10-Q

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2016

☐   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _________

Commission File No. 000-55114

CANFIELD MEDICAL SUPPLY, INC.

(Name of registrant in its charter)

Colorado	34-1720075
(State or other jurisdiction of incorporation or formation)	(I.R.S. employer identification number)

4120 Boardman-Canfield Road, Canfield, Ohio 44406

(Address of principal executive offices)

(330) 533-1914

(Registrant's telephone number, including area code) 

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 past 90 days.

☐  Yes   ☒  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   ☒  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.

Large accelerated filer  ☐	Accelerated filer  ☐
Non-accelerated filer    ☐ (Do not check if a smaller reporting company)	Smaller reporting company  ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐  Yes   ☒  No

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.  As of November 15, 2016, there were 10,527,200 shares of Common Stock issued and outstanding.

CANFIELD MEDICAL SUPPLY, INC.

FORM 10-Q

TABLE OF CONTENTS

PART I.  FINANCIAL INFORMATION		Page
Item 1.	Financial Statements	3
	Condensed Balance Sheets (Unaudited)	3
	Condensed Statements of Operations (Unaudited)	4
	Condensed Statements of Cash Flows (Unaudited)	5
	Notes to Condensed Financial Statements (Unaudited)	6-11
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	14
Item 4.	Controls and Procedures	14
PART II.  OTHER INFORMATION		15
Item 1.	Legal Proceedings	15
Item 1A.	Risk Factors	15
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	15
Item 3.	Defaults Upon Senior Securities	15
Item 4.	Mine Safety Disclosures	15
Item 5.	Other Information	15
Item 6.	Exhibits	15
	Signatures	16

2

PART I—FINANCIAL INFORMATION

Item 1.  Financial Statements.

CANFIELD MEDICAL SUPPLY, INC.

CONDENSED BALANCE SHEETS

(Unaudited)

	June 30,			December 31,
ASSETS	2016			2015
Current Assets
Cash	$	37,177		$	7,343
Accounts receivable		142,624			167,063
Inventory		26,918			21,589
Total Current Assets		206,719			195,995
Equipment, net of accumulated depreciation of $56,128 and$40,771		47,446			43,753
Total Assets	$	254,165		$	239,748
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts payable and accrued liabilities	$	127,817		$	135,211
Line of credit		74,000			77,250
Current portion of long-term debt		7,726			7,603
Total Current Liabilities		209,543			220,064
Long-term debt		17,276			21,169
Total Liabilities		226,819			241,233
Stockholders' Equity (Deficit)
Preferred stock, no par value; 5,000,000 shares		-			-
authorized; no shares issued and outstanding
Common stock, no par value; 100,000,000 shares
authorized;  10,527,200 (Jun. 30, 2016) and 10,027,200
(Dec. 31, 2015) shares issued and outstanding		168,515			118,515
Accumulated deficit		(141,169	)		(120,000	)
Total Stockholders' Equity (Deficit)		27,346			(1,485	)
Total Liabilities and Stockholders' Equity (Deficit)	$	254,165		$	239,748

The accompanying footnotes are an integral part of these financial statements.

3

CANFIELD MEDICAL SUPPLY, INC.

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

	Three months			Three months			Six months			Six months
	ended			ended			ended			ended
	June 30, 2016			June 30,2015			June 30, 2016			June 30, 2015
Sales (net of returns)	$	199,985		$	189,076		$	459,638		$	400,955
Cost of goods sold		108,804			103,014			235,114			194,979
Gross profit		91,181			86,062			224,524			205,976
Operating expenses:
Salaries and wages		70,144			59,157			139,138			123,924
Professional fees		10,759			6,660			19,459			16,445
Depreciation		12,783			7,004			23,156			14,300
Other selling, general and administrative		30,986			29,165			64,469			66,977
Total operating expenses		124,672			101,986			246,222			221,646
Income (loss) from operations		(33,491	)		(15,924	)		(21,698	)		(15,670	)
Other income (expense):
Interest expense		(863	)		(1,307	)		(1,898	)		(2,997	)
Gain on disposal of fixed assets		1,106			1,682			2,427			2,235
Total other income (expense)		243			375			529			(762	)
Income (loss) before provision for income taxes		(33,248	)		(15,549	)		(21,169	)		(16,432	)
Provision for income tax		-			-			-			-
Net income (loss)	$	(33,248	)	$	(15,549	)	$	(21,169	)	$	(16,432	)
Net income (loss) per share (basic and fully diluted)	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Weighted average number of common shares outstanding		10,527,200			10,027,200			10,312,914			10,027,200

The accompanying footnotes are an integral part of these financial statements.

4

CANFIELD MEDICAL SUPPLY, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six months ended			Six months ended
	June 30,			June 30,
	2016			2015
Cash Flows From Operating Activities:
Net loss	$	(21,169	)	$	(16,432	)
Adjustments to reconcile net loss to net cash provided by (used for) operating activities:
Gain on disposal of fixed assets		(2,427	)		(2,235	)
Depreciation		23,156			14,300
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable		24,439			(40,540	)
(Increase) decrease in inventory		(5,329	)		1,586
Increase (decrease) in accounts payable		(7,394	)		37,198
Net cash provided by (used for) operating activities		11,276			(6,123	)
Cash Flows From Investing Activities:
Purchases of fixed assets		(27,468	)		(5,275	)
Proceeds from disposal of fixed assets		3,046			-
Net cash used for investing activities		(24,422	)		(5,275	)
Cash Flows From Financing Activities:
Net payments on line of credit		(3,250	)		(1,252	)
Payments on long-term debt		(3,770	)		(3,344	)
Proceeds from sales of common stock		50,000			-
Net cash provided by (used for) financing activities		42,980			(4,596	)
Net Increase (Decrease) in Cash		29,834			(15,994	)
Cash At The Beginning Of The Period		7,343			24,908
Cash At The End Of The Period	$	37,177		$	8,914
Schedule Of Non-Cash Investing And Financing Activities	$	-		$	-
Supplemental Disclosure
Cash paid for interest	$	1,898		$	2,997
Cash paid for income taxes	$	-		$	-

The accompanying footnotes are an integral part of these financial statements.

5

CANFIELD MEDICAL SUPPLY, INC.

NOTES TO FINANCIAL STATEMENTS

For the Six Months Ended June 30, 2016 and 2015 (Unaudited)

NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Canfield Medical Supply, Inc. (the "Company"), was incorporated in the State of Ohio on September 3, 1992, and changed domicile to Colorado on April 18, 2012. The Company is in the business of home health services, primarily the selling of durable medical equipment and medical supplies to the public, nursing homes, hospitals, and other end users.

The accompanying financial statements have been prepared by the Company without audit.  In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the three and six months ended June 30, 2016 and 2015 have been made.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2015 audited financial statements.  The results of operations for the periods ended June 30, 2016 and 2015 are not necessarily indicative of the operating results for the full year.

Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 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

The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents.

Accounts receivable

The majority of the Company's revenues are received from Medicare, Medicaid, and private insurance companies.  As such, the Company records revenues at allowable amounts, net of estimated allowances and discounts based on contracted prices and historical collection rates.  The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary. At June 30, 2016 and December 31, 2015, the Company has determined that no allowance for doubtful accounts is necessary.

Property and equipment

Property and equipment are recorded at cost and depreciated under straight line methods over each item's estimated useful life.

Inventory

The Company carries inventory of durable medical equipment and medical supplies for resale.  Inventory is accounted for on a first–in first-out basis.

6

CANFIELD MEDICAL SUPPLY, INC.

NOTES TO FINANCIAL STATEMENTS

For the Six Months Ended June 30, 2016 and 2015 (Unaudited)

NOTE 1.  ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued):

Revenue recognition

The Company's primary source of revenue is reimbursement from Medicare, Medicaid and private insurance companies for the sale of medical equipment and supplies to patients. Revenue from product sales is recognized subsequent to a patient (customer) ordering a product at an agreed-upon price, and when delivery has occurred and collectability is reasonably assured. A purchase arrangement is evidenced by a written order, with delivery considered as made after physical customer acceptance. Although rare, defective products may be returned, with other return issues considered on a case-by-case basis. Services, such as periodic scheduled deliveries, are contracted in writing, and generally billed monthly. Any service revenue earned by the Company for services, such as safety and set-up consulting or claims processing, is recorded after the service is performed. Rental of durable home medical equipment is evidenced by written contract, with revenue recognized when rent is earned.

Advertising costs

Advertising costs are expensed as incurred. The Company had advertising costs during the six months ended June 30, 2016 and 2015 of $2,520 and $1,781, respectively.

Income tax

The Company accounts for income taxes pursuant to ASC 740. Under ASC 740, deferred taxes are provided for using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

7

CANFIELD MEDICAL SUPPLY, INC.

NOTES TO FINANCIAL STATEMENTS

For the Six Months Ended June 30, 2016 and 2015 (Unaudited)

NOTE 1.  ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued):

Net income (loss) per share

The net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share.

There were no potentially dilutive debt or equity instruments issued or outstanding during the six months ended June 30, 2016 or 2015.

Financial instruments

The carrying value of the Company's financial instruments, as reported in the accompanying balance sheets, approximates fair value.

Concentrations

Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents.  The Company places its cash and cash equivalents at well-known financial institutions, where at times, such balances may exceed FDIC insurance limits.

The Company receives a significant amount of its revenues in reimbursements from Medicare and Medicaid through competitive bidding processes.  There is no guarantee that the Company will continue to be selected as a winning contract supplier under future bidding rounds.

8

CANFIELD MEDICAL SUPPLY, INC.

NOTES TO FINANCIAL STATEMENTS

For the Six Months Ended June 30, 2016 and 2015 (Unaudited)

NOTE 1.  ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued):

Long-lived assets

In accordance with ASC 350, the Company regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both internally and externally, that suggest impairment. If impairment testing indicates a lack of recoverability, an impairment loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value.

Products and services, geographic areas and major customers

The Company's business of medical supply sales constitutes one operating segment. All revenues each year were domestic and to external customers.

NOTE 2.  EQUIPMENT

Fixed assets are comprised of office equipment, vehicles, and the wheelchair rental pool, which consists of wheelchairs rented to customers over the shorter of the 13-month rental period mandated by Medicaid and Medicare, or the period over which the customer requires use of the wheelchair.  At the end of the use period, the wheelchair is either returned to the pool to be rented to another customer, or title of the chair is transferred to the customer.  Depreciation is computed over the estimated useful life of the assets, ranging from 13 months to 7 years, on the straight-line basis.  Depreciation expense for the six months ended June 30, 2016 and 2015 was $23,156 and $14,300, respectively.  Accumulated depreciation totaled $56,128 and $40,771 at June 30, 2016 and December 31, 2015, respectively.

NOTE 3.  LINE OF CREDIT

At June 30, 2016 and December 31, 2015, the Company owed a bank $74,000 and $77,250, respectively, under a revolving line of credit. The line of credit is capped at $100,000, is secured by all Company assets, is due on demand, and bears interest at variable rates approximating 4% on average. Interest expense under the note approximated $1,500 during each of the six months ended June 30, 2016 and 2015.  During the six months ended June 30, 2016 and 2015, the Company made net principal payments of $3,250 and $1,252, respectively.

9

CANFIELD MEDICAL SUPPLY, INC.

NOTES TO FINANCIAL STATEMENTS

For the Six Months Ended June 30, 2016 and 2015 (Unaudited)

NOTE 4.  LONG-TERM DEBT

Long-term debt consists of the following:

	June 30, 2016			December 31, 2015
3.53% installment note payable $352 monthly, including  interest, through July 2019, collateralized by vehicle with carrying value of $9,776	$	12,336		$	14,214
2.99% installment note payable $350 monthly, including    interest, through August 2019, collateralized by vehicle with carrying value of $11,668		12,666			14,558
		25,002			28,772
Less principal due within one year		(7,726	)		(7,603	)
TOTAL LONG-TERM DEBT	$	17,276		$	21,169

10

CANFIELD MEDICAL SUPPLY, INC.

NOTES TO FINANCIAL STATEMENTS

For the Six Months Ended June 30, 2016 and 2015 (Unaudited)

NOTE 5.  COMMON STOCK

During the period of January through March 2016, the Company underwent a stock offering of 500,000 shares at $.10 per share for total proceeds of $50,000 to primarily unaffiliated individuals and entities.

NOTE 6.  LEASE COMMITMENTS

The Company rents office space under a non-cancellable lease through May 2017 with monthly payments of approximately $2,700 plus costs.

Lease expense incurred for each of the six months ended June 30, 2016 and 2015 was approximately $16,200. Subsequent to June 30, 2016, future minimum payments under the leases total approximately $30,300 including:  2016 (balance) $16,800, and 2017 - $13,500

NOTE 7.  GOING CONCERN

The Company has suffered losses from operations and has working capital and stockholders' equity deficits. In all likelihood, the Company will be required to make significant future expenditures in connection with marketing efforts along with general administrative expenses. These conditions raise substantial doubt about the Company's ability to continue as a going concern.

The Company may raise additional capital through the sale of its equity securities, through an offering of debt securities, or through borrowings from financial institutions or related parties. By doing so, the Company hopes to generate sufficient capital to execute its business plan of selling medical supplies on an ongoing basis. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern.

NOTE 8.  SUBSEQUENT EVENTS

On July 11, 2016, the Company purchased a delivery vehicle for $17,913 pursuant to a 3.79% simple finance charge agreement.  The loan term is five years with a monthly payment of $299.

The Company has evaluated subsequent events through the date these financial statements were available to be issued and determined that there are no other reportable subsequent events.

11

Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis should be read in conjunction with the Financial Statements (unaudited) and Notes to Financial Statements (unaudited) filed herein.

BUSINESS OVERVIEW

We primarily provide services to the rehabilitation market, which consists primarily of home medical equipment and supplies.  More than 50% of our revenues are derived from the sale and rental of durable home medical equipment including such items as wheeled walkers, manual and power wheelchairs, hospital beds, ramps, bedside commodes, and miscellaneous bathroom equipment.  The balance of our revenue is from the sale of various home medical supplies including diabetic testing, incontinence, ostomy, wound care, and catheter care.  Our emphasis is on helping patients with mobility related limitations, but our overall business is aimed at helping patients remain in their homes instead of having to go to hospitals, rehab centers and other similar facilities.  Most of the equipment and supplies that we sell are prescribed by a physician as part of an overall care plan.

RESULTS OF OPERATION FOR THE THREE MONTHS ENDED JUNE 30, 2016 AS COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2015.

Revenues for the three months ended June 30, 2016 were $199,985 as compared to the revenues of $189,076 for the three months ended June 30, 2015.  The 6% increase in sales is primarily due to winning the Medicare competitive bidding for wheel chairs and a few other items in our local market as well as a shift in customer focus away from Medicare and Medicaid towards private pay/private insurance customers due to continually decreasing Medicare and Medicaid reimbursement rates.

Cost of goods sold for the three months ended June 30, 2016 were $108,804 as compared to cost of goods sold for the three months ended June 30, 2015 of $103,014.  The 6% increase in the latest three month period was due to the 6% increase in the sales volume.

Operating expenses for the three months ended June 30, 2016 were $124,672 as compared to $101,986 for the three months ended June 30, 2015.  The 22% increase in the latest three month period was primarily due to a $10,987 increase in salaries and a $5,779 increase in depreciation.

The net loss for the three months ended June 30, 2016 was $33,248 as compared to a net loss of $15,549 for the three months ended June 30, 2015.  The primary reason for the approximately $18,000 increase in the net loss was the approximately $23,000 increase in operating expenses.

12

RESULTS OF OPERATION FOR THE SIX MONTHS ENDED JUNE 30, 2016 AS COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2015.

Revenues for the six months ended June 30, 2016 were $459,638 as compared to the revenues of $400,955 for the six months ended June 30, 2015.  The 15% increase in sales is primarily due to winning the Medicare competitive bidding for wheel chairs and a few other items in our local market as well as a shift in customer focus away from Medicare and Medicaid towards private pay/private insurance customers due to continually decreasing Medicare and Medicaid reimbursement rates.

Cost of goods sold for the six months ended June 30, 2016 were $235,114 as compared to cost of goods sold for the six months ended June 30, 2015 of $194,979.  The 21% increase in the latest six month period was due to the increase in the sales volume, combined with the fact that Medicare has reduced the amount it is paying the Company for its products.  The Company has also recently been forced to carry more inventory of certain products in order to accommodate the patient demand.

Operating expenses for the six months ended June 30, 2016 were $246,222 as compared to $221,646 for the six months ended June 30, 2015.  The 11% increase in the latest six month period was primarily due to a $15,214 increase in salaries and wages and an $8,856 increase in depreciation.

The net loss for the six months ended June 30, 2016 was $21,169 as compared to a net loss of $16,432 for the six months ended June 30, 2015.  The primary reason for the $4,737 increase in the net loss was the $24,576 increase in operating expenses which was offset in large part by the $18,548 increase in gross profit.

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2016, we had negative working capital of ($2,824) compared to negative working capital of ($24,069) as of December 31, 2015.

Net cash provided by (used for) operating activities during the six months ended June 30, 2016 was $11,276 as compared to net cash used for operating activities in the six months ended June 30, 2015 of ($6,123). The primary reasons for the improvement were the $24,439 decrease in accounts receivable, which was offset somewhat by the $7,394 decrease in accounts payable during the six months ended June 30, 2016.

Net cash used for investing activities during the six months ended June 30, 2016 was $24,422 which represented $27,468 used for the purchase of equipment which was offset by $3,046 received from the sale of equipment as compared to $5,275 used for the purchase of equipment during the six months ended June 30, 2015.

Net cash provided by financing activities during the six months ended June 30, 2016 was $42,980 as compared to $4,596 used for financing activities in the six months ended June 30, 2015.  The Company sold shares of its common stock during the six months ended June 30, 2016 to raise $50,000 to help pay for the costs associated with being a public company.

CONTRACTUAL OBLIGATIONS

None.

OFF-BALANCE SHEET ARRANGEMENTS

We do not have any off-balance sheet arrangements (as that term is defined in Item 303 of Regulation S-K) that are reasonably likely to have a current or future material effect on our financial condition, revenue or expenses, results of operations, liquidity, capital expenditures or capital resources.

13

Item 3.  Quantitative and Qualitative Disclosures About Market Risk. 

Not applicable.

Item 4.  Controls and Procedures.

(a)  Evaluation of Disclosure Controls and Procedures.

Our Chief Executive Officer and Principal Financial Officer have evaluated the effectiveness of the design and operations of our disclosure controls and procedures as of the end of the period covered by this quarterly report, and have concluded that our disclosure controls and procedures are adequate.

(b)  Changes in Internal Control over Financial Reporting.

No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

14

PART II – OTHER INFORMATION

Item 1.    Legal Proceedings.

None.

Item 1A.  Risk Factors.

Not applicable.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3.    Defaults Upon Senior Securities.

None.

Item 4.    Mine Safety Disclosures.

Not applicable.

Item 5.    Other Information.

None.

Item 6.    Exhibits.

(a)  Exhibits required by Item 601 of Regulation S-K.

Exhibits Description

31.1 Certification of CEO and Principal Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) - Filed herewith electronically

31.2 Certification of CFO and Principal Financial and Accounting Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) - Filed herewith electronically

32.1 Certification of CEO and Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Filed herewith electronically

32.2 Certification of CFO and Principal Financial and Accounting Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Filed herewith electronically

101 XBRL Exhibits

15

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.

		CANFIELD MEDICAL SUPPLY, INC.
Date:  November 15, 2016	By:	/s/ Michael J. West
		Michael J. West, President and CEO (Principal Executive Officer)
Date:  November 15, 2016	By:	/s/ Stephen H. West
		Stephen H. West, CFO (Principal Financial Officer and Principal Accounting Officer)

16

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael J. West, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Canfield Medical Supply, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer 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 the 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 is made known to us by others within the registrant, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer 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:  November 15, 2016

/s/ Michael J. West

Michael J. West

Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Stephen H. West, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Canfield Medical Supply, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer 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 the 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 is made known to us by others within the registrant, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer 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:  November 15, 2016

/s/ Stephen H. West

Stephen H. West

Chief Financial Officer

(Principal Financial Officer and

Principal Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

 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 Form 10-Q of Canfield Medical Supply, Inc., a company duly formed under the laws of Colorado (the "Company"), for the quarter ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Michael J. West, President (Chief Executive Officer) of the Company, hereby certifies, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  November 15, 2016	/s/ Michael J. Wes
	Michael J. West Chief Executive Officer (Principal Executive Officer)

This certification accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to Canfield Medical Supply, Inc. and will be retained by Canfield Medical Supply, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

 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 Form 10-Q of Canfield Medical Supply, Inc., a company duly formed under the laws of Colorado (the "Company"), for the quarter ended June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Stephen H. West, Chief Financial Officer of the Company, hereby certifies, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  November 15, 2016	/s/ Stephen H. West
	Stephen H. West Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) (Principal Executive Officer)

This certification accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to Canfield Medical Supply, Inc. and will be retained by Canfield Medical Supply, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - USD ($)	6 Months Ended
	Jun. 30, 2016	Nov. 15, 2016
Document And Entity Information
Entity Registrant Name	CANFIELD MEDICAL SUPPLY, INC.
Entity Central Index Key	0001553788
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float		$ 0
Entity Common Stock, Shares Outstanding		10,527,200
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2016

XML

CONDENSED BALANCE SHEETS (Unaudited) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current Assets
Cash	$ 37,177	$ 7,343
Accounts receivable	142,624	167,063
Inventory	26,918	21,589
Total Current Assets	206,719	195,995
Equipment, net of accumulated depreciation of $47,234 and $40,771	47,446	43,753
Total Assets	254,165	239,748
Current Liabilities
Accounts payable	127,817	135,211
Line of credit	74,000	77,250
Current portion of long-term debt	7,726	7,603
Total Current Liabilities	209,543	220,064
Long-term debt	17,276	21,169
Total Liabilities	226,819	241,233
Stockholders' Deficit
Preferred stock, no par value; 5,000,000 shares authorized; no shares issued and outstanding
Common stock, no par value; 100,000,000 shares authorized; 10,527,200 (Jun. 30, 2016) and 10,027,200 (Dec. 31, 2015) shares issued and outstanding	168,515	118,515
Accumulated deficit	(141,169)	(120,000)
Total Stockholders' Deficit	27,346	(1,485)
Total Liabilities and Stockholders' Deficit	$ 254,165	$ 239,748

XML

CONDENSED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0	$ 0
Preferred stock, authorized shares	5,000,000	5,000,000
Preferred stock, issued shares
Preferred stock, outstanding shares
Common stock, par value	$ 0	$ 0
Common stock, authorized shares	100,000,000	100,000,000
Common stock, issued shares	10,527,200	10,027,200
Common stock, outstanding shares	10,527,200	10,027,200
Net of depreciation on equipment	$ 56,128	$ 40,771

XML

CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Sales (net of returns)	$ 199,985	$ 189,076	$ 459,638	$ 400,955
Cost of goods sold	108,804	103,014	235,114	194,979
Gross profit	91,181	86,062	224,524	205,976
Operating expenses:
Salaries and wages	70,144	59,157	139,138	123,924
Professional fees	10,759	6,660	19,459	16,445
Depreciation	12,783	7,004	23,156	14,300
Other selling, general and administrative	30,986	29,165	64,469	66,977
Total operating expenses	124,672	101,986	246,222	221,646
Income (loss) from operations	(33,491)	(15,924)	(21,698)	(15,670)
Other income (expense):
Interest expense	(863)	(1,307)	(1,898)	(2,997)
Gain on disposal of fixed assets	1,106	1,682	2,427	2,235
Total other income (expense)	243	375	529	(762)
Income (loss) before provision for income taxes	(33,248)	(15,549)	(21,169)	(16,432)
Provision for income tax
Net income (loss)	$ (33,248)	$ (15,549)	$ (21,169)	$ (16,432)
Net income (loss) per share (basic and fully diluted)	$ (0.00)	$ (0.00)	$ (0.00)	$ (0.00)
Weighted average number of common shares outstanding	10,527,200	10,027,200	10,312,914	10,027,200

XML

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash Flows From Operating Activities:
Net income (loss)	$ (21,169)	$ (16,432)
Adjustments to reconcile net loss to net cash provided by (used for) operating activities:
Gain on disposal of fixed assets	(2,427)	(2,235)
Depreciation	23,156	14,300
Changes in current assets and liabilities:
(Increase) decrease in accounts receivable	24,439	(40,540)
(Increase) decrease in inventory	(5,329)	1,586
Increase (decrease) in accounts payable	(7,394)	37,198
Net cash used for operating activities	11,276	(6,123)
Cash Flows From Investing Activities:
Proceeds from sale of property and equipment	(27,468)	(5,275)
Purchase of property and equipment	3,046
Net cash used for investing activities	(24,422)	(5,275)
Cash Flows From Financing Activities:
Payments on line of credit	(3,250)	(1,252)
Payments on long-term debt	(3,770)	(3,344)
Proceeds from sales of common stock, net	50,000
Net cash provided by (used for) financing activities	42,980	(4,596)
Net Increase (Decrease) in Cash	29,834	(15,994)
Cash At The Beginning Of The Period	7,343	24,908
Cash At The End Of The Period	37,177	8,914
Supplemental Disclosure
Cash paid for interest	1,898	2,997
Cash paid for income taxes

XML

ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Canfield Medical Supply, Inc. (the "Company"), was incorporated in the State of Ohio on September 3, 1992, and changed domicile to Colorado on April 18, 2012. The Company is in the business of home health services, primarily the selling of durable medical equipment and medical supplies to the public, nursing homes, hospitals, and other end users.

The accompanying financial statements have been prepared by the Company without audit.  In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the three and six months ended June 30, 2016 and 2015 have been made.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2015 audited financial statements.  The results of operations for the periods ended June 30, 2016 and 2015 are not necessarily indicative of the operating results for the full year. 

Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 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

The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents.

Accounts receivable

The majority of the Company's revenues are received from Medicare, Medicaid, and private insurance companies.  As such, the Company records revenues at allowable amounts, net of estimated allowances and discounts based on contracted prices and historical collection rates.  The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary. At June 30, 2016 and December 31, 2015, the Company has determined that no allowance for doubtful accounts is necessary.

Property and equipment

Property and equipment are recorded at cost and depreciated under straight line methods over each item's estimated useful life.

Inventory

The Company carries inventory of durable medical equipment and medical supplies for resale.  Inventory is accounted for on a first–in first-out basis.

Revenue recognition

The Company's primary source of revenue is reimbursement from Medicare, Medicaid and private insurance companies for the sale of medical equipment and supplies to patients. Revenue from product sales is recognized subsequent to a patient (customer) ordering a product at an agreed-upon price, and when delivery has occurred and collectability is reasonably assured. A purchase arrangement is evidenced by a written order, with delivery considered as made after physical customer acceptance. Although rare, defective products may be returned, with other return issues considered on a case-by-case basis. Services, such as periodic scheduled deliveries, are contracted in writing, and generally billed monthly. Any service revenue earned by the Company for services, such as safety and set-up consulting or claims processing, is recorded after the service is performed. Rental of durable home medical equipment is evidenced by written contract, with revenue recognized when rent is earned. 

Advertising costs

Advertising costs are expensed as incurred. The Company had advertising costs during the six months ended June 30, 2016 and 2015 of $2,520 and $1,781, respectively. 

Income tax

The Company accounts for income taxes pursuant to ASC 740. Under ASC 740, deferred taxes are provided for using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Net income (loss) per share

The net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share.

There were no potentially dilutive debt or equity instruments issued or outstanding during the six months ended June 30, 2016 or 2015. 

Financial instruments

The carrying value of the Company's financial instruments, as reported in the accompanying balance sheets, approximates fair value. 

Concentrations

Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents.  The Company places its cash and cash equivalents at well-known financial institutions, where at times, such balances may exceed FDIC insurance limits.

The Company receives a significant amount of its revenues in reimbursements from Medicare and Medicaid through competitive bidding processes.  There is no guarantee that the Company will continue to be selected as a winning contract supplier under future bidding rounds.

Long-lived assets

In accordance with ASC 350, the Company regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both internally and externally, that suggest impairment. If impairment testing indicates a lack of recoverability, an impairment loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value.

Products and services, geographic areas and major customers 

The Company's business of medical supply sales constitutes one operating segment. All revenues each year were domestic and to external customers.

XML

EQUIPMENT

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

EQUIPMENT

NOTE 2.  EQUIPMENT 

Fixed assets are comprised of office equipment, vehicles, and the wheelchair rental pool, which consists of wheelchairs rented to customers over the shorter of the 13-month rental period mandated by Medicaid and Medicare, or the period over which the customer requires use of the wheelchair.  At the end of the use period, the wheelchair is either returned to the pool to be rented to another customer, or title of the chair is transferred to the customer.  Depreciation is computed over the estimated useful life of the assets, ranging from 13 months to 7 years, on the straight-line basis.  Depreciation expense for the six months ended June 30, 2016 and 2015 was $23,156 and $14,300, respectively.  Accumulated depreciation totaled $56,128 and $40,771 at June 30, 2016 and December 31, 2015, respectively.

XML

LINE OF CREDIT

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

LINE OF CREDIT

NOTE 3.  LINE OF CREDIT

At June 30, 2016 and December 31, 2015, the Company owed a bank $74,000 and $77,250, respectively, under a revolving line of credit. The line of credit is capped at $100,000, is secured by all Company assets, is due on demand, and bears interest at variable rates approximating 4% on average. Interest expense under the note approximated $1,500 during each of the six months ended June 30, 2016 and 2015.  During the six months ended June 30, 2016 and 2015, the Company made net principal payments of $3,250 and $1,252, respectively.

XML

LONG-TERM DEBT

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

LONG-TERM DEBT

NOTE 4.  LONG-TERM DEBT

Long-term debt consists of the following:

	June 30, 2016			December 31, 2015
3.53% installment note payable $352 monthly, including  interest, through July 2019, collateralized by vehicle with carrying value of $9,776	$	12,336		$	14,214
2.99% installment note payable $350 monthly, including    interest, through August 2019, collateralized by vehicle with carrying value of $11,668		12,666			14,558
		25,002			28,772
Less principal due within one year		(7,726	)		(7,603	)
TOTAL LONG-TERM DEBT	$	17,276		$	21,169

XML

COMMON STOCK

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

COMMON STOCK

NOTE 5.  COMMON STOCK

During the period of January through March 2016, the Company underwent a stock offering of 500,000 shares at $.10 per share for total proceeds of $50,000 to primarily unaffiliated individuals and entities.

XML

LEASE COMMITMENTS

6 Months Ended

Jun. 30, 2016

Leases [Abstract]

LEASE COMMITMENTS

NOTE 6.  LEASE COMMITMENTS 

The Company rents office space under a non-cancellable lease through May 2017 with monthly payments of approximately $2,700 plus costs.

Lease expense incurred for each of the six months ended June 30, 2016 and 2015 was approximately $16,200. Subsequent to June 30, 2016, future minimum payments under the leases total approximately $30,300 including:  2016 (balance) $16,800, and 2017 - $13,500

XML

GOING CONCERN

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GOING CONCERN

NOTE 7.  GOING CONCERN

The Company has suffered losses from operations and has working capital and stockholders' equity deficits. In all likelihood, the Company will be required to make significant future expenditures in connection with marketing efforts along with general administrative expenses. These conditions raise substantial doubt about the Company's ability to continue as a going concern.

The Company may raise additional capital through the sale of its equity securities, through an offering of debt securities, or through borrowings from financial institutions or related parties. By doing so, the Company hopes to generate sufficient capital to execute its business plan of selling medical supplies on an ongoing basis. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern.

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 8.  SUBSEQUENT EVENTS

On July 11, 2016, the Company purchased a delivery vehicle for $17,913 pursuant to a 3.79% simple finance charge agreement.  The loan term is five years with a monthly payment of $299.

The Company has evaluated subsequent events through the date these financial statements were available to be issued and determined that there are no other reportable subsequent events.

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ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Use of Estimates

Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 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

The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents.

Accounts receivable

Accounts receivable

The majority of the Company's revenues are received from Medicare, Medicaid, and private insurance companies.  As such, the Company records revenues at allowable amounts, net of estimated allowances and discounts based on contracted prices and historical collection rates.  The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary. At June 30, 2016 and December 31, 2015, the Company has determined that no allowance for doubtful accounts is necessary.

Property and equipment

Property and equipment

Property and equipment are recorded at cost and depreciated under straight line methods over each item's estimated useful life.

Inventory

Inventory

The Company carries inventory of durable medical equipment and medical supplies for resale.  Inventory is accounted for on a first–in first-out basis.

Revenue recognition

Revenue recognition

The Company's primary source of revenue is reimbursement from Medicare, Medicaid and private insurance companies for the sale of medical equipment and supplies to patients. Revenue from product sales is recognized subsequent to a patient (customer) ordering a product at an agreed-upon price, and when delivery has occurred and collectability is reasonably assured. A purchase arrangement is evidenced by a written order, with delivery considered as made after physical customer acceptance. Although rare, defective products may be returned, with other return issues considered on a case-by-case basis. Services, such as periodic scheduled deliveries, are contracted in writing, and generally billed monthly. Any service revenue earned by the Company for services, such as safety and set-up consulting or claims processing, is recorded after the service is performed. Rental of durable home medical equipment is evidenced by written contract, with revenue recognized when rent is earned. 

Advertising costs

Advertising costs

Advertising costs are expensed as incurred. The Company had advertising costs during the six months ended June 30, 2016 and 2015 of $2,520 and $1,781, respectively. 

Income tax

Income tax

The Company accounts for income taxes pursuant to ASC 740. Under ASC 740, deferred taxes are provided for using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Net income (loss) per share

Net income (loss) per share

The net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share.

There were no potentially dilutive debt or equity instruments issued or outstanding during the six months ended June 30, 2016 or 2015. 

Financial Instruments

Financial instruments

The carrying value of the Company's financial instruments, as reported in the accompanying balance sheets, approximates fair value. 

Concentrations

Concentrations

Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents.  The Company places its cash and cash equivalents at well-known financial institutions, where at times, such balances may exceed FDIC insurance limits.

The Company receives a significant amount of its revenues in reimbursements from Medicare and Medicaid through competitive bidding processes.  There is no guarantee that the Company will continue to be selected as a winning contract supplier under future bidding rounds.

Long-Lived Assets

Long-lived assets

In accordance with ASC 350, the Company regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both internally and externally, that suggest impairment. If impairment testing indicates a lack of recoverability, an impairment loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value.

Products and services, geographic areas and major customers

Products and services, geographic areas and major customers 

The Company's business of medical supply sales constitutes one operating segment. All revenues each year were domestic and to external customers.

XML

LONG-TERM DEBT (Tables)

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Schedule of Long Term Debt

	June 30, 2016			December 31, 2015
3.53% installment note payable $352 monthly, including  interest, through July 2019, collateralized by vehicle with carrying value of $9,776	$	12,336		$	14,214
2.99% installment note payable $350 monthly, including    interest, through August 2019, collateralized by vehicle with carrying value of $11,668		12,666			14,558
		25,002			28,772
Less principal due within one year		(7,726	)		(7,603	)
TOTAL LONG-TERM DEBT	$	17,276		$	21,169

XML

ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Accounting Policies [Abstract]
Advertising cost	$ 2,520	$ 1,781

XML

EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Depreciation	$ 12,783	$ 7,004	$ 23,156	$ 14,300
Accumulated depreciation	$ 56,128		$ 56,128		$ 40,771

XML

LINE OF CREDIT (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Debt Disclosure [Abstract]
Line of credit	$ 74,000		$ 77,250
Interest expense	1,500	$ 1,500
Principal payments made	$ 3,250	$ 1,252

XML

LONG-TERM DEBT (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Long Term Gross	$ 25,002	$ 28,772
Less principal due within one year	(7,726)	(7,603)
Total Long Term debt	17,276	21,169
Long-term Debt One [Member]
Note Payable, monthly installment	352
Carrying Value	9,776
Long Term Gross	12,336	14,214
Long-term Debt Two [Member]
Note Payable, monthly installment	350
Carrying Value	11,668
Long Term Gross	$ 12,666	$ 14,558

XML

COMMON STOCK (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Accounting Policies [Abstract]
Proceeds from sales of common stock	$ 50,000

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LEASE COMMITMENTS (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Leases [Abstract]
Office space approximate monthly payment	$ 2,700
Lease expense on all leases	$ 16,200	$ 16,200
2016			$ 16,800
2017			13,500
Total future minimum payments			$ 30,300