10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Amendment No. 1

FORM 10-Q/A

(Mark one)

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

For the quarterly period ended March 31, 2017

OR

o 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: 001-35141

RENNOVA HEALTH, INC.

(Exact name of registrant as specified in its charter)

Delaware	68-0370244
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
400 South Australian Ave., 8th Floor West Palm Beach, FL	33401
(Address of principal executive offices)	(Zip Code)

(561) 855-1626

(Registrant’s telephone number, including area code)

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 x No o

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 o

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

Large accelerated filer  o	Accelerated filer  o
Non-accelerated filer  o (Do not check if a smaller reporting company)	Smaller reporting company  x
Emerging growth company  o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

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

As of May 18, 2017, the registrant had 7,103,796 shares of its Common Stock, $0.01 par value, outstanding.

EXPLANATORY NOTE

This Amendment No. 1 to the Quarterly Report on Form 10-Q is being filed solely to furnish the Interactive Data files as Exhibit 101, in accordance with Rule 405 of Regulation S-T. No other changes have been made to the Form 10-Q, as originally filed on May 22, 2017.

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Item 6. Exhibits

Exhibit 101.INS	XBRL Instance Document*
Exhibit 101.SCH	XBRL Schema Document*
Exhibit 101.CAL	XBRL Calculation Link base Document*
Exhibit 101.DEF	XBRL Definition Link base Document*
Exhibit 101.LAB	XBRL Label Link base Document*
Exhibit 101.PRE	XBRL Presentation Link base Document*

____________________

*Furnished herewith

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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.

	RENNOVA HEALTH, INC.
Date: May 23, 2017	By: /s/ Seamus Lagan
	Seamus Lagan
	Chief Executive Officer and Interim Chief Financial Officer (Principal Executive Officer and Interim Principal Financial Officer)

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Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 18, 2017
Document And Entity Information
Entity Registrant Name	Rennova Health, Inc.
Entity Central Index Key	0000931059
Document Type	10-Q/A
Document Period End Date	Mar. 31, 2017
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 Common Stock, Shares Outstanding		7,103,796
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2017

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Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash	$ 1,365,053	$ 77,979
Accounts receivable, net	1,297,585	1,467,580
Prepaid expenses and other current assets	206,444	216,642
Income tax refunds receivable	1,458,438	1,458,438
Total current assets	4,327,520	3,220,639
Property and equipment, net	3,594,579	3,096,602
Deposits	159,557	165,152
Other assets	231,268	0
Total assets	8,312,924	6,482,393
Current liabilities:
Accounts payable (includes related parties)	3,301,427	3,351,388
Accrued expenses	2,970,330	4,135,146
Income taxes payable	700,436	942,433
Current portion of notes payable	7,724,614	9,011,247
Current portion of notes payable, related party	243,500	328,500
Current portion of capital lease obligations	1,271,860	1,796,053
Total current liabilities	16,212,167	19,564,767
Other liabilities:
Capital lease obligations, net of current portion	1,387,272	1,774,121
Derivative liabilities	56,046,310	29,401
Total liabilities	73,645,749	21,368,289
Stockholders' equity:
Common stock, $0.01 par value, 500,000,000 shares authorized, 5,881,670 and 2,800,377 shares issued and outstanding	58,817	28,004
Additional paid-in-capital	44,953,912	45,726,862
Accumulated deficit	(110,345,571)	(60,640,864)
Total stockholders' deficit	(65,332,825)	(14,885,896)
Total liabilities and stockholders' deficit	8,312,924	6,482,393
Series G Preferred Stock [Member]
Stockholders' equity:
Preferred stock	2	2
Series H Preferred Stock [Member]
Stockholders' equity:
Preferred stock	$ 15	$ 100

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Common stock par value	$ .01	$ .01
Common stock shares authorized	500,000,000	500,000,000
Common stock shares issued	5,881,670	2,800,377
Common stock shares outstanding	5,881,670	2,800,377
Series G Preferred Stock [Member]
Preferred stock shares authorized	14,000	14,000
Preferred stock par value	$ .01	$ 0.01
Preferred stock shares issued	215	215
Preferred stock shares outstanding	215	215
Series H Preferred Stock [Member]
Preferred stock shares authorized	14,202	14,202
Preferred stock par value	$ .01	$ 0.01
Preferred stock shares issued	1,565	10,019
Preferred stock shares outstanding	1,565	10,019

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues
Net Revenues	$ 1,176,113	$ 1,878,813
Operating expenses:
Direct costs of revenue	292,304	564,200
General and administrative expenses	4,224,239	5,954,046
Sales and marketing expenses	314,866	873,440
Engineering expenses	380,197	522,768
Bad debt expense	(2,911)	1,285
Depreciation and amortization	592,945	727,270
Total operating expenses	5,801,640	8,643,009
Loss from operations	(4,625,527)	(6,764,196)
Other income (expense):
Other income	0	100,010
Change in fair value of derivative instruments	571,719	3,433,588
Interest expense	(45,647,649)	(1,013,413)
Total other (expense) income	(45,075,930)	2,520,185
Loss before income taxes	(49,701,457)	(4,244,011)
Income tax expense	3,250	0
Net loss	$ (49,704,707)	$ (4,244,011)
Net loss per common share: Basic and diluted	$ (10.15)	$ (8.59)
Weighted average number of shares outstanding during the period - Basic and diluted	4,897,647	493,887

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Condensed Consolidated Statement Of Changes In Stockholders’ Deficit (Unaudited) - 3 months ended Mar. 31, 2017 - USD ($)	Series G Preferred Stock [Member]	Series H Preferred Stock [Member]	Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings	Total
Beginning balance, shares at Dec. 31, 2016	215	10,019	10,234	2,800,377
Beginning balance, value at Dec. 31, 2016	$ 2	$ 100	$ 102	$ 28,004	$ 45,726,862	$ (60,640,864)	$ (14,885,896)
Conversion of preferred stock into common stock, shares converted			(6,280)
Conversion of preferred stock into common stock, converted share value		$ (63)	$ (63)
Conversion of preferred stock into common stock, stock issued value				23,259	(23,196)
Common stock issued in exchange for warrants, value				$ 295	57,560		57,855
Shares issued in settlement of notes payable, shares				400,000
Shares issued in settlement of notes payable, value				$ 4,000	436,000		440,000
Exchange of preferred stock for convertible debentures, shares		(2,174)	(2,174)
Exchange of preferred stock for convertible debentures, value		$ (22)	$ (22)		(2,173,978)		(2,174,000)
Conversion of debentures into common stock, shares				315,171
Conversion of debentures into common stock, value				$ 3,152	486,032		489,184
Rounding up of common shares in connection with reverse stock split, shares				7,897
Rounding up of common shares in connection with reverse stock split, value				$ 79	(79)
Common stock granted to employees, shares				2,778
Common stock granted to employees, value				$ 28	(28)
Reclassification of derivative liabilities					409,524		409,524
Stock-based compensation					35,215		35,215
Net loss						(49,704,707)	(49,704,707)
Ending balance, shares at Mar. 31, 2017	215	1,565	1,780	5,881,670
Ending balance, value at Mar. 31, 2017	$ 15	$ 2	$ 17	$ 58,817	$ 44,953,912	$ (110,345,571)	$ (65,332,825)

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows used in operating activities:
Net loss	$ (49,704,707)	$ (4,244,011)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization	592,945	727,270
Non-cash gain on derivative instruments	(571,719)	(3,433,588)
Stock issued for services	0	9,310
Stock-based compensation	35,215	0
Bad debt (recoveries) expense	(2,911)	1,285
Non-cash interest expense	44,074,628	0
Amortization of debt discount	943,160	789,376
Non-cash settlement of debt	(50,000)	0
(Gain) loss on extinguishment of debt	0	(100,000)
Changes in operating assets and liabilities:
Accounts receivable	172,906	1,096,357
Prepaid expenses and other current assets	10,198	(126,863)
Security deposits	5,595	0
Accounts payable	(49,961)	(923,381)
Accrued expenses	(1,164,816)	(684,981)
Income tax assets and liabilities	(241,997)	(101,015)
Net cash used in operating activities	(5,951,464)	(6,990,241)
Cash flows used in investing activities:
Purchase of property and equipment	(1,090,922)	(19,002)
Net cash used in investing activities	(1,090,922)	(19,002)
Cash flows provided by financing activities:
Proceeds from issuance of related party notes payable and advances	3,395,000	3,000,000
Proceeds from issuance of notes payable and convertible debentures	9,892,500	5,000,000
Payments on related party notes payable and advances	(3,430,000)	(4,600,000)
Payments on notes payable	(616,998)	0
Payments on capital lease obligations	(911,042)	(323,181)
Net cash provided by financing activities	8,329,460	3,076,819
Net increase (decrease) in cash	1,287,074	(3,932,424)
Cash at beginning of period	77,979	8,833,230
Cash at end of period	$ 1,365,053	$ 4,900,806

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1. Organization and Basis of Presentation

3 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Basis of Presentation

Rennova Health, Inc. (“Rennova”), together with its subsidiaries (the “Company”, “we”, “us” or “our”), is a vertically integrated provider of healthcare related products and services. The Company’s principal lines of business are (i) clinical laboratory operations; (ii) supportive software solutions to healthcare providers including Electronic Health Records (“EHR”), Medical Billing Services and Laboratory Information Services; (iii) decision support and interpretation of cancer and genomic diagnostics; and (iv) the recent addition of a rural critical access hospital.

Basis of Presentation

The accompanying unaudited condensed consolidated interim financial statements should be read in conjunction with the 2016 audited financial statements included in the Company’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (the “SEC”) on April 10, 2017. These condensed consolidated interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC, and therefore omit or condense certain footnotes and other information normally included in consolidated interim financial statements prepared in accordance with U.S. GAAP. All material intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company’s management, the unaudited interim condensed consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) considered necessary for the fair presentation of the financial position and results of operations and cash flows for the interim periods reported herein. The results of operations presented are not necessarily indicative of the results to be expected for any other interim period or for the entire year.

During the three months ended March 31, 2017 and 2016, comprehensive loss was equal to the net loss amounts presented in the accompanying condensed consolidated statements of operations. In addition, certain prior year balances have been reclassified to conform to the current presentation.

Reverse Stock Split

On February 7, 2017, the Company’s Board of Directors approved an amendment to the Company’s Certificate of Incorporation to effect a 1-for-30 reverse stock split of the Company’s shares of common stock effective on February 22, 2017 (the “Reverse Stock Split”). The stockholders of the Company had approved an amendment to the Company’s Certificate of Incorporation on December 22, 2016 to effect a reverse split of all of the Company’s shares of common stock at a specific ratio within a range from 1-for-10 to 1-for-30, and granted authorization to the Board of Directors to determine in its discretion the specific ratio and timing of the reverse split prior to December 31, 2017.

As a result of the Reverse Stock Split, every 30 shares of the Company’s then outstanding common stock was combined and automatically converted into one share of the Company’s common stock, par value $0.01 per share. In addition, the conversion and exercise prices of all of the Company’s outstanding preferred stock, common stock purchase warrants, stock options and convertible notes payable were proportionately adjusted at the 1:30 reverse split ratio in accordance with the terms of such instruments. Proportionate voting rights and other rights of common stockholders were not affected by the Reverse Stock Split, other than as a result of the rounding up of fractional shares, as no fractional shares were issued in connection with the Reverse Stock Split.

The reverse stock split became effective at the close of business on February 22, 2017 and the Company’s common stock began trading on The NASDAQ Capital Market on a post-split basis on February 23, 2017. The par value and other terms of the common stock were not affected by the Reverse Stock Split. The authorized capital of the Company of 500,000,000 shares of common stock and 5,000,000 shares of preferred stock were also unaffected by the Reverse Stock Split. All share, per share and capital stock amounts for all periods presented have been restated to give effect to the Reverse Stock Split.

Going Concern

The Company’s consolidated financial statements are prepared using U.S. GAAP applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has accumulated significant losses and has negative cash flows from operations, and at March 31, 2017 had a working capital deficit and stockholders’ deficit of $11.7 million and $65.2 million, respectively, which raise substantial doubt about its ability to continue as a going concern. In addition, the Company’s cash position is critically deficient, critical payments are not being made in the ordinary course and certain indebtedness in the amount of $6.0 million matured on March 31, 2017, which the Company does not have the financial resources to satisfy (see note 4), all of which raises substantial doubt about the Company’s ability to continue as a going concern.

The Company is currently executing on a plan of action to reduce the number of laboratory facilities it operates from five such facilities into one, with a corresponding reduction in the number of employees and associated operating expenses, in order to reduce costs. In addition, the Company issued $12.4 million of convertible debentures in the first three months of 2017, for which it received net proceeds of $9.9 million (see note 5), and intends to seek additional financing on similar terms within the next few months. There are currently no commitments for any such funding.

There can be no assurance that the Company will be able to achieve its business plan, raise any additional capital or secure the additional financing necessary to implement its current operating plan.  The ability of the Company to continue as a going concern is dependent upon its ability to significantly reduce its operating costs, increase its revenues and eventually regain profitable operations. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

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2. Accounts Receivable

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Accounts Receivable

Accounts receivable at March 31, 2017 and December 31, 2016 consisted of the following:

	March 31,			December 31,
	2017			2016
Accounts receivable - laboratory services	$	6,998,918		$	13,220,498
Accounts receivable - all others		732,888			701,583
Total accounts receivable		7,731,806			13,922,081
Less:
Allowance for discounts		(6,089,059	)		(12,103,547	)
Allowance for bad debts		(345,162	)		(350,954	)
Accounts receivable, net	$	1,297,585		$	1,467,580

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3. Property and Equipment

3 Months Ended

Mar. 31, 2017

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment at March 31, 2017 and December 31, 2016 consisted of the following:

	March 31,			December 31,
	2017			2016
Medical equipment	$	696,195		$	696,195
Buiding		1,056,000			–
Equipment		490,746			490,746
Equipment under capital leases		4,497,025			4,497,025
Furniture		525,689			525,689
Leasehold improvements		1,335,971			1,335,971
Vehicles		196,534			196,534
Computer equipment		634,237			634,237
Software		1,774,269			1,739,348
		11,206,666			10,115,745
Less accumulated depreciation		(7,612,087	)		(7,019,143	)
Property and equipment, net	$	3,594,579		$	3,096,602

On January 13, 2017, the Company completed an asset purchase agreement to acquire certain assets related to Scott County Community Hospital, based in Oneida, Tennessee (the “Hospital Assets”). The Hospital Assets include a 52,000 square foot hospital building and 6,300 square foot professional building on approximately 4.3 acres. Scott County Community Hospital, which has since been renamed as Big South Fork Medical Center, is classified as a Critical Access Hospital (rural). The Company acquired the Hospital Assets out of bankruptcy for a purchase price of $1.0 million, and the purchase price has been recorded as property and equipment in the Company’s consolidated balance sheet. The Company intends to reopen the hospital during the third quarter of 2017, subject to the receipt of the necessary licenses and regulatory approvals.

Depreciation expense on property and equipment was $0.6 million and $0.7 million for the three months ended March 31, 2017 and 2016, respectively. Management periodically reviews the valuation of long-lived assets, including property and equipment, for potential impairment. Management did not recognize any impairment of these assets during the three months ended March 31, 2017 and 2016.

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4. Notes Payable

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Notes Payable

The Company and its subsidiaries are party to a number of loans with affiliates and unrelated parties. At March 31, 2017 and December 31, 2016, notes payable consisted of the following:

Notes Payable – Third Parties

	March 31, 2017			December 31, 2016
Loan payable under prepaid forward purchase contract	$	5,000,000		$	5,000,000
Loan payable to TCA Global Master Fund, LP ("TCA") in the original principal amount of $3 million at 16% interest (the "TCA Debenture").  Principal and interest payments due in various installments through September 17, 2017.		2,383,002			3,000,000
Notes payable to CommerceNet and Jay Tenenbaum in the original principal amount of $500,000, bearing interest at 6% per annum (the "Tegal Notes"). Prinicpal and interest payments are due annually from July 12, 2015 through July 12, 2017		341,612			341,612
Other convertible notes payable		–			440,000
Unamortized discount on other convertible notes		–			(179,889	)
Derivative liability associated with the TCA Debenture, at fair value		–			409,524
		7,724,614			9,011,247
Less current portion		(7,724,614	)		(9,011,247	)
Notes payable - third parties, net of current portion	$	–		$	–

On March 31, 2016, the Company entered into an agreement to pledge certain of its accounts receivable as collateral against a prepaid forward purchase contract whereby the Company received consideration in the amount of $5.0 million. The receivables had an estimated collectable value of $8.7 million which had been adjusted down to approximately $4.3 million on the Company’s balance sheet as of March 31, 2016 and $0 as of March 31, 2017. In exchange for the consideration received, the counterparty received the right to: (i) a 20% per annum investment return from the Company on the consideration, with a minimum repayment term of six months and minimum return of $0.5 million, (ii) all payments recovered from the accounts receivable up to $5.25 million, if paid in full within six months, or $5.5 million, if not paid in full within six months, and (iii) 20% of all payments of the accounts receivable in excess of amounts received in (i) and (ii). On March 31, 2017, to the extent that the counterparty has not been paid $6.0 million, the Company was required to pay the difference. To date, the Company has not recovered any payments against the accounts receivable. As of March 31, 2017, the Company has accrued $1.0 million for the counterparty’s required investment return, which is reflected in accrued expenses in the accompanying consolidated balance sheet, and $6.0 million was due to the counterparty on March 31, 2017. The Company does not have the financial resources to repay this obligation.

The Company did not make the required monthly principal and interest payments due under the TCA Debenture for the period from October 2016 through March 2017. On February 2, 2017, the Company made a payment to TCA in the amount of $0.4 million which was applied to accrued and unpaid interest and fees, including default interest, as of the date of payment. On March 21, 2017, the Company made a payment to TCA in the amount of $0.75 million, of which approximately $0.1 million was applied to accrued and unpaid interest and fees in accordance with the terms of the TCA Debenture. Also on March 21, 2017, the Company entered into a letter agreement with TCA, which (i) waives any payment defaults through March 21, 2017; (ii) provides for the $0.75 million payment discussed above; (iii) sets forth a revised repayment schedule whereby the remaining principal plus interest aggregating to approximately $2.6 million is repaid in various monthly installments from April of 2017 through September of 2017; and (iv) provides for payment of an additional service fee in the amount of $150,000, which is due upon the earlier of September 20, 2017 or the date on which a previously filed registration statement filed by the Company is declared effective by the SEC, and is reflected in accrued expenses in the accompanying consolidated balance sheet at March 31, 2017. In addition, TCA entered into an intercreditor agreement with the purchasers of the convertible debentures (see note 5) which sets forth rights, preferences and priorities with respect to the security interests in the Company’s assets.

On September 15, 2016, the Company entered into an agreement with two investors whereby the Company sold to the investors convertible notes in the aggregate principal amount of $0.4 million (the “September 2016 Notes”). The September 2016 Notes were convertible into shares of the Company’s common stock at a conversion price of $7.50 per share. In conjunction with the sale of the September 2016 Notes, the Company issued warrants to purchase an aggregate of 66,667 shares of the Company’s common stock at an exercise price of $12.00 per share. Based on the allocation of the net proceeds from the September 2016 Notes to the fair value of the warrants, and the resulting beneficial conversion features, the Company recognized a discount for the entire face value of the September 2016 Notes, which was accreted through the notes’ maturity date of March 15, 2017. On March 13, 2017, the September 2016 Notes, along with the accompanying warrants, were exchanged for 400,000 shares of the Company’s common stock.

The Company did not make the principal payments under the Tegal Notes that were due on July 12, 2016. On November 3, 2016, the Company received a default notice from the holders of the Tegal Notes demanding immediate repayment of the outstanding principal and accrued interest aggregating to $0.4 million. On December 7, 2016 the Company received a breach of contract complaint with a request for entry of a default judgment (see note 13). To date, the Company has yet to repay this amount.

Notes Payable – Related Parties

	March 31, 2017			December 31, 2016
Loan payable to Alcimede LLC, bearing interest at 6% per annum, with all principal and interest due on August 2, 2017	$	168,500		$	218,500
Other advances from related parties		75,000			110,000
		243,500			328,500
Less current portion		(243,500	)		(328,500	)
Total notes payable, related parties	$	–		$	–

On February 3, 2015, the Company borrowed $3.0 million from Alcimede LLC (“Alcimede”). Seamus Lagan, the Company’s President and Chief Executive Officer, is the sole manager of Alcimede. The note has an interest rate of 6% and was originally due on February 2, 2016. Alcimede has since agreed to extend the maturity date of the loan to August 2, 2017. On June 29, 2015, Alcimede exercised options granted in October 2012 to purchase one million shares of the Company’s common stock at an exercise price of $2.50 per share, and the loan outstanding was reduced in satisfaction of the aggregate exercise price of $2.5 million. In August of 2016, $0.3 million was repaid by the Company through the issuance of shares of common stock. In March of 2017, the Company and Mr. Lagan agreed that a payment made to Mr. Lagan in the amount of $50,000 would be deducted from the outstanding balance of the note, and the remaining balance due on this loan as of March 31, 2017 was $0.2 million.

During the three months ended March 31, 2017, the Company repaid $0.1 million that was outstanding to a former principal stockholder, and borrowed an additional $75,000 from this same stockholder.

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5. Convertible Debentures

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Convertible Debentures

On February 2, 2017, the Company issued $1.6 million aggregate principal amount of Original Issue Discount Convertible Debentures due three months from the date of issuance (the “February Debentures”) and warrants to purchase an aggregate of 100,000 shares of common stock, which can be exercised at any time after August 17, 2017 at an exercise price of $2.58 per share (the “Warrants”), to an accredited investor for a purchase price of $1.5 million. The February Debentures were convertible at a conversion price of $2.58 per share (subject to adjustment).

On March 21, 2017, the Company issued $10.85 million aggregate principal amount of Senior Secured Original Issue Discount Convertible Debentures due March 21, 2019 (the “Convertible Debentures”) and three series of warrants to purchase an aggregate of 19,608,426 shares of the Company’s common stock to several accredited investors. The Company received net proceeds from this transaction in the approximate amount of $8.4 million. The Company used $3.8 million of the net proceeds to repay the 2017 Diamantis Note (see note 6) and $0.75 million of the net proceeds to make the partial repayment on the TCA Debenture (see note 4). The remainder of the net proceeds were used for general corporate purposes. In conjunction with the issuance of the Convertible Debentures, the holder of the February Debentures exchanged these debentures for $2.5 million of new debentures (the “Exchange Debentures” and, collectively with the Convertible Debentures, the “Debentures”) on the same terms as, and pari passu with, the Convertible Debentures, and warrants to purchase 4,453,917 shares of the Company’s common stock. The Company recorded non-cash interest expense in the amount of $0.4 million as a result of this exchange. Additionally, the holders of an aggregate of $2.2 million stated value of the Company’s Series H Convertible Preferred Stock (the “Series H Preferred Stock”) exchanged such preferred stock into $2.7 million principal amount of Exchange Debentures and warrants to purchase 4,871,853 shares of the Company’s common stock. All of the Debentures contain a 24% original issue discount, have no regularly scheduled interest payments except in the event of a default and have a maturity date of March 21, 2019. The warrants issued with the Convertible Debentures and the Exchange Debentures are collectively referred to as the “Debenture Warrants.”

The Debentures are convertible into shares of the Company’s common stock at an initial conversion price of $1.66 per share, subject to adjustment as more fully described in the Debentures. The Debentures will begin to amortize monthly commencing on the 90^th day following the closing date, except for the Exchange Debentures related to the Series H Preferred Stock, which began to amortize monthly on the closing date. On each monthly amortization date, the Company may elect to repay 5% of the original principal amount of Debentures in cash or, in lieu thereof, the conversion price of such Debentures will thereafter be 85% of the volume weighted average price at the time of conversion. In the event the Company does not elect to pay such amortization amounts in cash, each investor, in their sole discretion, may increase the conversion amount subject to the alternative conversion price by up to four times the amortization amount. The Debentures contain customary affirmative and negative covenants. The conversion price is subject to reset in the event of offerings or other issuances of common stock, or rights to purchase common stock, at a price below the then conversion price, as well as other customary anti-dilution protections as more fully described in the Debentures. The Debentures are secured by all of the Company’s assets and are guaranteed by all of the Company’s subsidiaries. Between March 22, 2017 and March 31, 2017, holders of the Exchange Debentures converted an aggregate of $0.5 million of debentures into 315,171 shares of common stock.

The exercise price of the Debenture Warrants is subject to reset in the event of offerings or other issuances of common stock, or rights to purchase common stock, at a price below the then exercise price, as well as other customary anti-dilution protections. As a result of these provisions, both the Debentures and the Debenture Warrants are deemed to be not indexed to the Company’s common stock, and the Company recognized derivative liabilities for the embedded conversion feature of the Debentures and the Debenture Warrants in the amount of $15.3 million and $41.3 million, respectively. The Company recognized a discount for 100% of the principal value of the Debentures and non-cash interest expense in the amount of $43.7 million in connection with the recognition of these derivative liabilities. The carrying amount of the Debentures, which is reflected in other assets in the accompanying consolidated balance sheet as of March 31, 2017, is as follows:

	March 31, 2017
Convertible Debentures	$	10,850,000
Exchange Debentures		4,671,076
Discount on Debentures		(15,356,925	)
Deferred financing fees		(395,419	)
		(231,268	)
Less current portion		–
Convertible Debentures	$	(231,268	)

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6. Related Party Transactions

3 Months Ended

Mar. 31, 2017

Related Party Transactions [Abstract]

Related Party Transactions

In addition to the transactions discussed in note 4, the Company had the following related party transactions during the three months ended March 31, 2017 and 2016:

In January and February of 2017, the Company received advances aggregating $3.3 million from Christopher Diamantis, a director of the Company. The advances, along with $0.5 million of previously accrued but unpaid interest, were due on demand, bearing interest at 10% per annum. The Company used the advances to pay the purchase price for the Hospital Assets and for general corporate purposes. On March 7, 2017, the Company issued a promissory note to Mr. Diamantis in the amount of $3.8 million (the “2017 Diamantis Note”) in connection with these advances received in 2017, plus accrued and unpaid interest of $0.5 million. In conjunction with the issuance of the 2017 Diamantis Note, the Company also issued to Mr. Diamantis warrants to purchase 250,000 shares of the Company’s common stock. The 2017 Diamantis Note was repaid on March 21, 2017 with the proceeds received from the issuance of the Convertible Debentures (see note 5).

Alcimede billed the Company $0.1 million for consulting fees pursuant to a consulting agreement for each of the three months ended March 31, 2017 and 2016. 

Monarch Capital, LLC ("Monarch") billed the Company for consulting fees pursuant to a consulting agreement in the amount of $60,000 and $50,000 for the three months ended March 31, 2017 and 2016, respectively. Michael Goldberg, a director of the Company up until his resignation effective April 24, 2017, is the Managing Director of Monarch.  

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7. Capital Lease Obligations

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Capital Lease Obligations

The Company leases various assets under capital leases expiring through 2020 as follows:

	March 31,			December 31,
	2017			2016
Medical equipment	$	4,497,025		$	4,497,025
Less accumulated depreciation		(3,069,139	)		(2,809,511	)
Net	$	1,427,886		$	1,687,514

Aggregate future minimum rentals under capital leases are as follows:

Year ended December 31,
2017 (April through December)	$	965,811
2018		1,427,375
2019		377,919
2020		32,611
Total		2,803,716
Less interest		144,584
Present value of minimum lease payments		2,659,132
Less current portion of capital lease obligations		1,271,860
Capital lease obligations, net of current portion	$	1,387,272

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8. Stockholders' Equity

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Stockholders' Equity

Preferred Stock

During the three months ended March 31, 2017, 6,280 shares of Series H Preferred Stock were converted into 2,325,929 shares of common stock in accordance with the terms of the Series H Preferred Stock. Also during the three months ended March 31, 2017, 2,174 shares of Series H Preferred Stock were exchanged for Exchange Debentures with an aggregate principal amount of $2.7 million and warrants (see note 5).

Common Stock

On January 17, 2017, 2,778 shares of common stock were issued to an employee.

On February 22, 2017, the Reverse Stock Split became effective (see note 1). The Reverse Stock Split resulted in the issuance of 7,897 shares of common stock due to the rounding up of fractional shares.

On March 13, 2017, the Company issued 400,000 shares of common stock in settlement of $0.4 million of outstanding notes and warrants (see note 4).

On March 15, 2017, the Company agreed to issue 29,518 shares of common stock to a holder of a like number of warrants to purchase the Company’s common stock in exchange for the warrants.

During the three months ended March 31, 2017, Exchange Debentures with a principal amount of $0.5 million were converted into 315,171 shares of common stock (see note 5).

Stock Options

The Company currently maintains and sponsors the Tegal Corporation 2007 Incentive Award Plan (the “2007 Equity Plan”). Tegal Corporation is the predecessor entity to CollabRx. The 2007 Equity Plan, as amended, provides for the issuance of stock options and other equity awards to the Company’s officers, directors, employees and consultants. During the three months ended March 31, 2017 and 2016, the Company recognized stock-based compensation in the amount of $35,215 and $0, respectively, for the vesting of outstanding stock options. The following table summarizes the Company’s stock option activity for the three months ended March 31, 2017:

	Number of options		Weighted-average exercise price		Weighted-average contractual term
Outstanding at December 31, 2016		709,025	$	129.43		8.93
Granted		–		–
Expired		–		–
Forfeit		–		–
Exercised		–		–
Outstanding at March 31, 2017		709,025	$	129.43		8.68
Exercisable at March 31, 2017		642,357	$	144.53

As of March 31, 2017, the Company had approximately $0.3 million of unrecognized compensation cost related to stock options granted under the Company’s 2007 Equity Plan, which is expected to be recognized over a weighted-average period of 1.12 years.

Warrants

The Company, as part of various debt and equity financing transactions, has issued warrants to purchase shares of the Company’s common stock. The following summarizes the information related to warrants issued and the activity during the three months ended March 31, 2017:

	Number of warrants			Weighted average exercise price
Balance at December 31, 2016		1,407,647		$	11.70
Warrants issued during the period		29,284,193		$	1.66
Warrants exchanged for other securities		(96,185	)	$	12.46
Warrants exercised during the period		–		$	–
Warrants expired during the period		–		$	–
Balance at March 31, 2017		30,595,655		$	2.09

Basic and Diluted Loss per Share

Basic loss per share excludes dilution and is computed by dividing loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the income of the Company. For the three months ended March 31, 2017 and 2016, basic loss per share is the same as diluted loss per share.

Diluted loss per share excludes all dilutive potential shares if their effect is anti-dilutive. As of March 31, 2017 and 2016, the following potential common stock equivalents were excluded from the calculation of diluted loss per share as their effect was anti-dilutive:

	For the Three Months Ended March 31,
	2017		2016
Warrants		30,595,665		229,952
Convertible preferred stock		595,556		380,766
Convertible debt		10,007,141		293,045
Stock options		709,025		60,756
		41,907,387		964,519

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9. Supplemental Disclosure of Cash Flow Information

3 Months Ended

Mar. 31, 2017

Supplemental Cash Flow Elements [Abstract]

Supplemental Disclosure of Cash Flow Information

Cash paid for interest	$	881,457	$	520,000
Cash paid for income taxes	$	296,313	$	–
Non-cash investing and financing activities:
Exchange of preferred stock for convertible debentures and warrants	$	2,695,760	$	–
Exchange of convertible debentures for convertible debentures and warrants	$	2,464,500
Notes payable settled through issuance of common stock	$	440,000	$	–
Debentures converted into common stock	$	486,032	$	–
Conversions of preferred stock into common stock	$	6,280,000	$	–

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10. Commitments and Contingencies

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Legal Matters

From time to time, the Company may be involved in a variety of claims, lawsuits, investigations and proceedings related to contractual disputes, employment matters, regulatory and compliance matters, intellectual property rights and other litigation arising in the ordinary course of business. The Company operates in a highly regulated industry which may inherently lend itself to legal matters. Management is aware that litigation has associated costs and that results of adverse litigation verdicts could have a material effect on the Company's financial position or results of operations. Management, in consultation with legal counsel, has addressed known assertions and predicted unasserted claims below.

The Company’s Epinex Diagnostics Laboratories, Inc. subsidiary had been sued in a California state court by two former employees who alleged that they were wrongfully terminated, as well as for a variety of unpaid wage claims. The parties entered into a settlement agreement of this matter on July 29, 2016 for approximately $0.2 million, and the settlement was consummated on August 25, 2016. In October of 2016, the plaintiffs in this matter filed a motion with the court seeking payment for attorneys’ fees in the approximate amount of $0.7 million. On March 24, 2017, the court granted plaintiffs’ motion for payment of attorneys’ fees in the amount of $0.3 million, and the Company has accrued this amount in its consolidated financial statements.

In February 2016, the Company received notice that the Internal Revenue Service (the “IRS”) had placed a lien against Medytox Solutions, Inc. and its subsidiaries relating to unpaid 2014 taxes due, plus penalties and interest, in the amount of $5.0 million. The Company paid $0.1 million toward its 2014 tax liability in March 2016. The Company filed its 2015 Federal tax return on March 15, 2016 and the accompanying election to carryback the reported net operating losses was filed in April 2016. On August 24, 2016, the lien was released, and in September of 2016 the Company received a refund from the IRS in the amount of $1.9 million. In November of 2016, the IRS commenced an audit of the Company’s 2015 Federal tax return. The Company is currently unable to predict the outcome of the audit or any liability to the Company that may result from the audit.

On September 27, 2016, a tax warrant was issued against the Company by the Florida Department of Revenue (the “DOR”) for unpaid state income taxes in the approximate amount of $0.9 million, including penalties and interest. On January 25, 2017, the Company paid the DOR $250,000 as partial payment on this liability, and in February 2017 the Company entered into a Stipulation Agreement with the DOR which will allow the Company to pay the remainder of the amount due to the DOR over a period of 12 months. If at any time during the Stipulation period the Company fails to timely file any required tax returns with the DOR or does not meet the payment obligations under the Stipulation Agreement, the entire amount due will be accelerated.

In December of 2016, TCS-Florida, L.P. (“Tetra”), filed suit against the Company for failure to make the required payments under an equipment leasing contract that the Company had with Tetra (see note 9). On January 3, 2017, Tetra received a Default Judgment against the Company in the amount of $2.6 million, representing the balance owed on the leases, as well as additional interest, penalties and fees. The Company has recognized this amount in its consolidated financial statements as of December 31, 2016. In January and February of 2017, the Company made payments to Tetra in connection with this judgment aggregating to $0.7 million, and on February 15, 2017 the Company entered into a forbearance agreement with Tetra whereby the remaining $1.9 million due will be paid in 24 equal monthly installments, commencing on May 1, 2017.

In December of 2016, DeLage Landen Financial Services, Inc. (“DeLage”), filed suit against the Company for failure to make the required payments under an equipment leasing contract that the Company had with DeLage (see note 9). On January 24, 2017, DeLage received a default judgment against the Company in the approximate amount of $1.0 million, representing the balance owed on the lease, as well as additional interest, penalties and fees. The Company has recognized this amount in its consolidated financial statements as of December 31, 2016. On February 8, 2017, a Stay of Execution was filed and under its terms the balance due will be paid in variable monthly installments through January of 2019, with an implicit interest rate of 4.97%.

On December 7, 2016, the holders of the Tegal Notes (see note 4) filed suit against the Company seeking payment for the amounts due under the notes in the aggregate of $0.4 million, including accrued interest. A request for entry of default judgment was filed on January 24, 2017. The Company has attempted to work out a payment arrangement with the plaintiffs, but to date has not been able to consummate such an arrangement. A Case Management Conference is scheduled for September 5, 2017.

Potential De-Listing of the Company’s Stock

On April 18, 2017, the Company was notified by Nasdaq that the stockholders’ equity balance reported on its Form 10-K for the year ended December 31, 2016 fell below the $2.5 million minimum requirement for continued listing under the Nasdaq Capital Market’s Listing Rule 5550(b)(1) (the “Rule”). As of December 31, 2016, the Company’s stockholders’ deficit balance was $14.9 million. In accordance with the Rule, the Company has until June 2, 2017 to prepare and submit a plan to Nasdaq outlining how it intends to regain compliance. If the plan is accepted, the Company can be granted up to 180 calendar days from April 18, 2017 to evidence compliance. There can be no guarantee that the Company will be able to regain compliance with the continued listing requirement of Nasdaq Marketplace Rule 5550(b)(1) or that its plan will be accepted by Nasdaq.

The Company is currently evaluating its available options to resolve the deficiency and regain compliance with the Nasdaq minimum stockholders’ equity requirement.

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11. Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Reporting

Operating segments are defined under U.S. GAAP as components of an enterprise for which discrete financial information is available and are evaluated regularly by the enterprise’s chief operating decision maker in determining how to allocate resources and assess performance. The Company operates in four reportable business segments:

· Clinical Laboratory Operations, which specializes in providing urine and blood toxicology and pain medication testing to physicians, clinics and rehabilitation facilities in the United States.

· Supportive Software Solutions, including EHR and medical billing and laboratory information management systems.

· Decision Support and Informatics, which develops and markets medical information and clinical support products and services intended to set a standard for the clinical interpretation of genomics-based precision medicine.

· Hospital Operations, which reflects the purchase of the Hospital Assets (see note 3) and the operations of Scott County Community Hospital, which has since been renamed as Big South Fork Medical Center.

The accounting policies of the reportable segments are the same as those described in Note 2, Summary of Significant Accounting Policies, of the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Selected financial information for the Company’s operating segments is as follows:

	Three Months Ended March 31,
	2017			2016
Net revenues - External
Clinical Laboratory Operations	$	767,010		$	1,465,137
Supportive Software Solutions		236,945			230,026
Decision Support and Informatics		172,158			183,650
	$	1,176,113		$	1,878,813
Net revenues - Intersegment
Supportive Software Solutions	$	78,326		$	296,348
	$	78,326		$	296,348
(Loss) income from operations
Clinical Laboratory Operations	$	(1,341,998	)	$	(2,650,540	)
Supportive Software Solutions		(718,546	)		(1,313,313	)
Decision Support and Informatics		(301,001	)		(881,566	)
Hospital Operations		(467,316	)		–
Corporate		(1,804,517	)		(1,952,437	)
Eliminations		7,851			33,660
	$	(4,625,527	)	$	(6,764,196	)
Depreciation and amortization
Clinical Laboratory Operations	$	434,468		$	581,101
Supportive Software Solutions		157,563			164,428
Decision Support and Informatics		8,453			14,527
Corporate		312			875
Eliminations		(7,851	)		(33,661	)
	$	592,945		$	727,270
Capital expenditures
Clinical Laboratory Operations	$	–		$	16,885
Supportive Software Solutions		–			2,117
Hospital Operations		1,090,922			–
	$	1,090,922		$	19,002

	March 31, 2017			December 31, 2016
Total assets
Clinical Laboratory Operations	$	3,568,569		$	4,081,136
Supportive Software Solutions		1,870,578			2,602,428
Decision Support and Informatics		246,930			379,652
Hospital Operations		1,342,804			–
Corporate		3,839,108			2,130,191
Eliminations		(2,786,333	)		(2,711,014	)
	$	8,081,656		$	6,482,393

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12. Recently Issued Accounting Standards

3 Months Ended

Mar. 31, 2017

Accounting Changes and Error Corrections [Abstract]

Recently Issued Accounting Standards

The following table provides a brief description of recently issued accounting standards:

Title and reference	Prescribed	Commentary
	Effective Date
Accounting Standard Update (“ASU”) No. 2015-11, “Inventory” (Topic 330): Simplifying the Measurement of Inventory.	Fiscal years beginning after December 15, 2016 and for interim periods therein.	In July 2015, the FASB issued ASU No. 2015-11, “Inventory” (Topic 330): Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 simplifies the measurement of inventory by requiring certain inventory to be subsequently measured at the lower of cost and net realizable value. The amendments in this guidance are effective for fiscal years beginning after December 15, 2016 and for interim periods therein and did not have a significant impact on the Company’s consolidated financial statements upon adoption.
ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”	Fiscal years beginning after December 15, 2017 and for interim periods therein.	In May 2014, the FASB issued guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most recent current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also specifies the accounting for certain incremental costs of obtaining a contract and costs to fulfill a contract with a customer. Entities have the option of applying either a full retrospective approach to all periods presented or a modified approach that reflects differences prior to the date of adoption as an adjustment to equity. In April 2015, FASB deferred the effective date of this guidance until January 1, 2018 and the Company is currently assessing the impact of this guidance on its consolidated financial statements.
ASU No. 2014-15, “Presentation of Financial Statements - Going Concern” (Subtopic 205-40): Disclosure of Uncertainty about an Entity's Ability to Continue as a Going Concern.	Fiscal years, and interim periods within those years, beginning on or after December 15, 2016, with early adoption permitted.	In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern” (Subtopic 205-40): Disclosure of Uncertainty about an Entity's Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 provides guidance that establishes management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and setting rules for how this information should be disclosed in the financial statements. Adoption of this new standard did not have a significant impact on the Company’s consolidated financial statements.  See note 1 regarding management’s current disclosures regarding the Company’s ability to continue as a going concern.

ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”)	Fiscal years beginning on or after December 15, 2016, with early adoption permitted.	In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). Topic 740, Income Taxes, requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. Deferred tax liabilities and assets that are not related to an asset or liability for financial reporting are classified according to the expected reversal date of the temporary difference. To simplify the presentation of deferred income taxes, the amendments in ASU 2015-17 require that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position. For public business entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Adoption of ASU 2015-17 did not have a material impact on the Company’s consolidated financial statements.
Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”)	Annual and interim periods within the annual period beginning after December 15, 2018.	In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The amendments in this update create Topic 842, Leases, and supersede the leases requirements in Topic 840, Leases. Topic 842 specifies the accounting for leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The main difference between Topic 842 and Topic 840 is the recognition of lease assets and lease liabilities for those leases classified as operating leases under Topic 840. Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model in Topic 842, the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged from previous GAAP. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for public business entities. Early application of the amendments in ASU 2016-02 is permitted. The Company has not yet determined the impact that adoption of ASU 2016-02 will have on its consolidated financial statements.

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13. Subsequent Events

3 Months Ended

Mar. 31, 2017

Subsequent Events [Abstract]

Subsequent Events

Between April 5, 2017 and April 13, 2017, an additional $0.8 million of Exchange Debentures were converted into 722,126 shares of common stock. Between April 21, 2017 and April 26, 2017, 440 shares of Series H Preferred Stock were converted into 500,000 shares of common stock in accordance with the terms of the Series H Preferred Stock.

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1. Organization and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated interim financial statements should be read in conjunction with the 2016 audited financial statements included in the Company’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (the “SEC”) on April 10, 2017. These condensed consolidated interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC, and therefore omit or condense certain footnotes and other information normally included in consolidated interim financial statements prepared in accordance with U.S. GAAP. All material intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company’s management, the unaudited interim condensed consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) considered necessary for the fair presentation of the financial position and results of operations and cash flows for the interim periods reported herein. The results of operations presented are not necessarily indicative of the results to be expected for any other interim period or for the entire year.

During the three months ended March 31, 2017 and 2016, comprehensive loss was equal to the net loss amounts presented in the accompanying condensed consolidated statements of operations. In addition, certain prior year balances have been reclassified to conform to the current presentation.

Reverse Stock Split

Reverse Stock Split

On February 7, 2017, the Company’s Board of Directors approved an amendment to the Company’s Certificate of Incorporation to effect a 1-for-30 reverse stock split of the Company’s shares of common stock effective on February 22, 2017 (the “Reverse Stock Split”). The stockholders of the Company had approved an amendment to the Company’s Certificate of Incorporation on December 22, 2016 to effect a reverse split of all of the Company’s shares of common stock at a specific ratio within a range from 1-for-10 to 1-for-30, and granted authorization to the Board of Directors to determine in its discretion the specific ratio and timing of the reverse split prior to December 31, 2017.

As a result of the Reverse Stock Split, every 30 shares of the Company’s then outstanding common stock was combined and automatically converted into one share of the Company’s common stock, par value $0.01 per share. In addition, the conversion and exercise prices of all of the Company’s outstanding preferred stock, common stock purchase warrants, stock options and convertible notes payable were proportionately adjusted at the 1:30 reverse split ratio in accordance with the terms of such instruments. Proportionate voting rights and other rights of common stockholders were not affected by the Reverse Stock Split, other than as a result of the rounding up of fractional shares, as no fractional shares were issued in connection with the Reverse Stock Split.

The reverse stock split became effective at the close of business on February 22, 2017 and the Company’s common stock began trading on The NASDAQ Capital Market on a post-split basis on February 23, 2017. The par value and other terms of the common stock were not affected by the Reverse Stock Split. The authorized capital of the Company of 500,000,000 shares of common stock and 5,000,000 shares of preferred stock were also unaffected by the Reverse Stock Split. All share, per share and capital stock amounts for all periods presented have been restated to give effect to the Reverse Stock Split.

Going Concern

Going Concern

The Company’s consolidated financial statements are prepared using U.S. GAAP applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has accumulated significant losses and has negative cash flows from operations, and at March 31, 2017 had a working capital deficit and stockholders’ deficit of $11.7 million and $65.2 million, respectively, which raise substantial doubt about its ability to continue as a going concern. In addition, the Company’s cash position is critically deficient, critical payments are not being made in the ordinary course and certain indebtedness in the amount of $6.0 million matured on March 31, 2017, which the Company does not have the financial resources to satisfy (see note 4), all of which raises substantial doubt about the Company’s ability to continue as a going concern.

The Company is currently executing on a plan of action to reduce the number of laboratory facilities it operates from five such facilities into one, with a corresponding reduction in the number of employees and associated operating expenses, in order to reduce costs. In addition, the Company issued $12.4 million of convertible debentures in the first three months of 2017, for which it received net proceeds of $9.9 million (see note 5), and intends to seek additional financing on similar terms within the next few months. There are currently no commitments for any such funding.

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2. Accounts Receivable (Tables)

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Schedule of accounts receivable

	March 31,			December 31,
	2017			2016
Accounts receivable - laboratory services	$	6,998,918		$	13,220,498
Accounts receivable - all others		732,888			701,583
Total accounts receivable		7,731,806			13,922,081
Less:
Allowance for discounts		(6,089,059	)		(12,103,547	)
Allowance for bad debts		(345,162	)		(350,954	)
Accounts receivable, net	$	1,297,585		$	1,467,580

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3. Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2017

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	March 31,			December 31,
	2017			2016
Medical equipment	$	696,195		$	696,195
Buiding		1,056,000			–
Equipment		490,746			490,746
Equipment under capital leases		4,497,025			4,497,025
Furniture		525,689			525,689
Leasehold improvements		1,335,971			1,335,971
Vehicles		196,534			196,534
Computer equipment		634,237			634,237
Software		1,774,269			1,739,348
		11,206,666			10,115,745
Less accumulated depreciation		(7,612,087	)		(7,019,143	)
Property and equipment, net	$	3,594,579		$	3,096,602

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4. Notes Payable (Tables)

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Schedule of notes payable

	March 31, 2017			December 31, 2016
Loan payable under prepaid forward purchase contract	$	5,000,000		$	5,000,000
Loan payable to TCA Global Master Fund, LP ("TCA") in the original principal amount of $3 million at 16% interest (the "TCA Debenture").  Principal and interest payments due in various installments through September 17, 2017.		2,383,002			3,000,000
Notes payable to CommerceNet and Jay Tenenbaum in the original principal amount of $500,000, bearing interest at 6% per annum (the "Tegal Notes"). Prinicpal and interest payments are due annually from July 12, 2015 through July 12, 2017		341,612			341,612
Other convertible notes payable		–			440,000
Unamortized discount on other convertible notes		–			(179,889	)
Derivative liability associated with the TCA Debenture, at fair value		–			409,524
		7,724,614			9,011,247
Less current portion		(7,724,614	)		(9,011,247	)
Notes payable - third parties, net of current portion	$	–		$	–

Schedule of notes payable - related parties

	March 31, 2017			December 31, 2016
Loan payable to Alcimede LLC, bearing interest at 6% per annum, with all principal and interest due on August 2, 2017	$	168,500		$	218,500
Other advances from related parties		75,000			110,000
		243,500			328,500
Less current portion		(243,500	)		(328,500	)
Total notes payable, related parties	$	–		$	–

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5. Convertible Debentures (Table)

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Convertible Debentures

	March 31, 2017
Convertible Debentures	$	10,850,000
Exchange Debentures		4,671,076
Discount on Debentures		(15,356,925	)
Deferred financing fees		(395,419	)
		(231,268	)
Less current portion		–
Convertible Debentures	$	(231,268	)

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6. Capital Lease Obligations (Tables)

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Schedule of capital leases

	March 31,			December 31,
	2017			2016
Medical equipment	$	4,497,025		$	4,497,025
Less accumulated depreciation		(3,069,139	)		(2,809,511	)
Net	$	1,427,886		$	1,687,514

Aggregate future minimum rentals under capital leases

Year ended December 31,
2017 (April through December)	$	965,811
2018		1,427,375
2019		377,919
2020		32,611
Total		2,803,716
Less interest		144,584
Present value of minimum lease payments		2,659,132
Less current portion of capital lease obligations		1,271,860
Capital lease obligations, net of current portion	$	1,387,272

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7. Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Option activity

	Number of options		Weighted-average exercise price		Weighted-average contractual term
Outstanding at December 31, 2016		709,025	$	129.43		8.93
Granted		–		–
Expired		–		–
Forfeit		–		–
Exercised		–		–
Outstanding at March 31, 2017		709,025	$	129.43		8.68
Exercisable at March 31, 2017		642,357	$	144.53

Warrant activity

	Number of warrants			Weighted average exercise price
Balance at December 31, 2016		1,407,647		$	11.70
Warrants issued during the period		29,284,193		$	1.66
Warrants exchanged for other securities		(96,185	)	$	12.46
Warrants exercised during the period		–		$	–
Warrants expired during the period		–		$	–
Balance at March 31, 2017		30,595,655		$	2.09

Antidilutive Securities

	For the Three Months Ended March 31,
	2017		2016
Warrants		30,595,665		229,952
Convertible preferred stock		595,556		380,766
Convertible debt		10,007,141		293,045
Stock options		709,025		60,756
		41,907,387		964,519

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9. Supplemental Disclosure of Cash Flow Information (Tables)

3 Months Ended

Mar. 31, 2017

Supplemental Cash Flow Elements [Abstract]

Cash Flow Information

	Three Months Ended March 31,
	2017		2016
Cash paid for interest	$	881,457	$	520,000
Cash paid for income taxes	$	296,313	$	–
Non-cash investing and financing activities:
Exchange of preferred stock for convertible debentures and warrants	$	2,695,760	$	–
Exchange of convertible debentures for convertible debentures and warrants	$	2,464,500
Notes payable settled through issuance of common stock	$	440,000	$	–
Debentures converted into common stock	$	486,032	$	–
Conversions of preferred stock into common stock	$	6,280,000	$	–

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11. Segment Information (Tables)

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment information

	Three Months Ended March 31,
	2017			2016
Net revenues - External
Clinical Laboratory Operations	$	767,010		$	1,465,137
Supportive Software Solutions		236,945			230,026
Decision Support and Informatics		172,158			183,650
	$	1,176,113		$	1,878,813
Net revenues - Intersegment
Supportive Software Solutions	$	78,326		$	296,348
	$	78,326		$	296,348
(Loss) income from operations
Clinical Laboratory Operations	$	(1,341,998	)	$	(2,650,540	)
Supportive Software Solutions		(718,546	)		(1,313,313	)
Decision Support and Informatics		(301,001	)		(881,566	)
Hospital Operations		(467,316	)		–
Corporate		(1,804,517	)		(1,952,437	)
Eliminations		7,851			33,660
	$	(4,625,527	)	$	(6,764,196	)
Depreciation and amortization
Clinical Laboratory Operations	$	434,468		$	581,101
Supportive Software Solutions		157,563			164,428
Decision Support and Informatics		8,453			14,527
Corporate		312			875
Eliminations		(7,851	)		(33,661	)
	$	592,945		$	727,270
Capital expenditures
Clinical Laboratory Operations	$	–		$	16,885
Supportive Software Solutions		–			2,117
Hospital Operations		1,090,922			–
	$	1,090,922		$	19,002

	March 31, 2017			December 31, 2016
Total assets
Clinical Laboratory Operations	$	3,568,569		$	4,081,136
Supportive Software Solutions		1,870,578			2,602,428
Decision Support and Informatics		246,930			379,652
Hospital Operations		1,342,804			–
Corporate		3,839,108			2,130,191
Eliminations		(2,786,333	)		(2,711,014	)
	$	8,081,656		$	6,482,393

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1. Organization and Presentation (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Working capital	$ (11,900,000)
Stockholder deficit	(65,332,825)	$ (14,885,896)
Proceeds from convertible debt	9,892,500
Issuance of convertible debentures	$ 12,400,500
Reverse stock split information	1-for-30 reverse stock split effective Feb. 22, 2017

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2. Accounts Receivable (Details - Accounts receivable) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Accounts receivable, gross	$ 7,731,806	$ 13,922,081
Less: Allowance for discounts	(6,089,059)	(12,103,547)
Less: Allowance for bad debts	(345,162)	(350,954)
Accounts receivable, net	1,297,585	1,467,580
Clinical Laboratory Operations [Member]
Accounts receivable, gross	6,998,918	13,220,498
All others [Member]
Accounts receivable, gross	$ 732,888	$ 701,583

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3. Property and Equpment (Details - Equipment) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Property and equipment, gross	$ 11,206,666	$ 10,115,745
Accumulated depreciation	(7,612,087)	(7,019,143)
Property and equipment, net	3,594,579	3,096,602
Medical equipment [Member]
Property and equipment, gross	696,195	696,195
Buildings [Member]
Property and equipment, gross	1,056,000	0
Equipment [Member]
Property and equipment, gross	490,746	490,746
Equipment under capital leases [Member]
Property and equipment, gross	4,497,025	4,497,025
Furniture [Member]
Property and equipment, gross	525,689	525,689
Leasehold Improvements [Member]
Property and equipment, gross	1,335,971	1,335,971
Vehicles [Member]
Property and equipment, gross	196,534	196,534
Computer Equipment [Member]
Property and equipment, gross	634,237	634,237
Software [Member]
Property and equipment, gross	$ 1,774,269	$ 1,739,348

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3. Property and Equipment (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Depreciation	$ 600,000	$ 700,000
Impairment expense	0	$ 0
Hospital Assets [Member]
Property and equipment addition	$ 1,000,000

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4. Notes Payable (Details-Notes Payable) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Notes payable	$ 7,724,614	$ 9,011,247
Less: current portion	(7,724,614)	(9,011,247)
Notes payable, net of current portion	0	0
Unamortized discount	0	(179,889)
Note payable 1 [Member]
Notes payable	5,000,000	5,000,000
TCA Global Master Fund, LP [Member] | Note payable 2 [Member]
Notes payable	2,383,002	3,000,000
Derivative Liability, Fair Value	0	409,524
CommerceNet and Tenenbaum [Member] | Note payable 3 [Member]
Notes payable	341,612	341,612
Former Share holder [Member] | Note payable 4 [Member]
Notes payable	$ 0	$ 440,000

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4. Notes Payable (Details-Notes Payable Related Party) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Note payable related parties	$ 243,500	$ 328,500
Less current portion	(243,500)	(328,500)
Notes payable related parties	0	0
Notes Payable Related Parties [Member] | Alcimede [Member]
Note payable related parties	168,500	218,500
Notes Payable Related Parties [Member] | Related Parties [Member]
Note payable related parties	$ 75,000	$ 110,000

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4. Notes Payable (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Repayment of note payable	$ 616,998	$ 0
Pledged receivables	0	$ 4,300,000
Accrued liabilities for investment return	1,000,000
Accrued liabilities for investment return, current portion	600,000
Former Share holder [Member]
Repayment of note payable	100,000
Loan from related party	75,000
Note payable 2 [Member]
Debt original face amount	$ 3,000,000
Interest rate	16.00%
Maturity date	Sep. 11, 2017
Note payable 2 [Member] | February 7, 2017 [Member]
Repayment of note payable	$ 400,000
Note payable 2 [Member] | March 31, 2017 [Member]
Repayment of note payable	750,000
Note payable 3 [Member]
Debt original face amount	$ 500,000
Interest rate	6.00%
Maturity date	Jul. 12, 2017
September 2016 Notes [Member]
Shares issued in settlement of notes payable, shares	400,000

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5. Convertible Debentures (Details)	Mar. 31, 2017 USD ($)
Notes to Financial Statements
Convertible Debentures	$ 10,850,000
Exchange Debentures	4,671,076
Discount on Debentures	(15,356,925)
Deferred financing fees	(395,419)
Total Convertible Debentures	(231,268)
Less current portion	0
Convertible Debentures	$ (231,268)

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5. Convertible Debentures (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Proceeds from convertible debt	$ 9,892,500
Non-cash interest expense	44,074,628	$ 0
Derivative liabilities	56,046,310		$ 29,401
Gain on change in fair value of derivative liabilities	600,000
Series H Preferred Stock [Member]
Stock exchanged, amount exchanged	2,200,000
Debenture Warrants [Member]
Non-cash interest expense	$ 43,700,000
Stock exchanged, warrants issued	4,871,853
Fair value of warrants	$ 41,300,000
Debentures [Member]
Embedded conversion option, fair value	15,300,000
February Debentures [Member]
Debt face value	1,600,000
Convertible debentures exchanged	(1,500,000)
Convertible Debentures [Member]
Debt face value	$ 10,850,000
Warrants issued	19,608,426
Proceeds from convertible debt	$ 8,400,000
Exchange Debentures [Member]
Warrants issued	4,453,917
Convertible debentures exchanged	$ 2,500,000
Non-cash interest expense	400,000
Stock exchanged, amount issued	2,700,000
Exchange Debentures [Member] | Common Stock [Member]
Stock exchanged, amount exchanged	$ 500,000
Stock exchanged, stock issued	315,171

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6. Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Christopher Diamantis
Advance received from related party	$ 3,300,000
Accrued interest	$ 500,000
Interest rate	10.00%
Christopher Diamantis | 2017 Diamantis Note [Member]
Promissory note	$ 3,800,000
Warrants issued	250,000
Alcimede [Member]
Consulting fees paid	$ 100,000	$ 100,000
Monarch Capital [Member]
Consulting fees paid	$ 60,000	$ 50,000

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7. Capital Lease Obligations (Details-Capital leased assets) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Capital Lease Obligations [Abstract]
Medical equipment	$ 4,497,025	$ 4,497,025
Less accumulated depreciation	(3,069,139)	(2,809,511)
Capital lease obligations	$ 1,427,886	$ 1,687,514

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7. Capital Lease Obligations (Details-Future payments) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
December 31,
2017 (April through December)	$ 965,811
2018	1,427,375
2019	377,919
2020	32,611
Total	2,803,716
Less interest	144,584
Present value of minimum lease payments	2,659,132
Less current portion of capital lease obligations	1,271,860	$ 1,796,053
Capital lease obligations, net of current portion	$ 1,387,272	$ 1,774,121

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8. Stockholders' Equity (Details - Options) - Stock Options [Member] - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Number of options
Options Outstanding, beginning balance	709,025
Forfeited	0
Expired	0
Exercised	0
Options Outstanding, ending balance	709,025	709,025
Options Exercisable	642,357
Weighted average exercise price
Options Outstanding, beginning balance	$ 129.43
Options Outstanding, ending balance	129.43	$ 129.43
Options Exercisable	$ 144.53
Weighted average contractual term
Options Outstanding, ending balance	8 years 8 months 5 days	8 years 11 months 4 days

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8. Stockholders' Equity (Details - Warrant activity) - Warrant [Member]	3 Months Ended
	Mar. 31, 2017 $ / shares shares
Number of warrants
Warrants outstanding, beginning balance | shares	1,407,647
Warrants issued | shares	29,284,193
Warrants exchanged for other securities | shares	(96,185)
Warrants exercised | shares	0
Warrants expired | shares	0
Warrants outstanding, ending balance | shares	30,595,655
Weighted average exercise price
Weighted average exercise price, warrants outstanding, beginning balance | $ / shares	$ 11.70
Weighted average exercise price, warrants issued | $ / shares	1.66
Weighted average exercise price, Warrants exchanged for other securities | $ / shares	12.46
Weighted average exercise price, Warrants exercised | $ / shares	0.00
Weighted average exercise price, Warrants expired | $ / shares	0.00
Weighted average exercise price, warrants outstanding, ending balance | $ / shares	$ 2.09

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8. Stockholders' Equity (Details - Antidilutive shares) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive shares	41,907,387	964,519
Warrant [Member]
Antidilutive shares	30,595,665	229,952
Convertible Preferred Stock [Member]
Antidilutive shares	595,556	380,766
Convertible Debt [Member]
Antidilutive shares	10,007,141	293,045
Stock Options [Member]
Antidilutive shares	709,025	60,756

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8. Stockholders' Equity (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Shares issued in settlement of notes payable, value	$ 440,000	$ 0
Stock-based compensation	35,215	$ 0
Unrecognized compensation costs	$ 300,000
Unrecognized compensation weighted average amortization period	1 year 1 month 13 days
Employee [Member]
Stock issued new, shares	2,778
Warrant Holder [Member]
Common stock issued in exchange for warrants, shares	29,518
Series H Preferred Stock [Member] | Common Stock
Conversion of preferred stock into common stock, shares converted	(6,280)
Conversion of preferred stock into common stock, common stock issued	2,325,929
Series H Preferred Stock [Member] | Exchange Debentures [Member]
Conversion of preferred stock into common stock, shares converted	(2,174)
Conversion of preferred stock into common stock, debentures issued	$ 2,700,000
Exchange Debentures [Member] | Common Stock
Debt exchanged, amount exchanged	$ 500,000
Debt exchanged, shares issued	315,171
Common Stock
Rounding up of common shares in connection with reverse stock split, shares	7,897
Shares issued in settlement of notes payable, shares	400,000
Shares issued in settlement of notes payable, value	$ 4,000

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9. Supplemental Disclosure of Cash Flow Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Supplemental Cash Flow Elements [Abstract]
Cash paid for interest	$ 881,457	$ 520,000
Cash paid for income taxes	296,313	0
Non-cash investing and financing activities:
Exchange of preferred stock for convertible debentures and warrants	2,695,760	0
Exchange of convertible debentures for convertible debentures and warrants	2,464,500	0
Notes payable settled through issuance of common stock	440,000	0
Debentures converted into common stock	486,032	0
Conversions of preferred stock into common stock	$ 6,280,000	$ 0

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10. Commitments and Contingencies (Details Narrative)	3 Months Ended
	Mar. 31, 2017 USD ($)
Former Employees [Member]
Settlement payable	$ 300,000
Tetra [Member]
Settlement payable	1,900,000
Payments of litigation settlement	700,000
DeLage Landen Financial [Member]
Settlement payable	1,000,000
Florida DOR [Member]
Income tax penalties and interest paid	250,000
Income tax penalties and interest accrued	$ 900,000

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11. Segment Reporting (Details-Operations) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net revenues - External	$ 1,176,113	$ 1,878,813
Net revenues - Inter Segment	78,326	296,348
(Loss) income from operations	(4,625,527)	(6,764,196)
Depreciation and amortization	592,945	727,270
Capital expenditures	1,090,922	19,002
Clinical Laboratory Operations [Member]
Net revenues - External	767,010	1,465,137
(Loss) income from operations	(1,341,998)	(2,650,540)
Depreciation and amortization	434,468	581,101
Capital expenditures	0	16,885
Supportive Software Solutions [Member]
Net revenues - External	236,945	230,026
Net revenues - Inter Segment	78,326	296,348
(Loss) income from operations	(718,546)	(1,313,313)
Depreciation and amortization	157,563	164,428
Capital expenditures	0	2,117
Decision Support and Informatics Operations [Member]
Net revenues - External	172,158	183,650
(Loss) income from operations	(301,001)	(881,566)
Depreciation and amortization	8,453	14,527
Hospital Operations [Member]
(Loss) income from operations	(467,316)	0
Capital expenditures	1,090,922	0
Corporate [Member]
(Loss) income from operations	(1,804,517)	(1,952,437)
Depreciation and amortization	312	875
Eliminations [Member]
(Loss) income from operations	7,851	33,660
Depreciation and amortization	$ (7,851)	$ (33,661)

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11. Segment Reporting (Details-Assets) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Total assets	$ 8,312,924	$ 6,482,393
Eliminations [Member]
Total assets	(2,786,333)	(2,711,014)
Clinical Laboratory Operations [Member]
Total assets	3,568,569	4,081,136
Supportive Software Solutions [Member]
Total assets	1,870,578	2,602,428
Decision Support and Informatics Operations [Member]
Total assets	246,930	379,652
Hospital Operations [Member]
Total assets	1,342,804
Corporate [Member]
Total assets	$ 3,839,108	$ 2,130,191