Rennova Health (RNVA) 10-Q 17 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 09, 2016
Document And Entity Information
Entity Registrant Name	Rennova Health, Inc.
Entity Central Index Key	931,059
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		14,782,557
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash	$ 4,900,806	$ 8,833,230
Accounts receivable, net	7,051,842	8,149,484
Prepaid expenses and other current assets	1,317,948	1,193,077
Income tax refunds receivable	2,516,028	2,415,013
Total current assets	15,786,624	20,590,804
Property and equipment, net	6,449,872	7,148,295
Other assets:
Deposits	232,774	232,774
Total assets	22,469,270	27,971,873
Current liabilities:
Accounts payable	3,436,654	4,360,035
Accrued expenses	4,600,474	5,285,455
Current portion of notes payable	5,269,031	269,031
Current portion of notes payable, related party	4,174,742	5,133,888
Current portion of capital lease obligation	1,323,708	1,323,708
Total current liabilities	18,804,609	16,372,117
Other liabilities:
Notes payable, net of current portion	2,898,242	2,903,898
Capital lease obligations, net of current portion	2,070,990	2,394,171
Derivative liabilities	4,123,929	7,495,486
Total liabilities	$ 27,897,770	$ 29,165,672
Commitments and contingencies
Stockholders' equity:
Common stock, $0.01 par value, 500,000,000 shares authorized, 14,782,557 shares issued and outstanding at March 31, 2016, 50,000,000 shares authorized, 14,651,837 shares issued and outstanding at December 31, 2015	$ 147,825	$ 143,951
Additional paid-in-capital	26,694,274	26,688,837
(Accumulated deficit) retained earnings	(32,271,187)	(28,027,177)
Total stockholders' equity	(5,428,500)	(1,193,799)
Total liabilities and stockholders' equity	22,469,270	27,971,873
Series B Preferred Stock [Member]
Stockholders' equity:
Preferred stock, 5,000,000 shares authorized:	50	50
Series C Preferred Stock [Member]
Stockholders' equity:
Preferred stock, 5,000,000 shares authorized:	88	90
Series E Preferred Stock [Member]
Stockholders' equity:
Preferred stock, 5,000,000 shares authorized:	$ 450	$ 450

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Preferred stock shares authorized	5,000,000
Common stock par value	$ .01	$ .01
Common stock shares authorized	500,000,000	50,000,000
Common stock shares issued	14,782,557	14,651,837
Common stock shares outstanding	14,782,557	14,651,837
Series B Preferred Stock [Member]
Preferred stock shares authorized	5,000	5,000
Preferred stock par value	$ .01	$ .0001
Preferred stock shares issued	5,000	5,000
Preferred stock shares outstanding	5,000	5,000
Series C Preferred Stock [Member]
Preferred stock shares authorized	10,350	10,350
Preferred stock par value	$ .01	$ 0.01
Preferred stock shares issued	8,818	9,000
Preferred stock shares outstanding	8,818	9,000
Series E Preferred Stock [Member]
Preferred stock shares authorized	45,000	100,000
Preferred stock par value	$ .01	$ 0.01
Preferred stock shares issued	45,000	45,000
Preferred stock shares outstanding	45,000	45,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues
Net Revenues	$ 1,878,813	$ 13,648,782
Operating expenses:
Direct costs of revenue	564,200	4,031,274
General and administrative	5,954,046	5,639,933
Sales and marketing expenses	873,440	1,182,221
Engineering	522,768	0
Bad debt	1,285	0
Depreciation and amortization	727,270	580,793
Total operating expenses	8,643,009	11,434,221
Income (Loss) from operations	(6,764,196)	2,214,561
Other income (expense):
Other income	100,010	21
Unrealized gain (loss) on derivative instruments	3,433,588	0
Gain (Loss) on legal settlement	0	275,028
Interest expense	(1,013,413)	(505,101)
Total other income (expense)	2,520,185	(230,052)
Income (Loss) before income taxes	(4,244,011)	1,984,509
Provision for income taxes	0	977,500
Net income (loss) attributable to Rennova Health	(4,244,011)	1,007,009
Preferred stock dividends	0	523,050
Net income (loss) attributable to Rennova Health common shareholders	$ (4,244,011)	$ 483,959
Net income (loss) per common share: Basic	$ (.29)	$ .04
Net income (loss) per common share: Diluted	$ (0.29)	$ 0.04
Weighted average number of shares outstanding during the period - Basic	14,816,586	11,937,530
Weighted average number of shares outstanding during the period - Diluted	14,816,586	12,809,335

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows provided by (used in) operating activities:
Net income (loss)	$ (4,244,011)	$ 1,007,009
Adjustments to reconcile net income (loss) to net cash provided by operations:
Depreciation and amortization	727,270	580,793
Non-cash gain on derivative instruments	(3,433,588)	0
Stock issued in lieu of cash compensation	9,310	300,000
Stock-based compensation	0	56,463
Bad debts	1,285	6,473,733
Accretion of beneficial conversion feature as interest	789,376	246,575
Accretion of debt discount	0	93,699
Gain on extinguishment of debt	(100,000)	0
Gain on legal settlement	0	(275,028)
Changes in operating assets and liabilities:
Accounts receivable	1,096,357	(12,843,394)
Prepaid expenses and other current assets	(126,863)	(16,935)
Security deposits	0	(39,222)
Accounts payable	(923,381)	(299,697)
Accrued expenses	(684,981)	417,102
Income tax assets and liabilities	(101,015)	457,769
Deferred tax liabilities	0	48,900
Net cash used in operating activities	(6,990,241)	(3,792,233)
Cash flows provided by (used in) investing activities:
Purchase of property and equipment	(19,002)	(213,142)
Net cash provided by investing activities	(19,002)	(213,142)
Cash flows provided by (used in) financing activities:
Dividends on Series B preferred stock	0	(523,050)
Proceeds from issuance of notes payable, related party	3,000,000	0
Proceeds from issuance of notes payable	5,000,000	3,030,000
Payments on notes payable	(4,600,000)	(60,000)
Payments on capital lease obligations	(323,181)	(197,316)
Net cash provided by financing activities	3,076,819	2,249,634
Net decrease in cash	(3,932,424)	(1,755,741)
Cash at beginning of period	8,833,230	2,406,246
Cash at end of period	4,900,806	650,505
Supplemental disclosure of cash flow information:
Cash paid for interest	520,000	160,835
Cash paid for taxes	0	470,831
Acquisition of noncontrolling interest in Biohealth Medical Laboratory, Inc.:
Deposits on acquisitions	0	259,875
Goodwill	0	(138,871)
Noncontrolling interest	$ 0	$ (121,004)

1. Organization and Presentatio

1. Organization and Presentation	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Presentation	Rennova Health, Inc. (“Rennova”), together with its subsidiaries (the “Company”, “we”, “us” or “our”), is a vertically integrated provider of healthcare related products and services. Our principal lines of business are clinical laboratory operations, supportive software solutions, which includes EHR (Electronic Health Records), Medical Billing Services, and LIS (Lab Information Services), and decision support and informatics operations. We present our financial results based upon our three business segments listed above. Merger between the Company and Medytox Solutions, Inc. On November 2, 2015, pursuant to the terms of the Agreement and Plan of Merger, dated as of April 15, 2015, by and among the Company, CollabRx Merger Sub, Inc. (“Merger Sub”), a direct wholly-owned subsidiary of the Company formed for the purpose of the merger, and Medytox Solutions, Inc. (“Medytox”), Merger Sub merged with and into Medytox, with Medytox as the surviving company and a direct, wholly-owned subsidiary of the Company (the “Merger”). Prior to closing, the Company amended its certificate of incorporation to effect a 1-for-10 reverse stock split and to change its name to Rennova Health, Inc. In connection with the Merger, (i) each share of common stock of Medytox was converted into the right to receive approximately 0.4096 shares of common stock of the Company, (ii) each share of Series B Preferred Stock of Medytox was converted into the right to receive one share of a newly-authorized Series B Convertible Preferred Stock of the Company, and (iii) each share of Series E Convertible Preferred Stock of Medytox was converted into the right to receive one share of a newly-authorized Series E Convertible Preferred Stock of the Company. This transaction has been accounted for as a reverse merger in accordance with Generally Accepted Accounting Principles in the United States ("US GAAP") and, as such, the financial statements presented prior to November 2, 2015 are those of Medytox and the financial statements presented after November 2, 2015 reflect the operations, of the combined company. All common share amounts prior to November 2, 2015 have been retroactively restated to reflect the conversion ratio. Holders of Company equity prior to the closing of the Merger (including all outstanding Company common stock and all restricted stock units, options and warrants exercisable for shares of Company common stock) held 10% of the Company's common stock immediately following the closing of the Merger, and holders of Medytox equity prior to the closing of the Merger (including all outstanding Medytox common stock and all outstanding options exercisable for shares of Medytox common stock, but less certain options that were cancelled upon the closing pursuant to agreements between Medytox and such optionees) held 90% of the Company's common stock immediately following the closing of the Merger, in each case on a fully diluted basis, provided, however, outstanding shares of the newly designated Series B Convertible Preferred Stock and Series E Convertible Preferred Stock, certain outstanding convertible promissory notes exercisable for Company common stock after the closing and certain option grants expected to be made following the closing of the Merger are excluded from such ownership percentages. On November 3, 2015, the common stock of Rennova Health, Inc. commenced trading on the Nasdaq Capital Market under the symbol “RNVA.” Prior to that date, our common stock was listed on the NASDAQ Capital Market under the symbol “CLRX.” Immediately after the consummation of the Merger, the Company had 13,750,010 shares of common stock, 5,000 shares of Series B Convertible Preferred Stock and 45,000 shares of Series E Convertible Preferred Stock issued and outstanding. Potential De-Listing of the Company’s Stock On March 16, 2016, the Company was notified by Nasdaq that the bid price of the Company's common stock closed below the minimum $1.00 share requirement for continued inclusion under Nasdaq Rule 5550(a)(2) (the “Bid Price Rule”). In accordance with Nasdaq Rule 5810(c)(3)(A), the Company has 180 calendar days, or until September 12, 2016, to regain compliance. If at any time before September 12, 2016, the bid price of the Company's common stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, the Company will regain compliance with the Bid Price Rule. If the Company does not regain compliance by September 12, 2016, an additional 180 days may be granted to regain compliance, so long as the Company meets The Nasdaq Capital Market initial listing criteria (except for the bid price requirement). On April 26, 2016, the Company was notified by Nasdaq that the stockholders’ equity balance reported on its Form 10-K for the year ended December 31, 2015 fell below the $2,500,000 minimum requirement for continued listing under the Nasdaq Capital Market’s Listing Rule 5550(b)(1) (the “Equity Rule”). As of December 31, 2015, the Company’s stockholder’s equity balance was $(1,193,799). In accordance with the Equity Rule, the Company has until June 10, 2016 to prepare and submit a plan to Nasdaq outlining how it intends to regain compliance. If the plan is accepted, the Company can be granted up to 180 calendar days from April 26, 2016 to evidence compliance. There can be no guarantee that the Company will be able to regain compliance with the continued listing requirement of the Equity Rule or that its plan will be accepted by Nasdaq. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with US GAAP for interim financial statement presentation and in accordance with Form 10-Q. Accordingly, they do not include all of the information and footnotes required in annual financial statements. In the opinion of management, the unaudited interim condensed consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the financial position and results of operations and cash flows for the interim periods reported in this Form 10-Q. The results of operations presented are not necessarily indicative of the results to be expected for any other interim period or for the entire year. These unaudited interim condensed consolidated financial statements should be read in conjunction with the 2015 audited annual financial statements included in the Annual Report on Form 10-K/A, filed with the U.S. Securities and Exchange Commission (“SEC”) on May 17, 2016. The Company’s consolidated financial statements are prepared using US GAAP applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has recently accumulated significant losses and has negative cash flows from operations, which raise substantial doubt about its ability to continue as a going concern. Management's plans with respect to alleviating the adverse financial conditions that caused management to express substantial doubt about the Company’s ability to continue as a going concern are as follows: The Company is currently executing on a plan of action to increase the volume of samples processed by its labs. In addition, the Company is executing on a plan of action to increase the number of customers for its supportive software solutions. While the results of these plans of action are encouraging, no conclusion can be drawn at this time about the ultimate efficacy of these plans of action. In order to support the Company’s continued operations, the Company received proceeds of $5,000,000 from pledging certain of its accounts receivable as collateral to a prepaid forward purchase contract. The Company is also entitled to $2,516,028 in income tax refunds, the claim for which was filed with the IRS in early April 2016. There can be no assurance as to the timing of the receipt of the income tax refunds for which the Company has filed. There can be no assurance that the Company will be able to achieve its business plans, raise any more required capital or secure the financing necessary to achieve its current operating plan. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plan described in the preceding paragraphs and eventually regain profitable operations. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

2. Accounts Receivable

2. Accounts Receivable	3 Months Ended
	Mar. 31, 2016
Receivables [Abstract]
Accounts Receivable	Accounts receivable at March 31, 2016 and December 31, 2015 consisted of the following: March 31, December 31, 2016 2015 Accounts receivable - clinical laboratory operations $ 96,227,506 $ 105,332,339 Accounts receivable - supportive software solutions 329,395 569,351 Total accounts receivable 96,556,901 105,901,690 Less: Allowance for discounts (89,328,698 ) (97,577,130 ) Allowance for bad debts (176,361 ) (175,076 ) Accounts receivable, net $ 7,051,842 $ 8,149,484

3. Long-Lived Assets

3. Long-Lived Assets	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Long-Lived Assets	Property and equipment at March 31, 2016 and December 31, 2015 consisted of the following: March 31, December 31, 2016 2015 Medical equipment $ 922,551 $ 991,903 Equipment 577,316 547,555 Equipment under capital leases 5,663,333 5,663,332 Furniture 561,688 560,400 Leasehold improvements 1,776,957 1,760,125 Vehicles 196,534 196,534 Computer equipment 753,225 661,234 Software 1,837,174 1,878,848 12,288,778 12,259,931 Less accumulated depreciation (5,838,906 ) (5,111,636 ) Property and equipment, net $ 6,449,872 $ 7,148,295 Depreciation of property and equipment was $727,270 and $580,793 for the three months ended March 31, 2016 and 2015, respectively. Management periodically reviews the valuation of long-lived assets for potential impairments. Management has not recognized an impairment of these assets to date.

4. Notes Payable

4. Notes Payable	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Notes Payable	The Company and its subsidiaries are party to a number of loans with affiliates and unrelated parties. At March 31, 2016 and December 31, 2015, notes payable consisted of the following: Notes Payable – Third Parties March 31, 2016 Face Value Unamortized Fair Value of Net Value of Note Discount Derivatives of Note Loan payable under prepaid forward purchase contract in the amount of $5,000,000, at 20% interest, with no payments of interest or principal through March 30, 2017. All outstanding amounts are due March 30, 2017. $ 5,000,000 $ – $ – $ 5,000,000 Loan payable to TCA Global Master Fund, LP in the amount of $3,000,000, at 16% interest, with interest only payments monthly through September 11, 2016. Principal and interest payments are due monthly from October 11, 2016 through September 11, 2017. 3,000,000 (305,188 ) 130,849 2,825,661 Loan payable to CommerceNet in the amount of $250,000 at 1.06% interest, increasing to 6% after two years. Principal and interest payments are made annually from July 12, 2015 through July 12, 2017. 170,806 – – 170,806 Loan payable to Jay Tenebaum in the amount of $250,000 at 1.06% interest, increasing to 6% after two years. Principal and interest payments are made annually from July 12, 2015 through July 12, 2017. 170,806 – – 170,806 $ 8,341,612 $ (305,188 ) $ 130,849 8,167,273 Less current portion (5,269,031 ) Notes payable, net of current portion $ 2,898,242 December 31, 2015 Face Value Unamortized Fair Value of Net Value of Note Discount Derivatives of Note Loan payable to former shareholder of Epinex Diagnostics Laboratories, Inc. in the amount of $400,000, at 0% interest, with principal payments of $100,000 due in periodic installments from November 26, 2014 through February 26, 2016. Amount recorded is net of imputed discount of $1,775 at December 31, 2015. $ 100,000 $ (1,775 ) $ – $ 98,225 Loan payable to TCA Global Master Fund, LP in the amount of $3,000,000, at 16% interest, with interest only payments monthly through September 11, 2016. Principal and interest payments are due monthly from October 11, 2016 through September 11, 2017. 3,000,000 (453,025 ) 186,117 2,733,092 Loan payable to CommerceNet in the amount of $250,000 at 1.06% interest, increasing to 6% after two years. Principal and interest payments are made annually from July 12, 2015 through July 12, 2017. 170,806 – – 170,806 Loan payable to Jay Tenebaum in the amount of $250,000 at 1.06% interest, increasing to 6% after two years. Principal and interest payments are made annually from July 12, 2015 through July 12, 2017. 170,806 – – 170,806 $ 3,441,612 $ (454,800 ) $ 186,117 3,172,929 Less current portion (269,031 ) Notes payable, net of current portion $ 2,903,898 Notes Payable – Related Parties March 31, 2016 Face Value Unamortized Fair Value of Net Value of Note Discount Derivatives of Note Convertible debenture dated December 31, 2014 in the amount of $3,000,000 which bears interest at 10% and is due December 31, 2016. The note provides the lender, D&D Funding II, LLC, the option to convert the note into the Company's common stock at a 25% discount to the average trading price (as defined in the note agreement) for the ten consecutive trading days prior to the conversion date. $ 3,000,000 $ (1,588,495 ) $ 2,263,237 $ 3,674,742 Loan payable to Alcimede, LLC in the amount of $3,000,000, at 6% interest, with one payment of $3,000,000, plus interest, due on February 2, 2017. (On June 29, 2015, Alcimede exercised options to purchase 1,000,000 shares for $2,500,000, which reduced the loan.) $ 500,000 – – $ 500,000 Current portion of notes payable, related party $ 3,500,000 $ (1,588,495 ) $ 2,263,237 $ 4,174,742 December 31, 2015 Face Value Unamortized Fair Value of Net Value of Note Discount Derivatives of Note Convertible debenture dated December 31, 2014 in the amount of $3,000,000 which bears interest at 10% and is due December 31, 2016. The note provides the lender, D&D Funding II, LLC, the option to convert the note into the Company's common stock at a 25% discount to the average trading price (as defined in the note agreement) for the ten consecutive trading days prior to the conversion date. $ 3,000,000 $ (2,236,112 ) $ 2,270,000 $ 3,033,888 Loan payable to Alcimede, LLC in the amount of $3,000,000, at 6% interest, with one payment of $3,000,000, plus interest, due on February 2, 2016. (On June 29, 2015, Alcimede exercised options to purchase 1,000,000 shares for $2,500,000, which reduced the loan.) $ 500,000 – – $ 500,000 Loan payable to Christopher Diamantis in the amount of $1,600,000. One payment of $1,600,000 due January 7, 2016 plus $100,000 of interest. $ 1,600,000 – – $ 1,600,000 Current portion of notes payable, related party $ 5,100,000 $ (2,236,112 ) $ 2,270,000 $ 5,133,888 Convertible Debenture Dated December 31, 2014 On December 31, 2014, the Company borrowed $3,000,000 from D&D Funding II, LLC (“D&D”), Christopher Diamantis, a director of the Company, is the manager and 50% owner of D&D. In January 2016, the Company temporarily repaid $3,000,000 of the amounts due under the D&D note. In addition to the principal amount, the Company paid $300,000 in cash for interest for 2015. In March 2016, the Company re-borrowed 100% of the principal amount repaid in January 2016. This note is convertible into the Company’s Common Stock at a 25% discount to the trailing ten day average closing price at any time prior to the repayment. In the event of conversion, the holder of the note is also entitled to receive a number of warrants to purchase the Company’s Common Stock equal to the number of shares issued upon conversion with exercise prices equal to the trailing ten day average closing price of our Common Stock. These two features are derivative instruments that are re-valued quarterly and are reflected in the table above. Prepaid Forward Purchase Contract On March 31, 2016, the Company entered into an agreement to pledge certain of its accounts receivable as collateral against a prepaid forward purchase contract. The receivables had an estimated collectable value of $8,700,000 and have been adjusted down to approximately $4,300,000 in our books and records. The consideration received was $5,000,000. In exchange for the consideration received, the counterparty received the right to: (i) a 20% per annum investment return from the Company on the consideration, with a minimum repayment term of six months and minimum return of $500,000, (ii) all payments recovered from the accounts receivable up to $5,250,000, if paid in full within six months, or $5,500,000, if not paid in full within six months, and (iii) 20% of all payments of the accounts receivable in excess of amounts received in (i) and (ii). On March 31, 2017, to the extent that the counterparty has not been paid $6,000,000, the Company is required to pay the difference. Christopher Diamantis, a director of the Company, guaranteed the Company's payment obligation of up to $6,000,000. For providing the guarantee, and to the extent that the counterparty receives amounts payable under clause (ii) above exceeding $5,000,000, Mr. Diamantis will be paid a fee by the counterparty equal to the amount by which the amount received under clause (ii) above exceeds $5,000,000 ($250,000 or $500,000, depending on the timing of payment).

5. Related Party Transactions

5. Related Party Transactions	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	On December 31, 2014, the Company borrowed $3,000,000 from D&D Funding II, LLC (“D&D”). Christopher Diamantis, a director of the Company, is the manager and 50% owner of D&D. In January 2016, the Company temporarily repaid $3,000,000 of the amounts due under the D&D note. In addition to the principal amount, the Company paid $300,000 in cash for interest for 2015. In March 2016, the Company re-borrowed 100% of the principal amount repaid in January 2016. In April 2016, the Company repaid $2,250,000 of the $3,000,000 then outstanding under the D&D note from proceeds of the prepaid forward purchase contract. Alcimede LLC, of which the CEO of the Company is the sole manager, had advanced loans to the Company for the payment of certain operating expenses. The loans were non-interest bearing and were due on demand. Alcimede was paid $96,750 and $85,905 for consulting fees pursuant to a consulting agreement for the three months ended March 31, 2016 and 2015, respectively. On February 3, 2015, the Company borrowed $3,000,000 from Alcimede LLC. The note has an interest rate of 6% and is due on February 2, 2017. On June 29, 2015, Alcimede exercised options granted in October 2012 to purchase one million shares of the Company’s common stock at an exercise price of $2.50 per share. The loan outstanding was reduced in satisfaction of the aggregate exercise price of $2,500,000. On February 27, 2015, the Company borrowed $30,000 from Alcimede LLC and this loan was repaid on April 15, 2015. On June 30, 2015, the Company issued 200,000 shares of common stock to SS International Consulting Ltd., of which a former director of the Company is the sole manager, pursuant to a consulting contract. On September 4, 2015, the Company borrowed $500,000 from Christopher Diamantis, a director of the Company. This loan was repaid in the fourth quarter of 2015 with a 10% fee in cash. In the fourth quarter of 2015, the Company borrowed $1,600,000 from Mr. Diamantis which was due January 7, 2016. In January 2016, the Company repaid $1,600,000 of the amounts due Mr. Diamantis. In addition to the principal amount, the Company paid $100,000 in cash for interest. On August 1, 2015, Medytox entered into a non-exclusive consulting agreement with Monarch Capital, LLC ("Monarch"). Michael Goldberg, at the time a director of Medytox and currently a director of the Company, is the Managing Director of Monarch. Under this agreement, Monarch provides business and financial advice. The term of the agreement is through August 31, 2016, and is subject to automatic renewal for an additional one year unless Medytox provides the consultant with 180 days prior written notice of its intent not to renew. Medytox paid $7,500 at signing and pays $12,500 a month for the first three months, $15,000 a month for the second three months, $17,500 a month for the third three months and $20,000 a month for the fourth three months. If the agreement is renewed for an additional year the monthly payment will increase by 5%. All of these transactions were completed at arm’s length at values commensurate with those of independent third parties.

6. Capital Lease Obligations

6. Capital Lease Obligations	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Capital Lease Obligations	The Company leases various assets under capital leases expiring through 2020 as follows: March 31, December 31, 2016 2015 Medical equipment $ 5,663,333 $ 5,663,332 Less accumulated depreciation (2,443,384 ) (2,093,920 ) Net $ 3,219,949 $ 3,569,412 Depreciation expense on assets under capital leases was $349,464 and $215,045 for the three months ended March 31, 2016 and 2015, respectively. Aggregate future minimum rentals under capital leases are as follows: December 31, 2016 $ 1,217,765 2017 1,432,542 2018 845,330 2019 217,412 2020 32,611 Total 3,745,660 Less interest 350,962 Present value of minimum lease payments 3,394,698 Less current portion of capital lease obligations 1,323,708 Capital lease obligations, net of current portion $ 2,070,990

7. Stockholders' Equity

7. Stockholders' Equity	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Stockholders' Equity	Preferred Stock During the three months ended March 31, 2015, the former Medytox Series B preferred shareholders earned dividends totaling $523,050. At March 31, 2016 and December 31, 2015, accrued dividends of $1,684,148 and $2,099,148, respectively, were included in accrued expenses. All outstanding Medytox Series B preferred shares were cancelled in connection with the Merger in exchange for shares of Rennova Series B Convertible Preferred Stock, which only receives dividends when dividends are declared on our common stock. During the three months ended March 31, 2016, Series C preferred shareholders converted a total of 182 shares of Series C preferred stock into 117,420 shares of Common Stock. Common Stock During the three months ended March 31, 2016, the Company issued an aggregate of 13,300 shares of the Company’s common stock to a consultant for services. The Company recognized $9,310 in compensation costs associated with these issuances. Stock Options During the three months ended March 31, 2016 and 2015, no stock options were granted or forfeited. Basic and Diluted Income per Share The following table presents the reconciliation of the numerators and denominators used in the calculation of earnings per share for the three months ended March 31, 2016 and 2015. For the three months ended March 31, 2015, all share and per share amounts have been restated as a result of the Merger. Three Months Ended March 31, 2016 2015 Basic: Numerator - net income (loss) available to common stockholders $ (4,244,011 ) 483,959 Denominator - weighted-average shares outstanding 14,816,586 11,937,530 Net income (loss) per share - Basic $ (0.29 ) $ 0.04 Diluted: Numerator: Net income (loss) available to common stockholders $ (4,244,011 ) $ 483,959 Interest expense on convertible debt, net of taxes – 46,912 (4,244,011 ) 530,871 Denominator: Weighted-average shares outstanding 14,816,586 11,937,530 Weighted-average equivalent shares options and warrants – 354,901 Weighted-average equivalent shares from convertible debt – 409,638 Weighted-average equivalent shares from Series C convertible preferred stock – – Weighted-average equivalent shares from Series D convertible preferred stock – 73,643 Weighted-average equivalent shares from Series E convertible preferred stock – 33,623 14,816,586 12,809,335 Net income (loss) per share - Diluted $ (0.29 ) $ 0.04 Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. As of March 31, 2016 and 2015, the following potential common stock equivalents were excluded from the calculation of Diluted EPS as their effect was anti-dilutive: March 31, March 31, 2016 2015 Stock options outstanding 1,822,675 9,923,474 Warrants outstanding 6,898,560 – Convertible debt 8,791,343 – Convertible preferred stock 11,422,977 – 28,935,555 9,923,474

8. Income Taxes

8. Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	The Company recognized no income tax expense or benefit for the three months ended March 31, 2016. The Company recognized income tax expense of $977,500 for the three months ended March 31, 2015. The Company’s effective income tax rates for the three months ended March 31, 2016 and 2015 were 0.0% and 49.3%, respectively. Changes to the effective tax rates relate primarily to the recognition of a valuation allowance on 100% of net deferred tax assets for the three months ended March 31, 2016. The Company applies a “more likely than not” threshold to the recognition and nonrecognition of tax positions. A change in judgment related to prior years’ tax positions is recognized in the quarter of such change. The Company had no reserve for uncertain tax positions as of March 31, 2016 or December 31, 2015. The Company recognizes interest and/or penalties related to income tax matters in income tax expense and in income taxes payable. The table below presents a reconciliation of statutory income tax rates to our effective rates: Three Months Ended March 31, 2016 2015 Expected federal income tax at statutory rate 35.0% 34.0% State income taxes, net of federal deduction 2.1% 4.7% Permanent differences -0.1% 10.6% Change in valuation allowance -37.0% 0.0% 0.0% 49.3%

9. Business Combinations

9. Business Combinations	3 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
Business Combinations	Completion of Merger On November 2, 2015, the Company completed its merger (the “Merger”) with Medytox Solutions, Inc. (“Medytox”). In connection with the Merger, (i) each share of common stock of Medytox was converted into the right to receive about 0.4096 shares of common stock of CollabRx, (ii) each share of Series B Preferred Stock of Medytox was converted into the right to receive one share of a newly-authorized Series B Convertible Preferred Stock of CollabRx, and (iii) each share of Series E Convertible Preferred Stock of Medytox was converted into the right to receive one share of a newly-authorized Series E Convertible Preferred Stock of CollabRx. Holders of CollabRx equity prior to the closing of the Merger (including all outstanding CollabRx common stock and all restricted stock units, options and warrants exercisable for shares of CollabRx common stock) held 10% of CollabRx’s common stock immediately following the closing of the Merger, and holders of Medytox equity prior to the closing of the Merger (including all outstanding Medytox common stock and all outstanding options exercisable for shares of Medytox common stock, but less certain options that were cancelled upon the closing pursuant to agreements between Medytox and such optionees) held 90% of CollabRx’s common stock immediately following the closing of the Merger, in each case on a fully diluted basis, provided, however, outstanding shares of the newly designated Series B Convertible Preferred Stock and Series E Convertible Preferred Stock, certain outstanding convertible promissory notes exercisable for CollabRx common stock after the closing and certain option grants expected to be made at or immediately following the closing of the Merger are excluded from such ownership percentages. Also in connection with the Merger: (i) each of James Karis, Jeffrey M. Kraus and Carl Muscari resigned from CollabRx’s Board of Directors; (ii) each of Seamus Lagan, Christopher Diamantis, Benjamin Frank, Michael L. Goldberg and Robert Lee was appointed to serve on CollabRx’s Board of Directors; and (iii) Thomas R. Mika was appointed Chairman of the Board, Seamus Lagan was appointed Chief Executive Officer and President, Jason Adams was appointed Chief Financial Officer, and Sebastian Sainsbury was appointed Secretary. Prior to the closing of the Merger, the Company amended its certificate of incorporation to effect a 1-for-10 reverse split and to change its name to Rennova Health, Inc. On November 3, 2015, the common stock of Rennova commenced trading on the Nasdaq Capital Market under the symbol RNVA. Immediately after the consummation of the Merger, Rennova had 13,750,010 shares of common stock, 5,000 shares of Series B Convertible Preferred Stock and 45,000 shares of Series E Convertible Preferred Stock issued and outstanding. The transaction was accounted for as a reverse acquisition. As such, the prior period equity amounts have been retroactively restated to reflect the equity instruments of the legal acquirer. The consideration given for CollabRx totals $12,289,297, consisting of the fair value of common stock and warrants exchanged in the merger transaction. The Company acquired the remaining 49.5% of Biohealth in the three months ended March 31, 2015. The Company accounted for the assets, liabilities and ownership interests in accordance with the provisions of FASB ASC 805 “Business Combinations”. As such, the recorded assets and liabilities acquired have been recorded at fair value and any difference in the net asset values and the consideration given was recorded as goodwill.

10. Commitments and Contingenci

10. Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Legal Matters During the course of business, litigation commonly occurs. From time to time, the Company may be a party to litigation matters involving claims against the Company. The Company operates in a highly regulated industry which may inherently lend itself to legal matters. Management is aware that litigation has associated costs and that results of adverse litigation verdicts could have a material effect on the Company's financial position or results of operations. Management, in consultation with legal counsel, has addressed known assertions and predicted unasserted claims below. Epinex Diagnostics Laboratories, Inc. (“Epinex”) has been sued in a California state court by two former employees who allege that they were wrongfully terminated, as well as a variety of unpaid wage claims. The Company participated in formal mediation on February 25, 2016 in California. In February 2016, the Company received notice that the Internal Revenue Service had placed a lien against Medytox Solutions, Inc. and its subsidiaries relating to unpaid 2014 taxes due, plus penalties and interest, totaling $4,964,020. The Company paid $100,000 toward its 2014 tax liability in March 2016. The Company filed its 2015 Federal tax return on March 15, 2016. The 2015 return and the accompanying election to carryback the reported net operating losses, which was filed in April 2016, should permit the Company to have the lien lifted when reviewed and processed by the IRS.

11. Segment Reporting

11. Segment Reporting	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Segment Reporting	Selected financial information for the Company’s operating segments is as follows: Three Months Ended March 31, 2016 2015 Net revenues - External Clinical Laboratory Operations $ 1,465,137 $ 13,499,803 Supportive Software Solutions 230,026 148,979 Decision Support and Informatics Operations 183,650 – Corporate – – Eliminations – – $ 1,878,813 $ 13,648,782 Net revenues - Inter Segment Clinical Laboratory Operations $ – $ – Supportive Software Solutions 296,348 384,108 Decision Support and Informatics Operations – – Corporate – – Eliminations – – $ 296,348 $ 384,108 Income (loss) from operations Clinical Laboratory Operations $ (2,650,540 ) $ 5,065,421 Supportive Software Solutions (1,313,313 ) (1,357,989 ) Decision Support and Informatics Operations (881,566 ) – Corporate (1,952,437 ) (1,521,117 ) Eliminations 33,660 28,246 $ (6,764,196 ) $ 2,214,561 Depreciation and amortization Clinical Laboratory Operations $ 581,101 $ 447,325 Supportive Software Solutions 164,428 160,356 Decision Support and Informatics Operations 14,527 – Corporate 875 1,358 Eliminations (33,661 ) (28,246 ) $ 727,270 $ 580,793 Capital expenditures Clinical Laboratory Operations $ 16,885 $ 187,885 Supportive Software Solutions 2,117 25,257 Decision Support and Informatics Operations – – Corporate – – Eliminations – – $ 19,002 $ 213,142 March 31, December 31, 2016 2015 Total assets Clinical Laboratory Operations $ 13,357,738 $ 15,152,583 Supportive Software Solutions 2,677,943 2,896,473 Decision Support and Informatics Operations 3,714,571 4,307,053 Corporate 9,046,263 12,711,284 Eliminations (6,327,245 ) (7,095,520 ) $ 22,469,270 $ 27,971,873

12. Subsequent Events

12. Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	On April 26, 2016, the Company was notified by Nasdaq that the stockholders’ equity balance reported on its Form 10-K for the year ended December 31, 2015 fell below the $2,500,000 minimum requirement for continued listing under the Nasdaq Capital Market’s Listing Rule 5550(b)(1) (the “Equity Rule”). As of December 31, 2015, the Company’s stockholder’s equity balance was $(1,193,799). In accordance with the Equity Rule, the Company has until June 10, 2016 to prepare and submit a plan to Nasdaq outlining how it intends to regain compliance. If the plan is accepted, the Company can be granted up to 180 calendar days from April 26, 2016 to evidence compliance. There can be no guarantee that the Company will be able to regain compliance with the continued listing requirement of the Equity Rule or that its plan will be accepted by Nasdaq. In April 2016, the Company repaid $2,250,000 of the $3,000,000 then outstanding under the D&D note from proceeds of the prepaid forward purchase contract discussed above. This note was convertible into the Company’s Common Stock at a 25% discount to the trailing ten day average closing price at any time prior to the repayment. As such, the Company elected to repay a portion of the note prior to its maturity date. The Company has evaluated subsequent events through the date the financial statements were issued and filed with SEC. The Company has determined that there are no other events that warrant disclosure or recognition in the financial statements.

2. Accounts Receivable (Tables)

2. Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2016
Receivables [Abstract]
Schedule of accounts receivable	March 31, December 31, 2016 2015 Accounts receivable - clinical laboratory operations $ 96,227,506 $ 105,332,339 Accounts receivable - supportive software solutions 329,395 569,351 Total accounts receivable 96,556,901 105,901,690 Less: Allowance for discounts (89,328,698 ) (97,577,130 ) Allowance for bad debts (176,361 ) (175,076 ) Accounts receivable, net $ 7,051,842 $ 8,149,484

3. Long-Lived Assets (Tables)

3. Long-Lived Assets (Tables)	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	March 31, December 31, 2016 2015 Medical equipment $ 922,551 $ 991,903 Equipment 577,316 547,555 Equipment under capital leases 5,663,333 5,663,332 Furniture 561,688 560,400 Leasehold improvements 1,776,957 1,760,125 Vehicles 196,534 196,534 Computer equipment 753,225 661,234 Software 1,837,174 1,878,848 12,288,778 12,259,931 Less accumulated depreciation (5,838,906 ) (5,111,636 ) Property and equipment, net $ 6,449,872 $ 7,148,295

4. Notes Payable (Tables)

4. Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of notes payable	March 31, 2016 Face Value Unamortized Fair Value of Net Value of Note Discount Derivatives of Note Loan payable under prepaid forward purchase contract in the amount of $5,000,000, at 20% interest, with no payments of interest or principal through March 30, 2017. All outstanding amounts are due March 30, 2017. $ 5,000,000 $ – $ – $ 5,000,000 Loan payable to TCA Global Master Fund, LP in the amount of $3,000,000, at 16% interest, with interest only payments monthly through September 11, 2016. Principal and interest payments are due monthly from October 11, 2016 through September 11, 2017. 3,000,000 (305,188 ) 130,849 2,825,661 Loan payable to CommerceNet in the amount of $250,000 at 1.06% interest, increasing to 6% after two years. Principal and interest payments are made annually from July 12, 2015 through July 12, 2017. 170,806 – – 170,806 Loan payable to Jay Tenebaum in the amount of $250,000 at 1.06% interest, increasing to 6% after two years. Principal and interest payments are made annually from July 12, 2015 through July 12, 2017. 170,806 – – 170,806 $ 8,341,612 $ (305,188 ) $ 130,849 8,167,273 Less current portion (5,269,031 ) Notes payable, net of current portion $ 2,898,242 December 31, 2015 Face Value Unamortized Fair Value of Net Value of Note Discount Derivatives of Note Loan payable to former shareholder of Epinex Diagnostics Laboratories, Inc. in the amount of $400,000, at 0% interest, with principal payments of $100,000 due in periodic installments from November 26, 2014 through February 26, 2016. Amount recorded is net of imputed discount of $1,775 at December 31, 2015. $ 100,000 $ (1,775 ) $ – $ 98,225 Loan payable to TCA Global Master Fund, LP in the amount of $3,000,000, at 16% interest, with interest only payments monthly through September 11, 2016. Principal and interest payments are due monthly from October 11, 2016 through September 11, 2017. 3,000,000 (453,025 ) 186,117 2,733,092 Loan payable to CommerceNet in the amount of $250,000 at 1.06% interest, increasing to 6% after two years. Principal and interest payments are made annually from July 12, 2015 through July 12, 2017. 170,806 – – 170,806 Loan payable to Jay Tenebaum in the amount of $250,000 at 1.06% interest, increasing to 6% after two years. Principal and interest payments are made annually from July 12, 2015 through July 12, 2017. 170,806 – – 170,806 $ 3,441,612 $ (454,800 ) $ 186,117 3,172,929 Less current portion (269,031 ) Notes payable, net of current portion $ 2,903,898
Schedule of notes payable - related parties	March 31, 2016 Face Value Unamortized Fair Value of Net Value of Note Discount Derivatives of Note Convertible debenture dated December 31, 2014 in the amount of $3,000,000 which bears interest at 10% and is due December 31, 2016. The note provides the lender, D&D Funding II, LLC, the option to convert the note into the Company's common stock at a 25% discount to the average trading price (as defined in the note agreement) for the ten consecutive trading days prior to the conversion date. $ 3,000,000 $ (1,588,495 ) $ 2,263,237 $ 3,674,742 Loan payable to Alcimede, LLC in the amount of $3,000,000, at 6% interest, with one payment of $3,000,000, plus interest, due on February 2, 2017. (On June 29, 2015, Alcimede exercised options to purchase 1,000,000 shares for $2,500,000, which reduced the loan.) $ 500,000 – – $ 500,000 Current portion of notes payable, related party $ 3,500,000 $ (1,588,495 ) $ 2,263,237 $ 4,174,742 December 31, 2015 Face Value Unamortized Fair Value of Net Value of Note Discount Derivatives of Note Convertible debenture dated December 31, 2014 in the amount of $3,000,000 which bears interest at 10% and is due December 31, 2016. The note provides the lender, D&D Funding II, LLC, the option to convert the note into the Company's common stock at a 25% discount to the average trading price (as defined in the note agreement) for the ten consecutive trading days prior to the conversion date. $ 3,000,000 $ (2,236,112 ) $ 2,270,000 $ 3,033,888 Loan payable to Alcimede, LLC in the amount of $3,000,000, at 6% interest, with one payment of $3,000,000, plus interest, due on February 2, 2016. (On June 29, 2015, Alcimede exercised options to purchase 1,000,000 shares for $2,500,000, which reduced the loan.) $ 500,000 – – $ 500,000 Loan payable to Christopher Diamantis in the amount of $1,600,000. One payment of $1,600,000 due January 7, 2016 plus $100,000 of interest. $ 1,600,000 – – $ 1,600,000 Current portion of notes payable, related party $ 5,100,000 $ (2,236,112 ) $ 2,270,000 $ 5,133,888

6. Capital Lease Obligations (T

6. Capital Lease Obligations (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of capital leases	March 31, December 31, 2016 2015 Medical equipment $ 5,663,333 $ 5,663,332 Less accumulated depreciation (2,443,384 ) (2,093,920 ) Net $ 3,219,949 $ 3,569,412
Aggregate future minimum rentals under capital leases	December 31, 2016 $ 1,217,765 2017 1,432,542 2018 845,330 2019 217,412 2020 32,611 Total 3,745,660 Less interest 350,962 Present value of minimum lease payments 3,394,698 Less current portion of capital lease obligations 1,323,708 Capital lease obligations, net of current portion $ 2,070,990

7. Stockholders' Equity (Tables

7. Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Basic and Diluted Income Per Share	Three Months Ended March 31, 2016 2015 Basic: Numerator - net income (loss) available to common stockholders $ (4,244,011 ) 483,959 Denominator - weighted-average shares outstanding 14,816,586 11,937,530 Net income (loss) per share - Basic $ (0.29 ) $ 0.04 Diluted: Numerator: Net income (loss) available to common stockholders $ (4,244,011 ) $ 483,959 Interest expense on convertible debt, net of taxes – 46,912 (4,244,011 ) 530,871 Denominator: Weighted-average shares outstanding 14,816,586 11,937,530 Weighted-average equivalent shares options and warrants – 354,901 Weighted-average equivalent shares from convertible debt – 409,638 Weighted-average equivalent shares from Series C convertible preferred stock – – Weighted-average equivalent shares from Series D convertible preferred stock – 73,643 Weighted-average equivalent shares from Series E convertible preferred stock – 33,623 14,816,586 12,809,335 Net income (loss) per share - Diluted $ (0.29 ) $ 0.04
Antidilutive Securities	March 31, March 31, 2016 2015 Stock options outstanding 1,822,675 9,923,474 Warrants outstanding 6,898,560 – Convertible debt 8,791,343 – Convertible preferred stock 11,422,977 – 28,935,555 9,923,474

8. Income Taxes (Tables)

8. Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Reconciliation of the statutory federal income tax rate	Three Months Ended March 31, 2016 2015 Expected federal income tax at statutory rate 35.0% 34.0% State income taxes, net of federal deduction 2.1% 4.7% Permanent differences -0.1% 10.6% Change in valuation allowance -37.0% 0.0% 0.0% 49.3%

11. Segment Reporting (Tables)

11. Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Segment information	Three Months Ended March 31, 2016 2015 Net revenues - External Clinical Laboratory Operations $ 1,465,137 $ 13,499,803 Supportive Software Solutions 230,026 148,979 Decision Support and Informatics Operations 183,650 – Corporate – – Eliminations – – $ 1,878,813 $ 13,648,782 Net revenues - Inter Segment Clinical Laboratory Operations $ – $ – Supportive Software Solutions 296,348 384,108 Decision Support and Informatics Operations – – Corporate – – Eliminations – – $ 296,348 $ 384,108 Income (loss) from operations Clinical Laboratory Operations $ (2,650,540 ) $ 5,065,421 Supportive Software Solutions (1,313,313 ) (1,357,989 ) Decision Support and Informatics Operations (881,566 ) – Corporate (1,952,437 ) (1,521,117 ) Eliminations 33,660 28,246 $ (6,764,196 ) $ 2,214,561 Depreciation and amortization Clinical Laboratory Operations $ 581,101 $ 447,325 Supportive Software Solutions 164,428 160,356 Decision Support and Informatics Operations 14,527 – Corporate 875 1,358 Eliminations (33,661 ) (28,246 ) $ 727,270 $ 580,793 Capital expenditures Clinical Laboratory Operations $ 16,885 $ 187,885 Supportive Software Solutions 2,117 25,257 Decision Support and Informatics Operations – – Corporate – – Eliminations – – $ 19,002 $ 213,142 March 31, December 31, 2016 2015 Total assets Clinical Laboratory Operations $ 13,357,738 $ 15,152,583 Supportive Software Solutions 2,677,943 2,896,473 Decision Support and Informatics Operations 3,714,571 4,307,053 Corporate 9,046,263 12,711,284 Eliminations (6,327,245 ) (7,095,520 ) $ 22,469,270 $ 27,971,873

1. Organization and Presentat25

1. Organization and Presentation (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Proceeds from pledged receivables	$ 5,000,000
Income tax receivable	$ 2,516,028	$ 2,415,013

2. Accounts Receivable (Details

2. Accounts Receivable (Details - Accounts receivable) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Accounts receivable, gross	$ 96,556,901	$ 105,901,690
Less: Allowance for discounts	(89,328,698)	(97,577,130)
Less: Allowance for bad debts	(176,361)	(175,076)
Accounts receivable, net	7,051,842	8,149,484
Clinical Laboratory Operations [Member]
Accounts receivable, gross	96,227,506	105,332,339
Supportive Software Solutions [Member]
Accounts receivable, gross	$ 329,395	$ 569,351

3. Long-Lived Assets (Details -

3. Long-Lived Assets (Details - Equipment) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Property and equipment, gross	$ 12,288,778	$ 12,359,931
Accumulated depreciation	(5,838,906)	(5,111,636)
Property and equipment, net	6,449,872	7,148,295
Medical equipment [Member]
Property and equipment, gross	922,551	991,903
Equipment [Member]
Property and equipment, gross	577,316	547,555
Assets Held Under Capital Leases [Member]
Property and equipment, gross	5,663,333	5,663,332
Furniture [Member]
Property and equipment, gross	561,688	560,400
Leasehold Improvements [Member]
Property and equipment, gross	1,776,957	1,760,125
Vehicles [Member]
Property and equipment, gross	196,534	196,534
Computer Equipment [Member]
Property and equipment, gross	753,225	661,234
Software [Member]
Property and equipment, gross	$ 1,837,174	$ 1,878,848

3. Long-Lived Assets (Details N

3. Long-Lived Assets (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Property, Plant and Equipment [Abstract]
Depreciation	$ 727,270	$ 580,793

4. Notes Payable (Details-Notes

4. Notes Payable (Details-Notes Payable) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Less: current portion	$ (5,269,031)	$ (269,031)
Notes payable, net of current portion	2,898,242	2,903,898
Notes Payable - Third Parties [Member]
Face value of note	8,341,612	3,441,612
Unamortized discount	(305,188)	(454,800)
Fair value of derivatives	130,849	186,117
Notes payable, net	8,167,273	3,172,929
Note payable 1 [Member]
Face value of note		100,000
Unamortized discount		(1,775)
Fair value of derivatives		0
Notes payable, net		98,225
Note payable 2 [Member]
Face value of note	3,000,000	3,000,000
Unamortized discount	(305,188)	(453,025)
Fair value of derivatives	130,849	186,117
Notes payable, net	2,825,661	2,733,092
Note payable 3 [Member]
Face value of note	170,806	170,806
Unamortized discount	0	0
Fair value of derivatives	0	0
Notes payable, net	170,806	170,806
Note payable 4 [Member]
Face value of note	170,806
Unamortized discount	0
Fair value of derivatives	0
Notes payable, net	170,806
Note payable 5 [Member]
Face value of note	5,000,000	170,806
Unamortized discount	0	0
Fair value of derivatives	0	0
Notes payable, net	$ 5,000,000	$ 170,806

4. Notes Payable (Details-Not30

4. Notes Payable (Details-Notes Payable Related Party) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Notes payable related parties	$ 4,174,742	$ 5,133,888
Notes payable - related party [Member]
Face value of note	3,500,000	5,100,000
Unamortized discount	(1,588,495)	(2,236,112)
Fair value of derivatives	2,263,237	2,270,000
Notes payable related parties	4,174,742	5,133,888
Notes payable - related party [Member] | Notes payable - related party 1 [Member]
Face value of note	3,000,000	3,000,000
Unamortized discount	(1,588,495)	(2,236,112)
Fair value of derivatives	2,263,237	2,270,000
Notes payable related parties	3,674,742	3,033,888
Notes payable - related party [Member] | Notes payable - related party 2 [Member]
Face value of note	500,000	500,000
Notes payable related parties	$ 500,000	500,000
Notes payable - related party [Member] | Notes payable - related party 3 [Member]
Face value of note		1,600,000
Notes payable related parties		$ 1,600,000

4. Notes Payable (Details Narra

4. Notes Payable (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Note payable 5 [Member]
Debt original face amount	$ 5,000,000
Interest rate	20.00%
Maturity date	Mar. 30, 2017
Note payable 2 [Member]
Debt original face amount	$ 3,000,000
Interest rate	16.00%
Maturity date	Sep. 11, 2017
Note payable 3 [Member]
Debt original face amount	$ 250,000
Interest rate	1.06%
Maturity date	Jul. 12, 2017
Note payable 4 [Member]
Debt original face amount	$ 250,000
Interest rate	106.00%
Maturity date	Jul. 12, 2017
Note payable 1 [Member]
Debt original face amount		$ 400,000
Interest rate		0.00%
Maturity date		Dec. 31, 2015
Imputed discount		$ 1,775
Notes payable - related party 1 [Member] | Notes payable - related party [Member]
Debt original face amount	$ 3,000,000
Interest rate	10.00%
Maturity date	Dec. 31, 2016
Notes payable - related party 2 [Member] | Notes payable - related party [Member]
Debt original face amount	$ 3,000,000
Interest rate	6.00%
Maturity date	Feb. 2, 2016
Notes payable - related party 3 [Member] | Notes payable - related party [Member]
Debt original face amount		$ 1,600,000
Maturity date	Jan. 7, 2016

5. Related Party Transactions (

5. Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended		4 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Apr. 30, 2016
Proceeds from related party	$ 3,000,000	$ 0
D & D Funding [Member]
Repayment of note payable	3,000,000		$ 2,250,000
Payment of 2015 interest expense	300,000
Proceeds from related party	3,000,000
Alcimede [Member]
Consulting fees paid	$ 96,750	$ 85,905

6. Capital Lease Obligations (D

6. Capital Lease Obligations (Details-Capital leased assets) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Capital Lease Obligations [Abstract]
Medical equipment	$ 5,663,333	$ 5,663,332
Less accumulated depreciation	(2,443,384)	(2,093,920)
Capital lease obligations	$ 3,219,949	$ 3,569,412

6. Capital Lease Obligations 34

6. Capital Lease Obligations (Details-Future payments) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
December 31
2,016	$ 1,217,765
2,017	1,432,542
2,018	845,330
2,019	217,412
2,020	32,611
Total	3,745,660
Less interest:	350,962
Present value of minimum lease payments	3,394,698
Less current portion of capital lease obligations	1,323,708	$ 1,323,708
Capital lease obligations, net of current portion	$ 2,070,990	$ 2,394,171

6. Capital Lease Obligations 35

6. Capital Lease Obligations (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Capital Lease Obligations Details Narrative
Depreciation expense on capital leases	$ 349,464	$ 215,045

7. Stockholders Equity Earnings

7. Stockholders Equity Earnings (Details-EPS) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Basic:
Net income (loss) available to common stockholders	$ (4,244,011)	$ 483,959
Weighted average number of shares outstanding	14,816,586	11,937,530
Net income (loss) per share - Basic	$ (.29)	$ .04
Diluted:
Net income (loss) available to common stockholders	$ (4,244,011)	$ 483,959
Interest expense on convertible debt, net of taxes	0	46,912
Diluted net income	$ (4,244,011)	$ 530,871
Weighted-average shares outstanding	14,816,586	11,937,530
Weighted-average equivalent shares options and warrants	0	354,901
Weighted-average equivalent shares from convertible debt	0	409,638
Diluted Shares Outstanding	14,816,586	12,809,335
Net income (loss) per share - Diluted	$ (0.29)	$ 0.04
Series C Preferred Stock [Member]
Diluted:
Weighted-average equivalent shares from convertible preferred stock	0	0
Series D Preferred Stock [Member]
Diluted:
Weighted-average equivalent shares from convertible preferred stock	0	73,643
Series E Preferred Stock [Member]
Diluted:
Weighted-average equivalent shares from convertible preferred stock	0	33,623

7. Stockholders' Equity (Detail

7. Stockholders' Equity (Details - Antidilutive shares) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Antidilutive securities	28,935,555	9,923,474
Stock Options [Member]
Antidilutive securities	1,822,675	9,923,474
Warrant [Member]
Antidilutive securities	6,898,560	0
Convertible Debt [Member]
Antidilutive securities	8,791,343	0
Convertible Preferred Stock [Member]
Antidilutive securities	11,422,977	0

7. Stockholders' Equity (Deta38

7. Stockholders' Equity (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Dividends earned	$ 0	$ 523,050
Accrued dividends	$ 1,684,148		$ 2,099,148
Stock options granted	0	0
Stock options forfeited	0	0
Consultant [Member]
Stock issued for services, shares issued	13,300
Stock issued for services, value	$ 9,310
Series C Preferred Stock [Member]
Preferred stock converted into common, preferred shares converted	182
Preferred stock converted into common, common shares issued	117,420

8. Income Taxes (Details-Effect

8. Income Taxes (Details-Effective income tax rate)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Expected federal income tax at statutory rate	35.00%	34.00%
State income taxes, net of federal deduction	2.10%	4.70%
Permanent differences	(0.10%)	10.60%
Change in valuation allowance	37.00%	0.00%
Income tax provision (benefit)	0.00%	49.30%

8. Income Taxes (Details Narrat

8. Income Taxes (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Income tax expense	$ 0	$ 977,500

11. Segment Reporting (Details-

11. Segment Reporting (Details-Operations) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net revenues - External	$ 1,878,813	$ 13,648,782
Net revenues - Inter Segment	296,348	384,108
Income (loss) from operations	(6,764,196)	2,214,561
Depreciation and amortization	727,270	580,793
Capital expenditures	19,002	213,142
Eliminations [Member]
Net revenues - External	0	0
Net revenues - Inter Segment	0	0
Income (loss) from operations	33,660	28,246
Depreciation and amortization	(33,661)	(28,246)
Capital expenditures	0	0
Clinical Laboratory Operations [Member]
Net revenues - External	1,465,137	13,499,803
Net revenues - Inter Segment	0	0
Income (loss) from operations	(2,650,540)	5,065,421
Depreciation and amortization	581,101	447,325
Capital expenditures	16,885	187,885
Supportive Software Solutions [Member]
Net revenues - External	230,026	148,979
Net revenues - Inter Segment	296,348	384,108
Income (loss) from operations	(1,313,313)	(1,357,989)
Depreciation and amortization	164,428	160,356
Capital expenditures	2,117	25,257
Decision Support and Informatics Operations [Member]
Net revenues - External	183,650	0
Net revenues - Inter Segment	0	0
Income (loss) from operations	(881,566)	0
Depreciation and amortization	14,527	0
Capital expenditures	0	0
Corporate [Member]
Net revenues - External	0	0
Net revenues - Inter Segment	0	0
Income (loss) from operations	(1,952,437)	(1,521,117)
Depreciation and amortization	875	1,358
Capital expenditures	$ 0	$ 0

11. Segment Reporting (Detail42

11. Segment Reporting (Details-Assets) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Total assets	$ 22,469,270	$ 27,971,873
Eliminations [Member]
Total assets	(7,095,520)	(6,327,245)
Clinical Laboratory Operations [Member]
Total assets	13,357,738	15,152,583
Supportive Software Solutions [Member]
Total assets	2,677,943	2,896,473
Decision Support and Informatics Operations [Member]
Total assets	3,714,571	4,307,053
Corporate [Member]
Total assets	$ 9,046,263	$ 12,711,284