Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 15, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | CANFIELD MEDICAL SUPPLY, INC. | |
Entity Central Index Key | 0001553788 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Small Business | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 000-55114 | |
Entity Incorporation, State or Country Code | CO | |
Entity Common Stock, Shares Outstanding | 11,813,200 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 |
CONDENSED BALANCE SHEETS (UNAUD
CONDENSED BALANCE SHEETS (UNAUDITED) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash | $ 235,324 | $ 6,980 |
Accounts receivable, net | 205,565 | 300,993 |
Inventory | 36,572 | 41,695 |
Total Current Assets | 477,461 | 349,668 |
Other Assets | ||
Right-of-use asset | 31,198 | 0 |
Equipment, net of accumulated depreciation of $94,145 and $92,907 | 44,393 | 58,627 |
Total Other Assets | 75,591 | 58,627 |
Total Assets | 553,052 | 408,295 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 235,264 | 331,034 |
Line of credit | 74,463 | 66,181 |
Due to officer | 267,878 | 0 |
Current portion of long-term debt | 4,491 | 8,241 |
Total Current Liabilities | 582,096 | 405,456 |
Long-term Liabilities | ||
Lease liability | 31,198 | 0 |
Long-term debt | 3,797 | 5,498 |
Total Long-term Liabilities | 34,995 | 5,498 |
Total Liabilities | 617,091 | 410,954 |
Stockholders' Equity (Deficit) | ||
Preferred stock, no par value; 5,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, no par value; 100,000,000 shares authorized; 11,813,200 and 11,477,200 shares issued and outstanding | 345,515 | 245,515 |
Accumulated deficit | (409,554) | (248,174) |
Total Stockholders' Equity (Deficit) | (64,039) | (2,659) |
Total Liabilities and Stockholders' Equity (Deficit) | $ 553,052 | $ 408,295 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, no par value | $ 0 | $ 0 |
Preferred stock, authorized shares | 5,000,000 | 5,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, issued shares | 11,813,200 | 11,477,200 |
Common stock, outstanding shares | 11,813,200 | 11,477,200 |
Accumulated depreciation | $ 94,145 | $ 92,907 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Sales (net of returns) | $ 174,947 | $ 354,765 | $ 446,902 | $ 699,389 |
Cost of goods sold | 117,351 | 147,035 | 249,746 | 317,211 |
Gross profit | 57,596 | 207,730 | 197,156 | 382,178 |
Operating expenses: | ||||
Salaries and wages | 92,919 | 75,393 | 181,740 | 147,160 |
Professional fees | 15,181 | 8,665 | 50,536 | 39,930 |
Depreciation | 14,520 | 17,742 | 25,730 | 30,375 |
Other selling, general and administrative | 39,448 | 37,449 | 91,700 | 80,279 |
Total operating expenses | 162,068 | 139,249 | 349,706 | 297,744 |
Income (loss) from operations | (104,472) | 68,481 | (152,550) | 84,434 |
Other income (expense): | ||||
Interest income | 32 | 0 | 32 | 0 |
Interest expense | (2,798) | (1,250) | (4,140) | (2,444) |
Gain (Loss) on sale of fixed assets | 194 | 477 | (4,722) | 5,726 |
Total other income (expense) | (2,572) | (773) | (8,830) | 3,282 |
Income (loss) before provision for income taxes | (107,044) | 67,708 | (161,380) | 87,716 |
Provision for income tax | 0 | 0 | 0 | 0 |
Net income (loss) | $ (107,044) | $ 67,708 | $ (161,380) | $ 87,716 |
Net income (loss) per share (basic and fully diluted) | $ (0.01) | $ 0.01 | $ (0.01) | $ 0.01 |
Weighted average number of common shares outstanding | 11,514,123 | 11,277,200 | 11,495,764 | 11,277,200 |
CONDENSED STATEMENTS OF STOCKHO
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) | Common Stock | Accumulated Deficit | Total |
Beginning Balance at Dec. 31, 2017 | $ 243,515 | $ (316,380) | $ (72,865) |
Beginning Balance, in Shares at Dec. 31, 2017 | 11,277,200 | ||
Net income (loss) for the period | 20,008 | 20,008 | |
Ending Balance at Mar. 31, 2018 | $ 243,515 | (296,372) | (52,857) |
Ending Balance, in Shares at Mar. 31, 2018 | 11,277,200 | ||
Beginning Balance at Dec. 31, 2017 | $ 243,515 | (316,380) | (72,865) |
Beginning Balance, in Shares at Dec. 31, 2017 | 11,277,200 | ||
Net income (loss) for the period | 87,716 | ||
Ending Balance at Jun. 30, 2018 | $ 243,515 | (228,664) | 14,851 |
Ending Balance, in Shares at Jun. 30, 2018 | 11,277,200 | ||
Beginning Balance at Mar. 31, 2018 | $ 243,515 | (296,372) | (52,857) |
Beginning Balance, in Shares at Mar. 31, 2018 | 11,277,200 | ||
Net income (loss) for the period | 67,708 | 67,708 | |
Ending Balance at Jun. 30, 2018 | $ 243,515 | (228,664) | 14,851 |
Ending Balance, in Shares at Jun. 30, 2018 | 11,277,200 | ||
Beginning Balance at Dec. 31, 2018 | $ 245,515 | (248,174) | (2,659) |
Beginning Balance, in Shares at Dec. 31, 2018 | 11,477,200 | ||
Net income (loss) for the period | (54,336) | (54,336) | |
Ending Balance at Mar. 31, 2019 | $ 245,515 | (302,510) | (56,995) |
Ending Balance, in Shares at Mar. 31, 2019 | 11,477,200 | ||
Beginning Balance at Dec. 31, 2018 | $ 245,515 | (248,174) | (2,659) |
Beginning Balance, in Shares at Dec. 31, 2018 | 11,477,200 | ||
Sales of common stock | 100,000 | ||
Net income (loss) for the period | (161,380) | ||
Ending Balance at Jun. 30, 2019 | $ 345,515 | (409,554) | (64,039) |
Ending Balance, in Shares at Jun. 30, 2019 | 11,813,200 | ||
Beginning Balance at Mar. 31, 2019 | $ 245,515 | (302,510) | (56,995) |
Beginning Balance, in Shares at Mar. 31, 2019 | 11,477,200 | ||
Sales of common stock | $ 100,000 | 100,000 | |
Sales of common stock, in Shares | 336,000 | ||
Net income (loss) for the period | (107,044) | (107,044) | |
Ending Balance at Jun. 30, 2019 | $ 345,515 | $ (409,554) | $ (64,039) |
Ending Balance, in Shares at Jun. 30, 2019 | 11,813,200 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ (161,380) | $ 87,716 |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||
(Gain) loss on disposal of fixed assets | 4,722 | (5,726) |
Depreciation | 25,730 | 30,375 |
Bad debt expense | 15,101 | 0 |
Changes in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable | 80,327 | (75,088) |
(Increase) decrease in inventory | 5,123 | (9,489) |
Increase (decrease) in accounts payable and accrued liabilities | (95,770) | 15,724 |
Net cash provided by (used for) operating activities | (126,147) | 43,512 |
Cash Flows From Investing Activities: | ||
Proceeds from sale of fixed assets | 1,706 | 6,474 |
Purchases of fixed assets | (17,924) | (25,358) |
Net cash (used for) investing activities | (16,218) | (18,884) |
Cash Flows From Financing Activities: | ||
Net proceeds from (payments on) line of credit | 8,282 | (3,650) |
Proceeds received from officer | 267,878 | 0 |
Payments on long-term debt | (5,451) | (5,601) |
Proceeds from sales of common stock | 100,000 | 0 |
Net cash provided by (used for) financing activities | 370,709 | (9,251) |
Net Increase (Decrease) in Cash | 228,344 | 15,377 |
Cash At The Beginning Of The Period | 6,980 | 17,921 |
Cash At The End Of The Period | 235,324 | 33,298 |
Schedule Of Non-Cash Investing And Financing Activities | ||
Recording of lease liability and right-of-use asset | 43,677 | 0 |
Amortization of right-of-use asset | 12,479 | 0 |
Supplemental Disclosure | ||
Cash paid for interest | 4,140 | 2,444 |
Cash paid for income taxes | $ 0 | $ 0 |
ORGANIZATION, OPERATIONS AND SU
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Canfield Medical Supply, Inc. (the “Company”), was incorporated in the State of Ohio on September 3, 1992, and changed domicile to Colorado on April 18, 2012. The Company is in the business of home health services, primarily the selling of durable medical equipment and medical supplies to the public, nursing homes, hospitals and other end users. Effective June 21, 2019 WesBev LLC, a Nevada limited liability company ("WesBev"), acquired 8,000,000 shares of common stock from Michael J. West, a founder, director and former principal shareholder of the Company, consisting of approximately 69.7% of the issued and outstanding shares of the Company at the time of the purchase. As part of his agreement with WesBev, Mr. West undertook to appoint or cause the appointment of up to three persons nominated by WesBev to the board of directors of the Company. Effective June 21, 2019 the Company sold 336,000 shares of common stock to WesBev for $100,000. Following these stock purchases WesBev beneficially owns 8,336,000 shares, or approximately 71% of the issued and outstanding shares of the Company and may be deemed to be in control of the registrant. The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the six months ended June 30, 2019 and 2018 have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2018 audited financial statements. The results of operations for the periods ended June 30, 2019 and 2018 are not necessarily indicative of the operating results for the full year. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents. Accounts receivable The majority of the Company’s revenues are received from Medicare, Medicaid, and private insurance companies. As such, the Company records revenues at allowable amounts, net of estimated allowances and discounts based on contracted prices and historical collection rates. The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary. The Company wrote off bad debts of $15,101 and $0 for the six months ended June 30, 2018 and 2017, respectively. At June 30, 2019 and December 31, 2018, the Company has determined that no allowance for doubtful accounts is necessary. Property and equipment Property and equipment are recorded at cost and depreciated under straight line methods over each item's estimated useful life. Inventory The Company carries inventory of durable medical equipment and medical supplies for resale. Inventory is accounted for on a first–in first-out basis. Revenue recognition It is the Company’s policy that revenues from product sales is recognized in accordance with ASC 606 "Revenue Recognition." Five basic steps must be followed before revenue can be recognized; (1) Identifying the contract(s) with a customer that creates enforceable rights and obligations; (2) Identifying the performance obligations in the contract, such as promising to transfer goods or services to a customer; (3) Determining the transaction price, meaning the amount of consideration in a contract to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer; (4) Allocating the transaction price to the performance obligations in the contract, which requires the company to allocate the transaction price to each performance obligation on the basis of the relative standalone selling prices of each distinct good or services promised in the contract; and (5) Recognizing revenue when (or as) the entity satisfies a performance obligation by transferring a promised good or service to a customer. The amount of revenue recognized is the amount allocated to the satisfied performance obligation. For sales of our Company products, a purchase arrangement is evidenced by a written order, with delivery considered as made after physical customer acceptance. Although rare, defective products may be returned, with other return issues considered on a case by case basis. Services such as periodic scheduled deliveries are contracted in writing, and generally billed monthly. Any service revenue earned by the Company for services such as safety and set up consulting or claims processing is recorded after the service is performed. Rental of durable home medical equipment is evidenced by written contract, with revenue recognized when rent is earned. Advertising costs Advertising costs are expensed as incurred. The Company had advertising costs during the six months ended June 30, 2019 and 2018 of $1,047 and $8,637, respectively. Income tax The Company accounts for income taxes pursuant to ASC 740. Under ASC 740, deferred taxes are provided for using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Net income (loss) per share The net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's convertible debt or preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share. There were no potentially dilutive debt or equity instruments issued or outstanding during the six months ended June 30, 2019 or 2018. Financial Instruments The carrying value of the Company’s financial instruments, as reported in the accompanying balance sheets, approximates fair value. Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents. The Company places its cash and cash equivalents at well-known financial institutions, where at times, such balances may exceed FDIC insurance limits. The Company receives a significant amount of its revenues in reimbursements from Medicare and Medicaid thru competitive bidding processes. There is no guarantee that the Company will be selected as a winning contract supplier under future bidding rounds. Long-Lived Assets In accordance with ASC 350, the Company regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both internally and externally, that suggest impairment. If impairment testing indicates a lack of recoverability, an impairment loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value. Products and services, geographic areas and major customers The Company’s business of medical supply sales constitutes one operating segment. All revenues each year were domestic and to external customers. Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, “Lease (Topic 842),” |
EQUIPMENT
EQUIPMENT | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
EQUIPMENT | NOTE 2. EQUIPMENT Fixed assets are comprised of office equipment, vehicles, and the wheelchair and hospital bed rental pool, which consists of wheelchairs and hospital beds rented to customers over the shorter of the 13-month rental period mandated by Medicaid and Medicare, or the period over which the customer requires use of the wheelchair or hospital bed. At the end of the use period, the wheelchair or hospital bed is transferred to the customer. Depreciation is computed over the estimated useful life of the assets, ranging from 13 months to 7 years, on the straight-line basis. Depreciation expense for the six months ended June 30, 2019 and 2018 was $25,730 and $30,375, respectively. Accumulated depreciation totaled $94,145 and $92,907 at June 30, 2019 and December 31, 2018, respectively. |
LINE OF CREDIT
LINE OF CREDIT | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
LINE OF CREDIT | NOTE 3. LINE OF CREDIT At June 30, 2019 and December 31, 2018, the Company owed a bank $74,463 and $66,181, respectively, under a revolving line of credit. The line of credit is secured by all Company assets, is capped at $100,000, is due on demand, and bears interest at variable rates approximating 7% on average . Interest expense under the note totaled $2,798 and $4,140 during the six months ended June 30, 2019 and 2018, respectively. During the six months ended June 30, 2019 and 2018, the Company made net (borrowings) and principal payments of ($8,282) and $3,650, respectively. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | NOTE 4. LONG-TERM DEBT Long-term debt consists of the following vehicle loans, which are collateralized by their underlying vehicles with net carrying values exceeding the outstanding loan amounts : June 30, 2019 December 31, 2018 3.53% installment note payable $352 monthly, including interest, through July 2019 $ 702 $ 2,782 3.79% installment note payable $299 monthly, including interest, through July 2021 6,890 8,532 2.99% installment note payable $350 monthly, including interest, through August 2019 696 2,425 Total 8,288 13,739 Less principal due within one year (4,491 ) (8,241 ) TOTAL LONG-TERM DEBT $ 3,797 $ 5,498 |
COMMON STOCK
COMMON STOCK | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
COMMON STOCK | NOTE 5. COMMON STOCK In June 2019, the Company received net proceeds of $100,000 from the sale of 336,000 shares of no-par value common stock at $0.298 per share. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
LEASE COMMITMENTS | NOTE 6. LEASE COMMITMENTS The Company rents office space under a non-cancellable lease through September 2020 with monthly payments of approximately $2,292. Pursuant to ASC 842, an operating lease right-of-use (“ROU”) asset and liability were recognized at January 1, 2019 based on the present value of lease payments over the remaining lease term. The ROU asset represents the Company’s right to use the underlying office space asset for the lease term, and the lease liability represents the Company’s obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The operating lease ROU asset includes any lease payments made and excludes lease incentives. The Company recognized $13,800 in lease expense during the six months ended June 30, 2019. Remaining lease term at June 30, 2019 (in years) 1.2 Discount rate 5 % Six Months Ended June 30, 2019 Operating lease expense $ 13,800 Cash paid for amounts included in measurement of lease liability $ 13,800 The supplemental balance sheet information related to leases for the period is as follows: Right-of-Use Asset ROU Asset, January 1, 2019 $ 43,677 Amortization of ROU Asset (12,479 ) ROU Asset, June 30, 2019 $ 31,198 Maturities of the Company’s lease liabilities are as follows: Year Ending Payments 2019 $ 13,752 2020 20,628 Total lease payments 34,380 Less: Imputed interest/present value discount (3,182 ) Present value of lease liability at June 30, 2019 $ 31,198 |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GOING CONCERN | NOTE 7. GOING CONCERN The Company has suffered losses from operations and has working capital and stockholders’ equity deficits. In all likelihood, the Company will be required to make significant future expenditures in connection with marketing efforts along with general administrative expenses. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company may raise additional capital through the sale of its equity securities, through an offering of debt securities, or through borrowings from financial institutions or related parties. By doing so, the Company hopes to generate sufficient capital to execute its business plan of selling medical supplies on an ongoing basis. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 8. SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date these financial statements were issued and determined that there are no reportable subsequent events. |
ORGANIZATION, OPERATIONS AND _2
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents. |
Accounts receivable | Accounts receivable The majority of the Company’s revenues are received from Medicare, Medicaid, and private insurance companies. As such, the Company records revenues at allowable amounts, net of estimated allowances and discounts based on contracted prices and historical collection rates. The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary. The Company wrote off bad debts of $15,101 and $0 for the six months ended June 30, 2018 and 2017, respectively. At June 30, 2019 and December 31, 2018, the Company has determined that no allowance for doubtful accounts is necessary. |
Property and equipment | Property and equipment Property and equipment are recorded at cost and depreciated under straight line methods over each item's estimated useful life. |
Inventory | Inventory The Company carries inventory of durable medical equipment and medical supplies for resale. Inventory is accounted for on a first–in first-out basis. |
Revenue recognition | Revenue recognition It is the Company’s policy that revenues from product sales is recognized in accordance with ASC 606 "Revenue Recognition." Five basic steps must be followed before revenue can be recognized; (1) Identifying the contract(s) with a customer that creates enforceable rights and obligations; (2) Identifying the performance obligations in the contract, such as promising to transfer goods or services to a customer; (3) Determining the transaction price, meaning the amount of consideration in a contract to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer; (4) Allocating the transaction price to the performance obligations in the contract, which requires the company to allocate the transaction price to each performance obligation on the basis of the relative standalone selling prices of each distinct good or services promised in the contract; and (5) Recognizing revenue when (or as) the entity satisfies a performance obligation by transferring a promised good or service to a customer. The amount of revenue recognized is the amount allocated to the satisfied performance obligation. For sales of our Company products, a purchase arrangement is evidenced by a written order, with delivery considered as made after physical customer acceptance. Although rare, defective products may be returned, with other return issues considered on a case by case basis. Services such as periodic scheduled deliveries are contracted in writing, and generally billed monthly. Any service revenue earned by the Company for services such as safety and set up consulting or claims processing is recorded after the service is performed. Rental of durable home medical equipment is evidenced by written contract, with revenue recognized when rent is earned. |
Advertising costs | Advertising costs Advertising costs are expensed as incurred. The Company had advertising costs during the six months ended June 30, 2019 and 2018 of $1,047 and $8,637, respectively. |
Income tax | Income tax The Company accounts for income taxes pursuant to ASC 740. Under ASC 740, deferred taxes are provided for using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. |
Net income (loss) per share | Net income (loss) per share The net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's convertible debt or preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share. There were no potentially dilutive debt or equity instruments issued or outstanding during the six months ended June 30, 2019 or 2018. |
Financial Instruments | Financial Instruments The carrying value of the Company’s financial instruments, as reported in the accompanying balance sheets, approximates fair value. |
Concentrations | Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents. The Company places its cash and cash equivalents at well-known financial institutions, where at times, such balances may exceed FDIC insurance limits. The Company receives a significant amount of its revenues in reimbursements from Medicare and Medicaid thru competitive bidding processes. There is no guarantee that the Company will be selected as a winning contract supplier under future bidding rounds. |
Long-Lived Assets | Long-Lived Assets In accordance with ASC 350, the Company regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both internally and externally, that suggest impairment. If impairment testing indicates a lack of recoverability, an impairment loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value. |
Products and services, geographic areas and major customers | Products and services, geographic areas and major customers The Company’s business of medical supply sales constitutes one operating segment. All revenues each year were domestic and to external customers. |
Leases | Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, “Lease (Topic 842),” |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | Long-term debt consists of the following vehicle loans, which are collateralized by their underlying vehicles with net carrying values exceeding the outstanding loan amounts : June 30, 2019 December 31, 2018 3.53% installment note payable $352 monthly, including interest, through July 2019 $ 702 $ 2,782 3.79% installment note payable $299 monthly, including interest, through July 2021 6,890 8,532 2.99% installment note payable $350 monthly, including interest, through August 2019 696 2,425 Total 8,288 13,739 Less principal due within one year (4,491 ) (8,241 ) TOTAL LONG-TERM DEBT $ 3,797 $ 5,498 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Components of lease expense and supplemental information related to lease | The Company recognized $13,800 in lease expense during the six months ended June 30, 2019. Remaining lease term at June 30, 2019 (in years) 1.2 Discount rate 5 % Six Months Ended June 30, 2019 Operating lease expense $ 13,800 Cash paid for amounts included in measurement of lease liability $ 13,800 |
Supplemental balance sheet information related to leases | The supplemental balance sheet information related to leases for the period is as follows: Right-of-Use Asset ROU Asset, January 1, 2019 $ 43,677 Amortization of ROU Asset (12,479 ) ROU Asset, June 30, 2019 $ 31,198 |
Maturities of lease liabilities | Maturities of the Company’s lease liabilities are as follows: Year Ending Payments 2019 $ 13,752 2020 20,628 Total lease payments 34,380 Less: Imputed interest/present value discount (3,182 ) Present value of lease liability at June 30, 2019 $ 31,198 |
ORGANIZATION, OPERATIONS AND _3
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Advertising cost | $ 1,047 | $ 8,637 | |
Allowance for doubtful accounts | $ 0 | $ 0 | |
Potentially dilutive shares | 0 | 0 | |
Bad debt expense | $ 15,101 | $ 0 |
EQUIPMENT (Details Narrative)
EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Depreciation | $ 14,520 | $ 17,742 | $ 25,730 | $ 30,375 | |
Accumulated depreciation | $ 94,145 | $ 94,145 | $ 92,907 | ||
Minimum [Member] | |||||
Estimated useful life of assets | 13 months | ||||
Maximum [Member] | |||||
Estimated useful life of assets | 7 years |
LINE OF CREDIT (Details Narrati
LINE OF CREDIT (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |||
Line of credit | $ 74,463 | $ 66,181 | |
Secured line of credit | 100,000 | ||
Interest expense | 2,798 | $ 4,140 | |
Repayments of Lines of Credit | $ (8,282) | $ (3,650) |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Long Term Gross | $ 8,288 | $ 13,739 |
Less principal due within one year | (4,491) | (8,241) |
Total Long Term debt | 3,797 | 5,498 |
Long-term Debt One [Member] | ||
Note Payable, monthly installment | 352 | |
Long Term Gross | 702 | 2,782 |
Long-term Debt Two [Member] | ||
Note Payable, monthly installment | 299 | |
Long Term Gross | 6,890 | 8,532 |
Long-term Debt Three [Member] | ||
Note Payable, monthly installment | 350 | |
Long Term Gross | $ 696 | $ 2,425 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2019USD ($)$ / sharesshares | |
Equity [Abstract] | ||
Proceeds from sales of common stock | $ | $ 100,000 | $ 100,000 |
Number of shares sold for proceeds | shares | 336,000 | |
Value of common stock sold (per share) | $ / shares | $ 0.298 | $ 0.298 |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Remaining lease term (in years) | 1 year 2 months 12 days |
Discount rate | 5.00% |
Operating lease expense | $ 13,800 |
Cash paid for amounts included in measurement of lease liability | $ 13,800 |
LEASE COMMITMENTS (Details 1)
LEASE COMMITMENTS (Details 1) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Right-of-Use Asset | |
ROU Asset, at beginning | $ 43,677 |
Amortization of ROU Asset | (12,479) |
ROU Asset, at end | $ 31,198 |
LEASE COMMITMENTS (Details 2)
LEASE COMMITMENTS (Details 2) | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 13,752 |
2020 | 20,628 |
Total lease payments | 34,380 |
Less: Imputed interest/present value discount | (3,182) |
Present value of lease liability | $ 31,198 |
LEASE COMMITMENTS (Details Narr
LEASE COMMITMENTS (Details Narrative) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Office space approximate monthly payment | $ 2,292 |
Lease expense | $ 13,800 |