10-Q
2012-03-31
false
Fresh Start Private Management, Inc.
0001443863
--12-31
99441938
Smaller Reporting Company
Yes
Yes
No
2012
Q1
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1657
902974
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4195
4886599
4513984
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<!--egx--><p style="MARGIN:0in 0in 0pt"><b>NOTE 1 –BUSINESS AND RECAPITALIZATION</b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Fresh Start Private Management, Inc. through its wholly owned subsidiary Fresh Start Private, Inc. provides an innovative alcohol treatment program that empowers patients to succeed in their overall recovery. We offer a unique treatment philosophy that combines medical intervention, a singular focus and a comprehensive approach, and a focus on family and friends. </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">On October 31, 2011 (the “Closing Date”), the Company entered into a Share Exchange Agreement (the “Exchange Agreement”) by and among (i) Fresh Start Private Management, Inc. (the “Company”), (ii) our former principal stockholder, (iii) Fresh Start Private, Inc. (“FSP”), and (iv) the former shareholders of FSP. Pursuant to the terms of the Exchange Agreement, each of the former shareholders of FSP transferred to us all of their shares of FSP in exchange for the issuance of 37,000,000 shares of our common stock, which represented approximately 31.3% of our total shares outstanding immediately following the closing of the transaction (such transaction, the “Share Exchange”). As a result of the Share Exchange, FSP became our wholly-owned subsidiary. We are now a holding company, which through FSP, is now engaged in alcohol treatment. Upon completion of the Share Exchange, Fresh Start Private, Inc. became Fresh Start Private Management Inc.'s wholly-owned subsidiary. As the owners and management of Fresh Start Private, Inc. obtained voting and operating control of Fresh Start Private Management, Inc. after the Share Exchange and Fresh Start Private Management Inc. was non-operating, had no assets or liabilities and did not meet the definition of a business, the transaction has been accounted for as a recapitalization of Fresh Start Private, Inc., accompanied by the issuance of its common stock for outstanding common stock of Fresh Start Management Inc., which was recorded at a nominal value. The accompanying financial statements and related notes give retroactive effect to the recapitalization as if it had occurred on July 8, 2009 (inception date) and accordingly all share and per share amounts have been adjusted. </p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt"><u>Interim Financial Statements</u></p> <p style="MARGIN:0in 0in 0pt"><u><font style="TEXT-DECORATION:none"> </font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The following (a) condensed consolidated balance sheet as of December 31, 2011, which has been derived from audited financial statements, and (b) the unaudited condensed consolidated interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2012 are not necessarily indicative of results that may be expected for the year ending December 31, 2012. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2011 included in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on May 18, 2012.</p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt"><u>Basis of presentation:</u></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The consolidated financial statements include the accounts of Fresh Start Private Management, Inc. and its wholly owned subsidiary, Fresh Start Private, Inc. (hereafter referred to as the “Company” or “Fresh Start”). All significant intercompany balances and transactions have been eliminated in consolidation.</p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u><font style="TEXT-DECORATION:none"> </font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u><font style="TEXT-DECORATION:none"> </font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u><font style="TEXT-DECORATION:none"> </font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u><font style="TEXT-DECORATION:none"> </font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u><font style="TEXT-DECORATION:none"> </font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u><font style="TEXT-DECORATION:none"> </font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u><font style="TEXT-DECORATION:none"> </font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u><font style="TEXT-DECORATION:none"> </font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u>Revenue Recognition</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Revenues are recorded during the period services are provided. Under the guidance of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 954-605 “Health Care Entities, Revenue Recognition,” the company records non-insurance revenues at full value when earned and “net service revenue” at 50% of the revenue billed to third party payers, allowing for a difference between billed amounts and expected collections from those third party payers. Counseling services may be contracted for an extended period of time up to one year after the implant procedure. Revenue for counseling sessions is deferred until such sessions occur and recognized as earned at that time.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u>Use of Estimates</u></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.</p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt"><u>Reclassification</u></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt">Certain reclassifications have been made in prior year’s financial statements to conform to classifications used in the current year.</p> <p style="MARGIN:0in 0in 0pt"><u><font style="TEXT-DECORATION:none"> </font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u>Accounts Receivable</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Accounts receivable are recorded at original invoice amount less an allowance for uncollectible accounts that management believes will be adequate to absorb estimated losses on existing balances. Management estimates the allowance based on collectability of accounts receivable and prior bad debt experience. Accounts receivable balances are written off upon management's determination that such accounts are uncollectible. Recoveries of accounts receivable previously written off are recorded when received. Management believes that credit risks on accounts receivable will not be material to the financial position of the Company or results of operations at March 31, 2012 and December 31, 2011, the allowance for doubtful accounts was $746,128 and $486,285, respectively.</p> <p style="MARGIN:0in 0in 0pt"><u><font style="TEXT-DECORATION:none"> </font></u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u>Fair value of financial instruments</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2012 and December 31, 2011. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand.</p> <p style="MARGIN:0in 0in 0pt"><u><font style="TEXT-DECORATION:none"> </font></u></p> <p style="MARGIN:0in 0in 0pt"><u>Property and equipment</u></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Property and equipment are stated at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the asset's estimated useful life, which is five years for furniture and all other equipment. Expenditures for maintenance and repairs are expensed as incurred.</p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> <u>Net (loss) income per share</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company accounts for net (loss) income per share in accordance with Accounting Standards Codification subtopic 260-10, Earnings Per Share (“ASC 260-10”), which requires presentation of basic and diluted earnings per share (“EPS”) on the face of the statement of operations for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Basic net (loss) income per share is computed by dividing net (loss) income by the weighted average number of shares of common stock outstanding during each period. It excludes the dilutive effects of any potentially issuable common shares. Diluted net (loss) income share is calculated by including any potentially dilutive share issuances in the denominator. As of March 31, 2012 and 2011, the Company did not have any potentially issuable common shares.</p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt"><u>Income taxes</u></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Income tax provisions or benefits for interim periods are computed based on the Company’s estimated annual effective tax rate. Based on the Company's historical losses and its expectation of continuation of losses for the foreseeable future, the Company has determined that it is not more likely than not that deferred tax assets will be realized and, accordingly, has provided a full valuation allowance. As the Company anticipates or anticipated that its net deferred tax assets at December 31, 2012 and 2011 would be fully offset by a valuation allowance, there is no federal or state income tax benefit for the three months ended March 31, 2012 and 2011 related to losses incurred during such periods. </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u>Advertising</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company follows the policy of charging the costs of advertising to expense as incurred. The Company charged to operations $48,486 and $47,179 as advertising costs for the three months ended March 31, 2012 and 2011, respectively.</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"> </p> <p style="MARGIN:0in 0in 0pt"><u>Recent accounting pronouncements</u></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">There were various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company's consolidated financial position, results of operations or cash flows.</p>
<!--egx--><p style="MARGIN:0in 0in 0pt"><b>NOTE 3 - GOING CONCERN MATTERS</b></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company’s consolidated financial statements are prepared using generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has incurred significant recurring losses which have resulted in an accumulated deficit of $731,625 working capital deficiency of $499,042 at March 31, 2012 and negative cash flows from operations of $33,407 for the three months ended March 31, 2012 which raises substantial doubt about the Company’s ability to continue as a going concern.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Continuation as a going concern is dependent upon obtaining additional capital and upon the Company’s attaining profitable operations. The Company will require a substantial amount of additional funds to build a sales and marketing organization, and to fund additional losses which the Company expects to incur over the next few years. The Company recognizes that, if it is unable to raise additional capital, it may find it necessary to substantially reduce or cease operations. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty.</p> <p style="MARGIN:0in 0in 0pt"> </p>
<!--egx--><p style="MARGIN:0in 0in 0pt"><b>NOTE 4 - PROPERTY AND EQUIPMENT</b></p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"> </p> <p style="MARGIN:0in 0in 0pt">The Company’s property and equipment at March 31, 2012 and December 31, 2011 :</p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt"> </p> <table width="100%" style="WIDTH:100%" cellpadding="0" cellspacing="0"> <tr style="PAGE-BREAK-INSIDE:avoid"> <td style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td colspan="2" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center">March 31,</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center">2012</p></td> <td style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td colspan="2" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center">December 31,</p> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center">2011</p></td> <td style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; BACKGROUND-COLOR:transparent; PADDING-LEFT:0in; PADDING-RIGHT:0in; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="76%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:76%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt">Office equipment</p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt">$</p></td> <td width="9%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:9%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">9,229</p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt">$</p></td> <td width="9%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:9%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">9,229</p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:windowtext 1pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="76%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:76%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt">Computer equipment</p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="9%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:9%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">509</p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="9%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:9%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">509</p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="76%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; PADDING-LEFT:0in; WIDTH:76%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt">Leasehold improvements</p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="9%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; PADDING-LEFT:0in; WIDTH:9%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">20,014</p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="9%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:9%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">20,014</p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="76%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:76%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="9%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:9%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">29,752</p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="9%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:9%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">29,752</p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="76%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; PADDING-LEFT:0in; WIDTH:76%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt">Less accumulated depreciation</p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="9%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; PADDING-LEFT:0in; WIDTH:9%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">(23,729</p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt">)</p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="9%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:9%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">(23,242</p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:1.2pt; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:#ccffcc; BORDER-TOP:#f0f0f0; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt">)</p></td></tr> <tr style="PAGE-BREAK-INSIDE:avoid"> <td width="76%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:2.4pt; PADDING-LEFT:0in; WIDTH:76%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:2.4pt; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:2.4pt; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt">$</p></td> <td width="9%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:2.4pt; PADDING-LEFT:0in; WIDTH:9%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">6,023</p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:2.4pt; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:2.4pt; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt">$</p></td> <td width="9%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:0in; PADDING-LEFT:0in; WIDTH:9%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="TEXT-ALIGN:right; MARGIN:0in 0in 0pt" align="right">6,510</p></td> <td width="1%" style="BORDER-BOTTOM:#f0f0f0; BORDER-LEFT:#f0f0f0; PADDING-BOTTOM:2.4pt; PADDING-LEFT:0in; WIDTH:1%; PADDING-RIGHT:0in; BACKGROUND:white; BORDER-TOP:windowtext 1.5pt solid; BORDER-RIGHT:#f0f0f0; PADDING-TOP:0in" valign="bottom"> <p style="MARGIN:0in 0in 0pt"> </p></td></tr></table> <p style="TEXT-ALIGN:center; MARGIN:0in 0in 0pt" align="center"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Depreciation expense charged to operations amounted to approximately $500 and $300, respectively, for the three months ended March 31, 2012 and 2011.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p>
<!--egx--><p style="MARGIN:0in 0in 0pt"><b>NOTE 5– LICENSING RIGHTS</b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">On October 28, 2010, the Company acquired an exclusive product license, which included the right to use the Naltrexone Implant and any procedures related to the licensed product. The Company paid a onetime license fee of 7.5% of the total common shares outstanding on the date of the agreement, or 5,672,250 common shares at the market value of $0.70 per share as of the date of the agreement. Total value of the license is recorded as $3,970,575. Additionally, the Company will pay $600 for each prescription request of the licensed product. The agreement will remain in force for so long as the Company continues to use the Licensed Product. </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">For the purposes of the Asset Purchase Agreement,<i> </i>“Assets” shall mean those assets that are related to the Trademark and the Intellectual Property that are or were used or created by Licensor in its conduct of business, including all assets, rights, interests, and properties of Licensor of whatever nature, tangible or intangible, real or personal, fixed or contingent, except for the Trademark and the Intellectual Property. For all assets received, the Company paid $10.00 in cash. </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">At December 31, 2011 the Company management performed an evaluation of its intangible assets (licensing rights) for purposes of determining the implied fair value of the assets at December 31, 2011. The test indicated that the recorded remaining book value of its licensing rights did not exceed its fair value for the year ended December 31, 2011, as determined by discounted future cash flows. Considerable management judgment is necessary to estimate the fair value. Accordingly, actual results could vary significantly from management’s estimates.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p>
<!--egx--><p style="MARGIN:0in 0in 0pt"><b>NOTE 6– DEFERRED REVENUE</b></p> <p style="MARGIN:0in 0in 0pt"><b> </b></p> <p style="MARGIN:0in 0in 0pt">On January 27, 2012, the Company granted licensing rights for five years in the state of Florida for $300,000 payable as the licensee performs procedures. The licensing fees are amortized to income over the term on the license agreement.</p>
<!--egx--><p style="MARGIN:0in 0in 0pt"><b>NOTE 7– NOTES PAYABLE</b></p> <p style="MARGIN:0in 0in 0pt"><b> </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">On March 5, 2012, the Company issued an aggregate of four unsecured promissory notes payable for $11,325 each (aggregate of $45,300 due June 5, 2012 with a stated interest rate of 20% per annum, with fixed interest of $2,265 due upon maturity. In connection with the issuance of the above described promissory notes, the Company is obligated to issue 100,000 of its common stock per note (total of 400,000). </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company recorded a debt discount of $3,000 per note based on the fair value of the Company's common stock at the issuance date of the promissory notes. The discount is amortized ratably over the term on the notes.</p> <p style="MARGIN:0in 0in 0pt"><b> </b></p>
<!--egx--><p style="MARGIN:0in 0in 0pt"><b>NOTE 8– NOTES PAYABLE-RELATED PARTY</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">As of March 31, 2012 and December 31, 2011, we have received an advance from Jorge Andrade, President, and Neil Muller, director as loans from related parties. The loans are payable on demand and without interest</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p>
<!--egx--><p style="MARGIN:0in 0in 0pt"><b>NOTE 9– STOCKHOLDERS' EQUITY</b></p> <p style="MARGIN:0in 0in 0pt"><b> </b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><u>Common stock</u></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company is authorized to issue 200,000,000 shares of common stock with par value $.001 per share. As of March 31, 2012 and December 31, 2011, the Company had 118,141,938 shares of common stock issued and outstanding.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">On March 19, 2012, the Company entered into an agreement to re-purchase 27,000,000 shares of its common stock from a shareholder for $20,000. The common stock was repurchased and cancelled on May 1, 2012.</p> <p style="MARGIN:0in 0in 0pt"> </p>
<!--egx--><p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt"><b>NOTE 10– RELATED PARTY TRANSACTIONS</b></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company has a consulting agreement with Terranautical Global Investments (“TGI”). TGI is a company controlled by Jorge Andrade that provides consulting services to the Company. There is no formal agreement between the parties and is on a month to month basis. The remuneration ranges between $5,000 and $10,000 per month depending on the services provided. During the three months ended March 31, 2012, TGI was paid $nil as consulting fees. As of March 31, 2012, there was an unpaid balance of $44,725. </p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company has a consulting agreement with Premier Aftercare Recovery Service, (“PARS”). PARS is a Company controlled by Neil Muller that provides consulting services to the Company. There is no formal agreement between the parties and the amount of remuneration depends on the services provided and ranges between $5,000 and $10,000 per month. During the three months ended March 31, 2012, the Company paid $nil as consulting fees. As of March 31, 2012, there was an unpaid balance of $45,418. </p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">West Coast Health Consulting, Inc. is a company controlled by Neil Muller that previously provided consulting services to the Company. During the three months ended March 31, 2012, the Company paid $nil as consulting fees. As of March 31, 2012 </p> <p style="MARGIN:0in 0in 0pt"> </p>
<!--egx--><p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"><b>NOTE 11 - SUBSEQUENT EVENTS</b></p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">The Company has evaluated subsequent events from the balance sheet date through July 2, 2012, the date the financial statements were available to be issued, and has determined that there are no other events to disclose other than the following:</p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt"><u>Notes Payable issued:</u></p> <p style="MARGIN:0in 0in 0pt"> </p> <p style="MARGIN:0in 0in 0pt">Subsequent to March 31, 2012 the Company issued the following promissory notes as follows:</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">Promissory note, $150,000, bearing interest at 20% and repayable on the anniversary date of April 3, 2013 together with 1,000,000 common shares of the Company, secured by accounts receivable of the Company.</p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt"> </p> <p style="TEXT-ALIGN:justify; MARGIN:0in 0in 0pt">During April, 2012, the Company began issuing 15%, 3 year convertible debentures in a private placement. Interest at 15% per annum is to be paid quarterly; however, interest accrued during the first year is deferred. The debentures are convertible into the Company’s common stock at a price of $0.334 per share, or 3 shares for each $1.00 debenture issued. The Company, at its option, can close the offering after raising $4 million. The maximum that can be raised with this private placement is $6 million.</p>
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0001443863
2012-01-01
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2012-07-05
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2012-03-31
0001443863
2011-12-31
0001443863
2011-01-01
2011-03-31
0001443863
2010-12-31
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