ 0.42 |
Net (loss) income per common share, diluted | $ 0 | $ 0.01 | $ 0 | $ 0.36 |
Weighted average number of common shares outstanding, basic | 26,843,848 | 23,862,943 | 26,549,810 | 23,374,625 |
Weighted average number of common shares outstanding, diluted | 26,843,848 | 27,196,277 | 27,349,810 | 26,707,959 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($) | Common Stock | Additional Paid In Capital | Treasury Stock | Accumulated Deficit | Non-controlling Interest | Total |
Beginning Balance, Amount at Dec. 31, 2016 | $ 24,631 | $ 24,020,610 | $ (10,100,534) | $ 1,011,649 | $ 14,956,356 | |
Beginning Balance, Shares at Dec. 31, 2016 | 24,631,327 | |||||
Common stock issued in settlement of convertible debt, previously accrued, Amount | $ 1,867 | (1,867) | ||||
Common stock issued in settlement of convertible debt, previously accrued, Shares | 1,866,667 | |||||
Common stock issued for services rendered, Amount | $ 167 | 198,206 | 198,373 | |||
Common stock issued for services rendered, Shares | 167,044 | |||||
Purchase shares of Company's common Stock | (49,954) | (49,954) | ||||
Stock based compensation , Amount | $ 306 | 126,342 | 126,648 | |||
Stock based compensation, Shares | 306,000 | |||||
Net income | 70,944 | (138,680) | (67,736) | |||
Ending Balance, Amount at Jun. 30, 2017 | $ 26,971 | $ 24,343,291 | $ (49,954) | $ (10,029,590) | $ 872,969 | $ 15,163,687 |
Ending Balance, Shares at Jun. 30, 2017 | 26,971,038 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (67,736) | $ 9,907,397 |
Adjustments to reconcile net (loss) income to cash used in operating activities: | ||
Depreciation and amortization | 382,912 | 435,750 |
Amortization of financing costs | 15,654 | |
Bad debt expense | 504,350 | 529,718 |
Gain on sale of property | (9,212,346) | |
Common stock issued in connection with loan extension | 92,000 | |
Stock based compensation | 325,021 | 334,433 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,823,255) | (2,275,252) |
Prepaid expenses and other current assets | (233,175) | 95,617 |
Restricted funds | 359,414 | |
Employee loans | (210,703) | (412,113) |
Accounts payable and accrued expenses | 138,085 | (650,425) |
Settlement payable | (600,000) | |
Deposits | (22,698) | |
Deferred rent | 103,743 | 145,038 |
Unearned income | 17,101 | (16,350) |
Net cash used in operating activities | (863,657) | (1,274,163) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from sale of property | 15,113,497 | |
Purchase of equipment | (197,588) | (149,507) |
Net cash (used in) provided by investing activities | (197,588) | 14,963,990 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
(Repayments) of advances | (43,082) | |
Proceeds from notes payable | 22,113 | |
Proceeds from line of credit | 372,636 | |
Purchase of treasury stock | (49,954) | |
Payments on notes payable | (262,546) | (7,828,777) |
Net cash used in financing activities | (290,387) | (7,499,223) |
Net (decrease) increase in cash and cash equivalents | (1,351,632) | 6,190,604 |
Cash and cash equivalents, beginning of period | 4,593,638 | 1,594,998 |
Cash and cash equivalents, end of period | 3,242,006 | 7,785,602 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid during the period for interest | 62,181 | 237,943 |
Cash paid during the period for taxes | ||
Supplemental disclosure of non-cash investing and financing activities: | ||
Common stock issued in settlement of accrued expenses | $ 597,067 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2017 | |
Basis Of Presentation | |
BASIS OF PRESENTATION | NOTE 1 — BASIS OF PRESENTATION A summary of the significant accounting policies applied in the presentation of the accompanying unaudited condensed consolidated financial statements follows: General The (a) condensed consolidated balance sheet as of December 31, 2016, which has been derived from the audited financial statements of First Choice Healthcare Solutions, Inc. (“FCHS” and including, where appropriate, its consolidated subsidiaries and entities in which we have a controlling financial interest, the “Company”), and (b) the unaudited condensed consolidated interim financial statements as of June 30, 2017 and 2016 of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. To determine if we hold a controlling financial interest in an entity, we first evaluate if we are required to apply the variable interest entity (“VIE”) model to the entity, otherwise the entity is evaluated under the voting interest model. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of results that may be expected for the year ending December 31, 2017 or any other period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K/A, filed with the Securities and Exchange Commission (the “SEC”) on April 3, 2017. Basis of Presentation Effective April 4, 2012, Medical Billing Assistance, Inc., a Colorado corporation (“Medical Billing”), merged with and into the Company. The effect of the merger was that Medical Billing reincorporated from Colorado to Delaware (the “Reincorporation”). The Company is deemed to be the successor issuer of Medical Billing under Rule 12g-3 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Other than the foregoing, the Reincorporation did not result in any change in the business, management, fiscal year, accounting, and location of the principal executive offices, assets or liabilities of the Company. On April 2, 2012, the Company completed its acquisition of First Choice Medical Group of Brevard, LLC (“FCMG - Brevard”), pursuant to the Membership Interest Purchase Closing Agreement (the “Purchase Agreement”). The Company has been managing the practice of First Choice – Brevard since November 1, 2011, pursuant to a Management Services Agreement. Brevard Orthopedic Spine & Pain Clinic, Inc. Effective May 1, 2015, the Company, through its wholly owned subsidiary, TBC Holdings of Melbourne, Inc., entered into an Operating and Control Agreement (the Agreement”) with Brevard Orthopaedic Spine & Pain Clinic, Inc. (“The B.A.C.K. Center”), whereby we have sole and exclusive management and control of The B.A.C.K. Center, including, but not limited to, administrative, financial, facility and business operations including the requirement to absorb losses or right to receive economic benefits. We issued 3,000,000 options to purchase our Company’s Common Stock at $1.35 per share to The B.A.C.K. Center employees providing specific qualifications are met. The initial term of the Agreement relating to the options expired on December 31, 2016, with the Company having the right to extend the term until December 31, 2023. We exercised our option to extend the term until December 31, 2017. The Agreement allows the Company to hold the current or potential rights that give it the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, combined with a variable interest that gives the Company the right to receive potentially significant benefits or the obligation to absorb potentially significant losses. The Company has a controlling financial interest in the VIE. Rights held by others to remove the party with power over the VIE are not considered unless one party can exercise those rights unilaterally. When changes occur to the structure of the entity, the Company will reconsider whether it is subject to the VIE model. The Company continuously evaluates whether it has a controlling financial interest in the VIE. Crane Creek Surgery Center Effective October 1, 2015, the Company, through its wholly owned subsidiary, CCSC Holdings, Inc., acquired a 40% interest in Crane Creek Surgery Center (“Crane Creek”). In connection with the investment, the Company is entitled to 51% voting rights for all decisions that most significantly affect the economic performance of Crane Creek. The 40% equity interest acquired entitles the Company to 40% of the profit or loss of Crane Creek. Non-controlling interests relate to the third-party ownership in a consolidated entity in which the Company has a controlling interest. For financial reporting purposes, the entity’s assets, liabilities, and operations are consolidated with those of the Company, and the non-controlling interest in the entity is included in the Company’s consolidated financial statements as a component of total equity. The unaudited condensed consolidated financial statements include the accounts of the Company and its direct and indirect wholly owned subsidiaries: Marina Towers, LLC, FCID Medical Inc., TBC Holdings of Melbourne, Inc., First Choice – Brevard, Surgical Partners of Melbourne, Inc. and CCSC Holdings, Inc., along with two VIEs, The B.A.C.K. Center and Crane Creek. All significant intercompany balances and transactions, including those involving the VIEs, have been eliminated in consolidation. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2017 | |
Significant Accounting Policies | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES Use of estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Significant estimates include the recoverability and useful lives of long-lived assets, provision against bad debt, the fair value of the Company’s stock, and stock-based compensation. Actual results may differ from these estimates. Revenue recognition The Company recognizes revenue when: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. ASC 605-10 incorporates Accounting Standards Codification subtopic 605-25, “ Multiple-Element Arrangements The Company recognizes in accordance with Accounting Standards Codification subtopic 954-310, “Health Care Entities” (“ASC 954-310”), significant patient service revenue at the time the services are rendered, even though it does not assess the patient’s ability to pay. Therefore, The Company’s interim and annual periods reports disclose both, its policy for assessing and disclosing the timing and amount of uncollectable patient service revenue recognized as doubtful. Qualitative and quantitative information about significant changes in the allowance for doubtful accounts related to patient accounts receivable are disclosed in the Company’s reports. These estimates are based upon the history and identified trends for each of our payers. Patient service revenue The Company recognizes patient service revenue associated with services provided to patients who have third-party payer coverage on the basis of contractual rates for the services provided. For uninsured or self-pay patients that do not qualify for charity care, the Company recognizes revenue on the basis of its standard rates for services provided (or on the basis of discounted rates, if negotiated or provided by policy). On the basis of historical experience, a portion of the Company’s patient service revenue may be potentially uncollectible due to patients who are unable or unwilling to pay for the services provided or the portion of their bill for which they are responsible. Thus, the Company records a provision for bad debts related to potentially uncollectible patient service revenue in the period the services are provided. Concentrations of credit risk The Company’s financial instruments that are exposed to a concentration of customer risk and accounts receivable risk. Occasionally, the Company’s cash and cash equivalents in interest-bearing accounts may exceed FDIC insurance limits. The financial stability of these institutions is periodically reviewed by senior management. Revenues and accounts receivable are concentrated between two major payers with the approximate risk level outlined below. Concentration of Risk Three and six months ended June 30, 2017 2016 Revenue Concentration Medicare 35.0 % 30.0 % Commercial Payor 1 22.0 % 21.0 % June 30, Dec 31, 2017 2016 Receivable Concentration Medicare 34.6 % 27.0 % Commercial Payor 1 15.5 % 19.8 % Commercial Payor 2 12.4 % 11.9 % Accounts receivables As of June 30, 2017 and December 31, 2016, the Company’s allowance for bad debts was $3,455,094 and $3,680,837, respectively. Net (loss) income per share Basic net (loss) income per common share is based upon the weighted-average number of common shares outstanding. Diluted net income per common share is based on the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding and computed as follows: Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Numerator: Net (loss) income $ (131,575 ) $ 153,137 $ 70,944 $ 9,720,078 Denominator: Weighted-average common shares, basic 26,843,848 23,862,943 26,549,810 23,374,625 Weighted-average common shares, diluted 26,843,848 27,196,277 27,349,810 26,707,959 Basic: $ (0.00 ) $ 0.01 $ 0.00 $ 0.42 The diluted earnings per common share included the effect of 3,333,333 common shares issuable upon the conversion of debt for the three and six months ended June 30, 2016.The computation excludes potentially dilutive securities when their inclusion would be anti-dilutive, or if their exercise prices were greater than the average market price of the common stock during the period. Potentially dilutive common shares from convertible debt and from employee equity plans and issued warrants are determined by applying the treasury stock method to the assumed exercise of warrants and share options are were excluded from the computation of the diluted net income per share because their inclusion would be anti-dilutive. In addition, there were no vested restrict stock for periods presented. Potentially dilutive securities excluded from the basic and diluted net income per share are as follows: June 30, 2017 2016 Convertible line of credit 800,000 — Warrants to purchase common stock 1,875,000 4,324,630 Options to purchase common stock 3,000,000 3,000,000 Restricted stock awards 660,000 150.000 6,335,000 7,474,630 Treasury Stock The Company uses the cost method when it purchases its own common stock as treasury shares and displays treasury stock as a reduction of shareholders’ equity. Reclassification Certain reclassifications have been made to prior period’s data to conform to the current year’s presentation. These reclassifications had no effect on reported income or losses. Recent accounting pronouncements In May 2014, the FASB issued ASU 2014-09—Revenue from Contracts with Customers (Topic 606). The guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The FASB delayed the effective date to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. In addition, in March and April 2016, the FASB issued new guidance intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. Both amendments permit the use of either a retrospective or cumulative effect transition method and are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early application permitted. The Company is assessing the impact of this new standard on its financial statements and has not yet selected a transition method. In February 2016, the FASB issued ASU 2016-02—Leases (Topic 842), requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition and requires application of the new guidance at the beginning of the earliest comparative period presented. The Company is evaluating the effect that the updated standard will have on its financial statements and related disclosures. In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-15—Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 provides guidance for eight specific cash flow issues with respect to how cash receipts and cash payments are classified in the statements of cash flows, with the objective of reducing diversity in practice. The effective date for ASU 2016-15 is for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this new standard on its financial statements. In January 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-04, Intangibles – Goodwill and Other (Topic 350). The amendments in this update simplify the test for goodwill impairment by eliminating Step 2 from the impairment test, which required the entity to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining fair value of assets acquired and liabilities assumed in a business combination. The amendments in this update are effective for public companies for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We are evaluating the impact of adopting this guidance on our Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805); Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this update are effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those periods. We are evaluating the impact of adopting this guidance on our Consolidated Financial Statements. Subsequent events The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements, except as disclosed. |
LIQUIDITY
LIQUIDITY | 6 Months Ended |
Jun. 30, 2017 | |
Liquidity Disclosures [Abstract] | |
LIQUIDITY | NOTE 3 – LIQUIDITY The Company incurred various non-recurring expenses in 2016 in connection with the planned development of its Healthcare Services Business. Management believes continued growth of earnings before interest, taxes, depreciation and amortization in 2017 will support improved liquidity. The Company believes that the current cash balance and line of credit (see notes), along with continued execution of its business development plan, will allow the Company to further improve its working capital; and currently anticipates that it will have sufficient capital resources to meet projected cash flow requirements through the date at least one year from the filing of this report. However, in order to execute the Company’s business development plan, which there can be no assurance we will achieve, the Company may need to raise additional funds through public or private equity offerings, debt financings, corporate collaborations or other means and potentially reduce operating expenditures. If the Company is unable to secure additional capital, it may be required to curtail its business development initiatives and take additional measures to reduce costs in order to conserve its cash. |
OTHER ASSETS
OTHER ASSETS | 6 Months Ended |
Jun. 30, 2017 | |
Other Assets [Abstract] | |
OTHER ASSETS | NOTE 4 — OTHER ASSETS Other assets are comprised of the following: June 30, 2017 December 31, 2016 Goodwill (amount relating to VIE of $899,465) $ 899,465 $ 899,465 Deferred costs, net of amortization of $699,062 and $537,740 2,527,365 2,688,687 Patient list, net of accumulated amortization of $105,000 and $95,000 195,000 205,000 Patents, net of accumulated amortization of $66,850 and $57,300 219,650 229,200 Investments (amounts related to VIE of $22,005) 22,005 22,005 Deferred tax asset 181,029 181,029 Deposits 2,571 2,571 Total other assets $ 4,047,085 $ 4,227,957 |
LINES OF CREDIT
LINES OF CREDIT | 6 Months Ended |
Jun. 30, 2017 | |
Line of Credit Facility [Abstract] | |
LINES OF CREDIT | NOTE 5 — LINES OF CREDIT Line of credit, CT Capital FCMG - Brevard entered into a Loan and Security Agreement (the “Loan Agreement”) with CT Capital, Ltd., d/b/a CT Capital, LP, a Florida limited liability partnership (the “Lender”). Under the Loan Agreement, the Lender committed to make an accounts receivable line of credit in the maximum aggregate amount of $2,500,000 to FCMG - Brevard with an interest rate of 6% per annum (the “Loan”). Interest is due and payable monthly. The Lender may convert up to $2,000,000 of the outstanding principal amount or interest on the Loan into common stock of the Company at a conversion price of $0.75 per share. On March 30, 2017, the Company’s Loan and Security Agreement with CT Capital, Ltd. (“Lender”) was amended to extend the Maturity Date to June 30, 2018 (the “Loan”) and further provide that neither the Company nor Lender shall effectuate any conversion of the Loan to the extent that after giving effect to any such conversion, the Lender would beneficially own in excess of 9.99% of the number of shares of our Company’s shares of Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion of the Loan by the Lender. As of June 30, 2017 and December 31, 2016, the outstanding balance was $1,100,000 and the remaining principal amount the Lender can convert into common stock is $600,000, subject to the limitations set forth above. The balance available on the line of credit is $1,400,000 as of June 30, 2017. . Line of credit, Florida Business Bank The B.A.C.K. Center is a party to a Promissory Note (the “Loan Agreement”) with Florida Business Bank, a Florida banking corporation (the “Lender”). Under the Loan Agreement, the Lender committed to make an accounts receivable line of credit in the maximum aggregate amount of $1,383,000 (as amended), with an interest rate of Prime floating plus 1.0%, as published in The Wall Street Journal Interest shall be due and payable monthly and principal is due on demand. The outstanding principal balance plus all accrued but unpaid interest shall be due on demand (the “Maturity Date”). Upon default, the interest may be adjusted to the highest rate permissible by law. The Loan is secured by all assets of The B.A.C.K. Center now owned or hereafter acquired. The assets constitute the collateral for the repayment of the Loan. The Loan Agreement also includes covenants, representations, warranties, indemnities and events of default that are customary for facilities of this type. The advance rate is defined as: 60% of eligible accounts receivables. Eligible receivables include all Medicare and Medicaid receivables less than 90 days old multiplied by a factor of 0.25, plus all other receivables less than 90 days old multiplied by a factor of 0.50. As of June 30, 2017, The B.A.C.K. Center had not violated the loan covenants. The obligations of The B.A.C.K Center under the Loan Agreement are guaranteed by the shareholders of The B.A.C.K. Center. The Loan Agreement is also guaranteed in the amount of $950,000 by related parties of The B.A.C.K. Center. As of June 30, 2017 and December 31, 2016, the outstanding balance on the Loan was $439,524. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 6 — COMMITMENTS AND CONTINGENCIES Litigations, Claims and Assessments From time to time, we may become involved in lawsuits and legal proceedings which arise in the ordinary course of business including potential disputes with patients. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. Our contracts with hospitals generally require us to indemnify them and their affiliates for losses resulting from the negligence of our physicians. Currently, we have no pending litigation that is deemed to be material. |
CAPITAL STOCK
CAPITAL STOCK | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
CAPITAL STOCK | NOTE 7 — CAPITAL STOCK During the six months ended June 30, 2017, the Company issued an aggregate of 306,000 shares of its common stock to officers, employees and service providers at an aggregate fair value of $301,840, which were earned and expensed in 2016. During the six months ended June 30, 2017, the Company issued an aggregate of 167,044 shares of its common stock to service providers at an aggregate fair value of $198,373. During the six months ended June 30, 2017, the Company issued 1,866,667 shares of its common stock in exchange for $1,400,000 in convertible debt. The value of shares was recorded as a share issuance liability as of December 31, 2016. Treasury stock In May 2017, the Board of Directors authorized a share repurchase of up to one million shares of the Corporation's common stock, the “Repurchase Plan”. The Repurchase Plan does not have formal end date but will automatically terminate (a) when the aggregate number of shares purchase reach one million shares, (b) two business days after notice of termination, (c) the commencement of any voluntary or involuntary case or other proceeding seeking liquidation, reorganization or relief under any bankruptcy, insolvency or similar law or seeking the appointment of a trustee, receiver or other similar official or the taking of any corporate action by the Company to authorize any of the foregoing and (d) the public announcement of a tender offer or exchange offer for the Company securities of a merger, acquisition, recapitalization or other similar business combination which as a result the Company’s equity securities would be exchanged for or converted into cash, securities or other property. Share repurchases under this authorization may be made in the open market through unsolicited or solicited privately negotiated transactions, or in such other appropriate manner, and may be funded from available cash and the revolving credit facility. The amount and timing of the repurchases, if any, would be determined by the Corporation's management and would depend on a variety of factors including price, corporate and regulatory requirements, capital availability and other market conditions. Common stock acquired through the stock repurchase program would be held as treasury shares and may be used for general corporate purposes, including reissuances in connection with acquisitions, employee stock option exercises or other employee stock plans. As of June 30, 2017 the Company had purchased 32,388 shares at an average purchase price of $1.54 per share, for aggregate proceeds of $49,954. |
STOCK OPTIONS, WARRANTS AND RES
STOCK OPTIONS, WARRANTS AND RESTRICTED STOCK UNITS | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK OPTIONS, WARRANTS AND RESTRICTED STOCK UNITS | NOTE 8 — STOCK OPTIONS, WARRANTS AND RESTRICTED STOCK UNITS Restricted Stock Units (“RSU”) The following table summarizes the restricted stock activity for the six months ended June 30, 2017: Restricted shares units issued as of December 31, 2016 660,000 Granted — Forfeited — Total Restricted Shares Issued at June 30, 2017 660,000 Vested at June 30, 2017 — Unvested restricted shares as of June 30, 2017 660,000 At June 30, 2017, the Company determined that there is a 100% probability the performance based restricted stock units will be earned. The fair value of all restricted stock units vesting during the three and six months ended June 30, 2017 of $63,324 and $126,647, respectively, was charged to current period operations. Stock-based compensation expense related to restricted stock units was $-0- for the three and six months ended June 30, 2016. As of June 30, 2017, stock-based compensation related to restricted stock awards of $425,506 remains unamortized and is expected to be amortized over the weighted average remaining period of 1.88 years. |
VARIABLE INTEREST ENTITY
VARIABLE INTEREST ENTITY | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITY | NOTE 9 — VARIABLE INTEREST ENTITY Brevard Orthopaedic Spine & Pain Clinic, Inc. Effective May 1, 2015, the Company, through its wholly owned subsidiary, TBC Holdings of Melbourne, Inc., entered into an Operating and Control Agreement (the “Agreement”) with Brevard Orthopaedic Spine & Pain Clinic, Inc. (“The B.A.C.K. Center”), whereby we have sole and exclusive management and control of The B.A.C.K. Center, including, but not limited to, administrative, financial, facility and business operations including the requirement to absorb losses or right to receive economic benefits. We issued 3,000,000 options to purchase our Company’s Common Stock at $1.35 per share with vesting contingent on The B.A.C.K. Center employees signing employment contracts with First Choice – Brevard. The initial term of the Agreement relating to the options expired on December 31, 2016, with the Company having the right to extend the term until December 31, 2023. We exercised our option to extend the term until December 31, 2017. The Company has determined that The B.A.C.K. Center is a Variable Interest Entity (“VIE”) . In determining whether the Company has the right to receive benefits or the obligation to absorb losses that could potentially be significant to the VIE, the Company evaluates all of its economic interests in the entity, regardless of form (debt, equity, management and servicing fees, and other contractual arrangements). This evaluation considers all relevant factors of the entity’s structure, including: the entity’s capital structure, contractual rights to earnings (losses), subordination of our interests relative to those of other investors, contingent payments, as well as other contractual arrangements that have potential to be economically significant. The evaluation of each of these factors in reaching a conclusion about the potential significance of the Company’s economic interests is a matter that requires the exercise of professional judgment. The assets of The B.A.C.K. Center can only be used to settle obligations of the VIE, additionally, creditors of The B.A.C.K. Center do not have recourse against the general credit of the primary beneficiary. The tables below summarize the assets and liabilities associated with The B.A.C.K. Center as of June 30, 2017 and December 31, 2016: June 30, 2017 December 31, 2016 Current assets: Cash $ 608,790 $ 355,491 Accounts receivable 4,860,247 4,830,054 Other current assets 827,864 691,847 Total current assets 6,296,901 5,877,392 Property and equipment, net 75,245 70,444 Other assets 22,005 22,005 Total assets $ 6,394,151 $ 5,969,841 Current liabilities: Accounts payable and accrued liabilities $ 987,774 $ 904,684 Due to First Choice Healthcare Solutions, Inc. 3,159,066 2,867,539 Other current liabilities 677,447 677,446 Total current liabilities 4,824,287 4,449,669 Long term debt 1,708,550 1,658,858 Total liabilities 6,532,837 6,108,527 Non-controlling interest (138,686 ) (138,686 ) Total liabilities and deficit $ 6,394,151 $ 5,969,841 Total revenues from The B.A.C.K. Center were $3,539,460 and $6,970,115 for the three and six months ended June 30, 2017. Related expenses consisted primarily of salaries and benefits of $1,814,747 and $3,533,464, other operating expense of $820,023 and $1,676,505, general and administrative expenses of $821,101 and $1,541,333, depreciation of $6,238 and $12,400, interest and financing costs of $4,481 and $8,385; and other income of $45,667 and $91,351 for the three and six months ended June 30, 2017, respectively. (See Note 11 – Segment Reporting) Total revenues from The B.A.C.K. Center were $3,562,161 and $6,955,158 for the three and six months ended June 30, 2016. Related expenses consisted primarily of salaries and benefits of $1,762,710 and $3,220,621, other operating expenses of $782,619 and$1,564,117, general and administrative expenses of $769,315 and $1,492,807, depreciation of $5,701 and $11,216, interest and financing costs of $3,947 and $7,394; and other income of $44,506 and $101,231 for the three and six months ended June 30, 2016, respectively. (See Note 11 – Segment Reporting) Crane Creek Surgery Center Effective October 1, 2015, the Company, through its then newly formed wholly owned subsidiary, CCSC Holdings, Inc., acquired a 40% interest in Crane Creek Surgery Center (“Crane Creek”). In connection with the investment, the Company is entitled to 51% voting rights for all decisions that most significantly affect the economic performance of Crane Creek. The 40% equity interest acquired entitles the Company to 40% of the profit or loss of Crane Creek. The Company has determined that Crane Creek is a Variable Interest Entity (“VIE”) . This evaluation requires consideration of all facts and circumstances relevant to decision-making that affects the entity’s future performance and the exercise of professional judgment in deciding which decision-making rights are most important. In determining whether the Company has the right to receive benefits or the obligation to absorb losses that could potentially be significant to the VIE, the Company evaluates all of its economic interests in the entity, regardless of form (debt, equity, management and servicing fees, and other contractual arrangements). This evaluation considers all relevant factors of the entity’s structure, including: the entity’s capital structure, contractual rights to earnings (losses), subordination of our interests relative to those of other investors, contingent payments, as well as other contractual arrangements that have potential to be economically significant. The evaluation of each of these factors in reaching a conclusion about the potential significance of the Company’s economic interests is a matter that requires the exercise of professional judgment. The assets of Crane Creek can only be used to settle obligations of the VIE, additionally, creditors of the Crane Creek do not have recourse against the general credit of the primary beneficiary. The tables below summarize the assets and liabilities associated with the Crane Creek as of June 30, 2017 and December 31, 2016: June 30, 2017 December 31, 2016 Current assets: Cash $ 313,182 $ 353,367 Accounts receivable 1,222,641 1,180,907 Other current assets 116,757 129,430 Total current assets 1,652,580 1,663,704 Property and equipment, net 578,647 623,185 Goodwill 899,465 899,465 Total assets $ 3,130,692 $ 3,186,354 Current liabilities: Accounts payable and accrued liabilities $ 635,366 $ 461,489 Other current liabilities 251,588 251,588 Total current liabilities 886,954 713,077 Deferred rent 557,645 556,051 Total liabilities 1,444,599 1,269,128 Equity-First Choice Healthcare Solutions, Inc. 674,438 766,891 Non-controlling interest 1,011,655 1,150,335 Total liabilities and deficit $ 3,130,692 $ 3,186,354 Total revenues from Crane Creek were $1,248,252 and $2,438,677 for the three and six months ended June 30, 2017. Related expenses consisted primarily of salaries and benefits of $293,208 and $591,507, practice supplies and operating expenses of $875,132 and $1,727,254, general and administrative expenses of $168,009 and $304,363, depreciation of $28,145 and $56,294, interest expense of $473 and $1,339 and miscellaneous income of $7,279 and $10,947 for the three and six months ended June 30, 2017, respectively. (See Note 11 – Segment Reporting) Total revenues from Crane Creek were $1,446,053 and $2,717,361 for the three and six months ended June 30, 2016. Related expenses consisted primarily of salaries and benefits of $314,056 and $607,393, practice supplies and operating expenses of $830,261 and $1,539,907, general and administrative expenses of $125,893 and $235,168, depreciation of $(22,244) and $49,012, interest expense of $1,361 and $10,087, gain on sale of equipment of $23,378 and $23,378 and miscellaneous income of $1,556 and $2,938 for the three and six months ended June 30, 2016, respectively. (See Note 11 – Segment Reporting) |
NON-CONTROLLING INTEREST
NON-CONTROLLING INTEREST | 6 Months Ended |
Jun. 30, 2017 | |
Noncontrolling Interest [Abstract] | |
NON-CONTROLLING INTEREST | NOTE 10 — NON-CONTROLLING INTEREST Effective May 1, 2015, the Company, through its wholly owned subsidiary, TBC Holdings of Melbourne, Inc., entered into an Operating and Control Agreement (the Agreement”) with Brevard Orthopaedic Spine & Pain Clinic, Inc. (“The B.A.C.K. Center”), whereby we have sole and exclusive management and control of The B.A.C.K. Center, including, but not limited to, administrative, financial, facility and business operations including the requirement to absorb losses or right to receive economic benefits. We issued 3,000,000 options to purchase our Company’s Common Stock at $1.35 per share with vesting contingent on The B.A.C.K. Center employees signing employment contracts with First Choice – Brevard. The initial term of the Agreement relating to the options expired on December 31, 2016, with the Company having the right to extend the term until December 31, 2023. We exercised our option to extend the term until December 31, 2017. A reconciliation of the non-controlling income attributable to the Company: Net income attributable to non-controlling interest for the three months ended June 30, 2017: Net income $ 118,537 Average Non-controlling interest percentage of profit/losses -0- % Net income attributable to the non-controlling interest $ -0- Net income attributable to non-controlling interest for the six months ended June 30, 2017: Net income $ 289,379 Average Non-controlling interest percentage of profit/losses -0- % Net income attributable to the non-controlling interest $ -0- Net loss attributable to non-controlling interest for the three months ended June 30, 2016: Net income $ 133,258 Average Non-controlling interest percentage of profit/losses -0- % Net income attributable to the non-controlling interest $ -0- Net loss attributable to non-controlling interest for the six months ended June 30, 2016: Net income $ 461,999 Average Non-controlling interest percentage of profit/losses -0- % Net income attributable to the non-controlling interest $ -0- The following table summarizes the changes in non-controlling interest from December 31, 2016 through June 30, 2017: Balance, December 31, 2016 $ (138,686 ) Transfer (to) from the non-controlling interest as a result of change in ownership — Net income attributable to the non-controlling interest — Balance, June 30, 2017 $ (138,686 ) Effective October 1, 2015, the Company, through its wholly owned subsidiary, CCSC Holdings, Inc., acquired a 40% interest in Crane Creek Surgery Center (“Crane Creek”). In connection with the investment, the Company is entitled to 51% voting rights for all decisions that most significantly affect the economic performance of Crane Creek. The 40% equity interest acquired entitles the Company to 40% of the profit or loss of Crane Creek. A reconciliation of the non-controlling income attributable to the Company: Net loss attributable to non-controlling interest for the three months ended June 30, 2017: Net loss $ (109,435 ) Average Non-controlling interest percentage of profit/losses 60 % Net income/loss attributable to the non-controlling interest $ (65,662 ) Net loss attributable to non-controlling interest for the six months ended June 30, 2017: Net loss $ (231,133 ) Average Non-controlling interest percentage of profit/losses 60 % Net income/loss attributable to the non-controlling interest $ (138,680 ) Net income attributable to non-controlling interest for the three months ended June 30, 2016: Net income $ 223,021 Average Non-controlling interest percentage of profit/losses 60 % Net income/loss attributable to the non-controlling interest $ 133,812 Net income attributable to non-controlling interest for the six months ended June 30, 2016: Net income $ 312,198 Average non-controlling interest percentage of profit/losses 60 % Net income/loss attributable to the non-controlling interest $ 187,319 The following table summarizes the changes in non-controlling interest from December 31, 2016 through June 30, 2017: Balance, December 31, 2016 1,150,335 Transfer (to) from the non-controlling interest as a result of change in ownership — Net income attributable to the non-controlling interest (138,680 ) Balance, June 30, 2017 $ 1,011,655 |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 11 — SEGMENT REPORTING The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments. The Company has three reportable segments: FCID Medical, Inc., The B.A.C.K. Center and CCSC Holdings, Inc. (“CCSC”). All reportable segments derive revenue for medical services provided to patients; and The B.A.C.K Center additionally derives revenue for subleasing space within its building and medical services provided to patients. With the aforementioned sale and leaseback of Marina Towers on March 31, 2016, the Company will no longer report segmented rental revenue received from third-party Marina Tower tenants under the segment heading “Marina Towers.” Rather, the Company has consolidated rental revenue received from third-party tenants of Marina Towers under the “Corporate” segment for both the 2017 and 2016 comparable reporting periods; and will continue to do so hereafter. Information concerning the operations of the Company’s reportable segments is as follows: Summary Statement of Loss for the three months ended June 30, 2017: FCID Brevard. Intercompany Medical Orthopaedic CCSC Corporate Eliminations Total Revenue: Net Patient Service Revenue $ 3,186,892 $ 3,195,773 $ 1,248,252 $ - $ - $ 7,630,917 Rental revenue - 343,687 443,267 (203,180) 583,774 Total Revenue 3,186,892 3,539,460 1,248,252 443,267 (203,180) 8,214,691 Operating expenses: Salaries & benefits 1,242,713 1,814,747 293,208 240,783 - 3,591,451 Other operating expenses 704,940 820,023 875,132 420,076 (188,348) 2,631,823 General and administrative 619,974 740,940 168,009 504,728 (14,832) 2,018,819 Depreciation and amortization 73,480 6,238 28,145 85,561 - 193,424 Total operating expenses 2,641,107 3,381,948 1,364,494 1,251,148 (203,180) 8,435,517 Net income (loss) from operations: 545,785 157,512 (116,242) (807,881) - (220,826) Interest income (expense) (24,743) (4,481) (473) (410) - (30,107) Other income (expense) - 45,667 7,279 750 - 53,696 Net Income (loss) before income taxes: 521,042 198,698 (109,436) (807,541) - (197,237) Income taxes - - - - Net income (loss) 521,042 198,698 (109,436) (807,541) - (197,237) Non-controlling interest - - 65,662 - - 65,662 Net income (loss) attributable to First Choice Healthcare Solutions $ 521,042 $ 198,698 $ (43,774) $ (807,541) $ - $ (131,575) Summary Statement of Loss for the six months ended June 30, 2017: FCID Brevard Medical Orthopaedic CCSC Corporate Total Revenue: Net Patient Service Revenue $ 6,047,878 $ 6,286,352 $ 2,438,677 $ - $ - $ 14,772,907 Rental revenue - 683,763 875,117 (396,743) 1,162,137 Total Revenue 6,047,878 6,970,115 2,438,677 875,117 (396,743) 15,935,044 Operating expenses: Salaries & benefits 2,337,949 3,533,464 591,507 482,907 6,945,827 Other operating expenses 1,296,091 1,676,505 1,727,254 828,937 (367,781) 5,161,006 General and administrative 1,145,283 1,379,738 304,363 754,230 (28,962) 3,554,652 Depreciation and amortization 143,221 12,400 56,294 170,997 - 382,912 Total operating expenses 4,922,544 6,602,107 2,679,418 2,237,071 (396,743) 16,044,397 Net income (loss) from operations: 1,125,334 368,008 (240,741) (1,361,954) - (109,353) Interest income (expense) (52,301) (8,385) (1,339) (156) - (62,181) Other income (expense) - 91,351 10,947 1,500 - 103,798 Net Income (Loss) before income taxes: 1,073,033 450,974 (231,133) (1,360,610) - (67,736) Income taxes - - - - Net income (Loss) 1,073,033 450,974 (231,133) (1,360,610) - (67,736) Non-controlling interest - - 138,680 - - 138,680 Net income (loss) attributable to First Choice Healthcare Solutions $ 1,073,033 $ 450,974 $ (92,453) $ (1,360,610) $ - $ 70,944 Summary Statement of Income for the three months ended June 30, 2016: FCID Brevard The Crane Intercompany Medical Orthopaedic Center Corporate Eliminations Total Revenue: Net Patient Service Revenue $ 2,377,400 $ 3,199,809 $ 1,446,053 $ - $ - $ 7,023,262 Rental revenue - 362,352 267,486 - 629,838 Total Revenue 2,377,400 3,562,161 1,446,053 267,486 - 7,653,100 Operating expenses: Salaries & benefits 871,446 1,762,710 314,056 190,830 - 3,139,042 Other operating expenses 327,576 854,934 830,261 415,539 - 2,428,310 General and administrative 321,823 769,315 125,893 463,776 - 1,680,807 Depreciation and amortization 67,907 5,701 (22,244) 85,436 - 136,800 Total operating expenses 1,588,752 3,392,660 1,247,966 1,155,581 - 7,384,959 Net income (loss) from operations: 788,648 169,501 198,087 (888,095) - 268,141 Interest income (expense) (54,805) (3,618) (1,361) 8,731 - (51,053) Amortization of financing costs - (329) - - - (329) Gain on sale of property - - 23,378 - - 23,378 Other income (expense) - 44,506 1,556 750 - 46,812 Net Income (loss) before income taxes: 733,843 210,060 221,660 (878,614) - 286,949 Income taxes - - - - Net income (loss) 733,843 210,060 221,660 (878,614) - 286,949 Non-controlling interest - - (133,812) - - (133,812) Net income (loss) attributable to First Choice Healthcare Solutions $ 733,843 $ 210,060 $ 87,848 $ (878,614) $ - $ 153,137 Summary Statement of Income for the six months ended June 30, 2016: FCID Brevard The Crane Intercompany Medical Orthopaedic Center Corporate Eliminations Total Revenue: Net Patient Service Revenue $ 4,686,335 $ 6,234,707 $ 2,717,361 $ - $ - $ 13,638,403 Rental revenue - 720,451 695,732 (159,733) 1,256,450 Total Revenue 4,686,335 6,955,158 2,717,361 695,732 (159,733) 14,894,853 Operating expenses: Salaries & benefits 1,700,666 3,220,621 607,393 390,931 - 5,919,611 Other operating expenses 858,983 1,713,235 1,539,907 521,493 (159,733) 4,473,885 General and administrative 683,626 1,492,807 235,168 816,782 - 3,228,383 Depreciation and amortization 134,699 11,216 49,012 240,823 - 435,750 Total operating expenses 3,377,974 6,437,879 2,431,480 1,970,029 (159,733) 14,057,629 Net income (loss) from operations: 1,308,361 517,279 285,881 (1,274,297) - 837,224 Interest income (expense) (111,623) (6,077) (10,087) (104,401) - (232,188) Amortization of financing costs - (1,317) - (14,337) - (15,654) Gain on sale of property - - 23,378 9,188,968 - 9,212,346 Other income (expense) - 101,231 2,938 1,500 - 105,669 Net Income (loss) before income taxes: 1,196,738 611,116 302,110 7,797,433 - 9,907,397 Income taxes - - - - Net income (loss) 1,196,738 611,116 302,110 7,797,433 - 9,907,397 Non-controlling interest - - (187,319) - - (187,319) Net income (loss) attributable to First Choice Healthcare Solutions $ 1,196,738 $ 611,116 $ 114,791 $ 7,797,433 $ - $ 9,720,078 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12 – SUBSEQUENT EVENTS On July 21, 2017, the Company returned 142,500 shares to treasury. The shares were originally issued on July 8 2015 for services to be rendered to the Company. As a result of contract cancellation the shares were returned. On July 21, 2017, the Company and Mr. Timothy Skelton entered into a Separation and General Release Agreement. The agreement calls for Mr. Skelton to resign from his position as Chief Financial Officer, assist with the preparation of the second quarter 10Q filing and provide consulting services to the incoming Chief Financial Officer. For consideration for the above the Company has agreed to pay Mr. Skelton $25,000 in cash for meeting certain performance criteria while an employee and to award 11,100 shares of Common Stock. During July and August the Company continued its “Repurchase Plan” in the open market and purchased an additional 62,438 shares at an average purchase price of $1.50 per share, for aggregate proceeds of $93,824. The total aggregate shares purchased under the “Repurchase Plan” total 94,826 shares at an average purchase price of $1.52, for aggregate proceeds of $143,722. |
SIGNIFICANT ACCOUNTING POLICI19
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Use of estimates | Use of estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Significant estimates include the recoverability and useful lives of long-lived assets, provision against bad debt, the fair value of the CompanyÂ’s stock, and stock-based compensation. Actual results may differ from these estimates. |
Revenue recognition | Revenue recognition The Company recognizes revenue when: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. ASC 605-10 incorporates Accounting Standards Codification subtopic 605-25, “ Multiple-Element Arrangements The Company recognizes in accordance with Accounting Standards Codification subtopic 954-310, “Health Care Entities” (“ASC 954-310”), significant patient service revenue at the time the services are rendered, even though it does not assess the patient’s ability to pay. Therefore, The Company’s interim and annual periods reports disclose both, its policy for assessing and disclosing the timing and amount of uncollectable patient service revenue recognized as doubtful. Qualitative and quantitative information about significant changes in the allowance for doubtful accounts related to patient accounts receivable are disclosed in the Company’s reports. These estimates are based upon the history and identified trends for each of our payers. Patient service revenue The Company recognizes patient service revenue associated with services provided to patients who have third-party payer coverage on the basis of contractual rates for the services provided. For uninsured or self-pay patients that do not qualify for charity care, the Company recognizes revenue on the basis of its standard rates for services provided (or on the basis of discounted rates, if negotiated or provided by policy). On the basis of historical experience, a portion of the Company’s patient service revenue may be potentially uncollectible due to patients who are unable or unwilling to pay for the services provided or the portion of their bill for which they are responsible. Thus, the Company records a provision for bad debts related to potentially uncollectible patient service revenue in the period the services are provided. |
Concentrations of credit risk | Concentrations of credit risk The CompanyÂ’s financial instruments that are exposed to a concentration of customer risk and accounts receivable risk. Occasionally, the CompanyÂ’s cash and cash equivalents in interest-bearing accounts may exceed FDIC insurance limits. The financial stability of these institutions is periodically reviewed by senior management. Revenues and accounts receivable are concentrated between two major payers with the approximate risk level outlined below. Concentration of Risk Three and six months ended June 30, 2017 2016 Revenue Concentration Medicare 35.0 % 30.0 % Commercial Payor 1 22.0 % 21.0 % June 30, Dec 31, 2017 2016 Receivable Concentration Medicare 34.6 % 27.0 % Commercial Payor 1 15.5 % 19.8 % Commercial Payor 2 12.4 % 11.9 % |
Accounts receivable | Accounts receivables As of June 30, 2017 and December 31, 2016, the CompanyÂ’s allowance for bad debts was $3,455,094 and $3,680,837, respectively. |
Net (loss) income per share | Net (loss) income per share Basic net (loss) income per common share is based upon the weighted-average number of common shares outstanding. Diluted net income per common share is based on the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding and computed as follows: Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Numerator: Net (loss) income $ (131,575) $ 153,137 $ 70,944 $ 9,720,078 Denominator: Weighted-average common shares, basic 26,843,848 23,862,943 26,549,810 23,374,625 Weighted-average common shares, diluted 26,843,848 27,196,277 27,349,810 26,707,959 Basic: $ (0.00) $ 0.01 $ 0.00 $ 0.42 Diluted: $ (0.00) $ 0.01 $ 0.00 $ 0.36 The diluted earnings per common share included the effect of 3,333,333 common shares issuable upon the conversion of debt for the three and six months ended June 30, 2016. The computation excludes potentially dilutive securities when their inclusion would be anti-dilutive, or if their exercise prices were greater than the average market price of the common stock during the period. Potentially dilutive common shares from convertible debt and from employee equity plans and issued warrants are determined by applying the treasury stock method to the assumed exercise of warrants and share options are were excluded from the computation of the diluted net income per share because their inclusion would be anti-dilutive. In addition, there were no vested restrict stock for periods presented. Potentially dilutive securities excluded from the basic and diluted net income per share are as follows: June 30, 2017 2016 Convertible line of credit 800,000 - Warrants to purchase common stock 1,875,000 4,324,630 Options to purchase common stock 3,000,000 3,000,000 Restricted stock awards 660,000 150.000 6,335,000 7,474,630 |
Treasury Stock | Treasury Stock The Company uses the cost method when it purchases its own common stock as treasury shares and displays treasury stock as a reduction of shareholdersÂ’ equity. |
Reclassification | Reclassification Certain reclassifications have been made to prior periodÂ’s data to conform to the current yearÂ’s presentation. These reclassifications had no effect on reported income or losses. |
Recent accounting pronouncements | Recent accounting pronouncements In May 2014, the FASB issued ASU 2014-09—Revenue from Contracts with Customers (Topic 606). The guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The FASB delayed the effective date to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. In addition, in March and April 2016, the FASB issued new guidance intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. Both amendments permit the use of either a retrospective or cumulative effect transition method and are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early application permitted. The Company is assessing the impact of this new standard on its financial statements and has not yet selected a transition method. In February 2016, the FASB issued ASU 2016-02—Leases (Topic 842), requiring lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases with the exception of short-term leases. For lessees, leases will continue to be classified as either operating or finance leases in the income statement. The effective date of the new standard for public companies is for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition and requires application of the new guidance at the beginning of the earliest comparative period presented. The Company is evaluating the effect that the updated standard will have on its financial statements and related disclosures. In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-15—Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 provides guidance for eight specific cash flow issues with respect to how cash receipts and cash payments are classified in the statements of cash flows, with the objective of reducing diversity in practice. The effective date for ASU 2016-15 is for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact of this new standard on its financial statements. In January 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-04, Intangibles – Goodwill and Other (Topic 350). The amendments in this update simplify the test for goodwill impairment by eliminating Step 2 from the impairment test, which required the entity to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining fair value of assets acquired and liabilities assumed in a business combination. The amendments in this update are effective for public companies for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We are evaluating the impact of adopting this guidance on our Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805); Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business to help companies evaluate whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The amendments in this update are effective for public companies for annual periods beginning after December 15, 2017, including interim periods within those periods. We are evaluating the impact of adopting this guidance on our Consolidated Financial Statements. |
Subsequent events | Subsequent events The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements, except as disclosed. |
SIGNIFICANT ACCOUNTING POLICI20
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Significant Accounting Policies Tables | |
Concentrations of credit risk | Concentration of Risk Three and six months ended June 30, 2017 2016 Revenue Concentration Medicare 35.0 % 30.0 % Commercial Payor 1 22.0 % 21.0 % June 30, Dec 31, 2017 2016 Receivable Concentration Medicare 34.6 % 27.0 % Commercial Payor 1 15.5 % 19.8 % Commercial Payor 2 12.4 % 11.9 % |
Net (loss) income per share | Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Numerator: Net (loss) income $ (131,575 ) $ 153,137 $ 70,944 $ 9,720,078 Denominator: Weighted-average common shares, basic 26,843,848 23,862,943 26,549,810 23,374,625 Weighted-average common shares, diluted 26,843,848 27,196,277 27,349,810 26,707,959 Basic: $ (0.00 ) $ 0.01 $ 0.00 $ 0.42 June 30, 2017 2016 Convertible line of credit 800,000 — Warrants to purchase common stock 1,875,000 4,324,630 Options to purchase common stock 3,000,000 3,000,000 Restricted stock awards 660,000 150.000 6,335,000 7,474,630 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Assets Tables | |
Schedule Of Other Assets | Other assets are comprised of the following: June 30, 2017 December 31, 2016 Goodwill (amount relating to VIE of $899,465) $ 899,465 $ 899,465 Deferred costs, net of amortization of $699,062 and $537,740 2,527,365 2,688,687 Patient list, net of accumulated amortization of $105,000 and $95,000 195,000 205,000 Patents, net of accumulated amortization of $66,850 and $57,300 219,650 229,200 Investments (amounts related to VIE of $22,005) 22,005 22,005 Deferred tax asset 181,029 181,029 Deposits 2,571 2,571 Total other assets $ 4,047,085 $ 4,227,957 |
STOCK OPTIONS, WARRANTS AND R22
STOCK OPTIONS, WARRANTS AND RESTRICTED STOCK UNITS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the restricted stock activity for the six months ended June 30, 2017: Restricted shares units issued as of December 31, 2016 660,000 Granted — Forfeited — Total Restricted Shares Issued at June 30, 2017 660,000 Vested at June 30, 2017 — Unvested restricted shares as of June 30, 2017 660,000 |
VARIABLE INTEREST ENTITY (Table
VARIABLE INTEREST ENTITY (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The tables below summarize the assets and liabilities associated with The B.A.C.K. Center as of June 30, 2017 and December 31, 2016: June 30, 2017 December 31, 2016 Current assets: Cash $ 608,790 $ 355,491 Accounts receivable 4,860,247 4,830,054 Other current assets 827,864 691,847 Total current assets 6,296,901 5,877,392 Property and equipment, net 75,245 70,444 Other assets 22,005 22,005 Total assets $ 6,394,151 $ 5,969,841 Current liabilities: Accounts payable and accrued liabilities $ 987,774 $ 904,684 Due to First Choice Healthcare Solutions, Inc. 3,159,066 2,867,539 Other current liabilities 677,447 677,446 Total current liabilities 4,824,287 4,449,669 Long term debt 1,708,550 1,658,858 Total liabilities 6,532,837 6,108,527 Non-controlling interest (138,686 ) (138,686 ) Total liabilities and deficit $ 6,394,151 $ 5,969,841 The tables below summarize the assets and liabilities associated with the Crane Creek as of June 30, 2017 and December 31, 2016: June 30, 2017 December 31, 2016 Current assets: Cash $ 313,182 $ 353,367 Accounts receivable 1,222,641 1,180,907 Other current assets 116,757 129,430 Total current assets 1,652,580 1,663,704 Property and equipment, net 578,647 623,185 Goodwill 899,465 899,465 Total assets $ 3,130,692 $ 3,186,354 Current liabilities: Accounts payable and accrued liabilities $ 635,366 $ 461,489 Other current liabilities 251,588 251,588 Total current liabilities 886,954 713,077 Deferred rent 557,645 556,051 Total liabilities 1,444,599 1,269,128 Equity-First Choice Healthcare Solutions, Inc. 674,438 766,891 Non-controlling interest 1,011,655 1,150,335 Total liabilities and deficit $ 3,130,692 $ 3,186,354 |
NON-CONTROLLING INTEREST (Table
NON-CONTROLLING INTEREST (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Non-controlling Interest Tables | |
Schedule of Net loss attributable to non-controlling interest | Net income attributable to non-controlling interest for the three months ended June 30, 2017: Net income $ 118,537 Average Non-controlling interest percentage of profit/losses -0- % Net income attributable to the non-controlling interest $ -0- Net income attributable to non-controlling interest for the six months ended June 30, 2017: Net income $ 289,379 Average Non-controlling interest percentage of profit/losses -0- % Net income attributable to the non-controlling interest $ -0- Net loss attributable to non-controlling interest for the three months ended June 30, 2016: Net income $ 133,258 Average Non-controlling interest percentage of profit/losses -0- % Net income attributable to the non-controlling interest $ -0- Net loss attributable to non-controlling interest for the six months ended June 30, 2016: Net income $ 461,999 Average Non-controlling interest percentage of profit/losses -0- % Net income attributable to the non-controlling interest $ -0- The following table summarizes the changes in non-controlling interest from December 31, 2016 through June 30, 2017: Balance, December 31, 2016 $ (138,686 ) Transfer (to) from the non-controlling interest as a result of change in ownership — Net income attributable to the non-controlling interest — Balance, June 30, 2017 $ (138,686 ) Net loss attributable to non-controlling interest for the three months ended June 30, 2017: Net loss $ (109,435 ) Average Non-controlling interest percentage of profit/losses 60 % Net income/loss attributable to the non-controlling interest $ (65,662 ) Net loss attributable to non-controlling interest for the six months ended June 30, 2017: Net loss $ (231,133 ) Average Non-controlling interest percentage of profit/losses 60 % Net income/loss attributable to the non-controlling interest $ (138,680 ) Net income attributable to non-controlling interest for the three months ended June 30, 2016: Net income $ 223,021 Average Non-controlling interest percentage of profit/losses 60 % Net income/loss attributable to the non-controlling interest $ 133,812 Net income attributable to non-controlling interest for the six months ended June 30, 2016: Net income $ 312,198 Average non-controlling interest percentage of profit/losses 60 % Net income/loss attributable to the non-controlling interest $ 187,319 The following table summarizes the changes in non-controlling interest from December 31, 2016 through June 30, 2017: Balance, December 31, 2016 1,150,335 Transfer (to) from the non-controlling interest as a result of change in ownership — Net income attributable to the non-controlling interest (138,680 ) Balance, June 30, 2017 $ 1,011,655 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Summary Statement of Loss for the three months ended June 30, 2017: FCID Brevard. Intercompany Medical Orthopaedic CCSC Corporate Eliminations Total Revenue: Net Patient Service Revenue $ 3,186,892 $ 3,195,773 $ 1,248,252 $ - $ - $ 7,630,917 Rental revenue - 343,687 443,267 (203,180) 583,774 Total Revenue 3,186,892 3,539,460 1,248,252 443,267 (203,180) 8,214,691 Operating expenses: Salaries & benefits 1,242,713 1,814,747 293,208 240,783 - 3,591,451 Other operating expenses 704,940 820,023 875,132 420,076 (188,348) 2,631,823 General and administrative 619,974 740,940 168,009 504,728 (14,832) 2,018,819 Depreciation and amortization 73,480 6,238 28,145 85,561 - 193,424 Total operating expenses 2,641,107 3,381,948 1,364,494 1,251,148 (203,180) 8,435,517 Net income (loss) from operations: 545,785 157,512 (116,242) (807,881) - (220,826) Interest income (expense) (24,743) (4,481) (473) (410) - (30,107) Other income (expense) - 45,667 7,279 750 - 53,696 Net Income (loss) before income taxes: 521,042 198,698 (109,436) (807,541) - (197,237) Income taxes - - - - Net income (loss) 521,042 198,698 (109,436) (807,541) - (197,237) Non-controlling interest - - 65,662 - - 65,662 Net income (loss) attributable to First Choice Healthcare Solutions $ 521,042 $ 198,698 $ (43,774) $ (807,541) $ - $ (131,575) Summary Statement of Loss for the six months ended June 30, 2017: FCID Brevard Medical Orthopaedic CCSC Corporate Total Revenue: Net Patient Service Revenue $ 6,047,878 $ 6,286,352 $ 2,438,677 $ - $ - $ 14,772,907 Rental revenue - 683,763 875,117 (396,743) 1,162,137 Total Revenue 6,047,878 6,970,115 2,438,677 875,117 (396,743) 15,935,044 Operating expenses: Salaries & benefits 2,337,949 3,533,464 591,507 482,907 6,945,827 Other operating expenses 1,296,091 1,676,505 1,727,254 828,937 (367,781) 5,161,006 General and administrative 1,145,283 1,379,738 304,363 754,230 (28,962) 3,554,652 Depreciation and amortization 143,221 12,400 56,294 170,997 - 382,912 Total operating expenses 4,922,544 6,602,107 2,679,418 2,237,071 (396,743) 16,044,397 Net income (loss) from operations: 1,125,334 368,008 (240,741) (1,361,954) - (109,353) Interest income (expense) (52,301) (8,385) (1,339) (156) - (62,181) Other income (expense) - 91,351 10,947 1,500 - 103,798 Net Income (Loss) before income taxes: 1,073,033 450,974 (231,133) (1,360,610) - (67,736) Income taxes - - - - Net income (Loss) 1,073,033 450,974 (231,133) (1,360,610) - (67,736) Non-controlling interest - - 138,680 - - 138,680 Net income (loss) attributable to First Choice Healthcare Solutions $ 1,073,033 $ 450,974 $ (92,453) $ (1,360,610) $ - $ 70,944 Summary Statement of Income for the three months ended June 30, 2016: FCID Brevard The Crane Intercompany Medical Orthopaedic Center Corporate Eliminations Total Revenue: Net Patient Service Revenue $ 2,377,400 $ 3,199,809 $ 1,446,053 $ - $ - $ 7,023,262 Rental revenue - 362,352 267,486 - 629,838 Total Revenue 2,377,400 3,562,161 1,446,053 267,486 - 7,653,100 Operating expenses: Salaries & benefits 871,446 1,762,710 314,056 190,830 - 3,139,042 Other operating expenses 327,576 854,934 830,261 415,539 - 2,428,310 General and administrative 321,823 769,315 125,893 463,776 - 1,680,807 Depreciation and amortization 67,907 5,701 (22,244) 85,436 - 136,800 Total operating expenses 1,588,752 3,392,660 1,247,966 1,155,581 - 7,384,959 Net income (loss) from operations: 788,648 169,501 198,087 (888,095) - 268,141 Interest income (expense) (54,805) (3,618) (1,361) 8,731 - (51,053) Amortization of financing costs - (329) - - - (329) Gain on sale of property - - 23,378 - - 23,378 Other income (expense) - 44,506 1,556 750 - 46,812 Net Income (loss) before income taxes: 733,843 210,060 221,660 (878,614) - 286,949 Income taxes - - - - Net income (loss) 733,843 210,060 221,660 (878,614) - 286,949 Non-controlling interest - - (133,812) - - (133,812) Net income (loss) attributable to First Choice Healthcare Solutions $ 733,843 $ 210,060 $ 87,848 $ (878,614) $ - $ 153,137 Summary Statement of Income for the six months ended June 30, 2016: FCID Brevard The Crane Intercompany Medical Orthopaedic Center Corporate Eliminations Total Revenue: Net Patient Service Revenue $ 4,686,335 $ 6,234,707 $ 2,717,361 $ - $ - $ 13,638,403 Rental revenue - 720,451 695,732 (159,733) 1,256,450 Total Revenue 4,686,335 6,955,158 2,717,361 695,732 (159,733) 14,894,853 Operating expenses: Salaries & benefits 1,700,666 3,220,621 607,393 390,931 - 5,919,611 Other operating expenses 858,983 1,713,235 1,539,907 521,493 (159,733) 4,473,885 General and administrative 683,626 1,492,807 235,168 816,782 - 3,228,383 Depreciation and amortization 134,699 11,216 49,012 240,823 - 435,750 Total operating expenses 3,377,974 6,437,879 2,431,480 1,970,029 (159,733) 14,057,629 Net income (loss) from operations: 1,308,361 517,279 285,881 (1,274,297) - 837,224 Interest income (expense) (111,623) (6,077) (10,087) (104,401) - (232,188) Amortization of financing costs - (1,317) - (14,337) - (15,654) Gain on sale of property - - 23,378 9,188,968 - 9,212,346 Other income (expense) - 101,231 2,938 1,500 - 105,669 Net Income (loss) before income taxes: 1,196,738 611,116 302,110 7,797,433 - 9,907,397 Income taxes - - - - Net income (loss) 1,196,738 611,116 302,110 7,797,433 - 9,907,397 Non-controlling interest - - (187,319) - - (187,319) Net income (loss) attributable to First Choice Healthcare Solutions $ 1,196,738 $ 611,116 $ 114,791 $ 7,797,433 $ - $ 9,720,078 |
BASIS OF PRESENTATION (Details
BASIS OF PRESENTATION (Details Textual) - $ / shares | 4 Months Ended | 6 Months Ended | 9 Months Ended |
May 01, 2015 | Jun. 30, 2017 | Oct. 01, 2015 | |
Options issued to purchase the Company's common stock | 3,000,000 | ||
Stock Purchase Price | $ 1.35 | ||
B.A.C.K. Center [Member] | |||
Options issued to purchase the Company's common stock | 3,000,000 | ||
Stock Purchase Price | $ 1.35 | ||
Crane Creek Surgery Center One [Member] | |||
Voting Rights, Description | In connection with the investment, the Company is entitled to 51% voting rights for all decisions that most significantly affect the economic performance of Crane Creek. The 40% equity interest acquired entitles the Company to 40% of the profit or loss of Crane Creek | ||
Crane Creek Surgery Center [Member] | |||
Bearing interest rate | 40.00% | ||
Voting Rights, Description | In connection with the investment, the Company is entitled to 51% voting rights for all decisions that most significantly affect the economic performance of Crane Creek. The 40% equity interest acquired entitles the Company to 40% of the profit or loss of Crane Creek |
SIGNIFICANT ACCOUNTING POLICI27
SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Revenue Concentration | ||||
Medicare | 35.00% | 30.00% | ||
Commercial Payor 1 | 22.00% | 21.00% | ||
Receivable Concentration | ||||
Medicare | 34.60% | 27.00% | ||
Commercial Payor 1 | 15.50% | 19.80% | ||
Commercial Payor 2 | 12.40% | 11.90% |
SIGNIFICANT ACCOUNTING POLICI28
SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator: | ||||
Net income | $ (131,575) | $ 153,137 | $ 70,944 | $ 9,720,078 |
Denominator: | ||||
Weighted-average common shares, basic | 26,843,848 | 23,862,943 | 26,549,810 | 23,374,625 |
Weighted-average common shares, diluted | 26,843,848 | 27,196,277 | 27,349,810 | 26,707,959 |
Basic: | $ 0 | $ 0.01 | $ 0 | $ 0.42 |
SIGNIFICANT ACCOUNTING POLICI29
SIGNIFICANT ACCOUNTING POLICIES (Details 2) - shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share | 6,335,000 | 7,474,630 |
Convertible notes and line of credit [Member] | ||
Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share | 800,000 | 0 |
Warrants to purchase common stock [Member] | ||
Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share | 1,875,000 | 4,324,630 |
Restricted stock awards [Member] | ||
Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share | 3,000,000 | 150 |
Options to purchase common stock [Member] | ||
Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share | 660,000 | 3,000,000 |
SIGNIFICANT ACCOUNTING POLICI30
SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||||
Allowance for Doubtful Accounts Receivable | $ 3,455,094 | $ 3,680,837 | ||
Conversion of debt | $ 3,333,333 | $ 3,333,333 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Other Assets Details | ||
Goodwill (amount relating to VIE of $899,465) | $ 899,465 | $ 899,465 |
Deferred costs, net of amortization of $618,401 and $537,740 | 2,527,365 | 2,688,687 |
Patient list, net of accumulated amortization of $100,000 and $95,000 | 195,000 | 205,000 |
Patents, net of accumulated amortization of $62,075 and $57,300 | 219,650 | 229,200 |
Investments (amounts related to VIE of $22,005) | 22,005 | 22,005 |
Deferred tax asset | 181,029 | 181,029 |
Deposits | 2,571 | 2,571 |
Total other assets | $ 4,047,085 | $ 4,227,957 |
LINES OF CREDIT (Details Textua
LINES OF CREDIT (Details Textual) - USD ($) | Dec. 14, 2015 | Jun. 13, 2013 | Apr. 09, 2013 | Jun. 27, 2012 | Jun. 30, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | ||||||
Line Of Credit Facility, Amount Outstanding | $ 2,000,000 | $ 1,100,000 | $ 600,000 | |||
Debt Instrument, Term | 60 days | |||||
Line of Credit Facility, Average Outstanding Amount | $ 439,524 | |||||
Matures date | Apr. 1, 2016 | |||||
Shares issued convertible debt, Amount | $ 2,236,907 | |||||
CT Capital LTD [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Short-term Debt, Maximum Amount Outstanding During Period | $ 2,500,000 | |||||
Line of Credit Facility, Collateral | The advance rate is defined as: 80% of all receivables to be 120 days or less at the net collection rate of approximately 27% of total billings, excluding patient billings and collections. Additionally, allowable accounts receivable will also include 50% of all accounts receivable protected by legal letters of protection. | |||||
Debt Instrument, Convertible, Terms of Conversion Feature | Lender may convert all or any portion of the outstanding principal amount or interest on the Loan into common stock of the Company at a conversion price of $0.75 per share. | |||||
Debt Instrument, Interest Rate During Period | 6.00% | |||||
Line Of Credit Facility, Amount Outstanding | $ 1,100,000 | |||||
Matures date | Jun. 30, 2017 | Jun. 30, 2018 | ||||
TBC Equipment Leasing, LLC member [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of Credit Facility, Increase (Decrease), Other, Net | $ 995,000 | |||||
Debt Instrument, Term | 45 days | |||||
Line of Credit Facility, Average Outstanding Amount | $ 1,000,000 | |||||
Line of Credit, Florida Business Bank [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line Of Credit Facility, Amount Outstanding | $ 1,400,000 | |||||
Line of Credit Facility, Covenant Terms | The advance rate is defined as: 60% of eligible accounts receivables. Eligible receivables include all Medicare and Medicaid receivables less than 90 days old multiplied by a factor of 0.25, plus all other receivables less than 90 days old multiplied by a factor of 0.50. As of June 30, 2017, The B.A.C.K. Center had not violated the loan covenants. | |||||
Line Of Credit Guaranteed Amount | $ 950,000 | |||||
Line of Credit Facility, Average Outstanding Amount | $ 439,524 | |||||
Accounts Receivable [Member] | Line of Credit, Florida Business Bank [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Interest Rate During Period | 1.00% | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,383,000 | |||||
Line of Credit Facility, Interest Rate Description | interest rate of Prime floating plus 1.0%, as published in The Wall Street Journal, with a floor of 2.75% per annum (the Loan). | |||||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | $ 1,383,000 |
CAPITAL STOCK (Details Textual)
CAPITAL STOCK (Details Textual) | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Common Stock, Shares, Issued for Services Amount | $ 198,373 |
Stock Issued During Period, Shares, Conversion of Convertible Securities | shares | 1,866,667 |
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 1,400,000 |
Shares purchased Value | $ (49,954) |
Shares purchased | shares | 32,388 |
Share Price | $ / shares | $ 1.54 |
Employee Stock Option [Member] | |
Common Stock, Shares, Issued for Services | shares | 306,000 |
Common Stock, Shares, Issued for Services Amount | $ 301,840 |
STOCK OPTIONS, WARRANTS AND R34
STOCK OPTIONS, WARRANTS AND RESTRICTED STOCK UNITS (Details) - Restricted Stock [Member] | 6 Months Ended |
Jun. 30, 2017shares | |
Restricted shares units issued as of December 31, 2016 | 660,000 |
Number of Shares, Granted | 0 |
Number of Shares, Forfeited | 0 |
Number of Shares, Outstanding | 660,000 |
Vested at March 31, 2017 | 0 |
Unvested restricted shares as of March 31, 2017 | 660,000 |
STOCK OPTIONS, WARRANTS AND R35
STOCK OPTIONS, WARRANTS AND RESTRICTED STOCK UNITS (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Fair value restricted stock vesting | $ 63,324 | $ 0 | $ 126,647 | $ 0 |
Stock based compensation related to restricted stock | $ 425,506 | |||
Weighted average remaining period | 1 year 10 months 17 days | |||
Probability the performance | 100.00% |
VARIABLE INTEREST ENTITY (Detai
VARIABLE INTEREST ENTITY (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||||
Cash | $ 3,242,006 | $ 4,593,638 | $ 7,785,602 | $ 1,594,998 |
Accounts receivable | 10,855,735 | 9,536,830 | ||
Total current assets | 15,784,472 | 15,373,321 | ||
Property and equipment, net | 2,540,364 | 2,544,816 | ||
Other assets | 4,047,085 | 4,227,957 | ||
Total assets | 22,371,921 | 22,146,094 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 2,221,316 | 2,083,231 | ||
Total current liabilities | 4,753,272 | 4,839,683 | ||
Total liabilities | 7,208,234 | 7,189,738 | ||
Non-controlling interest | 872,969 | 1,011,649 | ||
Total liabilities and deficit | 22,371,921 | 22,146,094 | ||
B.A.C.K. Center [Member] | ||||
Current assets: | ||||
Cash | 608,790 | 355,491 | ||
Accounts receivable | 4,860,247 | 4,830,054 | ||
Other current assets | 827,864 | 691,847 | ||
Total current assets | 6,296,901 | 5,877,392 | ||
Property and equipment, net | 75,245 | 70,444 | ||
Other assets | 22,005 | 22,005 | ||
Total assets | 6,394,151 | 5,969,841 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 987,774 | 904,684 | ||
Due to First Choice Healthcare Solutions, Inc. | 3,159,066 | 2,867,539 | ||
Other current liabilities | 677,447 | 677,446 | ||
Total current liabilities | 4,824,287 | 4,449,669 | ||
Long term debt | 1,708,550 | 1,658,858 | ||
Total liabilities | 6,532,837 | 6,108,527 | ||
Non-controlling interest | (138,686) | (138,686) | ||
Total liabilities and deficit | $ 6,394,151 | $ 5,969,841 |
VARIABLE INTEREST ENTITY (Det37
VARIABLE INTEREST ENTITY (Details 1) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||||
Cash | $ 3,242,006 | $ 4,593,638 | $ 7,785,602 | $ 1,594,998 |
Accounts receivable | 10,855,735 | 9,536,830 | ||
Total current assets | 15,784,472 | 15,373,321 | ||
Property and equipment, net | 2,540,364 | 2,544,816 | ||
Goodwill | 899,465 | 899,465 | ||
Total assets | 22,371,921 | 22,146,094 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 2,221,316 | 2,083,231 | ||
Total current liabilities | 4,753,272 | 4,839,683 | ||
Deferred rent | 2,397,337 | 2,293,594 | ||
Total liabilities | 7,208,234 | 7,189,738 | ||
Equity-First Choice Healthcare Solutions, Inc | 26,971 | 24,631 | ||
Non-controlling interest | 872,969 | 1,011,649 | ||
Total liabilities and deficit | 22,371,921 | 22,146,094 | ||
Crane Creek Surgery Center [Member] | ||||
Current assets: | ||||
Cash | 313,182 | 353,367 | ||
Accounts receivable | 1,222,641 | 1,180,907 | ||
Other current assets | 116,757 | 129,430 | ||
Total current assets | 1,652,580 | 1,663,704 | ||
Property and equipment, net | 578,647 | 623,185 | ||
Goodwill | 899,465 | 899,465 | ||
Total assets | 3,130,692 | 3,186,354 | ||
Current liabilities: | ||||
Accounts payable and accrued liabilities | 635,366 | 461,489 | ||
Other current liabilities | 251,588 | 251,588 | ||
Total current liabilities | 886,954 | 713,077 | ||
Deferred rent | 557,645 | 556,051 | ||
Total liabilities | 1,444,599 | 1,269,128 | ||
Equity-First Choice Healthcare Solutions, Inc | 674,438 | 766,891 | ||
Non-controlling interest | 1,011,655 | 1,150,335 | ||
Total liabilities and deficit | $ 3,130,692 | $ 3,186,354 |
VARIABLE INTEREST ENTITY (Det38
VARIABLE INTEREST ENTITY (Details Textual) - USD ($) | 3 Months Ended | 4 Months Ended | 6 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | May 01, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Oct. 01, 2015 | |
Options issued to purchase the Company's common stock | 3,000,000 | |||||
Total revenues | $ 8,214,691 | $ 7,653,100 | $ 9,789,366 | $ 15,935,044 | $ 14,894,853 | |
Salaries and benefits | 3,591,451 | 3,139,042 | 4,084,312 | 6,945,827 | 5,919,611 | |
Operating expenses | 8,435,517 | 7,384,959 | 16,044,397 | 14,057,629 | ||
General and administrative expenses | 2,018,819 | 1,680,807 | 3,928,244 | 3,554,652 | 3,228,383 | |
Depreciation | 18,404 | |||||
Interest and financing costs | (30,107) | (51,053) | $ 28,524 | (62,181) | (232,188) | |
Other income (expense) | 53,696 | 46,812 | $ 103,798 | 105,669 | ||
Matures date | Apr. 1, 2016 | |||||
Stock Purchase Price | $ 1.35 | |||||
B.A.C.K. Center [Member] | ||||||
Options issued to purchase the Company's common stock | 3,000,000 | |||||
Total revenues | 3,539,460 | 3,562,161 | $ 6,970,115 | 6,955,158 | ||
Salaries and benefits | 1,814,747 | 1,762,710 | 3,533,464 | 3,220,621 | ||
Operating expenses | 820,023 | 782,619 | 1,676,505 | 1,564,117 | ||
General and administrative expenses | 821,101 | 769,315 | 1,541,333 | 1,492,807 | ||
Depreciation | 6,238 | 5,701 | 12,400 | 11,216 | ||
Interest and financing costs | 4,481 | 3,947 | 8,385 | 7,394 | ||
Other income (expense) | 45,667 | 44,506 | $ 91,351 | 101,231 | ||
Stock Purchase Price | $ 1.35 | |||||
Crane Creek Surgery Center [Member] | ||||||
Total revenues | 1,248,252 | 1,446,053 | $ 2,438,677 | 2,717,361 | ||
Salaries and benefits | 293,208 | 314,056 | 591,507 | 607,393 | ||
Operating expenses | 875,132 | 830,261 | 1,727,254 | 1,539,907 | ||
General and administrative expenses | 168,009 | 125,893 | 304,363 | 235,168 | ||
Depreciation | 28,145 | (22,244) | 56,294 | 49,012 | ||
Interest and financing costs | 23,378 | 23,378 | ||||
Interest expense | 473 | 1,361 | 1,339 | 10,087 | ||
Miscellaneous income | $ 7,279 | $ 1,556 | 10,947 | $ 2,938 | ||
Bearing interest rate | 40.00% | |||||
Matures date | Apr. 15, 2016 | |||||
Voting Rights, Description | In connection with the investment, the Company is entitled to 51% voting rights for all decisions that most significantly affect the economic performance of Crane Creek. The 40% equity interest acquired entitles the Company to 40% of the profit or loss of Crane Creek | |||||
Gain on sale of equipment | $ 18,878 | |||||
Crane Creek Surgery Center One [Member] | ||||||
Matures date | Apr. 15, 2016 | |||||
Voting Rights, Description | In connection with the investment, the Company is entitled to 51% voting rights for all decisions that most significantly affect the economic performance of Crane Creek. The 40% equity interest acquired entitles the Company to 40% of the profit or loss of Crane Creek |
NON-CONTROLLING INTEREST (Detai
NON-CONTROLLING INTEREST (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net income loss attributable to the non-controlling interest | $ 65,662 | $ (133,812) | $ 138,680 | $ (187,319) |
B.A.C.K. Center [Member] | ||||
Net income | $ 118,537 | $ 133,258 | $ 289,379 | $ 461,999 |
Average Non-controlling interest percentage of profit/losses | 0.00% | 0.00% | 0.00% | 0.00% |
Net income loss attributable to the non-controlling interest | $ 0 | $ 0 | $ 0 | $ 0 |
CCSC HoldingsInc [Member] | ||||
Net income | $ (109,435) | $ 223,021 | $ (231,133) | $ 312,198 |
Average Non-controlling interest percentage of profit/losses | 60.00% | 60.00% | 60.00% | 60.00% |
Net income loss attributable to the non-controlling interest | $ (65,662) | $ 133,812 | $ (138,680) | $ 187,319 |
NON-CONTROLLING INTEREST (Det40
NON-CONTROLLING INTEREST (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Balance, December 31, 2016 | $ 1,011,649 | |||
Net income loss attributable to the non-controlling interest | $ 65,662 | $ (133,812) | 138,680 | $ (187,319) |
Balance, March 31, 2017 | 872,969 | 872,969 | ||
B.A.C.K. Center [Member] | ||||
Balance, December 31, 2016 | (138,686) | |||
Transfer (to) from the non-controlling interest as a result of change in ownership | 0 | |||
Net income loss attributable to the non-controlling interest | 0 | 0 | 0 | 0 |
Balance, March 31, 2017 | (138,686) | (138,686) | ||
CCSC HoldingsInc [Member] | ||||
Balance, December 31, 2016 | 1,150,335 | |||
Transfer (to) from the non-controlling interest as a result of change in ownership | 0 | |||
Net income loss attributable to the non-controlling interest | (65,662) | $ 133,812 | (138,680) | $ 187,319 |
Balance, March 31, 2017 | 1,011,655 | 1,011,655 | ||
Crane Creek Surgery Center [Member] | ||||
Balance, December 31, 2016 | 1,150,335 | |||
Balance, March 31, 2017 | $ 1,011,655 | $ 1,011,655 |
NON-CONTROLLING INTEREST (Det41
NON-CONTROLLING INTEREST (Details Textual) - $ / shares | 4 Months Ended | 6 Months Ended | 9 Months Ended |
May 01, 2015 | Jun. 30, 2017 | Oct. 01, 2015 | |
Matures date | Apr. 1, 2016 | ||
Options issued to purchase the Company's common stock | 3,000,000 | ||
Stock Purchase Price | $ 1.35 | ||
B.A.C.K. Center [Member] | |||
Options issued to purchase the Company's common stock | 3,000,000 | ||
Stock Purchase Price | $ 1.35 | ||
Crane Creek Surgery Center One [Member] | |||
Matures date | Apr. 15, 2016 | ||
Voting Rights, Description | In connection with the investment, the Company is entitled to 51% voting rights for all decisions that most significantly affect the economic performance of Crane Creek. The 40% equity interest acquired entitles the Company to 40% of the profit or loss of Crane Creek | ||
Crane Creek Surgery Center [Member] | |||
Matures date | Apr. 15, 2016 | ||
Voting Rights, Description | In connection with the investment, the Company is entitled to 51% voting rights for all decisions that most significantly affect the economic performance of Crane Creek. The 40% equity interest acquired entitles the Company to 40% of the profit or loss of Crane Creek |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) | 3 Months Ended | 4 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | May 01, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue: | |||||
Net patient service revenue | $ 7,630,917 | $ 7,023,262 | $ 14,772,907 | $ 13,638,403 | |
Rental revenue | 583,774 | 629,838 | 1,162,137 | 1,256,450 | |
Total revenue | 8,214,691 | 7,653,100 | $ 9,789,366 | 15,935,044 | 14,894,853 |
Operating expenses: | |||||
Salaries & benefits | 3,591,451 | 3,139,042 | 4,084,312 | 6,945,827 | 5,919,611 |
Other operating expenses | 2,631,823 | 2,428,310 | 5,161,006 | 4,473,885 | |
General and administrative | 2,018,819 | 1,680,807 | 3,928,244 | 3,554,652 | 3,228,383 |
Depreciation and amortization | 193,424 | 136,800 | 382,912 | 435,750 | |
Total operating expenses | 8,435,517 | 7,384,959 | 16,044,397 | 14,057,629 | |
Net income (loss) from operations: | (220,826) | 268,141 | (109,353) | 837,224 | |
Interest income (expense) | (30,107) | (51,053) | $ 28,524 | (62,181) | (232,188) |
Amortization of financing costs | 329 | 15,654 | |||
Gain on sale of property | 9,212,346 | 9,212,346 | |||
Other income (expense) | 53,696 | 46,812 | 103,798 | 105,669 | |
Net Income (loss) before income taxes: | (197,237) | 286,949 | (67,736) | 9,907,397 | |
Income taxes | |||||
Net income (loss) | (197,237) | 286,949 | (67,736) | 9,907,397 | |
Non-controlling interest | 65,662 | (133,812) | 138,680 | (187,319) | |
Net income (loss) attributable to First Choice Healthcare Solutions | (131,575) | 153,137 | 70,944 | 9,720,078 | |
FCID Medical [Member] | |||||
Revenue: | |||||
Net patient service revenue | 3,186,892 | 4,686,335 | 6,047,878 | 4,686,335 | |
Rental revenue | |||||
Total revenue | 3,186,892 | 4,686,335 | 6,047,878 | 4,686,335 | |
Operating expenses: | |||||
Salaries & benefits | 1,242,713 | 1,700,666 | 2,337,949 | 1,700,666 | |
Other operating expenses | 704,940 | 858,983 | 1,296,091 | 858,983 | |
General and administrative | 619,974 | 683,626 | 1,145,283 | 683,626 | |
Depreciation and amortization | 73,480 | 134,699 | 143,221 | 134,699 | |
Total operating expenses | 2,641,107 | 3,377,974 | 4,922,544 | 3,377,974 | |
Net income (loss) from operations: | 545,785 | 1,308,361 | 1,125,334 | 1,308,361 | |
Interest income (expense) | (24,743) | (111,623) | (52,301) | (111,623) | |
Amortization of financing costs | |||||
Gain on sale of property | |||||
Other income (expense) | |||||
Net Income (loss) before income taxes: | 521,042 | 1,196,738 | 1,073,033 | 1,196,738 | |
Income taxes | |||||
Net income (loss) | 521,042 | 1,196,738 | 1,073,033 | 1,196,738 | |
Non-controlling interest | |||||
Net income (loss) attributable to First Choice Healthcare Solutions | 521,042 | 1,196,738 | 1,073,033 | 1,196,738 | |
Brevard Orthopaedic [Member] | |||||
Revenue: | |||||
Net patient service revenue | 3,195,773 | 6,234,707 | 6,286,352 | 6,234,707 | |
Rental revenue | 343,687 | 720,451 | 683,763 | 720,451 | |
Total revenue | 3,539,460 | 6,955,158 | 6,970,115 | 6,955,158 | |
Operating expenses: | |||||
Salaries & benefits | 1,814,747 | 3,220,621 | 3,533,464 | 3,220,621 | |
Other operating expenses | 820,023 | 1,713,235 | 1,676,505 | 1,713,235 | |
General and administrative | 740,940 | 1,492,807 | 1,379,738 | 1,492,807 | |
Depreciation and amortization | 6,238 | 11,216 | 12,400 | 11,216 | |
Total operating expenses | 3,381,948 | 6,437,879 | 6,602,107 | 6,437,879 | |
Net income (loss) from operations: | 157,512 | 517,279 | 368,008 | 517,279 | |
Interest income (expense) | (4,481) | (6,077) | (8,385) | (6,077) | |
Amortization of financing costs | (1,317) | (1,317) | |||
Gain on sale of property | |||||
Other income (expense) | 45,667 | 101,231 | 91,351 | 101,231 | |
Net Income (loss) before income taxes: | 198,698 | 611,116 | 450,974 | 611,116 | |
Net income (loss) | 198,698 | 611,116 | 450,974 | 611,116 | |
Non-controlling interest | |||||
Net income (loss) attributable to First Choice Healthcare Solutions | 198,698 | 611,116 | 450,974 | 611,116 | |
The Crane Center [Member] | |||||
Revenue: | |||||
Net patient service revenue | 1,248,252 | 2,717,361 | 2,438,677 | 2,717,361 | |
Total revenue | 1,248,252 | 2,717,361 | 2,438,677 | 2,717,361 | |
Operating expenses: | |||||
Salaries & benefits | 293,208 | 607,393 | 591,507 | 607,393 | |
Other operating expenses | 875,132 | 1,539,907 | 1,727,254 | 1,539,907 | |
General and administrative | 168,009 | 235,168 | 304,363 | 235,168 | |
Depreciation and amortization | 28,145 | 49,012 | 56,294 | 49,012 | |
Total operating expenses | 1,364,494 | 2,431,480 | 2,679,418 | 2,431,480 | |
Net income (loss) from operations: | (116,242) | 285,881 | (240,741) | 285,881 | |
Interest income (expense) | (473) | (10,087) | (1,339) | (10,087) | |
Amortization of financing costs | |||||
Gain on sale of property | 23,378 | 23,378 | |||
Other income (expense) | 7,279 | 2,938 | 10,947 | 2,938 | |
Net Income (loss) before income taxes: | (109,436) | 302,110 | (231,133) | 302,110 | |
Net income (loss) | (109,436) | 302,110 | (231,133) | 302,110 | |
Non-controlling interest | 65,662 | (187,319) | 138,680 | (187,319) | |
Net income (loss) attributable to First Choice Healthcare Solutions | (43,774) | 114,791 | (92,453) | 114,791 | |
Corporate [Member] | |||||
Revenue: | |||||
Net patient service revenue | |||||
Rental revenue | 443,267 | 695,732 | 875,117 | 695,732 | |
Total revenue | 443,267 | 695,732 | 875,117 | 695,732 | |
Operating expenses: | |||||
Salaries & benefits | 240,783 | 390,931 | 482,907 | 390,931 | |
Other operating expenses | 420,076 | 521,493 | 828,937 | 521,493 | |
General and administrative | 504,728 | 816,782 | 754,230 | 816,782 | |
Depreciation and amortization | 85,561 | 240,823 | 170,997 | 240,823 | |
Total operating expenses | 1,251,148 | 1,970,029 | 2,237,071 | 1,970,029 | |
Net income (loss) from operations: | (807,881) | (1,274,297) | (1,361,954) | (1,274,297) | |
Interest income (expense) | (410) | (104,401) | (156) | (104,401) | |
Amortization of financing costs | (14,337) | (14,337) | |||
Gain on sale of property | 9,188,968 | 9,188,968 | |||
Other income (expense) | 750 | 1,500 | 1,500 | 1,500 | |
Net Income (loss) before income taxes: | (807,541) | 7,797,433 | (1,360,610) | 7,797,433 | |
Income taxes | |||||
Net income (loss) | (807,541) | 7,797,433 | (1,360,610) | 7,797,433 | |
Non-controlling interest | |||||
Net income (loss) attributable to First Choice Healthcare Solutions | (807,541) | 7,797,433 | (1,360,610) | 7,797,433 | |
Intercompanyt Elimination [Member] | |||||
Revenue: | |||||
Net patient service revenue | |||||
Rental revenue | (203,180) | (159,733) | (396,743) | (159,733) | |
Total revenue | (203,180) | (159,733) | (396,743) | (159,733) | |
Operating expenses: | |||||
Salaries & benefits | |||||
Other operating expenses | (188,348) | (159,733) | (367,781) | (159,733) | |
General and administrative | (14,832) | (28,962) | |||
Depreciation and amortization | |||||
Total operating expenses | (203,180) | (159,733) | (396,743) | (159,733) | |
Net income (loss) from operations: | |||||
Interest income (expense) | |||||
Amortization of financing costs | |||||
Gain on sale of property | |||||
Other income (expense) | |||||
Net Income (loss) before income taxes: | |||||
Income taxes | |||||
Net income (loss) | |||||
Non-controlling interest | |||||
Net income (loss) attributable to First Choice Healthcare Solutions |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - Subsequent Event [Member] | 1 Months Ended |
Jul. 21, 2017USD ($)$ / sharesshares | |
Treasury returned shares | 142,500 |
Stock Award to Employee | 11,100 |
Performance Award | $ | $ 25,000 |
Repurchase Plan, Shares | 62,438 |
Repurchase Plan, Amount | $ | $ 93,824 |
Repurchase plan purchase price | $ / shares | $ 1.50 |
Total aggregate, Amount | $ | $ 143,722 |
Total aggregate, Shares | 94,826 |
Total Aggregate Purchase Price | $ / shares | $ 1.52 |