| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES Established
in 1969, Advanzeon Solutions, Inc., (formerly Comprehensive Care Corp.) (“Advanzeon”, “we”, “Parent”,
or the “Company”), through its wholly-owned subsidiary Pharmacy Value Management Solutions, Inc.,(“PVMS”)
and its wholly-owned subsidiaries during 2015, and partly in 2016, provided managed care services by acting as the administrator
for certain administrative service agreements in the behavioral health and substance abuse fields. We primarily offered these
services to commercial, Medicare, Medicaid, Children’s Health Insurance Program (“CHIP”) health plans, as well
as self-insured companies. Our managed care operations consisted solely of servicing administrative service agreements. Starting
in July of 2015, we implemented our comprehensive sleep apnea program, called “SleepMaster Solutions” ™. SleepMaster
Solutions (“SMS”) utilizes an administrative system for the convenient identification/testing and therapy of Obstructive
Sleep Apnea (“OSA”). We partnered with a national health care provider by initiating a sleep apnea wellness program
whereby we screened, tested and when needed, offered treatment programs for treating this disorder. We also contracted with a
union to treat its driver members. Beginning in 2017, our only business was our SMS sleep apnea program. The
Company has elected to not adopt the option available under United States generally accepted accounting principles (“GAAP”)
to measure any eligible financial instruments or other items at fair market value at this time. Accordingly, the Company measures
all of its assets and liabilities on the historical cost basis of accounting, except as otherwise required by GAAP. Inter-company
accounts and transactions have been eliminated in consolidation. Certain minor reclassifications of prior period amounts have
been made to conform to the current period presentation. Use
of Estimates Accounts
Receivable Revenue
Recognition Property
and Equipment Leasehold
Improvement Fair
Value Measurements The
carrying amounts of long-term debt and estimated fair values of the attached warrants at September 30, 2019 and December 31, 2018
are as follows:
September
30, 2019 December
31, 2018
Estimated Estimated
Fair
Value of Fair
Value of
Carrying Attached Carrying Attached
Amount Warrants Amount Warrants
Convertible
promissory notes $ 7,375,173 $ — $ 5,299,923 $ —
Short term notes payable $ 4,788,016 $ — $ 4,788,016 $ —
Loan
payable related party 444,920 — 737,023 —
$ 12,608,109 $ — $ 10,824,962 $ — During
the nine month period ended September 30, 2019, there have been 47 additional convertible notes issued totaling $2,100,250 and
one note paid off totaling $25,000. Cost
of Revenues Right
of Use Assets and Lease Liabilities Income
Taxes Management
has evaluated our tax positions taken or to be taken on income tax returns that remain subject to examination (i.e., tax years
2016 and thereafter federally), and has concluded that there have been no uncertain tax positions (as defined in GAAP) taken that
require recognition or disclosure in the consolidated financial statements. In the event of any income tax-related interest or
penalties are incurred, they would be included in general and administrative expense. Stock
Options and Warrants |
