ER Urgent Care Centers Releases Second Quarter Financials
Posted on: Wednesday, 1 November 2006, 18:00 CST
ER Urgent Care Centers (PINKSHEETS: ERUG) is proud to announce the release of our second quarter financials. Once again, we have demonstrated in all major categories significant increases: Increases in revenues, assets and account receivables are primary; and Declines in liability and expenses in spite of additional centers being opened. "These financials exemplify our commitment to the future and our goals of growth and profitability," said Jerry Miller, Founder and Director. We appreciate the support of our shareholders and we look forward to seeing you for a visit at our clinics.
ER URGENT CARE HOLDINGS, INC. BALANCE SHEETS June 30, December 31, 2006 2005 ----------- ----------- ASSETS Current assets: Cash and cash equivalents $ 437,859 $ 11,540 Accounts receivable, net 971,497 568,498 Medical supply inventory - 35,998 ----------- ----------- Total current assets 1,409,356 616,036 Property and equipment, net 315,528 316,357 Deposits 34,107 34,107 ----------- ----------- TOTAL ASSETS $ 1,758,991 $ 966,500 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY) Current Liabilities: Accounts payable and accrued liabilities $ 105,102 $ 161,133 Legal settlements payable 285,129 345,129 Loans from shareholders 135,284 229,076 ----------- ----------- Total current liabilities 525,515 735,338 ----------- ----------- TOTAL LIABILITIES 525,515 735,338 Commitments and contingencies Shareholders' Equity (deficiency): Common stock, 1,000,000,000 shares at $.0001 par value authorized, 86,299,728 shares issued and outstanding 8,630 7,764 Additional paid in capital 5,912,294 4,494,702 Accumulated deficit (4,687,448) (4,271,304) ----------- ----------- TOTAL SHAREHOLDERS' EQUITY (DEFICIENCY) 1,233,476 231,162 ----------- ----------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY) $ 1,758,991 $ 966,500 =========== =========== The accompanying notes are an integral part of these financial statements. ER URGENT CARE HOLDINGS, INC. STATEMENTS OF OPERATIONS For The Three Months For The Six Months Ended June 30, June 30, ---------------------- ---------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Revenues $ 449,939 210,430 $ 897,286 359,606 General and administrative expenses 736,376 433,971 1,313,008 883,158 ---------- ---------- ---------- ---------- Loss from operations (286,437) (223,541) (415,722) (523,552) ---------- ---------- ---------- ---------- Other expense: Interest expense 153 183 420 295 ---------- ---------- ---------- ---------- 153 183 420 295 Net loss before income taxes (286,590) (223,724) (416,142) (523,847) Provision (benefit) for income taxes - - - - ---------- ---------- ---------- ---------- Net loss $ (286,590) $ (223,724) $ (416,142) $ (523,847) ========== ========== ========== ========== Weighted average common shares outstanding-basic and diluted 81,813,561 62,359,674 79,721,376 67,464,132 ========== ========== ========== ========== Basic and diluted loss per common share $ (0.00) $ (0.00) $ (0.01) $ (0.01) ========== ========== ========== ========== The accompanying notes are an integral part of these financial statements.
ER URGENT CARE HOLDINGS, INC. STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIENCY) Common Stock 1,000,000,000 shares authorized -------------------------- Par Value Additional Shares $.0001 per Paid-in Issued share Capital ------------- ------------- ------------ BALANCE - DECEMBER 31, 2003 994,480 $ 100 $ 3,180,998 Issuance of common stock 56,260,735 5,625 382,419 Less: capital acquisition costs (144,612) Net loss - - - ------------- ------------- ------------ BALANCE - DECEMBER 31, 2004 57,255,215 $ 5,725 $ 3,418,805 Net issuance of common stock 20,387,835 2,039 1,239,325 Less: capital acquisition costs (163,428) Net Loss - - - ------------- ------------- ------------ BALANCE - DECEMBER 31, 2005 77,643,050 $ 7,764 $ 4,494,702 ============= ============= ============ Accumulated Deficit Total ------------ ------------ BALANCE - DECEMBER 31, 2003 $ (3,183,424) $ (2,326) Issuance of common stock - 388,044 Less: capital acquisition costs (144,612) Net loss (521,975) (521,975) ------------ ------------ BALANCE - DECEMBER 31, 2004 $ (3,705,399) $ (280,869) Net issuance of common stock 1,241,364 Less: capital acquisition costs (163,428) Net Loss (565,905) (565,905) ------------ ------------ BALANCE - DECEMBER 31, 2005 $ (4,271,304) $ 231,162 ============ ============ The accompanying notes are an integral part of these financial statements. ER URGENT CARE HOLDINGS, INC. STATEMENTS OF CASH FLOWS For The Six Months Ended June 30, ---------------------- 2006 2005 ---------- ---------- Cash flows from operating activities: Net loss $ (416,142) $ (523,847) Adjustments to reconcile net loss to net cash used in operating activities: Allowance for doubtful accounts - 220,646 Depreciation expense 62,322 52,573 Changes in operating assets and liabilities: Inventory 35,998 - Accounts receivable (402,999) (313,612) Accounts payable and accrued expenses (56,031) (13,983) Legal settlements payable (60,000) (75,000) ---------- ---------- Net cash used in operating activities (836,852) (653,223) ---------- ---------- Cash flows used in investing activities: Purchase of equipment (61,493) (84,648) ---------- ---------- Net cash used in investing activities (61,493) (84,648) ---------- ---------- Cash flow from financing activities: Proceeds from (repayment of) shareholder loans (93,792) 189,135 Net issuance of common stock including capital acquisition costs 1,418,456 521,769 ---------- ---------- Net cash provided by financing activities 1,324,664 710,904 ---------- ---------- Net increase in cash 426,319 (26,967) Cash - Beginning of year 11,540 (13,416) ---------- ---------- Cash - End of year $ 437,859 $ (40,383) ========== ========== Supplemental Disclosure of Cash Flow Information: Cash paid for interest $ 420 $ 295 ========== ========== Cash paid for taxes $ - $ - ========== ========== The accompanying notes are an integral part of these financial statements.
ER URGENT CARE HOLDINGS, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 2006
NOTE 1 -- DESCRIPTION OF ORGANIZATION
Organization -- ER Urgent Care Holdings, Inc. (Company) is a domestic corporation that was formed in September 2000. The Company operates three emergency care centers in South Florida. These centers provide after-hours health care and offer an alternative to the hospital emergency room.
Basis of accounting -- The financial statements are prepared using the accrual basis of accounting where revenues are recognized upon services provided to patient and expenses are recognized in the period in which they were incurred. The basis of accounting conforms to accounting principles generally accepted in the United States of America.
NOTE 2 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Interim reporting
While the information presented in the accompanying interim three months financial statements is unaudited, it includes all adjustments, which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in accordance with accounting principles generally accepted in the United States of America. These interim financial statements follow the same accounting policies and methods of their application as the December 31, 2005 annual financial statements of ER Urgent Care Holdings, Inc. All adjustments are of a normal recurring nature. It is suggested that these interim financial statements be read in conjunction with the Company's December 31, 2005 annual financial statements.
Operating results for the three and six months ended June 30, 2006 are not necessarily indicative of the results that can be expected for the year ended December 31, 2006.
Going concern
As shown in the accompanying financial statements, the Company has incurred net losses of $286,590 and $223,724 during the three months ended June 30, 2006 and 2005, respectively. These conditions create an uncertainty as to the Company's ability to continue as a going concern. Management plans to increase marketing efforts, expand into additional regions throughout the country by purchase of new centers or by creation of licensing arrangements with existing facilities. The financial statements do no include any adjustments that might be necessary if the Company is unable to continue as a going concern.
Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of these financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue recognition
The Company recognizes revenue in accordance with Staff Accounting Bulletin (SAB) No. 104, "Revenue Recognition in Financial Statements" which established that revenue can be recognized when persuasive evidence of an arrangement exists, all significant contractual obligations have been satisfied, the fee is fixed or determinable and collection is reasonably assured.
Revenue is recognized in the period in which services are performed. Net operating revenues consist primarily of net patient service fees that are recorded based on established billing rates, less estimated discounts for contractual allowances, principally for patients covered by Medicare, Medicaid, managed care and other health plans, and self-pay patients.
Fair value of financial instruments
The carrying amounts of financial instruments, including cash, accounts receivable, accounts payable and accrued expenses approximate fair value at June 30, 2006 because of the relatively short maturity of the instruments.
Cash and cash equivalents
The Company considers all highly liquid debt securities purchased with original or remaining maturities of three months or less to be cash equivalents. The carrying value of cash equivalents approximates fair value.
Accounts receivable
Accounts receivable represents claims submitted to insurance companies that have not yet been received. The Company makes judgments as to the collectibility of accounts receivable based on historical trends and future expectations. Management estimates an allowance for doubtful accounts which represents the collectibility of trade accounts receivable. To determine the allowance for doubtful accounts, management reviews specific customer risks and the Company's accounts receivable aging.
Property and equipment
Property and equipment, including significant improvements, are recorded at cost. Repairs and maintenance and any gains or losses on dispositions are recognized as incurred. Depreciation and amortization is provided for on a straight-line basis to allocate the cost of depreciable assets to operations over their estimated service lives.
Depreciation/ Asset Category Amortization Period -------------------------- ------------------- Medical & office equipment 5 to 7 Years Furniture & fixture 5 to 7 Years Computer equipment 5 Years Leasehold improvements 3 to 5 Years
Income taxes
The Company accounts for income taxes using an asset and liability approach for financial accounting and income tax reporting based on enacted tax rates. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. The Company has recorded a 100% valuation allowance.
Advertising
Advertising costs are charged to expense during the period in which they were incurred. Advertising expenses for the six months ended June 30, 2006 and 2005 were $126,515 and $51,890, respectively.
Loss per share
The Company computes basic and diluted loss per share amounts for June 30, 2006 and 2005 pursuant to the Statement of Financial Accounting Standards (SFAS) No. 128, "Earnings per Share." There are no potentially dilutive shares outstanding and, accordingly, dilutive per share amounts equal basic per share amounts.
New accounting pronouncements
Share-based payment
In December 2004, the Financial Accounting Standards Board (FASB) finalized SFAS 123R, "Share-Based Payment," amending SFAS No. 123. SFAS 123R requires the Company to expense stock options based on grant date fair value in the financial statements. Further, the adoption of SFAS 123R requires additional accounting related to the income tax effects and additional disclosure regarding the cash flow effects resulting from share- based payment arrangements.
The Company has adopted SFAS 123R on January 1, 2006 using the modified prospective method and the adoption thereof is not expected to effect our cash flows, or our results of operations as no share-based compensation arrangements exists.
Accounting changes and error corrections
In May 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error Corrections." SFAS 154 replaces Accounting Principals Board (APB) Opinion No. 20 and SFAS No. 3 "Reporting Accounting Changes in Interim Financial Statements," and applies to all voluntary changes in accounting principle, and changes the requirements for accounting for and reporting of a change in accounting principle. APB 20 previously required that most voluntary changes in accounting principle be recognized by including in net income of the period of change a cumulative effect of changing to the new accounting principle whereas SFAS 154 requires retrospective application to prior periods' financial statements of a voluntary change in accounting principle, unless it is impracticable. SFAS 154 enhances the consistency of financial information between periods. SFAS 154 will be effective beginning the first quarter of fiscal 2007. The Company does not expect the adoption of SFAS 154 will have a material impact on financial position, results of operations, or cash flows.
NOTE 3 -- SUBSEQUENT EVENTS
New Centers -- During 2006, the Company opened a facility in Tampa, Florida. The Company also entered into a licensing agreement with a facility in Kansas City in which they will receive royalties in return for usage of the marks and slogan for ER Urgent Care.
In August 2006, the Company also entered into an agreement to purchase a practice located in Deland, Florida.
Common Stock Issuance -- During the 3rd quarter of 2006, 5,470,400 shares have been issued by the Company for approximate proceeds of $656,450.
About ER Urgent Care
ERUC Management Company Inc. operates ER Urgent Care Centers in the South Florida area. The "true, bona-fide,""Urgent Care Center" is a one-stop shop where patients can receive premier health care, after-hours, at a fraction of the cost of emergency room visits. With the "Urgent Care Center" model emergency rooms will no longer lose money on ER patients with minor injuries and illnesses and the HMOs will no longer have to pay exorbitant claims for non-admitted patients. ER Urgent Care Centers creates a win-win situation for everyone, filling the financial and service gap between primary care physicians (PCPs) and hospital emergency rooms.
For more information visit our Web site at www.erucc.net or sign up for the corporate newsletter at http://www.erucc.net
Or visit our locations at:
700 Ives Dairy Rd. 1601 Meadowlark Lane North Miami Beach, Fl. 33179 Kansas City, Ks. 66102 213 North Federal Highway 7208 Sterling Ave. Hallandale Beach, Fl. 33009 Tampa, Fl. 33614 15463 SW 137th Ave. Family Practice Kendal, Fl. 33177 5535 Memorial Highway Tampa, Fl. 33634 4401 North Andrews Ave. Coming Soon Oakland Park, Fl. 33309 Miami Beach, Fl. 18648 N.W.67th Ave. Miami Lakes, Fl. 33177
ER Urgent Care Centers is a provider for Amerigroup, Avmed, Humana, Aetna, Medicaid/Medipass/Medi-Kids, Total Health Choice, United Health Care, Beech Steet, Dimension Health, Assist Card, Cigna, Corvel, Health Insurance Plans and many more.
This press release may contain forward-looking statements covered within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact and involve risks and uncertainties. Our expectations regarding future revenues depend upon our ability to develop and supply products, which we may not produce today and that meet defined specifications. When used in this press release, the words "plan,""expect,""believe," and similar expressions generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and changes in pervasive markets.
For franchising and corporate information please contact us toll free at 1-877-303-3500.
Contact Information: ER Urgent Care Centers 1-877-303-3500
SOURCE: ER Urgent Care Centers
Source: MARKET WIRE
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