PHYHEALTH Corp

CIK:0001472174|SEC Filings

Consolidated Statements of Operations and Comprehensive Loss - Unaudited (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Income Statement [Abstract]
Sleep care service revenue, net	$ 169,525	$ 131,020	$ 276,778	$ 184,263
Operating expenses:
Officer and director compensation and related costs	67,524	108,845	152,939	188,746
Consulting and professional fees	127,081	114,481	174,392	214,687
Sleep center operating expense	153,634	78,897	345,068	188,418
Bad debt expense				29,917
General and administration	102,873	163,126	209,217	243,717
Total operating expense	451,112	465,349	881,616	865,485
Loss from operations	(281,587)	(334,329)	(604,838)	(681,222)
Other income (expenses):
Interest expense	(20,058)	(3,419)	(70,460)	(6,126)
Realized gain on securitiess	(28,684)	60,624		60,624
Loss on disposal of furniture and equipment	(37,235)		(37,235)
Gain on settlement of note payable		(6,778)		141,077
Total other income (expense)	(85,977)	50,427	(107,695)	195,575
Net loss	(367,564)	(283,902)	(712,533)	(485,647)
Add: net loss attributable to noncontrolling interest		99		2,364
Net loss attributable to Phyhealth Corporation and Subsidiaries	(367,564)	(283,803)	(712,533)	(483,283)
Net loss per share - basic and diluted	$ (0.39)	$ (0.51)	$ (0.76)	$ (0.87)
Weighted average shares outstanding - basic and diluted	932,001	553,359	931,932	553,359
Net loss	(367,564)	(283,902)		(485,647)
Unrealized investment holding loss	(4,600)	(20,457)	2,185	(94,364)
Less: reclassification adjustment for (gains) losses included in net loss		6,778		(141,077)
Comprehensive loss	(372,164)	(297,581)	(710,348)	(721,088)
Net loss attributable to noncontrolling interest		99		2,364
Comprehensive loss attributable to Phyhealth Corporation and Subsidiaries	$ (372,164)	$ (297,482)	$ (710,348)	$ (718,724)

Consolidated Statements of Cash Flows - Unaudited (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash from operating activities:
Net loss attributable to Phyhealth Corporation and Subsidiaries	$ (712,533)	$ (483,283)
Adjustments to reconcile net loss to net cash used in (provide by) operating activities:
Net loss attributable to noncontrolling interests		(2,364)
Gain on sale of equity securities		(141,077)
Gain on sale of surplus note receivable		(60,624)
Loss on diposal of property and equipment	37,235
Beneficial conversion feature	30,000
Bad debt expense		29,917
Depreciation and amortization	48,799	16,603
Amortization of debt discount	3,876
Changes in operating assets and liabilities:
Patient receivable, net	2,326	(70,404)
Other current assets	(3,500)	(1,000)
Due from related party	(1,238)	(7,920)
Other assets	6,957	(3,175)
Accounts payable and accrued liabilities	189,513	33,028
Accrued payroll liabilities	122,524	21,570
Net cash (used in) provided by operating activities	(276,041)	(668,729)
Cash flows from investing activities:
Proceeds from sale of marketable securities		436,462
Purchase of property, furniture & equipment		(17,993)
Proceeds from surplus note receivable		422,875
Net cash provided by investing activities		841,344
Cash flows from financing activities:
Proceeds from margin loan		(137,609)
Proceeds from related party loan	294,000
Proceeds from deposit	25,000
Repayment of capital lease	(27,196)	(6,331)
Net cash provided (used) by financing activities	291,804	(143,940)
Net increase in cash	15,763	28,675
Cash, beginning of period	28,233	112,087
Cash, end of period	43,996	140,762
Supplemental disclosures of cash flow information:
Interest paid in cash	6,155	2,467
Income taxes paid in cash
Non-cash investing and financing activities:
Debt discount for beneficial conversion value	30,000
Note payable forgiven in exchange for assets transferred to related party	50,000
Unrealized (gain) loss on investments	(2,185)	94,364
Equipment purchases under capital lease		168,806
Acquisition of Sleep Center:
Assets acquired	27,450
Common stock issued	(12,450)
Liability incurred	(15,000)
Net cash received from acquisition of sleep center

Consolidated Balance Sheets (USD $)	Jun. 30, 2012	Dec. 31, 2011
Current assets:
Cash	$ 43,996	$ 28,233
Patient receivables, net of $128,912 and $73,395 allowance at June 30, 2012 and December 31, 2011, respectively.	63,563	65,889
Marketable equity securities	4,600	2,415
Due from related party affiliate		21,656
Other current assets	11,000	7,500
Total current assets	123,159	125,693
Property, furniture and equipment, net	145,504	204,389
Other assets	4,475	11,433
Total assets	273,138	341,515
Current liabilities:
Accounts payable and accrued liabilities	332,222	166,205
Accrued payroll liabilities	229,605	107,081
Due to related parties	94,762
Loan payable to related party officer and spouse	261,194	25,000
Note payable to related party affiliate		50,000
Current portion of capital leases	145,668	74,904
Deposit	25,000
Convertible notes payable to related party officer, net of $0 and $3,876 discount on June 30, 2012 and December 31, 2011, respectively.	300,000	296,124
Total current liabilities	1,388,451	719,314
Capital leases, net of current portion		97,960
Total Liabilities	1,388,451	817,274
Phyhealth Corporation stockholders' equity (deficit):
Common stock, $0.0001 par value, 200,000,000 authorized, 932,001 and 919,501 issued and outstanding at June 30, 2012 and December 31, 2011, respectively.	93	92
Preferred stock, $0.0001 par value, Series A convertible preferred stock, 1,000,000 authorized, 247,053 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively.	25	25
Series B convertible preferred stock, 1,000,000 authorized, 51,047 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively.	5	5
Additional paid-in capital	2,599,568	2,528,775
Accumulated deficit	(3,614,604)	(2,902,071)
Accumulated other comprehensive income -unrealized gain (loss) on marketable equity securities	(100,400)	(102,585)
Total equity (deficit)	(1,115,313)	(475,759)
Total liabilities and equity (deficit)	$ 273,138	$ 341,515