0001493152-14-003865.txt : 20141119 0001493152-14-003865.hdr.sgml : 20141119 20141119113114 ACCESSION NUMBER: 0001493152-14-003865 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20140930 FILED AS OF DATE: 20141119 DATE AS OF CHANGE: 20141119 FILER: COMPANY DATA: COMPANY CONFORMED NAME: eWELLNESS HEALTHCARE Corp CENTRAL INDEX KEY: 0001550020 STANDARD INDUSTRIAL CLASSIFICATION: BLANK CHECKS [6770] IRS NUMBER: 451560906 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-55203 FILM NUMBER: 141234117 BUSINESS ADDRESS: STREET 1: 605 WEST KNOX ROAD, SUITE 202 CITY: TEMPE STATE: AZ ZIP: 85284 BUSINESS PHONE: 480-588-3333 MAIL ADDRESS: STREET 1: 605 WEST KNOX ROAD, SUITE 202 CITY: TEMPE STATE: AZ ZIP: 85284 FORMER COMPANY: FORMER CONFORMED NAME: Dignyte, Inc. DATE OF NAME CHANGE: 20120515 10-Q 1 form10q.htm QUARTERLY REPORT

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2014

 

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission file number 000-55203

 

  

eWELLNESS HEALTHCARE CORPORATION

(Exact name of registrant as specified in its charter)

 

Nevada   26-1607874
(State or other jurisdiction of
incorporation or organization)
  (I.R.S. Employer
Identification No.)
     
11825 Major Street, Culver City, California   90230
(Address of principal executive offices)   (Zip Code)

 

(310) 915-9700

(Registrant’s telephone number, including area code)

 

Copies of Communications to:

Rachael Schmierer, Esq.

Hunter Taubman Weiss

130 West 42nd Street, Floor 10

New York, NY 10036

P: 917-512-0828

F: 212-202-6380

 

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X] No [  ]

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [X] No [  ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Ruble 12b-2 of the Exchange Act.

 

Large accelerated filer [  ] Accelerated filer [  ]
   
Non-accelerated filer [  ] (Do not check if a smaller reporting company) Smaller reporting company [X]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [X] No [  ]

 

The number of shares of Common Stock, $0.001 par value, outstanding on November 17, 2014 was 16,421,000 shares.

 

 

 

 
 

 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION  
Item 1. Financial Statements F-1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 3
Item 3. Quantitative and Qualitative Disclosures About Market Risk 6
Item 4. Controls and Procedures 6
     

PART II - OTHER INFORMATION

 
Item 1. Unregistered Sales of Equity Securities and Use of Proceeds 7
Item 2. Exhibits 7
Signatures 8

 

2
 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

eWELLNESS HEALTHCARE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

 

   September 30, 2014   December 31, 2013 
   (unaudited)     
ASSETS          
CURRENT ASSETS          
Cash  $2,474   $- 
Advances - related party   683    - 
Prepaid Expenses   32,491    4,770 
           
Total current assets   35,648    4,770 
           
Property & equipment, net   3,442    4,074 
           
TOTAL ASSETS  $39,090   $8,844 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)          
           
CURRENT LIABILITIES          
Accounts payable and accrued expenses  $154,016   $- 
Accounts payable - related party   52,616    - 
Accrued compensation   219,500    - 
Contingent liability   90,000    - 
Convertible loans payable   130,000    - 
           
Total current liabilities   646,132    - 
           
Total Liabilities   646,132    - 
           
STOCKHOLDERS’ EQUITY (DEFICIT)          
Preferred stock, authorized, 10,000,000 shares, $.001 value, 0 shares issued and outstanding  $-   $- 
Common stock, authorized 350,000,000 shares, $.001 par value, 15,603,000 and 9,000,000 issued and outstanding, respectively   15,603    9,000 
Shares to be issued   58,000    
Additional paid in capital   890,554    561,538 
Accumulated deficit   (1,571,199)   (561,694)
           
Total Stockholders’ Equity (Deficit)   (607,042)   8,844 
           
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $39,090   $8,844 

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

F-1
 

 

eWELLNESS HEALTHCARE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three and Nine Months Ended September 30, 2014 and 2013

(unaudited)

 

   Three Months Ended   Nine Months Ended 
   September 30, 2014   September 30, 2013   September 30, 2014   September 30, 2013 
TOTAL REVENUE  $-   $-   $-   $- 
                     
OPERATING EXPENSES                    
Executive compensation   186,000    169,116    558,000    235,333 
General and administrative   54,849    11,841    164,609    34,520 
Professional fees   13,234    -    187,483    - 
Contingent liability expense   90,000    -    90,000    - 
Research and development - related party   -    902    30    2,706 
                     
Total Operating Expenses   344,083    181,859    1,000,122    272,559 
                     
Net Loss from Operations   (344,083)   (181,859)   (1,000,122)   (272,559)
                     
OTHER INCOME (EXPENSE)                    
Interest income   -    -    7    - 
Interest expense, related parties   (1,011)   -    (1,619)   - 
Interest expense   (7,587)   -    (7,771)   - 
                     
Net Loss before Income Taxes   (352,681)   (181,859)   (1,009,505)   (272,559)
                     
Income tax expense   -    -    -    (50)
                     
Net Loss  $(352,681)  $(181,859)  $(1,009,505)  $(272,609)
                     
Basic and diluted (loss) per share  $(0.02)  $(0.01)  $(0.07)  $(0.03)
                     
Basic and diluted weighted average shares outstanding   15,603,000    9,000,000    15,414,048    9,000,000 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

F-2
 

 

eWELLNESS HEALTHCARE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For Nine Months Ended September 30, 2014 and 2013

(unaudited)

 

   For Nine Months Ended 
   September 30, 2014   September 30, 2013 
Cash flows from operating activities          
Net loss  $(1,009,505)  $(272,609)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization   1,348    - 
Contributed services   292,500    238,833 
Expenses paid by shareholders   -    24,676 
Shares issued for services   41,500    9,000 
Imputed interest - related party   1,619    - 
Changes in operating assets and liabilities          
Advances - related parties   (683)   - 
Prepaid expense   (28,437)   - 
Accounts payable and accrued expenses   154,016    - 
Accounts payable - related party   52,616    100 
Contingent liability   90,000    - 
Accrued compensation   219,500    - 
           
Net cash used in operating activities   (185,526)   - 
           
Cash flows from financing activities          
Proceeds from issuance of common stock   -    - 
Common stock subscribed   58,000    - 
Convertible loan payable   130,000    - 
           
Net cash provided by financing activities   188,000    - 
           
Net increase (decrease) in cash   2,474    - 
           
Cash, beginning of period   -    - 
           
Cash, end of period  $2,474   $- 
           
Supplemental Information:          
Cash paid for:          
Taxes  $-   $50 
Interest Expense  $-   $- 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

F-3
 

 

eWELLNESS HEALTHCARE CORPORATION

Notes to Condensed Consolidated Financial Statements

September 30, 2014

 

Note 1. The Company

 

The Company and Nature of Business

 

eWellness Healthcare Corporation (f/k/a Dignyte, Inc.), (the “Company”, “we”, “us”, “our”) was incorporated in the State of Nevada on April 7, 2011, to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. The Company has generated no revenues to date. Prior to the Share Exchange Agreement discussed below, other than issuing shares to its original shareholder, the Company never commenced any operational activities.

 

Note 2. Summary of Significant Accounting Policies

 

Basis of Presentation

 

The interim financial information of the Company as of periods ended September 30, 2014 and September 30, 2013 is unaudited. The balance sheet as of December 31, 2013 is derived from audited financial statements of eWellness Corporation. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial statements. Accordingly, they omit or condense footnotes and certain other information normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles. The accounting policies followed for quarterly financial reporting conform to the accounting policies disclosed in ASU 2014-10. In the opinion of management, all adjustments which are necessary for a fair presentation of the financial information for the interim periods reported have been made. All such adjustments are of a normal recurring nature. The results of operations for the nine months ended September 30, 2014 are not necessarily indicative of the results that can be expected for the entire year ending December 31, 2014. The unaudited financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2013 and the Form 8-K filed on August 6, 2014.

 

Share Exchange Agreement

 

On April 11, 2014, Digntye, Inc. (“Dignyte”), a publicly held Nevada corporation and eWellness Corporation (“Private Co”), a privately held company incorporated in Nevada, executed a Share Exchange Agreement (or “Initial Exchange Agreement”). Prior to the execution and delivery of the final Amended and Restated Share Exchange Agreement (the “Agreement”), the Board of Directors of Dignyte approved the Agreement and the transactions contemplated thereby. Similarly, the Board of Directors of the Private Co. approved the exchange. On April 25, 2014, immediately prior to the execution and delivery of the Agreement, Dignyte amended its certificate of incorporation to change its corporate name from “Dignyte, Inc.” to “eWellness Healthcare Corporation.”

 

Pursuant to the Agreement, eWellness Healthcare Corporation issued 9,200,000 shares of unregistered common stock, $.001 par value (the “common stock”) to the shareholders of the Private Co. in exchange for all outstanding shares of the Private Co.’s common stock. In addition, our former chief executive officer agreed: (i) to tender 5,000,000 shares of common stock back to the Company for cancellation; (ii) assign from his holdings, an additional 2,500,000 shares to the shareholders of the Private Co. resulting in a total of 11,700,000 shares owned by those shareholders; and, (iii) to a further assignment of an additional 2,100,000 shares to other parties as stated therein (collectively, the “CEO Stock Actions”).

 

F-4
 

 

eWELLNESS HEALTHCARE CORPORATION

Notes to Condensed Consolidated Financial Statements

September 30, 2014

 

As the parties satisfied all of the closing conditions, on April 30, 2014, we closed the Share Exchange. As a result, the Private Co. shareholders own approximately 76.97% of our issued and outstanding common stock, after giving effect to CEO Stock Actions.

 

Following the Share Exchange, we abandoned our prior business plan and we are now pursuing the Private Co.’s historical businesses and proposed businesses. The Private Co. is the surviving company under the share exchange and became a wholly owned subsidiary of the Company.

 

Prior to the Share Exchange Agreement, Dignyte was considered a shell company, as defined in SEC Rule 12b-2. For financial reporting purposes, the Share Exchange represents a “reverse merger” rather than a business combination. Consequently, the transaction is accounted for as a reverse-merger and recapitalization. eWellness Corporation is the acquirer for financial reporting purposes and Dignyte, Inc. is the acquired company. Consequently, the assets and liabilities and the operations that are reflected in the historical financial statements prior to the transactions are those of eWellness Corporation and are recorded at the historical cost basis of eWellness Corporation, and the consolidated financial statements after completion of the transaction include the assets, liabilities and operations of eWellness Healthcare Corporation, and eWellness Corporation from the closing date of the transaction. Additionally all historical equity accounts and awards of eWellness Corporation, including par value per share, share and per share numbers, have been adjusted to reflect the number of shares received in the transaction.

 

Private Co. is in the initial phase of developing a unique telemedicine platform that offers Distance Monitored Physical Therapy Programs (“DMpt”) to pre-diabetic, cardiac and health challenged patients, through contracted physician practices and healthcare systems specifically designed to help prevent patients that are pre-diabetic from becoming diabetic. The Company’s activities are subject to significant risks and uncertainties, including failure to secure funding to operationalize the Company’s business plan.

 

The foregoing description of the Share Exchange Agreement does not purport to be complete and is qualified in its entirety by the Share Exchange Agreement, a copy of which is attached to the Company’s Current Report on Form 8-K/A as filed with the Securities and Exchange Commission on August 6, 2014. At the execution of the Share Exchange Agreement, the total number of shares of common stock outstanding was 15,200,000.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from these good faith estimates and judgments.

 

Going Concern

 

The accompanying financial statements have been presented on the basis that it is a going concern which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the period ended September 30, 2014, the Company has no revenues. As of September 30, 2014, the Company had an accumulated deficit of $1,571,199 and current liabilities of $646,132 (including $90,000 contingently reserved and $130,000 payable to investors as more fully described in Note 8).

 

These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustment that might result from the outcome of this uncertainty. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

F-5
 

 

eWELLNESS HEALTHCARE CORPORATION

Notes to Condensed Consolidated Financial Statements

September 30, 2014

 

The Company will need to obtain additional financings to meet their current obligations (including amounts owed to investors) and to fund future development activities. As result of a Rule 419 violation (see Note 8), these fund raising activities will be very challenging, and perhaps, not possible. Failure to obtain additional financings will have a material, adverse impact on the Company’s operations and financial condition.

 

Deferred Offering and Acquisition Costs

 

The Company defers as other assets the direct incremental costs of raising capital until such time as the offering is completed. At the time of the completion of the offering, the costs will be charged against the capital raised. Should the offering be terminated, the deferred offering costs will be charged to operations during the period in which the offering is terminated. Direct acquisition costs will be expensed as incurred.

 

Fair Value of Financial Instruments

 

The Company complies with the accounting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820-10, Fair Value Measurements, as well as certain related FASB staff positions. This guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact business and considers assumptions that marketplace participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance.

 

The guidance also establishes a fair value hierarchy for measurements of fair value as follows:

 

Level 1 – quoted market prices in active markets for identical assets or liabilities.

 

Level 2 – inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

 

Level 3 – unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

 

As of September 30, 2014 and 2013, the Company did not have Level 1, 2, or 3 financial assets or liabilities.

 

F-6
 

 

eWELLNESS HEALTHCARE CORPORATION

Notes to Condensed Consolidated Financial Statements

September 30, 2014

 

Cash and Cash Equivalents

 

Cash and cash equivalents includes all cash deposits and highly liquid financial instruments with an original maturity to the Company of three months or less.

 

Property and Equipment

 

Property and equipment consists of assets with useful lives longer than one year. Useful lives for assets have been determined to be 5 years for the Company.

 

Revenue Recognition

 

The Company has yet to realize revenues from operations. Once the Company has commenced operations, it will recognize revenues when delivery of goods or completion of services has occurred provided there is persuasive evidence of an agreement, acceptance has been approved by its customers, the fee is fixed or determinable based on the completion of stated terms and conditions, and collection of any related receivable is probable.

 

Research and Development

 

Research and development is primarily related to developing and improving methods related to our distance monitored physical therapy program. Research and development expenses are expensed when incurred. During the nine month periods ended September 30, 2014 and 2013, there were $30 and $2,706 of research and development expenses, respectively, incurred that were paid by a related party.

 

Loss per Common Share

 

The Company follows ASC Topic 260 to account for the loss per share. Basic loss per common share calculations are determined by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted loss per common share calculations are determined by dividing net loss by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation. As the Company has no common stock equivalents and has incurred losses for the period ended September 30, 2014, no dilutive shares are added into the loss per share calculations.

 

Recent Accounting Pronouncements

 

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements presentation.

 

In May 2014, the Financial Accounting Standards Board issued accounting guidance on revenue recognition. The amended guidance will enhance the comparability of revenue recognition practices and will be applied to all contracts with customers. Improved disclosures related to the nature, amount, timing, and uncertainty of revenue that is recognized are requirements under the amended guidance. This guidance will be effective for fiscal 2017 and will be required to be applied retrospectively. We will evaluate the impact of this pronouncement on our financial statements when we commence operations and begin to generate revenue.

 

F-7
 

 

eWELLNESS HEALTHCARE CORPORATION

Notes to Condensed Consolidated Financial Statements

September 30, 2014

 

Note 3. Property and Equipment

 

Property and equipment consists of computer equipment that is stated at cost $4,215 less accumulated depreciation of $773 at September 30, 2014. Depreciation expense was $632 for the period ended September 30, 2014. Depreciation expense is computed using the straight-line method over the estimated useful life of the assets, which is five years for computer equipment.

 

Note 4. Related Party Transactions

 

A company for which the Company’s former Secretary-Treasurer and CFO is also serving as CFO, has paid $57,930 on the Company’s behalf. The amount outstanding as of September 30, 2014 was $52,616. During the period ended September 30, 2014, the Company recorded $1,619 imputed interest on the amount owed to the related party.

 

In June, 2014, the Company entered into a license agreement with a company for whom one of our directors is an officer. The agreement is for a perpetual license to use the programming code created by a video management platform as a base to develop our telemedicine video service. The license fee is $20,000 which is due in installments through September 15, 2014. Intellectual property developed as a result of this license will be our property; but the licensing company will retain the intellectual property for the original code base. We may resell or license the resulting telemedicine platform for an extended license fee of $10,000 for each additional instance the code base will be used. On September 30, 2014, a license agreement amendment was signed wherein the payment of the license fee was extended to December 31, 2014. The licensing fee of $20,000 is being amortized over a ten-year life.

 

Note 5. Income Taxes

 

The tax provision for interim periods is determined using an estimate of the Company’s effective tax rate for the full year adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter the Company updates its estimate of the annual effective tax rate, and if the estimated tax rate changes, the Company makes a cumulative adjustment.

 

At September 30, 2014 and December 31, 2013, the Company has a full valuation allowance against its deferred tax assets, net of expected reversals of existing deferred tax liabilities, as it believes it is more likely than not that these benefits will not be realized.

 

The Company did not identify any material uncertain tax positions of the Company on returns that have been filed or that will be filed. The Company has not had operations and has deferred items consisting entirely of

unused Net Operating Losses.. Since it is not thought that this Net Operating Loss will ever produce a tax benefit, even if examined by taxing authorities and disallowed entirely, there would be no effect on the

financial statements.

 

The Company’s policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits within income tax expense. For the periods ended September 30, 2014, and September 30, 2013 the Company did not recognize nor accrue for any interest or penalties.

 

F-8
 

 

eWELLNESS HEALTHCARE CORPORATION

Notes to Condensed Consolidated Financial Statements

September 30, 2014

 

Note 6. Convertible Notes Payable

 

On March 31, 2014, the Company issued a $30,000 Promissory Note with an interest rate of 12% per annum. Principal and all accrued interest is due and payable on December 31, 2014. The note is automatically converted, upon successful completion of a private placement into the same securities issued in such placement. The conversion rate shall be the price per share realized by investors in the private placement and therefore, the conversion rate and securities to be issued have not yet been determined.

 

On April 22, 2014, the Company issued a $100,000 Promissory Note with an interest rate of 12% per annum. Principal and all accrued interest is due and payable on December 31, 2014. The note is automatically converted, upon successful completion of a private placement into the same securities issued in such placement. The conversion rate shall be the price per share realized by investors in the private placement and therefore, the conversion rate and securities to be issued have not yet been determined.

 

Due to the 419 Violation (See Note 8), the Company will be requesting the Promissory Note holders to reconfirm their investment and initial desire to have such notes converted into the private placement.

 

Note 7. Preferred and Common Stock

 

Preferred Stock

 

The total number of shares of preferred stock which the Company shall have authority to issue is 10,000,000 shares with a par value of $0.001. There have been no preferred shares issued as of September 30, 2014.

 

Common Stock

 

The total number of shares of common stock with the Company shall have authority to issue is 350,000,000 shares with a par value of $0.001. Holders of shares of common stock are entitled to cast one vote for each share held at all stockholders’ meetings for all purposes including the election of directors. The common stock does not have cumulative voting rights. As of the period ended September 30, 2014, the Company has 15,603,000 shares of $0.001 par value common stock issued and outstanding.

 

On May 8, 2014, the Company issued 403,000 shares of common stock to non-employees which vested immediately and recorded $41,500 of consulting services expense. The Company records the stock-based compensation awards issued to non-employees and other external entities for goods and services at either the fair market value of the goods received or services rendered or the instruments issued in exchange for such services, whichever is more readily determinable.

 

On or about July 8, 2014, the Company received $3,000 from an accredited investor for the Company’s pending private placement. The shares have not yet been issued.

 

On or about July 28, 2014, the Company received $25,000 from an accredited investor for the Company’s pending private placement. The shares have not yet been issued.

 

On or about August 15, 2014, the Company received $30,000 from an accredited investor for the Company’s pending private placement. The shares have not yet been issued.

 

The Company is currently conducting an offering of up to $1,200,000 convertible secured notes and may conduct an initial closing upon receipt of $100,000 (the “Minimum Offering Amount”). 

 

F-9
 

  

eWELLNESS HEALTHCARE CORPORATION

Notes to Condensed Consolidated Financial Statements

September 30, 2014

 

Note 8. Commitments, Contingencies

 

The corporate offices of the Company are located at 11825 Major Street, Culver City, California. These facilities are furnished rent free by one of the Company’s shareholders. An imputed rent expense of $500 per month was recorded to the Statements of Operations and recorded as Additional Paid in Capital on the Balance Sheet for the period ended September 30, 2014.

 

In May 2014, the Company signed an Office Service Agreement for office space in New York, New York. A deposit of $8,937 was paid and recorded in prepaid expense. The utilization of the office space began on August 1, 2014.

 

In June 2014, the Company signed a consulting services agreement for the issuance of 168,000 shares of the Company’s common stock; the shares were issued in October, 2014.

 

Prior to the Share Exchange, we were considered a “blank check” company and a “shell” company. The closing of the Initial Exchange Agreement with Private Co. was conditioned upon certain, limited customary representations and warranties, as well as, among other things, our compliance with Rule 419 (“Rule 419) of Regulation C under the Securities Act of 1933, as amended (the “Securities Act”) and the consent of our shareholders as required under Rule 419. Accordingly, we conducted a “Blank Check” offering subject to Rule 419 (the “Rule 419 Offering”) and filed a Registration Statement on Form S-1 to register the shares of such offering; the Registration Statement was declared effective on September 14, 2012. We used 10% of the subscription proceeds as permitted under Rule 419 and the amount remaining in the escrow trust as of the date of the closing of the Share Exchange was $90,000 (the “Trust Account Balance”).

 

However, Rule 419 required that the Share Exchange occur on or before March 18, 2014, but due to normal negotiations regarding the transactions and the parties’ efforts to satisfy all of the closing conditions, the Share Exchange did not close on such date. Accordingly, after numerous discussions with management of both parties, they entered into an Amended and Restated Share Exchange Agreement (the “Share Exchange Agreement”) to reflect a revised business combination structure, pursuant to which we would: (i) file a registration statement on Form 8-A (“Form 8A”) to register our common stock pursuant to Section 12(g) of the Exchange Act, which we did on May 1, 2014 and (ii) seek to convert the participants of the Rule 419 Offering into participants of a similarly termed private offering (the “Converted Offering”), to be conducted pursuant to Regulation D, as promulgated under the Securities Act. We received consent from all of the participants of the Rule 419 Offering to instead direct their funds to be used to purchase shares of the Company’s restricted common stock in the Converted Offering (the “Consent”). We believed this also avoided the further administrative work for the investors of necessitating sending checks back and forth.

 

However, pursuant to Rule 419(e)(2)(iv), “funds held in the escrow or trust account shall be returned by first class mail or equally prompt means to the purchaser within five business days [if the related acquisition transaction does not occur by a date that is 18 months after the effective date of the related registration statement].” As set forth above, rather than physically return the funds, we sought confirmation from the investors of the Rule 419 Offering to instead invest their escrowed funds to into the Converted Offering, unless they informed us that they wanted their funds returned to them. The consent document, which was essentially a form of rescission notice, was given to the investors along with a private placement memorandum describing the Converted Offering and explained that any investor who elected not to participate in the Converted Offering would get 90% of their funds physically returned (pursuant to Rule 419(b)(2)(vi), a blank check company is entitled to use 10% of the proceed/escrowed funds; therefore, if a return of funds is required, only 90% of the proceed/escrowed funds need be returned).

 

F-10
 

 

eWELLNESS HEALTHCARE CORPORATION

Notes to Condensed Consolidated Financial Statements

September 30, 2014

 

By virtue of their specific instructions in the Consent, to direct their portion of the Trust Account Balance to purchase shares in the Converted Offering, we believe took reasonable steps to inform investors of the situation and provided them with an appropriate opportunity to maintain their investment in the Company, if they so chose, or to have their funds physically returned. And therefore, believed we constructively complied with Rule 419, which at the time, we thought was sufficient.

 

Prior to this Report, we have received various comments from the SEC with regard to our disclosure and assessment related to our use of Rule 419. After providing responses and analysis as to why we believe we did not violate Rule 419, based upon latest communications with SEC personnel reviewing same, they do not agree with the Company’s assessments provided prior hereto. Comments and communications indicate that Rule 419 requires a physical return of funds if a 419 offering cannot be completed because a business combination was not consummated within the required time frame; constructive return is not permitted. Additionally, more recent SEC communications question the way in which we carried out the related financing after the Share Exchange was not complete by the required deadline imposed by Rule 419.

 

As a result of these communications and past comments, we think it is necessary to disclose that we did not comply with the requirements of Rule 419, which required us to physically return the funds previously submitted to escrow pursuant to the Rule 419 Offering. As a result of our failure to comply with Rule 419, the SEC may bring an enforcement action or commence litigation against us for failure to strictly comply with Rule 419. If any claims or actions were to be brought against us relating to our lack of compliance with Rule 419, we could be subject to penalties (including criminal penalties), required to pay fines, make damages payments or settlement payments. In addition, any claims or actions will impair our ability to raise additional financings, could force us to expend significant financial resources to defend ourselves, could divert the attention of our management from our core business and could harm our reputation. In light of the uncertainty of this issue and while Management evaluates the best and most appropriate way to resolve same, management determined to create a reserve on the Company’s Balance Sheet for the $90,000 that was subject to the Consent.

 

It is not possible at this time to predict whether or when the SEC may initiate any proceedings, when this issue may be resolved or what, if any, penalties or other remedies may be imposed, and whether any such penalties or remedies would have a material adverse effect on our consolidated financial position, results of operations, or cash flows. Litigation and enforcement actions are inherently unpredictable, the outcome of any potential lawsuit or action is subject to significant uncertainties and, therefore, determining at this time the likelihood of a loss, any SEC enforcement action and/or the measurement of the amount of any loss is complex. Consequently, we are unable to estimate the range of reasonably possible loss. Our assessment is based on an estimate and assumption that has been deemed reasonable by management, but the assessment process relies heavily on an estimate and assumption that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause us to change that estimate and assumption.

  

From time to time the Company may become a party to litigation matters involving claims against the Company. Except as may be contemplated above, management believes that there are no current matters that would have a material effect on the Company’s financial position or results of operations.

 

Note 9. Segment Reporting

 

The Company has one operating segment, which was identified based upon the availability of discrete financial information and the chief operating decision makers’ regular review of financial information.

 

Note 10. Subsequent Events

 

In October 2014, the Company signed an advisory services agreement that provides for the issuance of 450,000 shares of the Company’s common stock. These shares were issued in October.

 

In October, 2014, the Company issued 200,000 shares of the Company’s common stock to one of its directors according to terms of his appointment per the Board of Directors meeting held on June 3, 2014.

 

In October, 2014 the Company issued 168,000 shares of the Company’s common stock to a consulting services firm according to terms of a consulting services agreement signed in June, 2014.

 

F-11
 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

FORWARD-LOOKING STATEMENTS

 

This Quarterly Report on Form 10-Q, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 2 of Part I of this report include forward-looking statements. These forward looking statements are based on our management’s current expectations and beliefs and involve numerous risks and uncertainties that could cause actual results to differ materially from expectations. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “proposed,” “intended,” or “continue” or the negative of these terms or other comparable terminology. You should read statements that contain these words carefully, because they discuss our expectations about our future operating results or our future financial condition or state other “forward-looking” information. Many factors could cause our actual results to differ materially from those projected in these forward-looking statements, including but not limited to: variability of our future revenues and financial performance; risks associated with product development and technological changes; the acceptance of our products in the marketplace by potential future customers; general economic conditions. You should be aware that the occurrence of any of the events described in this Quarterly Report could substantially harm our business, results of operations and financial condition, and that upon the occurrence of any of these events, the trading price of our securities could decline. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, growth rates, levels of activity, performance or achievements. We are under no duty to update any of the forward-looking statements after the date of this Quarterly Report to conform these statements to actual results.

 

The following discussion and analysis of financial condition and results of operations relates to the operations and financial condition reported in the financial statements of eWellness Healthcare Corporation for the three and nine months ended September 30, 2014 and 2013 and should be read in conjunction with such financial statements and related notes included in this report and the Company’s Annual Report on Form 10-K for the year ended December 31, 2013and the Company’s Form 8K/A filed on October 2, 2014.

 

THE COMPANY

 

Business Overview

 

eWellness Healthcare Inc. (f/k/a “Dignyte, Inc.”)(“eWellness” or the “Company”), was incorporated in the State of Nevada on April 7, 2011, to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. The Company has been in the developmental stage since inception and has no operations to date. Other than issuing shares to its original shareholder, the Company never commenced any operational activities.

 

The Company was formed for the purpose of creating a corporation which could be used to consummate a merger or acquisition.

 

As disclosed in the Current Report on Form 8-K that filed on May 6, 2014, as amended on June 25, 2014, as amended on August 6, 2014, as amended on October 2, 2014 we entered into a share exchange agreement pursuant to which we agreed to issue shares of our unregistered common stock to the shareholders of eWellness Corporation, a Nevada corporation (“eWellness”), in exchange for 100% of their then issued and outstanding shares of common stock (the “Share Exchange”), pursuant to which eWellness became our wholly owned subsidiary and the surviving entity.

 

Following the Share Exchange, we abandoned our prior business plan and are now pursuing eWellness’s historical businesses and proposed businesses. eWellness is in the initial phase of developing a unique telemedicine platform that offers Distance Monitored Physical Therapy Programs (“DMpt”) to pre-diabetic, cardiac and health challenged patients, through contracted physician practices and healthcare systems specifically designed to help prevent patients that are pre-diabetic from becoming diabetic. Our historical business and operations will continue independently.

 

3
 

 

As shown in the financial statements accompanying this Quarterly Report, the Company has had no revenues to date and has incurred only losses since its inception. The Company has had no operations and has been issued a “going concern” opinion from our accountants, based upon the Company’s reliance upon the sale of our common stock as the sole source of funds for our future operations.

 

The Company’s operations and corporate offices are located at 11825 Major Street Culver City, CA, 90230, with a telephone number of (310) 915-9700.

 

The Company’s fiscal year end is December 31.

 

Results of Operations for the three and nine months ended September 30, 2014 and September 30, 2013.

 

The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this Quarterly Report.

 

Operating Expenses

 

Operating expenses during the three months ended September 30, 2014 totaled $344,083 compared to $181,859 for the three months ended September 30, 2013. Operating expenses during the nine months ended September 30, 2014 totaled $1,000,122 compared to $272,559 for the nine months ended September 30, 2013. Operating expenses increased primarily as a result of an increase in executive compensation and professional fees.

 

Interest Expense.

 

Interest expense, including interest expense–related parties, was $8,598 and $0 for the three months ended September 30, 2014 and September 30, 2013, respectively. Interest expense, including interest expense-related parties, was $9,390 and $0 for the nine months ended September 30, 2014 and September 30, 2013, respectively. The increase was primarily related to costs of borrowing from unrelated parties.

 

Net Loss

 

Net loss during the three months ended September 30, 2014, totaled $352,681 compared to $181,859 for the three months ended September 30, 2013. Net loss during the nine months ended September 30, 2014, totaled $1,009,505 compared to $272,609 for the nine months ended September 30, 2013. The increase in the net loss is a result of increased operating expenses as discussed above.

 

Liquidity and Capital Resources

 

The Company had $2,474 and $0 cash as of September 30, 2014 and December 31, 2013, respectively.

 

Net cash used in operating activities was $185,526 for the nine months ended September 30, 2014, compared to $0 for the nine months ended September 30, 2013.

 

Net cash provided by financing activities during the nine months ended September 30, 2014, was $188,000 compared to $0 for the nine months ended September 30, 2013.

 

We had not yet earned any revenues as of the period ending September 30, 2014. On April 30, 2014, the Company completed an acquisition. (See Note 2 to the financial statements). Our current cash position is not sufficient to fund our cash requirements during the next twelve months including operations and capital expenditures. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

We had assets at September 30, 2014 of $39,090. We will be reliant upon shareholder loans, private placements or public offerings of equity to fund any kind of operations, although there can be no guarantee we will be able to secure such finding on beneficial terms, if at all. We have secured no sources of loans.

 

4
 

 

Contingencies

 

The Company may be subject to lawsuits, administrative proceedings, regulatory reviews or investigations associated with its business and other matters arising in the normal conduct of its business. The following is a description of an uncertainty that is considered other than ordinary, routine and incidental to the business.

 

The closing of the Initial Exchange Agreement with Private Co. was conditioned upon certain, limited customary representations and warranties, as well as, among other things, our compliance with Rule 419 (“Rule 419) of Regulation C under the Securities Act of 1933, as amended (the “Securities Act”) and the consent of our shareholders as required under Rule 419. Accordingly, we conducted a “Blank Check” offering subject to Rule 419 (the “Rule 419 Offering”) and filed a Registration Statement on Form S-1 to register the shares of such offering; the Registration Statement was declared effective on September 14, 2012. We used 10% of the subscription proceeds as permitted under Rule 419 and the amount remaining in the escrow trust as of the date of the closing of the Share Exchange was $90,000 (the “Trust Account Balance”).

 

Rule 419 required that the Share Exchange occur on or before March 18, 2014, but due to normal negotiations regarding the transactions and the parties’ efforts to satisfy all of the closing conditions, the Share Exchange did not close on such date. Accordingly, after numerous discussions with management of both parties, they entered into an Amended and Restated Share Exchange Agreement (the “Share Exchange Agreement”) to reflect a revised business combination structure, pursuant to which we would: (i) file a registration statement on Form 8-A (“Form 8A”) to register our common stock pursuant to Section 12(g) of the Exchange Act, which we did on May 1, 2014 and (ii) seek to convert the participants of the Rule 419 Offering into participants of a similarly termed private offering (the “Converted Offering”), to be conducted pursuant to Regulation D, as promulgated under the Securities Act.

 

Fifty-two persons participated in the Rule 419 Offering and each of them gave the Company his/her/its consent to use his/her/its escrowed funds to purchase shares of the Company’s restricted common stock in the Converted Offering (the “Consent”) rather than have their funds returned. To avoid further administrative work for the investors, we believe that we took reasonable steps to inform investors of the situation and provided them with an appropriate opportunity to maintain their investment in the Company, if they so choose, or have their funds physically returned. Management believed the steps it took constituted a constructive return of the funds and therefore met the requirements of Rule 419.

 

However, pursuant to Rule 419(e)(2)(iv), “funds held in the escrow or trust account[2] shall be returned by first class mail or equally prompt means to the purchaser within five business days [if the related acquisition transaction does not occur by a date that is 18 months after the effective date of the related registration statement].” As set forth above, rather than physically return the funds, we sought consent from the investors of the Rule 419 Offering to direct their escrowed funds to the Company to instead purchase shares in the Converted Offering. The consent document was given to the investors along with a private placement memorandum describing the Converted Offering and stated that any investor who elected not to participate in the Converted Offering would get 90% of their funds physically returned. (Pursuant to Rule 419(b)(2)(vi), a blank check company is entitled to use 10% of the proceed/escrowed funds; therefore, if a return of funds is required, only 90% of the proceed/escrowed funds need be returned.)

 

As disclosed in the prior amendments to the Initial Form 8-K, we have filed the prior amendments in response to comments from the SEC regarding the Form 8-K and many of those comments pertain to the Company’s potential violation of Rule 419. Although the Company has continued to provide the SEC with information and analysis as to why it believes it did not violate Rule 419, based upon latest communications with the persons reviewing the Form 8-K, they do not agree with the assessments the Company presented to them. Comments and communications indicate that Rule 419 requires a physical return of funds if a 419 offering cannot be completed because a business combination was not consummated within the required time frame; constructive return is not permitted.

 

5
 

 

As a result of these communications and past comments, we are disclosing that we did not comply with the requirements of Rule 419, which required us to physically return the funds previously submitted to escrow pursuant to the Rule 419 Offering. As a result of our failure to comply with Rule 419, the SEC may bring an enforcement action or commence litigation against us for failure to strictly comply with Rule 419. If any claims or actions were to be brought against us relating to our lack of compliance with Rule 419, we could be subject to penalties (including criminal penalties), required to pay fines, make damages payments or settlement payments. In addition, any claims or actions could force us to expend significant financial resources to defend ourselves, could divert the attention of our management from our core business and could harm our reputation.

 

It is not possible at this time to predict whether or when the SEC may initiate any proceedings, when this issue may be resolved or what, if any, penalties or other remedies may be imposed, and whether any such penalties or remedies would have a material adverse effect on our consolidated financial position, results of operations, or cash flows. Litigation and enforcement actions are inherently unpredictable, the outcome of any potential lawsuit or action is subject to significant uncertainties and, therefore, determining at this time the likelihood of a loss, any SEC enforcement action and/or the measurement of the amount of any loss is complex. Consequently, we are unable to estimate the range of reasonably possible loss. Our assessment is based on an estimate and assumption that has been deemed reasonable by management, but the assessment process relies heavily on an estimate and assumption that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause us to change that estimate and assumption. In light of the uncertainty of this issue and while Management evaluates the best and most appropriate way to resolve same, management determined to create a reserve on the Company’s Balance Sheet for the $90,000 that was subject to the Consent.

 

Off-Balance Sheet Arrangements

 

There are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

As a “smaller reporting company”, we are not required to provide the information under Item 3.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures as defined in Rule 13a-15(e) under the Exchange Act as of the end of the period covered by this Quarterly Report on Form 10-Q. In designing and evaluating the disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

 

Based on that evaluation, our chief executive officer and chief financial officer concluded that, as of September 30, 2014, our disclosure controls and procedures were not effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules, regulations and forms, and (ii) that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

 

Changes in Internal Controls Over Financial Reporting

 

There were no changes in the Company’s internal controls over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

6
 

 

PART II - OTHER INFORMATION

 

ITEM 1. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

Information on any and all equity securities we have sold during the period covered by this Report that were not registered under the Securities Act of 1933, as amended and not included in a previously filed Current Report on Form 8-K is set forth below.

 

On May 8, 2014, the Company issued 403,000 shares of common stock to non-employees which vested immediately and recorded $41,500 of consulting services expense. The Company records the stock-based compensation awards issued to non-employees and other external entities for goods and services at either the fair market value of the goods received or services rendered or the instruments issued in exchange for such services, whichever is more readily determinable.

 

In June, 2014, the Company signed a consulting services agreement for the issuance of 168,000 shares of common stock of the Company at the price of the next financing.

 

In June, 2014, the Company appointed an additional member to the Board of Directors. This new member is to be issued 200,000 shares of common stock.

 

All of the transactions listed above were made pursuant to the exemption from the registration provisions of the Securities Act of 1933, as amended, provided by Section 4(2) of the Securities Act or Rule 506(b) of Regulation D promulgated thereunder, for sales not involving a public offering. The securities issued have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

 

ITEM 2. EXHIBITS

 

Exhibit No.   Description
10.1  

License Agreement with Bistromatics, Inc. dated June 23, 2014 (Incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K that was filed on June 25, 2014)

     
10.2  

Addendum to License Agreement with Bistromatics, Inc. dated September 30, 2014*

 

31.1   Rule 13a-14(a)/15d-14(a) Principal Executive Officer Certification*
     
31.2   Rule 13a-14(a)/15d-14(a) Principal Financial and Accounting Officer Certification*
     
32.1   Certifications under Section 906 of the Sarbanes-Oxley Act (18 U.S.C. Section 1350)*
     
32.2   Certification under Section 906 of the Sarbanes-Oxley Act (18 U.S.C. Section 1350)*
     
101.INS   XBRL INSTANCE DOCUMENT **
     
101.SCH   XBRL TAXONOMY EXTENSION SCHEMA **
     
101.CAL   XBRL TAXONOMY EXTENSION CALCULATION LINKBASE **
     
101.DEF   XBRL TAXONOMY EXTENSION DEFINITION LINKBASE **
     
101.LAB   XBRL TAXONOMY EXTENSION LABEL LINKBASE **
     
101.PRE   XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE **

 

*   Filed herewith.
**   In accordance with Regulation S-T, the XBRL-formatted interactive data files that comprise Exhibit 101 in this Quarterly Report on Form 10-Q shall be deemed “furnished” and not “filed”.

 

7
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  eWellness Healthcare Corporation
     
Date: November 19, 2014 By: /s/ Darwin Fogt
    Darwin Fogt
Director and Chief Executive Officer
(Principal Executive Officer)
     
Date: November 19, 2014 By: /s/ David Markowski
    David Markowski, Chief Financial Officer
(Principal Financial and Accounting Officer)

 

8
 

 

EX-10.2 2 ex10-2.htm EXHIBIT 10.2

 

eWELLNESS HEALTHCARE CORPORATION AND BISTROMATICS INC LICENSING AGREEMENT ADDENDUM

 

This Addendum (this “Addendum”) is made and entered into effective as of September 30, 2014 (the “Effective Date”) by and between:

 

A. eWellness Healthcare Corporation (“EWC”), a Company organized under the laws of the State of Nevada, principal place of business located at 11825 Major Street, Culver City, California 90230 89074-7722 USA and

 

B. Bistromatics, Inc., (“BI”), a Canadian corporation having an address at 8 York Street Second Floor, Ottawa, ON K1S 5SS8 Canada.

 

Each may be referred to herein as a “Party” or, collectively, the “Parties.”

 

The Parties to the June 23, 2014 Agreement hereby agree to extend the $20,000 licensing fee payment by EWC to BI until December 31, 2014.

 

1.1Entire Agreement. This Addendum, including all exhibits to the June 23, 2014 Agreement, which are hereby incorporated by reference, represents the entire agreement between the parties relating to its subject matter and supersedes all prior representations, discussions, negotiations and agreements, whether written or oral.
   
1.2Authority to Execute; Counterparts. Each of the undersigned represents and warrants that he/she has the right, legal capacity and authority to enter into this Agreement and that the execution of this Agreement has been authorized by the party on whose behalf the undersigned is executing this Agreement. This Addendum may be signed in counterparts which taken together shall constitute one document.

 

Bistromatics, Inc.   eWellness Healthcare Corporation
         
By: /s/ Curtis Hollister   By:
  Curtis Hollister, CMO     Douglas MacLellan, Chairman & Secretary

 

 
 

 

EX-31.1 3 ex31-1.htm EXHIBIT 31.1

 

EXHIBIT 31.1

 

Exhibit 31.1 Certification of the Chief Executive Officer of eWellness Healthcare Corporation., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

I, Darwin Fogt, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014 of eWellness Healthcare Corporation (the “registrant”);

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15-d-15(f)) for the registrant and have:

 

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the Audit Committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 19, 2014  
   
/s/ Darwin Fogt  
Darwin Fogt,
Chief Executive Officer (Principal Executive Officer)

 

 
 

 

EX-31.2 4 ex31-2.htm EXHIBIT 31.2

 

EXHIBIT 31.2

 

Exhibit 31.2 Certification of the Chief Financial Officer of eWellness Healthcare Corporation, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

 

I, David Markowski, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014 of eWellness Healthcare Corporation (the “registrant”);

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15-d-15(f)) for the registrant and have:

 

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the Audit Committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 19, 2014  
   
/s/ David Markowski  
David Markowski, Chief Financial Officer
(Principal Financial and Accounting Officer)

 

 
 

 

EX-32.1 5 ex32-1.htm EXHIBIT 32.1

 

EXHIBIT 32.1

 

Exhibit 32.1 Certification of the Chief Executive Officer of eWellness Healthcare Corporation pursuant to Section 906 of the Sarbanes Oxley Act of 2002

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report on Form 10-Q of eWellness Healthcare Corporation (the “Company”) for the quarterly period ended September 30, 2014 as filed with the Securities and Exchange Commission (the “Report”), the undersigned Darwin Fogt, Chief Executive Officer of the Company certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

 

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

  eWellness Healthcare Corporation.
     
Date: November 19, 2014 By: /s/ Darwin Fogt
    Darwin Fogt, Director and Chief Executive Officer (Principal Executive Officer)

 

This certification accompanies this Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

 

 
 

 

EX-32.2 6 ex32-2.htm EXHIBIT 32.2

 

EXHIBIT 32.2

 

Exhibit 32.2 Certification of the Chief Financial Officer of eWellness Healthcare Corporation pursuant to Section 906 of the Sarbanes Oxley Act of 2002

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report on Form 10-Q of eWellness Healthcare Corporation (the “Company”) for the quarterly period ended September 30, 2014 as filed with the Securities and Exchange Commission (the “Report”), the undersigned David Markowski, Chief Financial Officer of the Company, certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

 

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

  eWellness Healthcare Corporation
   
Date: November 19, 2014 /s/ David Markowski
  David Markowski, Chief Financial Officer
(Principal Financial and Accounting Officer)

 

This certification accompanies this Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

 

 
 

 

 

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Accordingly, they omit or condense footnotes and certain other information normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles. The accounting policies followed for quarterly financial reporting conform to the accounting policies disclosed in ASU 2014-10. In the opinion of management, all adjustments which are necessary for a fair presentation of the financial information for the interim periods reported have been made. All such adjustments are of a normal recurring nature. The results of operations for the nine months ended September 30, 2014 are not necessarily indicative of the results that can be expected for the entire year ending December 31, 2014. 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Prior to the execution and delivery of the final Amended and Restated Share Exchange Agreement (the &#147;Agreement&#148;), the Board of Directors of Dignyte approved the Agreement and the transactions contemplated thereby. Similarly, the Board of Directors of the Private Co. approved the exchange. On April 25, 2014, immediately prior to the execution and delivery of the Agreement, Dignyte amended its certificate of incorporation to change its corporate name from &#147;Dignyte, Inc.&#148; to &#147;eWellness Healthcare Corporation.&#148;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">Pursuant to the Agreement, eWellness Healthcare Corporation issued 9,200,000 shares of unregistered common stock, $.001 par value (the &#147;common stock&#148;) to the shareholders of the Private Co. in exchange for all outstanding shares of the Private Co.&#146;s common stock. In addition, our former chief executive officer agreed: (i) to tender 5,000,000 shares of common stock back to the Company for cancellation; (ii) assign from his holdings, an additional 2,500,000 shares to the shareholders of the Private Co. resulting in a total of 11,700,000 shares owned by those shareholders; and, (iii) to a further assignment of an additional 2,100,000 shares to other parties as stated therein (collectively, the &#147;CEO Stock Actions&#148;).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in; background-color: white">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As the parties satisfied all of the closing conditions, on April 30, 2014, we closed the Share Exchange. 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Related Party Transactions
9 Months Ended
Sep. 30, 2014
Related Party Transactions [Abstract]  
Related Party Transactions

Note 4. Related Party Transactions

 

A company for which the Company’s former Secretary-Treasurer and CFO is also serving as CFO, has paid $57,930 on the Company’s behalf. The amount outstanding as of September 30, 2014 was $52,616. During the period ended September 30, 2014, the Company recorded $1,619 imputed interest on the amount owed to the related party.

 

In June, 2014, the Company entered into a license agreement with a company for whom one of our directors is an officer. The agreement is for a perpetual license to use the programming code created by a video management platform as a base to develop our telemedicine video service. The license fee is $20,000 which is due in installments through September 15, 2014. Intellectual property developed as a result of this license will be our property; but the licensing company will retain the intellectual property for the original code base. We may resell or license the resulting telemedicine platform for an extended license fee of $10,000 for each additional instance the code base will be used. On September 30, 2014, a license agreement amendment was signed wherein the payment of the license fee was extended to December 31, 2014. The licensing fee of $20,000 is being amortized over a ten-year life.

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M960M<')I;G1A8FQE#0I#;VYT96YT+51Y<&4Z('1E>'0O:'1M;#L@8VAA&UL;G,Z;STS1")U'1087)T7S0P-35A.&)A7S8V9CA?-#1C-%]B8F1A7S XML 19 R8.htm IDEA: XBRL DOCUMENT v2.4.0.8
Property and Equipment
9 Months Ended
Sep. 30, 2014
Property, Plant and Equipment [Abstract]  
Property and Equipment

Note 3. Property and Equipment

 

Property and equipment consists of computer equipment that is stated at cost $4,215 less accumulated depreciation of $773 at September 30, 2014. Depreciation expense was $632 for the period ended September 30, 2014. Depreciation expense is computed using the straight-line method over the estimated useful life of the assets, which is five years for computer equipment.

XML 20 R2.htm IDEA: XBRL DOCUMENT v2.4.0.8
Condensed Consolidated Balance Sheets (USD $)
Sep. 30, 2014
Dec. 31, 2013
CURRENT ASSETS    
Cash $ 2,474   
Advances - related party 683   
Prepaid Expenses 32,491 4,770
Total current assets 35,648 4,770
Property & equipment, net 3,442 4,074
TOTAL ASSETS 39,090 8,844
CURRENT LIABILITIES    
Accounts payable and accrued expenses 154,016   
Accounts payable - related party 52,616   
Accrued compensation 219,500   
Contingent liability 90,000   
Convertible loans payable 130,000   
Total current liabilities 646,132   
Total Liabilities 646,132   
STOCKHOLDERS' EQUITY (DEFICIT)    
Preferred stock, authorized, 10,000,000 shares, $.001 value, 0 shares issued and outstanding      
Common stock, authorized 350,000,000 shares, $.001 par value, 15,603,000 and 9,000,000 issued and outstanding, respectively 15,603 9,000
Shares to be issued 58,000   
Additional Paid in Capital 890,554 561,538
Accumulated deficit (1,571,199) (561,694)
Total Stockholder's Equity (Deficit) (607,042) 8,844
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 39,090 $ 8,844
XML 21 R6.htm IDEA: XBRL DOCUMENT v2.4.0.8
The Company
9 Months Ended
Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
The Company

Note 1. The Company

 

The Company and Nature of Business

 

eWellness Healthcare Corporation (f/k/a Dignyte, Inc.), (the “Company”, “we”, “us”, “our”) was incorporated in the State of Nevada on April 7, 2011, to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. The Company has generated no revenues to date. Prior to the Share Exchange Agreement discussed below, other than issuing shares to its original shareholder, the Company never commenced any operational activities.

XML 22 R22.htm IDEA: XBRL DOCUMENT v2.4.0.8
Commitments, Contingencies (Details Narrative) (USD $)
0 Months Ended 1 Months Ended 9 Months Ended
May 08, 2014
Jun. 30, 2014
Sep. 30, 2014
Dec. 31, 2013
Rent expense     $ 500  
Deposit for office space     8,937  
Shares issued under consulting services agreement 403,000 168,000    
Percentage of subscription proceeds     10.00%  
Percentage of returned funds     90.00%  
Percentage of funds proceed     10.00%  
Percentage of required funds     90.00%  
Contingent liability     90,000   
Escrow Trust [Member]
       
Trust account balance     $ 90,000  
XML 23 R24.htm IDEA: XBRL DOCUMENT v2.4.0.8
Subsequent Events (Details Narrative)
0 Months Ended 1 Months Ended
May 08, 2014
Jun. 30, 2014
Oct. 31, 2014
Subsequent Event [Member]
Oct. 31, 2014
Subsequent Event [Member]
Advisory Services Agreement [Member]
Oct. 31, 2014
Subsequent Event [Member]
Consulting Services Agreement [Member]
Stock issued to directors     200,000    
Stock issued to consulting services 403,000 168,000   450,000 168,000
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    Summary of Significant Accounting Policies
    9 Months Ended
    Sep. 30, 2014
    Accounting Policies [Abstract]  
    Summary of Significant Accounting Policies

    Note 2. Summary of Significant Accounting Policies

     

    Basis of Presentation

     

    The interim financial information of the Company as of periods ended September 30, 2014 and September 30, 2013 is unaudited. The balance sheet as of December 31, 2013 is derived from audited financial statements of eWellness Corporation. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial statements. Accordingly, they omit or condense footnotes and certain other information normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles. The accounting policies followed for quarterly financial reporting conform to the accounting policies disclosed in ASU 2014-10. In the opinion of management, all adjustments which are necessary for a fair presentation of the financial information for the interim periods reported have been made. All such adjustments are of a normal recurring nature. The results of operations for the nine months ended September 30, 2014 are not necessarily indicative of the results that can be expected for the entire year ending December 31, 2014. The unaudited financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2013 and the Form 8-K filed on August 6, 2014.

     

    Share Exchange Agreement

     

    On April 11, 2014, Digntye, Inc. (“Dignyte”), a publicly held Nevada corporation and eWellness Corporation (“Private Co”), a privately held company incorporated in Nevada, executed a Share Exchange Agreement (or “Initial Exchange Agreement”). Prior to the execution and delivery of the final Amended and Restated Share Exchange Agreement (the “Agreement”), the Board of Directors of Dignyte approved the Agreement and the transactions contemplated thereby. Similarly, the Board of Directors of the Private Co. approved the exchange. On April 25, 2014, immediately prior to the execution and delivery of the Agreement, Dignyte amended its certificate of incorporation to change its corporate name from “Dignyte, Inc.” to “eWellness Healthcare Corporation.”

     

    Pursuant to the Agreement, eWellness Healthcare Corporation issued 9,200,000 shares of unregistered common stock, $.001 par value (the “common stock”) to the shareholders of the Private Co. in exchange for all outstanding shares of the Private Co.’s common stock. In addition, our former chief executive officer agreed: (i) to tender 5,000,000 shares of common stock back to the Company for cancellation; (ii) assign from his holdings, an additional 2,500,000 shares to the shareholders of the Private Co. resulting in a total of 11,700,000 shares owned by those shareholders; and, (iii) to a further assignment of an additional 2,100,000 shares to other parties as stated therein (collectively, the “CEO Stock Actions”).

     

    As the parties satisfied all of the closing conditions, on April 30, 2014, we closed the Share Exchange. As a result, the Private Co. shareholders own approximately 76.97% of our issued and outstanding common stock, after giving effect to CEO Stock Actions.

     

    Following the Share Exchange, we abandoned our prior business plan and we are now pursuing the Private Co.’s historical businesses and proposed businesses. The Private Co. is the surviving company under the share exchange and became a wholly owned subsidiary of the Company.

     

    Prior to the Share Exchange Agreement, Dignyte was considered a shell company, as defined in SEC Rule 12b-2. For financial reporting purposes, the Share Exchange represents a “reverse merger” rather than a business combination. Consequently, the transaction is accounted for as a reverse-merger and recapitalization. eWellness Corporation is the acquirer for financial reporting purposes and Dignyte, Inc. is the acquired company. Consequently, the assets and liabilities and the operations that are reflected in the historical financial statements prior to the transactions are those of eWellness Corporation and are recorded at the historical cost basis of eWellness Corporation, and the consolidated financial statements after completion of the transaction include the assets, liabilities and operations of eWellness Healthcare Corporation, and eWellness Corporation from the closing date of the transaction. Additionally all historical equity accounts and awards of eWellness Corporation, including par value per share, share and per share numbers, have been adjusted to reflect the number of shares received in the transaction.

     

    Private Co. is in the initial phase of developing a unique telemedicine platform that offers Distance Monitored Physical Therapy Programs (“DMpt”) to pre-diabetic, cardiac and health challenged patients, through contracted physician practices and healthcare systems specifically designed to help prevent patients that are pre-diabetic from becoming diabetic. The Company’s activities are subject to significant risks and uncertainties, including failure to secure funding to operationalize the Company’s business plan.

     

    The foregoing description of the Share Exchange Agreement does not purport to be complete and is qualified in its entirety by the Share Exchange Agreement, a copy of which is attached to the Company’s Current Report on Form 8-K/A as filed with the Securities and Exchange Commission on August 6, 2014. At the execution of the Share Exchange Agreement, the total number of shares of common stock outstanding was 15,200,000.

     

    Use of Estimates

     

    The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from these good faith estimates and judgments.

     

    Going Concern

     

    The accompanying financial statements have been presented on the basis that it is a going concern which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the period ended September 30, 2014, the Company has no revenues. As of September 30, 2014, the Company had an accumulated deficit of $1,571,199 and current liabilities of $646,132 (including $90,000 contingently reserved and $130,000 payable to investors as more fully described in Note 8).

     

    These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustment that might result from the outcome of this uncertainty. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

     

    The Company will need to obtain additional financings to meet their current obligations (including amounts owed to investors) and to fund future development activities. As result of a Rule 419 violation (see Note 8), these fund raising activities will be very challenging, and perhaps, not possible. Failure to obtain additional financings will have a material, adverse impact on the Company’s operations and financial condition.

     

    Deferred Offering and Acquisition Costs

     

    The Company defers as other assets the direct incremental costs of raising capital until such time as the offering is completed. At the time of the completion of the offering, the costs will be charged against the capital raised. Should the offering be terminated, the deferred offering costs will be charged to operations during the period in which the offering is terminated. Direct acquisition costs will be expensed as incurred.

     

    Fair Value of Financial Instruments

     

    The Company complies with the accounting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820-10, Fair Value Measurements, as well as certain related FASB staff positions. This guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact business and considers assumptions that marketplace participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance.

     

    The guidance also establishes a fair value hierarchy for measurements of fair value as follows:

     

    Level 1 – quoted market prices in active markets for identical assets or liabilities.

     

    Level 2 – inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

     

    Level 3 – unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

     

    As of September 30, 2014 and 2013, the Company did not have Level 1, 2, or 3 financial assets or liabilities.

     

    Cash and Cash Equivalents

     

    Cash and cash equivalents includes all cash deposits and highly liquid financial instruments with an original maturity to the Company of three months or less.

     

    Property and Equipment

     

    Property and equipment consists of assets with useful lives longer than one year. Useful lives for assets have been determined to be 5 years for the Company.

     

    Revenue Recognition

     

    The Company has yet to realize revenues from operations. Once the Company has commenced operations, it will recognize revenues when delivery of goods or completion of services has occurred provided there is persuasive evidence of an agreement, acceptance has been approved by its customers, the fee is fixed or determinable based on the completion of stated terms and conditions, and collection of any related receivable is probable.

     

    Research and Development

     

    Research and development is primarily related to developing and improving methods related to our distance monitored physical therapy program. Research and development expenses are expensed when incurred. During the nine month periods ended September 30, 2014 and 2013, there were $30 and $2,706 of research and development expenses, respectively, incurred that were paid by a related party.

     

    Loss per Common Share

     

    The Company follows ASC Topic 260 to account for the loss per share. Basic loss per common share calculations are determined by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted loss per common share calculations are determined by dividing net loss by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation. As the Company has no common stock equivalents and has incurred losses for the period ended September 30, 2014, no dilutive shares are added into the loss per share calculations.

     

    Recent Accounting Pronouncements

     

    From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements presentation.

     

    In May 2014, the Financial Accounting Standards Board issued accounting guidance on revenue recognition. The amended guidance will enhance the comparability of revenue recognition practices and will be applied to all contracts with customers. Improved disclosures related to the nature, amount, timing, and uncertainty of revenue that is recognized are requirements under the amended guidance. This guidance will be effective for fiscal 2017 and will be required to be applied retrospectively. We will evaluate the impact of this pronouncement on our financial statements when we commence operations and begin to generate revenue.

    XML 27 R3.htm IDEA: XBRL DOCUMENT v2.4.0.8
    Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
    Sep. 30, 2014
    Dec. 31, 2013
    Statement of Financial Position [Abstract]    
    Preferred stock, shares authorized 10,000,000 10,000,000
    Preferred stock, par value $ 0.001 $ 0.001
    Preferred stock, shares issued 0 0
    Preferred stock, shares outstanding 0 0
    Common stock, shares authorized 350,000,000 350,000,000
    Common stock, par value $ 0.001 $ 0.001
    Common stock, shares issued 15,603,000 9,000,000
    Common stock, shares outstanding 15,603,000 9,000,000
    XML 28 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
    Summary of Significant Accounting Policies (Details Narrative) (USD $)
    0 Months Ended 3 Months Ended 9 Months Ended
    Apr. 30, 2014
    Apr. 11, 2014
    Sep. 30, 2014
    Sep. 30, 2013
    Sep. 30, 2014
    Sep. 30, 2013
    Dec. 31, 2013
    Aug. 06, 2014
    Subsequent Event [Member]
    Unregistered common stock issued   9,200,000            
    Number of common stock returned to company by the officer   5,000,000            
    Number of shares assigned to shareholders from the holdings of officer   2,500,000            
    Number of shares owned by the shareholders, total   11,700,000            
    Additional number of common shares assigned to other parties   2,100,000            
    Common stock, par value   $ 0.001 $ 0.001   $ 0.001   $ 0.001  
    Percentage of issued and outstanding common stock own by shareholders of subsidiary 76.97%              
    Common stock, shares outstanding     15,603,000   15,603,000   9,000,000 15,200,000
    Accumulated deficit     $ (1,571,199)   $ (1,571,199)   $ (561,694)  
    Current liabilities     646,132   646,132       
    Contingently reserved     90,000   90,000       
    Payable to investors         130,000      
    Property and Equipment, useful lives         5 years      
    Research and development expenses        $ 902 $ 30 $ 2,706    
    Dilutive shares added in loss per share calculations         0      
    XML 29 R1.htm IDEA: XBRL DOCUMENT v2.4.0.8
    Document and Entity Information
    9 Months Ended
    Sep. 30, 2014
    Nov. 17, 2014
    Document And Entity Information    
    Entity Registrant Name eWELLNESS HEALTHCARE Corp  
    Entity Central Index Key 0001550020  
    Document Type 10-Q  
    Document Period End Date Sep. 30, 2014  
    Amendment Flag false  
    Current Fiscal Year End Date --12-31  
    Entity Filer Category Smaller Reporting Company  
    Entity Common Stock, Shares Outstanding   16,421,000
    Document Fiscal Period Focus Q3  
    Document Fiscal Year Focus 2014  
    XML 30 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
    Property and Equipment (Details Narrative) (USD $)
    9 Months Ended
    Sep. 30, 2014
    Property, Plant and Equipment [Abstract]  
    Property and equipment $ 4,215
    Accumulated depreciation 773
    Depreciation expense $ 632
    Computer equipment, estimated useful life 5 years
    XML 31 R4.htm IDEA: XBRL DOCUMENT v2.4.0.8
    Condensed Consolidated Statements of Operations (Unaudited) (USD $)
    3 Months Ended 9 Months Ended
    Sep. 30, 2014
    Sep. 30, 2013
    Sep. 30, 2014
    Sep. 30, 2013
    Income Statement [Abstract]        
    TOTAL REVENUE            
    OPERATING EXPENSES        
    Executive compensation 186,000 169,116 558,000 235,333
    General and administrative 54,849 11,841 164,609 34,520
    Professional fees 13,234    187,483   
    Contingent liability expense 90,000    90,000   
    Research and development - related party    902 30 2,706
    Total Operating Expenses 344,083 181,859 1,000,122 272,559
    Net Loss from Operations (344,083) (181,859) (1,000,122) (272,559)
    OTHER INCOME (EXPENSE)        
    Interest income       7   
    Interest expense, related parties (1,011)    (1,619)   
    Interest expense (7,587)    (7,771)   
    Net Loss before Income Taxes (352,681) (181,859) (1,009,505) (272,559)
    Income tax expense          (50)
    Net Loss $ (352,681) $ (181,859) $ (1,009,505) $ (272,609)
    Basic and diluted (loss) per share $ (0.02) $ (0.01) $ (0.07) $ (0.03)
    Basic and diluted weighted average shares outstanding 15,603,000 9,000,000 15,414,048 9,000,000
    XML 32 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
    Preferred and Common Stock
    9 Months Ended
    Sep. 30, 2014
    Equity [Abstract]  
    Preferred and Common Stock

    Note 7. Preferred and Common Stock

     

    Preferred Stock

     

    The total number of shares of preferred stock which the Company shall have authority to issue is 10,000,000 shares with a par value of $0.001. There have been no preferred shares issued as of September 30, 2014.

     

    Common Stock

     

    The total number of shares of common stock with the Company shall have authority to issue is 350,000,000 shares with a par value of $0.001. Holders of shares of common stock are entitled to cast one vote for each share held at all stockholders’ meetings for all purposes including the election of directors. The common stock does not have cumulative voting rights. As of the period ended September 30, 2014, the Company has 15,603,000 shares of $0.001 par value common stock issued and outstanding.

     

    On May 8, 2014, the Company issued 403,000 shares of common stock to non-employees which vested immediately and recorded $41,500 of consulting services expense. The Company records the stock-based compensation awards issued to non-employees and other external entities for goods and services at either the fair market value of the goods received or services rendered or the instruments issued in exchange for such services, whichever is more readily determinable.

     

    On or about July 8, 2014, the Company received $3,000 from an accredited investor for the Company’s pending private placement. The shares have not yet been issued.

     

    On or about July 28, 2014, the Company received $25,000 from an accredited investor for the Company’s pending private placement. The shares have not yet been issued.

     

    On or about August 15, 2014, the Company received $30,000 from an accredited investor for the Company’s pending private placement. The shares have not yet been issued.

     

    The Company is currently conducting an offering of up to $1,200,000 convertible secured notes and may conduct an initial closing upon receipt of $100,000 (the “Minimum Offering Amount”). 

    XML 33 R11.htm IDEA: XBRL DOCUMENT v2.4.0.8
    Convertible Notes Payable
    9 Months Ended
    Sep. 30, 2014
    Debt Disclosure [Abstract]  
    Convertible Notes Payable

    Note 6. Convertible Notes Payable

     

    On March 31, 2014, the Company issued a $30,000 Promissory Note with an interest rate of 12% per annum. Principal and all accrued interest is due and payable on December 31, 2014. The note is automatically converted, upon successful completion of a private placement into the same securities issued in such placement. The conversion rate shall be the price per share realized by investors in the private placement and therefore, the conversion rate and securities to be issued have not yet been determined.

     

    On April 22, 2014, the Company issued a $100,000 Promissory Note with an interest rate of 12% per annum. Principal and all accrued interest is due and payable on December 31, 2014. The note is automatically converted, upon successful completion of a private placement into the same securities issued in such placement. The conversion rate shall be the price per share realized by investors in the private placement and therefore, the conversion rate and securities to be issued have not yet been determined.

     

    Due to the 419 Violation (See Note 8), the Company will be requesting the Promissory Note holders to reconfirm their investment and initial desire to have such notes converted into the private placement.

    XML 34 R23.htm IDEA: XBRL DOCUMENT v2.4.0.8
    Segment Reporting (Details Narrative)
    9 Months Ended
    Sep. 30, 2014
    Integer
    Segment Reporting [Abstract]  
    Number of operating segments 1
    XML 35 R19.htm IDEA: XBRL DOCUMENT v2.4.0.8
    Related Party Transactions (Details Narrative) (USD $)
    1 Months Ended 9 Months Ended
    Sep. 30, 2014
    Sep. 30, 2014
    Sep. 30, 2013
    Dec. 31, 2013
    Accounts Payable-Related Party $ 52,616 $ 52,616     
    Imputed Interest - related party   (1,619)     
    License fee 20,000      
    Extended license fee 10,000      
    Chief Financial Officer [Member]
           
    Amount paid by related parties $ 57,930 $ 57,930    
    XML 36 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
    Subsequent Events
    9 Months Ended
    Sep. 30, 2014
    Subsequent Events [Abstract]  
    Subsequent Events

    Note 10. Subsequent Events

     

    In October 2014, the Company signed an advisory services agreement that provides for the issuance of 450,000 shares of the Company’s common stock. These shares were issued in October.

     

    In October, 2014, the Company issued 200,000 shares of the Company’s common stock to one of its directors according to terms of his appointment per the Board of Directors meeting held on June 3, 2014.

     

    In October, 2014 the Company issued 168,000 shares of the Company’s common stock to a consulting services firm according to terms of a consulting services agreement signed in June, 2014.

    XML 37 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
    Commitments, Contingencies
    9 Months Ended
    Sep. 30, 2014
    Commitments and Contingencies Disclosure [Abstract]  
    Commitments, Contingencies

    Note 8. Commitments, Contingencies

     

    The corporate offices of the Company are located at 11825 Major Street, Culver City, California. These facilities are furnished rent free by one of the Company’s shareholders. An imputed rent expense of $500 per month was recorded to the Statements of Operations and recorded as Additional Paid in Capital on the Balance Sheet for the period ended September 30, 2014.

     

    In May 2014, the Company signed an Office Service Agreement for office space in New York, New York. A deposit of $8,937 was paid and recorded in prepaid expense. The utilization of the office space began on August 1, 2014.

     

    In June 2014, the Company signed a consulting services agreement for the issuance of 168,000 shares of the Company’s common stock; the shares were issued in October, 2014.

     

    Prior to the Share Exchange, we were considered a “blank check” company and a “shell” company. The closing of the Initial Exchange Agreement with Private Co. was conditioned upon certain, limited customary representations and warranties, as well as, among other things, our compliance with Rule 419 (“Rule 419) of Regulation C under the Securities Act of 1933, as amended (the “Securities Act”) and the consent of our shareholders as required under Rule 419. Accordingly, we conducted a “Blank Check” offering subject to Rule 419 (the “Rule 419 Offering”) and filed a Registration Statement on Form S-1 to register the shares of such offering; the Registration Statement was declared effective on September 14, 2012. We used 10% of the subscription proceeds as permitted under Rule 419 and the amount remaining in the escrow trust as of the date of the closing of the Share Exchange was $90,000 (the “Trust Account Balance”).

     

    However, Rule 419 required that the Share Exchange occur on or before March 18, 2014, but due to normal negotiations regarding the transactions and the parties’ efforts to satisfy all of the closing conditions, the Share Exchange did not close on such date. Accordingly, after numerous discussions with management of both parties, they entered into an Amended and Restated Share Exchange Agreement (the “Share Exchange Agreement”) to reflect a revised business combination structure, pursuant to which we would: (i) file a registration statement on Form 8-A (“Form 8A”) to register our common stock pursuant to Section 12(g) of the Exchange Act, which we did on May 1, 2014 and (ii) seek to convert the participants of the Rule 419 Offering into participants of a similarly termed private offering (the “Converted Offering”), to be conducted pursuant to Regulation D, as promulgated under the Securities Act. We received consent from all of the participants of the Rule 419 Offering to instead direct their funds to be used to purchase shares of the Company’s restricted common stock in the Converted Offering (the “Consent”). We believed this also avoided the further administrative work for the investors of necessitating sending checks back and forth.

     

    However, pursuant to Rule 419(e)(2)(iv), “funds held in the escrow or trust account shall be returned by first class mail or equally prompt means to the purchaser within five business days [if the related acquisition transaction does not occur by a date that is 18 months after the effective date of the related registration statement].” As set forth above, rather than physically return the funds, we sought confirmation from the investors of the Rule 419 Offering to instead invest their escrowed funds to into the Converted Offering, unless they informed us that they wanted their funds returned to them. The consent document, which was essentially a form of rescission notice, was given to the investors along with a private placement memorandum describing the Converted Offering and explained that any investor who elected not to participate in the Converted Offering would get 90% of their funds physically returned (pursuant to Rule 419(b)(2)(vi), a blank check company is entitled to use 10% of the proceed/escrowed funds; therefore, if a return of funds is required, only 90% of the proceed/escrowed funds need be returned).

     

    By virtue of their specific instructions in the Consent, to direct their portion of the Trust Account Balance to purchase shares in the Converted Offering, we believe took reasonable steps to inform investors of the situation and provided them with an appropriate opportunity to maintain their investment in the Company, if they so chose, or to have their funds physically returned. And therefore, believed we constructively complied with Rule 419, which at the time, we thought was sufficient.

     

    Prior to this Report, we have received various comments from the SEC with regard to our disclosure and assessment related to our use of Rule 419. After providing responses and analysis as to why we believe we did not violate Rule 419, based upon latest communications with SEC personnel reviewing same, they do not agree with the Company’s assessments provided prior hereto. Comments and communications indicate that Rule 419 requires a physical return of funds if a 419 offering cannot be completed because a business combination was not consummated within the required time frame; constructive return is not permitted. Additionally, more recent SEC communications question the way in which we carried out the related financing after the Share Exchange was not complete by the required deadline imposed by Rule 419.

     

    As a result of these communications and past comments, we think it is necessary to disclose that we did not comply with the requirements of Rule 419, which required us to physically return the funds previously submitted to escrow pursuant to the Rule 419 Offering. As a result of our failure to comply with Rule 419, the SEC may bring an enforcement action or commence litigation against us for failure to strictly comply with Rule 419. If any claims or actions were to be brought against us relating to our lack of compliance with Rule 419, we could be subject to penalties (including criminal penalties), required to pay fines, make damages payments or settlement payments. In addition, any claims or actions will impair our ability to raise additional financings, could force us to expend significant financial resources to defend ourselves, could divert the attention of our management from our core business and could harm our reputation. In light of the uncertainty of this issue and while Management evaluates the best and most appropriate way to resolve same, management determined to create a reserve on the Company’s Balance Sheet for the $90,000 that was subject to the Consent.

     

    It is not possible at this time to predict whether or when the SEC may initiate any proceedings, when this issue may be resolved or what, if any, penalties or other remedies may be imposed, and whether any such penalties or remedies would have a material adverse effect on our consolidated financial position, results of operations, or cash flows. Litigation and enforcement actions are inherently unpredictable, the outcome of any potential lawsuit or action is subject to significant uncertainties and, therefore, determining at this time the likelihood of a loss, any SEC enforcement action and/or the measurement of the amount of any loss is complex. Consequently, we are unable to estimate the range of reasonably possible loss. Our assessment is based on an estimate and assumption that has been deemed reasonable by management, but the assessment process relies heavily on an estimate and assumption that may prove to be incomplete or inaccurate, and unanticipated events and circumstances may occur that might cause us to change that estimate and assumption.

      

    From time to time the Company may become a party to litigation matters involving claims against the Company. Except as may be contemplated above, management believes that there are no current matters that would have a material effect on the Company’s financial position or results of operations.

    XML 38 R14.htm IDEA: XBRL DOCUMENT v2.4.0.8
    Segment Reporting
    9 Months Ended
    Sep. 30, 2014
    Segment Reporting [Abstract]  
    Segment Reporting

    Note 9. Segment Reporting

     

    The Company has one operating segment, which was identified based upon the availability of discrete financial information and the chief operating decision makers’ regular review of financial information.

    XML 39 R16.htm IDEA: XBRL DOCUMENT v2.4.0.8
    Summary of Significant Accounting Policies (Policies)
    9 Months Ended
    Sep. 30, 2014
    Accounting Policies [Abstract]  
    Basis of Presentation

    Basis of Presentation

     

    The interim financial information of the Company as of periods ended September 30, 2014 and September 30, 2013 is unaudited. The balance sheet as of December 31, 2013 is derived from audited financial statements of eWellness Corporation. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial statements. Accordingly, they omit or condense footnotes and certain other information normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles. The accounting policies followed for quarterly financial reporting conform to the accounting policies disclosed in ASU 2014-10. In the opinion of management, all adjustments which are necessary for a fair presentation of the financial information for the interim periods reported have been made. All such adjustments are of a normal recurring nature. The results of operations for the nine months ended September 30, 2014 are not necessarily indicative of the results that can be expected for the entire year ending December 31, 2014. The unaudited financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2013 and the Form 8-K filed on August 6, 2014.

    Share Exchange Agreement

    Share Exchange Agreement

     

    On April 11, 2014, Digntye, Inc. (“Dignyte”), a publicly held Nevada corporation and eWellness Corporation (“Private Co”), a privately held company incorporated in Nevada, executed a Share Exchange Agreement (or “Initial Exchange Agreement”). Prior to the execution and delivery of the final Amended and Restated Share Exchange Agreement (the “Agreement”), the Board of Directors of Dignyte approved the Agreement and the transactions contemplated thereby. Similarly, the Board of Directors of the Private Co. approved the exchange. On April 25, 2014, immediately prior to the execution and delivery of the Agreement, Dignyte amended its certificate of incorporation to change its corporate name from “Dignyte, Inc.” to “eWellness Healthcare Corporation.”

     

    Pursuant to the Agreement, eWellness Healthcare Corporation issued 9,200,000 shares of unregistered common stock, $.001 par value (the “common stock”) to the shareholders of the Private Co. in exchange for all outstanding shares of the Private Co.’s common stock. In addition, our former chief executive officer agreed: (i) to tender 5,000,000 shares of common stock back to the Company for cancellation; (ii) assign from his holdings, an additional 2,500,000 shares to the shareholders of the Private Co. resulting in a total of 11,700,000 shares owned by those shareholders; and, (iii) to a further assignment of an additional 2,100,000 shares to other parties as stated therein (collectively, the “CEO Stock Actions”).

     

    As the parties satisfied all of the closing conditions, on April 30, 2014, we closed the Share Exchange. As a result, the Private Co. shareholders own approximately 76.97% of our issued and outstanding common stock, after giving effect to CEO Stock Actions.

     

    Following the Share Exchange, we abandoned our prior business plan and we are now pursuing the Private Co.’s historical businesses and proposed businesses. The Private Co. is the surviving company under the share exchange and became a wholly owned subsidiary of the Company.

     

    Prior to the Share Exchange Agreement, Dignyte was considered a shell company, as defined in SEC Rule 12b-2. For financial reporting purposes, the Share Exchange represents a “reverse merger” rather than a business combination. Consequently, the transaction is accounted for as a reverse-merger and recapitalization. eWellness Corporation is the acquirer for financial reporting purposes and Dignyte, Inc. is the acquired company. Consequently, the assets and liabilities and the operations that are reflected in the historical financial statements prior to the transactions are those of eWellness Corporation and are recorded at the historical cost basis of eWellness Corporation, and the consolidated financial statements after completion of the transaction include the assets, liabilities and operations of eWellness Healthcare Corporation, and eWellness Corporation from the closing date of the transaction. Additionally all historical equity accounts and awards of eWellness Corporation, including par value per share, share and per share numbers, have been adjusted to reflect the number of shares received in the transaction.

     

    Private Co. is in the initial phase of developing a unique telemedicine platform that offers Distance Monitored Physical Therapy Programs (“DMpt”) to pre-diabetic, cardiac and health challenged patients, through contracted physician practices and healthcare systems specifically designed to help prevent patients that are pre-diabetic from becoming diabetic. The Company’s activities are subject to significant risks and uncertainties, including failure to secure funding to operationalize the Company’s business plan.

     

    The foregoing description of the Share Exchange Agreement does not purport to be complete and is qualified in its entirety by the Share Exchange Agreement, a copy of which is attached to the Company’s Current Report on Form 8-K/A as filed with the Securities and Exchange Commission on August 6, 2014. At the execution of the Share Exchange Agreement, the total number of shares of common stock outstanding was 15,200,000.

    Use of Estimates

    Use of Estimates

     

    The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from these good faith estimates and judgments.

    Going Concern

    Going Concern

     

    The accompanying financial statements have been presented on the basis that it is a going concern which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the period ended September 30, 2014, the Company has no revenues. As of September 30, 2014, the Company had an accumulated deficit of $1,571,199 and current liabilities of $646,132 (including $90,000 contingently reserved and $130,000 payable to investors as more fully described in Note 8).

     

    These factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustment that might result from the outcome of this uncertainty. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

     

    The Company will need to obtain additional financings to meet their current obligations (including amounts owed to investors) and to fund future development activities. As result of a Rule 419 violation (see Note 8), these fund raising activities will be very challenging, and perhaps, not possible. Failure to obtain additional financings will have a material, adverse impact on the Company’s operations and financial condition.

    Deferred Offering and Acquisition Costs

    Deferred Offering and Acquisition Costs

     

    The Company defers as other assets the direct incremental costs of raising capital until such time as the offering is completed. At the time of the completion of the offering, the costs will be charged against the capital raised. Should the offering be terminated, the deferred offering costs will be charged to operations during the period in which the offering is terminated. Direct acquisition costs will be expensed as incurred.

    Fair Value of Financial Instruments

    Fair Value of Financial Instruments

     

    The Company complies with the accounting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820-10, Fair Value Measurements, as well as certain related FASB staff positions. This guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact business and considers assumptions that marketplace participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance.

     

    The guidance also establishes a fair value hierarchy for measurements of fair value as follows:

     

    Level 1 – quoted market prices in active markets for identical assets or liabilities.

     

    Level 2 – inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

     

    Level 3 – unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

     

    As of September 30, 2014 and 2013, the Company did not have Level 1, 2, or 3 financial assets or liabilities.

    Cash and Cash Equivalents

    Cash and Cash Equivalents

     

    Cash and cash equivalents includes all cash deposits and highly liquid financial instruments with an original maturity to the Company of three months or less.

    Property and Equipment

    Property and Equipment

     

    Property and equipment consists of assets with useful lives longer than one year. Useful lives for assets have been determined to be 5 years for the Company.

    Revenue Recognition

    Revenue Recognition

     

    The Company has yet to realize revenues from operations. Once the Company has commenced operations, it will recognize revenues when delivery of goods or completion of services has occurred provided there is persuasive evidence of an agreement, acceptance has been approved by its customers, the fee is fixed or determinable based on the completion of stated terms and conditions, and collection of any related receivable is probable.

    Research and Development

    Research and Development

     

    Research and development is primarily related to developing and improving methods related to our distance monitored physical therapy program. Research and development expenses are expensed when incurred. During the nine month periods ended September 30, 2014 and 2013, there were $30 and $2,706 of research and development expenses, respectively, incurred that were paid by a related party.

    Loss per Common Share

    Loss per Common Share

     

    The Company follows ASC Topic 260 to account for the loss per share. Basic loss per common share calculations are determined by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted loss per common share calculations are determined by dividing net loss by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation. As the Company has no common stock equivalents and has incurred losses for the period ended September 30, 2014, no dilutive shares are added into the loss per share calculations.

    Recent Accounting Pronouncements

    Recent Accounting Pronouncements

     

    From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements presentation.

     

    In May 2014, the Financial Accounting Standards Board issued accounting guidance on revenue recognition. The amended guidance will enhance the comparability of revenue recognition practices and will be applied to all contracts with customers. Improved disclosures related to the nature, amount, timing, and uncertainty of revenue that is recognized are requirements under the amended guidance. This guidance will be effective for fiscal 2017 and will be required to be applied retrospectively. We will evaluate the impact of this pronouncement on our financial statements when we commence operations and begin to generate revenue.

    XML 40 R21.htm IDEA: XBRL DOCUMENT v2.4.0.8
    Preferred and Common Stock (Details Narrative) (USD $)
    0 Months Ended 1 Months Ended 9 Months Ended
    May 08, 2014
    Jun. 30, 2014
    Sep. 30, 2014
    Sep. 30, 2013
    Aug. 15, 2014
    Jul. 28, 2014
    Jul. 08, 2014
    Apr. 11, 2014
    Dec. 31, 2013
    Equity [Abstract]                  
    Preferred stock, shares authorized     10,000,000           10,000,000
    Preferred stock, par value     $ 0.001           $ 0.001
    Common stock, shares authorized     350,000,000           350,000,000
    Common stock, par value     $ 0.001         $ 0.001 $ 0.001
    Common stock, shares issued     15,603,000           9,000,000
    Common stock, shares outstanding     15,603,000           9,000,000
    Stock issued during the period to non-employees for consulting services, shares 403,000 168,000              
    Stock issued during the period to non-employees for consulting services $ 41,500   $ (41,500) $ (9,000)          
    Amount received from accredited investors         30,000 25,000 3,000    
    Convertible secured notes     120,000            
    Minimum offering amount     $ 100,000            
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    Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
    9 Months Ended
    Sep. 30, 2014
    Sep. 30, 2013
    Cash flows from operating activities    
    Net loss $ (1,009,505) $ (272,609)
    Adjustments to reconcile net loss to net cash used in operating activities:    
    Depreciation and amortization 1,348   
    Contributed services 292,500 238,833
    Expenses paid by shareholders    24,676
    Shares issued for services 41,500 9,000
    Imputed interest - related party 1,619   
    Changes in operating assets and liabilities    
    Advances - related parties (683)   
    Prepaid expense (28,437)   
    Accounts payable and accrued expenses 154,016   
    Accounts payable - related party 52,616 100
    Contingent liability 90,000   
    Accrued compensation 219,500   
    Net cash used in operating activities (185,526)   
    Cash flows from financing activities    
    Proceeds from issuance of common stock      
    Common stock subscribed 58,000   
    Convertible loan payable 130,000   
    Net cash provided by financing activities 188,000   
    Net increase (decrease) in cash 2,474   
    Cash, beginning of period      
    Cash, end of period 2,474   
    Cash paid for:    
    Taxes    50
    Interest Expense      
    XML 42 R10.htm IDEA: XBRL DOCUMENT v2.4.0.8
    Income Taxes
    9 Months Ended
    Sep. 30, 2014
    Income Tax Disclosure [Abstract]  
    Income Taxes

    Note 5. Income Taxes

     

    The tax provision for interim periods is determined using an estimate of the Company’s effective tax rate for the full year adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter the Company updates its estimate of the annual effective tax rate, and if the estimated tax rate changes, the Company makes a cumulative adjustment.

     

    At September 30, 2014 and December 31, 2013, the Company has a full valuation allowance against its deferred tax assets, net of expected reversals of existing deferred tax liabilities, as it believes it is more likely than not that these benefits will not be realized.

     

    The Company did not identify any material uncertain tax positions of the Company on returns that have been filed or that will be filed. The Company has not had operations and has deferred items consisting entirely of

    unused Net Operating Losses.. Since it is not thought that this Net Operating Loss will ever produce a tax benefit, even if examined by taxing authorities and disallowed entirely, there would be no effect on the

    financial statements.

     

    The Company’s policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits within income tax expense. For the periods ended September 30, 2014, and September 30, 2013 the Company did not recognize nor accrue for any interest or penalties.

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    Mar. 31, 2014
    Debt Disclosure [Abstract]    
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    Interest rate 12.00% 12.00%