UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
(Mark One)
| x | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended March 31, 2017
OR
| ¨ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the transition period from ___________ to _____________
Commission file number: 001-09043
| MedAmerica Properties Inc. |
| (Exact name of registrant as specified in its charter) |
| Delaware | 36-3361229 | |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| Boca Center, Tower 1, 5200 Town Center Circle, Suite 550, Boca Raton, Florida 33486 |
| (Address of principal executive offices) (Zip Code) |
| 561-617-8050 |
| (Registrant’s telephone number, including area code) |
| (Former name, former address and former fiscal year, if changed since last report) |
Indicate by a check mark whether the registrant: (1) has 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 a check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 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 |
| Emerging growth company ¨ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes x No ¨
As of May 15, 2017, the registrant had 10,567,235 shares of common stock, $0.01 par value per share, outstanding.
Explanatory Note
MedAmerica Properties Inc., formerly known as Banyan Rail Services Inc. (the “Company”), is restating its condensed consolidated balance sheet as of March 31, 2017, and the condensed consolidated statement of stockholders’ (deficit) equity for the period ended March 31, 2017. The Company has added footnote 11 to its condensed consolidated financial statements showing the as previously filed financial statements, the restatement adjustment and as restated columns for the restated financial statements.
On February 1, 2010, the Company issued 10,375 shares of Series A Cumulative Preferred Stock (the “Series A Preferred Stock”). The holders of the Series A Preferred Stock are entitled to receive semiannual cumulative, non-compounded dividends on each outstanding share of Series A Preferred Stock at the rate of 10.0% of the issuance price per annum (“Series A Preferred Dividends”), which began to accumulate effective January 1, 2010, when and as declared by the Company’s board of directors. The board has not declared any cash dividends on the Series A Preferred Stock. In 2015 and 2016, the Company issued shares of common stock to preferred stockholders who agreed to accept the common stock in lieu of cash dividends on the Series A Preferred Stock.
From February 1, 2010 through December 31, 2016, the Company recorded a liability for accumulated undeclared Series A Preferred Dividends and a related reduction to additional paid in capital. In its Form 10-Q for the quarter ended March 31, 2017 filed with the Securities and Exchange Commission on May 15, 2017, the Company reported the unpaid dividends in the footnotes to the condensed consolidated financial statements but not as a liability and related reduction to paid in capital as previously reported. This Form 10-Q/A to our Form 10-Q for the quarter ended March 31, 2017 includes the restated financial statements described above and related footnote disclosure and reflects a return to the reporting methodology previously utilized by the Company concerning the undeclared preferred dividends.
MEDAMERICA PROPERTIES INC.
F/K/A BANYAN RAIL SERVICES INC.
FORM 10-Q/A
TABLE OF CONTENTS
| Part I — Financial Information | 1 | |
| Item 1. | Financial Statements | 1 |
| Part II — Other Information | 12 | |
| Item 6. | Exhibits | 12 |
| Signatures | 13 | |
Part I — Financial Information
| Item 1. | Financial Statements |
MedAmerica Properties Inc. and Subsidiaries
f/k/a Banyan Rail Services Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (As Restated, See Note 11)
| (Restated) | ||||||||
| March 31, 2017 (Unaudited) | December 31, 2016 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 673,043 | $ | 450 | ||||
| Property deposits | 110,000 | |||||||
| Prepaid insurance and other current assets | 21,781 | 31,703 | ||||||
| Total current assets | 694,824 | 142,153 | ||||||
| Total assets | $ | 694,824 | $ | 142,153 | ||||
| LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 67,016 | $ | 62,039 | ||||
| Accrued payroll | 42 | |||||||
| Accrued professional fees | 10,200 | 33,863 | ||||||
| Accrued expenses | 30,697 | - | ||||||
| Note payable to related party, including accrued interest of $13,208 | 342,536 | 471,826 | ||||||
| Accrued dividends | 329,017 | 329,017 | ||||||
| Total current liabilities | 779,466 | 896,787 | ||||||
| Total liabilities | 779,466 | 896,787 | ||||||
| Commitments and contingencies | - | - | ||||||
| Stockholders' (deficit) equity | ||||||||
| Series A Preferred stock, $0.01 par value. 20,000 shares authorized, 10,375 | ||||||||
| issued at March 31, 2017 and December 31, 2016 | 104 | 104 | ||||||
| Common stock, $0.01 par value. 50,000,000 shares authorized, 10,567,235 issued as of March 31, 2017 and December 31, 2016 | 105,616 | 105,672 | ||||||
| Additional paid-in capital | 109,670,269 | 109,740,902 | ||||||
| Accumulated deficit | (110,535,631 | ) | (110,530,623 | ) | ||||
| Treasury stock, at cost, for 5,655 shares | - | (70,689 | ) | |||||
| Common stock subscribed | 675,000 | - | ||||||
| Total stockholders' (deficit) equity | (84,642 | ) | (754,634 | ) | ||||
| Total liabilities and stockholders' (deficit) equity | $ | 694,824 | $ | 142,153 | ||||
See Notes to Condensed Consolidated Financial Statements
Page 1
MedAmerica Properties Inc. and Subsidiaries
f/k/a Banyan Rail Services Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
| Three months ended March 31, | ||||||||
| 2017 | 2016 | |||||||
| General & administrative expenses | $ | 110,486 | $ | 169,246 | ||||
| Loss from operations | (110,486 | ) | (169,246 | ) | ||||
| Interest expense | (12,278 | ) | - | |||||
| Sale of Banyan Medical Partners | 117,756 | - | ||||||
| Net loss | $ | (5,008 | ) | $ | (169,246 | ) | ||
| Dividends for the benefit of preferred stockholders: | ||||||||
| Preferred stock dividends | - | (25,945 | ) | |||||
| Total dividends for the benefit of preferred stockholders | - | (25,945 | ) | |||||
| Net loss attributable to common stockholders | $ | (5,008 | ) | $ | (195,191 | ) | ||
| Weighted average number of common shares outstanding: | ||||||||
| Basic and diluted | 10,567,235 | 10,331,487 | ||||||
| Net loss per common share from continuing operations, basic and diluted | $ | (0.00 | ) | $ | (0.02 | ) | ||
| Net loss attributable to common stockholders per share | $ | (0.00 | ) | $ | (0.02 | ) | ||
See Notes to Condensed Consolidated Financial Statements
Page 2
MedAmerica Properties Inc. and Subsidiaries
f/k/a Banyan Rail Services Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| Three months ended March 31, | ||||||||
| 2017 | 2016 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (5,008 | ) | $ | (169,246 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Changes in assets and liabilities: | ||||||||
| Decrease in property deposits | 110,000 | - | ||||||
| Decrease in prepaid expenses | 9,922 | (741 | ) | |||||
| Increase in accounts payable and accrued expenses | 11,969 | 23,772 | ||||||
| Increase in accrued interest - related party | 12,278 | - | ||||||
| Net cash provided by (used in) operating activities | 139,161 | (146,215 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Payment of note payable - related party | (268,101 | ) | - | |||||
| Proceeds on note payable - related party | 126,533 | - | ||||||
| Proceeds from common stock subscribed | 675,000 | - | ||||||
| Net cash provided by financing activities | 533,432 | - | ||||||
| Net increase (decrease) in cash | 672,593 | (146,215 | ) | |||||
| Cash at beginning of period | 450 | 327,382 | ||||||
| Cash at end of period | $ | 673,043 | $ | 181,167 | ||||
| Non cash financing activities: | ||||||||
| Preferred stock dividends in excess of payments | $ | - | $ | 25,945 | ||||
| Issuance of common shares in lieu of cash dividends payable | $ | - | $ | 29,250 | ||||
See Notes to Condensed Consolidated Financial Statements
Page 3
MedAmerica Properties Inc. and Subsidiaries
f/k/a Banyan Rail Serivces Inc. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ (Deficit) Equity (As Restated, See Note 11)
Periods Ended March 31, 2017 and December 31, 2016
| Common Stock | Common | Preferred Stock | Treasury Stock | |||||||||||||||||||||||||||||||||||||
| Shares Issued | Amount | Stock
Subscribed | Shares
Issued | Amount | Additional
Paid in Capital | Accumulated
Deficit | Shares | Amount | Total | |||||||||||||||||||||||||||||||
| Stockholders’ (deficit) equity December 31, 2015 | 10,317,379 | $ | 103,174 | $ | - | 10,375 | $ | 104 | $ | 109,652,901 | $ | (109,658,014 | ) | 5,655 | $ | (70,689 | ) | $ | 27,476 | |||||||||||||||||||||
| Issuance of common stock | 29,856 | 298 | 28,951 | 29,249 | ||||||||||||||||||||||||||||||||||||
| Stock compensation expense | 220,000 | 2,200 | 162,800 | 165,000 | ||||||||||||||||||||||||||||||||||||
| Net loss for the year ended December 31, 2016 | (872,609 | ) | (872,609 | ) | ||||||||||||||||||||||||||||||||||||
| Preferred stock dividends | (103,750 | ) | (103,750 | ) | ||||||||||||||||||||||||||||||||||||
| Stockholders’ (deficit) equity December 31, 2016 | 10,567,235 | 105,672 | - | 10,375 | 104 | 109,740,902 | (110,530,623 | ) | 5,655 | (70,689 | ) | (754,634 | ) | |||||||||||||||||||||||||||
| Common stock subscribed | 675,000 | 675,000 | ||||||||||||||||||||||||||||||||||||||
| Retire treasury stock | (56 | ) | (70,633 | ) | (5,655 | ) | 70,689 | - | ||||||||||||||||||||||||||||||||
| Net loss for the three months ended March 31, 2017 | (5,008 | ) | (5,008 | ) | ||||||||||||||||||||||||||||||||||||
| Cumulative effect of restatement | 329,017 | 329,017 | ||||||||||||||||||||||||||||||||||||||
| Stockholders’ (deficit) equity March 31, 2017 | 10,567,235 | $ | 105,616 | $ | 675,000 | 10,375 | $ | 104 | $ | 109,999,286 | $ | (110,535,631 | ) | - | $ | - | $ | 244,375 | ||||||||||||||||||||||
| Cumulative effect of correction | (329,017 | ) | (329,017 | ) | ||||||||||||||||||||||||||||||||||||
| Stockholders’ (deficit) equity March 31, 2017 (Restated) | 10,567,235 | $ | 105,616 | $ | 675,000 | 10,375 | $ | 104 | $ | 109,670,269 | $ | (110,535,631 | ) | - | $ | - | $ | (84,642 | ) | |||||||||||||||||||||
See Notes to Condensed Consolidated Financial Statements
Page 4
Notes to Condensed Consolidated Financial Statements
(UNAUDITED)
Note 1. Nature of Operations
Banyan Rail Services Inc. (the “Company”), was originally organized under the laws of the Commonwealth of Massachusetts in 1985 and was reorganized as a Delaware corporation in 1987. In 2016, our management team determined to pursue the acquisition, purchase and management of well-located medical office buildings throughout the United States with the intention of aggregating multiple properties with strong fundamentals in certain attractive geographic locations, particularly in the sunbelt states. We believe that investing in medical office buildings will generate strong cash flow and produce significantly increased value for our stockholders. Although we believe the acquisition and ownership of medical office buildings is fundamentally sound, there is no assurance that we will be successful in this endeavor or that we can locate, acquire and finance the acquisition of these properties. For more information concerning these risks, please see Part II, Section 1A – “Risk Factors.”
In preparation for this new strategy, our management team is focused on repositioning the Company, both operationally and financially. In addition to seeking equity and debt financing, we have taken the actions described below under “Recent Events” to strengthen our balance sheet and pursue our new strategy.
Note 2. Principles of Consolidation and Basis of Presentation
Principles of Consolidation
The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company account balances have been eliminated in consolidation.
Basis of Presentation
The accompanying condensed consolidated financial statements give effect to all adjustments necessary to present fairly the financial position and results of operations and cash flows of the Company and its subsidiaries.
Note 3. Going Concern
Our independent certified public accounting firm issued its report dated March 27, 2017 in connection with the audit of our financial statements for the year ended December 31, 2016 that included an explanatory paragraph describing the existence of conditions that raise substantial doubt about the Company’s ability to continue as a going concern. The Company does not currently generate revenue and is dependent on generating funds through debt or equity capital raises to cover its general and administrative costs.
The accompanying condensed consolidated financial statements have been prepared and are presented assuming the Company’s ability to continue as a going concern. The accompanying unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty. The Company recognized a net loss of $5,008 and $169,246 for the three months ended March 31, 2017 and 2016, respectively. At March 31, 2017, the Company had net working capital of $244,375 as compared to net working capital deficit of ($567,770) at December 31, 2016.
In February 2017, we began approaching certain accredited investors offering unregistered shares of the Company’s common stock for $0.15 a share in order to raise working capital and fund our operations (the “2017 Private Placement”). On May 15, 2017, we accepted subscriptions for $1,369,755 in the 2017 Private Placement which will result in the issuance of 9,131,700 shares of our common stock. The issuances of common stock were made in reliance on section 4(2) of the Securities Act of 1933 for the offer and sale of securities not involving a public offering and rule 506 of Regulation D of the Securities Act.
Page 5
Note 4. Summary of Significant Accounting Policies
Use of Estimates
The preparation of financial statements, in conformity with accounting principles generally accepted in the United States ("U.S. GAAP"), requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash
The Company considers all cash, bank deposits and highly liquid investments with an original maturity of three months or less to be cash equivalents. From time to time our cash deposits exceed federally insured limits and currently the cash balance exceeds federally insured limits by $423,043.
Fair Value of Financial Instruments
Recorded financial instruments as of March 31, 2017 consist of cash, prepaid expenses, accounts payable, accrued liabilities and short-term obligations. The related fair values of these financial instruments approximated their carrying values due to either the short-term nature of these instruments or based on the interest rates currently available to the Company.
Income (Loss) Per Common Share
The Company computes net income (loss) per common share in accordance with the provision included in ASC 260, Earnings per Share (“ASC 260”). Under ASC 260, basic and diluted income (loss) per share is computed by dividing net income (loss) available to stockholders by the weighted average number of common shares and common share equivalents outstanding during the period. Basic loss per common share excludes the effect of potentially dilutive securities, while diluted loss per common share reflects the potential dilution that would occur if securities or other contracts to issue common shares were exercised for, converted into or otherwise resulted in the issuance of common shares.
Income Taxes
The Company accounts for income taxes in accordance with ASC 740, Accounting for Income Taxes, as clarified by ASC 740-10, Accounting for Uncertainty in Income Taxes. Under this method, deferred income taxes are determined based on the estimated future tax effects of differences between the financial statement and tax basis of assets and liabilities given the provisions of enacted tax laws.
Deferred income tax provisions and benefits are based on changes to the assets or liabilities from year to year. In providing for deferred taxes, the Company considers tax regulations of the jurisdictions in which the Company operates, estimates of future taxable income, and available tax planning strategies. If tax regulations, operating results or the ability to implement tax-planning strategies vary, adjustments to the carrying value of deferred tax assets and liabilities may be required. Valuation allowances are recorded related to deferred tax assets based on the “more likely than not” criteria of ASC 740.
ASC 740-10 requires that the Company recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the “more-likely-than-not” threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority.
Page 6
Retained Earnings Distributions
The Company’s preferred stockholders are entitled to receive payment before any of the common stockholders upon a liquidation of the Company, and we cannot pay dividends on our common stock unless we first pay dividends required by our preferred stock.
Preferred Stock Dividends
The holders of Series A Preferred Stock shall be entitled to receive cumulative, non-compounded cash dividends on each outstanding share of Series A Preferred Stock at the rate of 10.0% of the Issuance Price per annum (“Series A Preferred Dividends”), which began accumulating on January 1, 2010. The Series A Preferred Dividends shall be payable semiannually to the holders of Series A Preferred Stock, when and as declared by the Board of Directors. As of March 31, 2017 and December 31, 2016, no dividends have been declared by the board of directors.
Recently Issued Accounting Pronouncements
In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either a full retrospective or retrospective with cumulative effect transition method. In August 2015, the FASB issued ASU 2015-14 which defers the effective date of ASU 2014-09 one year making it effective for annual reporting periods beginning after December 15, 2018. As the Company does not yet generate revenue, adoption of the standard is expected to have no impact on the accompanying condensed consolidated financial statements.
During 2016, the FASB has issued Accounting Standards Updates (“ASUs”) 2016-01 through 2016-17. Except for ASU 2016-02, 2016-09, and 2016-15, which are discussed below, these ASUs provide technical corrections or simplification to existing guidance and to specialized industries or entities and therefore are expected to have a minimal, if any, impact on the Company.
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires lessees to recognize most leases on the balance sheet. The provisions of this ASU are effective for annual periods beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. Because neither the Company nor any of its subsidiaries are parties to any leases, this ASU had no impact on the accompanying condensed consolidated financial statements.
In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The objective of this ASU is to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. This ASU is adopted and is not expected to have a material impact on the Company’s condensed consolidated financial statements.
In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This ASU is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017, with early adoption permitted. The implementation of this ASU is not expected to have a material impact on the Company’s condensed consolidated financial statements.
Note 5. Preferred Stock and Common Stock
In April 2017, we offered shares of our common stock to the holders of our preferred stock in exchange for their preferred shares and accumulated dividends on the preferred. Pursuant to the offer, each share of preferred stock would be exchanged for 200 common shares. If all of the preferred stockholders accept, we would issue a total of 2,733,034 shares of our common stock and no shares of preferred stock would remain outstanding, although we cannot predict how many of the preferred stockholders will accept our offer. The offer expires on May 26.
In February 2017, we began approaching certain accredited investors offering unregistered shares of the Company’s common stock for $0.15 a share in order to raise working capital and fund our operations (the “2017 Private Placement”). On May 15, 2017, we accepted subscriptions for $1,369,755 in the 2017 Private Placement which will result in the issuance of 9,131,700 shares of our common stock. The issuances of common stock were made in reliance on section 4(2) of the Securities Act of 1933 for the offer and sale of securities not involving a public offering and rule 506 of Regulation D of the Securities Act.
Preferred Stock Dividends
From the date of the original issuance of the series A preferred stock, February 1, 2010, the Company’s board of directors had not declared the payment of Series A Cumulative Preferred Dividends on the issued and outstanding shares of preferred stock other than for the dividends paid with common shares as discussed below.
Certain Series A Preferred stockholders had previously agreed to accept common stock in lieu of cash for payment of Series A Cumulative Preferred Dividends. In February 2016, the Company issued 29,856 shares of common stock in lieu of $29,249 of Series A Preferred Stock Dividends for those Series A Preferred stockholders who accepted the common stock in lieu the of cash offer.
Page 7
Series A Cumulative Preferred Stock Dividends scheduled and accumulated:
| Scheduled | Accumulated | |||||||
| December 31, 2015 | $ | 254,517 | ||||||
| June 30, 2016 | $ | 22,625 | $ | 277,142 | ||||
| December 31, 2016 | $ | 51,875 | $ | 329,017 | ||||
As of March 31, 2017, Banyan Rail Holdings LLC (“Banyan Holdings”) and Marino Family Holdings LLC owned 2,726,114 and 3,097,778 shares of common stock of the Company, respectively.
Note 6. Income Taxes
For the three months ended March 31, 2017 and 2016, the Company recorded an income tax provision of $0. The effective tax rate for the three months ended March 31, 2017 and 2016 was 0%. The tax rate differs from the statutory federal rate of 34% primarily due to valuation allowances recorded on the Company’s net operating loss carry-forward generated during the period.
The Company recorded an operating loss for the quarter, and has a recent history of operating losses. After assessing the realization of the net deferred tax assets, we have recorded a valuation allowance of 100% of the value of the net deferred tax assets as we currently believe it is more likely than not that the Company will not realize operating profits and taxable income so as to utilize all of the net operating losses in the near future.
Note 7. Earnings (loss) per Share
The Company excluded from its diluted earnings per share calculation 103,750 shares issuable upon conversion of shares of convertible preferred stock that were outstanding at both March 31, 2017 and 2016, as their inclusion would be anti-dilutive.
Note 8. Stock-Based Compensation
The Company previously had stock option agreements with its directors and officers. Details of options activity is as follows:
| Weighted | ||||||||||||||||||||
| Weighted | Weighted | Average | ||||||||||||||||||
| Average | Average | Remaining | ||||||||||||||||||
| Number | Exercise Price | Fair Value at | Contractual | Intrinsic | ||||||||||||||||
| of Shares | per Share | Grant Date | Life | Value | ||||||||||||||||
| Balance January 1, 2016 | 5,000 | $ | 10.30 | $ | - | 0.5 years | $ | - | ||||||||||||
| Options granted | - | - | - | - | - | |||||||||||||||
| Options exercised | - | - | - | - | - | |||||||||||||||
| Options expired | (5,000 | ) | (10.30 | ) | - | - | - | |||||||||||||
| Balance, January 1, 2017 | - | - | - | - | ||||||||||||||||
| Options granted | - | - | - | - | - | |||||||||||||||
| Options exercised | - | - | - | - | - | |||||||||||||||
| Options expired | - | - | - | - | - | |||||||||||||||
| Balance, March 31, 2017 | - | $ | - | $ | - | - | $ | - | ||||||||||||
Prior to June 30, 2010, the Company had not adopted a formal stock option plan. The number of options issued and the grant dates were determined at the discretion of the Company’s Board. Certain options vest at the date of grant and others vest over a one year period. The options are exercisable for periods not exceeding three to five years from the date of grant. On July 1, 2010, at its annual meeting of stockholders, the 2010 Stock Option and Award Plan was approved.
The fair values of stock options are estimated using the Black-Scholes method, which takes into account variables such as estimated volatility, expected holding period, dividend yield, and the risk free interest rate. The risk free interest rate is the five year treasury rate at the date of grant. The expected life is based on the contractual life of the options at the date of grant.
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Note 9. Related Party Transactions
On July 27, 2016, the Company entered into a Demand Note and Loan Agreement (the “Note”) with Boca Equity Partners LLC (“BEP”) providing for draws of up to $250,000. Loans under the Note bear interest at an annual rate of 10% and outstanding principal and interest were due on demand. This Note was cancelled and terminated on December 31, 2016 when the Company entered into a new Demand Note and Loan Agreement (the “New Note”) with BEP. The New Note balance at March 31, 2017 was $342,536 which represents advances from BEP under the New Note, payments made since the date of the New Note and interest accrued thereon. The New Note bears interest at the rate of 10% per annum and is payable upon demand. BEP may, but is not required to, make advances to the Company as the Company may from time to time request.
Gary O. Marino, the Company’s chairman of the board, is the chairman, president, and chief executive officer of BEP. Mr. Marino, Mr. Paul S. Dennis, the Company’s interim chief executive officer, interim president and interim chief financial officer, and Donald S. Denbo, a member of the Company's board of directors, also hold membership interests in BEP.
During 2016, the Company established a wholly-owned subsidiary, Banyan Medical Partners, LLC (“BMP”), and certain other subsidiaries wholly-owned by BMP. The company formed these entities to acquire medical office buildings in the United States. The Company was unable to raise the capital needed to consummate the first medical building opportunity. On March 9, 2017, the Company sold BMP and BMP’s wholly-owned subsidiaries to Patriot Equity, LLC, a limited liability company owned solely by Gary O. Marino, the Company’s chairman of the board. The selling price was $277,756 in the form of BMP assuming a portion of the Company’s note payable balance due to BEP. The consideration of $277,756 was used to recoup the $110,000 in property deposits as of December 31, 2016 and other 2016 and 2017 expenses incurred by the Company on behalf of BMP. There was a gain on the sale of the subsidiary of $117,756, which primarily came from reimbursement of previously paid expenses by BEP for cost related to acquiring the property.
The Company’s directors are currently not receiving cash compensation for their services, and no amounts have been recorded in the Company’s financial statements for the value of their services as of March 31, 2017.
The Company’s board of directors and officers beneficially own 7,092,375 shares of the Company’s common stock as of March 31, 2017 67.12% of the outstanding common stock.
Note 10. Subsequent Events
In February 2017, we began approaching certain accredited investors offering unregistered shares of the Company’s common stock for $0.15 a share in order to raise working capital and fund our operations (the “2017 Private Placement”). On May 15, 2017, we accepted subscriptions for $1,369,755 in the 2017 Private Placement which will result in the issuance of 9,131,700 shares of our common stock. The issuances of common stock were made in reliance on section 4(2) of the Securities Act of 1933 for the offer and sale of securities not involving a public offering and rule 506 of Regulation D of the Securities Act.
On April 17, 2017 and May 1, 2017, the Company paid down portions of the note payable under the New Note in the amounts of $150,000 and $100,000, respectively.
Page 9
Note 11. Restatement
MedAmerica Properties Inc., formerly known as Banyan Rail Services Inc. (the “Company”), is restating its condensed consolidated balance sheet as of March 31, 2017, and its condensed consolidated statement of stockholders’ (deficit) equity for the period ended March 31, 2017. The restatement shows the as previously filed, restatement adjustment and as restated columns for the balance sheet as of March 31, 2017.
On February 1, 2010, the Company issued 10,375 shares of Series A Cumulative Preferred Stock (“Series A Preferred Stock”). The holders of the Series A Preferred Stock are entitled to receive cumulative, non-compounded dividends on each outstanding share of Series A Preferred Stock at the rate of 10.0% of the issuance price per annum (“Series A Preferred Dividends”), which shall begin to accumulate effective January 1, 2010.
The Series A Preferred Dividends shall be payable semiannually to the holders of Series A Preferred Stock, when declared by the board of directors. From the date of the original issuance of the Series A Preferred Stock, February 1, 2010, the Company’s board of directors had not declared the payment of Series A Preferred Dividends on the issued and outstanding shares of preferred stock other than for those dividends paid with common shares. In 2015 and 2016, the board of directors declared Series A Preferred Dividends for certain Series A Preferred Stock holders had agreed to accept common stock in lieu of cash for payment of Series A Preferred Dividends.
From February 1, 2010 through December 31, 2016, the Company had been recording a liability for accumulated undeclared Series A Preferred Dividends and a related reduction to additional paid-in-capital. The Company should have continued recording a liability on the Company’s balance sheet but inadvertently did not. This restatement reflects the continuation of the dividend policy.
This Amendment on Form 10-Q/A to our Form 10-Q for the quarter ended March 31, 2017 which was filed with the SEC on May 15, 2017, is being filed to reflect the restatement of our condensed consolidated financial statements, the footnotes to our financial statements and other disclosures as necessary. The following statements present the effect of this restatement.
Page 10
The following table presents the condensed consolidated balance sheet as previously reported, restatement adjustment, and as restated as of March 31, 2017:
| As Previously Filed | Restatement Adjustment | As Restated | ||||||||||
| ASSETS | ||||||||||||
| Current assets | ||||||||||||
| Cash | $ | 673,043 | - | $ | 673,043 | |||||||
| Property deposits | - | - | - | |||||||||
| Prepaid insurance and other current assets | 21,781 | - | 21,781 | |||||||||
| Total current assets | 694,824 | - | 694,824 | |||||||||
| Total assets | $ | 694,824 | $ | - | $ | 694,824 | ||||||
| LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | ||||||||||||
| Current liabilities | ||||||||||||
| Accounts payable | $ | 67,016 | - | 67,016 | ||||||||
| Accrued payroll | - | - | - | |||||||||
| Accrued professional fees | 10,200 | - | 10,200 | |||||||||
| Accrued expenses | 30,697 | - | 30,697 | |||||||||
| Note payable to related party, including accrued interest of $13,208 | 342,536 | - | 342,536 | |||||||||
| Accrued dividends | - | 329,017 | 329,017 | |||||||||
| Total current liabilities | 450,449 | 329,017 | 779,466 | |||||||||
| Total liabilities | 450,449 | 329,017 | 779,466 | |||||||||
| Commitments and contingencies | - | - | - | |||||||||
| Stockholders' (deficit) equity | ||||||||||||
| Series A Preferred stock | 104 | - | 104 | |||||||||
| Common stock | 105,616 | - | 105,616 | |||||||||
| Additional paid-in capital | 109,999,286 | (329,017 | ) | 109,670,269 | ||||||||
| Accumulated deficit | (110,535,631 | ) | - | (110,535,631 | ) | |||||||
| Treasury stock, at cost, for 5,655 shares | - | - | - | |||||||||
| Common stock subscribed | 675,000 | - | 675,000 | |||||||||
| Total stockholders' (deficit) equity | 244,375 | (329,017 | ) | (84,642 | ) | |||||||
| Total liabilities and stockholders' (deficit) equity | $ | 694,824 | $ | - | $ | 694,824 | ||||||
Page 11
| 31.1* | Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| 31.2* | Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| 32.1** | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| 32.2** | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| 101.INS* | XBRL Instance Document |
| 101.SCH* | XBRL Schema Document |
| 101.CAL* | XBRL Calculation Linkbase Document |
| 101.DEF* | XBRL Definition Linkbase Document |
| 101.LAB* | XBRL Label Linkbase Document |
| 101.PRE* | XBRL Presentation Linkbase Document |
*Filed herewith
**Furnished herewith
Page 12
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.
| MedAmerica Properties Inc. f/k/a Banyan Rail Services Inc. | ||
| Date: October 6, 2017 | By: | /s/ Joseph C. Bencivenga |
|
Joseph C. Bencivenga President & Chief Executive Officer (Principal Executive Officer) | ||
| By: | /s/ Patricia K. Sheridan | |
|
Patricia K. Sheridan Chief Financial Officer (Principal Financial Officer) |
Page 13
Exhibit 31.1
CERTIFICATION
I, Joseph C. Bencivenga, certify that:
| 1. | I have reviewed this quarterly report on Form 10-Q/A of MedAmerica Properties Inc. f/k/a Banyan Rail Services Inc.; |
| 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 under which such statements were 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 15d-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, including its consolidated subsidiaries, 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(s) 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. |
| /s/ Joseph C. Bencivenga | |
| Joseph C. Bencivenga | |
| President & Chief Executive Officer | |
| (Principal Executive Officer) | |
| Date: October 6, 2017 |
Exhibit 31.2
CERTIFICATION
I, Patricia K. Sheridan, certify that:
| 1. | I have reviewed this quarterly report on Form 10-Q/A of MedAmerica Properties Inc. f/k/a Banyan Rail Services Inc.; |
| 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 under which such statements were 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 15d-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, including its consolidated subsidiaries, 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(s) 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. |
| /s/ Patricia K. Sheridan | |
| Patricia K. Sheridan | |
|
Chief Financial Officer (Principal Financial Officer) | |
| Date: October 6, 2017 |
Exhibit 32.1
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/A of MedAmerica Properties Inc. f/k/a Banyan Rail Services Inc. (the “Company”) for the quarter ending March 31, 2017 (the “Report”) filed with the Securities and Exchange Commission, I, Joseph C. Bencivenga, President & Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
| (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. |
| /s/ Joseph C. Bencivenga | |
| Joseph C. Bencivenga | |
| President & Chief Executive Officer | |
| Date: October 6, 2017 |
Exhibit 32.2
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/A of MedAmerica Properties Inc. f/k/a Banyan Rail Services Inc. (the “Company”) for the quarter ending March 31, 2017 (the “Report”) filed with the Securities and Exchange Commission, I, Patricia K. Sheridan, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
| (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. |
| /s/ Patricia K. Sheridan | |
|
Patricia K. Sheridan Chief Financial Officer | |
| Date: October 6, 2017 |
Document And Entity Information - shares |
3 Months Ended | |
|---|---|---|
Mar. 31, 2017 |
May 15, 2017 |
|
| Document Information [Line Items] | ||
| Document Type | 10-Q | |
| Amendment Flag | true | |
| Document Period End Date | Mar. 31, 2017 | |
| Document Fiscal Year Focus | 2017 | |
| Document Fiscal Period Focus | Q1 | |
| Entity Registrant Name | MedAmerica Properties Inc. | |
| Entity Central Index Key | 0000764897 | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Filer Category | Smaller Reporting Company | |
| Trading Symbol | MAMP | |
| Entity Common Stock, Shares Outstanding | 10,567,235 | |
| Amendment Description | MedAmerica Properties Inc., formerly known as Banyan Rail Services Inc. (the “Company”), is restating its condensed consolidated balance sheet as of March 31, 2017, and the condensed consolidated statement of stockholders’ (deficit) equity for the period ended March 31, 2017. The Company has added footnote 11 to its condensed consolidated financial statements showing the as previously filed financial statements, the restatement adjustment and as restated columns for the restated financial statements. On February 1, 2010, the Company issued 10,375 shares of Series A Cumulative Preferred Stock (the “Series A Preferred Stock”). The holders of the Series A Preferred Stock are entitled to receive semiannual cumulative, non-compounded dividends on each outstanding share of Series A Preferred Stock at the rate of 10.0% of the issuance price per annum (“Series A Preferred Dividends”), which began to accumulate effective January 1, 2010, when and as declared by the Company’s board of directors. The board has not declared any cash dividends on the Series A Preferred Stock. In 2015 and 2016, the Company issued shares of common stock to preferred stockholders who agreed to accept the common stock in lieu of cash dividends on the Series A Preferred Stock. From February 1, 2010 through December 31, 2016, the Company recorded a liability for accumulated undeclared Series A Preferred Dividends and a related reduction to additional paid in capital. In its Form 10-Q for the quarter ended March 31, 2017 filed with the Securities and Exchange Commission on May 15, 2017, the Company reported the unpaid dividends in the footnotes to the condensed consolidated financial statements but not as a liability and related reduction to paid in capital as previously reported. This Form 10-Q/A to our Form 10-Q for the quarter ended March 31, 2017 includes the restated financial statements described above and related footnote disclosure and reflects a return to the reporting methodology previously utilized by the Company concerning the undeclared preferred dividends. |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) |
Mar. 31, 2017 |
Dec. 31, 2016 |
|---|---|---|
| Common stock, par value | $ 0.01 | $ 0.01 |
| Common stock, shares authorized | 50,000,000 | 50,000,000 |
| Common stock, issued | 10,567,235 | 10,567,235 |
| Treasury Stock, Shares | 5,655 | |
| Interest Payable, Current | $ 13,208 | $ 13,208 |
| Series A Preferred stock | ||
| Preferred stock, par value | $ 0.01 | $ 0.01 |
| Preferred stock, shares authorized | 20,000 | 20,000 |
| Preferred stock, shares issued | 10,375 | 10,375 |
Condensed Consolidated Statements of Operations - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
| General & administrative expenses | $ 110,486 | $ 169,246 |
| Loss from operations | (110,486) | (169,246) |
| Interest expense | (12,278) | 0 |
| Sale of Banyan Medical Partners | 117,756 | 0 |
| Net loss | (5,008) | (169,246) |
| Dividends for the benefit of preferred stockholders: | ||
| Preferred stock dividends | 0 | (25,945) |
| Total dividends for the benefit of preferred stockholders | 0 | (25,945) |
| Net loss attributable to common stockholders | $ (5,008) | $ (195,191) |
| Weighted average number of common shares outstanding: | ||
| Basic and diluted | 10,567,235 | 10,331,487 |
| Net loss per common share from continuing operations, basic and diluted | $ (0.00) | $ (0.02) |
| Net loss attributable to common stockholders per share | $ (0.00) | $ (0.02) |
Nature of Operations |
3 Months Ended | |
|---|---|---|
Mar. 31, 2017 | ||
| Organization, Consolidation and Presentation Of Financial Statements [Abstract] | ||
| Nature of Operations | Note 1. Nature of Operations Banyan Rail Services Inc. (the “Company”), was originally organized under the laws of the Commonwealth of Massachusetts in 1985 and was reorganized as a Delaware corporation in 1987. In 2016, our management team determined to pursue the acquisition, purchase and management of well-located medical office buildings throughout the United States with the intention of aggregating multiple properties with strong fundamentals in certain attractive geographic locations, particularly in the sunbelt states. We believe that investing in medical office buildings will generate strong cash flow and produce significantly increased value for our stockholders. Although we believe the acquisition and ownership of medical office buildings is fundamentally sound, there is no assurance that we will be successful in this endeavor or that we can locate, acquire and finance the acquisition of these properties. For more information concerning these risks, please see Part II, Section 1A – “Risk Factors.” In preparation for this new strategy, our management team is focused on repositioning the Company, both operationally and financially. In addition to seeking equity and debt financing, we have taken the actions described below under “Recent Events” to strengthen our balance sheet and pursue our new strategy. |
Principles of Consolidation and Basis of Presentation |
3 Months Ended | |
|---|---|---|
Mar. 31, 2017 | ||
| Organization, Consolidation and Presentation Of Financial Statements [Abstract] | ||
| Principles of Consolidation and Basis of Presentation | Note 2. Principles of Consolidation and Basis of Presentation Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All inter-company account balances have been eliminated in consolidation. Basis of Presentation The accompanying condensed consolidated financial statements give effect to all adjustments necessary to present fairly the financial position and results of operations and cash flows of the Company and its subsidiaries. |
Going Concern |
3 Months Ended | |
|---|---|---|
Mar. 31, 2017 | ||
| Organization, Consolidation and Presentation Of Financial Statements [Abstract] | ||
| Going Concern | Note 3. Going Concern Our independent certified public accounting firm issued its report dated March 27, 2017 in connection with the audit of our financial statements for the year ended December 31, 2016 that included an explanatory paragraph describing the existence of conditions that raise substantial doubt about the Company’s ability to continue as a going concern. The Company does not currently generate revenue and is dependent on generating funds through debt or equity capital raises to cover its general and administrative costs. The accompanying condensed consolidated financial statements have been prepared and are presented assuming the Company’s ability to continue as a going concern. The accompanying unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty. The Company recognized a net loss of $5,008 and $169,246 for the three months ended March 31, 2017 and 2016, respectively. At March 31, 2017, the Company had net working capital of $244,375 as compared to net working capital deficit of ($567,770) at December 31, 2016. In February 2017, we began approaching certain accredited investors offering unregistered shares of the Company’s common stock for $0.15 a share in order to raise working capital and fund our operations (the “2017 Private Placement”). On May 15, 2017, we accepted subscriptions for $1,369,755 in the 2017 Private Placement which will result in the issuance of 9,131,700 shares of our common stock. The issuances of common stock were made in reliance on section 4(2) of the Securities Act of 1933 for the offer and sale of securities not involving a public offering and rule 506 of Regulation D of the Securities Act. |
Summary of Significant Accounting Policies |
3 Months Ended | |
|---|---|---|
Mar. 31, 2017 | ||
| Accounting Policies [Abstract] | ||
| Summary of Significant Accounting Policies | Note 4. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements, in conformity with accounting principles generally accepted in the United States ("U.S. GAAP"), requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash The Company considers all cash, bank deposits and highly liquid investments with an original maturity of three months or less to be cash equivalents. From time to time our cash deposits exceed federally insured limits and currently the cash balance exceeds federally insured limits by $423,043. Fair Value of Financial Instruments Recorded financial instruments as of March 31, 2017 consist of cash, prepaid expenses, accounts payable, accrued liabilities and short-term obligations. The related fair values of these financial instruments approximated their carrying values due to either the short-term nature of these instruments or based on the interest rates currently available to the Company. Income (Loss) Per Common Share The Company computes net income (loss) per common share in accordance with the provision included in ASC 260, Earnings per Share (“ASC 260”). Under ASC 260, basic and diluted income (loss) per share is computed by dividing net income (loss) available to stockholders by the weighted average number of common shares and common share equivalents outstanding during the period. Basic loss per common share excludes the effect of potentially dilutive securities, while diluted loss per common share reflects the potential dilution that would occur if securities or other contracts to issue common shares were exercised for, converted into or otherwise resulted in the issuance of common shares. Income Taxes The Company accounts for income taxes in accordance with ASC 740, Accounting for Income Taxes, as clarified by ASC 740-10, Accounting for Uncertainty in Income Taxes. Under this method, deferred income taxes are determined based on the estimated future tax effects of differences between the financial statement and tax basis of assets and liabilities given the provisions of enacted tax laws. Deferred income tax provisions and benefits are based on changes to the assets or liabilities from year to year. In providing for deferred taxes, the Company considers tax regulations of the jurisdictions in which the Company operates, estimates of future taxable income, and available tax planning strategies. If tax regulations, operating results or the ability to implement tax-planning strategies vary, adjustments to the carrying value of deferred tax assets and liabilities may be required. Valuation allowances are recorded related to deferred tax assets based on the “more likely than not” criteria of ASC 740. ASC 740-10 requires that the Company recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the “more-likely-than-not” threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. Retained Earnings Distributions The Company’s preferred stockholders are entitled to receive payment before any of the common stockholders upon a liquidation of the Company, and we cannot pay dividends on our common stock unless we first pay dividends required by our preferred stock. Preferred Stock Dividends The holders of Series A Preferred Stock shall be entitled to receive cumulative, non-compounded cash dividends on each outstanding share of Series A Preferred Stock at the rate of 10.0% of the Issuance Price per annum (“Series A Preferred Dividends”), which began accumulating on January 1, 2010. The Series A Preferred Dividends shall be payable semiannually to the holders of Series A Preferred Stock, when and as declared by the Board of Directors. As of March 31, 2017 and December 31, 2016, no dividends have been declared by the board of directors. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either a full retrospective or retrospective with cumulative effect transition method. In August 2015, the FASB issued ASU 2015-14 which defers the effective date of ASU 2014-09 one year making it effective for annual reporting periods beginning after December 15, 2018. As the Company does not yet generate revenue, adoption of the standard is expected to have no impact on the accompanying condensed consolidated financial statements. During 2016, the FASB has issued Accounting Standards Updates (“ASUs”) 2016-01 through 2016-17. Except for ASU 2016-02, 2016-09, and 2016-15, which are discussed below, these ASUs provide technical corrections or simplification to existing guidance and to specialized industries or entities and therefore are expected to have a minimal, if any, impact on the Company. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires lessees to recognize most leases on the balance sheet. The provisions of this ASU are effective for annual periods beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. Because neither the Company nor any of its subsidiaries are parties to any leases, this ASU had no impact on the accompanying condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The objective of this ASU is to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. This ASU is adopted and is not expected to have a material impact on the Company’s condensed consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This ASU is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017, with early adoption permitted. The implementation of this ASU is not expected to have a material impact on the Company’s condensed consolidated financial statements. |
Preferred Stock and Common Stock |
3 Months Ended | |||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||
| Equity [Abstract] | ||||||||||||||||||||||||||||||||||
| Preferred Stock and Common Stock | Note 5. Preferred Stock and Common Stock In April 2017, we offered shares of our common stock to the holders of our preferred stock in exchange for their preferred shares and accumulated dividends on the preferred. Pursuant to the offer, each share of preferred stock would be exchanged for 200 common shares. If all of the preferred stockholders accept, we would issue a total of 2,733,034 shares of our common stock and no shares of preferred stock would remain outstanding, although we cannot predict how many of the preferred stockholders will accept our offer. The offer expires on May 26. In February 2017, we began approaching certain accredited investors offering unregistered shares of the Company’s common stock for $0.15 a share in order to raise working capital and fund our operations (the “2017 Private Placement”). On May 15, 2017, we accepted subscriptions for $1,369,755 in the 2017 Private Placement which will result in the issuance of 9,131,700 shares of our common stock. The issuances of common stock were made in reliance on section 4(2) of the Securities Act of 1933 for the offer and sale of securities not involving a public offering and rule 506 of Regulation D of the Securities Act. Preferred Stock Dividends From the date of the original issuance of the series A preferred stock, February 1, 2010, the Company’s board of directors had not declared the payment of Series A Cumulative Preferred Dividends on the issued and outstanding shares of preferred stock other than for the dividends paid with common shares as discussed below. Certain Series A Preferred stockholders had previously agreed to accept common stock in lieu of cash for payment of Series A Cumulative Preferred Dividends. In February 2016, the Company issued 29,856 shares of common stock in lieu of $29,249 of Series A Preferred Stock Dividends for those Series A Preferred stockholders who accepted the common stock in lieu the of cash offer. Series A Cumulative Preferred Stock Dividends scheduled and accumulated:
As of March 31, 2017, Banyan Rail Holdings LLC (“Banyan Holdings”) and Marino Family Holdings LLC owned 2,726,114 and 3,097,778 shares of common stock of the Company, respectively. |
|||||||||||||||||||||||||||||||||
Income Taxes |
3 Months Ended | |
|---|---|---|
Mar. 31, 2017 | ||
| Income Tax Disclosure [Abstract] | ||
| Income Taxes | Note 6. Income Taxes For the three months ended March 31, 2017 and 2016, the Company recorded an income tax provision of $0. The effective tax rate for the three months ended March 31, 2017 and 2016 was 0%. The tax rate differs from the statutory federal rate of 34% primarily due to valuation allowances recorded on the Company’s net operating loss carry-forward generated during the period. The Company recorded an operating loss for the quarter, and has a recent history of operating losses. After assessing the realization of the net deferred tax assets, we have recorded a valuation allowance of 100% of the value of the net deferred tax assets as we currently believe it is more likely than not that the Company will not realize operating profits and taxable income so as to utilize all of the net operating losses in the near future. |
Earnings (loss) per Share |
3 Months Ended | |
|---|---|---|
Mar. 31, 2017 | ||
| Earnings Per Share [Abstract] | ||
| Earnings (loss) per Share | Note 7. Earnings (loss) per Share The Company excluded from its diluted earnings per share calculation 103,750 shares issuable upon conversion of shares of convertible preferred stock that were outstanding at both March 31, 2017 and 2016, as their inclusion would be anti-dilutive. |
Stock-Based Compensation |
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| Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation | Note 8. Stock-Based Compensation The Company previously had stock option agreements with its directors and officers. Details of options activity is as follows:
Prior to June 30, 2010, the Company had not adopted a formal stock option plan. The number of options issued and the grant dates were determined at the discretion of the Company’s Board. Certain options vest at the date of grant and others vest over a one year period. The options are exercisable for periods not exceeding three to five years from the date of grant. On July 1, 2010, at its annual meeting of stockholders, the 2010 Stock Option and Award Plan was approved. The fair values of stock options are estimated using the Black-Scholes method, which takes into account variables such as estimated volatility, expected holding period, dividend yield, and the risk free interest rate. The risk free interest rate is the five year treasury rate at the date of grant. The expected life is based on the contractual life of the options at the date of grant. |
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Related Party Transactions |
3 Months Ended | |
|---|---|---|
Mar. 31, 2017 | ||
| Related Party Transactions [Abstract] | ||
| Related Party Transactions | Note 9. Related Party Transactions On July 27, 2016, the Company entered into a Demand Note and Loan Agreement (the “Note”) with Boca Equity Partners LLC (“BEP”) providing for draws of up to $250,000. Loans under the Note bear interest at an annual rate of 10% and outstanding principal and interest were due on demand. This Note was cancelled and terminated on December 31, 2016 when the Company entered into a new Demand Note and Loan Agreement (the “New Note”) with BEP. The New Note balance at March 31, 2017 was $342,536 which represents advances from BEP under the New Note, payments made since the date of the New Note and interest accrued thereon. The New Note bears interest at the rate of 10% per annum and is payable upon demand. BEP may, but is not required to, make advances to the Company as the Company may from time to time request. Gary O. Marino, the Company’s chairman of the board, is the chairman, president, and chief executive officer of BEP. Mr. Marino, Mr. Paul S. Dennis, the Company’s interim chief executive officer, interim president and interim chief financial officer, and Donald S. Denbo, a member of the Company's board of directors, also hold membership interests in BEP. During 2016, the Company established a wholly-owned subsidiary, Banyan Medical Partners, LLC (“BMP”), and certain other subsidiaries wholly-owned by BMP. The company formed these entities to acquire medical office buildings in the United States. The Company was unable to raise the capital needed to consummate the first medical building opportunity. On March 9, 2017, the Company sold BMP and BMP’s wholly-owned subsidiaries to Patriot Equity, LLC, a limited liability company owned solely by Gary O. Marino, the Company’s chairman of the board. The selling price was $277,756 in the form of BMP assuming a portion of the Company’s note payable balance due to BEP. The consideration of $277,756 was used to recoup the $110,000 in property deposits as of December 31, 2016 and other 2016 and 2017 expenses incurred by the Company on behalf of BMP. There was a gain on the sale of the subsidiary of $117,756, which primarily came from reimbursement of previously paid expenses by BEP for cost related to acquiring the property. The Company’s directors are currently not receiving cash compensation for their services, and no amounts have been recorded in the Company’s financial statements for the value of their services as of March 31, 2017. The Company’s board of directors and officers beneficially own 7,092,375 shares of the Company’s common stock as of March 31, 2017 67.12% of the outstanding common stock. |
Subsequent Events |
3 Months Ended | |
|---|---|---|
Mar. 31, 2017 | ||
| Subsequent Events [Abstract] | ||
| Subsequent Events | Note 10. Subsequent Events In February 2017, we began approaching certain accredited investors offering unregistered shares of the Company’s common stock for $0.15 a share in order to raise working capital and fund our operations (the “2017 Private Placement”). On May 15, 2017, we accepted subscriptions for $1,369,755 in the 2017 Private Placement which will result in the issuance of 9,131,700 shares of our common stock. The issuances of common stock were made in reliance on section 4(2) of the Securities Act of 1933 for the offer and sale of securities not involving a public offering and rule 506 of Regulation D of the Securities Act. On April 17, 2017 and May 1, 2017, the Company paid down portions of the note payable under the New Note in the amounts of $150,000 and $100,000, respectively. |
Restatement |
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| Accounting Changes and Error Corrections [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restatement | Note 11. Restatement MedAmerica Properties Inc., formerly known as Banyan Rail Services Inc. (the “Company”), is restating its condensed consolidated balance sheet as of March 31, 2017, and its condensed consolidated statement of stockholders’ (deficit) equity for the period ended March 31, 2017. The restatement shows the as previously filed, restatement adjustment and as restated columns for the balance sheet as of March 31, 2017. On February 1, 2010, the Company issued 10,375 shares of Series A Cumulative Preferred Stock (“Series A Preferred Stock”). The holders of the Series A Preferred Stock are entitled to receive cumulative, non-compounded dividends on each outstanding share of Series A Preferred Stock at the rate of 10.0% of the issuance price per annum (“Series A Preferred Dividends”), which shall begin to accumulate effective January 1, 2010. The Series A Preferred Dividends shall be payable semiannually to the holders of Series A Preferred Stock, when declared by the board of directors. From the date of the original issuance of the Series A Preferred Stock, February 1, 2010, the Company’s board of directors had not declared the payment of Series A Preferred Dividends on the issued and outstanding shares of preferred stock other than for those dividends paid with common shares. In 2015 and 2016, the board of directors declared Series A Preferred Dividends for certain Series A Preferred Stock holders had agreed to accept common stock in lieu of cash for payment of Series A Preferred Dividends. From February 1, 2010 through December 31, 2016, the Company had been recording a liability for accumulated undeclared Series A Preferred Dividends and a related reduction to additional paid-in-capital. The Company should have continued recording a liability on the Company’s balance sheet but inadvertently did not. This restatement reflects the continuation of the dividend policy. This Amendment on Form 10-Q/A to our Form 10-Q for the quarter ended March 31, 2017 which was filed with the SEC on May 15, 2017, is being filed to reflect the restatement of our condensed consolidated financial statements, the footnotes to our financial statements and other disclosures as necessary. The following statements present the effect of this restatement. The following table presents the condensed consolidated balance sheet as previously reported, restatement adjustment, and as restated as of March 31, 2017:
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Summary of Significant Accounting Policies (Policies) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2017 | ||
| Accounting Policies [Abstract] | ||
| Use of Estimates | Use of Estimates The preparation of financial statements, in conformity with accounting principles generally accepted in the United States ("U.S. GAAP"), requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
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| Cash | Cash The Company considers all cash, bank deposits and highly liquid investments with an original maturity of three months or less to be cash equivalents. From time to time our cash deposits exceed federally insured limits and currently the cash balance exceeds federally insured limits by $423,043. |
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| Fair Value of Financial Instruments | Fair Value of Financial Instruments Recorded financial instruments as of March 31, 2017 consist of cash, prepaid expenses, accounts payable, accrued liabilities and short-term obligations. The related fair values of these financial instruments approximated their carrying values due to either the short-term nature of these instruments or based on the interest rates currently available to the Company. |
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| Income (Loss) Per Common Share | Income (Loss) Per Common Share The Company computes net income (loss) per common share in accordance with the provision included in ASC 260, Earnings per Share (“ASC 260”). Under ASC 260, basic and diluted income (loss) per share is computed by dividing net income (loss) available to stockholders by the weighted average number of common shares and common share equivalents outstanding during the period. Basic loss per common share excludes the effect of potentially dilutive securities, while diluted loss per common share reflects the potential dilution that would occur if securities or other contracts to issue common shares were exercised for, converted into or otherwise resulted in the issuance of common shares. |
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| Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC 740, Accounting for Income Taxes, as clarified by ASC 740-10, Accounting for Uncertainty in Income Taxes. Under this method, deferred income taxes are determined based on the estimated future tax effects of differences between the financial statement and tax basis of assets and liabilities given the provisions of enacted tax laws. Deferred income tax provisions and benefits are based on changes to the assets or liabilities from year to year. In providing for deferred taxes, the Company considers tax regulations of the jurisdictions in which the Company operates, estimates of future taxable income, and available tax planning strategies. If tax regulations, operating results or the ability to implement tax-planning strategies vary, adjustments to the carrying value of deferred tax assets and liabilities may be required. Valuation allowances are recorded related to deferred tax assets based on the “more likely than not” criteria of ASC 740. ASC 740-10 requires that the Company recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the “more-likely-than-not” threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. |
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| Retained Earnings distributions | Retained Earnings Distributions The Company’s preferred stockholders are entitled to receive payment before any of the common stockholders upon a liquidation of the Company, and we cannot pay dividends on our common stock unless we first pay dividends required by our preferred stock. |
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| Preferred Stock Dividends | Preferred Stock Dividends The holders of Series A Preferred Stock shall be entitled to receive cumulative, non-compounded cash dividends on each outstanding share of Series A Preferred Stock at the rate of 10.0% of the Issuance Price per annum (“Series A Preferred Dividends”), which began accumulating on January 1, 2010. The Series A Preferred Dividends shall be payable semiannually to the holders of Series A Preferred Stock, when and as declared by the Board of Directors. As of March 31, 2017 and December 31, 2016, no dividends have been declared by the board of directors. |
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| Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either a full retrospective or retrospective with cumulative effect transition method. In August 2015, the FASB issued ASU 2015-14 which defers the effective date of ASU 2014-09 one year making it effective for annual reporting periods beginning after December 15, 2018. As the Company does not yet generate revenue, adoption of the standard is expected to have no impact on the accompanying condensed consolidated financial statements. During 2016, the FASB has issued Accounting Standards Updates (“ASUs”) 2016-01 through 2016-17. Except for ASU 2016-02, 2016-09, and 2016-15, which are discussed below, these ASUs provide technical corrections or simplification to existing guidance and to specialized industries or entities and therefore are expected to have a minimal, if any, impact on the Company. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires lessees to recognize most leases on the balance sheet. The provisions of this ASU are effective for annual periods beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. Because neither the Company nor any of its subsidiaries are parties to any leases, this ASU had no impact on the accompanying condensed consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The objective of this ASU is to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. This ASU is adopted and is not expected to have a material impact on the Company’s condensed consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This ASU is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2017, with early adoption permitted. The implementation of this ASU is not expected to have a material impact on the Company’s condensed consolidated financial statements. |
Preferred Stock and Common Stock (Tables) |
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| Equity [Abstract] | ||||||||||||||||||||||||||||||||||
| Schedule of Preferred Stock Dividends scheduled and accumulated | Series A Cumulative Preferred Stock Dividends scheduled and accumulated:
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Stock-Based Compensation (Tables) |
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| Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Option Activities | The Company previously had stock option agreements with its directors and officers. Details of options activity is as follows:
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Restatement (Tables) |
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| Accounting Changes and Error Corrections [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Condensed Consolidated Balance Sheet as Previously Reported, Restatement Adjustment, and As Restated | The following table presents the condensed consolidated balance sheet as previously reported, restatement adjustment, and as restated as of March 31, 2017:
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Going Concern - Additional Information (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|---|
May 15, 2017 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
Feb. 28, 2017 |
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| Net Income (Loss) | $ (5,008) | $ (169,246) | $ (872,609) | ||
| Working Capital | $ 244,375 | $ (567,770) | |||
| Shares Issued, Price Per Share | $ 0.15 | ||||
| Subsequent Event [Member] | |||||
| Proceeds from Issuance of Private Placement | $ 1,369,755 | ||||
| Stock Issued During Period, Shares, New Issues | 9,131,700 | ||||
Summary of Significant Accounting Policies - Additional Information (Details) |
3 Months Ended |
|---|---|
|
Mar. 31, 2017
USD ($)
| |
| Significant Accounting Policies [Line Items] | |
| Percentage Of Income Tax Examination Likelihood Of Tax Benefits Being Realized Upon Settlement | 50.00% |
| Preferred Stock, Dividend Rate, Percentage | 10.00% |
| Cash, FDIC Insured Amount | $ 423,043 |
Preferred Stock and Common Stock (Details) - USD ($) |
6 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|
Dec. 31, 2016 |
Jun. 30, 2016 |
Dec. 31, 2016 |
Mar. 31, 2017 |
Dec. 31, 2015 |
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| Class of Stock [Line Items] | |||||
| Accumulated | $ 329,017 | $ 329,017 | $ 329,017 | ||
| Scheduled | 103,750 | ||||
| Series A Cumulative Preferred Stock [Member] | |||||
| Class of Stock [Line Items] | |||||
| Accumulated | 329,017 | $ 277,142 | $ 329,017 | $ 254,517 | |
| Scheduled | $ 51,875 | $ 22,625 | |||
Income Taxes - Additional Information (Details) - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
| Income Tax [Line Items] | ||
| Income Tax Expense (Benefit) | $ 0 | $ 0 |
| Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 0.00% | 0.00% |
| Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 34.00% | |
| Percentage Of Valuation Allowance | 100.00% | |
Earnings (loss) per Share (Details Textual) - shares |
3 Months Ended | |
|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
| Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 103,750 | 103,750 |
| Convertible Preferred Stock, Shares Issued upon Conversion | 0 | 0 |
Stock-Based Compensation (Stock Option Activities) (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |
|---|---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
| Number of shares | |||
| Beginning Balance | 0 | 5,000 | |
| Options granted | 0 | 0 | |
| Options exercised | 0 | 0 | |
| Options expired | 0 | (5,000) | |
| Ending Balance | 0 | 0 | 5,000 |
| Weighted Average Exercise Price per Share | |||
| Beginning Balance | $ 0 | $ 10.30 | |
| Options granted | 0 | 0 | |
| Options exercised | 0 | 0 | |
| Options expired | 0 | (10.30) | |
| Ending Balance | 0 | 0 | $ 10.30 |
| Weighted Average Fair Value at Grant Date | |||
| Options granted | $ 0 | $ 0 | |
| Weighted Average Remaining Contractual Life | |||
| Weighted Average Remaining Contractual Life | 0 years | 6 months | |
| Intrinsic Value | |||
| Beginning Balance | $ 0 | $ 0 | |
| Options granted | 0 | 0 | |
| Options exercised | 0 | 0 | |
| Options expired | 0 | 0 | |
| Ending Balance | $ 0 | $ 0 | $ 0 |
Stock-Based Compensation - Additional Information (Details) - Stock Option and Award Plan 2010 [Member] |
3 Months Ended |
|---|---|
Mar. 31, 2017 | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year |
| Minimum [Member] | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 3 years |
| Maximum [Member] | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years |
Related Party Transactions - Additional Information (Details) - USD ($) |
3 Months Ended | ||||
|---|---|---|---|---|---|
Mar. 09, 2017 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
Jul. 27, 2016 |
|
| Related Party Transaction [Line Items] | |||||
| Notes Payable, Related Parties, Current | $ 342,536 | $ 471,826 | |||
| Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | $ 277,756 | ||||
| Deposits Assets, Current | 0 | $ 110,000 | |||
| Gain (Loss) on Disposition of Business | $ 117,756 | $ 0 | |||
| Board of directors, officers, and officers of subsidiary [Member] | |||||
| Related Party Transaction [Line Items] | |||||
| Ownership of related party in common Stock | 7,092,375 | ||||
| Percentage Of Outstanding Of Common Stock | 67.12% | ||||
| Boca Equity Partners LLC [Member] | |||||
| Related Party Transaction [Line Items] | |||||
| Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000 | ||||
| Line of Credit Facility, Interest Rate at Period End | 10.00% | ||||
Subsequent Events - Additional Information (Details) - USD ($) |
1 Months Ended | 3 Months Ended | ||||
|---|---|---|---|---|---|---|
May 01, 2017 |
May 15, 2017 |
Apr. 17, 2017 |
Mar. 31, 2017 |
Mar. 31, 2016 |
Feb. 28, 2017 |
|
| Subsequent Event [Line Items] | ||||||
| Shares Issued, Price Per Share | $ 0.15 | |||||
| Repayments of Related Party Debt | $ 268,101 | $ 0 | ||||
| Subsequent Event [Member] | ||||||
| Subsequent Event [Line Items] | ||||||
| Stock Issued During Period, Shares, New Issues | 9,131,700 | |||||
| Repayments of Related Party Debt | $ 100,000 | $ 150,000 | ||||
| Proceeds from Issuance of Private Placement | $ 1,369,755 | |||||
Restatement - Additional Information (Details) - USD ($) |
3 Months Ended | ||
|---|---|---|---|
Feb. 01, 2010 |
Mar. 31, 2017 |
Dec. 31, 2016 |
|
| Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
| Preferred Stock, Dividend Rate, Percentage | 10.00% | ||
| Interest Payable, Current | $ 13,208 | $ 13,208 | |
| Treasury Stock, Shares | 5,655 | ||
| Series Preferred Stock [Member] | |||
| Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
| Stock Issued During Period, Shares, New Issues | 10,375 | ||
| Preferred Stock, Dividend Rate, Percentage | 10.00% |