Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Apr. 14, 2017 | Jun. 30, 2016 | |
Document And Entity Information | |||
Entity Registrant Name | ACCELERA INNOVATIONS, INC. | ||
Entity Central Index Key | 1,444,144 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity's Reporting Status Current | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 1,857,450 | ||
Entity Common Stock, Shares Outstanding | 78,158,673 | ||
Trading Symbol | ACNV | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash | ||
Accounts receivable, net | 2,750 | |
Prepaid expenses and other current assets | 29,793 | |
Total current assets | 2,750 | 29,793 |
Property and equipment, net | 6,889 | 8,889 |
Security deposit | 1,805 | |
TOTAL ASSETS | 9,639 | 40,487 |
Current Liabilities: | ||
Cash overdraft | 6,624 | |
Short-term notes payable | 886,166 | 901,521 |
Advances from related party | 403,092 | 243,799 |
Accounts payable | 465,379 | 408,919 |
Accrued expenses | 333,471 | 322,581 |
Convertible note, net of discount of $19,395 and $0 | 155,277 | |
Derivative liability | 149,269 | 302,580 |
Total current liabilities | 2,392,654 | 2,186,024 |
Convertible note, net of discount of $0 and $158,806 | 15,434 | |
TOTAL LIABILITIES | 2,392,654 | 2,201,458 |
Commitment and contingencies | ||
STOCKHOLDERS' DEFICIT | ||
Preferred stock, value | ||
Common stock, $0.0001 par value, 100,000,000 shares authorized, 69,569,444 and 45,011,216 shares issued and outstanding at December 31, 2016 and 2015 | 6,957 | 4,501 |
Additional paid-in capital | 59,222,837 | 57,522,043 |
Accumulated deficit | (61,612,829) | (59,687,535) |
Total stockholders' deficit | (2,383,015) | (2,160,971) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | 9,639 | 40,487 |
8% Convertible Preferred Stock [Member] | ||
STOCKHOLDERS' DEFICIT | ||
Preferred stock, value | $ 20 | $ 20 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Convertible debt current, net of discount | $ 19,395 | $ 0 |
Convertible debt noncurrent, net of discount | $ 0 | $ 158,806 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 69,569,444 | 45,011,216 |
Common stock, shares outstanding | 69,569,444 | 45,011,216 |
8% Convertible Preferred Stock [Member] | ||
Preferred stock, par value | $ 4 | $ 4 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 198,473 | 198,473 |
Preferred stock, shares outstanding | 198,473 | 198,473 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||
Revenues | $ 2,750 | $ 1,133,715 |
Cost of revenues | 157,711 | |
Gross profit | 2,750 | 976,004 |
Operating expenses: | ||
General and administrative expenses | 1,900,962 | 13,992,521 |
Total operating expenses | 1,900,962 | 13,992,521 |
Loss from operations | (1,898,212) | (13,016,517) |
Other income (expense) | ||
Interest expense and financing costs | (445,926) | (1,801,903) |
Change in fair value of derivative liability | 418,844 | 2,745 |
Total other income (expenses) | (27,082) | (1,799,158) |
Loss before provision for taxes | (1,925,294) | (14,815,675) |
Provision for income taxes | ||
Net loss | (1,925,294) | (14,857,675) |
Preferred stock dividend | 47,503 | 41,413 |
Net loss attributed to common stockholders | $ (1,972,797) | $ (14,857,088) |
Weighted average shares outstanding - basic and diluted | 48,727,220 | 42,919,132 |
Loss per share - basic and diluted | $ (0.04) | $ (0.35) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Deficit - USD ($) | 8% Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2014 | $ 4,046 | $ 43,278,757 | $ (44,871,860) | $ (1,589,057) | |
Balance, shares at Dec. 31, 2014 | 40,445,926 | ||||
Issuance of 8% Convertible preferred stock | $ 20 | 793,872 | 793,892 | ||
Issuance of 8% convertible preferred stock, shares | 198,473 | ||||
Shares issued for services | $ 380 | 7,731,113 | $ 7,731,493 | ||
Shares issued for services, shares | 3,810,290 | 3,810,290 | |||
Shares issued for cash | $ 25 | 14,975 | $ 15,000 | ||
Shares issued for cash, shares | 255,000 | ||||
Shares issued for extension of loan payment terms | $ 50 | 1,437,437 | 1,437,487 | ||
Shares issued for extension of loan payment terms, shares | 500,000 | ||||
Fair value of options vested | 4,265,889 | 4,265,889 | |||
Net loss (restated) | (14,815,675) | (14,857,675) | |||
Balance at Dec. 31, 2015 | $ 20 | $ 4,501 | 57,522,043 | (59,687,535) | (2,160,971) |
Balance, Shares at Dec. 31, 2015 | 198,473 | 45,011,216 | |||
Fair value of options vested | 1,616,144 | 1,616,144 | |||
Shares issued for convertible debt | $ 2,456 | 84,650 | 87,106 | ||
Shares issued for convertible debt, shares | 24,558,228 | ||||
Net loss (restated) | (1,925,294) | (1,925,294) | |||
Balance at Dec. 31, 2016 | $ 20 | $ 6,957 | $ 59,222,837 | $ (61,612,829) | $ (2,383,015) |
Balance, Shares at Dec. 31, 2016 | 198,473 | 69,569,444 |
Consolidated Statement of Stoc6
Consolidated Statement of Stockholders' Deficit (Parenthetical) | 12 Months Ended |
Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |
Convertible preferred stock, percentage | 8.00% |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (1,925,294) | $ (14,857,675) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 2,000 | 1,259 |
Stock options expense | 1,616,144 | 4,265,889 |
Shares issued for services | 7,731,493 | |
Shares issued for extending loan payment terms | 1,437,487 | |
Amortization of debt discount | 277,439 | 15,434 |
Change in fair value of derivative liability | (418,844) | (2,745) |
Financing costs associated with convertible note | 135,533 | 136,640 |
Offering cost for preferred stock subscription | 141,430 | |
Change in current assets and liabilities: | ||
Accounts receivable | (2,750) | 153,478 |
Prepaid expenses and current assets | 31,598 | (23,767) |
Accounts payable | 56,460 | 320,230 |
Accrued expenses | 12,900 | 194,987 |
Net cash used in operating activities | (214,814) | (443,860) |
INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (3,767) | |
Net cash used in investing activities | (3,767) | |
FINANCING ACTIVITIES: | ||
Proceeds from the sale of stock | 15,000 | |
Proceeds from convertible notes | 77,500 | 50,000 |
Proceeds from notes payable | 250,000 | |
Payment on notes payable | (15,355) | (74,301) |
Cash overdraft | (6,624) | (5,061) |
Advances from (payments to) related parties | 159,293 | 211,989 |
Net cash provided by financing activities | 214,814 | 447,627 |
NET INCREASE (DECREASE) IN CASH | ||
CASH, BEGINNING BALANCE | ||
CASH, ENDING BALANCE | ||
CASH PAID FOR: | ||
Interest | ||
Income taxes | ||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Convertible notes and accrued interest converted to common stock | 87,106 | |
Convertible note issued for liabilities | $ 118,685 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION Accelera Innovations, Inc., formerly Accelerated Acquisitions IV, Inc. (the “Company”) was incorporated in the State of Delaware on April 29, 2008 for the purpose of raising capital intended to be used in connection with its business plan which may include a possible merger, acquisition or other business combination with an operating business. On June 13, 2011, Synergistic Holdings, LLC (“Synergistic”) agreed to acquire 17,000,000 shares of the Company’s common stock, par value $0.0001 per share. At the same time, Accelerated Venture Partners, LLC agreed to tender 3,750,000 of its 5,000,000 shares of the Company’s common stock, par value $0.0001 per share, for cancellation. Following these transactions, Synergistic owned 93.15% of the Company’s 18,250,000 issued and outstanding shares of common stock, par value $0.0001 per share, and the interest of Accelerated Venture Partners, LLC was reduced to approximately 6.85% of the total issued and outstanding shares. Concurrent with the share purchase, Timothy Neher resigned from the Company’s Board of Directors and John Wallin was appointed to the Company’s Board of Directors. Such action represented a change of control of the Company. On October 18, 2011, the Company filed a Certificate of Amendment to its Certificate of Incorporation with the Secretary of State of Delaware and changed its name from Accelerated Acquisition IV, Inc. to Accelera Innovations, Inc. The Company is a healthcare service company which is focused on acquiring companies primarily in the post-acute care patient services and information technology services industries. The Company currently owns SCI Home Health, Inc. (d/b/a Advance Lifecare Home Health) (“SCI”), which offers personal care to patients in the Chicago, Illinois area. The accompanying consolidated financial statements and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION - The Company operates companies in the personal health care industry. The Company operates out of one service center serving the Chicago, Illinois area. The consolidated financial statements for the year ended December 31, 2016 include the accounts of the Company and its 100% owned subsidiary SCI, Significant intercompany accounts and transactions have been eliminated in consolidation. USE OF ESTIMATES - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in these financial statements include allowance for doubtful accounts, the valuation of intangibles, valuation allowance for deferred taxes, estimated useful life of property and equipment and the fair value of stock and options issues for services and interest. CASH - All cash is maintained with a major financial institution in the United States. Deposits with this bank may exceed the amount of insurance provided on such deposits. Temporary cash investments with an original maturity of three months or less are considered to be cash equivalents. The Company had no cash equivalents as of December 31, 2016 and 2015, respectively. The Company has not suffered any credit issues when deposits have exceeded the amount of insurance provided for such deposits. ACCOUNTS RECEIVABLE - Accounts receivable are recorded at estimated value, net of allowance for doubtful accounts. Accounts receivable are not interest bearing. The allowance for doubtful accounts is based upon management’s best estimate and past collection experience. For accounts greater than 180 days, the Company carries a 100% allowance. Uncollectible accounts are charged off when all reasonable efforts to collect the accounts have been exhausted. PROPERTY AND EQUIPMENT - Property and equipment is stated at cost. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. Maintenance and repairs are charged to expense as incurred; major renewals and betterments are capitalized. When items of property and equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts, and any gain or loss is included in income. DERIVATIVE FINANCIAL INSTRUMENTS - The Company evaluates all of its agreements to determine if such instruments have derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company uses the Black-Scholes-Merton option pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. As of December 31, 2016 and 2015, the Company’s only derivative financial instrument was an embedded conversion feature associated with convertible notes due to the conversion price being a percentage of the market price of the Company’s common stock. PREFERRED STOCK SUBSCRIPTION PAYABLE - During the years ended December 31, 2014 and 2013, an affiliate of the Company entered into subscription agreements with 13 investors. Pursuant to the terms of the subscription agreements, the affiliate agreed to issue shares of the Company’s 8% Convertible Preferred Stock that it was authorized to issue as of May 7, 2015. In exchange, the Company received aggregate proceeds from the investors of $652,462. Accordingly, the Company is obligated to issue an aggregate of 198,473 shares of 8% Convertible Preferred Stock to the investors with a stated value of $4.00 per share or an aggregate of $793,892. The net proceeds of $652,462 have been received by or on behalf of the Company and recorded as preferred stock subscription payable net of $141,430 of original issue discount related to such offering which amount was expensed. Upon obtaining the Certificate of Designation for the 8% Convertible Preferred Stock on May 7, 2015, the Company has included the aggregate amount of $793,892 of preferred stock as part of stockholders’ equity. Prior to May 7, 2015, the preferred stock subscription payable was included as a current liability. COMMON STOCK - The Company records common stock issuances when all of the legal requirements for the issuance of such common stock have been satisfied. REVENUE RECOGNITION - Revenue related to services and administrative support services is recognized ratably at the time services have been performed and pre-approved by payer. Gross service revenue is recorded in the accounting records on an accrual basis at the provider’s established rates, regardless of whether the health care entity expects to collect that amount. The Company will reserve a provision for contractual adjustment and discounts and deduct from gross service revenue. The Company believes that recognizing revenue at the time the services have been performed because the Company’s revenue policies meet the following four criteria in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605-10-S25, Revenue Recognition COST OF REVENUES - Costs of revenues are comprised of fees paid to members of the Company’s medical staff, other direct costs including transcription, film and medical record obtainment and transportation; and other indirect costs including labor and overhead related to the generation of revenues. ADVERTISING COSTS - The Company’s policy regarding advertising is to expense advertising when incurred. INCOME TAXES - The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no effect on the Company’s consolidated financial statements. STOCK BASED COMPENSATION - The Company has share-based compensation plans under which employees, consultants, suppliers and directors may be granted restricted stock, as well as options and warrants to purchase shares of the Company’s common stock at the fair market value at the time of grant. Stock-based compensation cost to employees is measured by the Company at the grant date, based on the fair value of the award, over the requisite service period under ASC 718, Compensation – Stock Compensation Equity LOSS PER SHARE - Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted loss per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. FINANCIAL INSTRUMENTS - ASC 820, Fair Value Measurements and Disclosures ● Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. ● Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. ● Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2016. These financial instruments include stock options granted to the officers in 2016 and 2015. The Company uses Level 2 inputs for its valuation methodology for its derivative liability as its fair value was determined by using the Black-Scholes-Merton pricing model based on various assumptions. The Company’s derivative liability is adjusted to reflect fair value at each period end, with any increase or decrease in the fair value being recorded in results of operations as adjustments to fair value of derivatives. At December 31, 2016 and 2015, the Company identified the following liability that is required to be presented on the balance sheet at fair value (see Note 7): Fair Value Fair Value Measurements at As of December 31, 2016 Description December 31, 2016 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Derivative liability - conversion feature $ 149,269 - 149,269 - Total $ 149,269 - 149,269 - Fair Value Fair Value Measurements at As of December 31, 2015 Description December 31, 2015 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Derivative liability - conversion feature $ 302,580 - 302,580 - Total $ 302,580 - 302,580 - RECENT ACCOUNTING PRONOUNCEMENTS In January 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory In August 2016, the FASB issued ASU 2016-15 , Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ASU 2016-02 In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances. RECLASSIFICATIONS - Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings, financial position or cash flows. |
Balance Sheet Information
Balance Sheet Information | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Information | NOTE 3 – BALANCE SHEET INFORMATION PROPERTY AND EQUIPMENT, NET Property and equipment, net at December 31, 2016 and 2015 consist of the following: 2016 2015 Furniture and fixtures $ 3,940 $ 3,940 Office equipment 5,641 5,641 9,581 9,581 Less accumulated depreciation (2,692 ) (692 ) $ 6,889 $ 8,889 Depreciation expense for the years ended December 31, 2016 and 2015 was $2,000 and $1,259, respectively. |
Going Concern
Going Concern | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | NOTE 4 – GOING CONCERN The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred a net loss for the year ended December 31, 2016 of $1,925,294 and had an accumulated deficit of $61,612,829 as of December 31, 2016. In view of these matters, the Company’s ability to continue as a going concern is dependent upon the Company’s ability to add profitable operating companies and to achieve a level of profitability. The Company intends on financing its future development activities and its working capital needs largely from the sale of equity securities with some additional funding from other traditional financing sources, including term notes, until such time that funds provided by operations are sufficient to fund working capital requirements. The Company’s only operating subsidiary is SCI. Revenues from SCI have significantly decreased primarily due to the sudden departure of the administrator of SCI. The Company has transitioned this position to a new administrator and filed these changes with the IDPH (Illinois Department of Public Health). There are claims to be processed and invoiced when IDPH approves; through the uniform process and the new SCI administrator, the Company expects this to be resolved in the near future. The consolidated financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern. |
Short-Term Notes Payables
Short-Term Notes Payables | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short-Term Notes Payables | NOTE 5 – SHORT-TERM NOTES PAYABLES Short-term notes payable at December 31, 2016 and 2015 consisted of the following: 2016 2015 At Home and All Staffing acquisition note payable (1) 344,507 344,507 AOK Property Investments (2) 525,000 525,000 Note dated May 28, 2015 for $35,000; daily payment of $184.73 for 252 days 16,659 32,014 $ 886,166 $ 901,521 (1) The Company entered into a $344,507 promissory note (the “Trust Note”) with the Rose. M Gallagher Revocable Trust (the “Trust”) in conjunction with a settlement agreement dated December 23, 2014. The Trust Note bears interest at 11.0% per annum. The first payment of $25,000 was due on March 1, 2015, with the final principal and interest payment due on June 1, 2015. The Company is in default of the Trust Note and has a 90-day cure period. The Company paid $5,000 on April 8, 2015. If an event of default under the Trust Note occurs, the Trust may accelerate the Trust Note’s maturity date so that the unpaid principal amount, together with accrued interest, is immediately due in its entirety. In addition, the Company promised to pay $1,000 dollars as consideration for costs of collection of the Trust Note, including but not limited to attorneys’ fees paid or incurred on account of such collection, whether or not suit is filed with respect thereto and whether such cost or expense is paid or incurred, or to be paid or incurred, prior to or after the entry of judgment. Pursuant to the terms of the Trust Note, an event of default occurs if (i) the Company fails to make any payment required by the Trust Note when due, (ii) the Company fails to observe or perform any covenant, condition or agreement under the Trust Note, (iii) a proceeding with respect to the Company is commenced for the benefit of creditors, including but not limited to any bankruptcy or insolvency law; or (iv) the Company becomes insolvent. (2) On October 1, 2014, AOK Property Investments LLC (“AOK”), a third party lender, lent the Company and its subsidiary, Advanced Life Management, LLC (“ALM”) , an aggregate of $500,000. In consideration of AOK’s delivery of an aggregate of $500,000 to the Company and ALM, the Company and ALM executed and delivered a promissory note (the “AOK Note”) in favor of AOK in the aggregate principal amount of $500,000. The AOK Note was due on January 15, 2015 and bears interest in the amount of 500,000 shares of the Company’s common stock, which interest was due and payable on or before January 15, 2015. If the Company and ALM fail to pay any portion of principal or interest when due, interest will continue to accrue and be payable to AOK at the rate of 1,667 shares of Company common stock per day until all principal and accrued interest is fully paid. On July 10, 2015, the Company and AOK entered in an amended note agreement whereby AOK loaned the Company an additional $25,000 and extended the due date of the note to December 31, 2015, and the Company agreed to issue an additional 500,000 shares of common stock for failing to pay the principal and interest on the loan when originally due. The Company recorded the issuance of 500,000 shares of common stock to AOK at a value of $1,360,907. The loan was not repaid on its extended due date and is currently in default. If an event of default under the AOK Note occurs, AOK may accelerate the AOK Note’s maturity date so that the unpaid principal amount, together with accrued interest, is immediately due in its entirety. Pursuant to the terms of the AOK Note, an event of default occurs if (i) the Company or ALM fails to make any payment required by the AOK Note when due, (ii) the Company or SCI voluntarily dissolves or ceases to exist, or any final and non-appealable order or judgment is entered against the Company or SCI ordering its dissolution, (iii) the Company or ALM fails to pay, becomes insolvent or unable to pay, or admits in writing an inability to pay its debts as they become due, or makes a general assignment for the benefit of creditors; or (iv) a proceeding with respect to the Company or ALM is commenced for the benefit of creditors, including but not limited to any bankruptcy or insolvency law. |
Convertible Notes
Convertible Notes | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Convertible Notes | NOTE 6 – CONVERTIBLE NOTES Convertible notes at December 31, 2016 and 2015 consist of the following: 2016 2015 Convertible note dated August 28, 2015; interest of $6,667 due after 90 days; due August 28, 2017; convertible into shares of common stock at the lesser of $1.00 or 60% of the lowest trading price 25 days prior to conversion. $ - $ 55,556 Convertible note dated December 16, 2015; non-interest bearing; convertible into shares of common stock at 50% of the market price on the date of conversion. 118,684 118,684 Convertible note dated March 10, 2016; interest of $3,333 due after 90 days; due August 28, 2017; convertible into shares of common stock at the lesser of $1.00 or 60% of the lowest trading price 25 days prior to conversion. 9,363 - Convertible note dated May 5, 2016; interest at 8% per annum; due May 5, 2017; convertible into shares of common stock at 65% of the lowest trading price 20 days prior to conversion. 46,625 - Total convertible notes 174,672 174,240 Unamortized debt discount (19,395 ) (158,806 ) Convertible notes, net of discount 155,277 15,434 Less current portion (152,952 ) - Long-term portion $ 2,325 $ 15,434 Due to the variable conversion price associated with these convertible notes, the Company has determined that the conversion feature is considered a derivative liability. The embedded conversion feature at inception is recorded as a derivative liability as of the date of issuance. The derivative liability was recorded as a debt discount up to the face amount of the convertible notes with the remaining amount being charge as a financing cost. The debt discount is being amortized over the term of the convertible notes. The Company recognized additional interest expense of $277,439 and $15,434 during the years ended December 31, 2016 and 2015, respectively, related to the amortization of the debt discount. A rollfoward of the convertible note from December 31, 2014 to December 31, 2016 is below: Convertible notes, December 31, 2014 $ - Issued for cash 50,000 Accounts payable converted to convertible note 118,685 Issued for original issue discount 5,556 Debt discount related to new convertible notes (174,241 ) Amortization of debt discounts 15,434 Convertible notes, December 31, 2015 15,434 Issued for cash 77,500 Issued for original issue discount 8,028 Conversion to common stock (85,096 ) Debt discount related to new convertible notes (138,028 ) Amortization of debt discounts 277,439 Convertible notes, December 31, 2016 $ 155,277 |
Derivative Liability
Derivative Liability | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Liability | NOTE 7 – DERIVATIVE LIABILITY The convertible note discussed in Note 6 has a variable conversion price which results in the conversion feature being recorded as a derivative liability. The fair value of the derivative liability is recorded and shown separately under current liabilities. Changes in the fair value of the derivative liability is recorded in the statement of operations under other income (expense). The Company uses the Black-Scholes-Merton option pricing model with the following assumptions to measure the fair value of derivative liability at December 31, 2016 and 2015: 2016 2015 Stock price $ 0.0051 $ 0.141 Risk free rate 0.59 % 0.64 % Volatility 325 % 325 % Conversion/Exercise price $ 0.0025 - 0.007 $ 0.07-0.085 Dividend rate 0 % 0 % Terms (years) 0.1 to 0.7 0.8 to 1.7 The following table represents the Company’s derivative liability activity for the years ended December 31, 2016 and 2015: Derivative liability at December 31, 2014 $ - Derivative liability associated with new convertible note 305,325 Change in fair value of derivative liability during period (2,745 ) Derivative liability at December 31, 2015 302,580 Derivative liability associated with new convertible note 265,533 Change in fair value of derivative liability during period (418,844 ) Derivative liability at December 31, 2016 $ 149,269 |
Stockholders' Deficit
Stockholders' Deficit | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Deficit | NOTE 8 – STOCKHOLDERS’ DEFICIT The Company has two classes of stock, preferred stock and common stock. There are 10,000,000 shares of $.0001 par value preferred stock authorized, 500,000 of which were designated as 8% Convertible Preferred Stock as of May 7, 2015. The 500,000 shares of 8% Convertible Preferred Stock have the following the designations, rights, and preferences: ● The state value of each share is $4.00, ● Holders of shares of 8% Convertible Preferred Stock do not have any voting rights, ● The shares pay quarterly dividends in arrears at the rate of 8% per annum and on each conversion date. Subject to certain conditions, the dividends are payable at the Company’s option in cash or such dividends shall be accreted to, and increase, the outstanding stated value, ● Each share is convertible into shares of the Company’s common stock at a conversion price of $4.00 per share, subject to adjustment, and ● The conversion price of the 8% Convertible Preferred is subject to proportional adjustment in the event of stock splits, stock dividends and similar corporate events. There were 198,473 shares of 8% Convertible Preferred Stock issued and outstanding as of December 31, 2016. There are 100,000,000 shares of $.0001 par value common shares authorized. The Company had 69,569,444 and 45,011,216 issued and outstanding shares as of December 31, 2016 and 2015, respectively. During the year ended December 31, 2016, the Company issued 24,558,228 shares for the conversion of $87,106 of convertible notes payable. The Company issued 3,810,290 shares for services with a fair value of $7,731,493 and 500,000 shares for an extension of loan payment terms with a fair value of $1,360,907 for the year ended December 31, 2015. In addition, the Company also issued 25,000 shares for cash proceeds of $15,000. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | NOTE 9 – STOCK-BASED COMPENSATION The Company recognizes stock-based compensation expense in its statement of operations based on the fair value of employee stock options and stock grant awards as measured on the grant date. For stock options, the Company uses the Black-Scholes option pricing model to determine the value of the awards granted. The Company amortizes the estimated value of the options as of the grant date over the stock options’ vesting period, which is generally four years. The Company has estimated the value of common stock into which the options are exercisable at $4.00 per share for financial reporting purposes. This amount was determined based on the price the Company’s stock was sold for in past private placements, the minimum stock price required for listing on any Nasdaq market, and the amount also approximates a $85 million valuation for the entire Company, which is considered “micro-cap” by most equity analysts. The stock based compensation expense is an estimate and significant judgment was involved in attempting to determine the value of common stock. When a majority of the stock options were granted, the Company’s common stock was not traded publicly, and no stock was traded in private markets either, except for privately negotiated sales to the founder and other private investors and the founder of the technology from which the Company subsequently licensed rights. The Company does not have any offers for purchase of its common stock in any stage, and no stock is currently registered for resale with the Securities and Exchange Commission. The Company believes the only material estimate used in estimating the value of stock options was the estimated fair value of the common stock, and that assumed volatility, term, interest rate and dividend yield changes would not result in material differences in stock option valuations. The Company recognized stock-based compensation expense of $1,616,144 and $4,265,889 for the years ended December 31, 2016 and 2015, respectively, which were included in general and administrative expenses. As of December 31, 2016, there was $30,000 of total unrecognized compensation cost related to unvested stock-based compensation awards, which is expected to be recognized through September 2018. The following is a summary of the outstanding options, as of December 31, 2016: Weighted Weighted Weighted Average Average Average Remaining Options Intrinsic Exercise Contractual Outstanding Value Price Life Outstanding, December 31, 2014 5,888,583 4.00 $ 0.0001 2.5 Granted 425,667 2.52 Exercised - Forfeited/Expired (511,000 ) Outstanding, December 31, 2015 5,803,250 3.89 0.0001 1.5 Granted - Exercised - Forfeited/Expired - Outstanding, December 31, 2016 5,803,250 3.89 0.0001 0.5 Exercisable, December 31, 2016 5,777,000 3.89 0.0001 0.5 Weighted average assumptions in the calculation of option value: Risk-free interest rate 0.83 % Expected life of the options 4 years Expected volatility 268 % Expected dividend yield 0 % Forfeiture rate 0 % |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 10 – RELATED PARTY TRANSACTIONS On December 5, 2014, the Company and Synergistic, a major shareholder of the Company, agreed to cancel 796,671 shares of the Company’s common stock owned by Synergistic and forgive certain indebtedness owed by the Company to Synergistic in the amount of $1,018,618. In addition, the Company entered into an oral agreement to amend the licensing agreement entered into between the Company and Synergistic (the “Licensing Agreement”) to reduce the total amount of reimbursable distribution and commercialization expenses due under the Licensing agreement by $585,181 to $29,414,819 and defer the date of certain payment obligations by the Company under the Licensing Agreement as follows: (a) $5,000,000 no later than December 31, 2015; (b) An additional $7,500,000 no later than December 31, 2016; (c) An additional $10,000,000 no later than December 31, 2017; and (d) An additional $6,914,819 no later than December 31, 2018. No payments have been made to date. On May 7, 2015, the Company and Synergistic agreed to amend the Licensing Agreement to eliminate the Company’s $29,414,819 funding requirements under Article 3 and replace it with a requirement to pay a license fee in the amount of $10,000 upon completion and acceptance of each installation of the software at a location for each affiliate or subsidiary of the Company and the sum of $10,000 on each anniversary after each such installation during the period of time in which the software is used at such location. In addition, the Company will be responsible for the reasonable installation costs incurred by Synergistic in connection with the installation and setup of the software as required by the Company. The license fee may be paid in cash or the Company’s common stock. In addition, the Licensing Agreement was amended to delete the Company’s exclusive rights under such agreement. At December 31, 2016 and 2015, advances from related party were $403,092 and $243,799, respectively. These advances are non-interest bearing and payable upon demand. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 11 – INCOME TAXES The Company has not recognized an income tax benefit for its operating losses generated based on uncertainties concerning its ability to generate taxable income in future periods. The tax benefit for the periods presented is offset by a valuation allowance established against deferred tax assets arising from the net operating losses and other temporary differences, the realization of which could not be considered more likely than not. In future periods, tax benefits and related deferred tax assets will be recognized when management considers realization of such amounts to be more likely than not. As of December 31, 2016, the Company had a loss and for the period April 29, 2008 (date of inception) through December 31, 2016. The net operating losses resulting from operating activities result in deferred tax assets of approximately $23,552,000 at the effective statutory rates which will expire by the year 2033. The deferred tax asset has been offset by an equal valuation allowance. There are no current or deferred income tax expense or benefit recognized for the years ended December 31, 2016 and 2015. A reconciliation of income taxes computed at the United States federal statutory income tax rate to the provision for income taxes for the years ended December 31, 2016 and 2015 is as follows: 2016 2015 Federal statutory rates $ 786,859 $ (5,074,386 ) State income taxes, net of federal effect 118,376 (763,397 ) Gain on discontinued operations (1,658,314 ) - Other permanent differences (2,296 ) 88,259 Valuation allowance against net deferred tax assets 755,375 5,749,524 $ - $ - The tax effects of temporary differences that give rise to significant portions of the deferred tax asset at December 31, 2016 and 2015 is as follows: 2016 2015 Deferred income tax assets: Net operation loss carryforwards 1,618,174 1,494,954 Property, equipment and intangibles 1,635,587 1,635,587 Share-based compensation 20,015,035 19,382,880 Book to tax differences for allowance for uncollectible accounts 283,658 283,658 Total deferred income tax assets 23,552,454 22,797,079 Less: valuation allowance (23,552,454 ) (22,797,079 ) Total deferred income tax asset $ - $ - The valuation allowance increased by $755,375 and $5,749,524 in 2016 and 2015, respectively, as a result of the Company’s generating additional net operating losses. The Company has recorded as of December 31, 2016 and 2015 a valuation allowance of $23,552,454 and $22,797,079, respectively; as management believes that it is more likely than not that the deferred tax assets will not be realized in future years. Management has based its assessment on the Company’s lack of profitable operating history. The Company annually conducts an analysis of its tax positions and has concluded that it had no uncertain tax positions as of December 31, 2016. The Company has net operating loss carry-forwards of approximately $3,900,000. Such amounts are subject to IRS code section 382 limitations and begin to expire in 2033. The 2015 and 2016 tax years are still subject to audit. |
Restatement of Previously Issue
Restatement of Previously Issued Financial Statements | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Restatement of Previously Issued Financial Statements | NOTE 12 – RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS On November 11, 2013, the Company entered into a stock purchase agreement with Behavioral Health Care Associates, Ltd. (“BHCA”) to purchase 100% of the issued and outstanding share of BHCA common stock for $4,550,000. The purchase price was to be paid in installments over a period of approximately 24 months. The Company originally recorded the purchase of BHCA on November 11, 2013 and began consolidating the operating results of BHCA from that date. The Company never made any of the required installment payments in accordance with the stock purchase agreement and the stock of BHCA was never transferred to the Company. As a result, the Company has determined that the financial statements of BHCA should have never been consolidated with those of the Company since the Company was never able to take control of BHCA due to non-payment of the purchase price. The prior year financial statements have been restated to remove BHCA from the consolidated financial statements of the Company. The following tables present the restated financial statements as of and for the year ended December 31, 2015. All the adjustments are a result of removing BHCA from the Company’s consolidated financial statements. ACCELERA INNOVATIONS, INC. BALANCE SHEET AS OF DECEMBER 31, 2015 As Originally Amount of Presented Restatement As Restated ASSETS Current Assets: Cash $ 474,564 $ (474,564 ) $ 0 Prepaid expenses 29,793 0 29,793 Total current assets 504,357 (474,564 ) 29,793 Property and equipment, net 8,889 0 8,889 Security deposit 1,805 0 1,805 TOTAL ASSETS $ 515,051 $ (474,564 ) $ 40,487 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current Liabilities: Cash overdraft $ 0 $ 6,624 $ 6,624 Short-term note payable 901,521 0 901,521 Subordinated unsecured note payable 4,550,000 (4,550,000 ) 0 Advanced from related party 243,799 0 243,799 Accounts payable 474,510 (65,591 ) 408,919 Accrued expenses 427,764 (105,183 ) 322,581 Derivative liability 302,580 0 302,580 Total current liabilities 6,900,174 (4,714,150 ) 2,186,024 Convertible note 15,434 0 15,434 TOTAL LIABILITIES 6,915,608 (4,714,150 ) 2,201,458 STOCKHOLDERS’ DEFICIT Preferred stock 20 0 20 Common stock 4,501 0 4,501 Additional paid-in capital 57,522,043 0 57,522,043 Accumulated deficit (63,927,121 ) 4,239,586 (59,687,535 ) Total stockholders’ deficit (6,400,557 ) 4,239,586 (2,160,971 ) TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 515,051 $ (474,564 ) $ 40,487 ACCELERA INNOVATIONS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS YEAR ENDED DECEMBER 31, 2015 As Originally Amount of Presented Restatement As Restated Revenues $ 3,623,131 $ (2,489,416 ) $ 1,133,715 Cost of revenues 1,856,401 (1,698,690 ) 157,711 Gross profit 1,766,730 (790,726 ) 976,004 Operating expenses: General and administrative expenses 14,892,236 (899,715 ) 13,992,521 Total operating expenses 14,892,236 (899,715 ) 13,992,521 Loss from operations (13,125,506 ) 108,989 (13,016,517 ) Other income (expense) Interest expense and financing costs (1,801,903 ) 0 (1,801,903 ) Change in fair value of derivative liability 2,745 0 2,745 Total other income (expenses) (1,799,158 ) 0 (1,799,158 ) Loss before provision for taxes (14,924,664 ) 108,989 (14,815,675 ) Provision for income taxes 0 0 0 Net loss $ (14,924,664 ) $ 108,989 $ (14,815,675 ) Preferred stock dividend 41,413 0 41,413 Net loss attributed to common stockholders $ (14,966,077 ) $ 108,989 $ (14,857,088 ) Weighted average shares outstanding - basic and diluted 42,919,132 0 42,919,132 Loss per share - basic and diluted $ (0.35 ) $ 0.00 $ (0.35 ) ACCELERA INNOVATIONS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2015 As Originally Amount of Presented Restatement As Restated OPERATING ACTIVITIES: Net loss $ (14,924,664 ) $ 108,989 $ (14,815,675 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 1,259 0 1,259 Stock options expense 4,265,889 0 4,265,889 Shares issued for services 7,731,493 0 7,731,493 Shares issued for extending loan payment terms 1,437,487 0 1,437,487 Amortization of debt discount 15,434 0 15,434 Change in fair value of derivative liability (2,745 ) 0 (2,745 ) Financing costs associated with convertible note 136,640 0 136,640 Offering cost for preferred stock subscription 141,430 0 141,430 Change in current assets and liabilities: 0 Accounts receivable 605,796 (452,318 ) 153,478 Prepaid expenses and current assets (23,767 ) 0 (23,767 ) Accounts payable 385,821 (65,591 ) 320,230 Accrued expenses 200,708 (5,721 ) 194,987 Net cash used in operating activities (29,219 ) (414,641 ) (443,860 ) INVESTING ACTIVITIES: Purchase of property and equipment (3,767 ) 0 (3,767 ) Net cash used in investing activities (3,767 ) 0 (3,767 ) FINANCING ACTIVITIES: Proceeds from the sale of stock 15,000 0 15,000 Proceeds from convertible notes 50,000 0 50,000 Proceeds from notes payable 250,000 0 250,000 Payment on notes payable (74,301 ) 0 (74,301 ) Cash overdraft 0 (5,061 ) (5,061 ) Advances from (payments to) related parties 211,989 0 211,989 Net cash provided by financing activities 452,688 (5,061 ) 447,627 NET INCREASE (DECREASE) IN CASH 419,702 (419,702 ) 0 CASH, BEGINNING BALANCE 54,862 (54,862 ) 0 CASH, ENDING BALANCE $ 474,564 $ (474,564 ) $ 0 CASH PAID FOR: Interest $ 0 $ 0 $ 0 Income taxes $ 0 $ 0 $ 0 NON-CASH INVESTING AND FINANCING ACTIVITIES: Convertible notes and accrued interest converted to common stock $ 0 $ 0 $ 0 Convertible note issued for liabilities $ 118,685 $ 0 $ 118,685 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 13 – SUBSEQUENT EVENTS Management has reviewed events between December 31, 2016 and April 14, 2017 and no significant events were identified. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION - The Company operates companies in the personal health care industry. The Company operates out of one service center serving the Chicago, Illinois area. The consolidated financial statements for the year ended December 31, 2016 include the accounts of the Company and its 100% owned subsidiary SCI, Significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | USE OF ESTIMATES - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in these financial statements include allowance for doubtful accounts, the valuation of intangibles, valuation allowance for deferred taxes, estimated useful life of property and equipment and the fair value of stock and options issues for services and interest. |
Cash | CASH - All cash is maintained with a major financial institution in the United States. Deposits with this bank may exceed the amount of insurance provided on such deposits. Temporary cash investments with an original maturity of three months or less are considered to be cash equivalents. The Company had no cash equivalents as of December 31, 2016 and 2015, respectively. The Company has not suffered any credit issues when deposits have exceeded the amount of insurance provided for such deposits. |
Accounts Receivable | ACCOUNTS RECEIVABLE - Accounts receivable are recorded at estimated value, net of allowance for doubtful accounts. Accounts receivable are not interest bearing. The allowance for doubtful accounts is based upon management’s best estimate and past collection experience. For accounts greater than 180 days, the Company carries a 100% allowance. Uncollectible accounts are charged off when all reasonable efforts to collect the accounts have been exhausted. |
Property and Equipment | PROPERTY AND EQUIPMENT - Property and equipment is stated at cost. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. Maintenance and repairs are charged to expense as incurred; major renewals and betterments are capitalized. When items of property and equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts, and any gain or loss is included in income. |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS - The Company evaluates all of its agreements to determine if such instruments have derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company uses the Black-Scholes-Merton option pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. As of December 31, 2016 and 2015, the Company’s only derivative financial instrument was an embedded conversion feature associated with convertible notes due to the conversion price being a percentage of the market price of the Company’s common stock. |
Preferred Stock Subscription Payable | PREFERRED STOCK SUBSCRIPTION PAYABLE - During the years ended December 31, 2014 and 2013, an affiliate of the Company entered into subscription agreements with 13 investors. Pursuant to the terms of the subscription agreements, the affiliate agreed to issue shares of the Company’s 8% Convertible Preferred Stock that it was authorized to issue as of May 7, 2015. In exchange, the Company received aggregate proceeds from the investors of $652,462. Accordingly, the Company is obligated to issue an aggregate of 198,473 shares of 8% Convertible Preferred Stock to the investors with a stated value of $4.00 per share or an aggregate of $793,892. The net proceeds of $652,462 have been received by or on behalf of the Company and recorded as preferred stock subscription payable net of $141,430 of original issue discount related to such offering which amount was expensed. Upon obtaining the Certificate of Designation for the 8% Convertible Preferred Stock on May 7, 2015, the Company has included the aggregate amount of $793,892 of preferred stock as part of stockholders’ equity. Prior to May 7, 2015, the preferred stock subscription payable was included as a current liability. |
Common Stock | COMMON STOCK - The Company records common stock issuances when all of the legal requirements for the issuance of such common stock have been satisfied. |
Revenue Recognition | REVENUE RECOGNITION - Revenue related to services and administrative support services is recognized ratably at the time services have been performed and pre-approved by payer. Gross service revenue is recorded in the accounting records on an accrual basis at the provider’s established rates, regardless of whether the health care entity expects to collect that amount. The Company will reserve a provision for contractual adjustment and discounts and deduct from gross service revenue. The Company believes that recognizing revenue at the time the services have been performed because the Company’s revenue policies meet the following four criteria in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 605-10-S25, Revenue Recognition |
Cost of Revenues | COST OF REVENUES - Costs of revenues are comprised of fees paid to members of the Company’s medical staff, other direct costs including transcription, film and medical record obtainment and transportation; and other indirect costs including labor and overhead related to the generation of revenues. |
Advertising Costs | ADVERTISING COSTS - The Company’s policy regarding advertising is to expense advertising when incurred. |
Income Taxes | INCOME TAXES - The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no effect on the Company’s consolidated financial statements. |
Stock Based Compensation | STOCK BASED COMPENSATION - The Company has share-based compensation plans under which employees, consultants, suppliers and directors may be granted restricted stock, as well as options and warrants to purchase shares of the Company’s common stock at the fair market value at the time of grant. Stock-based compensation cost to employees is measured by the Company at the grant date, based on the fair value of the award, over the requisite service period under ASC 718, Compensation – Stock Compensation Equity |
Loss Per Share | LOSS PER SHARE - Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted loss per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. |
Financial Instruments | FINANCIAL INSTRUMENTS - ASC 820, Fair Value Measurements and Disclosures ● Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. ● Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. ● Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2016. These financial instruments include stock options granted to the officers in 2016 and 2015. The Company uses Level 2 inputs for its valuation methodology for its derivative liability as its fair value was determined by using the Black-Scholes-Merton pricing model based on various assumptions. The Company’s derivative liability is adjusted to reflect fair value at each period end, with any increase or decrease in the fair value being recorded in results of operations as adjustments to fair value of derivatives. At December 31, 2016 and 2015, the Company identified the following liability that is required to be presented on the balance sheet at fair value (see Note 7): Fair Value Fair Value Measurements at As of December 31, 2016 Description December 31, 2016 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Derivative liability - conversion feature $ 149,269 - 149,269 - Total $ 149,269 - 149,269 - Fair Value Fair Value Measurements at As of December 31, 2015 Description December 31, 2015 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Derivative liability - conversion feature $ 302,580 - 302,580 - Total $ 302,580 - 302,580 - |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In January 2017, the FASB issued Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory In August 2016, the FASB issued ASU 2016-15 , Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ASU 2016-02 In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances. |
Reclassifications | RECLASSIFICATIONS - Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings, financial position or cash flows. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Fair Value of Derivative Liability | At December 31, 2016 and 2015, the Company identified the following liability that is required to be presented on the balance sheet at fair value (see Note 7): Fair Value Fair Value Measurements at As of December 31, 2016 Description December 31, 2016 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Derivative liability - conversion feature $ 149,269 - 149,269 - Total $ 149,269 - 149,269 - Fair Value Fair Value Measurements at As of December 31, 2015 Description December 31, 2015 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Derivative liability - conversion feature $ 302,580 - 302,580 - Total $ 302,580 - 302,580 - |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net at December 31, 2016 and 2015 consist of the following: 2016 2015 Furniture and fixtures $ 3,940 $ 3,940 Office equipment 5,641 5,641 9,581 9,581 Less accumulated depreciation (2,692 ) (692 ) $ 6,889 $ 8,889 |
Short-Term Notes Payables (Tabl
Short-Term Notes Payables (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Notes Payable | Short-term notes payable at December 31, 2016 and 2015 consisted of the following: 2016 2015 At Home and All Staffing acquisition note payable (1) 344,507 344,507 AOK Property Investments (2) 525,000 525,000 Note dated May 28, 2015 for $35,000; daily payment of $184.73 for 252 days 16,659 32,014 $ 886,166 $ 901,521 (1) The Company entered into a $344,507 promissory note (the “Trust Note”) with the Rose. M Gallagher Revocable Trust (the “Trust”) in conjunction with a settlement agreement dated December 23, 2014. The Trust Note bears interest at 11.0% per annum. The first payment of $25,000 was due on March 1, 2015, with the final principal and interest payment due on June 1, 2015. The Company is in default of the Trust Note and has a 90-day cure period. The Company paid $5,000 on April 8, 2015. (2) On October 1, 2014, AOK Property Investments LLC (“AOK”), a third party lender, lent the Company and its subsidiary, Advanced Life Management, LLC (“ALM”) , an aggregate of $500,000. In consideration of AOK’s delivery of an aggregate of $500,000 to the Company and ALM, the Company and ALM executed and delivered a promissory note (the “AOK Note”) in favor of AOK in the aggregate principal amount of $500,000. The AOK Note was due on January 15, 2015 and bears interest in the amount of 500,000 shares of the Company’s common stock, which interest was due and payable on or before January 15, 2015. If the Company and ALM fail to pay any portion of principal or interest when due, interest will continue to accrue and be payable to AOK at the rate of 1,667 shares of Company common stock per day until all principal and accrued interest is fully paid. On July 10, 2015, the Company and AOK entered in an amended note agreement whereby AOK loaned the Company an additional $25,000 and extended the due date of the note to December 31, 2015, and the Company agreed to issue an additional 500,000 shares of common stock for failing to pay the principal and interest on the loan when originally due. The Company recorded the issuance of 500,000 shares of common stock to AOK at a value of $1,360,907. The loan was not repaid on its extended due date and is currently in default. |
Convertible Notes (Tables)
Convertible Notes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Notes | Convertible notes at December 31, 2016 and 2015 consist of the following: 2016 2015 Convertible note dated August 28, 2015; interest of $6,667 due after 90 days; due August 28, 2017; convertible into shares of common stock at the lesser of $1.00 or 60% of the lowest trading price 25 days prior to conversion. $ - $ 55,556 Convertible note dated December 16, 2015; non-interest bearing; convertible into shares of common stock at 50% of the market price on the date of conversion. 118,684 118,684 Convertible note dated March 10, 2016; interest of $3,333 due after 90 days; due August 28, 2017; convertible into shares of common stock at the lesser of $1.00 or 60% of the lowest trading price 25 days prior to conversion. 9,363 - Convertible note dated May 5, 2016; interest at 8% per annum; due May 5, 2017; convertible into shares of common stock at 65% of the lowest trading price 20 days prior to conversion. 46,625 - Total convertible notes 174,672 174,240 Unamortized debt discount (19,395 ) (158,806 ) Convertible notes, net of discount 155,277 15,434 Less current portion (152,952 ) - Long-term portion $ 2,325 $ 15,434 |
Schedule of Rollfoward Convertible Notes | A rollfoward of the convertible note from December 31, 2014 to December 31, 2016 is below: Convertible notes, December 31, 2014 $ - Issued for cash 50,000 Accounts payable converted to convertible note 118,685 Issued for original issue discount 5,556 Debt discount related to new convertible notes (174,241 ) Amortization of debt discounts 15,434 Convertible notes, December 31, 2015 15,434 Issued for cash 77,500 Issued for original issue discount 8,028 Conversion to common stock (85,096 ) Debt discount related to new convertible notes (138,028 ) Amortization of debt discounts 277,439 Convertible notes, December 31, 2016 $ 155,277 |
Derivative Liability (Tables)
Derivative Liability (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Assumptions to Measure the Fair Value of Derivative Liability | The Company uses the Black-Scholes-Merton option pricing model with the following assumptions to measure the fair value of derivative liability at December 31, 2016 and 2015: 2016 2015 Stock price $ 0.0051 $ 0.141 Risk free rate 0.59 % 0.64 % Volatility 325 % 325 % Conversion/Exercise price $ 0.0025 - 0.007 $ 0.07-0.085 Dividend rate 0 % 0 % Terms (years) 0.1 to 0.7 0.8 to 1.7 |
Schedule of Derivative Liability Activity | The following table represents the Company’s derivative liability activity for the years ended December 31, 2016 and 2015: Derivative liability at December 31, 2014 $ - Derivative liability associated with new convertible note 305,325 Change in fair value of derivative liability during period (2,745 ) Derivative liability at December 31, 2015 302,580 Derivative liability associated with new convertible note 265,533 Change in fair value of derivative liability during period (418,844 ) Derivative liability at December 31, 2016 $ 149,269 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Outstanding Options | The following is a summary of the outstanding options, as of December 31, 2016: Weighted Weighted Weighted Average Average Average Remaining Options Intrinsic Exercise Contractual Outstanding Value Price Life Outstanding, December 31, 2014 5,888,583 4.00 $ 0.0001 2.5 Granted 425,667 2.52 Exercised - Forfeited/Expired (511,000 ) Outstanding, December 31, 2015 5,803,250 3.89 0.0001 1.5 Granted - Exercised - Forfeited/Expired - Outstanding, December 31, 2016 5,803,250 3.89 0.0001 0.5 Exercisable, December 31, 2016 5,777,000 3.89 0.0001 0.5 |
Schedule of Weighted Average Assumptions Value | Weighted average assumptions in the calculation of option value: Risk-free interest rate 0.83 % Expected life of the options 4 years Expected volatility 268 % Expected dividend yield 0 % Forfeiture rate 0 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | A reconciliation of income taxes computed at the United States federal statutory income tax rate to the provision for income taxes for the years ended December 31, 2016 and 2015 is as follows: 2016 2015 Federal statutory rates $ 786,859 $ (5,074,386 ) State income taxes, net of federal effect 118,376 (763,397 ) Gain on discontinued operations (1,658,314 ) - Other permanent differences (2,296 ) 88,259 Valuation allowance against net deferred tax assets 755,375 5,749,524 $ - $ - |
Schedule of Deferred Tax Assets | The tax effects of temporary differences that give rise to significant portions of the deferred tax asset at December 31, 2016 and 2015 is as follows: 2016 2015 Deferred income tax assets: Net operation loss carryforwards 1,618,174 1,494,954 Property, equipment and intangibles 1,635,587 1,635,587 Share-based compensation 20,015,035 19,382,880 Book to tax differences for allowance for uncollectible accounts 283,658 283,658 Total deferred income tax assets 23,552,454 22,797,079 Less: valuation allowance (23,552,454 ) (22,797,079 ) Total deferred income tax asset $ - $ - |
Restatement of Previously Iss29
Restatement of Previously Issued Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Summary of Restated Financial Statements | The following tables present the restated financial statements as of and for the year ended December 31, 2015. All the adjustments are a result of removing BHCA from the Company’s consolidated financial statements. ACCELERA INNOVATIONS, INC. BALANCE SHEET AS OF DECEMBER 31, 2015 As Originally Amount of Presented Restatement As Restated ASSETS Current Assets: Cash $ 474,564 $ (474,564 ) $ 0 Prepaid expenses 29,793 0 29,793 Total current assets 504,357 (474,564 ) 29,793 Property and equipment, net 8,889 0 8,889 Security deposit 1,805 0 1,805 TOTAL ASSETS $ 515,051 $ (474,564 ) $ 40,487 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current Liabilities: Cash overdraft $ 0 $ 6,624 $ 6,624 Short-term note payable 901,521 0 901,521 Subordinated unsecured note payable 4,550,000 (4,550,000 ) 0 Advanced from related party 243,799 0 243,799 Accounts payable 474,510 (65,591 ) 408,919 Accrued expenses 427,764 (105,183 ) 322,581 Derivative liability 302,580 0 302,580 Total current liabilities 6,900,174 (4,714,150 ) 2,186,024 Convertible note 15,434 0 15,434 TOTAL LIABILITIES 6,915,608 (4,714,150 ) 2,201,458 STOCKHOLDERS’ DEFICIT Preferred stock 20 0 20 Common stock 4,501 0 4,501 Additional paid-in capital 57,522,043 0 57,522,043 Accumulated deficit (63,927,121 ) 4,239,586 (59,687,535 ) Total stockholders’ deficit (6,400,557 ) 4,239,586 (2,160,971 ) TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 515,051 $ (474,564 ) $ 40,487 ACCELERA INNOVATIONS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS YEAR ENDED DECEMBER 31, 2015 As Originally Amount of Presented Restatement As Restated Revenues $ 3,623,131 $ (2,489,416 ) $ 1,133,715 Cost of revenues 1,856,401 (1,698,690 ) 157,711 Gross profit 1,766,730 (790,726 ) 976,004 Operating expenses: General and administrative expenses 14,892,236 (899,715 ) 13,992,521 Total operating expenses 14,892,236 (899,715 ) 13,992,521 Loss from operations (13,125,506 ) 108,989 (13,016,517 ) Other income (expense) Interest expense and financing costs (1,801,903 ) 0 (1,801,903 ) Change in fair value of derivative liability 2,745 0 2,745 Total other income (expenses) (1,799,158 ) 0 (1,799,158 ) Loss before provision for taxes (14,924,664 ) 108,989 (14,815,675 ) Provision for income taxes 0 0 0 Net loss $ (14,924,664 ) $ 108,989 $ (14,815,675 ) Preferred stock dividend 41,413 0 41,413 Net loss attributed to common stockholders $ (14,966,077 ) $ 108,989 $ (14,857,088 ) Weighted average shares outstanding - basic and diluted 42,919,132 0 42,919,132 Loss per share - basic and diluted $ (0.35 ) $ 0.00 $ (0.35 ) ACCELERA INNOVATIONS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2015 As Originally Amount of Presented Restatement As Restated OPERATING ACTIVITIES: Net loss $ (14,924,664 ) $ 108,989 $ (14,815,675 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 1,259 0 1,259 Stock options expense 4,265,889 0 4,265,889 Shares issued for services 7,731,493 0 7,731,493 Shares issued for extending loan payment terms 1,437,487 0 1,437,487 Amortization of debt discount 15,434 0 15,434 Change in fair value of derivative liability (2,745 ) 0 (2,745 ) Financing costs associated with convertible note 136,640 0 136,640 Offering cost for preferred stock subscription 141,430 0 141,430 Change in current assets and liabilities: 0 Accounts receivable 605,796 (452,318 ) 153,478 Prepaid expenses and current assets (23,767 ) 0 (23,767 ) Accounts payable 385,821 (65,591 ) 320,230 Accrued expenses 200,708 (5,721 ) 194,987 Net cash used in operating activities (29,219 ) (414,641 ) (443,860 ) INVESTING ACTIVITIES: Purchase of property and equipment (3,767 ) 0 (3,767 ) Net cash used in investing activities (3,767 ) 0 (3,767 ) FINANCING ACTIVITIES: Proceeds from the sale of stock 15,000 0 15,000 Proceeds from convertible notes 50,000 0 50,000 Proceeds from notes payable 250,000 0 250,000 Payment on notes payable (74,301 ) 0 (74,301 ) Cash overdraft 0 (5,061 ) (5,061 ) Advances from (payments to) related parties 211,989 0 211,989 Net cash provided by financing activities 452,688 (5,061 ) 447,627 NET INCREASE (DECREASE) IN CASH 419,702 (419,702 ) 0 CASH, BEGINNING BALANCE 54,862 (54,862 ) 0 CASH, ENDING BALANCE $ 474,564 $ (474,564 ) $ 0 CASH PAID FOR: Interest $ 0 $ 0 $ 0 Income taxes $ 0 $ 0 $ 0 NON-CASH INVESTING AND FINANCING ACTIVITIES: Convertible notes and accrued interest converted to common stock $ 0 $ 0 $ 0 Convertible note issued for liabilities $ 118,685 $ 0 $ 118,685 |
Organization and Basis of Pre30
Organization and Basis of Presentation (Details Narrative) - $ / shares | Jun. 13, 2011 | Dec. 31, 2016 | Dec. 31, 2015 |
Common stock par value | $ 0.0001 | $ 0.0001 | |
Number of shares agree to issue for cancellation | 796,671 | ||
Equity ownership percentage | 100.00% | 100.00% | |
Common stock, shares issued | 69,569,444 | 45,011,216 | |
Common stock, shares outstanding | 69,569,444 | 45,011,216 | |
Synergistic Holdings LLC [Member] | |||
Number of shares agreed to acquire by entity | 17,000,000 | ||
Common stock par value | $ 0.0001 | ||
Equity ownership percentage | 93.15% | ||
Common stock, shares issued | 18,250,000 | ||
Common stock, shares outstanding | 18,250,000 | ||
Accelerated Venture Partners, LLC [Member] | |||
Common stock par value | $ 0.0001 | ||
Number of stock shares for tender issuance | 3,750,000 | ||
Number of shares agree to issue for cancellation | 5,000,000 | ||
Equity ownership percentage | 6.85% |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Details Narrative) | May 07, 2015 | Dec. 31, 2016USD ($)Integer$ / sharesshares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014Integer | Dec. 31, 2013Integer |
Number of service centers | Integer | 1 | ||||
Ownership percentage | 100.00% | 100.00% | |||
Cash equivalents | |||||
Percentage of allowance for accounts greater than 180 days | 100.00% | ||||
Percentage of convertible preferred stock authorized to issue | 8.00% | ||||
Proceeds from investors | $ 403,092 | $ 243,799 | |||
Preferred stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||
Preferred stock aggregate amount | $ 793,892 | ||||
Tax benefits description | greater than 50% | ||||
Investors [Member] | |||||
Percentage of convertible preferred stock authorized to issue | 8.00% | ||||
Proceeds from investors | $ 652,462 | ||||
Sale of stock issued during period | shares | 198,473 | ||||
Preferred stock, par value | $ / shares | $ 4 | ||||
Preferred stock aggregate amount | $ 793,892 | ||||
Preferred stock subscription payable | $ 141,430 | ||||
8% Convertible Preferred Stock [Member] | |||||
Convertible preferred stock authorized to issue, date | May 7, 2015 | ||||
Subscription Agreement [Member] | Investors [Member] | |||||
Number of investors entered into subscription agreement | Integer | 13 | 13 | |||
Percentage of convertible preferred stock authorized to issue | 8.00% | 8.00% |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Schedule of Fair Value of Derivative Liability (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative liability - conversion feature | $ 149,269 | $ 302,580 | |
Total | 149,269 | 302,580 | |
Level 1 [Member] | |||
Derivative liability - conversion feature | |||
Total | |||
Level 2 [Member] | |||
Derivative liability - conversion feature | 149,269 | 302,580 | |
Total | 149,269 | 302,580 | |
Level 3 [Member] | |||
Derivative liability - conversion feature | |||
Total |
Balance Sheet Information (Deta
Balance Sheet Information (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Depreciation expense | $ 2,000 | $ 1,259 |
Balance Sheet Information - Sch
Balance Sheet Information - Schedule of Property and Equipment (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Property and equipment, gross | $ 9,581 | $ 9,581 |
Less accumulated depreciation | (2,692) | (692) |
Property and equipment, net | 6,889 | 8,889 |
Furniture and Fixtures [Member] | ||
Property and equipment, gross | 3,940 | 3,940 |
Office Equipment [Member] | ||
Property and equipment, gross | $ 5,641 | $ 5,641 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Net loss | $ (1,925,294) | $ (14,857,675) |
Accumulated deficit | $ 61,612,829 | $ 59,687,535 |
Short-Term Notes Payables (Deta
Short-Term Notes Payables (Details Narrative) - USD ($) | Jul. 10, 2015 | Apr. 08, 2015 | Oct. 02, 2014 | Dec. 31, 2016 | Dec. 31, 2015 |
Issuance of common stock | $ 87,106 | ||||
AOK Property Investments [Member] | |||||
Issuance of common stock, shares | 500,000 | ||||
Issuance of common stock | $ 1,360,907 | ||||
AOK Property Investments [Member] | Amended Note Agreement [Member] | |||||
Promissory note periodic payment | $ 25,000 | ||||
Debt instrument due date | Dec. 31, 2015 | ||||
Issuance of common stock, shares | 500,000 | ||||
AOK Property Investments [Member] | Third Party Lender [Member] | |||||
Aggregate amount of property investments | $ 500,000 | ||||
Issuance of common stock, shares | 1,667 | ||||
Advanced Life Management [Member] | AOK Note [Member] | |||||
Promissory note principal amount | $ 500,000 | ||||
Debt instrument due date | Jan. 15, 2015 | ||||
Consideration of promissory note | $ 500,000 | ||||
Debt instrument interest amount | $ 500,000 | ||||
Issuance of common stock, shares | 500,000 | ||||
At Home and All Staffing Acquisition Note Payable [Member] | |||||
Promissory note principal amount | $ 344,507 | ||||
Promissory note interest rate | 11.00% | ||||
Promissory note periodic payment | $ 25,000 | ||||
Debt instrument due date | Mar. 1, 2015 | ||||
Final debt instrument due date | Jun. 1, 2015 | ||||
Promissory note default day | 90 days | ||||
Repayment of debt | $ 5,000 | ||||
Payment for cost of collection | $ 1,000 |
Short-Term Notes Payables - Sch
Short-Term Notes Payables - Schedule of Short-Term Notes Payable (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | |
Short-term notes payable | $ 886,166 | $ 901,521 | |
At Home and All Staffing Acquisition Note Payable [Member] | |||
Short-term notes payable | [1] | 344,507 | 344,507 |
AOK Property Investments [Member] | |||
Short-term notes payable | [2] | 525,000 | 525,000 |
Note dated May 28, 2015 for $35,000; Daily Payment of $184.73 for 252 Days [Member] | |||
Short-term notes payable | $ 16,659 | $ 32,014 | |
[1] | The Company entered into a $344,507 promissory note (the "Trust Note") with the Rose. M Gallagher Revocable Trust ("Trust") in conjunction with the Settlement Agreement (see Note 7). The Trust Note bears interest at 11.0% per annum. The first payment of $25,000 is due on March 1, 2015. The final principal and interest payment is due on June 1, 2015. The entire outstanding principal balance of Trust Note may be prepaid at any time, in whole or in part, without premium or penalty, and the interest accrued on the remaining principal balance shall be adjusted accordingly. The Company is in default of the Trust Note and has a 90-day cure period. The Company paid $5,000 on April 8, 2015. | ||
[2] | On October 1, 2014, AOK Property Investments LLC ("AOK"), a third party lender, lent the Company and its subsidiary, SCI, an aggregate of $500,000. In consideration of AOK's delivery of an aggregate of $500,000 to the Company and ALM, the Company and ALM executed and delivered a promissory note (the "AOK Note") in favor of AOK in the aggregate principal amount of $500,000. The AOK Note is due on January 15, 2015 and bears interest in the amount of 500,000 shares of the Company's common stock, which interest is due and payable on or before January 15, 2015. If the Company and ALM fail to pay any portion of principal or interest when due, interest will continue to accrue and be payable to AOK at the rate of 1,667 shares of Company common stock per day until all principal and accrued interest is fully paid. On July 10, 2015, the Company and AOK entered in an amended note agreement whereby AOK loaned the Company an additional $25,000 and extended the due date of the note to December 31, 2015, and the Company agreed to issue an additional 500,000 shares of common stock for failing to pay the principal and interest on the loan when originally due. The Company recorded the issuance of 500,000 shares of common stock to AOK at a value of $1,360,907. The loan was not repaid on its extended due date and is currently in default. |
Short-Term Notes Payables - S38
Short-Term Notes Payables - Schedule of Short-Term Notes Payable (Details) (Parenthetical) - Note Dated May 28, 2015 for $35,000; Daily Payment of $184.73 for 252 Days [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | May 28, 2015 | |
Note principal amount | $ 35,000 | |
Note daily payment | $ 185 | |
Note due date | 252 days |
Convertible Notes (Details Narr
Convertible Notes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | ||
Interest expense related to amortization of debt discount | $ 277,439 | $ 15,434 |
Convertible Notes - Schedule of
Convertible Notes - Schedule of Convertible Notes (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Convertible notes | $ 174,672 | $ 174,240 |
Unamortized debt discount | (19,395) | (158,806) |
Convertible notes, net of discount | 155,277 | 15,434 |
Less current portion | (155,277) | |
Long-term portion | 15,434 | |
Convertible Note Dated August 28, 2015 [Member] | ||
Convertible notes | 55,556 | |
Convertible Note Dated December 16, 2015 [Member] | ||
Convertible notes | 118,684 | 118,684 |
Convertible Note Dated March 10, 2016 [Member] | ||
Convertible notes | 9,363 | |
Convertible Note Dated May 5, 2016 [Member] | ||
Convertible notes | $ 46,625 |
Convertible Notes - Schedule 41
Convertible Notes - Schedule of Convertible Notes (Details) (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Convertible Note Dated August 28, 2015 [Member] | ||
Convertible note, interest rate | $ 6,667 | $ 6,667 |
Convertible note interest free days | 90 days | 90 days |
Convertible note due date | Aug. 28, 2017 | Aug. 28, 2017 |
Convertible note converted lowest trading price percentage | 60.00% | 60.00% |
Convertible note trading days prior to conversion | 25 days | 25 days |
Debt conversion price per share | $ 1 | $ 1 |
Convertible Note Dated December 16, 2015 [Member] | ||
Convertible note converted lowest trading price percentage | 50.00% | 50.00% |
Convertible Note Dated March 10, 2016 [Member] | ||
Convertible note, interest rate | $ 3,333 | $ 3,333 |
Convertible note interest free days | 90 days | 90 days |
Convertible note due date | Aug. 28, 2017 | Aug. 28, 2017 |
Convertible note converted lowest trading price percentage | 60.00% | 60.00% |
Convertible note trading days prior to conversion | 25 days | 25 days |
Debt conversion price per share | $ 1 | $ 1 |
Convertible Note Dated May 5, 2016 [Member] | ||
Convertible note due date | May 5, 2017 | May 5, 2017 |
Convertible note converted lowest trading price percentage | 65.00% | 65.00% |
Convertible note trading days prior to conversion | 20 days | 20 days |
Convertible note interest rate | 8.00% | 8.00% |
Convertible Notes - Schedule 42
Convertible Notes - Schedule of Rollforward Convertible Notes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | ||
Convertible notes, December 31, 2015 | $ 15,434 | |
Issued for cash | 77,500 | 50,000 |
Accounts payable converted to convertible note | 118,685 | |
Issued for original issue discount | 8,028 | 5,556 |
Debt discount related to new convertible notes | (138,028) | (174,241) |
Conversion to common stock | (85,096) | |
Amortization of debt discounts | 277,439 | 15,434 |
Convertible notes, September 30, 2016 | $ 155,277 | $ 15,434 |
Derivative Liability - Schedule
Derivative Liability - Schedule of Assumptions to Measure the Fair Value of Derivative Liability (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Stock price | $ 0.0051 | $ 0.141 |
Risk free rate | 0.59% | 0.64% |
Volatility | 325.00% | 325.00% |
Dividend rate | 0.00% | 0.00% |
Minimum [Member] | ||
Conversion/ Exercise price | $ 0.0025 | $ 0.07 |
Term (years) | 1 month 6 days | 9 months 18 days |
Maximum [Member] | ||
Conversion/ Exercise price | $ 0.007 | $ 0.085 |
Term (years) | 8 months 12 days | 1 year 8 months 12 days |
Derivative Liability - Schedu44
Derivative Liability - Schedule of Derivative Liability Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative liability, beginning balance | $ 302,580 | |
Derivative liability associated with new convertible note | 265,533 | 305,325 |
Change in fair value of derivative liability during period | (418,844) | (2,745) |
Derivative liability, ending balance | $ 149,269 | $ 302,580 |
Stockholders' Deficit (Details
Stockholders' Deficit (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | May 07, 2015 | |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred stock, par value | $ 0.0001 | $ 0.0001 | |
Percentage of designated convertible preferred stock | 8.00% | ||
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, par value | $ 0.0001 | $ 0.0001 | |
Common stock, shares issued | 69,569,444 | 45,011,216 | |
Common stock, shares outstanding | 69,569,444 | 45,011,216 | |
Conversion of stock shares issued | 24,558,228 | ||
Conversion of stock value issued | $ 87,106 | ||
Issuance of common stock for service | 3,810,290 | ||
Issuance of common stock for service, value | $ 7,731,493 | ||
Issuance of common stock | 25,000 | ||
Proceeds from issuance of common stock | $ 15,000 | ||
Loan Payment Terms [Member] | |||
Issuance of common stock for service | 500,000 | ||
Issuance of common stock for service, value | $ 1,360,907 | ||
8% Convertible Preferred Stock [Member] | |||
Preferred stock, shares authorized | 500,000 | ||
Preferred stock, par value | $ 4 | ||
Percentage of designated convertible preferred stock | 8.00% | ||
Preferred stock conversion price | $ 4 | ||
Preferred stock, shares issued | 198,473 | ||
Preferred stock, shares outstanding | 198,473 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Option exercisable price per share | $ 4 | |
Proceeds from issuance of private placements | $ 85,000,000 | |
Stock based compensation expense | 1,616,144 | $ 4,265,889 |
Unrecognized compensation cost related to unvested stock-based compensation awards | $ 30,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Outstanding Options (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Options Outstanding, Beginning Balance | 5,803,250 | 5,888,583 |
Options Outstanding, Granted | 425,667 | |
Options Outstanding, Exercised | ||
Options Outstanding, Forfeited/expires | (511,000) | |
Options Outstanding, Ending Balance | 5,803,250 | 5,803,250 |
Options Outstanding, Exercisable | 5,777,000 | |
Weighted Average Intrinsic Value, Beginning Balance | $ 3.89 | $ 4 |
Weighted Average Intrinsic Value, Granted | 2.52 | |
Weighted Average Intrinsic Value, Ending Balance | 3.89 | 3.89 |
Weighted Average Intrinsic Value, Exercisable | 3.89 | |
Weighted Average Exercise Price, Options Outstanding, Beginning Balance | 0.0001 | 0.0001 |
Weighted Average Exercise Price, Options Outstanding Ending Balance | 0.0001 | $ 0.0001 |
Weighted Average Exercise Price, Exercisable | $ 0.0001 | |
Weighted Average Remaining Contractual Life, Beginning Balance | 1 year 6 months | 2 years 6 months |
Weighted Average Remaining Contractual Life, Ending Balance | 6 months | 1 year 6 months |
Weighted Average Remaining Contractual Life, Exercisable | 6 months |
Stock-Based Compensation - Sc48
Stock-Based Compensation - Schedule of Weighted Average Assumptions Value (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Risk-free interest rate | 0.83% |
Expected life of the options | 4 years |
Expected volatility | 268.00% |
Expected dividend yield | 0.00% |
Forfeiture rate | 0.00% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | May 07, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Cancellation of shares | 796,671 | ||
Amount owed to forgive indebtedness | $ 1,018,618 | ||
Advances from related party | 403,092 | $ 243,799 | |
Synergistic Licensing Agreement [Member] | |||
License fee | $ 29,414,819 | ||
Common shares upon completion and acceptance of each installation of software | 10,000 | ||
Installation of software cost | $ 10,000 | ||
December 31, 2015 [Member] | |||
Deferred reimbursable distribution amount | $ 5,000,000 | ||
December 31, 2016 [Member] | |||
Deferred reimbursable distribution amount | 7,500,000 | ||
December 31, 2017 [Member] | |||
Deferred reimbursable distribution amount | 10,000,000 | ||
December 31, 2018 [Member] | |||
Deferred reimbursable distribution amount | 6,914,819 | ||
Minimum [Member] | |||
Reimbursable distribution and commercialization expenses | 585,181 | ||
Maximum [Member] | |||
Reimbursable distribution and commercialization expenses | $ 29,414,819 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Operating loss carryforwards | $ 23,552,000 | |
Effective income tax statutory rates, expiration year | 2,033 | |
Change in valuation allowance | $ 755,375 | $ 5,749,524 |
Valuation allowance | (23,552,454) | $ (22,797,079) |
Net operating loss carry-forwards | $ 3,900,000 | |
Net operating loss carry-forwards expiration year | 2,033 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rates | $ 786,859 | $ (5,074,386) |
State income taxes, net of federal effect | 118,376 | (763,397) |
Gain on discontinued operations | (1,658,314) | |
Other permanent differences | (2,296) | 88,259 |
Valuation allowance against net deferred tax assets | 755,375 | 5,749,524 |
Total |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Net operation loss carryforwards | $ 1,618,174 | $ 1,494,954 |
Property, equipment and intangibles | 1,635,587 | 1,635,587 |
Share-based compensation | 20,015,035 | 19,382,880 |
Book to tax differences for allowance for uncollectible accounts | 283,658 | 283,658 |
Total deferred income tax assets | 23,552,454 | 22,797,079 |
Less: valuation allowance | (23,552,454) | (22,797,079) |
Total deferred income tax asset |
Restatement of Previously Iss53
Restatement of Previously Issued Financial Statements (Details Narrative) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 11, 2013 |
Ownership percentage | 100.00% | 100.00% | |
Common stock value | $ 6,957 | $ 4,501 | |
Behavioral Health Care Associates, Ltd [Member] | |||
Ownership percentage | 100.00% | ||
Common stock value | $ 4,550,000 |
Restatement of Previously Iss54
Restatement of Previously Issued Financial Statements - Summary of Restated Financial Statements (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current Assets: | |||
Cash | |||
Prepaid expenses | 29,793 | ||
Total current assets | 2,750 | 29,793 | |
Property and equipment, net | 6,889 | 8,889 | |
Security deposit | 1,805 | ||
TOTAL ASSETS | 9,639 | 40,487 | |
Current Liabilities: | |||
Cash overdraft | 6,624 | ||
Short-term notes payable | 886,166 | 901,521 | |
Subordinated unsecured note payable | 0 | ||
Advances from related party | 403,092 | 243,799 | |
Accounts payable | 465,379 | 408,919 | |
Accrued expenses | 333,471 | 322,581 | |
Derivative liability | 149,269 | 302,580 | |
Total current liabilities | 2,392,654 | 2,186,024 | |
Convertible note | 15,434 | ||
TOTAL LIABILITIES | 2,392,654 | 2,201,458 | |
STOCKHOLDERS' DEFICIT | |||
Preferred stock | |||
Common stock | 6,957 | 4,501 | |
Additional paid-in capital | 59,222,837 | 57,522,043 | |
Accumulated deficit | (61,612,829) | (59,687,535) | |
Total stockholders' deficit | (2,383,015) | (2,160,971) | $ (1,589,057) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | 9,639 | 40,487 | |
Revenues | 2,750 | 1,133,715 | |
Cost of revenues | 157,711 | ||
Gross profit | 2,750 | 976,004 | |
Operating expenses: | |||
General and administrative expenses | 1,900,962 | 13,992,521 | |
Total operating expenses | 1,900,962 | 13,992,521 | |
Loss from operations | (1,898,212) | (13,016,517) | |
Other income (expense) | |||
Interest expense and financing costs | (445,926) | (1,801,903) | |
Change in fair value of derivative liability | 418,844 | 2,745 | |
Total other income (expenses) | (27,082) | (1,799,158) | |
Loss before provision for taxes | (1,925,294) | (14,815,675) | |
Provision for income taxes | |||
Net loss | (1,925,294) | (14,857,675) | |
Preferred stock dividend | 47,503 | 41,413 | |
Net loss attributed to common stockholders | $ (1,972,797) | $ (14,857,088) | |
Weighted average shares outstanding - basic and diluted | 48,727,220 | 42,919,132 | |
Loss per share - basic and diluted | $ (0.04) | $ (0.35) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | $ 2,000 | $ 1,259 | |
Stock options expense | 1,616,144 | 4,265,889 | |
Shares issued for services | 7,731,493 | ||
Shares issued for extending loan payment terms | 1,437,487 | ||
Amortization of debt discount | 277,439 | 15,434 | |
Change in fair value of derivative liability | (418,844) | (2,745) | |
Financing costs associated with convertible note | 135,533 | 136,640 | |
Offering cost for preferred stock subscription | 141,430 | ||
Change in current assets and liabilities: | |||
Accounts receivable | (2,750) | 153,478 | |
Prepaid expenses and current assets | 31,598 | (23,767) | |
Accounts payable | 56,460 | 320,230 | |
Accrued expenses | 12,900 | 194,987 | |
Net cash used in operating activities | (214,814) | (443,860) | |
INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (3,767) | ||
Net cash used in investing activities | (3,767) | ||
FINANCING ACTIVITIES: | |||
Proceeds from the sale of stock | 15,000 | ||
Proceeds from convertible notes | 77,500 | 50,000 | |
Proceeds from notes payable | 250,000 | ||
Payment on notes payable | (15,355) | (74,301) | |
Cash overdraft | (6,624) | (5,061) | |
Advances from (payments to) related parties | 159,293 | 211,989 | |
Net cash provided by financing activities | 214,814 | 447,627 | |
NET INCREASE (DECREASE) IN CASH | |||
CASH, BEGINNING BALANCE | |||
CASH, ENDING BALANCE | |||
CASH PAID FOR: | |||
Interest | |||
Income taxes | |||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Convertible notes and accrued interest converted to common stock | 87,106 | ||
Convertible note issued for liabilities | 118,685 | ||
As Originally Presented [Member] | |||
Current Assets: | |||
Cash | 474,564 | ||
Prepaid expenses | 29,793 | ||
Total current assets | 504,357 | ||
Property and equipment, net | 8,889 | ||
Security deposit | 1,805 | ||
TOTAL ASSETS | 515,051 | ||
Current Liabilities: | |||
Cash overdraft | 0 | ||
Short-term notes payable | 901,521 | ||
Subordinated unsecured note payable | 4,550,000 | ||
Advances from related party | 243,799 | ||
Accounts payable | 474,510 | ||
Accrued expenses | 427,764 | ||
Derivative liability | 302,580 | ||
Total current liabilities | 6,900,174 | ||
Convertible note | 15,434 | ||
TOTAL LIABILITIES | 6,915,608 | ||
STOCKHOLDERS' DEFICIT | |||
Preferred stock | 20 | ||
Common stock | 4,501 | ||
Additional paid-in capital | 57,522,043 | ||
Accumulated deficit | (63,927,121) | ||
Total stockholders' deficit | (6,400,557) | ||
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | 515,051 | ||
Revenues | 3,623,131 | ||
Cost of revenues | 1,856,401 | ||
Gross profit | 1,766,730 | ||
Operating expenses: | |||
General and administrative expenses | 14,892,236 | ||
Total operating expenses | 14,892,236 | ||
Loss from operations | (13,125,506) | ||
Other income (expense) | |||
Interest expense and financing costs | (1,801,903) | ||
Change in fair value of derivative liability | 2,745 | ||
Total other income (expenses) | (1,799,158) | ||
Loss before provision for taxes | (14,924,664) | ||
Provision for income taxes | 0 | ||
Net loss | (14,924,664) | ||
Preferred stock dividend | 41,413 | ||
Net loss attributed to common stockholders | $ (14,966,077) | ||
Weighted average shares outstanding - basic and diluted | 42,919,132 | ||
Loss per share - basic and diluted | $ (0.35) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | $ 1,259 | ||
Stock options expense | 4,265,889 | ||
Shares issued for services | 7,731,493 | ||
Shares issued for extending loan payment terms | 1,437,487 | ||
Amortization of debt discount | 15,434 | ||
Change in fair value of derivative liability | (2,745) | ||
Financing costs associated with convertible note | 136,640 | ||
Offering cost for preferred stock subscription | 141,430 | ||
Change in current assets and liabilities: | |||
Accounts receivable | 605,796 | ||
Prepaid expenses and current assets | (23,767) | ||
Accounts payable | 385,821 | ||
Accrued expenses | 200,708 | ||
Net cash used in operating activities | (29,219) | ||
INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (3,767) | ||
Net cash used in investing activities | (3,767) | ||
FINANCING ACTIVITIES: | |||
Proceeds from the sale of stock | 15,000 | ||
Proceeds from convertible notes | 50,000 | ||
Proceeds from notes payable | 250,000 | ||
Payment on notes payable | (74,301) | ||
Cash overdraft | 0 | ||
Advances from (payments to) related parties | 211,989 | ||
Net cash provided by financing activities | 452,688 | ||
NET INCREASE (DECREASE) IN CASH | 419,702 | ||
CASH, BEGINNING BALANCE | 474,564 | 54,862 | |
CASH, ENDING BALANCE | 474,564 | ||
CASH PAID FOR: | |||
Interest | 0 | ||
Income taxes | 0 | ||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Convertible notes and accrued interest converted to common stock | 0 | ||
Convertible note issued for liabilities | 118,685 | ||
Amount of Restatement[Member] | |||
Current Assets: | |||
Cash | (474,564) | ||
Prepaid expenses | 0 | ||
Total current assets | (474,564) | ||
Property and equipment, net | 0 | ||
Security deposit | 0 | ||
TOTAL ASSETS | (474,564) | ||
Current Liabilities: | |||
Cash overdraft | 6,624 | ||
Short-term notes payable | 0 | ||
Subordinated unsecured note payable | (4,550,000) | ||
Advances from related party | 0 | ||
Accounts payable | (65,591) | ||
Accrued expenses | (105,183) | ||
Derivative liability | 0 | ||
Total current liabilities | (4,714,150) | ||
Convertible note | 0 | ||
TOTAL LIABILITIES | (4,714,150) | ||
STOCKHOLDERS' DEFICIT | |||
Preferred stock | 0 | ||
Common stock | 0 | ||
Additional paid-in capital | 0 | ||
Accumulated deficit | 4,239,586 | ||
Total stockholders' deficit | 4,239,586 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | (474,564) | ||
Revenues | (2,489,416) | ||
Cost of revenues | (1,698,690) | ||
Gross profit | (790,726) | ||
Operating expenses: | |||
General and administrative expenses | (899,715) | ||
Total operating expenses | (899,715) | ||
Loss from operations | 108,989 | ||
Other income (expense) | |||
Interest expense and financing costs | 0 | ||
Change in fair value of derivative liability | 0 | ||
Total other income (expenses) | 0 | ||
Loss before provision for taxes | 108,989 | ||
Provision for income taxes | 0 | ||
Net loss | 108,989 | ||
Preferred stock dividend | 0 | ||
Net loss attributed to common stockholders | $ 108,989 | ||
Weighted average shares outstanding - basic and diluted | 0 | ||
Loss per share - basic and diluted | $ 0 | ||
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | $ 0 | ||
Stock options expense | 0 | ||
Shares issued for services | 0 | ||
Shares issued for extending loan payment terms | 0 | ||
Amortization of debt discount | 0 | ||
Change in fair value of derivative liability | 0 | ||
Financing costs associated with convertible note | 0 | ||
Offering cost for preferred stock subscription | 0 | ||
Change in current assets and liabilities: | |||
Accounts receivable | (452,318) | ||
Prepaid expenses and current assets | 0 | ||
Accounts payable | (65,591) | ||
Accrued expenses | (5,721) | ||
Net cash used in operating activities | (414,641) | ||
INVESTING ACTIVITIES: | |||
Purchase of property and equipment | 0 | ||
Net cash used in investing activities | 0 | ||
FINANCING ACTIVITIES: | |||
Proceeds from the sale of stock | 0 | ||
Proceeds from convertible notes | 0 | ||
Proceeds from notes payable | 0 | ||
Payment on notes payable | 0 | ||
Cash overdraft | (5,061) | ||
Advances from (payments to) related parties | 0 | ||
Net cash provided by financing activities | (5,061) | ||
NET INCREASE (DECREASE) IN CASH | (419,702) | ||
CASH, BEGINNING BALANCE | $ (474,564) | (54,862) | |
CASH, ENDING BALANCE | (474,564) | ||
CASH PAID FOR: | |||
Interest | 0 | ||
Income taxes | 0 | ||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Convertible notes and accrued interest converted to common stock | 0 | ||
Convertible note issued for liabilities | $ 0 |