Nature of Operations & Restatement

6 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Nature of Operations & Restatement

Note 1 Nature of Operations & Restatement

Organization

Progressive Training, Inc. (“Progressive Training”) was incorporated on October 31, 2006 in the State of Delaware. Pharmco, LLC a Florida limited liability company (“PharmCo”) was incorporated on November 29, 2005. On October 21, 2010, Progressive Training entered into an Agreement and Plan of Merger with PharmCo, and Pharmco Acquisition Corp. (“Acquisition Sub”), pursuant to which Acquisition Sub was merged with and into PharmCo, and PharmCo, as the surviving corporation, became the Company’s wholly-owned subsidiary (the “Reverse Merger”). As part of the Reverse Merger, Progressive Training was renamed Progressive Care Inc. (the “Company”).

Recapitalization

Immediately following the Reverse Merger, the shareholders of PharmCo owned a majority of the outstanding shares of the Company. In addition, as part of the transaction, the previous owners of Progressive Training retained the training video business; therefore, the transaction was accounted for as a reverse recapitalization. The assets and liabilities and the historical operations that are reflected in the financial statements are those of PharmCo. The historical consolidated financial statements reflect the impact of the change in capital structure that resulted from the recapitalization from the earliest period presented.

Description of the Business

The Company is a retail pharmacy specializing in the sale of anti-retroviral medications and related patient care management, the sale and rental of durable medical equipment ("DME") and the supply of prescription medications and DME to nursing homes and assisted living facilities. Prior to the Reverse Merger, the Company operated a training video business.

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they may not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. The results for the interim period are not necessarily indicative of the results to be expected for the full year.

The unaudited interim consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, which contains the audited financial statements and notes thereto, together with Management’s Discussion and Analysis of Financial Condition and Results of Operation, for the year ended December 31, 2011. The interim results for the period ended June 30, 2012 are not necessarily indicative of results for the full fiscal year.

The Company’s year ended December 31, 2011 audited financial statements are currently being restated and therefore the Company has presented them herein as unaudited, since the related restatements have not yet been filed, and since the audit has not been completed.

Restatement

On May 28, 2012, the Company concluded that the following financial statements required restatement: its audited financial statements for the year ended December 31, 2010 filed in an annual report on Form 10-K with the SEC on April 15, 2011; (ii) its audited financial statements for the year ended December 31, 2011, filed in an annual report on Form 10-K with the SEC on April 16, 2012; (iii) its unaudited financial statements for the period ended March 31, 2011, filed in a quarterly report on Form 10-Q with the SEC on May 23, 2011; (iv) its unaudited financial statements for the period ended June 30, 2011, filed in a quarterly report on Form 10-Q with the SEC on August 22, 2011; (v) its unaudited financial statements for the period ended September 30, 2011, filed in a quarterly report on Form 10-Q with the SEC on November 14, 2011, and (vi) its unaudited financial statements for the period ended March 31, 2012, filed in a quarterly report on Form 10-Q with the SEC on May 21, 2012. The Company plans on completing the restatements in the next 30 days.

The following tables present the impact of the restatements on the Company’s year ended December 31, 2011 balance sheet and six months ended June 30, 2011 statement of operations and statement of cash flows, which are used as comparative information to the Company’s current financial statement herein:

Consolidated Balance Sheet as of December 31, 2011:

	December 31, 2011
	As Originally Reported			Adjustments			As Restated
							(unaudited)
Assets
Current Assets
Cash	$	88,874		$	-		$	88,874
Accounts receivable - net		1,006,835			-			1,006,835
Inventory		248,678			-			248,678
Prepaids		21,741			-			21,741
Total Current Assets		1,366,128			-			1,366,128
Property and equipment - net		276,795			-			276,795
Other Assets
Intangibles - net		1,574,663			(1,574,663	)		-
Goodwill		1,348,402			(1,348,402	)		-
Debt issue costs		22,259			-			22,259
Deposits		44,741			-			44,741
Total Other Assets		2,990,065			(2,923,065	)		67,000
Total Assets	$	4,632,988		$	(2,923,065	)	$	1,709,923
Liabilities and Stockholders' Equity
Current Liabilities
Cash overdraft	$	71,380		$	-		$	71,380
Accounts payable and accrued liabilities		248,786			-			248,785
Deferred rent payable		17,535			-			17,535
Income taxes payable		42,656			-			42,656
Notes payable		87,767			-			87,767
Notes payable - related party		73,329			-			73,329
Accrued interest payable - related party		24,732			-			24,732
Total Current Liabilities		566,185			-			566,184
Long Term Liabilities
Convertible Debt - note payable		150,000			-			150,000
Total Long Term Liabilities		150,000			-			150,000
Stockholders' Equity
Common stock, par value $0.0001; 100,000,000 shares authorized
38,066,830 and 36,348,830 issued and outstanding (2011); and
35,280,000 and 33,562,000 shares issued and outstanding (2010)		3,807			-			3,807
Additional paid in capital		6,278,571			(6,367,152	)		(88,581	)
Accumulated deficit		(2,365,574	)		3,444,087			1,078,513
Total Stockholders' Equity		3,916,804			(2,923,065	)		993,739
Total Liabilities and Stockholders' Equity	$	4,632,989		$	(2,923,065	)	$	1,709,923

Consolidated Statement of Operations for the three and six months ended June 30, 2011:

	Three Months Ended									Six Months Ended
	June 30, 2011									June 30, 2011
	As Originally Reported			Adjustments			As Restated			As Originally Reported			Adjustments			As Restated
Sales - net	$	1,897,289		$	-		$	1,897,289		$	3,769,909		$	-		$	3,769,909
Cost of sales		880,752			-			880,752			1,831,953			-			1,831,953
Gross profit		1,016,537			-			1,016,537			1,937,956			-			1,937,956
Selling, general and administrative expenses		1,139,734			(60,635	)		1,079,100			2,094,492			(120,603	)		1,973,889
Loss from operations		(123,197	)		60,635			(62,563	)		(156,536	)		120,603			(35,933	)
Other Income (Expense)
Gain on debt settlement - former related party		-			-			-			12,585			-			12,585
Interest expense		(1,538	)		-			(1,538	)		(12,571	)		-			(12,571	)
Total other income - net		(1,538	)		-			(1,538	)		14			-			14
Losses from continuing operations before provision for income taxes		(124,735	)		60,635			(64,101	)		(156,522	)		120,603			(35,919	)
Provision for income taxes (benefit)
Current income tax		(49,067	)		-			(49,067	)		-			-			-
Deferred income tax		26,100			-			26,100			-			-			-
Total income tax benifit - net		(22,967	)		-			(22,967	)		-			-			-
Net loss	$	(101,768	)	$	60,635		$	(41,134	)	$	(156,522	)	$	120,603		$	(35,919	)
Basic and diluted loss per share:		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Weighted average number of common shares outstanding
during the period - basic and diluted		37,209,546						37,209,546			36,478,861						36,478,861

Consolidated Statement of Cash Flows for the six months ended June 30, 2011:

	June 30, 2011
	As Originally Reported			Adjustments			As Restated
Cash Flows From Operating Activities:
Net loss	$	(156,522	)	$	120,603		$	(35,919	)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation		40,556			-			40,556
Stock-based compensation		335,845			-			335,845
Amortization of intangibles		120,603			(120,603	)		-
Changes in operating assets and liabilities:
Accounts receivable		(228,455	)		-			(228,455	)
Inventory		67,568			-			67,568
Prepaids		(4,985	)		-			(4,985	)
Deposits		(35,704	)		-			(35,704	)
Accounts payable and accrued liabilities		100,073			-			100,073
Deferred rent		8,733			-			8,733
Accrued interest payable - related parties		(2,897	)		-			(2,897	)
Net Cash Provided by Operating Activities		244,815			-			244,815
Cash Flows From Investing Activities:
Purchase of property and equipment		(128,766	)		-			(128,766	)
Net Cash Used in Investing Activities		(128,766	)		-			(128,766	)
Cash Flows From Financing Activities:
Repayment of debt		(71,780	)		-			(71,780	)
Net Cash Used in Financing Activities		(71,780	)		-			(71,780	)
Net increase in cash	$	44,269		$	-		$	44,269
Cash at beginning of period		204,336			-			204,336
Cash at end of period	$	248,605		$	-		$	248,605
Supplemental disclosures of cash flow information:
Cash paid for interest	$	2,480.00					$	2,480.00
Cash paid for taxes	$	-					$	-