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GOING CONCERN CONSIDERATIONS
9 Months Ended
Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Substantial Doubt about Going Concern [Text Block]

NOTE 2.  GOING CONCERN CONSIDERATIONS

 

Since our inception in 1998, until commencement of our spine injury diagnostic operations in August, 2009, our expenses substantially exceeded our revenue, resulting in continuing losses and an accumulated deficit from operations of $15,004,698 as of December 31, 2009.  Since that time, our accumulated deficit has increased $5,252,769 to $20,257,467 as of September 30, 2021. Presently, we are trying to limit operating expenses to the greatest extent possible. If in the future we decide to increase our service development, marketing efforts and/or brand building activities, we will need to increase our operating expenses and our general and administrative functions to support such growth in operations. No such growth in operations is presently planned. We are also actively seeking a private company with which to enter into a strategic business transaction, including a merger; however, we cannot predict the ultimate outcome of our efforts. Our continued existence is dependent upon our ability to successfully merge with a financially viable company, or our ability to increase revenue from services and obtain additional capital from borrowing and sales of our securities, as needed, to fund our operations. There is no assurance that a merger will be initiated or completed or that additional capital can be obtained or that it can be obtained on terms that are favorable to us and our existing stockholders. Any expectation of future profitability is dependent upon our ability to expand and develop our business, of which there can be no assurances. 

 

During the fourth quarter of 2018, the decision was made to discontinue our involvement in future medical procedures due to our cash position, which hampered our ability to pay back existing debt to a current director and stockholder (see Note 5—Term Loan). We were not involved in any procedures in 2021 or 2020, and will not resume procedures unless we can access additional capital. The service revenue we previously earned has resulted in longer settlement times and a slowdown in cash collections. Additionally, our efforts to establish a market for the Quad Video Halo has not met our expectations, and we have cut back its development and operations. If we are unable to access additional capital in the near future, these recent developments could have a material negative impact on our financial performance and could have a material adverse effect on our results of operations and financial condition. As an alternative, we are also exploring possible strategic business transactions with third party companies.

 

We are actively pursuing a merger with a private company where they become the controlling company. We find this to be the best course of action for our stockholders. In July 2021, a private company signed a letter of intent to acquire us. In connection with the agreement, it paid $66,500 as a deposit to be applied to the total purchase price upon closing. Prior to the expiration date provided in the letter of intent, the agreement was terminated in September 2021. Upon termination of the agreement, $35,000 of the down payment was released to us and recognized as other income in the accompanying condensed consolidated statements of operations. The remaining $31,500 was held in trust at September 30, 2021 and was released to us in the fourth quarter of 2021.

 

Further, the COVID-19 pandemic has made it difficult for us to collect our accounts receivable, as attorney and medical offices are closed resulting in delayed settlements and medical procedures being canceled, which affects our lease revenue. We are uncertain how this pandemic will affect our ability to collect in the future or its overall effect on our lease revenue.