Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Aug. 31, 2014 | Jun. 30, 2015 | Feb. 28, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Aug. 31, 2014 | ||
Document Fiscal Year Focus | 2,014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | DYII | ||
Entity Common Stock, Shares Outstanding | 13,460,124 | ||
Entity Registrant Name | DYNACQ HEALTHCARE INC | ||
Entity Central Index Key | 890,908 | ||
Current Fiscal Year End Date | --08-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 116,410 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Aug. 31, 2014 | Aug. 31, 2013 |
Current assets: | ||
Cash and cash equivalents | $ 16,819,504 | $ 13,585,447 |
Accounts receivable, net of allowances of approximately $154,132,000 and $170,198,000 | 1,986,633 | 1,062,029 |
Accounts receivable, other | 380,456 | 0 |
Inventories | 298,662 | 293,565 |
Trading securities | 0 | 1,071,346 |
Interest receivable | 122,041 | 102,964 |
Prepaid expenses | 262,944 | 180,883 |
Income tax receivable | 0 | 569,430 |
Total current assets | 19,870,240 | 16,865,664 |
Investments available-for-sale | 20,678,130 | 17,458,985 |
Property and equipment, net | 6,224,136 | 6,323,657 |
Income tax receivable | 800,920 | 800,920 |
Other assets | 187,101 | 187,101 |
Total assets | 47,760,527 | 41,636,327 |
Current liabilities: | ||
Accounts payable | 1,015,856 | 1,012,328 |
Accrued liabilities | 18,512,986 | 11,845,317 |
Current portion of notes payable | 6,734 | 40,256 |
Current portion of capital lease obligations | 26,513 | 115,737 |
Total current liabilities | 19,562,089 | 13,013,638 |
Non-current liabilities: | ||
Long-term portion of notes payable | 0 | 6,744 |
Long-term portion of capital lease obligations | 41,123 | 69,978 |
Total liabilities | $ 19,603,212 | $ 13,090,360 |
Commitments and contingencies | ||
Dynacq stockholders' equity: | ||
Preferred stock, $.01 par value; 5,000,000 shares authorized, none issued or outstanding | $ 0 | $ 0 |
Common stock, $.001 par value; 100,000,000 shares authorized, 14,418,626 shares issued and 13,888,010 shares outstanding at August 31, 2014; 14,543,626 shares issued and outstanding at August 31, 2013 | 14,419 | 14,544 |
Treasury stock, 530,616 and 0 shares at August 31, 2014 and 2013, at cost | (27,061) | 0 |
Additional paid-in capital | 10,479,745 | 10,282,256 |
Accumulated other comprehensive income | 12,616,346 | 9,382,334 |
Retained earnings | 5,010,061 | 8,803,410 |
Total Dynacq stockholders' equity | 28,093,510 | 28,482,544 |
Non-controlling interest | 63,805 | 63,423 |
Total equity | 28,157,315 | 28,545,967 |
Total liabilities and equity | $ 47,760,527 | $ 41,636,327 |
Consolidated Balance Sheets _Pa
Consolidated Balance Sheets [Parenthetical] - USD ($) | Aug. 31, 2014 | Aug. 31, 2013 |
Allowance For Doubtful Accounts Receivable Current (in dollars) | $ 154,132,000 | $ 170,198,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 14,418,626 | 14,543,626 |
Common Stock, shares outstanding | 13,888,010 | 14,543,626 |
Treasury Stock, Shares | 530,616 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Net patient service revenue | $ 10,218,309 | $ 6,057,411 |
Costs and expenses: | ||
Compensation and benefits | 6,305,898 | 5,514,147 |
Medical services and supplies | 2,106,854 | 1,664,780 |
Other operating expenses | 6,628,920 | 5,956,192 |
Depreciation and amortization | 366,883 | 463,552 |
Total costs and expenses | 15,408,555 | 13,598,671 |
Operating loss | (5,190,246) | (7,541,260) |
Other income (expense): | ||
Rent and other income | 958,102 | 3,770,372 |
Interest income | 890,463 | 872,624 |
Interest expense | (451,286) | (561,071) |
Total other income, net | 1,397,279 | 4,081,925 |
Loss before income taxes from continuing operations | (3,792,967) | (3,459,335) |
Provision for income taxes | 0 | 0 |
Loss from continuing operations | (3,792,967) | (3,459,335) |
Income from discontinued operations, net of income taxes | 0 | 151,415 |
Net loss | (3,792,967) | (3,307,920) |
Less: Net (income) loss attributable to noncontrolling interest | (382) | 2,836 |
Net loss attributable to Dynacq Healthcare, Inc. | $ (3,793,349) | $ (3,305,084) |
Basic and diluted earnings (loss) per common share: | ||
Loss from continuing operations attributable to Dynacq Healthcare, Inc. (in dollars per share) | $ (0.26) | $ (0.24) |
Income from discontinued operations, net of income taxes | 0 | 0.01 |
Net loss attributable to Dynacq Healthcare, Inc. (in dollars per share) | $ (0.26) | $ (0.23) |
Basic and diluted average common shares outstanding (in shares) | 14,387,425 | 14,543,626 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Net loss | $ (3,792,967) | $ (3,307,920) |
Other comprehensive income, net of taxes: | ||
Net change in foreign currency translation adjustment, net of taxes of $-0- and $(4,414) | 0 | (8,196) |
Net change in fair value of available-for-sale securities, net of taxes of $-0- and $-0- | 3,234,012 | 971,206 |
Other comprehensive income | 3,234,012 | 963,010 |
Comprehensive loss | (558,955) | (2,344,910) |
Less comprehensive (income) loss attributable to noncontrolling interest | (382) | 2,836 |
Comprehensive loss attributable to Dynacq Healthcare, Inc. | $ (559,337) | $ (2,342,074) |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) [Parenthetical] - USD ($) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Net change in foreign currency translation adjustment, net of taxes | $ 0 | $ (4,414) |
Net change in fair value of available-for-sale securities, net of taxes | $ 0 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Foreign Currency Translation [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Unrealized Gains Losses On Securities [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] |
Balance at Aug. 31, 2012 | $ 30,781,415 | $ 14,544 | $ 0 | $ 10,172,794 | $ 8,196 | $ 8,411,128 | $ 12,108,494 | $ 66,259 |
Balance (in shares) at Aug. 31, 2012 | 14,543,626 | 0 | ||||||
Share Based Compensation | 109,462 | $ 0 | $ 0 | 109,462 | 0 | 0 | 0 | 0 |
Reclassification adjustment for foreign currency gains included in net income, net of taxes of $(4,414) | (8,196) | 0 | 0 | 0 | (8,196) | 0 | 0 | 0 |
Reclassification adjustment for gain on call of securities, available-for-sale, net of taxes of $-0- | (2,199,500) | 0 | 0 | 0 | 0 | (2,199,500) | 0 | 0 |
Unrealized gains on securities available-for-sale, net of taxes of $-0- | 3,170,706 | 0 | 0 | 0 | 0 | 3,170,706 | 0 | 0 |
Treasury Shares acquired | 0 | |||||||
Net income (loss) | (3,307,920) | 0 | 0 | 0 | 0 | 0 | (3,305,084) | (2,836) |
Balance at Aug. 31, 2013 | 28,545,967 | $ 14,544 | $ 0 | 10,282,256 | 0 | 9,382,334 | 8,803,410 | 63,423 |
Balance (in shares) at Aug. 31, 2013 | 14,543,626 | 0 | ||||||
Share Based Compensation | 197,364 | $ 0 | $ 0 | 197,364 | 0 | 0 | 0 | 0 |
Reclassification adjustment for foreign currency gains included in net income, net of taxes of $(4,414) | 0 | |||||||
Reclassification adjustment for gain on call of securities, available-for-sale, net of taxes of $-0- | 0 | |||||||
Unrealized gains on securities available-for-sale, net of taxes of $-0- | 3,234,012 | 0 | 0 | 0 | 0 | 3,234,012 | 0 | 0 |
Treasury Shares acquired | $ (27,061) | $ 0 | $ (27,061) | 0 | 0 | 0 | 0 | 0 |
Treasury shares acquired (in shares) | 530,616 | 0 | 655,616 | |||||
Treasury shares cancelled | $ 0 | $ (125) | $ 0 | 125 | 0 | 0 | 0 | 0 |
Treasury shares cancelled (in shares) | (125,000) | (125,000) | ||||||
Net income (loss) | (3,792,967) | $ 0 | $ 0 | 0 | 0 | 0 | (3,793,349) | 382 |
Balance at Aug. 31, 2014 | $ 28,157,315 | $ 14,419 | $ (27,061) | $ 10,479,745 | $ 0 | $ 12,616,346 | $ 5,010,061 | $ 63,805 |
Balance (in shares) at Aug. 31, 2014 | 14,418,626 | 530,616 |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Equity [Parenthetical] - USD ($) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Tax | $ (4,414) | |
Other Comprehensive Income (Loss), Available-for-sale Securities, before Reclassification Adjustments, Tax | 0 | |
Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Cash flows from operating activities | ||
Net loss | $ (3,792,967) | $ (3,307,920) |
Less income from discontinued operations, net of income taxes | 0 | (151,415) |
Loss from continuing operations | (3,792,967) | (3,459,335) |
Adjustments to reconcile net loss before discontinued operations to net cash from operating activities: | ||
Depreciation and amortization | 366,883 | 463,552 |
Gain on sale of assets | 0 | (27,509) |
Gain on available-for-sale and trading securities | (161,864) | (2,894,508) |
Gain on sale of investment in real estate | 0 | (480,108) |
Stock based compensation | 197,364 | 109,462 |
Foreign currency exchange (gains) losses | 14,792 | (117,176) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (924,604) | (264,065) |
Accounts receivable, other | (380,456) | 0 |
Inventories | (5,097) | 115,396 |
Prepaid expenses | (82,061) | 242,776 |
Interest receivable | (19,077) | 64,265 |
Income tax receivable | 569,430 | 67,329 |
Other assets | 0 | 68,777 |
Accounts payable | 3,527 | (1,259,108) |
Accrued liabilities | 6,640,608 | 118,575 |
Cash from continuing activities | 2,426,478 | (7,251,677) |
Cash from discontinued activities | 0 | 306,907 |
Net cash from operating activities | 2,426,478 | (6,944,770) |
Cash flows from investing activities | ||
Sale proceeds of available-for-sale securities | 0 | 2,650,000 |
Sale proceeds of investment in real estate | 0 | 2,365,017 |
Sale proceeds of trading securities | 1,233,286 | 903,949 |
Sales proceeds of equipment | 0 | 14,270 |
Purchase of equipment | (267,362) | (35,108) |
Cash from continuing activities | 965,924 | 5,898,128 |
Cash from discontinued activities | 0 | 5,245,600 |
Net cash from investing activities | 965,924 | 11,143,728 |
Cash flows from financing activities | ||
Principal payments on notes payable | (40,266) | (1,132,923) |
Payments on capital lease | (118,079) | (118,805) |
Cash from continuing activities | (158,345) | (1,251,728) |
Cash from discontinued activities | 0 | 0 |
Net cash from financing activities | (158,345) | (1,251,728) |
Net change in cash and cash equivalents | 3,234,057 | 2,947,230 |
Cash and cash equivalents at beginning of year | 13,585,447 | 10,638,217 |
Cash and cash equivalents at end of year | 16,819,504 | 13,585,447 |
Cash paid during year for: | ||
Interest | 23,118 | 212,915 |
Income taxes | 0 | 0 |
Non-cash investing and financing activities: | ||
Unrealized change in fair value of available-for-sale securities | 3,234,012 | 971,206 |
Purchase of treasury stock | 27,061 | 0 |
Purchase of equipment under capital lease | $ 0 | $ 115,359 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Aug. 31, 2014 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 1. Significant Accounting Policies Dynacq Healthcare, Inc., a Nevada corporation (the “Company”), is a holding company that through its subsidiaries in the United States develops and manages general acute care hospitals that principally provide specialized surgeries. The Company through its United States subsidiaries owns and operates one general acute care hospital in Pasadena, Texas. The Company through its subsidiary in Hong Kong invests in debt and equity securities, including short-term investments in initial public offerings and pre-initial public offerings. The Company was incorporated under the laws of the State of Nevada in 1992. The Company was reincorporated in Delaware in November 2003 and reincorporated back in Nevada in August 2007. U.S. Division In the United States, the Company manages and operates one general acute care hospital that principally provides specialized surgeries such as bariatric, orthopedic and neuro-spine surgeries. In May 1998, Vista Community Medical Center, L.L.C., a Texas limited liability company, was organized for the purpose of operating a hospital (the "Pasadena facility"). In June 2003, the Pasadena facility was converted to a limited liability partnership. As of August 31, 2014 and 2013, the Company through its subsidiaries had a 100 98 In July 2003, Vista Hospital of Dallas, LLP was organized for the purposes of acquiring and operating a surgical hospital in Garland, Texas (the "Garland facility"). The Company closed the Garland facility in September 2011, and sold it in July 2013. The Garland facility’s operations for the fiscal year ended August 31, 2013 are classified as discontinued operations. Corporate Division The Company formed Sino Bond Inc. Limited, a Hong Kong corporation (“Sino Bond”) to hold and manage investments in Hong Kong. Sino Bond invests in debt and equity securities in Europe and Asia, including initial public offerings and pre-initial public offerings. Certain previously reported financial information has been reclassified to conform to the current year’s presentation. The impact of such reclassification was not significant to the prior year’s overall presentation. The consolidated financial statements include the accounts of the Company and its wholly and majority owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for annual financial information and with the instructions to Form 10-K and Article 3 and 3-A of Regulation S-X. The majority of the Company's expenses are "cost of revenue" items. Costs that could be classified as general and administrative by the Company would include the corporate office costs, which were approximately $ 5.9 5.0 The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The most significant of the Company's estimates is the determination of revenue to recognize for the services the Company provides and the determination of allowances, which includes the contractual allowances and the provision for doubtful accounts. See “Revenue Recognition” below for further discussion. Actual results could differ materially from those estimates used in preparation of these financial statements. The Company considers all highly liquid instruments with maturities of three months or less on the date of purchase to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. The Company’s investments in debt instruments (corporate and municipal bonds) are recorded at fair value based on quoted market prices that are traded in less active markets or priced using a quoted market price for similar investments or are priced using non-binding market consensus prices that can be corroborated by observable market data (Level 2). These investments are classified as available-for-sale securities. These investments are subject to default risk. Unrealized gains in the fair value are reported in accumulated other comprehensive income, net of related income tax effect. The Company regularly monitors its investment portfolio for any decline in fair value that is other than temporary and records any such impairment as an impairment loss. The determination of the gain or loss on the sale of any security is made using the specific identification method. During the fiscal year ended August 31, 2013, one of these available-for-sale securities with a book cost of $ 450,500 2,199,500 20.7 The Company also invests in initial public offerings of equity securities on the Hong Kong Stock Exchange. These investments are classified as trading securities, and are carried at fair value. These investments are subject to fluctuations in the market price. During the fiscal years ended August 31, 2014 and 2013, the Company had a net gain of $ 161,864 695,008 In October 2012, the Company sold an apartment in Hong Kong, which was purchased in March 2010. The net proceeds from the sale of the apartment were $ 1,273,402 480,108 In November 2011 and September 2010, the Company borrowed $ 116,339 65,000 4.5 6 36 24 65,000 40,266 6,734 0 Inventories, consisting primarily of medical supplies, are stated at the lower of cost or market, with cost determined by use of the average cost method. Property and equipment are stated at cost. Maintenance and repairs are charged to expense as incurred. Expenditures which extend the physical or economic life of the assets are capitalized and depreciated. Depreciation is computed using the straight-line method over the estimated useful lives of the assets ranging from five to 39 Useful Life Land N/A Buildings and improvements 39 years Equipment, furniture and fixtures 5 years The Company also leases equipment under capital leases. Such assets are amortized on a straight-line basis over the lesser of the term of the lease or the remaining useful life of the assets. The Company evaluates the carrying value of property, plant and equipment and definite-lived assets whenever a change in circumstances indicates that the carrying value may not be recoverable from the undiscounted future cash flows from operations. If an impairment exists, the net book values are reduced to fair values as warranted. The fair value of financial instruments is estimated based on market trading information, where available. Absent published market values for an instrument or other assets, management uses observable market data to arrive at its estimates of fair value. Management believes that the carrying amount of cash and cash equivalents, accounts receivable and accrued liabilities approximate fair value. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted price for identical or similar assets and liabilities in markets that are not active; or other input that are observable or can be corroborated by observable market data. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Quoted prices in active Significant other Significant (Level 1) (Level 2) (Level 3) Assets Investments available-for-sale $ $ 20,678,130 $ The Company’s investments in Level 2 are in perpetual debt instruments (corporate and municipal bonds) traded on the European markets, at a cost of $ 7,984,646 Background The Company's revenue recognition policy is significant because net patient service revenue is a primary component of its results of operations. Revenue is recognized as services are delivered. The determination of the amount of revenue to be recognized in connection with the Company's services is subject to significant judgments and estimates, which are discussed below. The Company has established billing rates for its medical services which it bills as services are delivered. Gross billings are then reduced by the Company’s estimate of allowances, which includes the contractual allowance and the provision for doubtful accounts, to arrive at net patient service revenues. Net patient service revenues may not represent amounts ultimately collected. The Company adjusts current period revenue for differences in estimated revenue recorded in prior periods and actual cash collections. 2014 2013 Gross billed charges $ 30,459,347 $ 19,498,962 Allowances 20,241,038 13,441,551 Net revenue $ 10,218,309 $ 6,057,411 Allowance percentage 66 % 69 % 2014 2013 Workers' Compensation 19 % 11 % Commercial 42 % 43 % Medicare 23 % 28 % Medicaid 1 % 1 % Self-Pay 13 % 14 % Other 2 % 3 % Contractual Allowance The Company computes its contractual allowance based on the estimated collections on its gross billed charges. The Company computes its estimate by taking into account collections received, up to 30 days after the end of the period, for the services performed and also estimating amounts collectible for the services performed within the last six months. A significant amount of our net revenue results from Texas workers' compensation claims, which are governed by the rules and regulations of the Texas Department of Workers’ Compensation (“TDWC”) and the workers’ compensation healthcare networks. If our hospital chooses to participate in a network, the amount of revenue that will be generated from workers’ compensation claims will be governed by the network contract. For claims arising prior to the implementation of workers’ compensation networks and out of network claims, inpatient and outpatient surgical services are either reimbursed pursuant to the Acute Care In-Patient Hospital Fee Guideline or at a "fair and reasonable" rate for services in which the fee guideline is not applicable. Starting March 1, 2008, the Texas Workers’ Compensation 2008 Acute Care Hospital Outpatient and Inpatient Facility Fee Guidelines (the “Guidelines”) became effective. Under these Guidelines, the reimbursement amounts are determined by applying the most recently adopted and effective Medicare reimbursement formula and factors; however, if the maximum allowable reimbursement for the procedure performed cannot be calculated using these Guidelines, then reimbursement is determined on a fair and reasonable basis. Should we disagree with the amount of reimbursement provided by a third-party payer, we are required to pursue the medical dispute resolution (“MDR”) process at the TDWC to request proper reimbursement for services. From January 2007 to November 2008, the Company had been successful in its pursuit of collections regarding the stop-loss cases pending before the State Office of Administrative Hearings (“SOAH”), receiving positive rulings in over 90 75 40,000 A petition asking the Texas Supreme Court to review the Third Court of Appeals decision has been denied. Therefore, the Company is bound by the Third Court of Appeals decision. The Texas Supreme Court’s decision delayed final adjudication in these pending stop-loss cases. The uncertain outcome in these cases will depend on a very lengthy process. We anticipate further, lengthy litigation at the Travis County District Courts and the Texas Courts of Appeals. Because of this lengthy process and the uncertainty of recovery in these cases, collection of a material amount of funds in these pending stop-loss cases cannot be anticipated. Through August 2014, insurance carriers have voluntarily paid the awards in the decisions and orders issued by SOAH, plus interest, in approximately 180 11 130 4.2 4.2 300,000 300,000 50 4,476,097 During the time that the carriers’ petitions seeking refunds were pending, because of the uncertainty of the results at that time, as of May 31, 2014, the Company has accrued the total potential refund amount of $ 11.3 3.5 Due to the uncertainties associated with these stop-loss fee dispute cases, the Company recognized increases in the contractual allowance at our Pasadena facility of $ 10,254,990 149,875 779,583 136,542 Some claims regarding payment for ambulatory surgical center and hospital outpatient services remain pending at the TDWC and/or SOAH. It is expected that these remaining claims will be adjudicated at SOAH and possibly in the Texas district and appellate courts. The basis for reimbursement for these services made the subject of these pending cases is the same as it was for the other ASC and outpatient cases that have been either tried or settled: the determination of “fair and reasonable” charges. In 2007, the Company received unfavorable rulings from SOAH in all of its appeals of unfavorable decisions related to services provided in 2001 and 2002. The 179 178 80 Due to the uncertainties regarding the accounts receivable in the MDR process, the 2008 and 2010 Third Court of Appeals’ opinions and our legal counsel’s advice that settlements with insurance carriers in stop-loss cases have virtually stopped, the Company had fully reserved all accounts receivable related to the MDR process as of August 31, 2008. The Company has had settlement negotiations with insurance carriers for ambulatory surgical center and hospital outpatient cases. Some of these negotiations have been successful. Any monies collected for these MDR accounts receivable is recorded as current period’s net patient service revenues. Provision for Doubtful Accounts Although outcomes vary, our policy is to attempt to collect amounts due from patients, including co-payments and deductibles due from patients with insurance, at the time of service while complying with all federal and state laws and regulations. In non-emergency circumstances or for elective procedures and services, it is our policy to verify insurance prior to a patient being treated; however, there are various exceptions that can occur. The Company computes its allowance s 30 Accounts receivable represent net receivables for services provided by the Company. At each balance sheet date management reviews the accounts receivable for collectibility and provides full allowance reserves for any accounts receivable deemed uncollectible. The allowances stated as a percentage of gross receivables at the balance sheet dates is larger than the allowance percentage used to reduce gross billed charges due to the application of partial cash collections to the outstanding gross receivable balances, without any adjustment being made to the allowances. The allowance amounts netted against gross receivables are not adjusted until such time as the final collections on an individual receivable are recognized. The focal point of our business is providing patient care services, including complex orthopedic and bariatric procedures. The Company pursues optimal reimbursement from third-party payers for these services. In some instances, we do not have contractual arrangements with third-party payers which provide for “prompt payment” which may result in additional time to collect the expected reimbursement. The collection process may also be extended due to our efforts to obtain all optimal reimbursement available to the Company. Specifically, for medical services provided to injured workers, the Company may initially receive reimbursement that may not be within the fee guidelines or regulatory guidelines mandating reimbursement. The Company reviews and pursues those particular claims that are determined to warrant additional reimbursement pursuant to the fee or regulatory guidelines. The Company's pursuit of additional reimbursement amounts that it believes are due under fee or regulatory guidelines may be accomplished through established dispute resolution procedures with applicable regulatory authorities. The Company estimates the fair value of stock options granted using the Black-Scholes option pricing model. The fair value for awards that are expected to vest is then amortized on a straight-line basis over the requisite service period of the award, which is generally the option vesting term. The amount of expense attributed is based on estimated forfeiture rate, which is updated based on actual forfeitures as appropriate. This option pricing model requires the input of highly subjective assumptions, including the expected volatility of our common stock, pre-vesting forfeiture rate and an option’s expected life. The financial statements include amounts that are based on the Company’s best estimates and judgments. Advertising and marketing costs in the amounts of $ 471,000 125,000 The Company uses the liability method in accounting for income taxes. Under this method, deferred tax liabilities or assets are determined based on differences between the income tax basis and the financial reporting basis of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. If the Company is uncertain about its ability to recognize benefit from net operating losses, it records a valuation allowance against deferred tax assets. The equity of minority investors (minority investors are generally physician groups and other healthcare providers that perform surgeries at the Company's facilities) in certain subsidiaries of the Company is reported on the consolidated balance sheets as noncontrolling interest. Noncontrolling interest reported in the consolidated income statements reflect the respective interests in the income or loss of the limited partnerships or limited liability companies attributable to the minority investors (equity interest was 1 Balance August 31, 2012 $ 66,259 Loss allocated to noncontrolling interest holders (2,836) Balance August 31, 2013 63,423 Income allocated to noncontrolling interest holders 382 Balance August 31, 2014 $ 63,805 Earnings (loss) per share has been computed using the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share has been calculated to give effect to the dilutive effect of common stock equivalents consisting of stock options in years in which the Company has income. 995,350 1,096,475 The functional currency of the Company as a whole is the U.S. Dollar. The Company has designated the U.S. Dollar as the functional currency for Sino Bond in Hong Kong. The effects of foreign currency exchange adjustments are included as a component of Rent and Other Income in the Consolidated Statements of Operations. No recent accounting pronouncements or other authoritative guidance has been issued that management considers likely to have a material impact on our consolidated financial statements. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Aug. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 2. Property and Equipment 2014 2013 Land $ 497,110 $ 497,110 Buildings and improvements 8,989,115 8,989,115 Equipment, furniture and fixtures (including equipment under capital lease of $115,359 and $585,450) 8,359,857 8,528,872 17,846,082 18,015,097 Less accumulated depreciation and amortization (including amortization for equipment under capital lease of $38,453 and $449,860) (11,621,946) (11,691,440) Net property and equipment $ 6,224,136 $ 6,323,657 For the fiscal years ended August 31, 2014 and 2013, depreciation and amortization expense was $ 366,883 463,552 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Aug. 31, 2014 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Disposal Groups Including Discontinued Operations Disclosure [Text Block] | 3. Discontinued Operations The Company classifies assets to be disposed of as held for sale or, if appropriate, discontinued operations when appropriate approvals for the disposal are made by management or the Board of Directors (the “Board”). Cash flows from discontinued businesses are reflected as discontinued operating, investing, and financing activities in our statement of cash flows. The Company closed the Garland facility on September 30, 2011, and sold it in July 2013. The Company took an impairment charge of approximately $ 1.1 122,975 31, 2013: Net patient service revenue $ 451,965 Total costs and expenses 182,175 Operating income 269,790 Other income 4,600 Income before income taxes 274,390 Provision for income taxes Income on discontinued operations, net of income taxes 274,390 Loss on disposal of discontinued assets (122,975) Benefit for income taxes Loss on disposal of discontinued operations, net of income taxes (122,975) Total income on discontinued operations, net of income taxes $ 151,415 |
Notes payable
Notes payable | 12 Months Ended |
Aug. 31, 2014 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 4. Notes payable 2014 2013 Notes payable for $116,339 and $65,000 for purchases of equipment for the Pasadena facility at an interest rate of 4.5% and 6%, secured by the said equipment. $ 6,734 $ 47,000 Less: Current portion (6,734) (40,256) Long-term portion $ $ 6,744 |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 5 . Income Taxes Year Ended August 31, 2014 2013 Current tax (benefit) expense: Federal $ $ State Total current Deferred tax (benefit) expense: Federal State Total deferred Total income tax expense $ $ The Company in fiscal years 2014 and 2013 continued to have operating losses. The Company believes that the likelihood of realizing future tax benefit for the deferred tax assets is low, and hence increased the valuation allowance to write-off the deferred tax assets. Current Noncurrent Deferred tax liabilities: Depreciation $ $ (210,814) Deferred tax assets: Net operating loss carryforward 8,610,673 Revenue and expense differences (350,000) 5,197,056 Allowance for uncollectible accounts 513,456 Other (163,456) (28,175) Valuation allowance (13,568,740) Net deferred tax asset (liability) $ $ Significant components of the Company's deferred tax liabilities and assets were as follows at August 31, 2013: Current Noncurrent Deferred tax liabilities: Depreciation $ $ (207,396) Deferred tax assets: Net operating loss carryforward 9,439,548 Revenue and expense differences 13,157 3,580,862 Allowance for uncollectible accounts 513,456 Other (166,758) (29,869) Valuation allowance (359,855) (12,783,145) Net deferred tax asset (liability) $ $ In assessing the ability to realize deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Due to the uncertainty of the Company’s ability to recognize the benefit from the net operating losses, the Company has recorded a full valuation allowance against the deferred tax assets as at August 31, 2014 and 2013. The Company recognizes tax benefits only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 Year Ended August 31, 2014 2013 Benefit for income taxes computed using the statutory rate of 35% $ (1,327,538) $ (1,210,767) Noncontrolling interest in loss of consolidated subsidiaries (134) 993 Non-deductible expenses/other 901,932 (128,822) Changes in valuation allowance 425,740 1,338,596 Expense for income taxes $ $ The Company files tax returns in the U.S. federal, state of Texas and foreign jurisdictions. The federal statute limitation is open for tax year ending on and after August 31, 2012 and the State of Texas statute limitation is open for the report years 2012 through 2014. At August 31, 2014, we had approximately $ 24.6 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Aug. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 6. Related Party Transactions The Company has retained Redwood Health Corporation (“Redwood”), to furnish physicians to provide in-house emergency medical coverage for its Pasadena facility at an hourly rate of $ 75 515,025 397,050 During the fiscal year 2009, the Company retained Anesthesia Associates of Houston Metroplex to provide exclusive, continuous and uninterrupted anesthesiology services, including physicians and CRNAs, to the Pasadena facility for a monthly compensation of $ 5,000 60,000 20,000 240,000 The Company had purchased artifacts as inventory for re-sale in China during fiscal years 2010 and 2011. The purchase amount was paid by Mr. Chiu Chan, the Company’s former Chief Executive Officer. The amount payable to his estate of $ 229,317 231,333 |
Stockholders' Equity and Stock
Stockholders' Equity and Stock Option Plan | 12 Months Ended |
Aug. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 7. Stockholders' Equity and Stock Option Plan Preferred Stock In January 1992, the Board approved an amendment to the Company's Articles of Incorporation to authorize 5,000,000 Treasury Stock In September 2013, as part of a settlement agreement with a former employee, the Company received 125,000 In August 2014 and April 2015, binding settlement agreements were reached with some of the shareholders in a law suit whereby Dynacq received 530,616 427,886 27,061 145,053 Stock Option Plans Year 2011 Stock Incentive Plan The purpose of the Year 2011 Stock Incentive Plan (“2011 Plan”) is to strengthen the Company by providing an incentive to its employees, officers, consultants and directors and encouraging them to devote their abilities and industry to the success of the Company’s business enterprise. It is intended that this purpose be achieved by extending to employees, officers, consultants and directors of the Company and its subsidiaries an added long-term incentive for high levels of performance and unusual efforts through the grant of incentive stock options, non-qualified stock options, stock appreciation rights, dividend equivalent rights, performance awards and restricted stock. The Company has reserved 15,000,000 250,000 14,750,000 2000 Incentive Plan The Company's 2000 Incentive Plan ("2000 Plan") provides for options and other stock-based awards that may be granted to eligible employees, officers, consultants and non-employee directors of the Company or its subsidiaries. The Company had reserved 5,000,000 745,350 Shares Weighted Average Outstanding, August 31, 2012 2,791 $ 1.92 Granted 1.03 Exercised Expired or canceled (1,694) 1.74 Outstanding, August 31, 2013 1,097 2.21 Granted Exercised Expired or canceled (102) 2.45 Outstanding, August 31, 2014 995 2.18 For the fiscal years ended August 31, 2014 and 2013, there were no stock options granted or exercised. The aggregate intrinsic value of the stock options outstanding as of August 31, 2014 and 2013 is $-0-, since the market price is lower than the exercise price. Options Outstanding Options Exercisable Exercise Prices Number of Weighted Average Number of Shares (Share Amounts In Thousands) $ 1.10 250 7.4 125 $ 1.86 578 6.9 434 $ 4.90 167 0.3 167 Total 995 5.9 726 For the fiscal years ended August 31, 2014 and 2013, stock-based compensation expense associated with the Company’s stock options and stock grants was $ 197,364 109,462 181,000 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Aug. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | 8. Employee Benefit Plan The Company sponsors a 401(k) defined contribution plan covering substantially all employees of the Company and provides for voluntary contributions by these employees, subject to certain limits. The Company makes discretionary contributions to the plan. The Company's contributions for fiscal years 2014 and 2013 were $ 31,612 29,092 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Aug. 31, 2014 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 9. Earnings (Loss) Per Share Year Ended August 31, 2014 2013 Basic and diluted earnings (loss): Numerator: Loss from continuing operations $ (3,792,967) $ (3,459,335) Less: Net (income) loss attributable to noncontrolling interest (382) 2,836 Loss from continuing operations attributable to Dynacq Healthcare, Inc. (3,793,349) (3,456,499) Income from discontinued operations, net of income taxes 151,415 Net loss attributable to Dynacq Healthcare, Inc. $ (3,793,349) $ (3,305,084) Denominator: Basic and diluted average common shares outstanding 14,387,425 14,543,626 Basic and diluted earnings (loss) per common share: Loss from continuing operations attributable to Dynacq Healthcare, Inc. $ (0.26) $ (0.24) Income from discontinued operations, net of income taxes 0.01 Net loss attributable to Dynacq Healthcare, Inc. $ (0.26) $ (0.23) Basic earnings (loss) per share is computed by dividing earnings (loss) available to common shareholders by the weighted average number of common shares outstanding for the reporting period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted earnings (loss) per share, the basic weighted average number of shares is increased by the dilutive effect of stock options determined using the treasury stock method. However, if it is anti-dilutive, the dilutive effect of the stock options is not included in the calculation of diluted earnings (loss) per share. Stock options with exercise prices exceeding current market prices that were excluded from the computation of earnings (loss) per share amounted to 995,350 1,096,475 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income | 12 Months Ended |
Aug. 31, 2014 | |
Equity [Abstract] | |
Comprehensive Income Note [Text Block] | 10. Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income Year Ended August 31, 2014 2013 Available-for-sale securities Accumulated other comprehensive income balance, beginning of period $ 9,382,334 $ 8,411,128 Other comprehensive income (loss): Unrealized gains, net of taxes of $-0- for all periods presented 3,234,012 3,170,706 Reclassification adjustments for gains included in rent and other income (2,199,500) Tax provision Amount reclassified from accumulated other comprehensive income (2,199,500) Other comprehensive income (loss) 3,234,012 971,206 Accumulated other comprehensive income balance, end of period $ 12,616,346 $ 9,382,334 Foreign currency translation adjustment Accumulated other comprehensive income balance, beginning of period $ $ 8,196 Other comprehensive income (loss): Unrealized gains (losses) Reclassification adjustments for gains included in rent and other income (12,610) Tax provision included in accrued liabilities 4,414 Amount reclassified from accumulated other comprehensive income (8,196) Other comprehensive income (loss) (8,196) Accumulated other comprehensive income balance, end of period $ $ |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Aug. 31, 2014 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 11. Accrued Liabilities 2014 2013 MDR stop-loss cases accrual, including accrued interest $ 14,848,882 $ 10,231,033 Treasury stock and lawsuit settlements 2,074,713 Marketing fees liability 300,000 300,000 Payroll and related taxes 399,724 306,450 Property taxes 179,621 189,202 Year-end accruals of expenses and other 710,046 818,632 Total accrued liabilities $ 18,512,986 $ 11,845,317 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments And Contingencies Disclosure [Text Block] | 12. Commitments and Contingencies Due to the uncertainties associated with the stop-loss fee dispute cases, the Company has accrued an amount of $ 11.3 3.5 Total rent and lease expenses paid by the Company for the fiscal years 2014 and 2013 were approximately $ 106,000 131,000 204,000 68,000 64,000 58,000 14,000 The Company has contracts with doctors to manage various areas of the Company's hospital and other service agreements. Payments made under these agreements for the fiscal years ended August 31, 2014 and 2013 were $ 1,145,000 1,156,000 1,068,000 The Company has administrative support services agreements with outside organizations for administrative support services. Payments made related to these agreements for fiscal years 2014 and 2013 were $ 388,000 440,000 2,775,000 660,000 531,000 396,000 264,000 264,000 660,000 Total advertising expenses paid by the Company for the fiscal years 2014 and 2013 were approximately $ 471,000 125,000 895,000 865,000 30,000 The Company has a note payable commitment for purchase of equipment for the Pasadena facility at an interest rate of 4.5 7,000 The Company has purchased some equipment under capital leases, and has a total commitment to pay $ 72,000 29,000 32,000 11,000 These commitments mentioned above total $ 19.9 17.5 657,000 465,000 279,000 264,000 660,000 Risks and Uncertainties The Company maintains various insurance policies that cover its Pasadena facility including occurrence medical malpractice coverage. In addition, all physicians granted privileges at the Pasadena facility are required to maintain medical malpractice insurance coverage. The Company also maintains general liability and property insurance coverage, including flood coverage. The Company does not currently maintain worker's compensation coverage in Texas. In regard to the Employee Health Insurance Plan, until April 30, 2014, the Company was self-insured with specific and aggregate re-insurance with stop-loss levels appropriate for the Company's group size. Effective May 1, 2014, the Company has taken coverage for its employees under a fully insured health plan. We do not carry director and officer liability insurance. As permitted under Nevada law and pursuant to our governing documents and indemnification agreements with certain of our officers and directors, we indemnify our directors and officers against monetary damages, including advancing expenses, to the fullest extent permitted by Nevada law. Ping S. Chu, James G. Gerace (both former members of our Board of Directors), and Eric G. Carter (former legal counsel) along with eleven other claimants instigated a series of lawsuits making claims against Ella Y.T.C. Chan (in her individual capacity and in her capacity as Independent Executrix of the Estate of Chiu M. Chan, Deceased, our former Chief Executive Officer and director), Eric K. Chan (our current Chief Executive Officer and director), and Dynacq Healthcare, Inc. All claims were settled in mediations and as part of the settlements Dynacq repurchased 530,616 2,047,652 The Company is routinely involved in litigation and administrative proceedings that are incidental to its business. Specifically, all judicial review of unsatisfactory determinations of reimbursement amounts due us for our Texas facilities’ fees must be made in the district courts of Travis County, Texas in what can often be a lengthy procedure. |
Concentrations of Credit Risk a
Concentrations of Credit Risk and Fair Value of Financial Instruments | 12 Months Ended |
Aug. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | 13. Concentrations of Credit Risk and Fair Value of Financial Instruments The Company has financial instruments that are exposed to concentrations of credit risk and consist primarily of cash investments and trade accounts receivable. The Company routinely maintains cash and temporary cash investments at certain financial institutions in amounts substantially in excess of (a) Federal Deposit Insurance Corporation (“FDIC”) and Securities Investor Protection Corporation ("SIPC") insurance limits in the U.S. and (b) Hong Kong Deposit Protection Board (“HKDPB”) insurance limits in Hong Kong. At August 31, 2014, the Company had cash balances in excess of the FDIC and SIPC limits in the U.S. and HKDPB limits in Hong Kong of $ 15.2 As is customary in the healthcare business, the Company has accounts receivable from various third-party payers. The Company does not request collateral from its customers and continually monitors its exposure for credit losses and maintains allowances for anticipated losses. Gross receivables from third-party payers are normally in excess of 90 2014 2013 Workers' compensation 2 % 1 % Workers' compensation subject to Medical Dispute Resolution process 80 % 84 % Commercial 11 % 9 % Medicare / Government 1 % 1 % Self-pay 4 % 4 % Other 2 % 1 % 100 % 100 % We had one third-party payer (customer) who represented 18 16 18 12 10 10 22 11 11 84 90 The carrying amounts of cash and cash equivalents, current receivables, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these instruments. The carrying amounts of the Company's short-term borrowings at August 31, 2014 and 2013 approximate their fair value. |
Industry Segments and Geographi
Industry Segments and Geographic Information | 12 Months Ended |
Aug. 31, 2014 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 14. Industry Segments and Geographic Information The Industry Segment “U.S. Division” comprises of the Company’s Pasadena facility. The Company at the present time has the U.S. Division and the Corporate Division. Certain previously reported financial information has been reclassified to conform to the current year’s presentation. Corporate Division The Company closed the Garland facility on September 30, 2011, and sold it in July 2013. The Company took an impairment charge of approximately $ 1.1 122,975 The Company formed Sino Bond to hold and manage investments in Hong Kong. Sino Bond invests in debt instruments (corporate and municipal) and equity securities in Europe and Asia, including initial public offerings and pre-initial public offerings. The Company invests in various marketable securities. During the fiscal year ended August 31, 2013, one particular security was called on which the Company had a gain of approximately $ 2.2 20.75 161,864 695,008 The Corporate Division includes interest and other income related to its investments in securities, corporate personnel compensation expenses, and general and administrative expenses. Such expenses and income are not allocated to our operating division, as they relate to our general corporate activities. We generally evaluate performance based on profit or loss from operations before income taxes and non-recurring charges and other criteria. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. There are no transfers between segments. Year Ended August 31, 2014 2013 Revenues from external customers Net patient service revenues U.S. Division $ 10,218,309 $ 6,057,411 Corporate Consolidated $ 10,218,309 $ 6,057,411 Loss before taxes and discontinued operations U.S. Division $ (151,547) $ (3,070,917) Corporate (3,641,420) (388,418) Consolidated $ (3,792,967) $ (3,459,335) August 31, 2014 2013 Total Assets U.S. Division $ 15,967,472 $ 9,924,501 Corporate 31,793,055 31,711,826 Consolidated $ 47,760,527 $ 41,636,327 |
Significant Accounting Polici24
Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 31, 2014 | |
Accounting Policies [Abstract] | |
Business And Organization [Policy Text Block] | Business and Organization Dynacq Healthcare, Inc., a Nevada corporation (the “Company”), is a holding company that through its subsidiaries in the United States develops and manages general acute care hospitals that principally provide specialized surgeries. The Company through its United States subsidiaries owns and operates one general acute care hospital in Pasadena, Texas. The Company through its subsidiary in Hong Kong invests in debt and equity securities, including short-term investments in initial public offerings and pre-initial public offerings. The Company was incorporated under the laws of the State of Nevada in 1992. The Company was reincorporated in Delaware in November 2003 and reincorporated back in Nevada in August 2007. U.S. Division In the United States, the Company manages and operates one general acute care hospital that principally provides specialized surgeries such as bariatric, orthopedic and neuro-spine surgeries. In May 1998, Vista Community Medical Center, L.L.C., a Texas limited liability company, was organized for the purpose of operating a hospital (the "Pasadena facility"). In June 2003, the Pasadena facility was converted to a limited liability partnership. As of August 31, 2014 and 2013, the Company through its subsidiaries had a 100 98 In July 2003, Vista Hospital of Dallas, LLP was organized for the purposes of acquiring and operating a surgical hospital in Garland, Texas (the "Garland facility"). The Company closed the Garland facility in September 2011, and sold it in July 2013. The Garland facility’s operations for the fiscal year ended August 31, 2013 are classified as discontinued operations. Corporate Division The Company formed Sino Bond Inc. Limited, a Hong Kong corporation (“Sino Bond”) to hold and manage investments in Hong Kong. Sino Bond invests in debt and equity securities in Europe and Asia, including initial public offerings and pre-initial public offerings. |
Reclassification, Policy [Policy Text Block] | Reclassification Certain previously reported financial information has been reclassified to conform to the current year’s presentation. The impact of such reclassification was not significant to the prior year’s overall presentation. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly and majority owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for annual financial information and with the instructions to Form 10-K and Article 3 and 3-A of Regulation S-X. The majority of the Company's expenses are "cost of revenue" items. Costs that could be classified as general and administrative by the Company would include the corporate office costs, which were approximately $ 5.9 5.0 |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The most significant of the Company's estimates is the determination of revenue to recognize for the services the Company provides and the determination of allowances, which includes the contractual allowances and the provision for doubtful accounts. See “Revenue Recognition” below for further discussion. Actual results could differ materially from those estimates used in preparation of these financial statements. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents The Company considers all highly liquid instruments with maturities of three months or less on the date of purchase to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. |
Marketable Securities, Policy [Policy Text Block] | Investments in Available-for-Sale and Trading Securities The Company’s investments in debt instruments (corporate and municipal bonds) are recorded at fair value based on quoted market prices that are traded in less active markets or priced using a quoted market price for similar investments or are priced using non-binding market consensus prices that can be corroborated by observable market data (Level 2). These investments are classified as available-for-sale securities. These investments are subject to default risk. Unrealized gains in the fair value are reported in accumulated other comprehensive income, net of related income tax effect. The Company regularly monitors its investment portfolio for any decline in fair value that is other than temporary and records any such impairment as an impairment loss. The determination of the gain or loss on the sale of any security is made using the specific identification method. During the fiscal year ended August 31, 2013, one of these available-for-sale securities with a book cost of $ 450,500 2,199,500 20.7 The Company also invests in initial public offerings of equity securities on the Hong Kong Stock Exchange. These investments are classified as trading securities, and are carried at fair value. These investments are subject to fluctuations in the market price. During the fiscal years ended August 31, 2014 and 2013, the Company had a net gain of $ 161,864 695,008 |
Investment In Real Estates And Notes Payable [Policy Text Block] | Investment in Real Estate and Note Payable In October 2012, the Company sold an apartment in Hong Kong, which was purchased in March 2010. The net proceeds from the sale of the apartment were $ 1,273,402 480,108 In November 2011 and September 2010, the Company borrowed $ 116,339 65,000 4.5 6 36 24 65,000 40,266 6,734 0 |
Inventory, Policy [Policy Text Block] | Inventories Inventories, consisting primarily of medical supplies, are stated at the lower of cost or market, with cost determined by use of the average cost method. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost. Maintenance and repairs are charged to expense as incurred. Expenditures which extend the physical or economic life of the assets are capitalized and depreciated. Depreciation is computed using the straight-line method over the estimated useful lives of the assets ranging from five to 39 Useful Life Land N/A Buildings and improvements 39 years Equipment, furniture and fixtures 5 years The Company also leases equipment under capital leases. Such assets are amortized on a straight-line basis over the lesser of the term of the lease or the remaining useful life of the assets. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-lived Assets The Company evaluates the carrying value of property, plant and equipment and definite-lived assets whenever a change in circumstances indicates that the carrying value may not be recoverable from the undiscounted future cash flows from operations. If an impairment exists, the net book values are reduced to fair values as warranted. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The fair value of financial instruments is estimated based on market trading information, where available. Absent published market values for an instrument or other assets, management uses observable market data to arrive at its estimates of fair value. Management believes that the carrying amount of cash and cash equivalents, accounts receivable and accrued liabilities approximate fair value. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted price for identical or similar assets and liabilities in markets that are not active; or other input that are observable or can be corroborated by observable market data. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Quoted prices in active Significant other Significant (Level 1) (Level 2) (Level 3) Assets Investments available-for-sale $ $ 20,678,130 $ The Company’s investments in Level 2 are in perpetual debt instruments (corporate and municipal bonds) traded on the European markets, at a cost of $ 7,984,646 |
Revenue Recognition, Policy [Policy Text Block] | Background The Company's revenue recognition policy is significant because net patient service revenue is a primary component of its results of operations. Revenue is recognized as services are delivered. The determination of the amount of revenue to be recognized in connection with the Company's services is subject to significant judgments and estimates, which are discussed below. Revenue Recognition Policy The Company has established billing rates for its medical services which it bills as services are delivered. Gross billings are then reduced by the Company’s estimate of allowances, which includes the contractual allowance and the provision for doubtful accounts, to arrive at net patient service revenues. Net patient service revenues may not represent amounts ultimately collected. The Company adjusts current period revenue for differences in estimated revenue recorded in prior periods and actual cash collections. 2014 2013 Gross billed charges $ 30,459,347 $ 19,498,962 Allowances 20,241,038 13,441,551 Net revenue $ 10,218,309 $ 6,057,411 Allowance percentage 66 % 69 % 2014 2013 Workers' Compensation 19 % 11 % Commercial 42 % 43 % Medicare 23 % 28 % Medicaid 1 % 1 % Self-Pay 13 % 14 % Other 2 % 3 % Contractual Allowance The Company computes its contractual allowance based on the estimated collections on its gross billed charges. The Company computes its estimate by taking into account collections received, up to 30 days after the end of the period, for the services performed and also estimating amounts collectible for the services performed within the last six months. A significant amount of our net revenue results from Texas workers' compensation claims, which are governed by the rules and regulations of the Texas Department of Workers’ Compensation (“TDWC”) and the workers’ compensation healthcare networks. If our hospital chooses to participate in a network, the amount of revenue that will be generated from workers’ compensation claims will be governed by the network contract. For claims arising prior to the implementation of workers’ compensation networks and out of network claims, inpatient and outpatient surgical services are either reimbursed pursuant to the Acute Care In-Patient Hospital Fee Guideline or at a "fair and reasonable" rate for services in which the fee guideline is not applicable. Starting March 1, 2008, the Texas Workers’ Compensation 2008 Acute Care Hospital Outpatient and Inpatient Facility Fee Guidelines (the “Guidelines”) became effective. Under these Guidelines, the reimbursement amounts are determined by applying the most recently adopted and effective Medicare reimbursement formula and factors; however, if the maximum allowable reimbursement for the procedure performed cannot be calculated using these Guidelines, then reimbursement is determined on a fair and reasonable basis. Should we disagree with the amount of reimbursement provided by a third-party payer, we are required to pursue the medical dispute resolution (“MDR”) process at the TDWC to request proper reimbursement for services. From January 2007 to November 2008, the Company had been successful in its pursuit of collections regarding the stop-loss cases pending before the State Office of Administrative Hearings (“SOAH”), receiving positive rulings in over 90 75 40,000 A petition asking the Texas Supreme Court to review the Third Court of Appeals decision has been denied. Therefore, the Company is bound by the Third Court of Appeals decision. The Texas Supreme Court’s decision delayed final adjudication in these pending stop-loss cases. The uncertain outcome in these cases will depend on a very lengthy process. We anticipate further, lengthy litigation at the Travis County District Courts and the Texas Courts of Appeals. Because of this lengthy process and the uncertainty of recovery in these cases, collection of a material amount of funds in these pending stop-loss cases cannot be anticipated. Through August 2014, insurance carriers have voluntarily paid the awards in the decisions and orders issued by SOAH, plus interest, in approximately 180 11 130 4.2 4.2 300,000 300,000 50 4,476,097 During the time that the carriers’ petitions seeking refunds were pending, because of the uncertainty of the results at that time, as of May 31, 2014, the Company has accrued the total potential refund amount of $ 11.3 3.5 Due to the uncertainties associated with these stop-loss fee dispute cases, the Company recognized increases in the contractual allowance at our Pasadena facility of $ 10,254,990 149,875 779,583 136,542 Some claims regarding payment for ambulatory surgical center and hospital outpatient services remain pending at the TDWC and/or SOAH. It is expected that these remaining claims will be adjudicated at SOAH and possibly in the Texas district and appellate courts. The basis for reimbursement for these services made the subject of these pending cases is the same as it was for the other ASC and outpatient cases that have been either tried or settled: the determination of “fair and reasonable” charges. In 2007, the Company received unfavorable rulings from SOAH in all of its appeals of unfavorable decisions related to services provided in 2001 and 2002. The 179 178 80 Due to the uncertainties regarding the accounts receivable in the MDR process, the 2008 and 2010 Third Court of Appeals’ opinions and our legal counsel’s advice that settlements with insurance carriers in stop-loss cases have virtually stopped, the Company had fully reserved all accounts receivable related to the MDR process as of August 31, 2008. The Company has had settlement negotiations with insurance carriers for ambulatory surgical center and hospital outpatient cases. Some of these negotiations have been successful. Any monies collected for these MDR accounts receivable is recorded as current period’s net patient service revenues. Provision for Doubtful Accounts Although outcomes vary, our policy is to attempt to collect amounts due from patients, including co-payments and deductibles due from patients with insurance, at the time of service while complying with all federal and state laws and regulations. In non-emergency circumstances or for elective procedures and services, it is our policy to verify insurance prior to a patient being treated; however, there are various exceptions that can occur. The Company computes its allowance s 30 Accounts receivable represent net receivables for services provided by the Company. At each balance sheet date management reviews the accounts receivable for collectibility and provides full allowance reserves for any accounts receivable deemed uncollectible. The allowances stated as a percentage of gross receivables at the balance sheet dates is larger than the allowance percentage used to reduce gross billed charges due to the application of partial cash collections to the outstanding gross receivable balances, without any adjustment being made to the allowances. The allowance amounts netted against gross receivables are not adjusted until such time as the final collections on an individual receivable are recognized. The focal point of our business is providing patient care services, including complex orthopedic and bariatric procedures. The Company pursues optimal reimbursement from third-party payers for these services. In some instances, we do not have contractual arrangements with third-party payers which provide for “prompt payment” which may result in additional time to collect the expected reimbursement. The collection process may also be extended due to our efforts to obtain all optimal reimbursement available to the Company. Specifically, for medical services provided to injured workers, the Company may initially receive reimbursement that may not be within the fee guidelines or regulatory guidelines mandating reimbursement. The Company reviews and pursues those particular claims that are determined to warrant additional reimbursement pursuant to the fee or regulatory guidelines. The Company's pursuit of additional reimbursement amounts that it believes are due under fee or regulatory guidelines may be accomplished through established dispute resolution procedures with applicable regulatory authorities. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock Based Compensation The Company estimates the fair value of stock options granted using the Black-Scholes option pricing model. The fair value for awards that are expected to vest is then amortized on a straight-line basis over the requisite service period of the award, which is generally the option vesting term. The amount of expense attributed is based on estimated forfeiture rate, which is updated based on actual forfeitures as appropriate. This option pricing model requires the input of highly subjective assumptions, including the expected volatility of our common stock, pre-vesting forfeiture rate and an option’s expected life. The financial statements include amounts that are based on the Company’s best estimates and judgments. |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs Advertising and marketing costs in the amounts of $ 471,000 125,000 |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company uses the liability method in accounting for income taxes. Under this method, deferred tax liabilities or assets are determined based on differences between the income tax basis and the financial reporting basis of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. If the Company is uncertain about its ability to recognize benefit from net operating losses, it records a valuation allowance against deferred tax assets. |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | Noncontrolling Interest The equity of minority investors (minority investors are generally physician groups and other healthcare providers that perform surgeries at the Company's facilities) in certain subsidiaries of the Company is reported on the consolidated balance sheets as noncontrolling interest. Noncontrolling interest reported in the consolidated income statements reflect the respective interests in the income or loss of the limited partnerships or limited liability companies attributable to the minority investors (equity interest was 1 Balance August 31, 2012 $ 66,259 Loss allocated to noncontrolling interest holders (2,836) Balance August 31, 2013 63,423 Income allocated to noncontrolling interest holders 382 Balance August 31, 2014 $ 63,805 |
Earnings Per Share, Policy [Policy Text Block] | Earnings (Loss) per Share Earnings (loss) per share has been computed using the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share has been calculated to give effect to the dilutive effect of common stock equivalents consisting of stock options in years in which the Company has income. 995,350 1,096,475 |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The functional currency of the Company as a whole is the U.S. Dollar. The Company has designated the U.S. Dollar as the functional currency for Sino Bond in Hong Kong. The effects of foreign currency exchange adjustments are included as a component of Rent and Other Income in the Consolidated Statements of Operations. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements No recent accounting pronouncements or other authoritative guidance has been issued that management considers likely to have a material impact on our consolidated financial statements. |
Significant Accounting Polici25
Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 31, 2014 | |
Accounting Policies [Abstract] | |
Schedule Of Property Plant And Equipment Estimated Useful Life [Table Text Block] | The categories are listed below, along with the useful life for each category. Useful Life Land N/A Buildings and improvements 39 years Equipment, furniture and fixtures 5 years |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table summarizes our financial assets and liabilities measured and reported in the Company’s statement of financial position at fair value on a recurring basis as of August 31, 2014, segregated among the appropriate levels within the fair value hierarchy: Quoted prices in active Significant other Significant (Level 1) (Level 2) (Level 3) Assets Investments available-for-sale $ $ 20,678,130 $ |
Percentage Of Gross Patient Service Revenue By Financial Class [Table Text Block] | The following table shows gross revenues and allowances for fiscal years 2014 and 2013: 2014 2013 Gross billed charges $ 30,459,347 $ 19,498,962 Allowances 20,241,038 13,441,551 Net revenue $ 10,218,309 $ 6,057,411 Allowance percentage 66 % 69 % |
Schedule Of Gross Revenues And Contractual Allowances [Table Text Block] | The table below sets forth the percentage of our gross patient service revenue by financial class for the fiscal years 2014 and 2013: 2014 2013 Workers' Compensation 19 % 11 % Commercial 42 % 43 % Medicare 23 % 28 % Medicaid 1 % 1 % Self-Pay 13 % 14 % Other 2 % 3 % |
Schedule Of Movement In Minority Interest [Table Text Block] | The following table sets forth the activity in the noncontrolling interest account for the fiscal years ended August 31, 2014 and 2013: Balance August 31, 2012 $ 66,259 Loss allocated to noncontrolling interest holders (2,836) Balance August 31, 2013 63,423 Income allocated to noncontrolling interest holders 382 Balance August 31, 2014 $ 63,805 |
Property And Equipment (Tables)
Property And Equipment (Tables) | 12 Months Ended |
Aug. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | At August 31, property and equipment consisted of the following: 2014 2013 Land $ 497,110 $ 497,110 Buildings and improvements 8,989,115 8,989,115 Equipment, furniture and fixtures (including equipment under capital lease of $115,359 and $585,450) 8,359,857 8,528,872 17,846,082 18,015,097 Less accumulated depreciation and amortization (including amortization for equipment under capital lease of $38,453 and $449,860) (11,621,946) (11,691,440) Net property and equipment $ 6,224,136 $ 6,323,657 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Aug. 31, 2014 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The following is a summary of financial information related to our discontinued operations for the fiscal year ended 31, 2013: Net patient service revenue $ 451,965 Total costs and expenses 182,175 Operating income 269,790 Other income 4,600 Income before income taxes 274,390 Provision for income taxes Income on discontinued operations, net of income taxes 274,390 Loss on disposal of discontinued assets (122,975) Benefit for income taxes Loss on disposal of discontinued operations, net of income taxes (122,975) Total income on discontinued operations, net of income taxes $ 151,415 |
Notes payable (Tables)
Notes payable (Tables) | 12 Months Ended |
Aug. 31, 2014 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | At August 31, notes payable consisted of the following: 2014 2013 Notes payable for $116,339 and $65,000 for purchases of equipment for the Pasadena facility at an interest rate of 4.5% and 6%, secured by the said equipment. $ 6,734 $ 47,000 Less: Current portion (6,734) (40,256) Long-term portion $ $ 6,744 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision (benefit) for income taxes consisted of the following: Year Ended August 31, 2014 2013 Current tax (benefit) expense: Federal $ $ State Total current Deferred tax (benefit) expense: Federal State Total deferred Total income tax expense $ $ |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Significant components of the Company's deferred tax liabilities and assets were as follows at August 31, 2014: Current Noncurrent Deferred tax liabilities: Depreciation $ $ (210,814) Deferred tax assets: Net operating loss carryforward 8,610,673 Revenue and expense differences (350,000) 5,197,056 Allowance for uncollectible accounts 513,456 Other (163,456) (28,175) Valuation allowance (13,568,740) Net deferred tax asset (liability) $ $ Significant components of the Company's deferred tax liabilities and assets were as follows at August 31, 2013: Current Noncurrent Deferred tax liabilities: Depreciation $ $ (207,396) Deferred tax assets: Net operating loss carryforward 9,439,548 Revenue and expense differences 13,157 3,580,862 Allowance for uncollectible accounts 513,456 Other (166,758) (29,869) Valuation allowance (359,855) (12,783,145) Net deferred tax asset (liability) $ $ |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the benefit for income taxes with amounts determined by applying the statutory federal income tax rate to income before income taxes and noncontrolling interests is as follows: Year Ended August 31, 2014 2013 Benefit for income taxes computed using the statutory rate of 35% $ (1,327,538) $ (1,210,767) Noncontrolling interest in loss of consolidated subsidiaries (134) 993 Non-deductible expenses/other 901,932 (128,822) Changes in valuation allowance 425,740 1,338,596 Expense for income taxes $ $ |
Stockholders' Equity and Stoc30
Stockholders' Equity and Stock Option Plan (Tables) | 12 Months Ended |
Aug. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes the stock option activities for the fiscal years ended August 31, 2014 and 2013 (share amounts in thousands): Shares Weighted Average Outstanding, August 31, 2012 2,791 $ 1.92 Granted 1.03 Exercised Expired or canceled (1,694) 1.74 Outstanding, August 31, 2013 1,097 2.21 Granted Exercised Expired or canceled (102) 2.45 Outstanding, August 31, 2014 995 2.18 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following summarizes information related to stock options outstanding as of August 31, 2014, and related weighted average price and life information: Options Outstanding Options Exercisable Exercise Prices Number of Weighted Average Number of Shares (Share Amounts In Thousands) $ 1.10 250 7.4 125 $ 1.86 578 6.9 434 $ 4.90 167 0.3 167 Total 995 5.9 726 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Aug. 31, 2014 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table presents the computation of basic and diluted earnings (loss) per common share attributable to the Company: Year Ended August 31, 2014 2013 Basic and diluted earnings (loss): Numerator: Loss from continuing operations $ (3,792,967) $ (3,459,335) Less: Net (income) loss attributable to noncontrolling interest (382) 2,836 Loss from continuing operations attributable to Dynacq Healthcare, Inc. (3,793,349) (3,456,499) Income from discontinued operations, net of income taxes 151,415 Net loss attributable to Dynacq Healthcare, Inc. $ (3,793,349) $ (3,305,084) Denominator: Basic and diluted average common shares outstanding 14,387,425 14,543,626 Basic and diluted earnings (loss) per common share: Loss from continuing operations attributable to Dynacq Healthcare, Inc. $ (0.26) $ (0.24) Income from discontinued operations, net of income taxes 0.01 Net loss attributable to Dynacq Healthcare, Inc. $ (0.26) $ (0.23) |
Other Comprehensive Income (L32
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Aug. 31, 2014 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes the changes in accumulated other comprehensive income (loss) by component: Year Ended August 31, 2014 2013 Available-for-sale securities Accumulated other comprehensive income balance, beginning of period $ 9,382,334 $ 8,411,128 Other comprehensive income (loss): Unrealized gains, net of taxes of $-0- for all periods presented 3,234,012 3,170,706 Reclassification adjustments for gains included in rent and other income (2,199,500) Tax provision Amount reclassified from accumulated other comprehensive income (2,199,500) Other comprehensive income (loss) 3,234,012 971,206 Accumulated other comprehensive income balance, end of period $ 12,616,346 $ 9,382,334 Foreign currency translation adjustment Accumulated other comprehensive income balance, beginning of period $ $ 8,196 Other comprehensive income (loss): Unrealized gains (losses) Reclassification adjustments for gains included in rent and other income (12,610) Tax provision included in accrued liabilities 4,414 Amount reclassified from accumulated other comprehensive income (8,196) Other comprehensive income (loss) (8,196) Accumulated other comprehensive income balance, end of period $ $ |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Aug. 31, 2014 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities at August 31 is as follows: 2014 2013 MDR stop-loss cases accrual, including accrued interest $ 14,848,882 $ 10,231,033 Treasury stock and lawsuit settlements 2,074,713 Marketing fees liability 300,000 300,000 Payroll and related taxes 399,724 306,450 Property taxes 179,621 189,202 Year-end accruals of expenses and other 710,046 818,632 Total accrued liabilities $ 18,512,986 $ 11,845,317 |
Concentrations of Credit Risk34
Concentrations of Credit Risk and Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Aug. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | The mix of gross receivables as at August 31, 2014 and 2013 are as follows: 2014 2013 Workers' compensation 2 % 1 % Workers' compensation subject to Medical Dispute Resolution process 80 % 84 % Commercial 11 % 9 % Medicare / Government 1 % 1 % Self-pay 4 % 4 % Other 2 % 1 % 100 % 100 % |
Industry Segments and Geograp35
Industry Segments and Geographic Information (Tables) | 12 Months Ended |
Aug. 31, 2014 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Summarized financial information concerning the business segments from continuing operations is as follows: Year Ended August 31, 2014 2013 Revenues from external customers Net patient service revenues U.S. Division $ 10,218,309 $ 6,057,411 Corporate Consolidated $ 10,218,309 $ 6,057,411 Loss before taxes and discontinued operations U.S. Division $ (151,547) $ (3,070,917) Corporate (3,641,420) (388,418) Consolidated $ (3,792,967) $ (3,459,335) |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | August 31, 2014 2013 Total Assets U.S. Division $ 15,967,472 $ 9,924,501 Corporate 31,793,055 31,711,826 Consolidated $ 47,760,527 $ 41,636,327 |
Significant Accounting Polici36
Significant Accounting Policies (Details) | 12 Months Ended |
Aug. 31, 2014 | |
Land | |
Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | |
Building and Improvements | |
Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 39 years |
Equipment, furniture and fixtures | |
Accounting Policies [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Significant Accounting Polici37
Significant Accounting Policies (Details 1) | Aug. 31, 2014USD ($) |
Quoted prices in active markets for identical Level 1 [Member] | |
Assets | |
Investments available-for-sale | $ 0 |
Significant other observable inputs Level 2 [Member] | |
Assets | |
Investments available-for-sale | 20,678,130 |
Significant unobservable Level 3 [Member] | |
Assets | |
Investments available-for-sale | $ 0 |
Significant Accounting Polici38
Significant Accounting Policies (Details 2) - USD ($) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Accounting Policies [Line Items] | ||
Gross billed charges | $ 30,459,347 | $ 19,498,962 |
Allowances | 20,241,038 | 13,441,551 |
Net revenue | $ 10,218,309 | $ 6,057,411 |
Allowance percentage | 66.00% | 69.00% |
Significant Accounting Polici39
Significant Accounting Policies (Details 3) - Concentration Risk Benchmark [Domain] | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 100.00% | 100.00% |
Third-Party Payor [Member] | Other Credit Derivatives [Member] | ||
Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 2.00% | 3.00% |
Third-Party Payor [Member] | Workers' compensation [Member] | ||
Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 19.00% | 11.00% |
Third-Party Payor [Member] | Commercial Portfolio Segment [Member] | ||
Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 42.00% | 43.00% |
Third-Party Payor [Member] | Medicare [Member] | ||
Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 23.00% | 28.00% |
Third-Party Payor [Member] | Medicaid [Member] | ||
Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 1.00% | 1.00% |
Self-Pay [Member] | ||
Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 13.00% | 14.00% |
Significant Accounting Polici40
Significant Accounting Policies (Details 4) - USD ($) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Accounting Policies [Line Items] | ||
Balance August 31, 2012 | $ 63,423 | $ 66,259 |
Income (Loss) Attributable to Noncontrolling Interest | 382 | (2,836) |
Balance August 31, 2014 | $ 63,805 | $ 63,423 |
Significant Accounting Polici41
Significant Accounting Policies (Details Textual) | Nov. 13, 2008USD ($) | Feb. 28, 2014USD ($) | Jan. 31, 2014USD ($) | Nov. 30, 2011USD ($) | Sep. 30, 2010USD ($) | Nov. 30, 2012USD ($) | Aug. 31, 2014USD ($)casesshares | Aug. 31, 2013USD ($)shares | Aug. 31, 2011USD ($) | Nov. 30, 2008 | May. 31, 2014USD ($) |
Accounting Policies [Line Items] | |||||||||||
Available For Sale Securities Book Value | $ 450,500 | ||||||||||
Proceeds From Sale Of Real Estate Heldforinvestment | $ 0 | 2,365,017 | |||||||||
Available For Sale Securities Noncurrent | 20,678,130 | 17,458,985 | |||||||||
Gains Losses On Sales Of Investment Real Estate | 0 | 480,108 | |||||||||
Secured Debt | $ 116,339 | $ 65,000 | $ 116,339 | 65,000 | |||||||
Receivables Collection Period | 30 days | ||||||||||
Loss Contingency Refund Of Voluntary Award Including Prejudgment Interest | $ 4,200,000 | ||||||||||
Increase In Facility Contractual Allowance | 149,875 | $ 10,254,990 | |||||||||
Additional Loss Contractual Allowance | 136,542 | $ 779,583 | |||||||||
Interest Payable | 11,300,000 | $ 11,300,000 | |||||||||
Additional Interest Payable Current And Noncurrent | 3,500,000 | $ 3,500,000 | |||||||||
Accrued Liabilities | $ 300,000 | ||||||||||
Loss Contingency, Receivable, Receipts | $ 300,000 | $ 4,200,000 | |||||||||
Loss Contingency, Pending Claims, Number | cases | 179 | ||||||||||
Loss Contingency Pending Claims Number Negatively Affecting Recovery Of Additional Reimbursement | cases | 178 | ||||||||||
Number Of Cases With Opportunity To Establish Criteria | cases | 80 | ||||||||||
Marketing and Advertising Expense | $ 471,000 | $ 125,000 | |||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 1.00% | ||||||||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount | shares | 995,350 | 1,096,475 | |||||||||
Corporate Office Costs | $ 5,900,000 | $ 5,000,000 | |||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | $ 0 | (2,199,500) | |||||||||
Notes Payable Secured By Equipment At Interest Rate | 4.50% | 6.00% | |||||||||
Notes Payable Repayment Period | 36 months | 24 months | |||||||||
Percentage Of Claims With Positive Rulings | 90.00% | ||||||||||
Reimbursement Of Usual And Customary Audited Charges Percentage | 75.00% | ||||||||||
Minimum Billing Requirement For Reimbursement | $ 40,000 | ||||||||||
Number Of Cases Awards Paid By Insurance Carriers | cases | 180 | ||||||||||
Awards Paid By Insurance Carriers Amount | $ 11,000,000 | ||||||||||
Number Of Cases In Which Awards Not Paid By Insurance Carriers | cases | 130 | ||||||||||
Repayments Of Notes Payable | $ 65,000 | $ 40,266 | 1,132,923 | ||||||||
Notes Payable Current | 6,734 | 40,256 | |||||||||
Long Term Notes Payable | $ 0 | 6,744 | |||||||||
Loss Contingency, Claims Settled, Number | 50 | ||||||||||
Litigation Settlement, Amount | $ 4,476,097 | ||||||||||
Maximum [Member] | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Property, Plant and Equipment, Useful Life | 39 years | ||||||||||
Minimum [Member] | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||||||
HONG KONG [Member] | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Trading Securities Realized Gain Loss | $ 161,864 | 695,008 | |||||||||
HONG KONG [Member] | Apartment Building [Member] | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Proceeds From Sale Of Real Estate Heldforinvestment | $ 1,273,402 | ||||||||||
Investments Level2 [Member] | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Available-for-sale Securities, Amortized Cost Basis | $ 7,984,646 | ||||||||||
Pasadena Facility [Member] | |||||||||||
Accounting Policies [Line Items] | |||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | 98.00% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Aug. 31, 2014 | Aug. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 17,846,082 | $ 18,015,097 |
Less accumulated depreciation and amortization | (11,621,946) | (11,691,440) |
Net property and equipment | 6,224,136 | 6,323,657 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 497,110 | 497,110 |
Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 8,989,115 | 8,989,115 |
Equipment, furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 8,359,857 | $ 8,528,872 |
Property and Equipment (Detai43
Property and Equipment (Details Textual) - USD ($) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 366,883 | $ 463,552 |
Property Plant And Equipment Gross Including Capital Leased Assets | 115,359 | 585,450 |
Accumulated Depreciation Depletion And Amortization Property Plant And Equipment Including Capital Leased Assets | $ 38,453 | $ 449,860 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net patient service revenue | $ 451,965 | |
Total costs and expenses | 182,175 | |
Operating income | 269,790 | |
Other income | 4,600 | |
Income before income taxes | 274,390 | |
Provision for income taxes | 0 | |
Income on discontinued operations, net of income taxes | 274,390 | |
Loss on disposal of discontinued assets | (122,975) | |
Benefit for income taxes | 0 | |
Loss on disposal of discontinued operations, net of income taxes | (122,975) | |
Total income on discontinued operations, net of income taxes | $ 0 | $ 151,415 |
Discontinued Operations (Deta45
Discontinued Operations (Details Textual) - USD ($) | 3 Months Ended | |
Aug. 31, 2012 | Aug. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group Impairment Charge | $ 1,100,000 | |
Assets of Disposal Group, Including Discontinued Operation | $ 122,975 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | Aug. 31, 2014 | Aug. 31, 2013 |
Debt Instrument [Line Items] | ||
Notes payable for $116,339 and $65,000 for purchases of equipment for the Pasadena facility at an interest rate of 4.5% and 6%, secured by the said equipment. | $ 6,734 | $ 47,000 |
Less: Current portion | (6,734) | (40,256) |
Long-term portion | $ 0 | $ 6,744 |
Notes Payable (Details Textual)
Notes Payable (Details Textual) - USD ($) | Aug. 31, 2014 | Aug. 31, 2013 | Nov. 30, 2011 | Sep. 30, 2010 |
Debt Instrument [Line Items] | ||||
Secured Debt | $ 116,339 | $ 65,000 | $ 116,339 | $ 65,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 6.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Current tax (benefit) expense: | ||
Federal | $ 0 | $ 0 |
State | 0 | 0 |
Total current | 0 | 0 |
Deferred tax (benefit) expense: | ||
Federal | 0 | 0 |
State | 0 | 0 |
Deferred income tax expense | 0 | 0 |
Total income tax expense | $ 0 | $ 0 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | Aug. 31, 2014 | Aug. 31, 2013 |
Deferred tax liabilities: | ||
Depreciation | $ (210,814) | $ (207,396) |
Deferred tax assets: | ||
Net operating loss carryforward, Noncurrent | 8,610,673 | 9,439,548 |
Revenue and expense differences, Current | (350,000) | 13,157 |
Revenue and expense differences, Noncurrent | 5,197,056 | 3,580,862 |
Allowance for uncollectible accounts, Current | 513,456 | 513,456 |
Other, Current | (163,456) | (166,758) |
Other, Noncurrent | (28,175) | (29,869) |
Valuation allowance, Current | 0 | (359,855) |
Valuation allowance, Noncurrent | (13,568,740) | (12,783,145) |
Net deferred tax asset (liability), Current | 0 | 0 |
Net deferred tax asset (liability), Noncurrent | $ 0 | $ 0 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Income Taxes [Line Items] | ||
Benefit for income taxes computed using the statutory rate of 35% | $ (1,327,538) | $ (1,210,767) |
Noncontrolling interest in loss of consolidated subsidiaries | (134) | 993 |
Non-deductible expenses/other | 901,932 | (128,822) |
Changes in valuation allowance | 425,740 | 1,338,596 |
Total income tax expense | $ 0 | $ 0 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - Aug. 31, 2014 - USD ($) $ in Millions | Total |
Income Taxes [Line Items] | |
Percentage Of Likely Hood To Be Realized Upon Settlement | 50.00% |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 24.6 |
Operating Loss Carry forwards Expiration Period | 2029 through 2033 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) | 12 Months Ended | ||
Aug. 31, 2014 | Aug. 31, 2013 | Aug. 31, 2009 | |
Related Party Transaction [Line Items] | |||
Related Party Transaction Hourly Rate For Physicians | $ 75 | ||
RelatedParty Transaction Payment Made For Emergency Room Physician Services | 515,025 | $ 397,050 | |
Accrued Liabilities Current | 18,512,986 | 11,845,317 | |
Former Chief Executive Officer [Member] | |||
Related Party Transaction [Line Items] | |||
Accrued Liabilities Current | 229,317 | 231,333 | |
Anesthesia Associates [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction Payment Made To Related Party | 60,000 | 60,000 | |
Related Party Transaction, Expenses from Transactions with Related Party | $ 5,000 | ||
Redwood [Member] | |||
Related Party Transaction [Line Items] | |||
Payment For Recruitment Services | $ 240,000 | $ 240,000 | |
Related Party Transaction, Expenses from Transactions with Related Party | $ 20,000 |
Stockholders' Equity and Stoc53
Stockholders' Equity and Stock Option Plan (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Outstanding, Beginning balance | 1,097 | 2,791 |
Shares, Granted | 0 | 0 |
Shares, Exercised | 0 | 0 |
Shares, Expired or canceled | (102) | (1,694) |
Shares Outstanding, Ending balance | 995 | 1,097 |
Weighted Average Option Exercise Price Per Share Outstanding, Beginning balance | $ 2.21 | $ 1.92 |
Weighted Average Option Exercise Price Per Share, Granted | 0 | 1.03 |
Weighted Average Option Exercise Price Per Share, Exercised | 0 | 0 |
Weighted Average Option Exercise Price Per Share, Expired or canceled | 2.45 | 1.74 |
Weighted Average Option Exercise Price Per Share, Ending balance | $ 2.18 | $ 2.21 |
Stockholders' Equity and Stoc54
Stockholders' Equity and Stock Option Plan (Details 1) - Aug. 31, 2014 - $ / shares shares in Thousands | Total |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number of Shares | 995 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 5 years 10 months 24 days |
Options Exercisable, Number of Shares | 726 |
Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range Limit | $ 1.10 |
Options Outstanding, Number of Shares | 250 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 7 years 4 months 24 days |
Options Exercisable, Number of Shares | 125 |
Range Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range Limit | $ 1.86 |
Options Outstanding, Number of Shares | 578 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 6 years 10 months 24 days |
Options Exercisable, Number of Shares | 434 |
Range Three [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range Limit | $ 4.90 |
Options Outstanding, Number of Shares | 167 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 3 months 18 days |
Options Exercisable, Number of Shares | 167 |
Stockholders' Equity and Stoc55
Stockholders' Equity and Stock Option Plan (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2015 | Sep. 30, 2013 | Feb. 28, 2014 | Aug. 31, 2014 | Aug. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | |||
Stock-based compensation expense associated with the Company's stock options | $ 197,364 | $ 109,462 | |||
Total unrecognized compensation expense for outstanding stock options | $ 181,000 | ||||
Preferred Stock Shares Authorized | 5,000,000 | 5,000,000 | |||
Treasury Stock, Shares, Acquired | 125,000 | 530,616 | |||
Treasury Stock, Value, Acquired, Cost Method | $ 0 | $ 27,061 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | $ 0 | |||
Subsequent Event [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Treasury Stock, Shares, Acquired | 427,886 | ||||
Treasury Stock, Value, Acquired, Cost Method | $ 145,053 | ||||
Year 2011 Stock Incentive Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 15,000,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 250,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 14,750,000 | ||||
Year 2000 Stock Incentive Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 5,000,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 745,350 |
Employee Benefit Plan (Details
Employee Benefit Plan (Details Textual) - USD ($) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Company's Contributions to plan | $ 31,612 | $ 29,092 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Numerator: | ||
Loss from continuing operations | $ (3,792,967) | $ (3,459,335) |
Less: Net (income) loss attributable to noncontrolling interest | (382) | 2,836 |
Loss from continuing operations attributable to Dynacq Healthcare, Inc. | (3,793,349) | (3,456,499) |
Income from discontinued operations, net of income taxes | 0 | 151,415 |
Net loss attributable to Dynacq Healthcare, Inc. | $ (3,793,349) | $ (3,305,084) |
Denominator: | ||
Basic and diluted average common shares outstanding | 14,387,425 | 14,543,626 |
Basic and diluted earnings (loss) per common share: | ||
Loss from continuing operations attributable to Dynacq Healthcare, Inc. | $ (0.26) | $ (0.24) |
Income (loss) from discontinued operations, net of income taxes | 0 | 0.01 |
Net loss attributable to Dynacq Healthcare, Inc. | $ (0.26) | $ (0.23) |
Earnings (Loss) Per Share (De58
Earnings (Loss) Per Share (Details Textual) - shares | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options with exercise prices exceeding current market prices | 995,350 | 1,096,475 |
Other Comprehensive Income (L59
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Available-for-sale securities | ||
Accumulated other comprehensive income balance, beginning of period | $ 9,382,334 | $ 8,411,128 |
Other comprehensive income (loss): | ||
Unrealized gains, net of taxes of $-0- for all periods presented | 3,234,012 | 3,170,706 |
Reclassification adjustments for gains included in rent and other income | 0 | (2,199,500) |
Tax provision | 0 | 0 |
Amount reclassified from accumulated other comprehensive income | 0 | (2,199,500) |
Other comprehensive income (loss) | 3,234,012 | 971,206 |
Accumulated other comprehensive income balance, end of period | 12,616,346 | 9,382,334 |
Foreign currency translation adjustment | ||
Accumulated other comprehensive income balance, beginning of period | 0 | 8,196 |
Other comprehensive income (loss): | ||
Unrealized gains (losses) | 0 | 0 |
Reclassification adjustments for gains included in rent and other income | 0 | (12,610) |
Tax provision included in accrued liabilities | 0 | (4,414) |
Amount reclassified from accumulated other comprehensive income | 0 | (8,196) |
Other comprehensive income (loss) | 0 | (8,196) |
Accumulated other comprehensive income balance, end of period | $ 0 | $ 0 |
Other Comprehensive Income (L60
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Details Textual) - USD ($) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax | $ 0 | $ 0 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) | Aug. 31, 2014 | Aug. 31, 2013 |
Accrued Liabilities [Line Items] | ||
MDR stop-loss cases accrual, including accrued interest | $ 14,848,882 | $ 10,231,033 |
Treasury stock and lawsuit settlements | 2,074,713 | 0 |
Marketing fees liability | 300,000 | 300,000 |
Payroll and related taxes | 399,724 | 306,450 |
Property taxes | 179,621 | 189,202 |
Year-end accruals of expenses and other | 710,046 | 818,632 |
Total accrued liabilities | $ 18,512,986 | $ 11,845,317 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textuals) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2015 | Sep. 30, 2013 | Aug. 31, 2014 | Aug. 31, 2013 | May. 31, 2014 | |
Commitment And Contingencies [Line Items] | |||||
Interest Payable | $ 11,300,000 | $ 11,300,000 | |||
Additional Interest Payable Current And Noncurrent | 3,500,000 | $ 3,500,000 | |||
Operating Leases, Rent Expense | 106,000 | $ 131,000 | |||
Operating Leases, Future Minimum Payments Due | 204,000 | ||||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 68,000 | ||||
Operating Leases, Future Minimum Payments, Due in Two Years | 64,000 | ||||
Operating Leases, Future Minimum Payments, Due in Three Years | 58,000 | ||||
Operating Leases, Future Minimum Payments, Due in Four Years | 14,000 | ||||
Operating Leases, Future Minimum Payments, Due in Five Years | $ 14,000 | ||||
Debt Instrument, Interest Rate, Effective Percentage | 4.50% | ||||
Property Plant And Equipment Amount Secured By Notes Payable In Year Two | $ 7,000 | ||||
Aggregate Commitment Amount | 19,900,000 | ||||
Aggregate Commitment Amount Due In Next Twelve Months | 17,500,000 | ||||
Aggregate Commitment Amount Due In Second Year | 657,000 | ||||
Aggregate Commitment Amount Due In Third Year | 465,000 | ||||
Aggregate Commitment Amount Due In Four Year | 279,000 | ||||
Aggregate Commitment Amount Due In Five Year | 264,000 | ||||
Aggregate Commitment Amount Due In After Fifth Year | 660,000 | ||||
Advertising Expense | 471,000 | 125,000 | |||
Capital Leases, Future Minimum Payments Due | 72,000 | ||||
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 29,000 | ||||
Capital Leases, Future Minimum Payments Due in Two Years | 32,000 | ||||
Capital Leases, Future Minimum Payments Due in Three Years | $ 11,000 | ||||
Treasury Stock, Shares, Acquired | 125,000 | 530,616 | |||
Litigation Settlement, Expense | $ 2,047,652 | ||||
Subsequent Event [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Treasury Stock, Shares, Acquired | 427,886 | ||||
Administrative Support Services [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Payments Made Under Agreements | 388,000 | 440,000 | |||
Other Commitment | 2,775,000 | ||||
Other Commitment, Due in Next Twelve Months | 660,000 | ||||
Other Commitment, Due in Second Year | 531,000 | ||||
Other Commitment, Due in Third Year | 396,000 | ||||
Other Commitment, Due in Fourth Year | 264,000 | ||||
Other Commitment, Due in Fifth Year | 264,000 | ||||
Other Commitment, Due after Fifth Year | 660,000 | ||||
Management Services [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Other Commitment | 895,000 | ||||
Other Commitment, Due in Next Twelve Months | 865,000 | ||||
Other Commitment, Due in Second Year | 30,000 | ||||
Service Agreements [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Commitments To Complete Contracts | 1,145,000 | $ 1,156,000 | |||
Other Commitment, Due in Second Year | $ 1,068,000 |
Concentrations of Credit Risk63
Concentrations of Credit Risk and Fair Value of Financial Instruments (Details) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 100.00% | 100.00% |
Third Party Payer One [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 18.00% | 16.00% |
Third Party Payer One [Member] | Workers' compensation [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 2.00% | 1.00% |
Third Party Payer One [Member] | Commercial [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 11.00% | 9.00% |
Third Party Payer One [Member] | Workers Compensation Subject To Medical Dispute Resolution Process [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 80.00% | 84.00% |
Third Party Payer One [Member] | Medicare Government [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 1.00% | 1.00% |
Third Party Payer One [Member] | Other Credit Derivatives [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 2.00% | 1.00% |
Self-Pay [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 13.00% | 14.00% |
Self-Pay [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 4.00% | 4.00% |
Concentrations of Credit Risk64
Concentrations of Credit Risk and Fair Value of Financial Instruments (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 100.00% | 100.00% |
Percentage Of Third Party Gross Receivables | 90.00% | |
Cash, Uninsured Amount | $ 15.2 | |
Credit Concentration Risk [Member] | Major Customers One [Member] | Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 18.00% | 22.00% |
Credit Concentration Risk [Member] | Third Party Payer One [Member] | Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 18.00% | 16.00% |
Customer Concentration Risk [Member] | Revenue [Member] | Surgeons Five [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 84.00% | |
Customer Concentration Risk [Member] | Revenue [Member] | Surgeons Seven [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 90.00% | |
Customer Concentration Risk [Member] | Major Customers Two [Member] | Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 12.00% | 11.00% |
Customer Concentration Risk [Member] | Major Customers Three [Member] | Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 10.00% | 11.00% |
Customer Concentration Risk [Member] | Major Customers Four [Member] | Revenue [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 10.00% |
Industry Segments and Geograp65
Industry Segments and Geographic Information (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2014 | Aug. 31, 2013 | |
Segment Reporting Information [Line Items] | ||
Net patient service revenues | $ 10,218,309 | $ 6,057,411 |
Income (loss) before taxes and discontinued operations | (3,792,967) | (3,459,335) |
US Division [Member] | ||
Segment Reporting Information [Line Items] | ||
Net patient service revenues | 10,218,309 | 6,057,411 |
Income (loss) before taxes and discontinued operations | (151,547) | (3,070,917) |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Net patient service revenues | 0 | 0 |
Income (loss) before taxes and discontinued operations | $ (3,641,420) | $ (388,418) |
Industry Segments and Geograp66
Industry Segments and Geographic Information (Details 1) - USD ($) | Aug. 31, 2014 | Aug. 31, 2013 |
Segment Reporting Information [Line Items] | ||
Total Assets | $ 47,760,527 | $ 41,636,327 |
US Division [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 15,967,472 | 9,924,501 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 31,793,055 | $ 31,711,826 |
Industry Segments and Geograp67
Industry Segments and Geographic Information (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Aug. 31, 2012 | Aug. 31, 2014 | Aug. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Impairment charge | $ 1,100,000 | ||
Gain from marketable securities | $ 2,200,000 | ||
Balance from marketable securities | $ 20,678,130 | 17,458,985 | |
Discontinued Operation Gain Loss On Disposal Of Discontinued Operation Net Of Tax | (122,975) | ||
HONG KONG [Member] | |||
Segment Reporting Information [Line Items] | |||
Gain (Loss) on the initial public offerings of equity securities | $ 161,864 | $ 695,008 |