Healthcare Solutions Management Group, Inc. - Quarter Report: 2008 June (Form 10-Q)

(State or other jurisdiction of  incorporation or organization)

(I.R.S. Employer   Identification No.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	Page
Condensed Balance Sheets, June 30, 2008 and September 30, 2007	2
Condensed Statements of Operations, For the Three and Nine Months Ended June 30, 2008 and 2007	3
Condensed Statements of Cash Flows, For the Nine Months Ended June 30, 2008 and 2007	4
Notes to the Condensed Financial Statements	5 - 8

ASSETS
	June 30, 2008   (unaudited)				September 30, 2007
CURRENT ASSETS:
Cash	$		137,343		$			118,904
Accounts receivable			19,200					17,400
Prepaid expenses			1,774					2,406
Total Current Assets			158,317					138,710
PROPERTY AND EQUIPMENT, net			2,434					1,438
DEFINITE-LIFE INTANGIBLE ASSETS			17,965					16,765
TOTAL ASSETS	$		178,716		$			156,913
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable		$	13,300				$	14,788
Customer deposits			118,300					-
Total Current Liabilities			131,600					14,788
DEFERRED INCOME TAX LIABILITY			-					68
Total Liabilities			131,600					14,856
STOCKHOLDERS’ EQUITY (Restated):
Preferred stock, $0.001 par value, 50,000,000 shares authorized, no shares issued and outstanding			-					-
Common stock, $0.001 par value, 50,000,000 shares authorized, 6,000,000 shares issued and outstanding			6,000					6,000
Capital in excess of par value			998,619					998,619
Retained earnings (deficit)			(957,503)					(862,562)
Total Stockholders’ Equity			47,116					142,057
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	178,716				$	156,913

	Three Months						Nine Months
	2008			2007			2008			2007
				(Restated)						(Restated)
REVENUES:
Royalty	$	19,200		$	13,600		$	37,600		$	47,200
OPERATING EXPENSES:
Consulting		190			-			536			204
Professional fees		36,699			9,989			92,699			38,109
Other general and administrative		22,140			5,226			39,331			13,883
Total Operating Expenses		59,029			15,215			132,566			52,196
INCOME (LOSS) FROM OPERATIONS		(39,829)			(1,615)			(94,966)			(4,996)
OTHER INCOME (EXPENSE):
Interest expense		-			(4,212)			(43)			(8,319)
Related party interest expense		-			(1,584)			-			(4,708)
Total Other Income (Expense)		-			(5,796)			(43)			(13,027)
LOSS BEFORE INCOME TAX PROVISION		(39,829)			(7,411)			(95,009)			(18,023)
PROVISION FOR INCOME TAXES		-			-			68			-
NET INCOME (LOSS)	$	(39,829)		$	(7,411)		$	(94,941)		$	(18,023)
BASIC AND DILUTED NET INCOME (LOSS) PER SHARE	$	(0.01)		$	(0.00)		$	(0.02)		$	(0.00)
WEIGHTED AVERAGE SHARES OUTSTANDING	6,000,000			6,000,000			6,000,000			6,000,000

	2008			2007
				(Restated)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(94,941)		$	(18,023)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation		245			169
Imputed interest		-			4,708
Net (increase) decrease in operating assets:
Accounts receivable		(1,800)			600
Prepaid expenses		632			(313)
Net increase (decrease) in operating liabilities:
Accounts payable		(1,488)			52,411
Customer deposits		118,300			-
Unearned revenues		-			(29,500)
Deferred income tax liability		(68)			-
Net Cash Provided by Operating Activities		20,880			10,052
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for property and equipment		(1,241)			-
Payments for definite-life intangible assets		(1,200)			(13,765)
Net Cash Used by Investing Activities		(2,441)			(13,765)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on related party loans		-			(2,000)
Proceeds from related party loans		-			3,600
Net Cash Provided by Financing Activities		-			1,600
NET INCREASE (DECREASE) IN CASH		18,439			(2,113)
CASH AT BEGINNING OF PERIOD		118,904			4,200
CASH AT END OF PERIOD	$	137,343		$	2,087
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	43		$	8,319
Income taxes	$	-		$	-
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:
None

	Estimated Useful Lives		June 30, 2008
Optical equipment	5 years		$	39,386
Office equipment	5 - 10 years			2,927
				42,313
Less accumulated depreciation				(39,879)
Net property and equipment			$	2,434

	Estimated Useful Life		June 30, 2008
Pending patent application	Not Applicable		$	17,965
				17,965
Less accumulated amortization				-
Net definite-life intangible assets			$	17,965

	2008			2007
Current income tax expense (benefit)	$	-		$	-
Deferred income tax expense (benefit)		(68)			-
Net income tax expense (benefit) charged to operations	$	(68)		$	-

	2008			2007
Loss before income tax provision	$	(95,009)		$	(18,023)
Expected federal income tax rate		15.0%			15.0%
Expected income tax expense (benefit) at statutory rate	$	(14,251)		$	(2,703)
Tax effect of:
Parent’s expenses included in operations		-			2,547
Meals and entertainment		379			-
Change in valuation allowance		13,804			156
Net income tax expense (benefit)	$	(68)		$	-

	June 30, 2008
Deferred tax assets:
Organization costs	$	165
Net operating loss carryovers		16,403
Total deferred tax assets	$	16,568
Deferred tax liabilities:
Book basis of patent application	$	(2,695)
Tax depreciation in excess of book		(69)
Total deferred tax liabilities	$	(2,764)
Total deferred tax assets	$	16,568
Total deferred tax liabilities		(2,764)
Valuation allowance		(13,804)
Net deferred tax asset (liability)	$	-

	June 30, 2008
Current deferred tax asset (liability)	$	-
Non-current deferred tax asset (liability)		-
	$	-