DLT Resolution (DLTI) 10-Q 22 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 22, 2017
Document And Entity Information
Entity Registrant Name	HEMCARE HEALTH SERVICES INC.
Entity Central Index Key	1,420,368
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	Yes
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		214,312,211
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017

Balance Sheets

Balance Sheets - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current assets
Intangible assets	$ 40,000
Total assets	40,000
Current liabilities
Bank overdraft	7	7
Accounts payable and accrued liabilities	79,360	38,772
Dividends payable	25,448	25,448
Related party payables	42,692	39,599
Current notes payables	81,500	332,100
Convertible notes payable, net of discounts of $0 and $6,916		23,784
Related party convertible notes payable, net of discounts $0 and $0		2,634
Total current liabilities	229,007	462,344
Stockholders' deficit
Common stock, $0.001 par value; 275,000,000 shares authorized; 214,692,211 and 273,332,211 issued; 214,312,211 and 272,952,211 outstanding at March 31, 2017 and December 31, 2016	214,692	273,332
Additional paid in capital	2,925,046	2,613,165
Other comprehensive income	24	24
Treasury stock, 380,000 shares	(100)	(100)
Accumulated deficit	(3,328,669)	(3,348,765)
Total stockholders' deficit	(189,007)	(462,344)
Total liabilities and stockholders' deficit	40,000
Series A convertible preferred Stock [Member]
Stockholders' deficit
Series A convertible preferred stock, $1.00 par value; 5,000,000 shares authorized, none issued or outstanding

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current liabilities
Convertible notes payable, net of discounts	$ 0	$ 6,916
Convertible notes payable, net of discounts related parties	$ 0	$ 0
Stockholders' deficit
Common stock; par value	$ 0.001	$ 0.001
Common stock; shares authorized	275,000,000	275,000,000
Common stock; shares issued	214,692,211	273,332,211
Common stock; shares outstanding	214,312,211	272,952,211
Treasury stock shares	380,000	380,000
Series A convertible preferred Stock [Member]
Stockholders' deficit
Convertible preferred stock; par value	$ 1	$ 1
Convertible preferred stock; shares authorized	5,000,000	5,000,000
Convertible preferred stock; shares issued	0	0
Convertible preferred stock; shares outstanding	0	0
Common stock; shares issued		131,170,000

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statements Of Operations
Revenue
Operating expenses
General and administrative	468	4,236
Professional fees	2,022	4,420
Total operating expenses	2,490	8,656
Other income (expense)
Other income	26,306
Interest expense	(3,720)	(18,139)
Total other income (expense)	22,586	(18,139)
Net income (loss)	20,096	(26,795)
Preferred stock dividends declared		(2,429)
Net income (loss) attributable to common shareholders	$ 20,096	$ (29,224)
Basic and diluted income (loss) per common share	$ 0	$ 0
Weighted average shares outstanding	233,858,878	141,782,211

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities
Net income (loss) from operations	$ 20,096	$ (26,795)
Adjustments to reconcile net loss to net cash used in operating activities
Forgiveness of debt	(26,306)
Amortization of debt discounts		10,102
Expenses paid on behalf of the company by related parties	468
Changes in operating assets and liabilities
Prepaid expenses		748
Accounts payable and accrued liabilities	5,742	7,192
Net cash used in operating activities		(8,753)
Net cash used in investing activities
Cash flows from financing activities
Repayments of related party convertible notes payable		(5,700)
Repayments of convertible notes payable		(2,500)
Net cash used in financing activities		(8,200)
Net change in cash		(16,953)
Cash at beginning of period		20,334
Cash at end of period		3,381
Supplemental cash flow information
Cash paid for interest
Cash paid for income taxes
Non-cash investing and financing activities
Forgiveness of related party convertible note payable	2,634
Forgiveness of related party interest payable	606
Forgiveness of convertible note payable	23,783
Forgiveness of note payable	600
Forgiveness of interest payable	1,923
Common shares issued in exchange for note payable principal	250,000
Purchase of intangible asset for account payable	40,000
Preferred dividend declared		$ 2,429

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Note 1 - Basis of Presentation	The accompanying unaudited interim financial statements of Hemcare Health Services Inc. (formerly NSU Resources, Inc.) (collectively referred to herein as “Hemcare Health Services”, “Hemcare”, or the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements for the period ended December 31, 2016 and notes thereto contained in the Company’s Form 10-K filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for fiscal 2016 as reported in the form 10-K have been omitted.

Going Concern

Going Concern	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Note 2 - Going Concern	The Company had an accumulated deficit of $3,328,669 and a working capital deficit of $229,007 as of March 31, 2017 and had no revenues. These matters raise substantial doubt about the Company’s ability to continue as a going concern. Continuation of the Company’s existence depends upon its ability to obtain additional capital. Management’s plans in regards to this matter include raising additional equity financing and borrowing funds under a private credit facility and/or other credit sources. These financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Note 3 - Significant Accounting Policies	Use of Estimates The preparation of financial statements, in conformity with generally accepted accounting principles in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. Prior Period Conformity The Company has reclassified balances in the prior period financial statements for conformity with the current period for comparison purposes. Income Taxes The Company accounts for income taxes under the asset and liability method, where deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. At March 31, 2017, there were no uncertain tax positions that require accrual. Intangible Asset During the three months ended March 31, 2017, the Company entered into an agreement whereby a third party would build a web portal as part of executing our business plan. Through March 31, 2017, we had incurred $40,000 of costs to build the portal which are included in accounts payable as of March 31. The portal has yet to be launched and as such there has been no amortization recorded or impairment as of March 31, 2017. Net Income (Loss) Per Share Basic loss per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. There were no potentially dilutive instruments outstanding at March 31, 2017. Because of the net loss incurred during the three months ended March 31, 2016, the impacts of dilutive instruments would have been anti-dilutive for the period presented and have been excluded from loss per share calculations. Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Note 4 - Related Party Transactions	No salaries were paid to directors or executives during the periods ended March 31, 2017 or 2016. On January 31, 2017, the Company entered into a mutual release agreement with a related party with which there was an outstanding convertible note of $2,634 and outstanding accrued interest of $1,923. The agreement forgave the outstanding payables and they were written to $0 against additional paid in capital on the date of the agreement. During the three months ended March 31, 2017, a related party paid $468 of expenses and $2,625 of outstanding payables on behalf of the company. The advances are due on demand and are included in current liabilities as a result. There was $42,692 and $39,599 due to related parties as of March 31, 2017 and December 31, 2016.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Note 5 - Stockholders' Equity	Series A Convertible Preferred Stock There were 0 shares of series A convertible preferred stock issued and outstanding as of March 31, 2017 and December 31, 2016. Additionally, the Company had accrued dividends payable on series A convertible preferred stock totaling $25,448 at March 31, 2017 and December 31, 2016. Common Stock On March 2, 2015, the Company effected a 1:50 reverse stock split. The effects of the reverse split are shown retroactively in these financial statements. The authorized common stock of the Company consists of 275,000,000 shares and carries a par value of $0.001. During the year ended December 31, 2014, the Company bought back 380,000 post-split shares of common stock into treasury from a former officer for $100. The shares are being carried as treasury shares as reflected on the balance sheet. During the year ended December 31, 2016, the Company issued 131,170,000 common shares for the conversion of 131,170 shares of Series A Preferred Stock. There was no gain or loss on this conversion During the three months ended March 31, 2017, the Company entered into agreements with various individuals and entities to cancel a total of 71,140,000 shares of its common stock. Additionally, the Company issued 12,500,000 common shares in exchange for $250,000 of outstanding note principal. There were 214,692,211 and 273,332,211 issued; 214,312,211 and 272,952,211 outstanding at March 31, 2017 and December 31, 2016, respectively.

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Note 6 - Notes Payable	During the year ended December 31, 2015, the Company entered into a note payable with an unrelated party as a settlement for payment of consulting services provided valued at $350,000. The note carries interest of 9% compounded annually and is due on November 19, 2016. During the year ended December 31, 2016, the Company issued 50,000 shares of series A convertible preferred stock as repayment of $31,500 of accrued interest and $18,500 of outstanding principal. During the three months ended March 31, 2017, the Company issued 12,500,000 shares of common stock in exchange for $250,000 of principal and extended the maturity date to January 26, 2018. There was $81,500 and $331,500 of principal and $14,018 and $10,299 of accrued interest due as of March 31, 2017 and December 31, 2016. Accrued interest payable is included in “accounts payable and accrued liabilities” on the balance sheet. During the three months ended March 31, 2017, the Company entered into an agreement with a noteholder to forgive a $600 outstanding note payable. The Company wrote the balance to $0 against other income on the statements of operations.

Convertible Notes Payable

Convertible Notes Payable	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Note 7 - Convertible Notes Payable	During the three months ended March 31, 2017, the Company entered into an agreement with a convertible noteholder to extinguishment the outstanding principal of the convertible note of $24,383 and interest of $1,923 for a total $26,306. There was $0 and $23,784 net of discounts outstanding at March 31, 2017 and December 31, 2016.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Note 8 - Commitments and Contingencies	During the year ended December 31, 2015 the Company issued a total of 100,000 shares of series A convertible preferred stock in exchange for a prepayment of royalties and 40 complete Ultroid systems. Additionally, as discussed in Note 7, the Company entered into two separate convertible notes payable with an unrelated party. These transactions were not approved by unanimous board consent through the Company’s normal approval procedures. As such, the Company may challenge the validity of these agreements after additional review of the relevant details.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Note 9 - Subsequent Events	The Company has reviewed all events having occurred subsequent to the balance sheet and determined there are no additional items to disclose.

Significant Accounting Polici15

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Significant Accounting Policies Policies
Use of Estimates	The preparation of financial statements, in conformity with generally accepted accounting principles in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
Cash Equivalents	The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents.
Prior Period Conformity	The Company has reclassified balances in the prior period financial statements for conformity with the current period for comparison purposes.
Income taxes	The Company accounts for income taxes under the asset and liability method, where deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. At March 31, 2017, there were no uncertain tax positions that require accrual.
Intangible Asset	During the three months ended March 31, 2017, the Company entered into an agreement whereby a third party would build a web portal as part of executing our business plan. Through March 31, 2017, we had incurred $40,000 of costs to build the portal which are included in accounts payable as of March 31. The portal has yet to be launched and as such there has been no amortization recorded or impairment as of March 31, 2017.
Net Income (Loss) Per Share	Basic loss per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. There were no potentially dilutive instruments outstanding at March 31, 2017. Because of the net loss incurred during the three months ended March 31, 2016, the impacts of dilutive instruments would have been anti-dilutive for the period presented and have been excluded from loss per share calculations.
Recent Accounting Pronouncements	From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption.

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Going Concern Details Narrative
Working capital deficit	$ (229,007)
Accumulated deficit	$ (3,328,669)	$ (3,348,765)

Significant Accounting Polici17

Significant Accounting Policies (Details Narrative)	Mar. 31, 2017USD ($)
Significant Accounting Policies Details Narrative
Accounts Payable	$ 40,000

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Jan. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Related Party Transactions Details Narrative
Accrued interest	$ 14,018	$ 1,923	$ 10,299
Proceeds from related party loans	2,625
Convertible note payable		$ 2,634		$ 350,000
Related party expenses	468
Due to related parties	$ 42,692		$ 39,599

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	Mar. 02, 2015	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2014
Post-split shares		380,000	380,000
Dividends payable		$ 25,448	$ 25,448
Common stock; shares authorized		275,000,000	275,000,000
Common stock; shares issued		214,692,211	273,332,211
Common stock; shares outstanding		214,312,211	272,952,211
Common stock par value		$ 0.001	$ 0.001
Reverse stock split	1:50
Treasury stock		$ 100	$ 100
Common stock shares cancellable under agreement		71,140,000
Common stock shares issued in exchange of notes payable, shares		12,500,000
Common stock shares issued in exchange of notes payable, amount		$ 250,000
Officer [Member]
Treasury stock				$ 100
Common Stock
Post-split shares				380,000
Series A convertible preferred Stock [Member]
Converted shares			131,170
Convertible preferred stock; shares issued		0	0
Convertible preferred stock; shares outstanding		0	0
Common stock; shares issued			131,170,000

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jan. 31, 2017
Accrued interest	$ 14,018	$ 10,299		$ 1,923
Convertible note payable			$ 350,000	$ 2,634
Interest rate			9.00%
Debt due date			Nov. 19, 2016
Common stock shares issued in exchange of notes payable, shares	12,500,000
Common stock shares issued in exchange of notes payable, amount	$ 250,000
Maturity date	Jan. 26, 2018
Current notes payables	$ 81,500	$ 332,100
Note payable, amount to be forgiven	600
Write off other income	$ 0
Series A convertible preferred Stock [Member]
Share issued		50,000
Repayment of accrued interest		$ 31,500
Repayment of outstanding principal		$ 18,500

Convertible Notes Payable (Deta

Convertible Notes Payable (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Convertible Notes Payable Details Narrative
Extinguishment of debt, Amount	$ 24,383
Forgiveness of interest payable	1,923
Forgiveness of debt	26,306
Convertible notes payable, net of discounts			$ 23,784

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - Series A convertible preferred Stock [Member]	12 Months Ended
	Dec. 31, 2015USD ($)Number / System
Repayment of royalty to related party, shares | $	$ 100,000
Number of ultroid systems | Number / System	40