0001493152-16-009098.txt : 20160421 0001493152-16-009098.hdr.sgml : 20160421 20160421120102 ACCESSION NUMBER: 0001493152-16-009098 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 39 CONFORMED PERIOD OF REPORT: 20130331 FILED AS OF DATE: 20160421 DATE AS OF CHANGE: 20160421 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ACCELERA INNOVATIONS, INC. CENTRAL INDEX KEY: 0001444144 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-HEALTH SERVICES [8000] IRS NUMBER: 232517763 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-53392 FILM NUMBER: 161583363 BUSINESS ADDRESS: STREET 1: 20511 ABBEY DR. CITY: FRANKFORT STATE: IL ZIP: 60423 BUSINESS PHONE: 8668660758 MAIL ADDRESS: STREET 1: 20511 ABBEY DR. CITY: FRANKFORT STATE: IL ZIP: 60423 FORMER COMPANY: FORMER CONFORMED NAME: ACCELERATED ACQUISITIONS IV INC DATE OF NAME CHANGE: 20080828 10-Q/A 1 form10-qa.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q/A

Amendment No. 1

 

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2013

 

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: 000-53392

 

Accelera Innovations, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

Delaware   26-2517763

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

     
20511 Abbey Drive, Frankfort, Illinois   60423
(Address of Principal Executive Offices)   (Zip Code)

 

Registrant’s telephone number including area code: (866) 866-0758

 

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by 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 last 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 check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (Check one).

 

Large Accelerated Filer [  ]   Accelerated Filer [  ]  

Non-Accelerated Filer [  ]

(Do not check if a smaller reporting company)

  Smaller Reporting Company [X]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ] No [X]

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of May 14, 2013, there were 21,511,812 shares of the registrant’s common stock outstanding. As of April 8, 2016, there were 46,713,716__ shares of the registrant’s common stock outstanding.

 

 

 

 
 

 

Accelera Innovations, Inc.

 

- INDEX -

 

      Page
PART I – FINANCIAL INFORMATION:    
       
Item 1. Financial Statements (unaudited):   4
       
  Condensed Balance Sheets as of March 31, 2013 (Restated) and December 31, 2012   4
       
  Condensed Statements of Operations for the three months ended March 31, 2013 and 2012 and for the Cumulative Period from Inception (April 29, 2008) to March 31, 2013   5
       
  Condensed Statements of Cash Flows for the three months ended March 31, 2013 and 2012 and for the Cumulative Period from Inception (April 29, 2008) to March 31, 2013 (Restated)   6
       
  Notes to Condensed Financial Statements (Restated)   7
       
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations   16
       
Item 3. Quantitative and Qualitative Disclosures About Market Risk   22
       
 Item 4. Controls and Procedures   22
       
PART II – OTHER INFORMATION:    
       
Item 1. Legal Proceedings   22
       
Item 1A. Risk Factors   22
       
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds   22
       
Item 3. Defaults Upon Senior Securities   22
       
Item 4. Mine Safety Disclosures   22
       
Item 5. Other Information   22
       
Item 6. Exhibits   23
       
Signatures   26

 

 2 
   

 

Explanatory Note

 

This quarterly report on Form 10-Q/A (the “Amended Filing”) amends the quarterly report on Form 10-Q of Accelera Innovations, Inc. (the “Company”) for the three months ended March 31, 2013, as originally filed with Securities and Exchange Commission (the “SEC”) on May 20, 2013 (the “Original Filing”), and restates certain financial information presented therein. This Form 10-Q/A is being filed to:

 

  1. Restate the following unaudited financial statements of the Company contained in Part I, Item 1, each in its entirety: (a) condensed balance sheet as of March 31, 2013, and (b) condensed statements of cash flows for the three months ended March 31, 2013 and for the cumulative period from inception (April 29, 2008) to March 31, 2013,
     
  2. Amend the Company’s Management’s Discussion and Analysis of Financial Condition and Results of Operations for the period ended March 31, 2013,
     
  3. Amend disclosure regarding the Company’s sales of unregistered securities during the period ended March 31, 2013,
     
  4. Amend the cover page to the Form 10-Q, and
     
  5. Correct certain typographical errors.

 

As previously disclosed in the Company’s current report on Form 8-K filed with the SEC on July 21, 2015, the Company’s Board of Directors determined that the Company’s financial statements included in: (i) its quarterly reports on Form 10-Q for the periods ended March 31, 2013, June 30, 2013 and September 30, 2013, (ii) its annual report on Form 10-K for the year ended December 31, 2013, (iii) its quarterly reports on Form 10-Q for the periods ended March 31, 2014, June 30, 2014 and September 30, 2014, and (iv) its annual report on Form 10-K for the year ended December 31, 2014 (collectively, the “Financial Statements”) could not be relied on.

 

The Financial Statements contained errors related to (i) issuances of the Company’s preferred stock, the receipt of funds related to these issuances and the accounting for the use of the proceeds from these sales in each of the periods covered by the Financial Statements disclosed above, (ii) disclosure of a related party transactions, and (iii) the valuation of shares of the Company’s common stock issued as compensation.

 

As more fully described in the unaudited financial statements contained herein, management determined that previously issued unaudited financial statements for the three months ended March 31, 2013 contained an error, which was non-cash in nature, relating to the issuance of Company preferred stock, the receipt of funds related to such issuance and the accounting for the use of proceeds from such sale. The Company evaluated the impact of this error under the SEC’s authoritative guidance on materiality and determined that the impact of this error on the unaudited financial statements for the three months ended March 31, 2013 was material. On July 20, 2015, after review by the Company’s independent registered public accounting firm, the Company’s Board of Directors concluded that the Company should restate its unaudited financial statements for the three months ended March 31, 2013 to reflect the correction of the previously identified error in the unaudited financial statements for this period.

 

Except as set forth above, no other information in the Original Filing is amended hereby. This Amended Filing speaks as of the date of the Original Filing and does not reflect any other events occurring after the date of the Original Filing. In addition, currently dated certifications from our Chief Executive Officer and Chief Financial Officer, as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, are attached to this Amended Filing as Exhibits 31.1 and 32.1, respectively.

 

 3 
   

 

PART I — FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

ACCELERA INNOVATIONS, INC.

(A Development Stage Company)

CONDENSED BALANCE SHEETS

 

   March 31, 2013   December 31, 2012 
  

(unaudited)

(Restated)

   (audited) 
ASSETS          
Current Assets          
Cash  $10   $- 
Due from shareholder   194,248      
Total Current Assets   194,258    - 
           
TOTAL ASSETS  $194,258   $- 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current Liabilities          
Accounts payable  $-   $- 
Preferred stock subscription payable   194,248      
Total Current Liabilities   194,248    - 
           
TOTAL LIABILITIES   194,248    - 
           
Stockholders’ Equity          
Preferred stock; $0.0001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding   -    - 
Common stock; 100,000,000 authorized; $0.0001 par value 21,511,812 shares and 21,311,812 shares issued and outstanding as of March 31, 2013 and December 31, 2012 respectively   2,151    2,131 
Additional paid in capital   7,037,614    5,287,534 
Accumulated deficit during development stage   (7,039,755)   (5,289,665)
Total Stockholders’ Equity   10    - 
           
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY  $194,258   $- 

 

The accompanying notes are an integral part of these condensed financial statements.

 

 4 
   

 

ACCELERA INNOVATIONS, INC.

(A Development Stage Company)

CONDENSED STATEMENTS OF OPERATIONS

(unaudited)

 

           April 29, 2008 
   Three Month Periods Ended   (inception) 
   March 31,   through 
   2013   2012   March 31, 2013 
             
Revenues   -    -    - 
                
EXPENSES               
Operating Expenses               
General and administrative  $1,750,090   $33,391   $7,039,755 
Total operating expenses   1,750,090    33,391    7,039,755 
                
NET LOSS  $(1,750,090)  $(33,391)  $(7,039,755)
                
BASIC AND DILUTED LOSS PER SHARE  $(0.08)  $(0.00)     
                
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING   21,505,145    20,567,625      

 

The accompanying notes are an integral part of these condensed financial statements.

 

 5 
   

 

ACCELERA INNOVATIONS, INC.

(A Development Stage Enterprise)

CONDENSED STATEMENTS OF CASH FLOWS

(Restated)

 

           April 29, 2008 
   For the Year Ended   (inception) 
   March 31,   through 
   2013   2012   March 31, 2013 
   (Restated)         
OPERATING ACTIVITIES:               
Net loss  $(1,750,090)  $(33,391)  $(7,039,755)
Adjustment to reconcile net loss to net cash used in operations:               
Stock based compensation   1,750,000    -    6,750,000 
Changes in operating assets and liabilities:               
Accounts payable and accrued expenses   -    -    - 
                
Net Cash used in Operating Activities   (90)   (33,391)   (289,755)
                
FINANCING ACTIVITIES:               
Proceeds from common stock issuance   -    27,650    253,250 
Purchase of treasury stock   -    -    (300)
Shareholder advances   100    27    36,815 
Net Cash Provided by Financing Activities   100    27,677    289,765 
                
Net increase (decrease) in cash   10    (5,714)   10 
Cash, beginning of period   -    5,874    - 
Cash, end of period  $10   $160   $10 
                
Supplemental disclosure of non-cash investing and financing activities:               
Proceeds from issuance of preferred stock deposited into Synergistic Holdings, LLC  $194,248   $-   $194,248 
Common shares issued for cashless exercise of stock options  $20   $-   $95 
Forgiveness of debt by shareholder  $100    27   $20,460 

 

The accompanying notes are an integral part of these condensed financial statements.

 

 6 
   

 

Accelera Innovations, Inc.

(A Development Stage Corporation)

Notes to Condensed Unaudited Financial Statements

(Restated)

 

1. Background Information

 

Accelera Innovations, Inc., formerly Accelerated Acquisitions IV, Inc. (the “Company”) was incorporated in the state of Delaware on April 29, 2008 for the purpose of raising capital that is intended to be used in connection with its business plan which may include a possible merger, acquisition or other business combination with an operating business.

 

The Company is currently in the development stage. All activities of the Company to date relate to its organization, initial funding, share issuances and regulatory compliance.

 

On June 13, 2011, Synergistic Holdings, LLC (“Synergistic”) agreed to acquire 17,000,000 shares of the Company’s common stock par value $0.0001 for a price of $0.0001 per share. At the same time, Accelerated Venture Partners, LLC agreed to tender 3,750,000 of their 5,000,000 shares of the Company’s common stock par value $0.0001 for cancellation. Following these transactions, Synergistic owned 93.15% of the Company’s 18,250,000 issued and outstanding shares of common stock par value $0.0001 and the interest of Accelerated Venture Partners, LLC was reduced to approximately 6.85% of the total issued and outstanding shares. Simultaneously with the share purchase, Timothy Neher resigned from the Company’s Board of Directors and John Wallin was simultaneously appointed to the Company’s Board of Directors. Such action represents a change of control of the Company.

 

On October 18, 2011 the Company filed a Certificate of Amendment to its Certificate of Incorporation with the Secretary of State of Delaware and change its name from Accelerated Acquisition IV, Inc. to “Accelera Innovations, Inc.”

 

The Company is a healthcare service company that will initially focus on its sole asset that was licensed to the Company by Synergistic, a privately-held company organized under the laws of Illinois to further develop, pursuant to which the Company was granted a thirty (30) year exclusive, non-transferrable worldwide license for proprietary Internet-based, software (“Accelera Technology”) that improves the functionality and performance of healthcare services by making clinical healthcare data available to healthcare consumers. This relevant data is intended to serve as the backbone for self-management tools that will allow these same healthcare consumers to facilitate the self-management portion of their doctor-prescribed care plan and focus on the mostly costly disease states. This is accomplished through the proprietary technology, which is intended to identify and measure the severity of high/low stratification of the sickness level based upon evidence-based clinical and medical rules and delivers best-of-breed tools to insurance companies, doctors, hospitals, and employers.

 

2. Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the three months ended March 31, 2013, the Company has had no revenue and had a net loss of $1,750,090. As of March 31, 2013, the Company has an accumulated deficit of $7,039,755 during the development stage. And the Company has not emerged from the development stage. In view of these matters, the Company’s ability to continue as a going concern is dependent upon the Company’s ability to begin operations and to achieve a level of profitability. The Company intends on financing its future development activities and its working capital needs largely from the sale of public equity securities with some additional funding from other traditional financing sources, including term notes until such time that funds provided by operations are sufficient to fund working capital requirements. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

3. Significant Accounting Policies

 

USE OF ESTIMATES - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

CASH AND CASH EQUIVALENTS - All cash, other than held in escrow, is maintained with a major financial institution in the United States. Deposits with this bank may exceed the amount of insurance provided on such deposits. Temporary cash investments with an original maturity of three months or less are considered to be cash equivalents. The company has cash amounted to $0 and $10 as of March 31, 2012 and 2013 respectively and does not have cash equivalents as of March 31, 2013 and December 31, 2012.

 

RESEARCH AND DEVELOPMENT EXPENSES - Expenditures for research, development, and engineering of products are expensed as incurred.

 

 7 
   

 

COMMON STOCK - The Company records common stock issuances when all of the legal requirements for the issuance of such common stock have been satisfied.

 

REVENUE AND COST RECOGNITION - The Company has no current source of revenue; therefore the Company has not yet adopted any policy regarding the recognition of revenue or cost.

 

PREFERRED STOCK SUBSCRIPTION PAYABLE – During the period ended March 31, 2013, the Company’s affiliate received cash proceeds of $194,248 from investors for preferred stock subscriptions in the Company. The 48,562 shares of preferred stock have not been issued because the Company has not filed the Certificate of Designations to the State of Delaware, and the proceeds were deposited directly into the bank account of Synergistic, the Company’s affiliate. The preferred shares have not been issued to the investors and the Company has recorded the preferred stock subscriptions as a liability under preferred stock payable as of March 31, 2013.

 

ADVERTISING COSTS - The Company’s policy regarding advertising is to expense advertising when incurred.

 

INCOME TAXES - Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes resulting from temporary differences. Such temporary differences result from differences in the carrying value of assets and liabilities for tax and financial reporting purposes. The deferred tax assets and liabilities represent the future tax consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

 

The Company adopted the provisions of FASB ASC 740-10 “Uncertainty in Income Taxes” (ASC 740-10), on January 1, 2007. The Company has not recognized a liability as a result of the implementation of ASC 740-10. A reconciliation of the beginning and ending amount of unrecognized tax benefits has not been provided since there is no unrecognized benefit since the date of adoption. The Company has not recognized interest expense or penalties as a result of the implementation of ASC 740-10. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.

 

LOSS PER SHARE - Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted loss per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. At March 31, 2013, the Company did not have any potentially dilutive common shares.

 

FINANCIAL INSTRUMENTS - In September 2006, the Financial Accounting Standards Board (FASB) introduced a framework for measuring fair value and expanded required disclosure about fair value measurements of assets and liabilities. The Company adopted the standard for those financial assets and liabilities as of the beginning of the 2008 fiscal year and the impact of adoption was not significant. FASB Accounting Standards Codification (ASC) 820 “Fair Value Measurements and Disclosures” (ASC 820) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

 

Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
   
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
   

Level 3 - Inputs that are both significant to the fair value measurement and unobservable.

 

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2013. These financial instruments include stock options granted to the officers in 2012 and the three months ended March 31, 2013.

 

 8 
   

 

RECENT ACCOUNTING PRONOUNCEMENTS

 

Effective January 2012, the Company adopted ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (ASU 2011-04). ASU 2011-04 represents the converged guidance of the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) on fair value measurement. A variety of measures are included in the update intended to either clarify existing fair value measurement requirements, change particular principles requirements for measuring fair value or for disclosing information about fair value measurements. For many of the requirements, the FASB does not intend to change the application of existing requirements under Accounting Standards Codification (ASC) Topic 820, Fair Value Measurements. ASU 2011-04 was effective for interim and annual periods beginning after December 15, 2011. The adoption of this update did not have a material impact on the financial statements.

 

Effective January 2012, the Company adopted ASU No. 2011-05, Presentation of Comprehensive Income (ASU 2011-05). ASU 2011-05 is intended to increase the prominence of items reported in other comprehensive income and to facilitate convergence of accounting guidance in this area with that of the IASB. The amendments require that all nonowner changes in shareholders’ equity be presented in a single continuous statement of comprehensive income or in two separate but consecutive statements. In December 2011, the FASB issued ASU No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05 (ASU 2011-12). ASU 2011-12 defers the provisions of ASU 2011-05 that require the presentation of reclassification adjustments on the face of both the statement of income and statement of other comprehensive income. Amendments under ASU 2011-05 that were not deferred under ASU 2011-12 will be applied retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this update did not have a material impact on the financial statements.

 

In December 2011, the FASB issued ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities (ASU 2011-11). The amendments in ASU 2011-11 require the disclosure of information on offsetting and related arrangements for financial and derivative instruments to enable users of its financial statements to understand the effect of those arrangements on its financial position. Amendments under ASU 2011-11 will be applied retrospectively for fiscal years, and interim periods within those years, beginning after January 1, 2013. The Company is evaluating the effect, if any, adoption of ASU 2011-11 will have on its financial statements.

 

In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive (ASU 2013-02). This guidance is the culmination of the FASB’s deliberation on reporting reclassification adjustments from accumulated other comprehensive income (AOCI). The amendments in ASU 2013-02 do not change the current requirements for reporting net income or other comprehensive income. However, the amendments require disclosure of amounts reclassified out of AOCI in its entirety, by component, on the face of the statement of operations or in the notes thereto. Amounts that are not required to be reclassified in their entirety to net income must be cross referenced to other disclosures that provide additional detail. This standard is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. The Company is evaluating the effect, if any, the adoption of ASU 2013-02 will have on its financial statements.

 

In April 2013, the FASB issued ASU No. 2013-07, Presentation of Financial Statements (Top 205): Liquidation Basis of Accounting. The objective of ASU No. 2013-07 is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. The amendments in this standard is effective prospectively for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. We are evaluating the effect, if any, adoption of ASU No. 2013-07 will have on our financial statements.

 

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the United States Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

 

4. Equity Transactions

 

The Company has two classes of stock, preferred stock and common stock. There are 10 million shares of $.0001 par value preferred shares authorized. Preferred shares have not been defined for any preferences. There are 100 million shares of $.0001 par value common shares authorized. The company has 21,511,812 and 21,311,812 issued and outstanding shares as of March 31, 2013 and December 31, 2012, respectively.

 

At inception, the Company has issued 5,000,000 shares of restricted common stock to the incorporator for initial funding, in the amount of $4,000.

 

On June 16, 2011, the Company issued 17,000,000 shares of common stock in exchange for licensing agreement and consulting agreement. In association with the change in control and exchange, the former majority shareholder tendered 3,750,000 shares of common stock in exchange for option to purchase 2,250,000 shares. The option was exercised.

 

 9 
   

 

From the period beginning September 2011 through December 31, 2011, the Company issued 39,975 shares of common stock, at $4.00 per share in cash, for a total amount of $159,900.

 

From the period beginning January 1, 2012 through March 31, 2012, the Company issued 6,912 shares of common stock, at $4.00 per share in cash, for a total amount of $27,650.

 

From the period beginning April 1, 2012 through June 30, 2012, the Company issued 15,000 shares of common stock, at $4.00 per share in cash, for a total amount of $60,000.

 

On April 26, 2012, the Company entered into an employment agreement with John F. Wallin., as the President and Chief Executive Officer “CEO” of the Company. In consideration of the services, the Company agreed to issue a stock option to purchase 1,750,000 shares of the Company’s common stock at an exercise price of $.0001 per share, vesting over a four year period. The stock option shall vest with respect to 20% of the total number of shares which are the subject of the option (350,000 shares) immediately after the effective date of the agreement, thereafter the remaining shares granted under the option shall vest ratably on a monthly basis (29,166 shares per month) at the end of each month over a 48-month period. Notwithstanding the foregoing, in the event of a closing of a Change of Control transaction, all options from this agreement and others shall immediately vest and become fully exercisable. The employment agreement with Mr. Wallin provides that, upon completion of two million dollars in financing, the Company shall begin to pay John a base salary of $250,000 per year, to be paid at the times and subject to the Company’s standard payroll practices, subject to applicable withholding. Base salary shall be reviewed at least annually, and increased as determined by the Board. So long as Mr. Wallin has not been terminated for cause, as defined in the employment agreement, he will be eligible for bonus compensation, payable immediately following completion of the Company’s financial statements for each full fiscal year, commencing with the 2013 fiscal year. Mr. Wallin’s annual bonus targets are still being developed by the Company and will be adjusted from time to time, based upon the Company’s achieving 100% of certain financial metrics plan targets to be determined by the Board.

 

On April 26, 2012, the Company entered into an employment agreement with James R. Millikan, as the Chief Operating Officer “COO” of the Company reporting to the President and CEO. In consideration of the services, the Company agreed to issue a stock option to purchase 1,000,000 shares of the Company’s common stock at an exercise price of $.0001 per share, vesting over a four year period. The stock option shall vest with respect to 20% of the total number of shares which are the subject of the option (200,000 shares) immediately after the effective date of the agreement, thereafter the remaining shares granted under the option shall vest ratably on a monthly basis (16,666 shares per month) at the end of each month over a 48-month period. Notwithstanding the foregoing, in the event of a closing of a Change of Control transaction, all options from this agreement and others shall immediately vest and become fully exercisable. The employment agreement with Mr. Millikan provides that, upon completion of two million dollars in financing, the Company shall begin to pay Jim a base salary of $175,000 per year, to be paid at the times and subject to the Company’s standard payroll practices, subject to applicable withholding. Base salary shall be reviewed at least annually, and increased as determined by the Board. So long as Mr. Millikan has not been terminated for cause, as defined in the employment agreement, he will be eligible for bonus compensation, payable immediately following completion of the Company’s financial statements for each full fiscal year, commencing with the 2013 fiscal year. Mr. Millikan’s annual bonus targets are still being developed by the Company and will be adjusted from time to time, based upon the Company’s achieving 100% of certain financial metrics plan Targets to be determined by the Board.

 

On, April 26, 2012, the Company entered into an employment agreement with Cynthia Boerum, as the Chief Strategic Officer “CSO” of the Company reporting to the President and CEO. In consideration of the services, the Company agreed to issue a stock option to purchase 1,000,000 shares of the Company’s common stock at an exercise price of $.0001 per share, vesting over a four year period. The stock option shall vest with respect to 20% of the total number of shares which are the subject of the option (200,000 shares) immediately after the effective date of the agreement, thereafter the remaining shares granted under the option shall vest ratably on a monthly basis (16,666 shares per month) at the end of each month over a 48-month period. Notwithstanding the foregoing, in the event of a closing of a Change of Control transaction, all options from this agreement and others shall immediately vest and become fully exercisable. The employment agreement with Ms. Boerum provides that, upon completion of two million dollars in financing, the Company shall begin to pay Cynthia a base salary of $150,000 per year, to be paid at the times and subject to the Company’s standard payroll practices, subject to applicable withholding. Base salary shall be reviewed at least annually, and increased as determined by the Board. So long as Ms. Boerum has not been terminated for cause, as defined in the employment agreement, she will be eligible for bonus compensation, payable immediately following completion of the Company’s financial statements for each full fiscal year, commencing with the 2013 fiscal year. Ms. Boerum’s annual bonus targets are still being developed by the Company and will be adjusted from time to time, based upon the Company’s achieving 100% of certain financial metrics plan Targets to be determined by the Board.

 

On, January 3, 2013 the Company entered into an employment agreement with Patrick Custardo, as the Chief Acquisitions Officer “CAO” of the Company reporting to the President and CEO. In consideration of the services, the Company agreed to issue a stock option to purchase 1,000,000 shares of the Company’s common stock at an exercise price of $.0001 per share, vesting over a four year period. The stock option shall vest with respect to 20% of the total number of shares which are the subject of the option (200,000 shares) immediately after the effective date of the agreement, thereafter the remaining shares granted under the option shall vest ratably on a monthly basis (16,666 shares per month) at the end of each month over a 48-month period. Notwithstanding the foregoing, in the event of a closing of a Change of Control transaction, all options from this agreement and others shall immediately vest and become fully exercisable. The employment agreement with Mr. Custardo provides that, upon completion of two million dollars in financing, the Company shall begin to pay Patrick a base salary of $150,000 per year, to be paid at the times and subject to the Company’s standard payroll practices, subject to applicable withholding. Base salary shall be reviewed at least annually, and increased as determined by the Board. So long as Mr. Custardo has not been terminated for cause, as defined in the employment agreement, she will be eligible for bonus compensation, payable immediately following completion of the Company’s financial statements for each full fiscal year, commencing with the 2013 fiscal year. Mr. Custardo’s annual bonus targets are still being developed by the Company and will be adjusted from time to time, based upon the Company’s achieving 100% of certain financial metrics plan Targets to be determined by the Board.

 

 10 
   

 

During the period ended March 31, 2013, the Company’s affiliate received cash proceeds of $194,248 from investors for preferred stock subscriptions in the Company. The 48,562 shares of preferred stock have not been issued because the Company has not filed the Certificate of Designations to the State of Delaware, and the proceeds were deposited directly into the bank of account of Synergistic, the Company’s affiliate. The preferred shares have not been issued to the investors and the Company has recorded the preferred stock subscriptions as a liability under preferred stock payable as of March 31, 2013.

 

There are no warrants, or other common stock equivalents outstanding as of March 31, 2013 and December 31, 2012.

 

Stock-based Compensation

 

The Company recognizes stock-based compensation expense in its statement of operations based on estimates of the fair value of employee stock option and stock grant awards as measured on the grant date. For stock options, the Company uses the Black-Scholes option pricing model to determine the value of the awards granted. The Company amortizes the estimated value of the options as of the grant date over the stock options’ vesting period, which is generally four years.

 

The Company has estimated the value of common stock into which the options are exercisable at $4 per share for financial reporting purposes. This amount was determined based on the price our stock was sold for in past private placements, the minimum stock price required for listing on any Nasdaq market, and the amount also approximates a $85 million valuation for the entire Company, which is considered “micro-cap” by most equity analysts. The stock based compensation expense is an estimate and significant judgment was involved in attempting to determine the value of common stock. The Company’s common stock has never traded publicly, and no stock has traded in private markets either, except for privately negotiated sales to the founder and other private investors of the company and the founder of the technology from which the company subsequently licensed rights. The Company does not have any offers for purchase of its common stock in any stage, and no stock is registered for resale with the Securities and Exchange Commission.

 

The Company believes the only material estimate used in estimating the value stock options was the estimated fair value of the common stock, and that assumed volatility, term, interest rate and dividend yield changes would be not result in material differences in stock option valuations. Based on the assumed value of common stock, the grant-date fair value of options granted during the three months ended March 31, 2013, the year ended 2012 and 2011 was $6,750,000. The Company recognized stock-based compensation expense of $1,750,000, 5,000,000 and $0 during the three months ended March 31, 2013, year ended 2012 and 2011, respectively, which were included in general and administrative expenses. As of March 31, 2013, there was $13,000,000 of total unrecognized compensation cost related to unvested stock-based compensation awards, which is expected to be recognized over the weighted average remaining vesting period of approximately 3.5 years.

 

The following is a summary of the outstanding options, as of March 31, 2013:

 

           Weighted Average
   Options   Options   Intrinsic   Exercise   Remaining
   Outstanding   Vested   Value   Price   Term
Options, December 31, 2011   -    -   $-   $-    
Granted   -    -              
Exercised   -    -              
Forfeited / expired   -    -              
Options, December 31, 2011   -    -              
Granted   3,750,000    1,250,000   $4.00   $0.0001   3.3 years
Exercised   (750,000)   -              
Forfeited / expired   -    -              
Options, December 31, 2012   3,000,000    1,250,000              
Granted   1,000,000    437,500    4.00    0.0001   4 years
Exercised   (200,000)                  
Forfeited / expired   -    -              
Options, March 31, 2013   3,800,000    1,687,500              

 

 11 
   

 

Weighted average assumptions in the calculation of option value:

 

Historical Volatility 268.0%
Risk Free Rate 0.83%
Dividend Yield 0.00%
Forfeiture Rate 0.00%

 

The Company has reserved a total of 5,327,953 shares of common stock for issuance under its stock award plan, and 4,327,953 of these shares remained available for future issuance as of March 31, 2013.

 

5. Income Taxes

 

The Company has not recognized an income tax benefit for its operating losses generated based on uncertainties concerning its ability to generate taxable income in future periods. The tax benefit for the periods presented is offset by a valuation allowance established against deferred tax assets arising from the net operating losses and other temporary differences, the realization of which could not be considered more likely than not. In future periods, tax benefits and related deferred tax assets will be recognized when management considers realization of such amounts to be more likely than not. As of March 31, 2013 the Company had a loss and for the period April 29, 2008 (date of inception) through March 31, 2013. The net operating losses resulting from operating activities result in deferred tax assets of approximately $269,590 at the effective statutory rates which will expire by the year 2032. The deferred tax asset has been off-set by an equal valuation allowance.

 

There are no current or deferred income tax expense or benefit recognized for the period ended March 31, 2013.

 

6. Restatement of Previously Issued Unaudited Condensed Financial Statements

 

As previously disclosed in the Company’s current report on Form 8-K filed with the SEC on July 21, 2015, the Company’s Board of Directors determined that the Company’s financial statements included in (i) its quarterly reports on Form 10-Q for the periods ended March 31, 2013, June 30, 2013 and September 30, 2013, (ii) its annual report on Form 10-K for the year ended December 31, 2013, (iii) its quarterly reports on Form 10-Q for the periods ended March 31, 2014, June 30, 2014 and September 30, 2014, and (iv) its annual report on Form 10-K for the year ended December 31, 2014 (collectively, the “Financial Statements”) could not be relied on.

 

The Financial Statements contained errors related to (i) issuances of the Company’s preferred stock, the receipt of funds related to these issuances and the accounting for the use of the proceeds from these sales in each of the periods covered by the Financial Statements disclosed above, (ii) disclosure of a related party transactions, and (iii) the valuation of shares of the Company’s common stock issued as compensation.

 

As more fully described in the unaudited financial statements contained herein, management determined that previously issued unaudited financial statements for the three months ended March 31, 2013 contained an error, which was non-cash in nature, relating to the issuance of Company preferred stock, the receipt of funds related to such issuance and the accounting for the use of proceeds from such sale. The Company evaluated the impact of this error under the SEC’s authoritative guidance on materiality and determined that the impact of this error on the unaudited financial statements for the three months ended March 31, 2013 was material. On July 20, 2015, after review by the Company’s independent registered public accounting firm, the Company’s Board of Directors concluded that the Company should restate its unaudited financial statements for the three months ended March 31, 2013 to reflect the correction of the previously identified error in the unaudited financial statements for this period.

 

In order to reflect the error described herein, the Company restated the following unaudited financial statements of the Company, each in its entirety: (a) condensed balance sheet as of March 31, 2013, and (b) condensed statements of cash flows for the three months ended March 31, 2013 and for the cumulative period from inception (April 29, 2008) to March 31, 2013. There was no impact to our statement of operations or actual cash balances as a result of this error, and this error does not change net cash flows from operating activities, investing activities, and financing activities.

 

During the period ended March 31, 2013, the Company’s affiliate received cash proceeds of $194,248 from investors for preferred stock subscriptions in the Company. The 48,562 shares of preferred stock have not been issued because the Company has not filed the Certificate of Designations with the State of Delaware, and the proceeds were deposited directly into the bank account of Synergistic, the Company’s affiliate. The preferred shares have not been issued to the investors and the Company has recorded the preferred stock subscriptions as a liability under preferred stock payable as of March 31, 2013.

 

After a detailed review of the facts, the Company has concluded that the common stock and preferred stock to be issued as of March 31, 2013 should have been recorded in the financial statements for the three months ended March 31, 2013.

 

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The following tables present the restated items for the applicable date.

 

ACCELERA INNOVATIONS, INC.

CONDENSED BALANCE SHEET

AS OF MARCH 31, 2013

 

   As Originally   Amount of     
   Presented   Restatement   As Restated 
             
ASSETS               
                
Current Assets:               
Cash  $10   $-   $10 
Due from stockholder   -    194,248    194,248 
Total current assets   10    194,248    194,258 
                
TOTAL ASSETS  $10   $194,248   $194,258 
                
LIABILITIES AND STOCKHOLDERS’ DEFICIT               
                
Current Liabilities:               
Accounts payable  $-   $-   $- 
Preferred stock subscription payable   -    194,248    194,248 
Total current liabilities   -    194,248    194,248 
                
TOTAL LIABILITIES   -    194,248    194,248 
                
STOCKHOLDERS’ DEFICIT               
Preferred stock   -    -    - 
Common stock   2,151    -    2,151 
Additional paid-in capital   7,037,614    -    7,037,614 
Accumulated deficit   (7,039,755)   -    (7,039,755)
Total stockholders’ deficit   10    -    10 
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT  $10   $194,248   $194,258 

 

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ACCELERA INNOVATIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

THREE MONTH PERIOD ENDED MARCH 31, 2013

 

   As Originally   Amount of     
   Presented   Restatement   As Restated 
             
Revenues  $-   $-   $- 
                
Operating expenses:               
General and administrative expenses   1,750,090    -    1,750,090 
Total operating expenses   1,750,090    -    1,750,090 
                
Net loss  $(1,750,090)  $-   $(1,750,090)
                
Basic and diluted loss per share  $(0.08)       $(0.08)
                
Weighted average number of shares outstanding   21,505,145         21,505,145 

 

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ACCELERA INNOVATIONS, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

THREE MONTH PERIOD ENDED MARCH 31, 2013

 

   As Originally   Amount of     
   Presented   Restatement   As Restated 
             
OPERATING ACTIVITIES:               
Net loss  $(1,750,090)  $-   $(1,750,090)
Adjustments to reconcile net loss to net cash used in operating activities:               
Stock based compensation   1,750,000    -    1,750,000 
Change in current assets and liabilities:               
Accounts payable and accrued expenses   -    -    - 
Net cash used in operating activities   (90)   -    (90)
                
FINANCING ACTIVITIES:               
Shareholder advances   100    -    100 
Net cash provided by financing activities   100    -    100 
                
NET INCREASE IN CASH   10    -    10 
                
CASH, BEGINNING OF PERIOD   -    -    0 
                
CASH, END OF PERIOD  $10   $-   $10 
                
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:               
Proceeds from issuance of preferred stock deposited into Synergistic Holdings, LLC  $-   $194,248   $194,248 
Common shares issued for cashless exercise of stock options  $20   $-   $20 
Forgiveness of debt by shareholder  $100   $-   $100 

 

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Accelera Innovations, Inc. (“we”, “our”, “us” “Accelera” or the “Company”), a Delaware corporation, is a healthcare service company which will initially focus on its technology assets that were licensed to the Company by our majority shareholder Synergistic Holdings, LLC (“Synergistic”), a privately-held company organized under the laws of Illinois to further develop, pursuant to which the Company was granted a thirty (30) year exclusive, non-transferrable worldwide license for proprietary Internet-based, software (“Accelera Technology”) that is intended to provide interoperable technology improving the quality of care while reducing the cost .

 

Results of Operations

 

For the three months ending March 31, 2013, the Company had no revenues and incurred general and administrative expenses of $1,750,090.

 

For the period from inception (April 29, 2008) through March 31 2013, the Company had no activities that produced revenues from operations and had a net loss of $(7,039,755), mostly due to employee stock based compensation expenses, due to legal, accounting, audit and other professional service fees incurred in relation to the formation of the Company and the filing of the Company’s registration statement on Form 10 filed with the Securities and Exchange Commission (the “SEC”) in August 2008, the filing of the Company’s registration statement on Form S-1 with the SEC in May 2012 and other related compliance matters.

 

During the three months ended March 31, 2013, which was the first quarter of our fiscal year ending December 31, 2013, we had no revenue and incurred general and administrative expenses of $1,750,090. Our net loss was $1,750,090, due to the general and administrative expenses. General and administrative expenses for the first quarter of fiscal 2013 consisted of $1,750,000 for the estimated value of stock-based compensation to our Chief Executive Officer, Chief Operations Officer, Chief Strategic Officer and Chief Acquisitions Officer and $90 administrative support, which mostly consisted of bank fees.

 

The estimated value of stock based compensation for our executive officers was based on the employment agreements with John F. Wallin, our Chief Executive Officer, James R. Millikan, our Chief Financial Officer, Cynthia Boerum, our Chief Strategic Officer and Patrick Custardo, our Chief Acquisitions Officer which provide for 1,750,000, 1,000,000, 1,000,000 and 1,000,0,00 stock options, respectively. The stock option shall vest with respect to 20% of the total number of shares which are the subject of the option immediately after the effective date of the agreement April 26, 2012 and January 3, 2013 for Mr. Custardo, thereafter the remaining shares granted under the option shall vest ratably on a monthly basis at the end of each month over a 48-month period. Notwithstanding the foregoing, in the event of a closing of a Change of Control transaction, all options from this agreement and others shall immediately vest and become fully exercisable. Options have been valued using the Black-Scholes Model, which was not materially different than the shares current valuation, for a total compensation value to be recognized over the vesting term of the agreement, in the amount of $19,000,000. The stock based compensation expense is an estimate and significant judgment was involved in attempting to determine the value of the company, Accelera Innovations, Inc., for which the options are exercisable. The actual value of our common stock may turn out to be much higher or lower than estimated amount, due to the lack of any reliable data on the Company’s current valuation. Our common stock has never traded publicly, and no stock has traded in private markets either, except for privately negotiated sales to current investor, the founder of the company and the founder of the technology from which the company subsequently licensed rights. The Company does not have any offers for purchase of its common stock in any stage, and no stock is registered with the Securities and Exchange Commission; therefore if any stock were to be sold the Company would need to do so under an effective registration statement or under an applicable exemption from registration. With the limited data points available to the Company and its board of directors regarding the Company’s valuation, we have estimated the value of common stock at $4 per share for financial reporting purposes. This amount was determined based on the minimum stock price required for listing on any Nasdaq market, and it closely approximates a $85 million valuation for the entire Company (considered “micro-cap” by most equity analysts), which we do not believe unreasonable for a development stage company with product ready for market. Each $1 change in estimated per-share value of our common stock would change the estimated stock-based compensation expense as reported for the three months ending March 31, 2013 by approximately $437,500, so that a $3 estimated value for Company’s common stock ($1 less per share) would result in lower general and administrative expenses and a higher estimated value for the Company’s common stock would higher general and administrative expenses. Due to the lower exercise price offered to our executive offers in their employment contracts ($0.0001 per share, since they are currently not receiving any cash compensation) as compared to the estimated value for financial reporting purposes, the stock price volatility, stock option term and interest rate assumptions do not have a significant impact on the estimated value of the options as they would if the options were granted at market price. As noted above, the actual value of our common stock may turn out to be much higher or lower than the amount estimated for financial reporting purposes, due to the current lack of any reliable data on the Company’s current valuation.

 

To date, our general and administrative expenditures, which in most other cases are paid in cash include legal fees, accounting fees, costs associated with SEC filings and preparation of documents.

 

We expect that, if we are successful in securing additional capital, future general and administrative expenses will increase significantly as compared to the periods ended March 31, 2013. In addition, we expect to incur research and development expenses as we seek to advance our products.

 

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Liquidity and Capital Resources

 

As of March 31, 2013 and December 31, 2012, the Company had a total of $10 and $0 in assets, respectively and the Company has no liabilities as of March 31, 2013 and December 31, 2012, respectively. The following is a summary of the Company’s cash flows provided by (used in) operating, investing, and financing activities for the years ended March 31, 2013 and 2012:

 

   March 31, 2013   March 31, 2012 
Net Cash Used In Operating Activities  $(90)  $(33,391)
Net Cash Used In Investing Activities   -    - 
Net Cash Provided By Financing Activities   100    27,677 
Net Increase (Decrease) In Cash  $10   $(5,714)

 

Our principal sources of liquidity are our cash and the cash flow provided by the shareholder advances and equity financing. We believe that further equity financing is needed to satisfy our anticipated cash requirements through the next 12 months.

 

As of March 31, 2013, we had a cash balance of only $10 and no other assets. We have an accumulated deficit during our development stage and no means to pay liabilities in excess of our assets. Accelerated Venture Partners LLC (“AVP”) has agreed to fund certain administrative operating expenses of Accelera until the Company succeeds in raising additional funds, at which point the administrative operating expenses will be due. However, AVP may seek to force earlier payment of the amounts which we owe, or AVP may decide in the future not to continue funding costs on behalf of Accelera, although we are not aware of any plans for them to do so. If we are not successful in raising additional capital, we may not be able to pay our liabilities that arise and may have to cease operations.

 

During the period ended March 31, 2013, the Company’s affiliate received cash proceeds of $194,248 from investors for preferred stock subscriptions in the Company. The 48,562 shares of preferred stock have not been issued because the Company has not filed the Certificate of Designations to the State of Delaware, and the proceeds were deposited directly into the bank account of Synergistic, the Company’s affiliate. The preferred shares have not been issued to the investors and the Company has recorded the preferred stock subscriptions as a liability under preferred stock payable as of March 31, 2013.

 

We have a consulting agreement with AVP under which AVP has agreed to provide us with certain advisory services that include reviewing our business plan, identifying and introducing prospective financial and business partners, and providing general business advice regarding our operations and business strategy. Under the consulting agreement, cash compensation of $400,000 is due to AVP upon our securing $5 million in available cash from funding, and an additional $800,000 is due upon our securing $15 million in available cash from funding (inclusive of the first $5 million). The cash compensation is to be paid to AVP at the rate of $50,000 per month. The total cash compensation to be received by AVP under the consulting agreement is not to exceed $1,200,000 unless we receive an amount of funding in excess of $15 million. If we receive equity or debt financing that is an amount less than $5 million, in between $5 million and $15 million, or greater than $15 million, the cash compensation earned by the AVP under its consulting services agreement will be prorated. We have the option to make a lump sum payment to AVP in lieu of the monthly cash payments.

 

The Company will not be able to commercialize its technology without additional capital, if we do not raise additional funds of at least $30 million for the advancement of its technology over the next three years it will lose its rights to the technology. The Company will require significant additional financing in order to meet the milestones and requirements of its Business Plan and avoid discontinuation of the License. Funding would be required for staffing, marketing, public relations and the necessary distribution to expanding the scope of its offering to include the global market. The Company intends to seek an aggregate of $35,000,000 in 2013 and 2014 through the sale of equity or convertible debt securities, the issuance of these securities could dilute existing shareholders. The Company’s funding plans include selling additional capital stock and/or borrowing to fund the aforementioned expenses. The Company intends to approach Hedge Funds, Venture Capital Groups, Private Investment Groups and other Institutional Investment Groups in its efforts to achieve future funding.

 

We plan to measure our future liquidity primarily by the cash and working capital available to fund our operations, if we are ever able to raise capital. To date we have not raised any capital and, accordingly, do not have any capital available to fund our operations, as stated above. We will not be able to commercialize our products and services without additional capital. We are evaluating various means of raising our initial capital, including through the sale of equity securities, licensing agreements or other means. We expect to incur losses for at least several years into the future as we develop and deploy our products and services and we are unable to estimate when, if ever, we will receive revenue or have a positive cash flow.

 

The Company’s auditor has expressed in his report conditions that raise substantial doubt about the Company’s ability to continue as a going concern. In support of the Company’s efforts and cash requirements, it has relied on advances from the majority shareholder and related parties until such time that the Company can support its operations through the generation of revenue or attains adequate financing through sales of its equity and/or traditional debt financing. The majority shareholder has expressed continued support; however there is no formal written commitment for continued support by the shareholder or any other source. Funds that have been advanced or paid in satisfaction of liabilities has been contributed to equity in exchange for common shares. There is no written or oral commitment to continue such funding.

 

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Plan of Operations

 

The Company is a healthcare service company which will initially focus on its technology assets that were licensed to the Company by our majority shareholder, Synergistic, a privately-held company organized under the laws of Illinois, pursuant to which the Company was granted a thirty (30) year exclusive, non-transferrable worldwide license for the Accelera Technology, a proprietary Internet-based, software platform that is fully functional in its current state and is designed to provide interoperable technology that is intended to improve the quality of care while reducing the cost as described below.

 

LICENSED TECHNOLOGY OVERVIEW

 

  1. Data Forms - Topical Network Data Warehouse Architecture
  2. Axiom – Healthcare Specific Business Rules Engine.
  3. Kinetic Forms – A Dynamic Web Page Generator.
  4. VT Secure – Enterprise Security Framework
  5. Patient Portal
  6. Self-Management Disease Modules
  7. Provider Portal
  8. Private Label Applications

 

SOFTWARE DESCRIPTION

 

The Accelera Health Care Framework / Multi Vertical Health Care (MVHC) Technology comprises a suite of eight separate technologies described below;

 

Health Care Framework, Security, Business Rules, Data Integration, Patient Assessment, Medical Alerts, Biometric integration, Secure communication and networking, Data Mining on Large Data Sets (Mega Data).

 

Security Framework, Integrated into the Accelera’s Healthcare Framework is designed to provide enterprise level application and data security.

 

Assessment Engine: For clinical and self-health care and Wellness management.

 

Parallel Processing Data Mining Engine: Patient Identification, Medical Informatics, Content Personalization.

 

Suite of Products:

 

Data Forms –Topical Network, a data forming technology and framework that is designed to organize and efficiently deliver relevant information for large data sets (Mega Data) and which can ingest any data format into well-organized data structure designed specifically to communicate the other components of the Accelera Framework.

 

Axiom – Business Rules Engine is designed specifically for Healthcare which is data mining engine. Axiom is a parallel or simultaneous processing rules engine designed to apply complex rule-sets on very large dimensional data input to produce multiple result outputs.

 

Kinetic Forms – Dynamic Webpage Generator, a dynamic web based assessment engine that is intended to interfaces with data forms and Axiom.

 

VT Secure – Integrated into the Accelera Healthcare Framework, is designed to provide enterprise level security and is intended to protect applications and data and is designed to provide performance and scalability for secure medical data mining.

 

Patient Portal - Consumer-facing internet-based technology that is designed to encompass the following:

 

  Connect between patient and provider through a fully secure two-way Patient Portal, including After Visit Summaries, patient messaging and care plan adherence alerts based on relevant health care protocols
     
  Display relevant patient and care plan information in easy-to-understand onscreen and printable displays for patients and triaged formatting for caregivers.
     
  Provide patient behavior modifications self-management modules
     
  Allow third party access into the patient portal
     
  Create Personal Health Records (PHR) that are personalized based on patient condition for patient care and messaging

 

 18 
   

 

Self-Management Disease Modules - Provider and Consumer-facing internet-based technology that is designed to encompass the following:

 

  Interactive disease management tools that focus on chronic health conditions. It is designed to include content indexed to specific triggers within a disease state
     
  Personalized based on National Drug Code (NDC), and Current Procedural Terminology (CPT4) codes
     
  Proprietary messaging based on CMS Medicare/Medicaid established triggers
     
  Valid and reliable behavioral health triggers that facilitate care plan adherence and compliance

 

Provider Portal - Provider-facing internet-based technology that is designed to encompass the following:

 

  Dashboard access to Patient Portal inputs at the patient level
     
  Summary access to disease management adherence & compliance messaging alerts
     
  Direct input into patient health records
     
  Direct recommendations to the patient

 

Private Label Applications

 

Accelera EMR- A certified Electronic Medical Record application designed to be used primarily in physician offices to automate the patient’s clinical chart and meet the ARRA (Federal Mandated Meaningful Use) criteria.

 

Accelera PM -The Practice Management application designed to be used primarily in physician offices to automate the physician’s revenue cycle management system.

 

Accelera Patient Portal - The Patient Portal application designed to be used as a communication tool between patient and physician office staff. This application is intended to allow the patient to access their medical record information in a secure environment.

 

Accelera HIE - The Health Information Exchange application is intended to allow providers and payors of healthcare to exchange secure data by creating the continuum of care for the patient, and decreasing healthcare cost.

 

Accelera ACO - The Accountable Care Organization application needed to operate an ACO environment. This application is designed to offers the ACO business the ability to report to CMS the usage of Medicare benefits and is intended to provide tools to lower the cost of patient care.

 

Accelera HIS - The Hospital Information System application is designed to includes all applications to manage most hospital information systems. The department applications included in the HIS are as follows:

 

Patient Master; Appointments, Outpatient Management; Inpatient Management; Emergency Department; Patient Billing; Claims Management; Provider Fee Management; Accounts Receivable; Duplicate Registration; Medical Records; System Master; System Configuration, Resource Scheduler; CPOE; Clinical Decision Support System; Clinical Documentation; Barcode Medication Administration; Laboratory Management System; Radiology System; PACS; Pharmacy Management System; Materials/Supply Management System; Operating Room Management System; Nursing Management; Blood Bank System; Dietary Management System; Hospital Patient Portal.

 

Accelera, intends to provide its cloud based healthcare services through monthly or yearly subscription agreements (“software-as-a-service” also known as “SaaS”) to the healthcare industry. The Company intends on positioning itself as a technology and service solution for providers and payers such as the hospitals, medical offices, medical insurance companies, Accountable Care Organizations, Patient Centered Medical Homes, and Provider Service Networks who are seeking to create an interoperable technology platform that is patient-centric.

 

The coordinated care would begin with the office visit using the Accelera Practice Management and Electronic Medical Record applications. The provider may also access disparate patient consults and share the patient’s record using the Accelera Health Information Exchange and Portal. When the patient is admitted to the hospital setting, all of the functions are intended to be automated using the Accelera Hospital Information System. The physician would continue to have full access to the patient’s information to receive accurate and efficient information. If the primary care physician is part of an Accountable Care Organization, then those reports required by Center for Medicare and Medicaid will be created and distributed using the Accelera Accountable Care Organization application.

 

The Accelera Patient Management Record is designed to identify patients with preventable, yet escalating associated costs, then directs intense online self-management services to improve the quality-of-life for the patient and deliver more effective health information. Patients would be electronically triaged using the Center for Medicare and Medicaid (CMS) rule-set for disease management, as well as proprietary evidence-based disease management rules. These rules are based on clinical standards from major health organizations.. This is intended to allow providers, as well as patients, to monitor care through targeted interventions. The technology platform is intended to allow healthcare providers to anticipate patient care needs, motivate patient compliance, activate evidence-based standards of care, and improve efficiency.

 

 19 
   

 

The Accelera Analytic product is designed for potential customers that include healthcare payers, provider organizations, government entities worldwide, and employer groups. Accelera products are designed to identify, analyze, and minimize healthcare risk by data mining and predictive analysis while containing costs and improving the quality of care. Accelera also intends to develop modeling software to predict medical costs and help improve the financing, organization, and delivery of health services.

 

The Accelera Security solution is designed to reduce or stop the security breach at the point of care, by auditing the user and encasing the applications in a discrete shell. Without proper access, the application will separate the data elements from each other, patient name will not be associated with demographic or clinical information. Patient data is split into two parts, the patient identifier is separated from the clinic/medical data and both are encrypted. An encrypted data key unlocks the dual encryption bringing the information together and is intended to increase patients’ confidence in the information technology utilized.

 

The Accelera Solution is designed to improve patient care, reduce costs, eliminate redundant data entry, improve operational efficiency, but most importantly, bring together long term needs of the caregivers and is intended to satisfy the business requirements of the healthcare enterprise.

The intended benefits of our solutions for potential customers include:

 

  Lowers administration costs through a less invasive call-back system - email alerts, text messages, online alerts
     
  A benefit of batch health care analytics is the use of “predictive modeling across multiple clinical conditions. This process is designed to identify undiagnosed conditions for patients within an insurer’s patient population, or suggest interventions to prevent conditions from developing.
     
  Reducing occurrences and cost related to a healthcare data breaches.
     
  Reducing the hardware environment and cost by using our cloud technology.
     
  Increased Mobility.
     
  Improving patient care and safety.
     
 

Helping healthcare organizations maintain their market positions and meet their financial commitments.

 

Our current plans, predicated on raising $35,000,000 from the sale of 5,000,000 shares of common stock in this offering and will allow the Company to meet the milestones and requirements of its Business Plan and avoid discontinuation of the license. Funding would be required for staffing, marketing, public relations and the necessary research precedent to expanding the scope of its offering to include the global market. The Company intends to approach Hedge Funds, Venture Capital Groups, Private Investment Groups and other Institutional Investment Groups in its efforts to achieve future funding. It is estimated that $9,874,940 will be used for management, sales and marketing, $17,680,122 will be used for infrastructure and software fees and an estimated $4,417,978 will be spent on legal, accounting, rent and other payables leaving $3,026,960 in reserve for increased working capital.

 

Management’s Discussion, Analysis of Financial Condition and Results of Operations

 

The Company has conducted minimal operations since inception. No revenue has been generated by the Company from April 29, 2008 (Inception) to March 31, 2013. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management’s plan includes obtaining additional funds by equity financing and/or related party advances, however there is no assurance of additional funding being available. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might arise as a result of this uncertainty.

 

In order to meet our need for cash we are attempting to raise money from the primary offering. There is no assurance that we will be able to raise enough money through the primary offering to stay in business. Whatever money we do raise, will be applied first to costs of this offering and then to deploy the Company’s licensed technology. If we do not raise all of the money we need from the primary offering, we will have to find alternative sources, such as a second public offering, a private placement of securities, or loans from our officer or director or others. Our director is unwilling to make any commitment to loan us any money at this time. At the present time, we have not made any arrangements to raise additional cash, other than through the primary offering. If we need additional cash and can’t raise it we will either have to suspend operations until we do raise the cash, or cease business entirely.

 

Our current plans, predicated on raising $35,000,000 from the sale of 5,000,000 shares of common stock in this offering and will allow the Company to meet the milestones and requirements of its Business Plan and avoid discontinuation of the license. Funding would be required for staffing, marketing, public relations and the necessary research precedent to expanding the scope of its offering to include the global market. The Company intends to approach Hedge Funds, Venture Capital Groups, Private Investment Groups and other Institutional Investment Groups in its efforts to achieve future funding. It is estimated that $9,874,940 will be used for management, sales and marketing, $17,680,122 will be used for infrastructure and software fees and an estimated $4,417,978 will be spent on legal, accounting, rent and other payables leaving $3,026,960 in reserve for increased working capital.

 

 20 
   

 

We expect to use the proceeds from our offering for infrastructure and software, sales and marketing, employee compensation, legal fees, accounting fees, rent and other payables to deploy our technology. The Company’s technology platform is fully functional in its current state and is anticipated to be marketed into metropolitan markets with an estimated expenditure of approximately $16 million through December 31, 2013, and approximately $19 million through December 31, 2014 for general corporate purposes, for which proceeds we have an estimated plan. In detail, over the first twelve months after financing it is estimated that the Company will utilize an estimated $24 million of the offering for the following milestones: Infrastructure; Transfer our licensed software technology from internal Company servers to a data center facility with redundant backup systems, it is estimated this will take three months at an estimated cost of $3 million and an estimated $250,000 per month thereafter for expansion and service fees totaling $5.2 million over the first twelve months from financing. Software Fees: Under our Licensing Agreement with Synergistic, the Company is to pay $5 million on July 13, 2012 that was verbally extended by Synergistic to July 13, 2013 and $7.5 million on April 13 2014 for a total of $12.5 million in licensing fees over the next twelve months. Sales and Marketing: The Company intends to provide its cloud based healthcare services through monthly or yearly subscription agreements (“Software-as-a-Service” also known as “SaaS”) to the healthcare industry. It is estimated that the Company will grow from the current three full time employees marketing the product to twenty-three within the next six months including management, advertising, tradeshows and travel expenses at an estimated cost of 2.2 million and growing to fifty-seven people including management and all sales and marketing activity within the next twelve months totaling an estimated cost of $5.3 million. Legal fees, Accounting fees, Rent and other payables: The Company estimates these fees to be an estimated $950,000 over the next twelve months. The above mentioned expenditures meet the Company’s requirement under the Licensing Agreement to advance the licensed technology as agreed.

 

It’s estimated that if the Company cannot accomplish the milestones described above due to lack of financing the Company’s product offering will be delayed. The minimum amount of capital the Company needs to raise over the next twelve months is $1 million to continue operations. There is no guarantee that the Company will be able to raise this or any amount of additional capital and a failure to do so would have a significant adverse effect on the Company’s ability, or would cause significant delays in its ability to address the market for content delivery and achieve its Business Plan. Neither the Company nor any of its advisors or consultants has significant experience in raising funds similar to the $35,000,000 estimated to be required.

 

Our business may not materialize in the event we are unable to execute on our plan described in our prospectus. The events or circumstances that may prevent the accomplishment of our business objectives, include, without limitation, (i) the fact that, if we do not raise a minimum of US $5,000,000 of additional funding by July 13, 2013, an additional $7,500,000 by April 13, 2014, an additional $10,000,000 April 13, 2015 and an additional $7,500,000 by April 13, 2016 equaling the minimum funding requirement of $30,000,000 for the deployment of its licensed technology over the next three years we will lose the rights to the licensed technology, (ii) If physicians and hospitals do not accept our products and services, or delay in deciding whether to purchase our products and services. (iii) If we are forced to reduce our prices, our business, financial condition and results of operations could suffer, (iv) we are subject to a number of existing laws, regulations and industry initiatives, non-compliance with certain of which could materially adversely affect our operations , (v) the Company’s need for and ability to obtain additional financing, (vii) the possibility that the Company may not be able to secure approvals and other governmental clearances necessary to carry out the Company’s deployment and development plans, and (viii) the exercise of voting control the Company’s officers and directors collectively hold of the Company’s voting securities.

 

We had $10 in cash reserves as of March 31, 2013. Until we actually commence our deployment program, our monthly cash requirements are minimal.

 

Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the three months ended March 31, 2013, the Company has had no revenue and had a net loss of $1,750,090. As of March 31, 2013, the Company has an accumulated deficit of $7,039,755 during the development stage. And the Company has not emerged from the development stage. In view of these matters, the Company’s ability to continue as a going concern is dependent upon the Company’s ability to begin operations and to achieve a level of profitability. The Company intends on financing its future development activities and its working capital needs largely from the sale of public equity securities with some additional funding from other traditional financing sources, including term notes until such time that funds provided by operations are sufficient to fund working capital requirements. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

Off-Balance Sheet Arrangements

 

The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

 

During the period ended March 31, 2013, the Company’s affiliate received cash proceeds of $194,248 from outside investors for preferred stock subscriptions in the Company. The 48,562 shares of preferred stock have not been issued because the Company has not filed the Certificate of Designations with the State of Delaware, and the proceeds were deposited directly into the bank account of Synergistic, the Company’s affiliate. The preferred shares have not been issued to the investors and the Company has recorded the preferred stock subscriptions as a liability under preferred stock payable as of March 31, 2013.

 

 21 
   

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

Because we are a smaller reporting company, we are not required to provide the information required by this item.

 

ITEM 4. CONTROLS AND PROCEDURES.

 

Evaluation of Disclosure Controls and Procedures

 

Under the supervision and with the participation of our management, including our principal executive officer and principal accounting officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this report (the “Evaluation Date”). Based on this evaluation, our principal executive officer and principal accounting officer concluded as of the Evaluation Date that our disclosure controls and procedures were ineffective such that the material information required to be included in our SEC reports is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms relating to us, and was made known to them by others within those entities, particularly during the period when this report was being prepared.

 

Changes in Internal Control over Financial Reporting

 

There were no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-15 or 15d-15 of the Exchange Act that occurred during the fiscal quarter ended March 31, 2013 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

PART II — OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS.

 

To the best knowledge of the sole officer and sole director, the Company is not a party to any legal proceeding or litigation.

 

ITEM 1A. RISK FACTORS.

 

Not required for smaller reporting companies.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

 

During the period ended March 31, 2013, the Company’s affiliate received cash proceeds of $194,248 from outside investors for preferred stock subscriptions in the Company. The 48,562 shares of preferred stock have not been issued because the Company has not filed the Certificate of Designations with the State of Delaware, and the proceeds were deposited directly into the bank account of Synergistic, the Company’s affiliate. The preferred shares have not been issued to the investors and the Company has recorded the preferred stock subscriptions as a liability under preferred stock payable as of March 31, 2013.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES.

 

Not applicable.

 

ITEM 5. OTHER INFORMATION.

 

None.

 

 22 
   

 

ITEM 6. EXHIBITS.

 

        Incorporated by Reference    
Exhibit No.   Description   Form   Exhibit Number in form   Date of Filing   Filed or Furnished Herewith
                     
3.1   Certificate of Incorporation   10   3.1   08/28/2008    
                     
3.2   Certificate of Amendment of Certificate of Incorporation   S-1   3.1.2   05/22/2012    
                     
3.3   Bylaws of the Company   10   3.2   08/28/2008    
                     
3.4   Certificate of Designations of 8% Convertible Preferred Stock   8-K   3.4   5/13/2015    
                     
10.1   Subscription Agreement by and among Accelera Innovations, Inc. and Synergistic Holdings, LLC, dated as of June 13, 2011   8-K   10.1   06/17/2011    
                     
10.2   Consulting Agreement by and among Accelera Innovations, Inc. and Accelerated Venture Partners, LLC, dated as of June 16, 2011   8-K   10.4   06/17/2011    
                     
10.3   Licensing internet based software (CareNav) by and among Accelera Innovations, Inc. and Synergistic Holdings   8-K   10.1   08/29/2011    
                     
10.4   First Amendment and Modification to Licensing Agreement between Synergistic Holdings, LLC and Accelera Innovations, Inc. dated as of April 13, 2012.   8-K   10.1   04/16/2012    
                     
10.5   Company creates 2011 Employee Director and Consultant Stock Plan   10-K   10.6   04/16/2012    
                     
10.6+   Employment Agreement by and among Accelera Innovations, Inc. and John Wallin as CEO   8-K   10.1   04/30/2012    
                     
10.7+   Employment Agreement by and among Accelera Innovations, Inc. and James Millikan as COO   8-K   10.2   04/30/2012    
                     
10.8+   Employment Agreement by and among Accelera Innovations, Inc. and Cindy Boerum as CSO   8-K   10.3   04/30/2012    
                     
10.9   Lock-up and Leek-out Agreement between Accelera Innovations, Inc. and holder of common stock of Accelera Innovations, Inc.   S-1   10.5   05/22/2012    
                     
10.10   Stock Purchase Agreement by and among Accelera Innovations, Inc. and Behavioral Health Care Associates Ltd   8-K   10.1   12/02/2013    
                     
10.11   Operating Agreement by and among Accelera Innovations, Inc. and Accelera Healthcare Management Service Organization LLC   8-K   10-2   12/02/2013    
                     
10.12   Security Agreement by and among Company and Blaise J. Wolfrum MD for Behavioral Health Care Associates Ltd   8-K   10-3   12/02/2013    
                     
10.13   Secured Promissory Note in reference to Stock Purchase Agreement by and among Company and Blaise Wolfrum MD for Behavioral Health Care Associates Ltd   8-K   10-4   12/02/2013    
                     
10.14   Assignment of Stock in reference to Stock Purchase Agreement by and among Company and Blaise Wolfrum for Behavioral Health Care Associates Ltd   8-K   10-5   12/02/2013    
                     
10.15+   Employment Agreement by and among Accelera Innovations, Inc. and Blaise Wolfrum MD as President of the Accelera business unit Behavioral Health Care Associates Ltd,   8-K   10-6   12/02/2013    

 

 23 
   

 

10.16   Lock-up and Leak-Out Agreement between Company and Blaise Wolfrum MD   8-K   10-7   12/02/2013    
                     
10.17   Purchase Agreement by and among Accelera Innovations, Inc. and At Home Health Services LLC and All Staffing Services LLC   8-K   10-1   12/16/2013    
                     
10.18   Operating Agreement by and among Accelera Innovations, Inc. and At Home Health Management LLC   8-K   10-2   12/16/2013    
                     
10.19+   Employment Agreement by and among Accelera Innovations, Inc. and Rose M. Gallagher as President of Accelera business unit At Home Health   8-K   10-3   12/16/2013    
                     
10.20+   Employment Agreement by and among Accelera Innovations, Inc. and Daniel P. Gallagher as Director of Marketing and Business Development at At Home Health   8-K   10-4   12/16/2013    
                     
10.21   Second Amendment and Modification to Software Technology agreement payment dates by and among Accelera Innovations, Inc. and Synergistic Holdings LLC   10-K   10.20   04/15/2014    
                     
10.22+   Employment Agreement by and among Accelera Innovations, Inc. and Daniel Freeman as CFO   8-K   10.1   10/08/2014    
                     
10.23   Stock Purchase Agreement by and among Accelera Innovations, Inc. and SCI Home Health Inc.   8-K   10-1   10/14/2014    
                     
10.24   Promissory Note by and among Accelera Innovations, Inc. and AOK Property Investments LLC to purchase SCI Home Health Inc.   8-K   10-2   10/14/2014    
                     
10.25   Stock Purchase Agreement by and among Accelera Innovations, Inc. and Grace Home Health Care. Employment Agreement by and among Accelera Innovations, Inc. and Angelo L. Cadiente as CEO of the Accelera business unit Grace Home Health   8-K   10.1   12/04/2014    
                     
10.26   Asset Purchase Agreement by and among Accelera Innovations, Inc. and Watson Health Care Inc. and Affordable Nursing, Inc. dated November 25, 2014.   8-K   10.2   12/04/2014    
                     
10.27   Stock Purchase Agreement by and among Accelera Innovations, Inc. and Traditions Home Health Care, Inc. Employment by and among Accelera Innovations, Inc. and Sonny Nix as CEO of the Accelera business unit Traditions Home Health Care.   8-K   10.1   01/09/2015    
                     
 10.28   Amendment to Purchase Agreement between Accelera Innovations, Inc. and Traditions Home Health Care Inc. dated January 5, 2015.    10-Q   10.28   11/23/2015    
                     
10.29   Amendment dated May 7, 2015 to First Amendment and Modification to Licensing Agreement between Synergistic Holdings, LLC and Accelera Innovations, Inc. dated as of April 13, 2012.   10-Q   10.29   11/23/2015    
                     
10.30   Separation Agreement between Accelera Innovations, Inc. and Daniel Freemen dated as of May 8, 2015.   10-Q   10.30   11/23/2015    
                     
10.31   Amendment dated May 7, 2015 to Stock Purchase Agreement by and among Accelera Innovations, Inc. and Grace Home Health Care dated November 25, 2014.   10-Q   10.31   11/23/2015    

 

 24 
   

 

10.32   Amendment dated May 10, 2015 to Asset Purchase Agreement by and among Accelera Innovations, Inc., Watson Health Care Inc. and Grace Affordable Nursing, Inc. dated November 25, 2014.   10-Q   10.32   11/23/2015    
                     
31.1   Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer and Principal Financial Officer               X
                     
32.1   Section 1350 Certification of Principal Executive Officer and Principal Financial Officer               X
                     
101.INS   XBRL Instance               X
                     
101.SCH   XBRL Taxonomy Extension Schema               X
                     
101.CAL   XBRL Taxonomy Extension Calculation Linkbase               X
                     
101.DEF   XBRL Taxonomy Extension Definition Linkbase               X
                     
101.LAB   XBRL Taxonomy Extension Labels Linkbase               X
                     
101.PRE   XBRL Taxonomy Extension Presentation Linkbase               X

 

+ Management compensation plan or arrangement.

 

 25 
   

 

SIGNATURES

 

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.

 

Dated: April 21, 2016    
     
  ACCELERA INNOVATIONS, INC.
     
  By: /s/ John F. Wallin
    John F. Wallin
    Chief Executive Officer (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)

 

 26 
   

EX-31.1 2 ex31-1.htm

 

Exhibit 31.1

 

CERTIFICATIONS

 

I, John F. Wallin, certify that:

 

  1. I have reviewed this Quarterly Report on Form 10-Q/A for the quarterly period ended March 31, 2013 of Accelera Innovations, Inc. (the “registrant”);
     
  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.
     
    (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.

 

Date: April 21, 2016  
   
/s/ John F. Wallin  
John F. Wallin  
Chief Executive Officer (Principal Executive Officer and Principal Financial Officer)  

 

 

  
   
EX-32.1 3 ex32-1.htm

 

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 Accelera Innovations, Inc. (the “Company”) for the quarterly period ended March 31, 2013 as filed with the Securities and Exchange Commission (the “Report”), I, John F. Wallin, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

 

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 operation of the Company.

 

Date: April 21, 2016 /s/ John F. Wallin
  John F. Wallin
  Chief Executive Officer
  (Principal Executive Officer and Principal Financial Officer)

 

This certification accompanies this Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

 

  
   
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Document and Entity Information - shares
3 Months Ended
Mar. 31, 2013
Apr. 08, 2016
Document And Entity Information    
Entity Registrant Name ACCELERA INNOVATIONS, INC.  
Entity Central Index Key 0001444144  
Document Type 10-Q/A  
Document Period End Date Mar. 31, 2013  
Amendment Flag true  
Amendment Description Amendment No. 1  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   46,713,716
Trading Symbol ACNV  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2013  
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.3.1.900
Condensed Balance Sheets - USD ($)
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2012
Dec. 31, 2011
Apr. 28, 2008
Current Assets          
Cash $ 10 $ 160 $ 5,874
Due from shareholder 194,248      
Total Current Assets 194,258      
TOTAL ASSETS $ 194,258 $ 0      
Current Liabilities          
Accounts payable      
Preferred stock subscription payable $ 194,248        
Total Current Liabilities 194,248      
TOTAL LIABILITIES $ 194,248      
Stockholders’ Equity          
Preferred stock; $0.0001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding      
Common stock; 100,000,000 authorized; $0.0001 par value 21,511,812 shares and 21,311,812 shares issued and outstanding as of March 31, 2013 and December 31, 2012 respectively $ 2,151 $ 2,131     $ 4,000
Additional paid in capital 7,037,614 5,287,534      
Accumulated deficit during development stage (7,039,755) $ (5,289,665)      
Total Stockholders’ Equity 10      
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 194,258 $ 0      
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.3.1.900
Condensed Balance Sheets (Parenthetical) - $ / shares
Mar. 31, 2013
Dec. 31, 2012
Statement of Financial Position [Abstract]    
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, shares authorized 100,000,000 100,000,000
Common stock, par value $ 0.0001 $ 0.0001
Common Stock, shares issued 21,511,812 21,311,812
Common stock, shares outstanding 21,511,812 21,311,812
XML 13 R4.htm IDEA: XBRL DOCUMENT v3.3.1.900
Condensed Statements of Operations (Unaudited) - USD ($)
3 Months Ended 59 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Income Statement [Abstract]      
Revenues
Operating Expenses      
General and administrative $ 1,750,090 $ 33,391 $ 7,039,755
Total operating expenses 1,750,090 33,391 7,039,755
NET LOSS $ (1,750,090) $ (33,391) $ (7,039,755)
BASIC AND DILUTED LOSS PER SHARE $ (0.08) $ (0.00)  
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 21,505,145 20,567,625  
XML 14 R5.htm IDEA: XBRL DOCUMENT v3.3.1.900
Condensed Statements of Cash Flows - USD ($)
3 Months Ended 59 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
OPERATING ACTIVITIES:      
Net loss $ (1,750,090) $ (33,391) $ (7,039,755)
Adjustment to reconcile net loss to net cash used in operations:      
Stock based compensation $ 1,750,000 $ 6,750,000
Changes in operating assets and liabilities:      
Accounts payable and accrued expenses
Net Cash used in Operating Activities $ (90) $ (33,391) $ (289,755)
FINANCING ACTIVITIES:      
Proceeds from common stock issuance $ 27,650 253,250
Purchase of treasury stock (300)
Shareholder advances $ 100 $ 27 36,815
Net cash provided by financing activities 100 27,677 289,765
Net increase (decrease) in cash $ 10 (5,714) $ 10
Cash, beginning of period 5,874
Cash, end of period $ 10 $ 160 $ 10
Supplemental disclosure of non-cash investing and financing activities:      
Proceeds from issuance of preferred stock deposited into Synergistic Holdings, LLC 194,248 194,248
Common shares issued for cashless exercise of stock options 20 95
Forgiveness of debt by shareholder $ 100 $ 27 $ 20,460
XML 15 R6.htm IDEA: XBRL DOCUMENT v3.3.1.900
Background Information
3 Months Ended
Mar. 31, 2013
Background Information  
Background Information

1. Background Information

 

Accelera Innovations, Inc., formerly Accelerated Acquisitions IV, Inc. (the “Company”) was incorporated in the state of Delaware on April 29, 2008 for the purpose of raising capital that is intended to be used in connection with its business plan which may include a possible merger, acquisition or other business combination with an operating business.

 

The Company is currently in the development stage. All activities of the Company to date relate to its organization, initial funding, share issuances and regulatory compliance.

 

On June 13, 2011, Synergistic Holdings, LLC (“Synergistic”) agreed to acquire 17,000,000 shares of the Company’s common stock par value $0.0001 for a price of $0.0001 per share. At the same time, Accelerated Venture Partners, LLC agreed to tender 3,750,000 of their 5,000,000 shares of the Company’s common stock par value $0.0001 for cancellation. Following these transactions, Synergistic owned 93.15% of the Company’s 18,250,000 issued and outstanding shares of common stock par value $0.0001 and the interest of Accelerated Venture Partners, LLC was reduced to approximately 6.85% of the total issued and outstanding shares. Simultaneously with the share purchase, Timothy Neher resigned from the Company’s Board of Directors and John Wallin was simultaneously appointed to the Company’s Board of Directors. Such action represents a change of control of the Company.

 

On October 18, 2011 the Company filed a Certificate of Amendment to its Certificate of Incorporation with the Secretary of State of Delaware and change its name from Accelerated Acquisition IV, Inc. to “Accelera Innovations, Inc.”

 

The Company is a healthcare service company that will initially focus on its sole asset that was licensed to the Company by Synergistic, a privately-held company organized under the laws of Illinois to further develop, pursuant to which the Company was granted a thirty (30) year exclusive, non-transferrable worldwide license for proprietary Internet-based, software (“Accelera Technology”) that improves the functionality and performance of healthcare services by making clinical healthcare data available to healthcare consumers. This relevant data is intended to serve as the backbone for self-management tools that will allow these same healthcare consumers to facilitate the self-management portion of their doctor-prescribed care plan and focus on the mostly costly disease states. This is accomplished through the proprietary technology, which is intended to identify and measure the severity of high/low stratification of the sickness level based upon evidence-based clinical and medical rules and delivers best-of-breed tools to insurance companies, doctors, hospitals, and employers.

XML 16 R7.htm IDEA: XBRL DOCUMENT v3.3.1.900
Going Concern
3 Months Ended
Mar. 31, 2013
Going Concern  
Going Concern

2. Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the three months ended March 31, 2013, the Company has had no revenue and had a net loss of $1,750,090. As of March 31, 2013, the Company has an accumulated deficit of $7,039,755 during the development stage. And the Company has not emerged from the development stage. In view of these matters, the Company’s ability to continue as a going concern is dependent upon the Company’s ability to begin operations and to achieve a level of profitability. The Company intends on financing its future development activities and its working capital needs largely from the sale of public equity securities with some additional funding from other traditional financing sources, including term notes until such time that funds provided by operations are sufficient to fund working capital requirements. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

XML 17 R8.htm IDEA: XBRL DOCUMENT v3.3.1.900
Significant Accounting Policies
3 Months Ended
Mar. 31, 2013
Accounting Policies [Abstract]  
Significant Accounting Policies

3. Significant Accounting Policies

 

USE OF ESTIMATES - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

CASH AND CASH EQUIVALENTS - All cash, other than held in escrow, is maintained with a major financial institution in the United States. Deposits with this bank may exceed the amount of insurance provided on such deposits. Temporary cash investments with an original maturity of three months or less are considered to be cash equivalents. The company has cash amounted to $0 and $10 as of March 31, 2012 and 2013 respectively and does not have cash equivalents as of March 31, 2013 and December 31, 2012.

 

RESEARCH AND DEVELOPMENT EXPENSES - Expenditures for research, development, and engineering of products are expensed as incurred.

 

COMMON STOCK - The Company records common stock issuances when all of the legal requirements for the issuance of such common stock have been satisfied.

 

REVENUE AND COST RECOGNITION - The Company has no current source of revenue; therefore the Company has not yet adopted any policy regarding the recognition of revenue or cost.

 

PREFERRED STOCK SUBSCRIPTION PAYABLE – During the period ended March 31, 2013, the Company’s affiliate received cash proceeds of $194,248 from investors for preferred stock subscriptions in the Company. The 48,562 shares of preferred stock have not been issued because the Company has not filed the Certificate of Designations to the State of Delaware, and the proceeds were deposited directly into the bank account of Synergistic, the Company’s affiliate. The preferred shares have not been issued to the investors and the Company has recorded the preferred stock subscriptions as a liability under preferred stock payable as of March 31, 2013.

 

ADVERTISING COSTS - The Company’s policy regarding advertising is to expense advertising when incurred.

 

INCOME TAXES - Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes resulting from temporary differences. Such temporary differences result from differences in the carrying value of assets and liabilities for tax and financial reporting purposes. The deferred tax assets and liabilities represent the future tax consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

 

The Company adopted the provisions of FASB ASC 740-10 “Uncertainty in Income Taxes” (ASC 740-10), on January 1, 2007. The Company has not recognized a liability as a result of the implementation of ASC 740-10. A reconciliation of the beginning and ending amount of unrecognized tax benefits has not been provided since there is no unrecognized benefit since the date of adoption. The Company has not recognized interest expense or penalties as a result of the implementation of ASC 740-10. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.

 

LOSS PER SHARE - Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted loss per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. At March 31, 2013, the Company did not have any potentially dilutive common shares.

 

FINANCIAL INSTRUMENTS - In September 2006, the Financial Accounting Standards Board (FASB) introduced a framework for measuring fair value and expanded required disclosure about fair value measurements of assets and liabilities. The Company adopted the standard for those financial assets and liabilities as of the beginning of the 2008 fiscal year and the impact of adoption was not significant. FASB Accounting Standards Codification (ASC) 820 “Fair Value Measurements and Disclosures” (ASC 820) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

 

Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
   
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
   
Level 3 - Inputs that are both significant to the fair value measurement and unobservable.

 

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2013. These financial instruments include stock options granted to the officers in 2012 and the three months ended March 31, 2013.

 

RECENT ACCOUNTING PRONOUNCEMENTS

 

Effective January 2012, the Company adopted ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (ASU 2011-04). ASU 2011-04 represents the converged guidance of the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) on fair value measurement. A variety of measures are included in the update intended to either clarify existing fair value measurement requirements, change particular principles requirements for measuring fair value or for disclosing information about fair value measurements. For many of the requirements, the FASB does not intend to change the application of existing requirements under Accounting Standards Codification (ASC) Topic 820, Fair Value Measurements. ASU 2011-04 was effective for interim and annual periods beginning after December 15, 2011. The adoption of this update did not have a material impact on the financial statements.

 

Effective January 2012, the Company adopted ASU No. 2011-05, Presentation of Comprehensive Income (ASU 2011-05). ASU 2011-05 is intended to increase the prominence of items reported in other comprehensive income and to facilitate convergence of accounting guidance in this area with that of the IASB. The amendments require that all nonowner changes in shareholders’ equity be presented in a single continuous statement of comprehensive income or in two separate but consecutive statements. In December 2011, the FASB issued ASU No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05 (ASU 2011-12). ASU 2011-12 defers the provisions of ASU 2011-05 that require the presentation of reclassification adjustments on the face of both the statement of income and statement of other comprehensive income. Amendments under ASU 2011-05 that were not deferred under ASU 2011-12 will be applied retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this update did not have a material impact on the financial statements.

 

In December 2011, the FASB issued ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities (ASU 2011-11). The amendments in ASU 2011-11 require the disclosure of information on offsetting and related arrangements for financial and derivative instruments to enable users of its financial statements to understand the effect of those arrangements on its financial position. Amendments under ASU 2011-11 will be applied retrospectively for fiscal years, and interim periods within those years, beginning after January 1, 2013. The Company is evaluating the effect, if any, adoption of ASU 2011-11 will have on its financial statements.

 

In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive (ASU 2013-02). This guidance is the culmination of the FASB’s deliberation on reporting reclassification adjustments from accumulated other comprehensive income (AOCI). The amendments in ASU 2013-02 do not change the current requirements for reporting net income or other comprehensive income. However, the amendments require disclosure of amounts reclassified out of AOCI in its entirety, by component, on the face of the statement of operations or in the notes thereto. Amounts that are not required to be reclassified in their entirety to net income must be cross referenced to other disclosures that provide additional detail. This standard is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. The Company is evaluating the effect, if any, the adoption of ASU 2013-02 will have on its financial statements.

 

In April 2013, the FASB issued ASU No. 2013-07, Presentation of Financial Statements (Top 205): Liquidation Basis of Accounting. The objective of ASU No. 2013-07 is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. The amendments in this standard is effective prospectively for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. We are evaluating the effect, if any, adoption of ASU No. 2013-07 will have on our financial statements.

 

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the United States Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

XML 18 R9.htm IDEA: XBRL DOCUMENT v3.3.1.900
Equity Transactions
3 Months Ended
Mar. 31, 2013
Equity [Abstract]  
Equity Transactions

4. Equity Transactions

 

The Company has two classes of stock, preferred stock and common stock. There are 10 million shares of $.0001 par value preferred shares authorized. Preferred shares have not been defined for any preferences. There are 100 million shares of $.0001 par value common shares authorized. The company has 21,511,812 and 21,311,812 issued and outstanding shares as of March 31, 2013 and December 31, 2012, respectively.

 

At inception, the Company has issued 5,000,000 shares of restricted common stock to the incorporator for initial funding, in the amount of $4,000.

 

On June 16, 2011, the Company issued 17,000,000 shares of common stock in exchange for licensing agreement and consulting agreement. In association with the change in control and exchange, the former majority shareholder tendered 3,750,000 shares of common stock in exchange for option to purchase 2,250,000 shares. The option was exercised.

 

From the period beginning September 2011 through December 31, 2011, the Company issued 39,975 shares of common stock, at $4.00 per share in cash, for a total amount of $159,900.

 

From the period beginning January 1, 2012 through March 31, 2012, the Company issued 6,912 shares of common stock, at $4.00 per share in cash, for a total amount of $27,650.

 

From the period beginning April 1, 2012 through June 30, 2012, the Company issued 15,000 shares of common stock, at $4.00 per share in cash, for a total amount of $60,000.

 

On April 26, 2012, the Company entered into an employment agreement with John F. Wallin., as the President and Chief Executive Officer “CEO” of the Company. In consideration of the services, the Company agreed to issue a stock option to purchase 1,750,000 shares of the Company’s common stock at an exercise price of $.0001 per share, vesting over a four year period. The stock option shall vest with respect to 20% of the total number of shares which are the subject of the option (350,000 shares) immediately after the effective date of the agreement, thereafter the remaining shares granted under the option shall vest ratably on a monthly basis (29,166 shares per month) at the end of each month over a 48-month period. Notwithstanding the foregoing, in the event of a closing of a Change of Control transaction, all options from this agreement and others shall immediately vest and become fully exercisable. The employment agreement with Mr. Wallin provides that, upon completion of two million dollars in financing, the Company shall begin to pay John a base salary of $250,000 per year, to be paid at the times and subject to the Company’s standard payroll practices, subject to applicable withholding. Base salary shall be reviewed at least annually, and increased as determined by the Board. So long as Mr. Wallin has not been terminated for cause, as defined in the employment agreement, he will be eligible for bonus compensation, payable immediately following completion of the Company’s financial statements for each full fiscal year, commencing with the 2013 fiscal year. Mr. Wallin’s annual bonus targets are still being developed by the Company and will be adjusted from time to time, based upon the Company’s achieving 100% of certain financial metrics plan targets to be determined by the Board.

 

On April 26, 2012, the Company entered into an employment agreement with James R. Millikan, as the Chief Operating Officer “COO” of the Company reporting to the President and CEO. In consideration of the services, the Company agreed to issue a stock option to purchase 1,000,000 shares of the Company’s common stock at an exercise price of $.0001 per share, vesting over a four year period. The stock option shall vest with respect to 20% of the total number of shares which are the subject of the option (200,000 shares) immediately after the effective date of the agreement, thereafter the remaining shares granted under the option shall vest ratably on a monthly basis (16,666 shares per month) at the end of each month over a 48-month period. Notwithstanding the foregoing, in the event of a closing of a Change of Control transaction, all options from this agreement and others shall immediately vest and become fully exercisable. The employment agreement with Mr. Millikan provides that, upon completion of two million dollars in financing, the Company shall begin to pay Jim a base salary of $175,000 per year, to be paid at the times and subject to the Company’s standard payroll practices, subject to applicable withholding. Base salary shall be reviewed at least annually, and increased as determined by the Board. So long as Mr. Millikan has not been terminated for cause, as defined in the employment agreement, he will be eligible for bonus compensation, payable immediately following completion of the Company’s financial statements for each full fiscal year, commencing with the 2013 fiscal year. Mr. Millikan’s annual bonus targets are still being developed by the Company and will be adjusted from time to time, based upon the Company’s achieving 100% of certain financial metrics plan Targets to be determined by the Board.

 

On, April 26, 2012, the Company entered into an employment agreement with Cynthia Boerum, as the Chief Strategic Officer “CSO” of the Company reporting to the President and CEO. In consideration of the services, the Company agreed to issue a stock option to purchase 1,000,000 shares of the Company’s common stock at an exercise price of $.0001 per share, vesting over a four year period. The stock option shall vest with respect to 20% of the total number of shares which are the subject of the option (200,000 shares) immediately after the effective date of the agreement, thereafter the remaining shares granted under the option shall vest ratably on a monthly basis (16,666 shares per month) at the end of each month over a 48-month period. Notwithstanding the foregoing, in the event of a closing of a Change of Control transaction, all options from this agreement and others shall immediately vest and become fully exercisable. The employment agreement with Ms. Boerum provides that, upon completion of two million dollars in financing, the Company shall begin to pay Cynthia a base salary of $150,000 per year, to be paid at the times and subject to the Company’s standard payroll practices, subject to applicable withholding. Base salary shall be reviewed at least annually, and increased as determined by the Board. So long as Ms. Boerum has not been terminated for cause, as defined in the employment agreement, she will be eligible for bonus compensation, payable immediately following completion of the Company’s financial statements for each full fiscal year, commencing with the 2013 fiscal year. Ms. Boerum’s annual bonus targets are still being developed by the Company and will be adjusted from time to time, based upon the Company’s achieving 100% of certain financial metrics plan Targets to be determined by the Board.

 

On, January 3, 2013 the Company entered into an employment agreement with Patrick Custardo, as the Chief Acquisitions Officer “CAO” of the Company reporting to the President and CEO. In consideration of the services, the Company agreed to issue a stock option to purchase 1,000,000 shares of the Company’s common stock at an exercise price of $.0001 per share, vesting over a four year period. The stock option shall vest with respect to 20% of the total number of shares which are the subject of the option (200,000 shares) immediately after the effective date of the agreement, thereafter the remaining shares granted under the option shall vest ratably on a monthly basis (16,666 shares per month) at the end of each month over a 48-month period. Notwithstanding the foregoing, in the event of a closing of a Change of Control transaction, all options from this agreement and others shall immediately vest and become fully exercisable. The employment agreement with Mr. Custardo provides that, upon completion of two million dollars in financing, the Company shall begin to pay Patrick a base salary of $150,000 per year, to be paid at the times and subject to the Company’s standard payroll practices, subject to applicable withholding. Base salary shall be reviewed at least annually, and increased as determined by the Board. So long as Mr. Custardo has not been terminated for cause, as defined in the employment agreement, she will be eligible for bonus compensation, payable immediately following completion of the Company’s financial statements for each full fiscal year, commencing with the 2013 fiscal year. Mr. Custardo’s annual bonus targets are still being developed by the Company and will be adjusted from time to time, based upon the Company’s achieving 100% of certain financial metrics plan Targets to be determined by the Board.

 

During the period ended March 31, 2013, the Company’s affiliate received cash proceeds of $194,248 from investors for preferred stock subscriptions in the Company. The 48,562 shares of preferred stock have not been issued because the Company has not filed the Certificate of Designations to the State of Delaware, and the proceeds were deposited directly into the bank of account of Synergistic, the Company’s affiliate. The preferred shares have not been issued to the investors and the Company has recorded the preferred stock subscriptions as a liability under preferred stock payable as of March 31, 2013.

 

There are no warrants, or other common stock equivalents outstanding as of March 31, 2013 and December 31, 2012.

 

Stock-based Compensation

 

The Company recognizes stock-based compensation expense in its statement of operations based on estimates of the fair value of employee stock option and stock grant awards as measured on the grant date. For stock options, the Company uses the Black-Scholes option pricing model to determine the value of the awards granted. The Company amortizes the estimated value of the options as of the grant date over the stock options’ vesting period, which is generally four years.

 

The Company has estimated the value of common stock into which the options are exercisable at $4 per share for financial reporting purposes. This amount was determined based on the price our stock was sold for in past private placements, the minimum stock price required for listing on any Nasdaq market, and the amount also approximates a $85 million valuation for the entire Company, which is considered “micro-cap” by most equity analysts. The stock based compensation expense is an estimate and significant judgment was involved in attempting to determine the value of common stock. The Company’s common stock has never traded publicly, and no stock has traded in private markets either, except for privately negotiated sales to the founder and other private investors of the company and the founder of the technology from which the company subsequently licensed rights. The Company does not have any offers for purchase of its common stock in any stage, and no stock is registered for resale with the Securities and Exchange Commission.

 

The Company believes the only material estimate used in estimating the value stock options was the estimated fair value of the common stock, and that assumed volatility, term, interest rate and dividend yield changes would be not result in material differences in stock option valuations. Based on the assumed value of common stock, the grant-date fair value of options granted during the three months ended March 31, 2013, the year ended 2012 and 2011 was $6,750,000. The Company recognized stock-based compensation expense of $1,750,000, 5,000,000 and $0 during the three months ended March 31, 2013, year ended 2012 and 2011, respectively, which were included in general and administrative expenses. As of March 31, 2013, there was $13,000,000 of total unrecognized compensation cost related to unvested stock-based compensation awards, which is expected to be recognized over the weighted average remaining vesting period of approximately 3.5 years.

 

The following is a summary of the outstanding options, as of March 31, 2013:

 

                Weighted Average
    Options     Options     Intrinsic     Exercise     Remaining
    Outstanding     Vested     Value     Price     Term
Options, December 31, 2011     -       -     $ -     $ -      
Granted     -       -                      
Exercised     -       -                      
Forfeited / expired     -       -                      
Options, December 31, 2011     -       -                      
Granted     3,750,000       1,250,000     $ 4.00     $ 0.0001     3.3 years
Exercised     (750,000 )     -                      
Forfeited / expired     -       -                      
Options, December 31, 2012     3,000,000       1,250,000                      
Granted     1,000,000       437,500       4.00       0.0001     4 years
Exercised     (200,000 )                            
Forfeited / expired     -       -                      
Options, March 31, 2013     3,800,000       1,687,500                      

 

Weighted average assumptions in the calculation of option value:

 

Historical Volatility 268.0%
Risk Free Rate 0.83%
Dividend Yield 0.00%
Forfeiture Rate 0.00%

 

The Company has reserved a total of 5,327,953 shares of common stock for issuance under its stock award plan, and 4,327,953 of these shares remained available for future issuance as of March 31, 2013.

XML 19 R10.htm IDEA: XBRL DOCUMENT v3.3.1.900
Income Taxes
3 Months Ended
Mar. 31, 2013
Income Tax Disclosure [Abstract]  
Income Taxes

5. Income Taxes

 

The Company has not recognized an income tax benefit for its operating losses generated based on uncertainties concerning its ability to generate taxable income in future periods. The tax benefit for the periods presented is offset by a valuation allowance established against deferred tax assets arising from the net operating losses and other temporary differences, the realization of which could not be considered more likely than not. In future periods, tax benefits and related deferred tax assets will be recognized when management considers realization of such amounts to be more likely than not. As of March 31, 2013 the Company had a loss and for the period April 29, 2008 (date of inception) through March 31, 2013. The net operating losses resulting from operating activities result in deferred tax assets of approximately $269,590 at the effective statutory rates which will expire by the year 2032. The deferred tax asset has been off-set by an equal valuation allowance.

 

There are no current or deferred income tax expense or benefit recognized for the period ended March 31, 2013.

XML 20 R11.htm IDEA: XBRL DOCUMENT v3.3.1.900
Restatement of Previously Issued Unaudited Condensed Financial Statements
3 Months Ended
Mar. 31, 2013
Accounting Changes and Error Corrections [Abstract]  
Restatement of Previously Issued Unaudited Condensed Financial Statements

6. Restatement of Previously Issued Unaudited Condensed Financial Statements

 

As previously disclosed in the Company’s current report on Form 8-K filed with the SEC on July 21, 2015, the Company’s Board of Directors determined that the Company’s financial statements included in (i) its quarterly reports on Form 10-Q for the periods ended March 31, 2013, June 30, 2013 and September 30, 2013, (ii) its annual report on Form 10-K for the year ended December 31, 2013, (iii) its quarterly reports on Form 10-Q for the periods ended March 31, 2014, June 30, 2014 and September 30, 2014, and (iv) its annual report on Form 10-K for the year ended December 31, 2014 (collectively, the “Financial Statements”) could not be relied on.

 

The Financial Statements contained errors related to (i) issuances of the Company’s preferred stock, the receipt of funds related to these issuances and the accounting for the use of the proceeds from these sales in each of the periods covered by the Financial Statements disclosed above, (ii) disclosure of a related party transactions, and (iii) the valuation of shares of the Company’s common stock issued as compensation.

 

As more fully described in the unaudited financial statements contained herein, management determined that previously issued unaudited financial statements for the three months ended March 31, 2013 contained an error, which was non-cash in nature, relating to the issuance of Company preferred stock, the receipt of funds related to such issuance and the accounting for the use of proceeds from such sale. The Company evaluated the impact of this error under the SEC’s authoritative guidance on materiality and determined that the impact of this error on the unaudited financial statements for the three months ended March 31, 2013 was material. On July 20, 2015, after review by the Company’s independent registered public accounting firm, the Company’s Board of Directors concluded that the Company should restate its unaudited financial statements for the three months ended March 31, 2013 to reflect the correction of the previously identified error in the unaudited financial statements for this period.

 

In order to reflect the error described herein, the Company restated the following unaudited financial statements of the Company, each in its entirety: (a) condensed balance sheet as of March 31, 2013, and (b) condensed statements of cash flows for the three months ended March 31, 2013 and for the cumulative period from inception (April 29, 2008) to March 31, 2013. There was no impact to our statement of operations or actual cash balances as a result of this error, and this error does not change net cash flows from operating activities, investing activities, and financing activities.

 

During the period ended March 31, 2013, the Company’s affiliate received cash proceeds of $194,248 from investors for preferred stock subscriptions in the Company. The 48,562 shares of preferred stock have not been issued because the Company has not filed the Certificate of Designations with the State of Delaware, and the proceeds were deposited directly into the bank account of Synergistic, the Company’s affiliate. The preferred shares have not been issued to the investors and the Company has recorded the preferred stock subscriptions as a liability under preferred stock payable as of March 31, 2013.

 

After a detailed review of the facts, the Company has concluded that the common stock and preferred stock to be issued as of March 31, 2013 should have been recorded in the financial statements for the three months ended March 31, 2013.

 

The following tables present the restated items for the applicable date.

 

ACCELERA INNOVATIONS, INC.

CONDENSED BALANCE SHEET

AS OF MARCH 31, 2013

 

    As Originally     Amount of        
    Presented     Restatement     As Restated  
                   
ASSETS                        
                         
Current Assets:                        
Cash   $ 10     $ -     $ 10  
Due from stockholder     -       194,248       194,248  
Total current assets     10       194,248       194,258  
                         
TOTAL ASSETS   $ 10     $ 194,248     $ 194,258  
                         
LIABILITIES AND STOCKHOLDERS’ DEFICIT                        
                         
Current Liabilities:                        
Accounts payable   $ -     $ -     $ -  
Preferred stock subscription payable     -       194,248       194,248  
Total current liabilities     -       194,248       194,248  
                         
TOTAL LIABILITIES     -       194,248       194,248  
                         
STOCKHOLDERS’ DEFICIT                        
Preferred stock     -       -       -  
Common stock     2,151       -       2,151  
Additional paid-in capital     7,037,614       -       7,037,614  
Accumulated deficit     (7,039,755 )     -       (7,039,755 )
Total stockholders’ deficit     10       -       10  
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT   $ 10     $ 194,248     $ 194,258  

 

ACCELERA INNOVATIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

THREE MONTH PERIOD ENDED MARCH 31, 2013

 

    As Originally     Amount of        
    Presented     Restatement     As Restated  
                   
Revenues   $ -     $ -     $ -  
                         
Operating expenses:                        
General and administrative expenses     1,750,090       -       1,750,090  
Total operating expenses     1,750,090       -       1,750,090  
                         
Net loss   $ (1,750,090 )   $ -     $ (1,750,090 )
                         
Basic and diluted loss per share   $ (0.08 )           $ (0.08 )
                         
Weighted average number of shares outstanding     21,505,145               21,505,145  

 

ACCELERA INNOVATIONS, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

THREE MONTH PERIOD ENDED MARCH 31, 2013

 

    As Originally     Amount of        
    Presented     Restatement     As Restated  
                   
OPERATING ACTIVITIES:                        
Net loss   $ (1,750,090 )   $ -     $ (1,750,090 )
Adjustments to reconcile net loss to net cash used in operating activities:                        
Stock based compensation     1,750,000       -       1,750,000  
Change in current assets and liabilities:                        
Accounts payable and accrued expenses     -       -       -  
Net cash used in operating activities     (90 )     -       (90 )
                         
FINANCING ACTIVITIES:                        
Shareholder advances     100       -       100  
Net cash provided by financing activities     100       -       100  
                         
NET INCREASE IN CASH     10       -       10  
                         
CASH, BEGINNING OF PERIOD     -       -       0  
                         
CASH, END OF PERIOD   $ 10     $ -     $ 10  
                         
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:                        
Proceeds from issuance of preferred stock deposited into Synergistic Holdings, LLC   $ -     $ 194,248     $ 194,248  
Common shares issued for cashless exercise of stock options   $ 20     $ -     $ 20  
Forgiveness of debt by shareholder   $ 100     $ -     $ 100  

XML 21 R12.htm IDEA: XBRL DOCUMENT v3.3.1.900
Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2013
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 of America 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 the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

CASH AND CASH EQUIVALENTS - All cash, other than held in escrow, is maintained with a major financial institution in the United States. Deposits with this bank may exceed the amount of insurance provided on such deposits. Temporary cash investments with an original maturity of three months or less are considered to be cash equivalents. The company has cash amounted to $0 and $10 as of March 31, 2012 and 2013 respectively and does not have cash equivalents as of March 31, 2013 and December 31, 2012.

Research and Development Expenses

RESEARCH AND DEVELOPMENT EXPENSES - Expenditures for research, development, and engineering of products are expensed as incurred.

Common Stock

COMMON STOCK - The Company records common stock issuances when all of the legal requirements for the issuance of such common stock have been satisfied.

Revenue and Cost Recognition

REVENUE AND COST RECOGNITION - The Company has no current source of revenue; therefore the Company has not yet adopted any policy regarding the recognition of revenue or cost.

Preferred Stock Subscription Payable

PREFERRED STOCK SUBSCRIPTION PAYABLE – During the period ended March 31, 2013, the Company’s affiliate received cash proceeds of $194,248 from investors for preferred stock subscriptions in the Company. The 48,562 shares of preferred stock have not been issued because the Company has not filed the Certificate of Designations to the State of Delaware, and the proceeds were deposited directly into the bank account of Synergistic, the Company’s affiliate. The preferred shares have not been issued to the investors and the Company has recorded the preferred stock subscriptions as a liability under preferred stock payable as of March 31, 2013.

Advertising Costs

ADVERTISING COSTS - The Company’s policy regarding advertising is to expense advertising when incurred.

Income Taxes

INCOME TAXES - Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes resulting from temporary differences. Such temporary differences result from differences in the carrying value of assets and liabilities for tax and financial reporting purposes. The deferred tax assets and liabilities represent the future tax consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

 

The Company adopted the provisions of FASB ASC 740-10 “Uncertainty in Income Taxes” (ASC 740-10), on January 1, 2007. The Company has not recognized a liability as a result of the implementation of ASC 740-10. A reconciliation of the beginning and ending amount of unrecognized tax benefits has not been provided since there is no unrecognized benefit since the date of adoption. The Company has not recognized interest expense or penalties as a result of the implementation of ASC 740-10. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.

Loss Per Share

LOSS PER SHARE - Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted loss per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. At March 31, 2013, the Company did not have any potentially dilutive common shares.

Financial Instruments

FINANCIAL INSTRUMENTS - In September 2006, the Financial Accounting Standards Board (FASB) introduced a framework for measuring fair value and expanded required disclosure about fair value measurements of assets and liabilities. The Company adopted the standard for those financial assets and liabilities as of the beginning of the 2008 fiscal year and the impact of adoption was not significant. FASB Accounting Standards Codification (ASC) 820 “Fair Value Measurements and Disclosures” (ASC 820) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

 

Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
   
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
   
Level 3 - Inputs that are both significant to the fair value measurement and unobservable.

 

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2013. These financial instruments include stock options granted to the officers in 2012 and the three months ended March 31, 2013.

Recent Accounting Pronouncements

RECENT ACCOUNTING PRONOUNCEMENTS

 

Effective January 2012, the Company adopted ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs (ASU 2011-04). ASU 2011-04 represents the converged guidance of the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) on fair value measurement. A variety of measures are included in the update intended to either clarify existing fair value measurement requirements, change particular principles requirements for measuring fair value or for disclosing information about fair value measurements. For many of the requirements, the FASB does not intend to change the application of existing requirements under Accounting Standards Codification (ASC) Topic 820, Fair Value Measurements. ASU 2011-04 was effective for interim and annual periods beginning after December 15, 2011. The adoption of this update did not have a material impact on the financial statements.

 

Effective January 2012, the Company adopted ASU No. 2011-05, Presentation of Comprehensive Income (ASU 2011-05). ASU 2011-05 is intended to increase the prominence of items reported in other comprehensive income and to facilitate convergence of accounting guidance in this area with that of the IASB. The amendments require that all nonowner changes in shareholders’ equity be presented in a single continuous statement of comprehensive income or in two separate but consecutive statements. In December 2011, the FASB issued ASU No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05 (ASU 2011-12). ASU 2011-12 defers the provisions of ASU 2011-05 that require the presentation of reclassification adjustments on the face of both the statement of income and statement of other comprehensive income. Amendments under ASU 2011-05 that were not deferred under ASU 2011-12 will be applied retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2011. The adoption of this update did not have a material impact on the financial statements.

 

In December 2011, the FASB issued ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities (ASU 2011-11). The amendments in ASU 2011-11 require the disclosure of information on offsetting and related arrangements for financial and derivative instruments to enable users of its financial statements to understand the effect of those arrangements on its financial position. Amendments under ASU 2011-11 will be applied retrospectively for fiscal years, and interim periods within those years, beginning after January 1, 2013. The Company is evaluating the effect, if any, adoption of ASU 2011-11 will have on its financial statements.

 

In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive (ASU 2013-02). This guidance is the culmination of the FASB’s deliberation on reporting reclassification adjustments from accumulated other comprehensive income (AOCI). The amendments in ASU 2013-02 do not change the current requirements for reporting net income or other comprehensive income. However, the amendments require disclosure of amounts reclassified out of AOCI in its entirety, by component, on the face of the statement of operations or in the notes thereto. Amounts that are not required to be reclassified in their entirety to net income must be cross referenced to other disclosures that provide additional detail. This standard is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. The Company is evaluating the effect, if any, the adoption of ASU 2013-02 will have on its financial statements.

 

In April 2013, the FASB issued ASU No. 2013-07, Presentation of Financial Statements (Top 205): Liquidation Basis of Accounting. The objective of ASU No. 2013-07 is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. The amendments in this standard is effective prospectively for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. We are evaluating the effect, if any, adoption of ASU No. 2013-07 will have on our financial statements.

 

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the United States Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

XML 22 R13.htm IDEA: XBRL DOCUMENT v3.3.1.900
Equity Transactions (Tables)
3 Months Ended
Mar. 31, 2013
Equity [Abstract]  
Summary of Outstanding Options

The following is a summary of the outstanding options, as of March 31, 2013:

 

                Weighted Average
    Options     Options     Intrinsic     Exercise     Remaining
    Outstanding     Vested     Value     Price     Term
Options, December 31, 2011     -       -     $ -     $ -      
Granted     -       -                      
Exercised     -       -                      
Forfeited / expired     -       -                      
Options, December 31, 2011     -       -                      
Granted     3,750,000       1,250,000     $ 4.00     $ 0.0001     3.3 years
Exercised     (750,000 )     -                      
Forfeited / expired     -       -                      
Options, December 31, 2012     3,000,000       1,250,000                      
Granted     1,000,000       437,500       4.00       0.0001     4 years
Exercised     (200,000 )                            
Forfeited / expired     -       -                      
Options, March 31, 2013     3,800,000       1,687,500                      

Schedule of Weighted Average Assumptions

Weighted average assumptions in the calculation of option value:

 

Historical Volatility 268.0%
Risk Free Rate 0.83%
Dividend Yield 0.00%
Forfeiture Rate 0.00%

XML 23 R14.htm IDEA: XBRL DOCUMENT v3.3.1.900
Restatement of Previously Issued Unaudited Condensed Financial Statements (Tables)
3 Months Ended
Mar. 31, 2013
Accounting Changes and Error Corrections [Abstract]  
Schedule of Condensed Balance Sheet

ACCELERA INNOVATIONS, INC.

CONDENSED BALANCE SHEET

AS OF MARCH 31, 2013

 

    As Originally     Amount of        
    Presented     Restatement     As Restated  
                   
ASSETS                        
                         
Current Assets:                        
Cash   $ 10     $ -     $ 10  
Due from stockholder     -       194,248       194,248  
Total current assets     10       194,248       194,258  
                         
TOTAL ASSETS   $ 10     $ 194,248     $ 194,258  
                         
LIABILITIES AND STOCKHOLDERS’ DEFICIT                        
                         
Current Liabilities:                        
Accounts payable   $ -     $ -     $ -  
Preferred stock subscription payable     -       194,248       194,248  
Total current liabilities     -       194,248       194,248  
                         
TOTAL LIABILITIES     -       194,248       194,248  
                         
STOCKHOLDERS’ DEFICIT                        
Preferred stock     -       -       -  
Common stock     2,151       -       2,151  
Additional paid-in capital     7,037,614       -       7,037,614  
Accumulated deficit     (7,039,755 )     -       (7,039,755 )
Total stockholders’ deficit     10       -       10  
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT   $ 10     $ 194,248     $ 194,258  

Schedule of Condensed Consolidated Statements of Operations

ACCELERA INNOVATIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

THREE MONTH PERIOD ENDED MARCH 31, 2013

 

    As Originally     Amount of        
    Presented     Restatement     As Restated  
                   
Revenues   $ -     $ -     $ -  
                         
Operating expenses:                        
General and administrative expenses     1,750,090       -       1,750,090  
Total operating expenses     1,750,090       -       1,750,090  
                         
Net loss   $ (1,750,090 )   $ -     $ (1,750,090 )
                         
Basic and diluted loss per share   $ (0.08 )           $ (0.08 )
                         
Weighted average number of shares outstanding     21,505,145               21,505,145  

Schedule of Condensed Consolidated Statement of Cash Flows

ACCELERA INNOVATIONS, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

THREE MONTH PERIOD ENDED MARCH 31, 2013

 

    As Originally     Amount of        
    Presented     Restatement     As Restated  
                   
OPERATING ACTIVITIES:                        
Net loss   $ (1,750,090 )   $ -     $ (1,750,090 )
Adjustments to reconcile net loss to net cash used in operating activities:                        
Stock based compensation     1,750,000       -       1,750,000  
Change in current assets and liabilities:                        
Accounts payable and accrued expenses     -       -       -  
Net cash used in operating activities     (90 )     -       (90 )
                         
FINANCING ACTIVITIES:                        
Shareholder advances     100       -       100  
Net cash provided by financing activities     100       -       100  
                         
NET INCREASE IN CASH     10       -       10  
                         
CASH, BEGINNING OF PERIOD     -       -       0  
                         
CASH, END OF PERIOD   $ 10     $ -     $ 10  
                         
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:                        
Proceeds from issuance of preferred stock deposited into Synergistic Holdings, LLC   $ -     $ 194,248     $ 194,248  
Common shares issued for cashless exercise of stock options   $ 20     $ -     $ 20  
Forgiveness of debt by shareholder   $ 100     $ -     $ 100  

XML 24 R15.htm IDEA: XBRL DOCUMENT v3.3.1.900
Background Information (Details Narrative) - $ / shares
Jun. 13, 2011
Mar. 31, 2013
Dec. 31, 2012
Common stock par value   $ 0.0001 $ 0.0001
Common stock, shares issued   21,511,812 21,311,812
Common stock, shares outstanding   21,511,812 21,311,812
Synergistic Holdings LLC [Member]      
Number of shares agreed to acquire by entity 17,000,000    
Common stock par value $ 0.0001    
Equity ownership percentage 93.15%    
Common stock, shares issued 18,250,000    
Common stock, shares outstanding 18,250,000    
Accelerated Venture Partners, LLC [Member]      
Common stock par value $ 0.0001    
Number of stock shares for tender issuance 3,750,000    
Number of shares agree to issue for cancellation 5,000,000    
Equity ownership percentage 6.85%    
XML 25 R16.htm IDEA: XBRL DOCUMENT v3.3.1.900
Going Concern (Details Narrative) - USD ($)
3 Months Ended 59 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Dec. 31, 2012
Going Concern        
NET LOSS $ (1,750,090) $ (33,391) $ (7,039,755)  
Accumulated deficit $ 7,039,755   $ 7,039,755 $ 5,289,665
XML 26 R17.htm IDEA: XBRL DOCUMENT v3.3.1.900
Significant Accounting Policies (Details Narrative) - USD ($)
3 Months Ended 59 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Apr. 28, 2008
Cash $ 10 $ 160 $ 10 $ 5,874
Cash equivalents 0   0 $ 0    
Proceeds from investors 100 $ 27 $ 36,815      
Investors [Member]            
Proceeds from investors $ 194,248          
Preferred stock subscription payable 48,562          
XML 27 R18.htm IDEA: XBRL DOCUMENT v3.3.1.900
Equity Transactions (Details Narrative) - USD ($)
3 Months Ended 4 Months Ended 12 Months Ended 59 Months Ended
Jan. 03, 2013
Apr. 26, 2012
Mar. 31, 2013
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2011
Dec. 31, 2012
Dec. 31, 2011
Mar. 31, 2013
Jun. 16, 2011
Apr. 28, 2008
Preferred stock shares authorized     10,000,000       10,000,000   10,000,000    
Preferred shares par value     $ 0.0001       $ 0.0001   $ 0.0001    
Common stock number of shares authorized     100,000,000       100,000,000   100,000,000    
Common stock par value     $ 0.0001       $ 0.0001   $ 0.0001    
Common shares issued     21,511,812       21,311,812   21,511,812    
Restricted common stock issued to the incorporator for initial funding                     5,000,000
Restricted common stock par value     $ 2,151       $ 2,131   $ 2,151   $ 4,000
Common shares issued in exchange for licensing and consulting agreement                   17,000,000  
Common shares tendered in exchange for option to purchase shares                   3,750,000  
Number of shares exercised from option                   2,250,000  
Proceeds from investors     100   $ 27       $ 36,815    
Estimated value of the common stock into which the options are exercisable     4                
Valuation of the entire Company     85,000,000                
Fair value of stock granted     6,750,000       6,750,000 $ 6,750,000      
Recognized stock-based compensation expense     1,750,000       $ 5,000,000 $ 0      
Total unrecognized compensation cost related to unvested stock-based compensation awards     $ 13,000,000                
Weighted average remaining vesting period     3 years 6 months                
Total reserved common stock for issuance under award plan     5,327,953                
Remaining shares of common stock that are reserved for issuance under award plan     4,327,953                
Investors [Member]                      
Proceeds from investors     $ 194,248                
Preferred stock subscription payable     48,562                
Chief Executive Officer - Employment Agreement [Member]                      
Stock options to purchase in exchange for service   1,750,000                  
Common stock exercise price   $ 0.0001                  
Vesting period   48 months                  
Percentage of the total number of shares to vest immediatly after the effective date of agreement   20.00%                  
Total number of shares vested immediatly after the effective date of agreement   350,000                  
Remaining number of shares vesting at the end of each month for the next 48 months   29,166                  
Base salary per year (after funding is achieved)   $ 250,000                  
Chief Operating Officer - Employment Agreement [Member]                      
Stock options to purchase in exchange for service   1,000,000                  
Common stock exercise price   $ 0.0001                  
Vesting period   48 months                  
Percentage of the total number of shares to vest immediatly after the effective date of agreement   20.00%                  
Total number of shares vested immediatly after the effective date of agreement   200,000                  
Remaining number of shares vesting at the end of each month for the next 48 months   16,666                  
Base salary per year (after funding is achieved)   $ 175,000                  
Chief Strategic Officer - Employment Agreement                      
Stock options to purchase in exchange for service   1,000,000                  
Common stock exercise price   $ 0.0001                  
Vesting period   48 months                  
Percentage of the total number of shares to vest immediatly after the effective date of agreement   20.00%                  
Total number of shares vested immediatly after the effective date of agreement   200,000                  
Remaining number of shares vesting at the end of each month for the next 48 months   16,666                  
Base salary per year (after funding is achieved)   $ 150,000                  
Chief Acquisitions Officer - Employment Agreement                      
Stock options to purchase in exchange for service 1,000,000                    
Common stock exercise price $ 0.0001                    
Vesting period 48 months                    
Percentage of the total number of shares to vest immediatly after the effective date of agreement 20.00%                    
Total number of shares vested immediatly after the effective date of agreement 200,000                    
Remaining number of shares vesting at the end of each month for the next 48 months 16,666                    
Base salary per year (after funding is achieved) $ 150,000                    
Shares Issued for Cash [Member]                      
Number of shares Issued for cash       $ 15,000 $ 6,912 $ 39,975          
Per share value       $ 4.00 $ 4.00 $ 4.00          
Cash Value       $ 60,000 $ 27,650 $ 159,900          
XML 28 R19.htm IDEA: XBRL DOCUMENT v3.3.1.900
Equity Transactions - Summary of Outstanding Options (Details) - $ / shares
3 Months Ended 12 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]      
Options Outstanding, Beginning balance 3,000,000
Options Outstanding, Granted 1,000,000 3,750,000
Options Outstanding, Exercised (200,000) (750,000)
Options Outstanding, Forfeited / Expired
Options Outstanding, Ending balance 3,800,000 3,000,000
Options Vested, Beginning balance 1,250,000
Options Vested, Granted 437,500 1,250,000
Options Vested, Ending balance 1,687,500 1,250,000
Weighted Average Intrinsic Value, Beginning balance
Weighted Average Intrinsic Value, Granted $ 4.00 $ 4.00
Weighted Average Intrinsic Value, Ending balance
Weighted Average Exercise Price, Options Outstanding, Beginning balance
Weighted Average Exercise Price, Granted $ 0.0001 $ 0.0001
Weighted Average Exercise Price, Options Outstanding Ending balance
Weighted Average Remaining Contractual Life Granted 4 years 3 years 3 months 18 days 0 years
XML 29 R20.htm IDEA: XBRL DOCUMENT v3.3.1.900
Equity Transactions - Schedule of Weighted Average Assumptions (Details)
3 Months Ended
Mar. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Historical Volatility 268.00%
Risk Free Rate 0.83%
Dividend Yield 0.00%
Forfeiture Rate 0.00%
XML 30 R21.htm IDEA: XBRL DOCUMENT v3.3.1.900
Income Taxes (Details Narrative)
3 Months Ended
Mar. 31, 2013
USD ($)
Income Tax Disclosure [Abstract]  
Deferred tax assets $ 269,590
Statutory tax rate expiration year 2032
XML 31 R22.htm IDEA: XBRL DOCUMENT v3.3.1.900
Restatement of Previously Issued Unaudited Condensed Financial Statements (Details Narrative) - USD ($)
3 Months Ended 59 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Proceeds from investors $ 100 $ 27 $ 36,815
Investors [Member]      
Proceeds from investors $ 194,248    
Preferred stock subscription payable 48,562    
XML 32 R23.htm IDEA: XBRL DOCUMENT v3.3.1.900
Restatement of Previously Issued Unaudited Condensed Financial Statements - Schedule of Condensed Balance Sheet (Details) - USD ($)
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2012
Dec. 31, 2011
Apr. 28, 2008
Cash $ 10 $ 160 $ 5,874
Due from stockholder 194,248      
Total current assets 194,258      
TOTAL ASSETS $ 194,258 $ 0      
Accounts payable      
Preferred stock subscription payable $ 194,248        
Total current liabilities 194,248      
TOTAL LIABILITIES $ 194,248      
Preferred stock      
Common stock $ 2,151 $ 2,131     $ 4,000
Additional paid-in capital 7,037,614 5,287,534      
Accumulated deficit (7,039,755) $ (5,289,665)      
Total stockholders' deficit 10      
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT 194,258 $ 0      
Scenario, Previously Reported [Member]          
Cash $ 10      
Due from stockholder        
Total current assets $ 10        
TOTAL ASSETS $ 10        
Accounts payable        
Preferred stock subscription payable        
Total current liabilities        
TOTAL LIABILITIES        
Preferred stock        
Common stock $ 2,151        
Additional paid-in capital 7,037,614        
Accumulated deficit (7,039,755)        
Total stockholders' deficit 10        
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 10        
Restatement Adjustment [Member]          
Cash      
Due from stockholder $ 194,248        
Total current assets 194,248        
TOTAL ASSETS $ 194,248        
Accounts payable        
Preferred stock subscription payable $ 194,248        
Total current liabilities 194,248        
TOTAL LIABILITIES $ 194,248        
Preferred stock        
Common stock        
Additional paid-in capital        
Accumulated deficit        
Total stockholders' deficit        
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 194,248        
XML 33 R24.htm IDEA: XBRL DOCUMENT v3.3.1.900
Schedule of Condensed Consolidated Statements of Operations (Details) - USD ($)
3 Months Ended 59 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Revenues
General and administrative expenses $ 1,750,090 $ 33,391 $ 7,039,755
Total operating expenses 1,750,090 33,391 7,039,755
Net loss $ (1,750,090) $ (33,391) $ (7,039,755)
Basic and diluted loss per share $ (0.08) $ (0.00)  
Weighted average number of shares outstanding 21,505,145 20,567,625  
Scenario, Previously Reported [Member]      
Revenues    
General and administrative expenses $ 1,750,090    
Total operating expenses 1,750,090    
Net loss $ (1,750,090)    
Basic and diluted loss per share $ (0.08)    
Weighted average number of shares outstanding 21,505,145    
Restatement Adjustment [Member]      
Revenues    
General and administrative expenses    
Total operating expenses    
Net loss    
Basic and diluted loss per share    
Weighted average number of shares outstanding    
XML 34 R25.htm IDEA: XBRL DOCUMENT v3.3.1.900
Schedule of Condensed Consolidated Statement of Cash Flows (Details) - USD ($)
3 Months Ended 59 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Net loss $ (1,750,090) $ (33,391) $ (7,039,755)
Stock based compensation $ 1,750,000 $ 6,750,000
Accounts payable and accrued expenses
Net cash used in operating activities $ (90) $ (33,391) $ (289,755)
Shareholder advances 100 27 36,815
Net cash provided by financing activities 100 27,677 289,765
NET INCREASE IN CASH $ 10 (5,714) $ 10
Cash, beginning of period 5,874
Cash, end of period $ 10 $ 160 $ 10
Proceeds from issuance of preferred stock deposited into Synergistic Holdings, LLC 194,248 194,248
Common shares issued for cashless exercise of stock options 20 95
Forgiveness of debt by shareholder 100 $ 27 20,460
Scenario, Previously Reported [Member]      
Net loss (1,750,090)    
Stock based compensation $ 1,750,000    
Accounts payable and accrued expenses    
Net cash used in operating activities $ (90)    
Shareholder advances 100    
Net cash provided by financing activities 100    
NET INCREASE IN CASH $ 10    
Cash, beginning of period    
Cash, end of period $ 10   $ 10
Proceeds from issuance of preferred stock deposited into Synergistic Holdings, LLC    
Common shares issued for cashless exercise of stock options $ 20    
Forgiveness of debt by shareholder $ 100    
Restatement Adjustment [Member]      
Net loss    
Stock based compensation    
Accounts payable and accrued expenses    
Net cash used in operating activities    
Shareholder advances    
Net cash provided by financing activities    
NET INCREASE IN CASH    
Cash, beginning of period    
Cash, end of period  
Proceeds from issuance of preferred stock deposited into Synergistic Holdings, LLC $ 194,248    
Common shares issued for cashless exercise of stock options    
Forgiveness of debt by shareholder    
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