NOTES
TO (UNAUDITED) FINANCIAL STATEMENTS
NOTE
1 – ORGANIZATION AND DESCRIPTION OF BUSINESS
Health
Revenue Assurance Holdings, Inc. (the “Company”) intended to become a provider of revenue cycle services to a broad range
of healthcare providers. We offer our customers integrated solutions designed around their specific business needs, including revenue
cycle data analysis, contract and outsourced coding, billing, coding and compliance audits, coding education, coding consulting, physician
coding services and ICD-10 education and transition services.
On
February 10, 2012, HRAA entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) with Health
Revenue Assurance Holdings, Inc. (formerly known as Anvex International, Inc., “HRAH”), a Nevada company, and its wholly-owned
subsidiary Health Revenue Acquisition Corporation (“Acquisition Sub”), which was treated for accounting purposes as a reverse
recapitalization with HRAA, considered the accounting acquirer. Each share of HRAA’s common stock was exchanged for the right to
receive approximately 1,271 shares of HRAH’s common stock. Before their entry into the Merger Agreement, no material relationship
existed between HRAH and Acquisition Sub or HRAA.
The
Company has been dormant since August 2014.
On
July 14, 2020, as a result of a custodianship in Clark County, Nevada, Case Number: A816259, Custodian Ventures LLC (“Custodian”)
was appointed Custodian of the Company.
On
July 15, 2020 Custodian appointed David Lazar as the Company’s Chief Executive Officer, President, Secretary, Chief
Financial Officer, Chief Executive Officer and Chairman of the Board of Directors.
NOTE
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis
of Presentation
The
accompanying financial statements have been prepared in accordance with the Financial Accounting Standards Board (“FASB”)
“FASB Accounting Standard Codification™” (the “Codification”) which is the source of authoritative
accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in
conformity with generally accepted accounting principles (“GAAP”) in the United States.
Going
Concern
The
accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization
of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these financial
statements. As of March 31, 2021, the Company had no cash and an accumulated deficit of $10,048,853.
Because
the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises
substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional
funds and is currently exploring alternative sources of financing. Recently the Company being funded by David Lazar who extended interest-free
demand loans to the Company. Historically, the Company raised capital through private placements, to finance working capital needs and
may attempt to raise capital through the sale of common stock or other securities and obtaining some short-term loans. The Company will
be required to continue to so until its operations become profitable. Also, the Company has, in the past, paid for consulting services
with its common stock to maximize working capital, and intends to continue this practice where feasible.
Management’s
Representation of Interim Financial Statements
The
accompanying unaudited financial statements have been prepared by the Company without audit pursuant to the rules and regulations of
the Securities and Exchange Commission (“SEC”). The Company uses the same accounting policies in preparing quarterly and
annual financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance
with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted as allowed by
such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading.
These financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of
financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily
indicative of results for a full year. These financial statements should be read in conjunction with the audited financial statements
and notes thereto on December 31, 2020, as presented in the Company’s Annual Report on Form 10-K.
Use
of Estimates
The
preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the
reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. The most significant estimates relate to income taxes and contingencies.
The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to
be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions
provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other
sources. Actual results could differ from these estimates.
Cash
and cash equivalents
The
Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents.
The Company had no cash on hand as of March 31,2021, and December 31, 2020, respectively.
Income
taxes
The
Company accounts for income taxes under FASB ASC 740, “Accounting for Income Taxes”. Under FASB ASC 740, deferred
tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered
or settled. Under FASB ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in
the period that includes the enactment date. FASB ASC 740-10-05, “Accounting for Uncertainty in Income Taxes” prescribes
a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or
expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained
upon examination by taxing authorities.
The
amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate
settlement. The Company assesses the validity of its conclusions regarding uncertain tax positions quarterly to determine if facts or
circumstances have arisen that might cause it to change its judgment regarding the likelihood of a tax position’s sustainability
under audit.
Net
Loss per Share
Net
loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined
by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”)
calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year.
Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares
and dilutive common share equivalents outstanding.
Recent
Accounting Pronouncements
There
are no recent accounting pronouncements that impact the Company’s operations.
NOTE
3 – EQUITY
Common
Stock
The
Company has authorized 500,000,000 shares of $0.001 par value, common stock. As of March 31, 2021 and December 31, 2020,
there were 68,346,042 shares of Common Stock issued and outstanding.
Preferred
Stock
On
November 16, 2021, the Company created, out of the Twenty-five Million (25,000,000) shares of preferred stock, par value $0.001 per
share, of Series A-1 Preferred Stock, consisting of Ten Million (10,000,000) shares, which are convertible to common stock at the
conversion ratio of 72 shares of common stock for each share of common stock. These shares were awarded to Custodian Ventures managed
by David Lazar for services performed for the Company. These shares were valued at par value assuming all of the preferred shares were
converted to common stock, or $720,000 which was recorded as stock based compensation. As of March 31, 2020 and December 31, 2020
there were 10,000,000 shares of preferred A-1 stock outstanding.
NOTE
4 – RELATED PARTY NOTES PAYABLE
As
of March 31,2021, Custodian Ventures had lent $25,640 to the Company in the form of an interest-free demand loan.
NOTE
5 – COMMITMENTS AND CONTINGENCIES
The
Company did not have any contractual commitments as of March 31,2021 and December 31, 2020.
NOTE
6 – SUBSEQUENT EVENTS
In
accordance with SFAS 165 (ASC 855-10) management has performed an evaluation of subsequent events through the date that the financial
statements were available to be issued and has determined that it does not have any material subsequent events to disclose in these financial
statements: