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Summary of Significant Accounting Policies (Tables)
9 Months Ended
Dec. 31, 2015
Accounting Policies [Abstract]  
Schedule of Revenue by Major Customers by Reporting Segments
The Company has a small number of major class of payors that contributed the following percentage of net revenue for the periods indicated:
 
 
 
Three Months Ended
December 31,
 
 
Nine Months Ended
December 31,
 
 
 
2015
 
 
2014
 
 
2015
 
 
2014
 
Governmental - Medicare/Medi-Cal
 
 
30
%
 
 
55
%
 
 
32
%
 
 
63
%
L.A Care
 
 
17
%
 
 
**
 
 
 
16
%
 
 
**
 
Healthnet
 
 
10
%
 
 
**
 
 
 
11
%
 
 
**
 
 
* Represents less than 10%
** Not a payor during this time period
 
Receivables from one class of payor amounted to the following percentage of total accounts receivable for the periods indicated:
 
 
 
December 31, 2015
 
March 31, 2015
 
Governmental - Medicare/Medi-Cal
 
 
34
%
 
22
%
Schedule Of Percentage Of Total Accounts Receivable
The Company’s medical liabilities were as follows:
 
 
 
Nine Months
Ended
December 31,
2015
 
Year Ended
March 31,
2015
 
Balance, beginning of period
 
$
1,260,549
 
$
552,561
 
 
 
 
 
 
 
 
 
Incurred health care costs:
 
 
 
 
 
 
 
Current year
 
 
5,579,435
 
 
4,211,231
 
 
 
 
 
 
 
 
 
Acquired medical liabilities (see Note 3)
 
 
-
 
 
458,378
 
 
 
 
 
 
 
 
 
Claims paid:
 
 
 
 
 
 
 
Current year
 
 
(4,069,875)
 
 
(3,245,283)
 
Prior years
 
 
(1,129,545)
 
 
(90,367)
 
Total claims paid
 
 
(5,199,420)
 
 
(3,335,650)
 
 
 
 
 
 
 
 
 
Risk pool settlement
 
 
-
 
 
(384,869)
 
Accrual for net deficit from full risk capitation contracts
 
 
388,895
 
 
544,041
 
 
 
 
 
 
 
 
 
Adjustments
 
 
(90,278)
 
 
(785,143)
 
Balance, end of period
 
$
1,939,181
 
$
1,260,549
 
Schedule of Adjustment of Warrant Liability
The following is a summary of the out of period correction made as of September 30, 2015:
 
 
As of and for the
three months ended
June 30, 2015
(as filed, before NNA
 error
adjustment)
 
Out-of- period
correction
adjustment booked
during the three
months ended
September 30, 2015
 
As of and for the
three months ended
June 30,
2015 (as adjusted)
 
Deferred financing costs
$
235,093
 
$
14,937
 
$
250,030
 
 
 
 
 
 
 
 
 
 
 
Note and line of credit payable, net of discount
$
6,624,548
 
$
764,208
 
$
7,388,756
 
 
 
 
 
 
 
 
 
 
 
Warrant liability
$
2,308,620
 
$
(999,724)
 
$
1,308,896
 
 
 
 
 
 
 
 
 
 
 
Interest expense
$
360,402
 
$
(250,453)
 
$
109,949
 
 
 
 
 
 
 
 
 
 
 
Loss on change in fair value of warrant and conversion feature liabilities
$
213,718
 
$
168,412
 
$
382,130
 
Fair Value Measurements, Recurring and Nonrecurring
The carrying amounts and fair values of the Company's financial instruments are presented below as of:
 
December 31, 2015 
 
 
Fair Value Measurements
 
 
 
 
 
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Warrant liability
 
$
-
 
$
-
 
$
2,088,889
 
$
2,088,889
 
 
March 31, 2015 
 
 
Fair Value Measurements
 
 
 
 
 
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Warrant liability
 
$
-
 
$
-
 
$
2,144,496
 
$
2,144,496
 
Conversion feature liability
 
 
-
 
 
-
 
 
442,358
 
 
442,358
 
 
 
$
-
 
$
-
 
$
2,586,854
 
$
2,586,854
 
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation
The following summarizes the activity of Level 3 inputs measured on a recurring basis for the three and nine months ended December 31, 2015:
 
 
 
Three Months Ended
December 31, 2015
 
Nine Months Ended
December 31, 2015
 
 
 
Warrant
Liability
 
Conversion
Feature
Liability
 
Total
 
Warrant
Liability
 
Conversion
Feature
Liability
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
 
$
1,315,846
 
$
388,150
 
$
1,703,996
 
$
2,144,496
 
$
442,358
 
$
2,586,854
 
Fair value of warrant – NMM
 
 
2,922,222
 
 
-
 
 
2,922,222
 
 
2,922,222
 
 
-
 
 
2,922,222
 
Loss (gain) on change in fair value of warrant and conversion feature liability
 
 
(525,150)
 
 
94,754
 
 
(430,396)
 
 
(354,076)
 
 
40,546
 
 
(313,530)
 
Conversion of warrants and convertible note - NNA
 
 
(1,624,029)
 
 
(482,904)
 
 
(2,106,933)
 
 
(1,624,029)
 
 
(482,904)
 
 
(2,106,933)
 
Warrant out of period correction, as adjusted
 
 
-
 
 
-
 
 
-
 
 
(999,724)
 
 
-
 
 
(999,724)
 
Balance, as adjusted, end of period
 
$
2,088,889
 
$
-
 
$
2,088,889
 
$
2,088,889
 
$
-
 
$
2,088,889
 
Basic and Diluted Earnings per Share
The following table sets forth the number of shares excluded from the computation of diluted earnings per share, as their inclusion would be anti-dilutive:
 
 
 
Three Months Ended
December 31,
 
Nine Months Ended 
December 31,
 
 
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options
 
 
542,694
 
 
3,985,656
 
 
560,938
 
 
4,343,873
 
Warrants
 
 
162,398
 
 
851,026
 
 
175,035
 
 
1,381,839
 
Convertible Notes
 
 
275,000
 
 
102,362
 
 
275,000
 
 
610,537
 
 
 
 
980,092
 
 
4,939,044
 
 
1,010,973
 
 
6,336,249