Healthcare Corp of America

CIK:0001514682|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	Mar. 31, 2014	Mar. 31, 2013
Sales	$ 14,921,025	$ 11,961,723
Cost of sales	14,302,185	11,450,011
Gross profit	618,840	511,712
Operating expenses:
Selling, general and administrative	3,483,049	2,974,020
Loss from operations	(2,864,209)	(2,462,308)
Other income (expense):
Interest expense	(884,247)	(1,186,305)
Change in fair value of derivative liabilities	702,300	0
Total other income (expense)	(181,947)	(1,186,305)
Loss before provision for income taxes	(3,046,156)	(3,648,613)
Provision for income taxes	0	0
Net loss	$ (3,046,156)	$ (3,648,613)
Earnings per share:
Basic and diluted loss per share (in dollars per share)	$ (0.34)	$ (0.09)
Weighted average number of shares outstanding (in shares)	8,846,103	40,250,009

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended		12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Cash used in operating activities:
Net loss	$ (3,046,156)	$ (3,648,613)	$ 24,544,708
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	112,666	74,693
Non cash interest expense	815,188	218,566
Stock-based compensation	283,889	480,000
Note-based compensation	18,394	0
Mark to market adjustment on derivative liabilities	(702,300)	0
Changes in assets and liabilities:
Accounts receivable	190,089	(857,974)
Rebates receivable	291,503	(221,432)
Inventory	211,198	119,693
Prepaid expenses and other current assets	112,836	1,055
Accounts payable and accrued expenses	539,188	1,730,261
Deferred revenues	(324,239)	166,475
Other liabilities	(4,224)	(1,415)
Total cash used in operating activities	(1,501,968)	(1,938,691)
Cash used in investing activities:
Purchase of property and equipment	(11,620)	(123,939)
Total cash used in investing activities	(11,620)	(123,939)
Cash from financing activities:
Proceeds from senior convertible note	500,000	0
Proceeds from notes payable	0	611,311
Debt costs	(22,895)	0
Warrants issued	0	120,937
Payments of capital leases	(50,819)	(51,729)
Total cash provided by financing activities	426,286	680,519
Net increase (decrease) in cash	(1,087,302)	(1,382,111)
Cash, beginning of period	2,614,375	1,791,134	1,791,134
Cash, end of period	1,527,073	409,023	2,614,375
Supplemental disclosures:
Interest	(69,059)	(960,416)
Income taxes	0	0
Issuance of shares in settlement of disputes	$ (112,500)	$ 0

CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 1,527,073	$ 2,614,375
Accounts receivable	1,322,165	1,512,254
Inventory	427,660	638,858
Rebates receivable	1,780,546	2,072,049
Prepaid expenses and other current assets	77,117	164,450
Total current assets	5,134,561	7,001,986
Property and equipment, net	1,071,859	1,148,515
Deferred financing costs, net	246,086	254,252
Software, net	374,993	399,383
Other assets	362,566	406,463
Total assets	7,190,065	9,210,599
Current liabilities:
Accounts payable	5,250,349	5,184,273
Accrued expenses	3,896,012	3,294,467
Deferred revenue	1,766,375	2,090,614
Senior convertible note, net of debt discount	2,066,463	1,296,776
Junior convertible note, net of debt discount	74,591	0
Current portion of capital leases	209,267	216,400
Other current liabilities	12,125	19,503
Total current liabilities	13,275,182	12,102,033
Incentive Notes	3,133,213	2,934,297
Capital leases, net of current portion	535,704	579,390
Derivative liabilities	4,703,589	5,405,889
Other liabilities	47,785	44,631
Total liabilities	21,695,473	21,066,240
Commitments and contingencies
Stockholders' deficit:
Common stock, $.0001 par value; 30,000,000 shares authorized; 8,907,492 and 8,832,492 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively	890	882
Additional paid-in capital	23,724,108	23,327,727
Accumulated deficit	(38,230,406)	(35,184,250)
Total stockholders' deficit	(14,505,408)	(11,855,641)
Total liabilities, redeemable securities and stockholders' deficit	$ 7,190,065	$ 9,210,599