Current Assets

6 Months Ended

Jun. 30, 2020

Other Current Assets

CURRENT ASSETS

3. CURRENT ASSETS

Cash and Restricted Cash - On April 23, 2020, the Company’s wholly owned subsidiary, Pharmacy Value Management Solutions, Inc. (‘PVMS”) received a loan in the principal amount of $1,243,840 from Mechanics Bank (the “Bank”) pursuant to the Paycheck Protection Program “PPP”. On May 22, 2020, the Bank notified PVMS that the loan was in default as a result of false statements made in the loan application. PVMS disputes the Bank’s claim and believes that it made no false statements in it's PPP loan application. The statements relate to the number of employees and the monthly payroll amounts. As a result, PVMS’ account with Mechanics Bank has been frozen with a balance of $845,340. Both PVMS and the Bank are seeking guidance from the Small Business Administration as to how to resolve this dispute. Until resolved, it is likely that this account will remain frozen.

Cash and restricted cash consists of the following at June 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
Cash	$	145,915	$	69,327
Restricted Cash		845,340		—
Total cash and restricted cash shown in the
consolidated statement of cash flows	$	991,255	$	69,327

Other current assets consists of the following at June 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
Loans to others	$	34,406	$	42,676
Security and lease deposits		3,500		3,500
Capitalized portion of lease		1,237		1,808
Prepaid expenses		288,487		452,953
Miscellaneous receivable		329,395		325,660
Other current asset	$	657,025	$	826,597