Contract Liabilities

12 Months Ended

Dec. 31, 2020

Contract Liabilities [Abstract]

CONTRACT LIABILITIES

NOTE 10 – CONTRACT LIABILITIES

Amounts related to contract liabilities in the years ended December 31, 2020 and 2019 were as follow:

	Year Ended December 31,
	2020			2019
Balance, beginning of period	$	---		$	---
Acquired contract liabilities		157,032			---
Payments received for unearned revenue		418,368			---
Revenue earned		(485,975	)		---
Balance, end of period	$	89,425		$	---

Deferred revenue relates to contracted consulting services at CHM for which payment has been made but services have not yet been rendered as of the measurement date, physical therapy services purchased as a prepaid bundle for which services have not yet been provided, and MOD products that have been ordered and paid for by the customer but which have not been shipped as of the measurement date. The Company typically satisfies its performance obligations related to such contracts upon completion of service or shipment of product. Payment is typically made in the period prior to the services being provided.

Amounts due to related parties as of December 31, 2020 and 2019 were comprised of the following:

	December 31,
	2020		2019
Due to related party:
Deferred compensation, Dr. Michael Dent	$	300,600	$	300,600
Accrued interest payable to Dr. Michael Dent		---		192,857
Total due to related party		300,600		493,457
Notes payable to related party:
Notes payable to Dr. Michael Dent and family (all current)	$	---	$	743,955

Notes Payable to Dr. Dent

Our founder and CEO, Dr. Michael Dent, made loans to the Company from time to time in the form of unsecured promissory notes payable (the “Dent Notes”). The carrying values of the Dent Notes as of December 31, 2020 and 2019 was $-0- and $743,955. Prior to extinguishment as described below, the Dent Notes were carried at fair value and revalued at each period end, with changes to fair value recorded to the statement of operations under “Change in Fair Value of Debt.” The changes in fair value during the years ended December 31, 2020 and 2019 were $80,935 and $24,098, respectively.

On September 21, 2020, the Company and Dr. Dent entered into an agreement pursuant to which the Company repaid all obligations under the Dent Notes in exchange for one-time cash payment of $780,256. The payment was calculated as the face value of the Dent Notes of $646,000, plus $134,256 of interest accrued on the notes issued in 2017 and 2018. As part of the Agreement, Dr. Dent agreed to forgive interest of $105,003 accrued on the remaining Dent Notes. In connection with the agreement and repayment, the Company realized a gain of $283,863, being the excess of the carrying value of the Dent Notes over the consideration paid. This amount was recorded to additional paid in capital.