Quarterly Report (10-q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

———————

FORM 10-Q

———————

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

For the quarterly period ended: June 30, 2014

[ ] 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: 333-191564

———————

Integrated Inpatient Solutions, Inc.

(Exact name of registrant as specified in its charter)

———————

N/A

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

Indicate by check mark if the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 [x]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [x] No [ ]

Indicate by check mark if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-K is not contained in this form, and no disclosure will be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [x]

Indicate by check mark whether the registrant is a large accelerated filer, a non-accelerated filer, or a smaller reporting company, See the definition 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	[ ]	Smaller reporting company	[x]

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

Yes [ ] No [x]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class

Outstanding at

August 12, 2014

Common Stock

54,012,365

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION		PAGE

ITEM 1.	FINANCIAL STATEMENTS	1

	CONDENSED BALANCE SHEETS	1

	CONDENSED STATEMENTS OF OPERATIONS (Unaudited)	2

	CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)	3

	NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited)	4

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	11

ITEM 4.	CONTROLS AND PROCEDURES	13

PART II – OTHER INFORMATION

ITEM 1.	LEGAL PROCEEDINGS	14

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	15

ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	15

ITEM 4.	MINE SAFETY DISCLOSURES

ITEM 5.

OTHER INFORMATION

ITEM 6.

EXHIBITS

EXPLANATORY NOTE

As used in this Quarterly Report on Form 10-Q (“Form 10-Q”), unless the context requires otherwise, “we,” “our,” “us” or the “Company” refers to Integrated Inpatient Solutions, Inc. Pursuant to Item 10(f) of Regulation S-K promulgated under the Securities Act of 1933, as amended (the “Securities Act”), we have elected to comply with the scaled disclosure requirements applicable to “smaller reporting companies” throughout this Form 10-Q. Except as specifically included in this Form 10-Q, items not required by the scaled disclosure requirements have been omitted.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

All statements contained in this Form 10-Q, other than statements that relate to present or historical conditions, are forward-looking statements, including, but not limited to, statements containing the words “believe,” “anticipate,” “expect” and words of similar import and are intended to be made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on certain assumptions and analyses made by us in light of our assessment of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved, or whether such performance or results will be achieved at all. Forward-looking information is based on information available at the time and/or management’s good faith belief with respect to future events, and is subject to risks and uncertainties that could cause our actual performance or results to differ materially from those expressed in the statements. Important factors that could cause such differences include, but are not limited to: (i) our ability to continue as a going concern; (ii) our ability to raise additional financing on acceptable terms, or at all; (iii) industry competition, conditions, performance and consolidation; (iv) the effects of adverse general economic conditions, both within the United States and globally and the availability of debt and equity financing in view of the current economy; (v) any adverse economic or operational repercussions from terrorist activities, war or other armed conflicts; (vi) new product development and introduction in light of our lack of adequate financing; (vii) changes in business strategy or development plans; (viii) the ability to attract and retain qualified personnel; and (ix) the ability to protect our technology, among others.

Consequently, all of the forward-looking statements made in this Form 10-Q are qualified by these cautionary statements and there can be no assurance that the actual results anticipated by management will be realized or, even if substantially realized, that they will have the expected consequences to or effects on our business operations.

Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect thereto or with respect to other forward-looking statements.

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Integrated Inpatient Solutions, Inc.
Condensed Balance Sheets

	June 30,		December 31,
	2014		2013
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash	$	443,319	$	538,633
Accounts receivable, net		9,549		—
Refundable income taxes		196,661		121,677
Total current assets		649,529		660,310

Property and equipment, net		1,185		3,567

Other assets
Deposits		954		954
TOTAL ASSETS	$	651,668	$	664,831


LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	52,707	$	51,407
Deferred revenue		28,200		—
Liabilities from discontinued operation		109,379		119,379
Total current liabilities		190,286		170,786

TOTAL LIABILITIES		190,286		170,786

Commitments and Contingencies (See Note 5)

Stockholders’ Equity
Preferred stock, $0.0001 par value, 10,000,000 shares authorized,
250,000 shares issued and outstanding as of June 30, 2014 and
December 31, 2013, respectively		25		25
Common stock, $0.0001 par value, 300,000,000 shares authorized,
54,012,365 and 48,612,365 shares issued and outstanding as of June 30,
2014 and December 31, 2013, respectively.		5,401		4,861
Additional paid-in capital		185,714		137,114
Retaining earnings		270,242		352,045
Total Stockholders’ Equity		461,382		494,045

Total Liabilities and Stockholders' Equity	$	651,668	$	664,831

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

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Integrated Inpatient Solutions, Inc.
Condensed Statement of Operations
(Unaudited)

	Three months ended June 30,						Six months ended June 30,
	2014			2013			2014			2013
					(Restated)						(Restated)
Revenue	$	59,280			2,162		$	99,420		$	2,162
Cost of services		43,065			—			53,689			5,741
Gross Income (Loss)		16,215			2,162			45,731			(3,579	)
Operating expenses
General and administrative		120,544			111,793			202,822			196,177
Loss from continuing operations		(104,329	)		(109,631	)		(157,091	)		(199,756	)
Benefit from income taxes on continuing operations		37,950			36,710			74,984			71,134
Interest Income		149			6			304			7
Loss from continuing operations		(66,230	)		(72,915	)		(81,803	)		(128,615	)
Discontinued operations:
Loss from discontinued operations		—			(147,541	)		—			(328,031	)
Benefit from income taxes		—			49,407			—			116,816
Income (loss) on discontinued operations		—			(98,134	)		—			(211,215	)
Net loss	$	(66,230	)	$	(171,049	)	$	(81,803	)	$	(339,830	)
Net loss per share - basic
Loss from continuing operations	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Loss from discontinued operations		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Net income (loss) per share - basic	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	0.00
Net loss per share - diluted
Loss from continuing operations	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Loss from discontinued operations		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Net loss per share - diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	0.00
Weighted average number of common shares outstanding - basic
		49,799,178			48,612,365			49,209,050			48,612,365
Weighted average number of common shares outstanding - diluted
		49,799,178			48,612,365			49,209,050			48,612,365

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

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Integrated Inpatient Solutions, Inc.
Condensed Statements of Cash Flows
(Unaudited)
	Six months ended
	June 30,
	2014			2013
					(Restated)

Cash Flow from Operating Activities
Net Loss	$	(81,803	)	$	(128,615	)
Plus loss from discontinued operations, net of income taxes		—			(211,215	)
Loss from continuing operations, net of income taxes		(81,803	)		(339,830	)

Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation		2,382			5,871
Provision for doubtful accounts		5,881			—
Stock issued for services		49,140			—
Changes in assets and liabilities:
Accounts receivable		(15,430	)		—
Refundable income taxes		(74,984	)		(187,950	)
Accounts payable and accrued liabilities		1,300			11,443
Deferred revenue		28,200			—
Net cash used in operating activities from continuing operations		(85,314	)		(170,636	)
Net cash used in operating activities from discontinued operations		(10,000	)		34,687
Net cash used in operating activities		(95,314	)		(135,949	)

Net decrease in cash		(95,314	)		(475,779	)

Cash - Beginning of year		538,633			927,895
Cash - End of the period	$	443,319		$	452,116

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

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Integrated Inpatient Solutions, Inc.

Notes to Condensed Financial Statements

June 30, 2014

(Unaudited)

NOTE 1 – ORGANIZATION AND BUSINESS ACTIVITY

The Company was incorporated in Florida on July 31, 2001. On September 21, 2001 the Company was acquired by PlaNet.Com, Inc., a Nevada public, non-reporting corporation. Pla.Net.Com, Inc. was considered a shell at the time of acquisition and therefore the acquisition was treated as a reverse merger (the acquired company is treated as the acquiring company for accounting purposes). Pla.Net.Com, Inc. changed its name to Inpatient Clinical Solutions, Inc. immediately after the merger.

Through March 2013, the Company provided health care services in South Florida. The Company provided inpatient physician care to various health care facilities and health plans in the South Florida area. Prior to February 2012, the Company provided Hospitalist services at acute care hospitals. Hospitalists focus on a patient’s care from the time of admission to discharge, working in close consultation with primary care physicians, other referring physicians and medical providers to coordinate the inpatient care delivery system and manage the entire inpatient episode of care.

The Company sold the hospitalist business during February 2012. At that time, the Company changed its name from Inpatient Clinical Solutions, Inc. to Integrated Inpatient Solutions, Inc. In November 2011, the Company entered into an agreement with a hospital to provide intensivist services. Under the exclusive agreement, the Company provided critical care intensivist coverage for all medical and surgical intensive care unit patients at the hospital. The physicians included full-time employees, part-time and temporary physicians as well as contracted physician providers. The intensivist agreement was terminated in January 2013.

The Company now provides interior design services targeting budget minded individuals. The business operates under the trade name Integrated Interior Design. The Company earns revenues from providing decorator services which are billed on hourly and per diem rates. The interior design business currently operates in South Florida and will expand regionally and nationally. The business provides interior design, interior staging, accompanied shopping, paint color selection, architectural drawing and other design services.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Section 107 of the JOBS Act also provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We are choosing to take advantage of the extended transition period for complying with new or revised accounting standards. As a result, our financial statements may not be comparable to those of companies that comply with public company effective dates.

BASIS OF PRESENTATION

The unaudited interim financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation SX. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.

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BASIS OF PRESENTATION (continued)

The financial information furnished herein reflects all adjustments, consisting of normal recurring items that, in the opinion of management, are necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods. The results of operations for the six months ended June 30, 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014.

Use of Estimates

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The areas involving the most significant use of estimates include legal contingencies, deferred tax benefits, refundable income taxes, estimated realizable value of accounts receivable, and payables for known claims and liabilities for claims incurred but not reported (IBNR) related to medical malpractice. These estimates are based on knowledge of current events and anticipated future events. The Company adjusts these estimates each period as more current information becomes available. The impact of any changes in estimates is included in the determination of earnings in the period in which the estimate is adjusted. Actual results may ultimately differ materially from those estimates.

Cash

The Company considers cash in banks and other highly liquid investments with insignificant interest rate risk and maturities of three months or less at the time of acquisition to be cash and cash equivalents. At June 30, 2014 and December 31, 2013, the Company had no cash equivalents. The Company maintains cash accounts in financial institutions that are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”). Deposits in excess of the FDIC insurance amount of $250,000 totaled approximately $150,000 and $245,000 at June 30, 2014 and December 31, 2013, respectively.

Accounts Receivable

Accounts receivable represent amounts due from customers for design services. Accounts receivable are recorded and stated at the amount expected to be collected and reflect an allowance for uncollectible amounts of $5,881 at June 30, 2014. The Company had no accounts receivable at December 31, 2013.

Property and Equipment

Property and equipment are recorded at cost and depreciated on a straight-line basis over the estimated useful life of the asset. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred.

Impairment of Long-Lived Assets

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company determined that there were no impairments of long-lived assets as of June 30, 2014 and December 31, 2013.

Fair Value of Financial Instruments

U.S. GAAP for fair value measurements establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three levels. The fair value hierarchy gives the highest priority to quoted market prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Level 2 inputs are inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.

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The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, deposits, accounts payable and accrued liabilities, approximate their fair values because of the short maturity of these instruments.

Revenue Recognition

Interior Design - The Company follows ASC 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when it has persuasive evidence of an arrangement that the services have been rendered to the customer, the sales price is fixed or determinable, and collectability is reasonably assured.

Income Taxes

The Company follows Section 740-10-30 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Operations in the period that includes the enactment date.

The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”). Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of Section 740-10-25.

Earnings (Loss) Per Share

The Company computes earnings (loss) per share in accordance with the provisions of FASB ASC Topic 260, "Earnings Per Share," which specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. Basic earnings (loss) per share are computed by dividing net earnings (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share are computed assuming the exercise of dilutive stock options under the treasury stock method and the related income tax effects. Accordingly, for purposes of dilutive earnings per share, the Company excluded the convertible preferred stock.

As of June 30, 2014 and 2013, we had 250,000 shares of Convertible Preferred Stock outstanding convertible into 2,500,000 common shares.

Recent Accounting Pronouncements

There have been no accounting pronouncements or changes in accounting pronouncements during the six months ended June 30, 2014 that are expected to have a material impact on the Company’s financial position, results of operations or cash flows. Accounting pronouncements that became effective during the six months ended June 30, 2014 did not have a material impact on disclosures or on the Company’s financial position, results of operations or cash flows.

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NOTE 3 - PROPERTY AND EQUIPMENT

The Company’s property and equipment consisted of the following at June 30, 2014 and December 31, 2013:

					Estimated
		2014		2013	Useful Life
Computer and Office Equipment	$	33,868	$	33,868	5 -7 years
Furniture and Fixtures		18,530		18,530	7 years
	$	52,398	$	52,398
Less: Accumulated Depreciation		(51,213)		(48,831)
	$	1,185	$	3,567

Depreciation expense for the six month period ended June 30, 2014 and 2013 was $2,382 and $5,871, respectively.

NOTE 4 - STOCKHOLDERS' EQUITY

Preferred Stock

The Company has 10,000,000 authorized shares of non-redeemable, convertible preferred stock with a par value of $.0001. Each share of preferred stock is convertible to 10 shares of common stock.

Common Stock

On June 10, 2014 the Company issued 2,700,000 shares of common stock to an employee for services with a fair value of $24,570.

On June 10, 2014 the Company issued 2,700,000 shares of common stock to a non-related party for services with a fair value of $24,570.

NOTE 5 - COMMITMENT AND CONTINGENCIES

Commitment

In April 2013, the Company entered into a new one year office lease agreement at $450 per month, the lease expired in May 2014. The office space is now being occupied on a month to month basis. Total rent expense for the six months ended June 30, 2014 was $2,385 and $7,866, respectively.

Contingencies

While providing healthcare services in the ordinary course of our business, the Company became involved in lawsuits and legal proceedings involving claims of medical malpractice related to medical services provided by our affiliated physicians. The Company is currently involved in the settlement stages of one such matter. The accompanying financial statements include an accrual of $50,000 for this matter under the caption liabilities from discontinued operations. This accrual represents the Company’s anticipated deductible on the settlement. The details of this settlement are described more fully below.

Edra Schwartz as the Personal Representative of the Estate of Robert A. Schwartz, Deceased, v. Jason Strong, M.D., Aretha Nelson, M.D. and Inpatient Clinical Solutions, Inc . - This matter involves a 66 year old white male who developed a MRSA (methicillin-resistant staphylococcus aureus) infection following a craniotomy to remove a suspected meningioma. The mater alleges (1) Failure to properly interpret the brain MRIs preoperatively (this is directed at the radiologist preoperatively); and (2) Failure to diagnose a MRSA infection and brain abscess following the craniotomy on May 6, 2009. The patient died on September 24, 2009. The suit commenced October 18, 2011 and the case is pending in the circuit court of the 17 Judical Circuit in and for Broward County, FL, Case # 11-10485. The claim is for unspecified monetary damages. The Company is defending this case vigorously and, while the claims for damages have not been quantified, the Company does not believe that a negative decision would have a material impact on the Company.

NOTE 5 - COMMITMENT AND CONTINGENCIES (continued)

In November 2011, the Company became involved in a legal settlement relating to a malpractice claim for $100,000. As a result of the settlement agreement, the Company agreed to pay a total amount of $100,000. As of June 30, 2014 and December 31, 2013, the remaining balance is approximately $59,000 which is due in equal yearly installments of $20,000 over the next four years. The Company made payments of $10,000 on this obligation during the six month period ended June 30, 2014.

The accrued legal settlements are presented as liabilities from discontinued operation in the accompanying balance sheets (see Note 7).

The Company is currently not aware of any other such legal proceedings or claims that they believe will have, individually or in the aggregate, a material adverse affect on its business, financial condition or operating results except for the items described above and in Note 9 Subsequent Events. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm its business.

Regulatory Matters

Laws and regulations governing the Medicare and Medicaid programs are complex and subject to interpretation. Compliance with such laws and regulations can be subject to future government review and interpretation as well as significant regulatory action including fines, penalties, and exclusion from the Medicare and Medicaid programs. We believe that we are in compliance with all applicable laws and regulations. We are not aware of any specific investigations involving allegations of potential wrongdoing.

NOTE 6 – CONCENTRATIONS

Geographic and Employment

Our operations are concentrated in the South Florida region. We are reliant on the services of two full time employees, one who runs management and operations of the Company and one interior designer.

Revenue and Accounts Receivable

During the six months ended June 30, 2014, 54% of revenues were derived from three customers at 34%, 11% and 9%.

At June 30, 2014, 64% of accounts receivable were derived from three customers at 29%, 21% and 14%.

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NOTE 7 - Discontinued Operations

In March 2013, management decided to exit the health care provider business and change the Company's strategy in order to focus on its interior design business. Accordingly, the financial statements have been presented in accordance with ASC 205-20, Discontinued Operations .

The following table illustrates the reporting of the discontinued operations included in the Statements of Operations for the six months ended June 30, 2014 and 2013:


	Six Months Ended June 30,
	2014		2013
				(restated)
Patient Service Revenue (net of contractual
allowances and discounts)	$	—	$	109,463

Operating expenses:
Cost of services-physicians		—		225,964
General and administrative		—		211,530
Total operating expenses		—		437,494

Benefit from income taxes		—		116,816

Loss on discontinued operations	$	—	$	(211,215	)

As of June 30, 2014 and December 31, 2013, liabilities from discontinued operations are listed below:

		June 30, 2014				December 31, 2013
Accrued legal settlements		$	109,379			$	119,379

NOTE 8 – RESTATEMENT OF PRIOR YEARS COMPARATIVE FINANCIAL STATEMENTS

The Company made adjustments to the condensed statement of operations and condensed statement of cash flows as of June 30, 2013. The adjustment of $187,950 appears as benefit from income taxes in the condensed statement of operations and refundable income taxes in the condensed statement of cash flows. This adjustment reflects the tax benefit from net operating losses which were not previously recorded. The Company originally treated these amounts as fully reserved deferred tax assets. Under FASB ASC 740 an asset is recognized for the amount of refundable income taxes and the anticipated claim for refund is reported as a tax benefit in the statement of income. In accordance with ASC 740, the statements have been restated to reflect the tax benefit.

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NOTE 9 – SUBSEQUENT EVENTS

On July 14, 2014, the holders of 52.5% of the Company’s outstanding Common Stock voted to amend the Company’s Certificate of Incorporation to increase the total number of shares of all classes of stock. Under the amendment, the total number of shares outstanding was increased from 110,000,000 shares to 310,000,000 shares comprised of 300,000,000 shares of Common Stock and 10,000,000 shares of Preferred Stock. The number of shares previously authorized was 110,000,000 comprised of 100,000,000 shares of Common Stock and 10,000,000 shares of preferred stock. The par value of both the Common and Preferred shares remained unchanged at $0.0001 per share. This amendment was effective as of July 17, 2014.

On July 7, 2014, the Company received notification that one of the hospitalist physicians may be named in a lawsuit. Because this matter is in the early stages, the claim for damages, if any, has not yet been determined. Legal council has been retained by the Company’s insurance carrier.

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

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes that appear elsewhere in this report and in our Annual Report on Form 10-K for the year ended December 31, 2013.

Cautionary Statement Regarding Forward-Looking Statements

This report may contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act, and we intend that such forward-looking statements be subject to the safe harbors created thereby. These forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Any such forward-looking statements would be contained principally in “Management’s Discussion and Analysis or Plan of Operations” and “Risk Factors.” Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities and the effects of regulation. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “hopes,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would” or similar expressions.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. We discuss many of these risks in greater detail in “Risk Factors.” Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this report. You should read this report and the documents that we reference in this report and have filed as exhibits to the report completely and with the understanding that our actual future results may be materially different from what we expect. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Overview

In Spring 2013 we ceased operating in the health care industry and launched an interior design business targeting budget minded individuals. The business operates under the trade name Integrated Interior Design. We have already begun generating revenues from providing decorator services, which are billed on hourly and per diem rates. The business is operating in South Florida and will expand regionally and nationally. The business provides interior design, interior staging, accompanied shopping, paint color selection, architectural drawing and other services.

Our internet site, www.IntegratedInteriorDesigns.com officially launched on June 1, 2013.

Critical Accounting Policies

Accounts Receivable

The Company had substantially no accounts receivable from customers at December 31, 2013. At June 30, 2014 accounts receivable, net was $9,549.

The determination of contractual and bad debt allowances constitutes a significant estimate. Accounts receivable represent amounts due from customers for design services. Accounts receivable are recorded and stated at the amount expected to be collected and have been adjusted to reflect the allowance for uncollectible amounts of approximately $5,881 at June 30, 2014.

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Revenue Recognition

Income Taxes

Liquidity and Capital Resources

As of June 30, 2014, we had total current assets of $649,529, consisting primarily of $443,319 in Cash and $196,661 in Refundable Income Taxes. We had total current liabilities as of June 30, 2014 of $190,286.

We believe that we have sufficient capital to cover all anticipated operations during the next twelve months: cash on hand was $443,319 of June 30, 2014. Additionally, we are generating revenue from our interior design services. We believe that these amounts are adequate to fund the company’s current projected capital requirements for at least twelve months. We do not presently have any material commitments for capital expenditures.

The Company does not expect to purchase any plant or significant equipment over the next 12 months.

We do not have any formal commitments or arrangements for the sales of stock or the advancement or loan of funds at this time. If we need to raise additional capital, there can be no assurance that such additional financing will be available to us on acceptable terms, or at all. If we are unsuccessful at raising sufficient capital to fund our operations, for whatever reason, we may be forced to seek opportunities outside of our new corporate focus or to seek a buyer for our business or another entity with which we could partner. Ultimately, if all of these alternatives fail, we may be required to cease operations and seek protection from creditors under applicable bankruptcy laws.

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Results of Operations for the Three Months Ended June 30, 2014 and 2013

During the quarter ended June 30, 2014 we generated revenue of $59,280 compared to revenue of $2,162 in the quarter ended June 30, 2013 from our current operations. During the quarter ended June 30, 2014 the company incurred $43,065 in Cost of Services compared to no cost during the same period in 2013. Our gross margin for the quarter ended June 30, 2014 was 27.4%. The increase in Cost of Services in 2014 is directly attributable to the increase in our revenue.

All operating expenses during both periods consisted of General and Administrative expenses, which totaled $120,544 during the quarter ended June 30, 2014 which increased from $111,793 during the same period in 2013. During the quarter ended June 30, 2014 we suffered a loss from continuing operations of $66,230, which was a decrease from $72,915 during the same period in 2013. Also, during the quarter ended June 30, 2013 we suffered a loss on discontinued operations of $98,134. We had no loss on discontinued operations during the quarter ending June 30, 2014. In total, we incurred a net loss during the quarter ended June 30, 2014 of $66,230 as opposed to incurring a net loss of $171,049 during the quarter ended June 30, 2013.

Results of Operations for the Six Months Ended June 30, 2014 and 2013

During the six months ended June 30, 2014 we generated revenue of $99,420 compared to revenue of $2,162 in the six months ended June 30, 2013 from our current operations. During the six months ended June 30, 2014, the Cost of Services was $53,689, which was an increase of $47,948 from the Cost of Services during the same period in 2013, which totaled $5,741. Our gross margin for the six month period ended June 30, 2014 was 46%. The increase in Cost of Services in 2014 is directly attributable to the increase in our revenue.

All operating expenses during both periods consisted of General and Administrative expenses, which totaled $202,822 during the six months ended June 30, 2014 which increased from $196,177 during the same period in 2013. During the six months ended June 30, 2014 we suffered a loss from continuing operations of $81,803, which was a decrease from $128,615 during the same period in 2013. Also, during the six months ended June 30, 2013 we suffered a loss on discontinued operations of $211,215. We had no loss on discontinued operations during the six months ending June 30, 2014. In total, we incurred a net loss during the six months ended June 30, 2014 of $81,803 as opposed to incurring a net loss of $339,830 during the six months ended June 30, 2013.

Off Balance Sheet Arrangements

As of June 30, 2014, there were no off balance sheet arrangements.

Recent Accounting Pronouncements

We do not expect the adoption of any recent accounting pronouncements to have a material effect on our financial statements.

ITEM 4. CONTROLS AND PROCEDURES

In connection with the preparation of this quarterly report on Form 10-Q, an evaluation was carried out by our management, with the participation of the Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 ("Exchange Act")) as of June 30, 2014. Disclosure controls and procedures are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, to allow timely decisions regarding required disclosures.

Based on that evaluation, our management concluded, as of the end of the period covered by this report, that our disclosure controls and procedures were effective in recording, processing, summarizing, and reporting information required to be disclosed, within the time periods specified in the SEC's rules and forms.

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Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)) during the quarter ended June 30, 2014 that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In the ordinary course of the Company’s business in the health care industry, the Company became involved in lawsuits and legal proceedings involving claims of medical malpractice related to medical services provided by the Company’s affiliated physicians. The Company is currently involved in one such matter where the claim could exceed insurance coverage and is awaiting mediation to be scheduled in the matter.

Edra Schwartz as the Personal Representative of the Estate of Robert A. Schwartz, Deceased, v. Jason Strong, M.D., Aretha Nelson, M.D. and Inpatient Clinical Solutions, Inc.

This matter involves a 66 year old white male who developed a MRSA (methicillin-resistant staphylococcus aureus) infection following a craniotomy to remove a suspected meningioma. Preoperatively the MRIs were interpreted as revealing a meningioma, but the craniotomy revealed a lymphoma-type tumor. Postoperatively, the patient developed a brain abscess that required drainage. The case involves multiple Defendants and the Plaintiff’s two basic allegations are: (1) Failure to properly interpret the brain MRIs preoperatively (this is directed at the radiologist preoperatively); and (2) Failure to diagnose a MRSA infection and brain abscess following the craniotomy on May 6, 2009. The patient died on September 24, 2009. The suit commenced October 18, 2011 and the case is pending in the circuit court of the 17 Judicial Circuit in and for Broward County, FL, Case # 11-10485. The claim is for unspecified monetary damages. The Company is defending this case vigorously and, while the claims for damages have not been quantified, the Company does not believe that a negative decision would have a material impact on the Company.

On July 7, 2014, we received notification that one of our former hospitalist physicians may be named in a lawsuit. Because this matter is in the early stages, the claim for damages, if any has not yet been determined. Our insurance carrier has retained legal counsel for this matter.

We are not aware of any other pending or threatened litigation against us that we expect will, individually or in the aggregate, have a material adverse effect on our business, financial condition, liquidity, or operating results. We cannot assure you that we will not be adversely affected in the future by legal proceedings.

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

Effective June 10, 2014 the Company issued restricted shares of its common stock as follows:

2,700,000 shares of common stock were issued to Billy A. Bloom for services rendered. The Company and Mr. Bloom agreed that the shares had a value of $2,700. The Company subsequently recorded the issuance of these shares in its financial statements as having a fair value of $24,570 ($0.0091 per share).

2,700,000 shares of common stock were issued to James Dodrill for legal services rendered. The Company and Mr. Dodrill agreed that the shares had a value of $2,700. The Company subsequently recorded the issuance of these shares in its financial statements as having a fair value of $24,570 ($0.0091 per share).

The Company relied on Section 4(2) of the Securities Act for both of these issuances as each recipient is a sophisticated, accredited investor who had access to the current information regarding the Company as well as the ability to ask questions of management of the Company.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS

Exhibit No. Description

3.1(a)# Articles of Incorporation of the Company.

3.1(b) * Articles of Amendment of Articles of Incorporation.

3.1(c)* Articles of Amendment of Articles of Incorporation.

3.1(d)* September 2001 Consent of Board of Directors establishing preferred stock.

3.2# Bylaws of the Company.

10.1* Asset Purchase Agreement.

10.2* Bill of Sale, Assignment and Assumption Agreement.

10.3* Seller Noncompetition Agreement.

10.4* Owner Noncompetition Agreement.

10.5* Owner Consulting Agreement.

31.1 Certification of Chief Executive Officer pursuant to Rule 13a-14 or 15d-14 of the Securities Exchange Act of 1934, as adopted pursuant to section 302 of the Sarbanes-Oxley act of 2002 .

31.2 Certification of Chief Financial Officer pursuant to Rule 13a-14 or 15d-14 of the Securities Exchange Act of 1934, as adopted pursuant to section 302 of the Sarbanes-Oxley act of 2002 .

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 .

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.

#Filed in the Registrant’s Registration Statement on Form S-1 on October 4, 2014.

*Filed in the Amendment 1 to the Registrant’s Registration Statement on Form S-1 on January 3, 2014.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf by the undersigned, thereunto duly authorized.

	Integrated Inpatient Solutions, Inc.

Date: August 14, 2014	By:	/s/ Osnah Bloom
		Osnah Bloom Principal Executive Officer and Principal Financial Officer