Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 12, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | PACIFIC HEALTH CARE ORGANIZATION, INC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 12,800,000 | |
Amendment Flag | false | |
Entity Central Index Key | 0001138476 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-50009 | |
Entity Incorporation, State or Country Code | UT | |
Entity Tax Identification Number | 87-0285238 | |
Entity Address, Address Line One | 1201 Dove Street, Suite 300 | |
Entity Address, City or Town | Newport Beach | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92660 | |
City Area Code | 949 | |
Local Phone Number | 721-8272 | |
Title of 12(b) Security | None | |
No Trading Symbol Flag | true | |
Security Exchange Name | NONE | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash | $ 10,155,151 | $ 9,498,457 |
Accounts receivable, net of allowance of $8,433 and $19,404 | 786,112 | 1,063,090 |
Deferred rent assets | 607 | 0 |
Receivable – other | 3,000 | 4,000 |
Prepaid expenses | 74,212 | 82,499 |
Total current assets | 11,019,082 | 10,648,046 |
Property and Equipment, net | ||
Computer equipment | 520,072 | 507,873 |
Furniture and fixtures | 226,323 | 226,323 |
Office equipment | 9,556 | 9,556 |
Total property and equipment | 755,951 | 743,752 |
Less: accumulated depreciation and amortization | (656,669) | (620,705) |
Net property and equipment | 99,282 | 123,047 |
Operating lease right-of-use assets, net | 138,600 | 309,282 |
Other assets | 26,788 | 26,788 |
Total Assets | 11,283,752 | 11,107,163 |
Current Liabilities | ||
Accounts payable | 59,005 | 80,134 |
Accrued expenses | 255,509 | 275,152 |
Income tax payable | 9,783 | 61,828 |
Deferred rent expense | 0 | 2,725 |
Deferred tax liabilities | 19,413 | 19,413 |
Dividend payable | 37,000 | 37,000 |
Operating lease liabilities, current portion | 138,600 | 243,049 |
Paycheck protection program loans, current portion | 35,024 | 311,118 |
Unearned revenue | 37,315 | 31,544 |
Total current liabilities | 591,649 | 1,061,963 |
Long Term Liabilities | ||
Operating lease liabilities, long-term portion | 0 | 66,233 |
Paycheck protection program loans, long-term portion | 183,876 | 149,582 |
Total Liabilities | 775,525 | 1,277,778 |
Stockholders’ Equity | ||
Preferred stock; 5,000,000 shares authorized at $0.001 par value of which 40,000 shares designated as Series A preferred and 16,000 shares issued and outstanding | 16 | 16 |
Common stock, $0.001 par value, 2,000,000,000 shares authorized, 12,800,000 shares issued and outstanding | 12,800 | 12,800 |
Additional paid-in capital | 416,057 | 416,057 |
Retained earnings | 10,079,354 | 9,400,512 |
Total Stockholders’ Equity | 10,508,227 | 9,829,385 |
Total Liabilities and Stockholders’ Equity | $ 11,283,752 | $ 11,107,163 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts receivable, allowance (in Dollars) | $ 8,433 | $ 19,404 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 16,000 | 16,000 |
Preferred stock, shares outstanding | 16,000 | 16,000 |
Common stock par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares issued | 12,800,000 | 12,800,000 |
Common stock, outstanding | 12,800,000 | 12,800,000 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares authorized | 40,000 | 40,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | ||||
Revenues | $ 1,310,618 | $ 1,415,754 | $ 3,978,431 | $ 4,435,169 |
Expenses | ||||
Depreciation | 12,657 | 14,122 | 35,964 | 46,716 |
Bad debt provision | 0 | 11,000 | 494 | 11,101 |
Consulting fees | 58,275 | 58,621 | 173,796 | 195,978 |
Salaries and wages | 679,530 | 694,352 | 2,073,133 | 2,238,079 |
Professional fees | 76,014 | 68,979 | 221,970 | 223,747 |
Insurance | 86,527 | 91,951 | 242,334 | 274,974 |
Outsource service fees | 109,926 | 115,803 | 304,085 | 359,596 |
Data maintenance | 11,917 | 6,603 | 75,293 | 59,415 |
General and administrative | 168,939 | 163,863 | 492,264 | 515,738 |
Total expenses | 1,203,785 | 1,225,294 | 3,619,333 | 3,925,344 |
Income from operations | 106,833 | 190,460 | 359,098 | 509,825 |
Other income (expense) | ||||
Paycheck protection program loan forgiveness income | 0 | 0 | 464,386 | 0 |
Paycheck protection program loan interest expense | 0 | 0 | (3,686) | 0 |
Total other income (expense) | 0 | 460,700 | 0 | |
Income before taxes | 106,833 | 190,460 | 819,798 | 509,825 |
Income tax provision | 29,987 | 53,463 | 140,956 | 143,111 |
Net income | $ 76,846 | $ 136,997 | $ 678,842 | $ 366,714 |
Earnings per share amount (in Dollars per share) | $ 0.01 | $ 0.01 | $ 0.05 | $ 0.03 |
Basic common shares outstanding (in Shares) | 12,800,000 | 12,800,000 | 12,800,000 | 12,800,000 |
Fully diluted earnings per share: | ||||
Earnings per share amount (in Dollars per share) | $ 0.01 | $ 0.01 | $ 0.05 | $ 0.03 |
Fully diluted common shares outstanding (in Shares) | 12,816,000 | 12,816,000 | 12,816,000 | 12,816,000 |
HCO [Member] | ||||
Revenues | ||||
Revenues | $ 289,117 | $ 264,781 | $ 936,382 | $ 916,693 |
MPN [Member] | ||||
Revenues | ||||
Revenues | 137,834 | 124,836 | 396,497 | 363,902 |
Utilization review [Member] | ||||
Revenues | ||||
Revenues | 258,251 | 307,139 | 796,927 | 854,922 |
Medical bill review [Member] | ||||
Revenues | ||||
Revenues | 117,685 | 77,075 | 292,445 | 242,237 |
Medical case management [Member] | ||||
Revenues | ||||
Revenues | 439,073 | 590,784 | 1,381,929 | 1,855,314 |
Other Revenues [Member] | ||||
Revenues | ||||
Revenues | $ 68,658 | $ 51,139 | $ 174,251 | $ 202,101 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Net Income | $ 123,128 | $ 123,128 | |||
Balances at Dec. 31, 2019 | $ 16 | $ 12,800 | $ 416,057 | 8,850,942 | 9,279,815 |
Balances (in Shares) at Dec. 31, 2019 | 16,000 | 12,800,000 | |||
Balances at Mar. 31, 2020 | $ 16 | $ 12,800 | 416,057 | 8,974,070 | 9,402,943 |
Balances (in Shares) at Mar. 31, 2020 | 16,000 | 12,800,000 | |||
Net Income | 366,714 | ||||
Balances at Dec. 31, 2019 | $ 16 | $ 12,800 | 416,057 | 8,850,942 | 9,279,815 |
Balances (in Shares) at Dec. 31, 2019 | 16,000 | 12,800,000 | |||
Balances at Sep. 30, 2020 | $ 16 | $ 12,800 | 416,057 | 9,217,656 | 9,646,529 |
Balances (in Shares) at Sep. 30, 2020 | 16,000 | 12,800,000 | |||
Net Income | 106,589 | 106,589 | |||
Balances at Mar. 31, 2020 | $ 16 | $ 12,800 | 416,057 | 8,974,070 | 9,402,943 |
Balances (in Shares) at Mar. 31, 2020 | 16,000 | 12,800,000 | |||
Balances at Jun. 30, 2020 | $ 16 | $ 12,800 | 416,057 | 9,080,659 | 9,509,532 |
Balances (in Shares) at Jun. 30, 2020 | 16,000 | 12,800,000 | |||
Net Income | 136,997 | 136,997 | |||
Balances at Sep. 30, 2020 | $ 16 | $ 12,800 | 416,057 | 9,217,656 | 9,646,529 |
Balances (in Shares) at Sep. 30, 2020 | 16,000 | 12,800,000 | |||
Net Income | 507,285 | 507,285 | |||
Balances at Dec. 31, 2020 | $ 16 | $ 12,800 | 416,057 | 9,400,512 | 9,829,385 |
Balances (in Shares) at Dec. 31, 2020 | 16,000 | 12,800,000 | |||
Balances at Mar. 31, 2021 | $ 16 | $ 12,800 | 416,057 | 9,907,797 | 10,336,670 |
Balances (in Shares) at Mar. 31, 2021 | 16,000 | 12,800,000 | |||
Net Income | 678,842 | ||||
Balances at Dec. 31, 2020 | $ 16 | $ 12,800 | 416,057 | 9,400,512 | 9,829,385 |
Balances (in Shares) at Dec. 31, 2020 | 16,000 | 12,800,000 | |||
Balances at Sep. 30, 2021 | $ 16 | $ 12,800 | 416,057 | 10,079,354 | 10,508,227 |
Balances (in Shares) at Sep. 30, 2021 | 16,000 | 12,800,000 | |||
Net Income | 94,711 | 94,711 | |||
Balances at Mar. 31, 2021 | $ 16 | $ 12,800 | 416,057 | 9,907,797 | 10,336,670 |
Balances (in Shares) at Mar. 31, 2021 | 16,000 | 12,800,000 | |||
Balances at Jun. 30, 2021 | $ 16 | $ 12,800 | 416,057 | 10,002,508 | 10,431,381 |
Balances (in Shares) at Jun. 30, 2021 | 16,000 | 12,800,000 | |||
Net Income | 76,846 | 76,846 | |||
Balances at Sep. 30, 2021 | $ 16 | $ 12,800 | $ 416,057 | $ 10,079,354 | $ 10,508,227 |
Balances (in Shares) at Sep. 30, 2021 | 16,000 | 12,800,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 678,842 | $ 366,714 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 35,964 | 46,716 |
Bad debt provision | 494 | 11,101 |
Paycheck protection program loan forgiveness | (460,700) | 0 |
Changes in operating assets and liabilities: | ||
Decrease in accounts receivable | 276,484 | 79,375 |
Decrease in receivable – other | 1,000 | 4,454 |
Decrease in prepaid expenses | 8,287 | 51,865 |
Decrease in accounts payable | (21,129) | (4,515) |
Decrease in deferred rent expense | (2,725) | (20,039) |
(Decrease) increase in accrued expenses | (19,643) | 43,507 |
Decrease in income tax payable | (52,045) | 0 |
Increase in deferred rent assets | (607) | 0 |
Decrease in prepaid income tax | 0 | 135,111 |
Increase (decrease) in unearned revenue | 5,771 | (13,751) |
Net cash provided by operating activities | 449,993 | 700,538 |
Cash flows from investing activities: | ||
Purchase of furniture and office equipment | (12,199) | (52,803) |
Net cash used in investing activities | (12,199) | (52,803) |
Cash flows from financing activities: | ||
Proceeds from paycheck protection program loans | 218,900 | 460,700 |
Net cash provided by financing activities | 218,900 | 460,700 |
Increase in cash | 656,694 | 1,108,435 |
Cash at beginning of period | 9,498,457 | 8,104,164 |
Cash at end of period | 10,155,151 | 9,212,599 |
Interest | (3,686) | 0 |
Income taxes | $ 69,000 | $ 0 |
BASIS OF FINANCIAL STATEMENT PR
BASIS OF FINANCIAL STATEMENT PRESENTATION | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “Commission”) and in accordance with accounting principles generally accepted in the United States (“GAAP”). Certain information and footnote disclosures normally included in consolidated financial statements have been condensed or omitted in accordance with GAAP rules and regulations. The information furnished in these interim condensed consolidated financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. The preparation of condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect both the recorded values of assets and liabilities at the date of the condensed consolidated financial statements and the revenues recognized and expenses incurred during the reporting period. These estimates and assumptions affect the Company’s recognition of deferred expenses, bad debts, income taxes, the carrying value of its long-lived assets and its provision for certain contingencies. The reasonableness of these estimates and assumptions is evaluated continually based on a combination of historical and other information that comes to the Company’s attention that may vary its outlook for the future. While management believes the disclosures and information presented are adequate to make the information not misleading, the Company recommends these interim condensed consolidated financial statements be read in conjunction with its audited financial statements and notes thereto included in its annual report on Form 10-K for the year ended December 31, 2020. Operating results for the nine months ended September 30, 2021, are not necessarily indicative of the results to be expected for the year ending December 31, 2021. Principles of Consolidation Basis of Accounting Revenue Recognition Topic 606 creates a five-step model to recognize revenue which includes (i) identifying the contract with the customer, (ii) identifying the performance obligations in the contract, (iii) determining the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocating the transaction price to the respective performance obligations in the contract, and (v) recognizing revenue when (or as) the Company satisfies the performance obligation. The Company derives its revenue from the sale of managed care, bill review, utilization review and medical case management services. These services are billed individually as separate components to the Company’s customers. These fees include monthly administration fees, claim network fees, legal support fees, Medicare set-aside fees, lien service fees, Workers’ Compensation carve-outs, flat rate fees or hourly fees depending on the agreement with the customer. The Company enters arrangements for bundled managed care which includes various units of accounting such as network solutions and patient management, including managed care. Such elements are considered separate units of accounting due to each element having value to the customer on a stand-alone basis and are billed separately. The selling price for each unit of accounting is determined using the contract price. When the Company’s customers purchase several products the pricing of the products sold is generally the same as if the products were sold on an individual basis. Revenue is recognized as the work is performed in accordance with the Company’s customer contracts. Based upon the nature of the Company’s products, bundled managed care elements are generally delivered in the same accounting period. The Company recognizes revenue for patient management services ratably over the life of the customer contract. Based upon prior experience in managed care, the Company estimates the deferral amount from when the customer’s claim is received to when the customer contract expires. Advance payments from subscribers and billings made in advance are recorded on the balance sheet as unearned revenue. Accounts Receivables and Bad Debt Allowance The percentages of the amounts due from major customers to total accounts receivable as of September 30, 2021 and December 31, 2020, are as follows: 9/30/2021 12/31/2020 Customer A 25 % 21 % Customer B 10 % 12 % Significant Customers - During the period ended September 30, 2021 and 2020, the Company had two and three customers, respectively, that accounted for more than 10% of its total sales. The following table sets forth details regarding the percentages of total sales attributable to the Company’s significant customers in the past two years: 9/30/2021 9/30/2020 Customer A 25 % 21 % Customer B 11 % 12 % Customer C 8 % 10 % Leases |
OPERATING LEASES
OPERATING LEASES | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Text Block [Abstract] | |
Lessee, Operating Leases [Text Block] | NOTE 2 - OPERATING LEASES In July 2015, the Company entered a 79-month lease for approximately 9,439 square feet of office space, which lease commenced in September 2015. This office space serves as the Company’s principal executive offices, as well as the principal offices of its operating subsidiaries. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in such arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives. The components of lease expense and supplemental cash flow information related to leases for the periods are as follows: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Lease Cost Operating lease cost (included in general and administrative in the Company’s condensed consolidated statement of operations) $ 80,246 $ 204,651 Other Information Cash paid for amounts included in the measurement of lease liabilities for the three and nine months ended September 30, 2021 $ 80,246 $ 204,651 Weighted average remaining lease term – operating leases (in years) 0.58 years 0.58 years Average discount rate – operating leases 5.75 % 5.75 % The supplemental balance sheet information related to leases for the period is as follows: At September 30, 2021 At December 31, 2020 Operating leases Operating lease right-of-use assets, net $ 138,600 $ 309,282 Short-term operating lease liabilities $ 138,600 $ 243,049 Long-term operating lease liabilities - 66,233 Total operating lease liabilities $ 138,600 $ 309,282 Maturities of the Company’s lease liabilities are as follows: Year Ending Operating Leases 2021 (remaining 3 months) $ 70,509 2022 71,359 Total lease payments 141,868 Less: Imputed interest/present value discount (3,268 ) Present value of lease liabilities $ 138,600 Lease expenses were $80,246 and $72,687 during the three months ended September 30, 2021 and 2020, respectively, and $204,651 and $225,903 during the nine months ended September 30, 2021 and 2020, respectively. |
PAYCHECK PROTECTION PROGRAM LOA
PAYCHECK PROTECTION PROGRAM LOANS | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 3 PAYCHECK PROTECTION PROGRAM LOANS In April and May 2020, Pacific Health Care Organization, Inc. (“PHCO”), Medex Managed Care, Inc. (“MMC”) and Medex Medical Management, Inc. (“MMM”) received loans pursuant to the Coronavirus Aid, Relief and Economic Security (“CARES”) Act Paycheck Protection Program. PHCO received a loan in the amount of $133,400 (the “PHCO PPP Loan”). The PHCO PPP Loan interest rate was 1.0% per annum. MMM and MMC received loans of $267,700 and $59,600, respectively (collectively the “Medex Companies PPP Loans”). The Medex Companies PPP Loans interest rate was also 1.0% per annum. In February 2021, the principal and interest on the PHCO PPP Loan and the Medex Companies PPP Loans were forgiven in full. The total amount of the loan and interest forgiven for PHCO was $133,400 and $1,067, respectively. The total amount of the principal and interest forgiven for MMM was $267,700 and $2,142, respectively. The total amount of the principal and interest forgiven for MMC was $59,600 and $477, respectively. The funds were used for qualifying expenses as described in the CARES Act, namely payroll, rent, utilities and group health insurance benefits. Economic Aid Act On April 1, 2021, MMM received a loan pursuant to section 311 of the Economic Aid Act Paycheck Protection Program Second Draw Loans in the amount of $218,900 from First Citizens Bank (the “Second Draw PPP Loan”). The Second Draw PPP Loan bears interest at a rate of 1.0% per annum and is payable monthly commencing on February 28, 2022, if loan forgiveness is not requested by that date. The loan funds are eligible for full forgiveness if used for qualifying expenses, such as payroll, group health benefits, rent and utilities. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 4 - SUBSEQUENT EVENTS In accordance with ASC 855-10 Company management reviewed all material events through the date of issuance and except as disclosed below, there are no material subsequent events to report. On October 19, 2021, the Company completed short-form mergers with its wholly owned subsidiaries Medex Legal Support, Inc. (“MLS”), and Pacific Medical Holding Company (“PMHC”) and Industrial Resolutions Coalition (“IRC”). As a result of the short-form mergers the separate existence of MLS, PMHC and IRC terminated and the business, assets and liabilities of those entities have been transferred to PHCO and, as appropriate were transferred to the Company’s other subsidiaries. The Company continues to offer the services of IRC and MLS through its other subsidiaries. In addition to the services they currently offer, Medex Healthcare, Inc. (“Medex”) will now offer carve-out services and Medicare-set asides and Medex Managed Care, Inc. (“MMC”) will offer lien representation services. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation |
Basis of Accounting, Policy [Policy Text Block] | Basis of Accounting |
Revenue [Policy Text Block] | Revenue Recognition Topic 606 creates a five-step model to recognize revenue which includes (i) identifying the contract with the customer, (ii) identifying the performance obligations in the contract, (iii) determining the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocating the transaction price to the respective performance obligations in the contract, and (v) recognizing revenue when (or as) the Company satisfies the performance obligation. The Company derives its revenue from the sale of managed care, bill review, utilization review and medical case management services. These services are billed individually as separate components to the Company’s customers. These fees include monthly administration fees, claim network fees, legal support fees, Medicare set-aside fees, lien service fees, Workers’ Compensation carve-outs, flat rate fees or hourly fees depending on the agreement with the customer. The Company enters arrangements for bundled managed care which includes various units of accounting such as network solutions and patient management, including managed care. Such elements are considered separate units of accounting due to each element having value to the customer on a stand-alone basis and are billed separately. The selling price for each unit of accounting is determined using the contract price. When the Company’s customers purchase several products the pricing of the products sold is generally the same as if the products were sold on an individual basis. Revenue is recognized as the work is performed in accordance with the Company’s customer contracts. Based upon the nature of the Company’s products, bundled managed care elements are generally delivered in the same accounting period. The Company recognizes revenue for patient management services ratably over the life of the customer contract. Based upon prior experience in managed care, the Company estimates the deferral amount from when the customer’s claim is received to when the customer contract expires. Advance payments from subscribers and billings made in advance are recorded on the balance sheet as unearned revenue. |
Receivable [Policy Text Block] | Accounts Receivables and Bad Debt Allowance The percentages of the amounts due from major customers to total accounts receivable as of September 30, 2021 and December 31, 2020, are as follows: 9/30/2021 12/31/2020 Customer A 25 % 21 % Customer B 10 % 12 % Significant Customers - During the period ended September 30, 2021 and 2020, the Company had two and three customers, respectively, that accounted for more than 10% of its total sales. The following table sets forth details regarding the percentages of total sales attributable to the Company’s significant customers in the past two years: 9/30/2021 9/30/2020 Customer A 25 % 21 % Customer B 11 % 12 % Customer C 8 % 10 % |
Concentration Risk, Customer Risk, Policy [Policy Text Block] | Significant Customers - During the period ended September 30, 2021 and 2020, the Company had two and three customers, respectively, that accounted for more than 10% of its total sales. The following table sets forth details regarding the percentages of total sales attributable to the Company’s significant customers in the past two years: |
Lessee, Leases [Policy Text Block] | Leases |
BASIS OF FINANCIAL STATEMENT _2
BASIS OF FINANCIAL STATEMENT PRESENTATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Credit Concentration Risk [Member] | |
BASIS OF FINANCIAL STATEMENT PRESENTATION (Tables) [Line Items] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | The percentages of the amounts due from major customers to total accounts receivable as of September 30, 2021 and December 31, 2020, are as follows: 9/30/2021 12/31/2020 Customer A 25 % 21 % Customer B 10 % 12 % |
Customer Concentration Risk [Member] | |
BASIS OF FINANCIAL STATEMENT PRESENTATION (Tables) [Line Items] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | During the period ended September 30, 2021 and 2020, the Company had two and three customers, respectively, that accounted for more than 10% of its total sales. The following table sets forth details regarding the percentages of total sales attributable to the Company’s significant customers in the past two years: 9/30/2021 9/30/2020 Customer A 25 % 21 % Customer B 11 % 12 % Customer C 8 % 10 % |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Text Block [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense and supplemental cash flow information related to leases for the periods are as follows: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Lease Cost Operating lease cost (included in general and administrative in the Company’s condensed consolidated statement of operations) $ 80,246 $ 204,651 Other Information Cash paid for amounts included in the measurement of lease liabilities for the three and nine months ended September 30, 2021 $ 80,246 $ 204,651 Weighted average remaining lease term – operating leases (in years) 0.58 years 0.58 years Average discount rate – operating leases 5.75 % 5.75 % At September 30, 2021 At December 31, 2020 Operating leases Operating lease right-of-use assets, net $ 138,600 $ 309,282 Short-term operating lease liabilities $ 138,600 $ 243,049 Long-term operating lease liabilities - 66,233 Total operating lease liabilities $ 138,600 $ 309,282 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of the Company’s lease liabilities are as follows: Year Ending Operating Leases 2021 (remaining 3 months) $ 70,509 2022 71,359 Total lease payments 141,868 Less: Imputed interest/present value discount (3,268 ) Present value of lease liabilities $ 138,600 |
BASIS OF FINANCIAL STATEMENT _3
BASIS OF FINANCIAL STATEMENT PRESENTATION (Details) | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020 | Dec. 31, 2020USD ($) | |
BASIS OF FINANCIAL STATEMENT PRESENTATION (Details) [Line Items] | |||
Accounts Receivable, Allowance for Credit Loss | $ 8,433 | $ 19,404 | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | |||
BASIS OF FINANCIAL STATEMENT PRESENTATION (Details) [Line Items] | |||
Number of Customers | 2 | 3 |
BASIS OF FINANCIAL STATEMENT _4
BASIS OF FINANCIAL STATEMENT PRESENTATION (Details) - Schedules of Credit Concentration Risk - Credit Concentration Risk [Member] - Accounts Receivable [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Customer A [Member] | ||
Concentration Risk [Line Items] | ||
Credit Concentration Risk, Percentage | 25.00% | 21.00% |
Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Credit Concentration Risk, Percentage | 10.00% | 12.00% |
BASIS OF FINANCIAL STATEMENT _5
BASIS OF FINANCIAL STATEMENT PRESENTATION (Details) - Schedules of Customer Concentration Risk - Customer Concentration Risk [Member] - Revenue Benchmark [Member] | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Customer A [Member] | ||
Concentration Risk [Line Items] | ||
Customer Concentration Risk | 25.00% | 21.00% |
Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Customer Concentration Risk | 11.00% | 12.00% |
Customer C [Member] | ||
Concentration Risk [Line Items] | ||
Customer Concentration Risk | 8.00% | 10.00% |
OPERATING LEASES (Details)
OPERATING LEASES (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jul. 31, 2015ft² | |
Disclosure Text Block [Abstract] | |||||
Lessee, Operating Lease, Term of Contract | 79 months | ||||
Area of Real Estate Property (in Square Feet) | ft² | 9,439 | ||||
Operating Lease, Expense | $ | $ 80,246 | $ 72,687 | $ 204,651 | $ 225,903 |
OPERATING LEASES (Details) - Le
OPERATING LEASES (Details) - Lease, Cost - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Lease, Cost [Abstract] | |||
Operating lease cost (included in general and administrative in the Company’s condensed consolidated statement of operations) | $ 80,246 | $ 204,651 | |
Cash paid for amounts included in the measurement of lease liabilities for the three and nine months ended September 30, 2021 | $ 80,246 | $ 204,651 | |
Weighted average remaining lease term – operating leases (in years) | 6 months 29 days | 6 months 29 days | |
Average discount rate – operating leases | 5.75% | 5.75% | |
Long-term right-of-use assets | $ 138,600 | $ 138,600 | $ 309,282 |
Short-term operating lease liabilities | 138,600 | 138,600 | 243,049 |
Long-term operating lease liabilities | 0 | 0 | 66,233 |
Total operating lease liabilities | $ 138,600 | $ 138,600 | $ 309,282 |
OPERATING LEASES (Details) - _2
OPERATING LEASES (Details) - Lessee, Operating Lease, Liability, Maturity - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Lessee, Operating Lease, Liability, Maturity [Abstract] | ||
2021 (remaining 3 months) | $ 70,509 | |
2022 | 71,359 | |
Total lease payments | 141,868 | |
Less: Imputed interest/present value discount | (3,268) | |
Present value of lease liabilities | $ 138,600 | $ 309,282 |
PAYCHECK PROTECTION PROGRAM L_2
PAYCHECK PROTECTION PROGRAM LOANS (Details) - USD ($) | Feb. 28, 2022 | May 11, 2020 | Apr. 30, 2020 | Apr. 21, 2020 | Feb. 28, 2021 | Apr. 01, 2021 |
PAYCHECK PROTECTION PROGRAM LOANS (Details) [Line Items] | ||||||
Proceeds from Notes Payable | $ 59,600 | $ 267,700 | $ 133,400 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | 1.00% | ||||
Pacific Health Care Organization, Inc. (“PHCO”) [Member] | ||||||
PAYCHECK PROTECTION PROGRAM LOANS (Details) [Line Items] | ||||||
Debt Instrument, Decrease, Forgiveness | $ 133,400 | |||||
Medex Managed Care, Inc. (“MMC”) [Member] | ||||||
PAYCHECK PROTECTION PROGRAM LOANS (Details) [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |||||
Debt Instrument, Decrease, Forgiveness | 267,700 | |||||
Debt Instrument, Face Amount | $ 218,900 | |||||
Debt Instrument, Payment Terms | payable monthly commencing on February 28, 2022, if loan forgiveness is not requested by that date | |||||
Medex Medical Management, Inc. (“MMM”) [Member] | ||||||
PAYCHECK PROTECTION PROGRAM LOANS (Details) [Line Items] | ||||||
Debt Instrument, Decrease, Forgiveness | 59,600 | |||||
Interest Expense [Member] | Pacific Health Care Organization, Inc. (“PHCO”) [Member] | ||||||
PAYCHECK PROTECTION PROGRAM LOANS (Details) [Line Items] | ||||||
Debt Instrument, Decrease, Forgiveness | 1,067 | |||||
Interest Expense [Member] | Medex Managed Care, Inc. (“MMC”) [Member] | ||||||
PAYCHECK PROTECTION PROGRAM LOANS (Details) [Line Items] | ||||||
Debt Instrument, Decrease, Forgiveness | 2,142 | |||||
Interest Expense [Member] | Medex Medical Management, Inc. (“MMM”) [Member] | ||||||
PAYCHECK PROTECTION PROGRAM LOANS (Details) [Line Items] | ||||||
Debt Instrument, Decrease, Forgiveness | $ 477 |