CDIX Cardiff Lexington Corporation (PK)

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

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

 

For the quarterly period ended: September 30, 2024

 

or

 

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

 

For the transition period from ____________ to _____________

 

Commission File Number: 000-49709

 

CARDIFF LEXINGTON CORPORATION

(Exact name of registrant as specified in its charter)

 

Nevada		84-1044583
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

 

3753 Howard Hughes Parkway, Suite 200, Las Vegas, NV		89169
(Address of principal executive offices)		(Zip Code)

 

844-628-2100

(Registrant’s telephone number, including area code)

 

N/A

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

 

Securities registered pursuant to Section 12(b) of the Act: None

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒      No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒      No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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.

 

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging growth company ☐

 

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. ☐

 

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

 

As of November 5, 2024, there were 15,036,725 shares of common stock of the registrant issued and outstanding.

 

 

CARDIFF LEXINGTON CORPORATION

 

Quarterly Report on Form 10-Q

Period Ended September 30, 2024

 

TABLE OF CONTENTS

 

PART I
FINANCIAL INFORMATION
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	47
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	57
Item 4.	Controls and Procedures	57
PART II
OTHER INFORMATION
Item 1.	Legal Proceedings	59
Item 1A.	Risk Factors	59
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	59
Item 3.	Defaults Upon Senior Securities	59
Item 4.	Mine Safety Disclosures	59
Item 5.	Other Information	59
Item 6.	Exhibits	61

 

 

 

 

 

 

 

 

PART I

FINANCIAL INFORMATION

 

ITEM 1.

FINANCIAL STATEMENTS.

 

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

		Page
Condensed Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023 (restated)		4
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited and restated)		5
Condensed Consolidated Statements of Stockholders’ Equity (Deficit) for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited and restated)		6
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (Unaudited)		9
Notes to Condensed Consolidated Financial Statements (Unaudited and restated)		10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2024 (UNAUDITED) AND DECEMBER 31, 2023

 

		September 30, 2024				December 31, 2023 (Restated)
ASSETS
Current assets
Cash		$	1,949,600			$	866,943
Accounts receivable-net			14,798,220				13,305,254
Prepaid and other current assets			5,000				5,000
Total current assets			16,752,820				14,177,197
Property and equipment, net			24,563				34,661
Land			540,000				540,000
Goodwill			5,666,608				5,666,608
Right of use - assets, net			465,389				289,062
Due from related party			4,979				4,979
Other assets			60,403				33,304
Total assets		$	23,514,762			$	20,745,811
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expense		$	1,386,412			$	2,047,131
Accrued expenses - related parties			4,353,056				4,733,057
Accrued interest			361,172				620,963
Right of use – lease liabilities			227,606				157,669
Due to director and officer			–				120,997
Notes payable – current portion			500,826				15,977
Line of credit			7,468,971				2,120,100
Convertible notes payable, net of debt discounts of $0 and $24,820, respectively			105,000				3,807,030
Net liabilities of discontinued operations			237,643				237,643
Total current liabilities			14,640,686				13,860,567
Notes payable			140,272				144,666
Operating lease liability – long term			236,853				119,056
Total liabilities			15,017,811				14,124,289
Mezzanine equity
Redeemable Series N Senior Convertible Preferred Stock - 3,000,000 shares authorized, $0.001 par value, stated value $4.00, 868,056 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively			3,230,023				3,891,439
Redeemable Series R Senior Convertible Preferred Stock - 5,000 shares authorized, $0.001 par value, stated value of $1,200, 0 and 165, shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively			–				307,980
Redeemable Series X Senior Convertible Preferred Stock - 5,000,000 shares authorized, $0.001 par value, stated value of $4.00 par value; 375,000 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively			1,537,808				1,690,685
Total Mezzanine Equity			4,767,831				5,890,104
Stockholders' equity
Series B Preferred Stock - 3,000,000 shares authorized, $0.001 par value, stated value of $4.00, 753,929 and 2,139,478 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively			3,015,716				8,557,912
Series C Preferred Stock - 500 shares authorized, $0.001 par value, stated value of $4.00, 43 and 123 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively			172				492
Series E Preferred Stock - 1,000,000 shares authorized, $0.001 par value, stated value $4.00, 75,375 and 155,750 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively			301,500				623,000
Series F-1 Preferred Stock - 50,000 shares authorized, $0.001 par value, stated value $4.00, 9,500 and 35,752 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively			38,000				143,008
Series I Preferred Stock - 15,000,000 shares authorized, $0.001 par value, stated value $4.00, 11,540,500 and 14,885,000 issued and outstanding at September 30, 2024 and December 31, 2023, respectively			46,162,000				59,540,000
Series J Preferred Stock - 2,000,000 shares authorized, $0.001 par value, stated value $4.00, 0 and 1,713,584 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively			–				6,854,336
Series L Preferred Stock - 400,000 shares authorized, $0.001 par value, stated value $4.00, 319,493 shares issued and outstanding at September 30, 2024 and December 31, 2023			1,277,972				1,277,972
Series Y Senior Convertible Preferred Stock - 1,000,000 shares authorized, $0.001 par value, stated value of $4.00, 955,114 and 0 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively			3,820,456				–
Common Stock; 300,000,000 shares authorized, $0.001 par value; 14,555,601 and 25,121 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively			14,556				25
Additional paid-in capital			20,891,337				(7,581,212	)
Accumulated deficit			(71,792,589	)			(68,684,115	)
Total stockholders’ equity			3,729,120				731,418
Total liabilities, mezzanine equity and stockholders’ equity		$	23,514,762			$	20,745,811

 

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

 

 

 

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(UNAUDITED)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023 (Restated)				2024				2023 (Restated)
REVENUE		$	1,355,641			$	3,405,859			$	5,149,416			$	9,476,764
COST OF SALES			1,000,601				551,423				2,741,765				2,589,407
GROSS PROFIT			355,040				2,854,436				2,407,651				6,887,357
OPERATING EXPENSES
Depreciation expense			3,365				3,365				10,096				11,365
Share based compensation			–				–				300,225				–
Selling, general and administrative			936,835				577,677				2,622,981				2,095,611
Total operating expenses			940,200				581,042				2,933,302				2,106,976
(LOSS) INCOME FROM CONTINUING OPERATIONS			(585,160	)			2,273,394				(525,651	)			4,780,381
OTHER (EXPENSE) INCOME
Other (expense) income			(6,767	)			(1	)			(4,720	)			204
Gain on debt refinance and forgiveness			–				–				78,834				390
Penalties and fees			–				(16,000	)			(1,330	)			(48,000	)
Interest expense			(1,386,041	)			(226,119	)			(1,803,657	)			(1,763,698	)
Amortization of debt discounts			–				(46,048	)			(24,821	)			(94,664	)
Total other (expense) income			(1,392,808	)			(288,168	)			(1,755,694	)			(1,905,768	)
NET (LOSS) INCOME BEFORE DISCONTINUED OPERATIONS			(1,977,968	)			1,985,226				(2,281,345	)			2,874,613
LOSS FROM DISCONTINUED OPERATIONS			–				(3,705	)			(111,312	)			(93,005	)
NET (LOSS) INCOME FOR THE PERIOD		$	(1,977,968	)		$	1,981,521			$	(2,392,657	)		$	2,781,608
PREFERRED STOCK DIVIDENDS			(238,009	)			(150,965	)			(715,817	)			(605,384	)
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS		$	(2,215,977	)		$	1,830,556			$	(3,108,474	)		$	2,176,224
BASIC (LOSS) INCOME PER SHARE
CONTINUING OPERATIONS		$	(0.16	)		$	136.12			$	(0.30	)		$	167.13
DISCONTINUED OPERATIONS		$	0.00			$	(0.28	)		$	(0.01	)		$	(7.15	)
DILUTED (LOSS) INCOME PER SHARE
CONTINUING OPERATIONS		$	(0.16	)		$	2.30			$	(0.30	)		$	2.40
DISCONTINUED OPERATIONS		$	0.00			$	(0.28	)		$	(0.01	)		$	(7.15	)
WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC			14,075,296				13,448				10,242,799				13,005
WEIGHTED AVERAGE SHARES OUTSTANDING – DILUTED			14,075,296				794,783				10,242,799				906,441

 

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

 

 

 

 

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(UNAUDITED)

 

Three Months Ended September 30, 2024:

		Preferred Stock Series A, I and Y								Preferred Stock Series B, E, F-1, J and L								Preferred Stock Series C								Common Stock								Additional Paid-In				Accumulated				Total Stockholders’
		Shares				Amount				Shares				Amount				Shares				Amount				Shares				Amount				Capital				Deficit				Equity
Balance, June 30, 2024 (Restated)			12,579,410			$	50,317,632		–		1,400,797			$	5,603,188				60			$	240				13,626,376			$	13,626			$	19,522,200			$	(69,576,612	)		$	5,880,274
Conversion of series B preferred stock			–				–				(226,250	)			(905,000	)			–				–				452,500				453				904,547				–				–
Conversion of series C preferred stock			–				–				–				–				(17	)			(68	)			170,000				170				(102	)			–				–
Conversion of series F-1 preferred stock			–				–				(16,250	)			(65,000	)			–				–				32,500				33				64,967				–				–
Conversion of series I preferred stock			(100,000	)			(400,000	)			–				–				–				–				200,000				200				399,800				–				–
Issuance of series Y preferred stock			16,206				64,824				–				–				–				–				–				–				(1	)			–				64,823
Common stock issued in legal settlement			–				–				–				–				–				–				74,225				74				(74	)			–				–
Preferred stock Dividends			–				–				–				–				–				–				–				–				–				(238,009	)			(238,009	)
Net income			–				–		–		–				–				–				–				–				–				–				(1,977,968	)			(1,977,968	)
Balance, September 30, 2024			12,495,616			$	49,982,456		–		1,158,297			$	4,633,188				43			$	172				14,555,601			$	14,556			$	20,891,337			$	(71,792,589	)		$	3,729,120

 

 

 

 

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(UNAUDITED)

(continued)

 

Nine Months Ended September 30, 2024:

		Preferred Stock Series A, I and Y								Preferred Stock Series B, E, F-1, J and L								Preferred Stock Series C								Common Stock								Additional Paid-In				Accumulated				Total Stockholders’
		Shares				Amount				Shares				Amount				Shares				Amount				Shares				Amount				Capital				Deficit				Equity
Balance, December 31, 2023 (Restated)			14,885,002			$	59,540,000				4,364,057			$	17,456,228				123			$	492				25,121			$	25			$	(7,581,212	)		$	(68,684,115	)		$	731,418
Conversion of convertible notes payable			–				–				–				–				–				–				1,222				1				1,679				–				1,680
Conversion of series B preferred stock			–				–				(1,385,549	)			(5,542,196	)			–				–				2,771,098				2,771				5,539,425				–				–
Conversion of series C preferred stock			–				–				–				–				(78	)			(312	)			780,000				780				(468	)			–				–
Conversion of series E preferred stock			–				–				(80,375	)			(321,500	)			–				–				160,750				161				321,339				–				–
Conversion of series F-1 preferred stock			–				–				(26,252	)			(105,008	)			–				–				52,504				53				104,955				–				–
Conversion of series I preferred stock			(3,477,000	)			(13,908,000	)			–				–				–				–				6,954,000				6,954				13,901,246				–				–
Conversion of series J preferred stock			–				–				(1,713,584	)			(6,854,336	)			–				–				3,427,168				3,427				6,850,909				–				–
Issuance of series I preferred stock to officers			132,500				530,000				–				–				–				–				–				–				63,600				–				593,600
Issuance of series Y preferred stock			955,114				3,820,456				–				–				–				–				–				–				–				–				3,820,456
Cancellation of series C preferred stock			–				–				–				–				(2	)			(8	)			–				–				8				–				–
Common stock issued for services			–				–				–				–				–				–				7,500				8				11,617				–				11,625
Common stock issued to board members			–				–				–				–				–				–				30,000				30				194,970				–				195,000
Common stock issued in Red Rock settlement			–				–				–				–				–				–				37,104				37				111,275				–				111,312
Common stock issued in legal settlement			–				–				–				–				–				–				74,225				74				(74	)			–				–
Preferred stock Dividends			–				–				–				–				–				–				234,909				235				1,372,269				(715,817	)			656,687
Net income			–				–				–				–				–				–				–				–				–				(2,392,657	)			(2,392,657	)
Balance, September 30, 2024			12,495,616			$	49,982,456				1,158,297			$	4,633,188				43			$	172				14,555,601			$	14,556			$	20,891,337			$	(71,792,589	)		$	3,729,120

 

 

 

 

 

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(UNAUDITED)

(continued)

 

Three Months Ended September 30, 2023:

 

		Preferred Stock Series A and I								Preferred Stock Series B, E, F-1, J and L								Preferred Stock Series C								Common Stock								Additional Paid-In				Accumulated				Total Stockholders’ (Deficit)
		Shares				Amount				Shares				Amount				Shares				Amount				Shares				Amount				Capital				Deficit				Equity
Balance, June 30, 2023 (Restated)			14,885,001			$	59,540,000				4,354,057			$	17,416,228				123			$	492				13,636			$	14			$	(9,802,172	)		$	(68,338,447	)		$	(1,183,885	)
Issuance of preferred stock series E			–				–				5,000				20,000				–				–				–				–				(20,000	)			–				–
Conversion of convertible notes payable			–				–				–				–				–				–				2,079				2				29,016				–				29,018
Preferred stock Dividends			–				–				–				–				–				–				–				–				–				(150,965	)			(150,965	)
Net income			–				–				–				–				–				–				–				–				–				1,981,521				1,981,521
Balance, September 30, 2023 (Restated)			14,885,001			$	59,540,000				4,359,057			$	17,436,228				123			$	492				15,715			$	16			$	(9,793,156	)		$	(65,507,891	)		$	675,689

 

Nine Months Ended September 30, 2023:

 

		Preferred Stock Series A and I								Preferred Stock Series B, E, F-1, J and L								Preferred Stock Series C								Common Stock								Additional Paid-In				Accumulated				Total Stockholders’ (Deficit)
		Shares				Amount				Shares				Amount				Shares				Amount				Shares				Amount				Capital				Deficit				Equity
Balance, December 31, 2022 (Restated)			14,885,001			$	59,540,000				4,350,907			$	17,403,628				123			$	492				12,053			$	12			$	(10,004,808	)		$	(68,684,115	)		$	(1,744,791	)
Issuance of preferred stock series B			–				–				3,150				12,600				–				–				–				–				12,400				–				25,000
Issuance of preferred stock series E			–				–				5,000				20,000				–				–				–				–				(20,000	)			–				–
Conversion of convertible notes payable			–				–				–				–				–				–				3,662				4				219,252				–				219,256
Preferred stock Dividends			–				–				–				–				–				–				–				–				–				(605,384	)			(605,384	)
Net income			–				–				–				–				–				–				–				–				–				2,781,608				2,781,608
Balance, September 30, 2023 (Restated)			14,885,001			$	59,540,000				4,359,057			$	17,436,228				123			$	492				15,715			$	16			$	(9,793,156	)		$	(65,507,891	)		$	675,689

 

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

 

 

 

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(UNAUDITED)

 

		Nine Months Ended September 30,
		2024				2023 (Restated)
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income		$	(2,392,657	)		$	2,781,608
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation			10,096				11,365
Amortization of debt discount			24,821				94,664
Bad debt			–				270,000
Change in estimate for settlement realization rate			1,650,474				–
Conversion and note issuance cost			1,000				11,250
Share issuance for compensations to directors and officers			788,600				–
Share issuance for service rendered			11,625				25,000
Fair value settled upon conversion			–				141,406
Gain on settlement or forgiveness of debt			(78,834	)			(390	)
(Increase) decrease in:
Accounts receivable			(3,143,440	)			(5,510,098	)
Right of use - assets			(176,327	)			17,763
Prepaids and other current assets			(27,098	)			–
Increase (decrease) in:
Accounts payable and accrued expense			(691,072	)			733,125
Accrued officers compensation			(380,001	)			514,000
Accrued interest			218,174				380,020
Right of use - liabilities			187,734				(27,255	)
Net cash used in operating activities			(3,996,905	)			(557,542	)
Net cash provided by (used in) Discontinued Operations – Operating			111,312				(38,255	)
FINANCING ACTIVITIES
Payments to director			(120,997	)			–
Repayment of SBA loans			(4,545	)			(803	)
Proceeds from convertible notes payable			–				421,376
Payment of convertible notes			(105,079	)			–
Net proceeds from line of credit			5,348,871				5,848
Payment of note payable			(50,000	)			–
Proceeds from note payable – related party			–				250
Payment of dividends on preferred stock			(100,000	)			–
Net cash provided by financing activities			4,968,250				426,671
Net cash provided by Discontinued Operations – Financing			–				131,260
NET INCREASE (DECREASE) IN CASH			1,082,657				(37,866	)
CASH, BEGINNING OF PERIOD			866,943				219,085
CASH, END OF PERIOD		$	1,949,600			$	181,219
SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for Interest		$	126,732			$	6,389
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Common stock issued upon conversion of notes payable		$	1,680			$	99,533
Common stock issued upon conversion of preferred stock		$	14,158			$	–
Series Y preferred stock issued in exchange of convertible notes payable		$	3,755,632			$	–
Promissory note payable issued in settlement agreement		$	535,000			$	–
Right of use assets acquired		$	363,411			$	–

 

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

 

CARDIFF LEXINGTON CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(UNAUDITED)

 

 

1.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Organization and Nature of Operations

 

Cardiff Lexington Corporation (“Cardiff”) was originally incorporated on September 3, 1986 in Colorado as Cardiff International Inc. On November 10, 2005, Cardiff merged with Legacy Card Company, LLC and changed its name to Cardiff Lexington Corporation. On August 27, 2014, Cardiff redomiciled and became a corporation under the laws of Florida. On April 13, 2021, Cardiff redomiciled and became a corporation under the laws of Nevada.

 

Cardiff is an acquisition holding company focused on locating undervalued and undercapitalized companies, primarily in the healthcare industry, and providing them capitalization and leadership to maximize the value and potential of their private enterprises while also providing diversification and risk mitigation for stockholders. All of Cardiff’s operations are predominantly conducted through, and its income derived from, its Nova Ortho and Spine, LLC (“Nova”) subsidiary. Its subsidiaries include:

 

	·	Nova, which was acquired on May 31, 2021;
	·	Edge View Properties, Inc. (“Edge View”), which was acquired on July 16, 2014; and
	·	Platinum Tax Defenders (“Platinum Tax”), which was acquired on July 31, 2018 and sold on November 10, 2023. As a result, Platinum Tax is presented as a discontinued operation.

 

Principles of Consolidation

 

The consolidated financial statements include the accounts of Cardiff and its wholly owned subsidiaries, Nova, Edge View, and Platinum Tax and (collectively, the “Company”). Subsidiaries shown as discontinued operations include Platinum Tax. All significant intercompany accounts and transactions are eliminated in consolidation.

 

Reverse Stock Split

 

On January 9, 2024, the Company effected a 1-for-75,000 reverse split of its outstanding common stock. All outstanding shares of common stock and warrant to purchase common stock were adjusted to reflect the 1-for-75,000 reverse split, with respective exercise prices of the warrants proportionately increased. The conversion prices of the outstanding convertible notes and certain series of preferred stock were adjusted to reflect a proportional decrease in the number of shares of common stock to be issued upon conversion.

 

All share and per share data throughout these consolidated financial statements have been retroactively adjusted to reflect the reverse stock split. The total number of authorized shares of common stock did not change. As a result of the reverse stock split, an amount equal to the decreased value of the common stock was reclassified from “common stock” to “additional paid-in capital.”

 

 

 

10

 

 

Use of Estimates

 

The preparation of financial statements in conformity with United States generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Management uses its historical records and knowledge of its business in making estimates. Accordingly, actual results could differ from those estimates.

 

Accounts Receivable

 

In the normal course of business, the Company is in the lien based medical industry providing orthopedic healthcare servicing an uninsured market insulated by a letter of protection which insulates the Company and insures payment in full from insurance settlements. Accounts receivable consists of amounts due from attorneys and insurance providers for services provided to patients under the letter of protection. Accounts receivable are recorded at the expected settlement realization amount, which is less contractual adjustments and an allowance for credit losses. The Company recognizes an allowance for credit losses for its accounts receivable to present the net amount expected to be collected as of the balance sheet date. This allowance is determined based on the history of net settlements received, where the net settlement amount is not collected. No collection can happen if no settlement is reached with the defendant’s insurance company and the plaintiff (the patient) loses the case at trial, or the case is abandoned, then the Company will not be able to collect on its letter of protection and its receivable will not be collected. The Company monitors outstanding cases as they develop through ongoing discussions with attorneys, doctors and third-party medical billing company and additionally monitors settlement realization rates over time. Additionally, the Company considers economic factors and events or trends expected to affect future collections experience. The no collection history of the Company’s customers is considered in future assessments of collectability as these patterns are established over a longer period. The Company uses the term collection and collection rate in its disclosures to describe the historical less than 1% occurrence of not collecting under a contract, which aligns with the Company’s credit loss accounting under ASC 326.

 

The Company does not have a significant exposure to credit losses as it has historically had a less than 1.0% loss rate where the Company received no settlement amount for its outstanding accounts receivable. Although possible, claims resulting in zero collection upon settlement are rare based on the Company’s historical experience and has historically been 0.5% to 1.0% of its outstanding accounts receivable, thereby resulting in a collection rate of 99%. The Company uses the loss rate method to record its allowance for credit losses. The Company applies the loss rate method by reviewing its zero collection history on a quarterly basis and updating its estimates of credit losses to adjust for changes in loss data. The Company typically collects on its accounts receivable between eighteen and twenty-four months after recording. The Company does not record an allowance for credit losses based on an aging of its accounts receivable as the aging of the Company’s receivables do not influence the credit loss rate due to the nature of its business and the letter of protection. The Company does not adjust its receivables for the effects of a significant financing component at contract inception as the timing of variable consideration is determined by the settlement, which is outside of the Company’s control. As of September 30, 2024 and December 31, 2023, the Company’s allowance for credit losses was $122,190. The Company recognized $0 and $270,000 of credit loss expense during the nine months ended September 30, 2024 and 2023, respectively, which is included in selling, general and administrative expenses in the condensed consolidated statement of operations. The balance of accounts receivable, net as of January 1, 2023 was $6,603,920.

 

Property and Equipment

 

Property and equipment are carried at cost. Expenditures for renewals and betterments that extend the useful lives of property, equipment or leasehold improvements are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is calculated using the straight-line method for financial reporting purposes based on the following estimated useful lives: 

Schedule of estimated useful lives
Classification	Useful Life
Equipment, furniture, and fixtures	5 - 7 years
Medical equipment	10 years
Leasehold improvements	10 years or lease term, if shorter

 

 

 

11

 

 

Goodwill

 

Goodwill is not amortized but is evaluated for impairment annually or when indicators of a potential impairment are present. The Company reviews goodwill for impairment on a reporting unit basis annually and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Goodwill is tested first for impairment based on qualitative factors on an annual basis or in between if an event occurs or circumstances change that indicate the fair value may be below its carrying amount, otherwise known as a ‘triggering event’. An assessment is made of these qualitative factors as such to determine whether it is more likely than not the fair value is less than the carry amount, including goodwill. The annual evaluation for impairment of Goodwill, if needed, is based on valuation models that incorporate assumptions and internal projections of expected future cash flows and operating plans. The Company believes such assumptions are also comparable to those that would be used by other marketplace participants. During the nine months ended September 30, 2024 and 2023, the Company did not recognize any goodwill impairment. The Company based this decision on impairment testing of the underlying assets, expected cash flows, decreased asset value and other factors.

 

Valuation of Long-lived Assets

 

In accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 360-10-5, “Impairment or Disposal of Long-Lived Assets”, all long-lived assets such as plant and equipment and construction in progress held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of assets to estimated cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets.

 

Revenue Recognition

 

The Company’s primary source of revenue is its healthcare subsidiary, which records revenues from providing licensed and/or certified orthopedic procedures. Revenue is recognized at a point in time in accordance with ASC 606 and at an estimated net settlement realization rate based on gross billed charges. The Company’s healthcare subsidiary does not have contract liabilities or deferred revenue as there are no amounts prepaid for services. The Company applies the following five-step ASC 606 model to determine revenue recognition:

 

	·	Identification of a contract with a customer
	·	Identification of the performance obligations in the contact
	·	Determination of the transaction price
	·	Allocation of the transaction price to the separate performance obligations
	·	Recognition of revenue when performance obligations are satisfied.

 

At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses services promised within each contract and determines those that are a performance obligation and assesses whether each promised service is distinct.

 

The Company’s contracts contain a single performance obligation (providing orthopedic services), as the promise to transfer the individual services is not separately identifiable from other promises in the contracts and, therefore, not distinct, as a result, the entire transaction price is allocated to this single performance obligation.

 

 

12

 

 

Accordingly, the Company recognizes net revenue when the patient receives orthopedic care services. The Company’s patient service contracts generally have performance obligations which are satisfied at a point in time. The performance obligation is for onsite or off-site care provided. Patient service contracts are generally fixed-price, and the transaction price is in the contract. Revenue is recognized when obligations under the terms of the contract with the Company’s patients are satisfied; generally, at the time of patient care.

 

In determining net revenue to record under ASC 606, the Company must estimate the transaction price, including estimates of variable consideration in the contract at inception. In order to estimate variable consideration, the Company uses established billings rates (also described as “gross charges”) for the procedures being performed, however, the billing rates are not the same as actual amounts recovered for the Company’s healthcare subsidiary. They generally do not reflect what the Company is ultimately paid by the customer, insurance carriers and other payors, and therefore are not reported in the consolidated financial statements at that rate. The Company is typically paid amounts based on established charges per procedure with guidance from the annually updated Current Procedural Terminology (“CPT”) guidelines that designates relative value units and a suggested range of charges for each procedure which is then assigned a CPT code. This gross charge is discounted to reflect the percentage paid to the Company using a modifier recognized by each insurance carrier for services, less deductible, co-pay, and contractual adjustments which are deducted from the calculated fee. These adjustments are considered variable consideration under ASC 606 and are deducted from the calculated fee to arrive at the net transaction price. The Company also estimates changes in the contract price as a result of price concessions, changes to deductibles, co-pays and other contractual adjustments to determine the eventual settlement amount the Company expects to receive. The Company uses the term settlement realization in its disclosures to describe the amount of cash the Company expects to receive based on its estimate of the transaction price under the expected value method of ASC 606.

 

Where appropriate, the Company utilizes the expected value method to determine the appropriate amount for estimates of variable consideration, which has been based on a historical 12-month lookback of its actual settlement realization rates. The estimates of reserves established for variable consideration reflect current contractual requirements, the Company’s historical experience, specific known market events and trends, industry data and forecasted patient data and settlement patterns. Settlement realization patterns are assessed based on actual settlements and based on expected settlement realization trends obtained from discussions with attorneys, doctors and our third-party medical billing company. Settlement amounts are negotiated, and prolonged settlement negotiations are not indicative of a greater likelihood of reduced settlement realization or zero settlement.

 

The Company may accept a lower settlement realization rate in order to receive faster payment. The Company obtains information about expected settlement realization trends from discussions with doctors and attorneys and its third-party medical billing company vendor, which handles settlement claims and negotiations. Settlement amounts are presented to the Company’s third-party medical billing company vendor.

 

Settlement rates of 49% or higher based on gross billed amounts are typically accepted without further negotiation. Proposed settlement rates below 49% are negotiated when possible and longer negotiations typically result in higher settlement rates. If the Company accepts a lower settlement realization rate in order to receive payments more quickly, the Company considers that a price concession and estimates these concessions at contract inception. The various forms of variable consideration described above included in the transaction price may be constrained and are included in net revenue only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. The Company has not constrained any of its estimates of variable consideration for any of the periods presented.

 

Service Fees – Net (PIP)

 

The Company generates services fees from performing various procedures on the date the services are performed. These services primarily include slip and falls as well as smaller nominal Non-PIP services. As described above, these revenues are based on established insurance billing rates, less allowances for contractual adjustments and uncollectible amounts. These contractual adjustments vary by insurance company and self-pay patients. The Company computes these contractual and other adjustments based on its historical settlement realization experience. Completing the paperwork for each case and preparing it for billing takes approximately ten business days after a procedure is performed. The majority of claims are then filed electronically except for those remaining insurance carriers requiring paper filing. An initial response is usually received within four weeks from electronic filing and up to six weeks from paper filing. Responses may be a payment, a denial, or a request for additional information. The Company’s healthcare revenues are generated from professional medical billings including facility and anesthesia services. With respect to facility and anesthesia services, the Company is the primary obligor as the facility and anesthesia services are considered part of one integrated performance obligation.

 

 

 

13

 

 

The Company satisfies performance obligations as services are performed and then billed to the patient. Payment in most cases is made by an attorney for such services to our patients which are due upon final settlement of patients claims. During the claims process, legal counsel warranties such claim through the letter of protection, which is sent to the Company, as a medical provider, on behalf of the client patient. This letter states that the attorney is responsible for paying the client’s medical bills when the case is fully developed and settles. The medical professional agrees to provide treatment to the injured person and refrain from attempting to collect payment as it is developing and until the case is resolved. Once the personal injury case is finalized with the insurance company, the attorney pays the outstanding medical bills from the settlement.

 

Settlement Rates

 

Prior to its fiscal year 2024, the Company has historically had a 49% settlement realization rate from its total gross billed charges. Accordingly, the Company has historically recognized net healthcare service revenue as 49% of gross billed amounts. During the nine months ended September 30, 2024, the Company underwent efforts to accelerate cash settlements by accepting lower settlement realization rates in order to settle outstanding accounts receivable more quickly, which is expected to continue for the foreseeable future. This new initiative caused the Company to reassess the average settlement rate used to recognize healthcare service revenue as a prospective change in estimate given new information available. Accordingly, during the third quarter of 2024, the Company completed a thorough review of its third-party billing data, including reviewing historical reports and new reporting methods as a part of its updated analysis. Based upon this review it was determined that a 24-month lookback period should be used in the analysis of its historical settlement realization rates. Accordingly, its estimate of its settlement realization rate was reduced from 49% to 44%, resulting in a $1,650,474 million reduction in its accounts receivable and revenue during the third quarter of 2024 related to the change in estimate. Additionally, as a result of this reduced settlement realization experience, the Company recorded reductions to net revenue of $0 and $1,199,155 for the three and nine months ended September 30, 2024, respectively.

 

The Company will continue to evaluate its estimate of its settlement realization rates in the future, which will include a monthly review of the Company’s trailing 24-month historical settlement realization rate, along with estimates of current and pending settlements through ongoing discussions with attorneys, doctors and the Company’s third-party medical billing company in order to determine its variable consideration under ASC 606 and the net transaction price. The Company will update its settlement realization rate estimate used in determining its accounts receivable and revenue each quarter based on this review.

 

Contract Fees (Non-PIP)

 

The Company has contract fees for amounts earned from its Non-Personal Injury Protection (“PIP”) related procedures, typically car accidents, and are settled on a contingency basis. Prior to April 2023, these cases were sold to a factor who bears the risk of economic benefit or loss. Generally, the sale of these cases to a third-party factor resulted in an approximate 54% reduction from the accounts receivables amounts. After selling patient cases to the factor, any additional funds settled by us were remitted to the factor. The Company evaluated the factored adjustments considering the actual factored amounts per patient on a quarterly interval, and the reductions from accounts receivable that were factored were recorded in finance charges as other expenses on the consolidated statement of operations. As a result of the Company’s eighteen to twenty-four month settlement realization timeframe, the Company has an accrued liability resulting from the settlement of receivables sold to the third-party factors which fluctuates as settlements are made and remitted to those third-party factors. These accounts receivables sold to these third-party factors are not included in the Company’s financial statements accounts receivable balance once sold and therefore are not part of the assessment of the net realizable value of accounts receivable. For the nine months ended September 30, 2023, the Company factored a total of $544,196 of its accounts receivable in exchange for cash of $253,750. The Company ceased factoring of accounts receivable in the first quarter of 2023.

 

Advertising Costs

 

Advertising costs are expensed as incurred. Advertising costs are included as a component of cost of sales in the consolidated statements of operations and changes in stockholders’ equity. The Company recognized advertising and marketing expense of $84,914 and $71,636 for the three months ended September 30, 2024 and 2023, respectively. The Company recognized advertising and marketing expense of $263,864 and $243,315 for the nine months ended September 30, 2024 and 2023, respectively.

 

 

 

14

 

 

Fair Value Measurements

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs), and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

 

	Level 1	Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
	Level 2	Inputs, other than quoted prices included in Level 1, which are observable for the asset or liability through corroboration with market data at the measurement date.
	Level 3	Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.

  

Distinguishing Liabilities from Equity

 

The Company accounts for its series N senior convertible preferred stock, series R convertible preferred stock, and series X senior convertible preferred stock subject to possible redemption in accordance with ASC 480, “Distinguishing Liabilities from Equity”. Conditionally redeemable preferred shares are classified as temporary equity within the Company’s consolidated balance sheet.

 

Stock-Based Compensation

 

The Company accounts for its stock-based compensation in which the Company obtains employee services in share-based payment transactions under the recognition and measurement principles of the fair value recognition provisions of section 718-10-30 of the Financial Accounting Standards Board (“FASB”) ASC. Pursuant to paragraph 718-10-30-6 of the FASB ASC, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.

 

The measurement date used to determine the fair value of the equity instrument issued is the earlier of the date on which the performance is complete or the date on which it is probable that performance will occur.

 

Generally, all forms of share-based payments, including stock option grants, warrants and restricted stock grants and stock appreciation rights are measured at their fair value on the awards’ grant date, based on estimated number of awards that are ultimately expected to vest.

 

The expense resulting from share-based payments is recorded in the consolidated statements of operations.

 

Income Taxes

 

Income taxes are determined in accordance with ASC Topic 740, “Income Taxes”. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

 

 

 

15

 

 

ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.

 

As of September 30, 2024 and 2023, the Company did not have any interest and penalties associated with tax positions and did not have any significant unrecognized uncertain tax positions.

 

Income (Loss) per Share

 

FASB ASC Subtopic 260, “Earnings Per Share,” provides for the calculation of “Basic” and “Diluted” earnings per share. Basic earnings per common share is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, warrants, and debts convertible into common stock. The dilutive effect of stock options and warrants are reflected in diluted earnings per common share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. The diluted effect of debt convertibles is reflected utilizing the if converted method.

 

Going Concern

 

The accompanying consolidated financial statements have been prepared using the going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The Company had sustained recurring operating losses since its inception and has an accumulated deficit of $71,792,589 as of September 30, 2024. These factors raise a substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not reflect any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classifications of liabilities that might result if the Company is unable to continue as a going concern.

 

The ability of the Company to continue as a going concern and the appropriateness of using the going concern basis is dependent upon, among other things, additional cash infusions. Management is in continuous discussions with prospective investors and believes the raising of capital will allow the Company to fund its cash flow shortfalls and pursue new acquisitions. There can be no assurance that the Company will be able to obtain sufficient capital from debt or equity transactions or from operations in the necessary time frame or on terms acceptable to it. Should the Company be unable to raise sufficient funds, it may be required to curtail its operating plans. In addition, if overall Company expenses increase, the Company may need to implement cost reductions. No assurance can be given that the Company will be able to operate profitably on a consistent basis, or at all, in the future. Should the Company not be able to raise sufficient funds, it may cause cessation of operations.

 

Recently Issued Accounting Standards

 

The FASB issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting: Improvements to Reportable Segment Disclosures” (“Topic 280”) in November 2023. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Topic 280 improves “reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.” In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable “investors to better understand an entity’s overall performance” and assess “potential future cash flows.” Management is evaluating the impact of ASU 2023-07 on the consolidated financial statements and does not expect there to be any changes or impact to the financial statements.

 

 

 

16

 

 

Recently Adopted Accounting Standards

 

The FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 81540).” The ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within that period. The FASB also specified that an entity must adopt the guidance as of the beginning of its annual fiscal year and is not permitted to adopt the guidance in an interim period, other than the first interim period of their fiscal year. ASU 2020-06 reduces the number of accounting models for convertible debt and convertible preferred stock instruments and makes certain disclosure amendments to improve the information provided to users. There were no material impacts on the consolidated financial statements at adoption.

 

  

2.	RESTATEMENT OF FINANCIAL STATEMENTS

During the preparation of the financial statements for the year ended December 31, 2023, the Company identified and corrected its classification and accounting treatment for its series R convertible preferred stock and the related dividend accrual. Pursuant to ASC 250, Accounting changes and error corrections issued by FASB and Staff Accounting Bulletin 99 Materiality, issued by Securities and Exchange Commission, the Company determined the impact of the error was immaterial. The impact of the error correction is reflected in the consolidated balance sheet as of September 30, 2023 as a $274,982 increase to the mezzanine equity and offsetting decrease to the series R convertible preferred stock and subject to possible redemption mezzanine equity line item. In addition, the impact of the unpaid dividend accrual was reflected as of September 30, 2023 as a $24,681 increase to mezzanine equity and offsetting decrease to the accumulated deficits.

 

During the preparation of the financial statements for three months ended March 31, 2024, the Company identified and corrected its classification for all its outstanding common stock amount per par value of $0.001 with additional paid-in-capital related with a 1-for-75,000 reverse split executed on January 9, 2024. The impact of this adjustment decreased $1,804,774 to common stock and offsetting increase to additional paid-in-capital as of December 31, 2023.

 

On November 10, 2023, the Company sold Platinum Tax, which was a full-service tax resolution firm located in Los Angeles, California. The Company presented in prior periods operating loss as loss from discontinued operations of $3,705 and $93,005 on the consolidated statement of operations for the three and nine months ended September 30, 2023, respectively.

 

The impact of the error corrections also reflected a $136.12 increase of basic earnings per share, and a $2.30 increase of diluted earnings per share on the consolidated statement of operations for the three months ended September 30, 2023. For the nine months ended September 30, 2023, the impact of the error correction reflected a $167.33 increase of basic earnings per share, and an increase of $2.40 of diluted earnings per share.

 

The following tables summarize the impact of the corrections on the Company’s condensed consolidated balance sheet as of September 30, 2023, the condensed consolidated statement of operations for the three and nine months ended September 30, 2023, and the condensed consolidated statement of cash flows for the nine months ended September 30, 2023: 

Schedule of restated financial information
Balance sheet
		Impact of correction of error
September 30, 2023 (Unaudited)		As previously reported				Adjustments				As restated
Total assets		$	18,518,727			$	(844	)		$	18,517,883
Total liabilities			12,102,942				(244,129	)			11,858,813
Mezzanine equity			5,440,434				299,663				5,740,097
Total stockholders' equity		$	975,352			$	(299,663	)		$	675,689

 

 

 

17

 

 

Statement of operations

 

		Impact of correction of error
Three months ended September 30, 2023 (Unaudited)		As previously reported				Adjustments				As restated
Revenue		$	3,438,124			$	(32,265	)		$	3,405,859
Cost of sales			557,028				(5,605	)			551,423
Gross profit			2,881,096				(26,660	)			2,854,436
Operating expense			611,110				(30,067	)			581,043
Income from operations			2,269,986				3,407				2,273,393
Other income (expense), net			(288,465	)			298				(288,167	)
Net income before discontinued operations			1,981,521				3,705				1,985,226
Loss from discontinued operations			–				(3,705	)			(3,705	)
Net income for the period		$	1,981,521			$	–			$	1,981,521
Preferred stock dividends		$	(150,965	)		$	0.00			$	(150,965	)
Net income attributable to common shareholders		$	1,830,556			$	0.00			$	1,830,556
Basic earnings per share for continuing operations		$	0.00			$	136.12			$	136.12
Diluted earnings per share for continuing operations		$	0.00			$	2.30			$	2.30

 

		Impact of correction of error
Nine months ended September 30, 2023 (Unaudited)		As previously reported				Adjustments				As restated
Revenue		$	9,781,731			$	(304,967	)		$	9,476,764
Cost of sales			2,643,137				(53,730	)			2,589,407
Gross profit			7,138,594				(251,237	)			6,887,357
Operating expense			2,448,876				(341,900	)			2,106,976
Income from operations			4,689,718				90,663				4,780,381
Other income (expense), net			(1,908,110	)			2,342				(1,905,768	)
Net income before discontinued operations			2,781,608				93,005				2,874,613
Loss from discontinued operations			–				(93,005	)			(93,005	)
Net income for the period		$	2,781,608			$	–			$	2,781,608
Preferred stock dividends		$	(605,384	)		$	0.00			$	(605,384	)
Net income attributable to common shareholders		$	2,176,224			$	0.00			$	2,176,224
Basic earnings per share for continuing operations		$	0.00			$	167.33			$	167.33
Diluted earnings per share for continuing operations		$	0.00			$	2.40			$	2.40

 

 

 

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Statement of Cash Flows

 

		Impact of correction of error
Nine months ended September 30, 2023 (Unaudited)		As previously reported				Adjustments				As restated
Net cash used in operating activities of continuing operations		$	(603,392	)		$	45,850			$	(557,542	)
Net cash provided by financing activities of continuing operations		$	557,933			$	(131,262	)		$	426,671

 

 

3.	ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Schedule of accounts payable and accrued expenses
		September 30, 2024				December 31, 2023
Accounts payable		$	663,381			$	720,774
Accrued credit cards			8,248				26,645
Accrued liability for settlement of previously factored receivables			599,956				1,247,772
Accrued income and property taxes			5,346				5,346
Accrued professional fees			50,721				29,122
Accrued board fees			15,000				–
Accrued dividend			30,354				–
Accrued public company fees			5,000				–
Accrued travel expense			1,571				–
Accrued payroll			6,835				17,472
Total		$	1,386,412			$	2,047,131

 

The Company is delinquent paying certain property taxes. As of September 30, 2024 and December 31, 2023, the balance for these property taxes was $1,659.

 

 

4.	PLANT AND EQUIPMENT, NET

 

Property and equipment as of September 30, 2024 and December 31, 2023 is as follows: 

Schedule of property and equipment
		September 30, 2024				December 31, 2023
Medical equipment		$	96,532			$	96,532
Computer Equipment			9,189				9,189
Furniture, fixtures and equipment			15,079				15,079
Leasehold Improvement			15,950				15,950
Total			136,750				136,750
Less: accumulated depreciation			(112,187	)			(102,089	)
Property and equipment, net		$	24,563			$	34,661

 

For the three months ended September 30, 2024 and 2023, depreciation expense was $3,365 and $3,365, respectively. For the nine months ended September 30, 2024 and 2023, depreciation expense was $10,096 and $11,365, respectively.

 

 

 

19

 

 

 

5.

LAND

 

As of September 30, 2024 and December 31, 2023, the Company had 27 acres of land of approximately $540,000. The land is currently vacant and is expected to be developed into a residential community.

 

 

6.	RELATED PARTY TRANSACTIONS

 

In connection with the acquisition of Edge View on July 16, 2014, the Company assumed amounts due from previous owners who are current managers of Edge View. These amounts are due on demand and do not bear interest. The balance of these amounts is $4,979 due from the previous owners as of September 30, 2024 and December 31, 2023.

 

The Company obtained short-term advances from the Chairman of the Board that are non-interest bearing and due on demand. As of September 30, 2024 and December 31, 2023, the Company owed the Chairman $0 and $120,997, respectively. During the nine months ended September 30, 2024, the Company paid $120,997 to the Chairman.

 

See also Note 8. Convertible Notes Payable and the disclosure regarding Note payable 41.

 

See also Note 13. Commitments and Contingencies for compensation paid to employees of the Company.

 

 

7.	NOTES AND LOANS PAYABLE

 

Notes payable at September 30, 2024 and December 31, 2023 are summarized as follows:

Schedule of notes payable
		September 30, 2024				December 31, 2023
Notes and loans payable		$	8,215,069			$	2,280,743
Less current portion			(8,074,797	)			(2,136,077	)
Long-term portion		$	140,272			$	144,666

 

Long-term debt matures as follows:

Schedule of maturities of long-term debt
		Amount
2024 (remainder of year)		$	8,071,169
2025			4,837
2026			4,837
2027			4,837
2028			4,837
Thereafter			124,552
Total		$	8,215,069

 

 

 

20

 

 

Promissory Note – Settlement Agreement

 

On June 11, 2024, the Company entered into a settlement agreement and release of claims with the holder of 165 shares of series R convertible preferred stock and certain convertible promissory notes (see Notes 29-2, 37-1, 37-2, and 37-3 referenced in Note 8. Convertible Notes Payable). Pursuant to the settlement agreement and release of claims, the holder agreed to cancel its shares of series R convertible preferred stock and convertible promissory notes in exchange for a new fixed amount settlement promissory note in the principal amount of $535,000.

 

The note does not bear interest and requires fixed payments as follows: (i) if the Company raises at least $5 million but less than $6 million in its planned underwritten public offering (the “Offering”), then it must pay $250,000 on the closing date of the Offering, with payments of $125,000, $125,000 and $35,000 to follow on the 90^th, 180^th, and 240^th days following the closing of the Offering, respectively; (ii) if the Company raises at least $6 million but less than $7 million in the Offering, then it must pay $390,000 on the closing date of the Offering and $145,000 on the 90^th day following the closing of the Offering; and (iii) if the Company raises at least $7 million in the Offering, then it must repay the entire principal amount on the closing date of the Offering. If the Offering is not completed by August 15, 2024, then the Company is required to pay $25,000 on such date and to continue making payments of $25,000 on each monthly anniversary thereof until the entire principal amount is repaid in full. Notwithstanding the foregoing, if the Company abandons the Offering and conducts a new public offering thereafter, then the Company is required to make a payment of $100,000 on the closing date of such other public offering, a second payment of $100,000 on the 90^th day following the closing of such offering and $35,000 each month thereafter until the entire principal amount is repaid in full. If any portion of the principal amount remains unpaid on the second (2^nd) anniversary of the date of the note, it shall become immediately due and payable on such date. The Company may prepay the entire principal amount at any time without penalty. The note is unsecured and contains customary events of default for a loan of this type. Upon an event of default, interest would automatically begin to accrue at a simple interest rate of ten percent per annum. This transaction was accounted for as a debt extinguishment and a gain on settlement of $78,834 was recorded to the unaudited, consolidated statement of operations for the quarter ended June 30, 2024, in accordance with FASB Topic 470 Borrower’s Accounting for Debt Modifications. During the three months ended September 30, 2024, the Company paid $50,000 against the outstanding principal balance. At September 30, 2024, the remaining principal balance was $485,000.

 

Loans and Notes Payable – Unrelated Party

 

On March 12, 2009, the Company issued a debenture in the principal amount of $20,000. The debenture bore interest at 12% per year and matured on September 12, 2009. The balance of the debenture was $10,989 at September 30, 2024 and December 31, 2023. The accrued interest of the debenture was $8,537 and $7,547 at September 30, 2024 and December 31, 2023, respectively. The Company assigned all of its receivables from consumer activations of the rewards program as collateral on this debenture.

 

Small Business Administration (“SBA”) Loans

 

On June 2, 2020, the Company obtained an SBA loan in the principal amount of $150,000 with an interest rate of 3.75% and a maturity date of June 2, 2050. The principal balance and accrued interest at September 30, 2024 was $145,109 and $0, respectively, and principal and accrued interest at December 31, 2023 was $149,655 and $956, respectively.

 

 

 

21

 

 

Line of Credit

 

On September 29, 2023, the Company and Nova entered into a two-year revolving purchase and security agreement with DML HC Series, LLC (“DML”) to sell, with recourse, Nova’s accounts receivables for a revolving financing up to a maximum advance amount of $4.5 million. A review is performed on a quarterly basis to assess the adequacy of the maximum amount. If mutually agreed upon by the Company and DML, the maximum amount may be increased. On April 24, 2024, the Company and Nova entered into amendment No. 1 with DML which increased the maximum advance amount to $8,000,000 and defined the discount fee equal to 2.25% per purchase and claims balance forward on new purchases with a minimum fee to now be $10,000. On June 11, 2024, the Company and Nova entered into amendment No. 2 with DML which further increased the maximum advance amount to $11,000,000. As of September 30, 2024, and December 31, 2023, the Company had $7,468,971 and $2,120,100, respectively, outstanding balance against the revolving receivable line of credit. As of September 30, 2024, there was $252,628 of interest accrued related to the line of credit. The revolving purchase and security agreement includes discounts recorded as interest expense on each funding and matures on September 29, 2025.

 

 

8.	CONVERTIBLE NOTES PAYABLE

 

As of September 30, 2024 and December 31, 2023, the Company had convertible debt outstanding net of amortized debt discount of $105,000 and $3,807,030, respectively. During the nine months ended September 30, 2024, the Company paid the total principal outstanding of $100,080 and the total outstanding interest of $22,279 to the holder of Notes 9 and 10-1. The Company also paid the total principal outstanding of $5,000 and the total outstanding interest of $501 to the holder of Note 41. Additionally, the Company paid $100,000 of accrued interest to convertible noteholder related to note 40-1. On June 11, 2024, the Company entered into a settlement agreement and release of claims with the holder of Notes 29-2, 37-1, 37-2 and 37-3 (see below and also Note 7. Notes and Loans Payable for further details). Pursuant to the settlement agreement and release of claims, the holder agreed to cancel these notes in exchange for a new fixed amount settlement promissory note in the principal amount of $535,000. Additionally, during the nine months ended September 30, 2024, the Company exchanged Notes 40-1, 40-2, 40-3, 40-4, 40-5, 40-6, 40-7, 40-8, 40-9 and 40-10 for the issuance of 938,908 shares of series Y senior convertible preferred stock to the noteholder. See also Note 9. Capital Stock.

 

During the nine months ended September 30, 2023, the Company received net proceeds of $421,375 from convertible notes. There were debt discounts associated with the convertible debt of $0 and $24,820 at September 30, 2024 and December 31, 2023, respectively. For the three months ended September 30, 2024 and 2023, the Company recorded amortization of debt discounts of $0 and $46,048, respectively. For the nine months ended September 30, 2024 and 2023, the Company recorded amortization of debt discounts of $24,821and $94,664, respectively.

 

During the nine months ended September 30, 2024, the Company converted $680 in accrued interest and $1,000 in conversion cost into 1,222 shares of common stock. The Company recognized $1,679 of additional paid-in capital to adjust fair value for the debt settlement during the nine months ended September 30, 2024. During the nine months ended September 30, 2023, the Company converted $87,460 of convertible debt, $12,073 in accrued interest and $3,000 in conversion cost into 3,662 shares of the Company’s common stock. The Company recognized $141,406 of interest expense and additional paid-in capital to adjust fair value for the debt settlement during the nine months ended September 30, 2023.

 

Convertible notes as of September 30, 2024 and December 31, 2023 are summarized as follows:

Schedule of convertible notes
		September 30, 2024				December 31, 2023
Convertible notes payable		$	105,000			$	3,831,850
Discounts on convertible notes payable			–				(24,820	)
Total convertible debt less debt discount			105,000				3,807,030
Current portion			105,000				3,807,030
Long-term portion		$	–			$	–

 

 

 

22

 

 

The following is a schedule of convertible notes payable as of and for the nine months ended September 30, 2024.

Schedule of convertible notes payable
Note #		Issuance		Maturity		Principal Balance 12/31/23				Settlements and/or Principal Conversions				New Loans or (Cash Paydown)				Shares Issued Upon Conversion or Exchange				Principal Balance 09/30/24				Accrued Interest on Convertible Debt at 12/31/23				Interest On Convertible Debt For the Period Ended 09/30/24				Accrued Interest on Convertible Debt at 09/30/24				Unamortized Debt Discount At 09/30/24
9		09/12/2016		09/12/2017		$	50,080			$	–			$	(50,080	)			1,222			$	–			$	5,581			$	(5,581	)		$	–			$	–
10		01/24/2017		01/24/2018			55,000				–				–				–				55,000				80,875				8,258				89,134				–
10-1		02/10/2023		02/10/2024			50,000				–				(50,000	)			–				–				6,658				(6,658	)			–				–
10-2		03/30/2023		03/30/2024			25,000				–				–				–				25,000				2,836				3,442				6,277				–
10-3		08/11/2023		08/11/2024			25,000				–				–				–				25,000				1,469				3,130				4,599				–
29-2		11/08/2019		11/08/2020			36,604				(36,604	)			–				–				–				10,109				(10,109	)			–				–
31		08/28/2019		08/28/2020			–				–				–				–				–				8,385				(8,385	)			–				–
37-1		09/03/2020		06/30/2021			113,667				(113,667	)			–				–				–				64,929				(64,929	)			–				–
37-2		11/02/2020		08/31/2021			113,167				(113,167	)			–				–				–				63,594				(63,594	)			–				–
37-3		12/29/2020		09/30/2021			113,166				(113,166	)			–				–				–				62,558				(62,558	)			–				–
40-1		09/22/2022		09/22/2024			2,600,000				(2,600,000	)			–				938,908	(1)			–				252,665				(252,655	)			–				–
40-2		11/04/2022		09/22/2024			68,667				(68,667	)			–				–				–				7,939				(7,939	)			–				–
40-3		11/28/2022		09/22/2024			68,667				(68,667	)			–				–				–				7,506				(7,506	)			–				–
40-4		12/21/2022		09/22/2024			68,667				(68,667	)			–				–				–				7,054				(7,054	)			–				–
40-5		01/24/2023		03/21/2024			90,166				(90,166	)			–				–				–				8,284				(8,284	)			–				–
40-6		03/21/2023		09/22/2024			139,166				(139,166	)			–				–				–				10,671				(10,671	)			–				–
40-7		06/05/2023		06/05/2024			139,166				(139,166	)			–				–				–				7,826				(7,826	)			–				–
40-8		06/13/2023		06/13/2024			21,167				(21,167	)			–				–				–				1,127				(1,127	)			–				–
40-9		07/19/2023		07/19/2024			35,500				(35,500	)			–				–				–				1,605				(1,605	)			–				–
40-10		07/24/2023		07/24/2024			14,000				(14,000	)			–				–				–				614				(614	)			–				–
41		08/25/2023		08/25/2024			5,000				–				(5,000	)			–				–				175				(175	)			–
						$	3,831,850			$	(3,621,770	)		$	(105,080	)			940,130			$	105,000			$	612,460			$	(512,450	)		$	100,010			$	–

 

(1)	938,908 Series Y Senior Convertible Preferred Shares issued in exchange for full value of the outstanding principal and interest on Notes 40-1, 40-2, 40-3, 40-4, 40-5, 40-6, 40-7, 40-8, 40-9 and 40-10

 

Note 9

 

On September 12, 2016, the Company issued a convertible promissory note in the principal of $80,000 for services rendered, which matured on September 12, 2017. Note 9 was in default and accrued at a default interest rate of 20% per annum. In May of 2024, the $58,846 total outstanding principal and interest was paid in full.

 

Note 10, 10-1, 10-2 and 10-3

 

On January 24, 2017, the Company issued a convertible promissory note in the principal amount of $80,000 for services rendered, which matured on January 24, 2018. Note 10 is currently in default and accrues interest at a default interest rate of 20% per annum. On February 10, 2023, the Company executed a second tranche under this note in the principal amount of $50,000 (Note 10-1). On March 30, 2023, the Company executed a third tranche under this note in the principal amount of $25,000 (Note 10-2). On August 11, 2023, the Company executed a fourth tranche under this note in the principal amount of $25,000 (Note 10-3). In May of 2024, the $63,513 total outstanding principal and interest on Note 10-1 was paid in full. Notes 10-2 and 10-3 are currently in default and accrue interest at a default interest rate of 20% per annum.

 

 

 

23

 

 

Notes 29-2, 37-1, 37-2 and 37-3

 

On May 10, 2019, the Company issued a convertible promissory note in the principal amount of $150,000. On November 8, 2019, this note (Note 29) was purchased by and assigned to an unrelated party. The amount assigned was the existing principal amount of $150,000 and accrued interest of $5,918, which was issued as Note 29-1, plus a new convertible promissory note in the principal amount of $62,367, which was issued as Note 29-2.

 

On September 3, 2020, the Company issued a convertible promissory note in the principal amount of $200,000, with an original issue discount of $50,000, which could be drawn in several tranches. On September 3, 2020, the Company executed the first tranche in the principal amount of $67,000, less an original issue discount of $17,000, which matured on June 30, 2021 (Note 37-1). On November 2, 2020, the Company executed the second tranche in the principal amount of $66,500, less an original issue discount of $16,500, which matured on August 31, 2021 (Note 37-2). On December 29, 2020, the Company executed the third tranche in the principal amount of $66,500, less an original issue discount of $16,500, which matured on September 30, 2021 (Note 37-3).

 

On June 11, 2024, the Company entered into a settlement agreement and release of claims with the holder of Notes 29-2, 37-1, 37-2 and 37-3 (see Note 7. Notes and Loans Payable for further details). Pursuant to the settlement agreement and release of claims, the holder agreed to cancel these notes, along with the cancellation of their holding in the series R preferred stock, in exchange for a new fixed amount settlement promissory note in the principal amount of $535,000.

 

Notes 40-1, 40-2, 40-3, 40-4, 40-5, 40-6, 40-7, 40-8, 40-9 and 40-10

 

On September 22, 2022, the Company issued a convertible promissory note in the principal amount of $2,600,000 in exchange for total of $4,791,099 of defaulted promissory notes balances (Note 40-1). On November 4, 2022, the Company executed a second tranche under this note in the principal amount of $68,667, less an original issue discount and fee of $18,667 (Note 40-2). On November 28, 2022, the Company executed the third tranche under this note in the principal amount of $68,667, less an original issue discount and fee of $18,667 (Note 40-3). On December 21, 2022, the Company executed a fourth tranche under this note in the principal amount of $68,667, less an original issue discount and fee of $18,667 (Note 40-4). On January 24, 2023, the Company executed a fifth tranche under this note in the principal amount of $90,166, less an original issue discount and fee of $25,166 (Note 40-5). On March 21, 2023, the Company executed a sixth tranche under this note in the principal amount of $136,666, less an original issue discount and fee of $39,166 (Note 40-6). On June 5, 2023, the Company executed a seventh tranche under this note in the principal amount of $136,667, less original issue discount and fee of $39,167 (Note 40-7). On June 13, 2023, the Company executed an eighth tranche under this note in the principal amount of $21,167, less original issue discount and fee of $5,167 (Note 40-8). On July 19, 2023, the Company executed a ninth tranche under this note in the principal amount of $35,500, less an original issue discount and fee of $8,875 (Note 40-9). On July 24, 2023, the Company executed a tenth tranche under this note in the principal amount of $14,000, less an original issue discount and fee of $3,500 (Note 40-10). On December 1, 2023, the Company executed amendment on Notes series 40 consolidated senior secured convertible promissory note to extend the expired tranche note 40-1 through 40-5’ due date to September 20, 2024. All of the Note 40 tranches mature in one year from the note issuance date and accrue interest at a rate of 10% per annum.

 

On April 11, 2024, the Company issued 938,908 shares of series Y senior convertible preferred stock in exchange for the settlement of the principal and interest in full on Notes 40-1, 40-2, 40-3, 40-4, 40-5, 4-6, 40-7, 40-8, 40-9 and 40-10. See also Note 9. Capital Stock.

 

Note 41

 

On August 25, 2023, the Company issued a twelve-month convertible promissory note in the principal amount of $5,000 to the Company’s CEO for the Company’s operating expenses. The rate of interest is 10% per annum. In August of 2024, the remaining outstanding principal and interest of $5,501 was paid in full.

 

 

 

24

 

 

 

9.	CAPITAL STOCK

 

On May 8, 2024, the Company amended its Articles of Incorporation to increase its authorized stock. The total amended authorized shares are 350,000,000 shares of capital stock, consisting of 300,000,000 shares of common stock, $0.001 par value, and 50,000,000 shares of preferred stock, $0.001 par value per share.

 

Preferred Stock

 

The Company has designated multiple series of preferred stock, including 2 shares of series A preferred stock, 3,000,000 shares of series B preferred stock, 500 shares of series C preferred stock, 1,000,000 shares of series E preferred stock, 50,000 shares of series F-1 preferred stock, 15,000,000 shares of series I preferred stock, 2,000,000 shares of series J preferred stock, 400,000 shares of series L preferred stock, 3,000,000 shares of series N senior convertible preferred stock, 5,000 shares of series R convertible preferred stock, 5,000,000 shares of series X senior convertible preferred stock and 1,000,000 shares of series Y senior convertible preferred stock.

 

The following is a description of the rights and preferences of each series of preferred stock.

 

Redeemable Preferred Stock

 

The Company recognizes the series N senior convertible preferred stock, series R convertible preferred stock and series X senior convertible preferred stock as mezzanine equity in accordance with ASC 480, “Distinguishing Liabilities from Equity”.

 

Series N Senior Convertible Preferred Stock

 

Ranking. The series N senior convertible preferred stock ranks, with respect to the payment of dividends and the distribution of assets upon liquidation, (i) senior to all common stock and each other class or series that is not expressly made senior to or on parity with the series N senior convertible preferred stock; (ii) on parity with each class or series that is not expressly subordinated or made senior to the series N senior convertible preferred stock; and (iii) junior to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company and each class or series that is expressly made senior to the series N senior convertible preferred stock.

 

Dividend Rights. Holders of series N senior convertible preferred stock are entitled to dividends at a rate per annum of 12.0% of the stated value ($4.00 per share); provided that upon an event of default (as defined in the certificate of designation for the series N senior convertible preferred stock), such rate would increase by 8% per annum. Dividends accrued from day to day, whether or not declared, and are cumulative. Dividends are payable quarterly in arrears on each dividend payment date in cash or common stock at the Company’s discretion. Dividends payable in common stock are to be calculated based on a price equal to eighty percent (80%) of the volume weighted average price for the common stock on the Company’s principal trading market (the “VWAP”) during the five (5) trading days immediately prior to the applicable dividend payment date. At September 30, 2024 and December 31, 2023, cumulative dividends earned on the series N senior convertible preferred stock were $1,211,585 and $766,437, respectively. At September 30, 2024 $1,106,562 of the cumulative accrued dividends were paid by the Company via the issuance of 197,601 shares of the Company’s common stock. The remaining $105,023 cumulative accrued dividend will be paid during the fourth quarter 2024 via the issuance of 26,256 shares of the Company’s series N senior convertible preferred stock.

 

 

 

 

25

 

 

Liquidation Rights. Subject to the rights of creditors and the holders of any senior securities or parity securities (in each case, as defined in the certificate of designation), upon any liquidation of the Company or its subsidiaries, before any payment or distribution of the assets of the Company (whether capital or surplus) are to be made to or set apart for the holders of junior securities (as defined in the certificate of designation), including the common stock, each holder of outstanding series N senior convertible preferred stock is entitled to receive an amount of cash equal to 115% of the stated value of $4.00 per share, plus an amount of cash equal to all accumulated accrued and unpaid dividends thereon (whether or not declared) to, but not including the date of final distribution to such holders.

 

Voting Rights. Holders of series N senior convertible preferred stock do not have any voting rights; provided that, so long as any shares of series N senior convertible preferred stock are outstanding, the affirmative vote of holders of a majority of the series N senior convertible preferred stock, which majority must include SILAC Insurance Company so long as it holds any shares of series N senior convertible preferred stock, voting as a separate class, is necessary for approving, effecting or validating any amendment, alteration or repeal of any of the provisions of the certificate of designation or prior to the Company’s (or Nova’s) creation or issuance of any parity securities or new indebtedness (as defined in the certificate of designation); provided that the foregoing does not apply to any financing transaction the use of proceeds of which would be used to redeem the series N senior convertible preferred stock and the warrants issued in connection therewith. In addition, the affirmative vote of holders of 66% of the series N senior convertible preferred stock, voting as a separate class, is required prior to the Company’s (or Nova’s) creation or issuance of any senior securities.

 

Conversion Rights. Each share of series N senior convertible preferred stock, plus all accrued and unpaid dividends thereon, are convertible, at the option of the holder thereof, at any time and from time to time, into such number of fully paid and nonassessable shares of common stock determined by dividing the stated value ($4.00 per share), plus the value of the accrued, but unpaid, dividends thereon, by a conversion price of $900 per share (subject to standard adjustments in the event of any stock splits, stock combinations, stock reclassifications, dividends paid in common stock, sales of substantially all assets, mergers, consolidations or similar transactions); provided that in no event shall the holder of any series N senior convertible preferred stock be entitled to convert any number of shares that upon conversion the sum of (i) the number of shares of common stock beneficially owned by the holder and its affiliates and (ii) the number of shares of common stock issuable upon the conversion of the series N senior convertible preferred stock with respect to which the determination of this proviso is being made, would result in beneficial ownership by the holder and its affiliates of more than 4.99% of the then outstanding common stock. This limitation can be waived (up to a maximum of 9.99%) by the holder and in its sole discretion, upon not less than sixty-one (61) days’ prior notice to the Company.

 

Redemption Rights. The Company may redeem the series N senior convertible preferred stock at any time by paying in cash therefore a sum equal to 115% of the stated value of $4.00 per share, plus the amount of accrued and unpaid dividends and any other amounts due pursuant to the terms of the certificate of designation. In addition, any holder may require the Company to redeem some or all of its shares of series N senior convertible preferred stock on the same terms after a period of twelve months from the date of issuance; provided, however, that such redemption right shall only be exercisable if the Company raises at least $5,000,000 or the common stock is trading on the Nasdaq Stock Market or the New York Stock Exchange.

 

Series R Convertible Preferred Stock

 

The series R convertible preferred stock was cancelled as part of the June 2024 promissory note and settlement agreement. See also Note 7. Notes and Loans Payable and Note 8. Convertible Notes Payable.

 

Ranking. The series R convertible preferred stock ranked, with respect to the distribution of assets upon liquidation, (i) senior to all common stock, series A preferred stock, series B preferred stock, series C preferred stock, series E preferred stock, series F-1 preferred stock, series I preferred stock, series J preferred stock, series L preferred stock and to each other class or series that is not expressly made senior to or on parity with the series R convertible preferred stock; (ii) on parity with each class or series that is not expressly subordinated or made senior to the series R convertible preferred stock; and (iii) junior to the series N senior convertible preferred stock, series X senior convertible preferred stock and to each other series of preferred stock and each class or series that is expressly made senior to the series R convertible preferred stock, as well as to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company.

 

 

 

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Dividend Rights. The holders of series R convertible preferred stock were entitled to receive cumulative dividends in the amount of twelve percent (12%) per annum, payable quarterly. In addition, holders of series R convertible preferred stock were entitled to receive dividends equal (on an as converted to common stock basis) to and in the same form as dividends actually paid on shares of common stock when, as and if such dividends are paid on shares of common stock. Any dividends that were not paid when due were to continue to accrue and entailed a late fee, which must be paid in cash, at the rate of 18% per annum or the lesser rate permitted by applicable law which was to accrue and compound daily from the missed payment date through and including the date of actual payment in full. At September 30, 2024 and December 31, 2023, cumulative dividends on Series R Preferred Stock were $0 and $109,980, respectively.

 

Liquidation Rights. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders of series R convertible preferred stock were entitled to receive out of the assets, whether capital or surplus, of the Company an amount equal to the stated value ($1,200), plus any accrued and unpaid dividends thereon and any other fees or liquidated damages then due and owing, for each share of series R convertible preferred stock before any distribution or payment shall be made to the holders of any junior securities.

 

Voting Rights. The holders of series R convertible preferred stock voted together with the common stock on an as-converted basis. However, as long as any shares of series R convertible preferred stock were outstanding, the Company shall not, without the affirmative vote of the holders of a majority of the then outstanding shares of the series R convertible preferred stock, directly and/or indirectly (i) alter or change adversely the powers, preferences or rights given to the series R convertible preferred stock or alter or amend the certificate of designation, (ii) authorize or create any class of stock ranking as to redemption or distribution of assets upon a liquidation senior to, or otherwise pari passu with, the series R convertible preferred stock, or authorize or create any class of stock ranking as to dividends senior to, or otherwise pari passu with, the series R convertible preferred stock, (iii) amend its articles of incorporation or other charter documents in any manner that adversely affects any rights of the holders of the series R convertible preferred stock, (iv) increase the number of authorized shares of series R convertible preferred stock, or (v) enter into any agreement with respect to any of the foregoing.

 

Conversion Rights. Each share of series R convertible preferred stock was convertible, at the option of the holder thereof, at any time and from time to time, into such number of fully paid and nonassessable shares of common stock determined by dividing the stated value ($1,200 per share) by a conversion price equal to the lower of (i) $75.0 and (ii) the lowest daily VWAP during the twenty (20) trading days immediately prior to the applicable conversion date. Notwithstanding the foregoing, the Company shall not effect any conversion of the series R convertible preferred stock, and a holder shall not have the right to convert any portion of the series R convertible preferred stock, to the extent that, after giving effect to the conversion, such holder (together with such holder’s affiliates, and any persons acting as a group together with such holder or any of such holder’s affiliates) would beneficially own in excess of 4.99% of the then outstanding common stock. The conversion price was subject to adjustment for any stock dividend, stock split, stock combination, reclassification or similar transaction that proportionately decreases or increases the common stock, as well as for mergers, business combinations and certain other fundamental transactions. In addition, subject to certain exceptions, upon any issuance by the Company or any of its subsidiaries of common stock or common stock equivalents for cash consideration, indebtedness or a combination of units thereof (a “Subsequent Financing”), the holder could have elected, in its sole discretion, to exchange (in lieu of conversion), if applicable, all or some of the shares of series R convertible preferred stock then held for any securities or units issued in a Subsequent Financing on a $1.00 for $1.00 basis.

 

Participation Rights. Subject to certain exceptions, upon a Subsequent Financing, a holder of at least 100 shares of series R convertible preferred stock were to have the right to participate in up to an amount of the Subsequent Financing equal to 100% of the Subsequent Financing on the same terms, conditions and price provided for in the Subsequent Financing.

 

Company Redemption Rights. The Company had the right to redeem all (but not less than all), shares of the series R convertible preferred stock issued and outstanding at any time upon three (3) business days’ notice, at a redemption price per share equal to the product of (i) the Premium Rate multiplied by (ii) the sum of (x) the stated value ($1,200), (y) all accrued but unpaid dividends, and (z) all other amounts due to the holder. “Premium Rate” means (a) 1.1 if all of the series R convertible preferred stock is redeemed within ninety (90) calendar days from the issuance date thereof; (b) 1.2 if all of the series R convertible preferred stock is redeemed after ninety (90) calendar days and within one hundred twenty (120) calendar days from the issuance date thereof; (c) 1.3 if all of the series R convertible preferred stock is redeemed after one hundred twenty (120) calendar days and within one hundred eighty (180) calendar days from the issuance date thereof; and (iv) 1.0 if all of the series R convertible preferred stock is redeemed after one hundred eighty (180) calendar days.

 

 

 

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Redemption Upon Triggering Events. Upon the occurrence of a Triggering Event (as defined below), each holder of series R convertible preferred stock had (in addition to all other rights it may have) the right, exercisable at the sole option of such holder, to require the Company to (A) redeem all of the series R convertible preferred stock then held by such holder for a redemption price, in cash, equal to the Triggering Redemption Amount (as defined below), or (B) at the option of each holder either (i) redeem all of the series R convertible preferred stock then held by such holder though the issuance to such holder of such number of shares of common stock equal to the quotient of (x) the Triggering Redemption Amount, divided by (y) the lowest of (1) the conversion price, and (2) 75% of the average of the 10 VWAPs immediately prior to the date of election, or (ii) increase the dividend rate on all of the outstanding series R convertible preferred stock held by such holder retroactively to the initial issuance date to 18% per annum thereafter. “Triggering Redemption Amount” means, for each share of series R convertible preferred stock, the sum of (a) the greater of (i) 130% of the stated value and (ii) the product of (y) the VWAP on the trading day immediately preceding the date of the Triggering Event, multiplied by (z) the stated value divided by the then applicable conversion price, (b) all accrued but unpaid dividends thereon and (c) all liquidated damages, late fees and other costs, expenses or amounts due in respect of the series R convertible preferred stock including, but not limited to legal fees and expenses of legal counsel to the holder in connection with, related to and/or arising out of a Triggering Event. A “Triggering Event” means any of the following events (whatever the reason for such event and whether such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):

 

	·	the Company shall fail to deliver the shares of common stock issuable upon a conversion prior to the fifth (5th) trading day after such shares are required to be delivered, or the Company shall provide written notice to any holder, including by way of public announcement, at any time, of its intention not to comply with requests for conversion of any shares of series R convertible preferred stock in accordance with the terms of the certificate of designation;
	·	the Company shall fail for any reason to pay in full the amount of cash due pursuant to a Buy-In (as defined in the certificate of designation) within five (5) trading days after notice therefor is delivered;
	·	the Company shall fail to have available a sufficient number of authorized and unreserved shares of common stock to issue to such holder upon a conversion;
	·	unless specifically addressed elsewhere in the certificate of designation as a Triggering Event, the Company shall fail to observe or perform any other covenant, agreement or warranty contained in, or otherwise commit any breach of the Transaction Documents (as defined in the certificate of designation), and such failure or breach shall not, if subject to the possibility of a cure by the Company, have been cured within five (5) calendar days after the date on which written notice of such failure or breach shall have been delivered;
	·	the Company shall redeem junior securities or pari passu securities;
	·	the Company shall be party to a Change of Control Transaction (as defined in the certificate of designation);
	·	there shall have occurred a Bankruptcy Event (as defined in the certificate of designation);
	·	any monetary judgment, writ or similar final process shall be entered or filed against the Company, any subsidiary or any of their respective property or other assets for more than $50,000 (provided that amounts covered by the Company’s insurance policies are not counted toward this $50,000 threshold), and such judgment, writ or similar final process shall remain unvacated, unbonded or unstayed for a period of thirty (30) trading days;
	·	the electronic transfer by the Company of shares of common stock through the Depository Trust Company or another established clearing corporation once established subsequent to the date of the certificate of designation is no longer available or is subject to a ‘freeze” and/or “chill;” or
	·	any “Event of Default,” as defined in the Purchase Agreement (as defined in the certificate of designation).

 

 

 

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Series X Senior Convertible Preferred Stock

 

Ranking. The series X senior convertible preferred stock ranks, with respect to the payment of dividends and the distribution of assets upon liquidation, (i) senior to all common stock and each other class or series that is not expressly made senior to or on parity with the series X senior convertible preferred stock; (ii) on parity with each class or series that is not expressly subordinated or made senior to the series X senior convertible preferred stock; and (iii) junior to the series N senior convertible preferred stock, all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company and each class or series that is expressly made senior to the series X senior convertible preferred stock.

 

Dividend Rights. Holders of series X senior convertible preferred stock are entitled to dividends at a rate per annum of 10.0% of the stated value ($4.00 per share); provided that upon an event of default (as defined in the certificate of designation for the series X senior convertible preferred stock), such rate was to increase by 5% per annum. Dividends accrue from day to day, whether or not declared, and are cumulative. Dividends are payable quarterly in arrears on each dividend payment date. At September 30, 2024 and December 31, 2023, cumulative dividends earned on the series X senior convertible preferred stock were $221,018 and $190,685, respectively. At September 30, 2024, $183,210 of the cumulative accrued dividends were paid by the Company via the issuance of 25,173 shares of the Company’s common stock. The remaining $37,808 cumulative accrued dividend will be paid during the fourth quarter 2024 via the issuance of 9,453 shares of the Company’s series X senior convertible preferred stock.

 

Liquidation Rights. Subject to the rights of creditors and the holders of any senior securities, including the series N senior convertible preferred stock, or parity securities (in each case, as defined in the certificate of designation), upon any liquidation of the Company or its subsidiaries, before any payment or distribution of the assets of the Company (whether capital or surplus) are to be made to or set apart for the holders of junior securities (as defined in the certificate of designation), including the common stock, each holder of outstanding series N senior convertible preferred stock is entitled to receive an amount of cash equal to 100% of the stated value of $4.00 per share, plus an amount of cash equal to all accumulated accrued and unpaid dividends thereon (whether or not declared) to, but not including the date of final distribution to such holders.

 

Voting Rights. Holders of series X senior convertible preferred stock do not have any voting rights; provided that, so long as any shares of series X senior convertible preferred stock are outstanding, the affirmative vote of holders of a majority of the series X senior convertible preferred stock, which majority must include Leonite Capital LLC so long as it holds any shares of series X senior convertible preferred stock, voting as a separate class, is necessary for approving, effecting or validating any amendment, alteration or repeal of any of the provisions of the certificate of designation or prior to the creation or issuance of any parity securities or new indebtedness (as defined in the certificate of designation); provided that the foregoing does not apply to any financing transaction the use of proceeds of which were to be used to redeem the series X senior convertible preferred stock and the warrants issued in connection therewith. In addition, the affirmative vote of holders of 66% of the series X senior convertible preferred stock, voting as a separate class, is required prior to the creation or issuance of any senior securities.

 

Conversion Rights. Each share of series X senior convertible preferred stock, plus all accrued and unpaid dividends thereon, are convertible, at the option of the holder thereof, at any time and from time to time, into such number of fully paid and nonassessable shares of common stock determined by dividing the stated value ($4.00 per share), plus the value of the accrued, but unpaid, dividends thereon, by a conversion price equal to the lower of (i) the lowest VWAP during the five (5) trading days immediately prior to the applicable conversion date and (ii) the price per share paid in any subsequent financing (the “Fixed Price”). The Fixed Price is subject to standard adjustments in the event of any stock splits, stock combinations, stock reclassifications, dividends paid in common stock, sales of substantially all assets, mergers, consolidations or similar transactions, as well as a price based antidilution adjustment, pursuant to which, subject to certain exceptions, if the Company issues common stock at a price lower than the Fixed Price, the Fixed Price shall decrease to such lower price. Notwithstanding the foregoing, in no event shall the holder of any series X senior convertible preferred stock be entitled to convert any number of shares that upon conversion the sum of (i) the number of shares of common stock beneficially owned by the holder and its affiliates and (ii) the number of shares of common stock issuable upon the conversion of the series X senior convertible preferred stock with respect to which the determination of this proviso is being made, would result in beneficial ownership by the holder and its affiliates of more than 4.99% of the then outstanding common stock. This limitation may be waived (up to a maximum of 9.99%) by the holder and in its sole discretion, upon not less than sixty-one (61) days’ prior notice to the Company.

 

 

 

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Redemption Rights. Commencing on September 22, 2023, any holder may require the Company to redeem its shares by the payment in cash therefore of a sum equal to 100% of the stated value of $4.00 per share, plus the amount of accrued and unpaid dividends and any other amounts due pursuant to the terms of the certificate of designation; provided however, that in the event that the Company completes a public offering prior to the redemption date, then any holder may only cause the Company to redeem any outstanding series X senior convertible preferred stock by paying such redemption price in twelve (12) equal monthly installments with the first such payment due on the date that is six (6) months following the date that the Company completes such public offering.

 

Non-redeemable Preferred Stock

 

Series A Preferred Stock

 

Ranking. The series A preferred stock ranks, with respect to the distribution of assets upon liquidation, (i) senior to all common stock and each other class or series that is not expressly made senior to or on parity with the series A preferred stock; (ii) on parity with each class or series that is not expressly subordinated or made senior to the series A preferred stock; and (iii) junior to the series B preferred stock, series C preferred stock, series E preferred stock, series F-1 preferred stock, series I preferred stock, series J preferred stock, series L preferred stock, series N senior convertible preferred stock, series R convertible preferred stock, series X senior convertible preferred stock and each other series of preferred stock and each class or series that is expressly made senior to the series A preferred stock, as well as to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company.

 

Dividend Rights. The series A preferred stock is not entitled to participate in any distributions or payments to the holders of common stock or any other class of stock and shall have no economic interest in the Company.

 

Liquidation Rights. In the event of any liquidation, dissolution or winding up of the Company, either voluntarily or involuntarily, a merger or consolidation of the Company wherein the Company is not the surviving entity, or a sale of all or substantially all of the assets of the Company, the holders of each share of series A preferred stock shall be entitled to receive from any distribution of any of the assets or surplus funds of the Company, before and in preference of any holder of shares of common stock, an amount equal to the stated value of $250. Once the holders receive the foregoing from any such liquidation, dissolution or winding up, the holders shall not participate with the common stock or any other class of stock.

 

Voting Rights. Each share of series A preferred stock shall have a number of votes at any time equal to (i) 25% of the number of votes then held or entitled to be made by all other equity securities of the Company, including, without limitation, the common stock, plus (ii) one (1). The series A preferred stock shall vote on any matter submitted to the holders of the common stock, or any other class of voting securities, for a vote, and shall vote together with the common stock, or any class of voting securities, as applicable, on such matter for as long as the shares of series A preferred stock are issued and outstanding. Notwithstanding the foregoing, the series A preferred stock shall not have the right to vote on any matter as to which solely another series of preferred stock is entitled to vote pursuant to the Company’s amended and restated articles of incorporation or a certificate of designation of such other series of preferred stock.

 

Transfer. Upon transfer of any share of series A preferred stock, except for a transfer by the holder to an affiliate, whether such transfer is voluntary or involuntary, such share of series A preferred stock shall automatically, and without any action being required by the Company or the holder, be converted into one (1) share of common stock.

 

Other Rights. Holders of series A preferred stock do not have any conversion (except as set forth above) or redemption rights.

 

Series B Preferred Stock

 

Ranking. The series B preferred stock ranks, with respect to the distribution of assets upon liquidation, (i) senior to all common stock, series A preferred stock and to each other class or series that is not expressly made senior to or on parity with the series B preferred stock; (ii) on parity with the series C preferred stock, series E preferred stock, series F-1 preferred stock, series J preferred stock, series L preferred stock and each other class or series that is not expressly subordinated or made senior to the series B preferred stock; and (iii) junior to the series I preferred stock, series N senior convertible preferred stock, series R convertible preferred stock, series X senior convertible preferred stock and to each other series of preferred stock and each class or series that is expressly made senior to the series B preferred stock, as well as to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company.

 

 

 

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Dividend Rights. The holders of series B preferred stock are entitled to receive dividends equal (on an as converted to common stock basis) to and in the same form as dividends actually paid on shares of common stock when, as and if such dividends are paid on shares of common stock. No other dividends shall be paid on shares of series B preferred stock.

 

Liquidation Rights. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders of series B preferred stock shall be entitled to receive out of the assets of the Company the same amount that a holder of common stock would receive if the shares of series B preferred stock were fully converted to common stock immediately prior to such liquidation, which amount shall be paid to the holders of series B preferred stock pari passu with all holders of parity securities and in preference to the holders of junior securities.

 

Voting Rights. On any matter presented to stockholders for their action or consideration, each holder of series B preferred stock shall be entitled to cast one (1) vote per share of series B preferred stock held. Except as provided by law, the holders of series B preferred stock shall vote together with the holders of shares of common stock as a single class. However, as long as any shares of series B preferred stock are outstanding, the Company shall not, without the affirmative vote of the holders of a majority of outstanding series B preferred stock, (a) alter or change adversely the powers, preferences or rights given to the series B preferred stock or alter or amend the certificate of designation for the series B preferred stock, or (b) amend the Company’s amended and restated articles of incorporation or other charter documents in any manner that adversely affects any rights of the holders of series B preferred stock.

 

Conversion Rights. Each share of series B preferred stock is convertible, at any time and from time to time at the option of the holder thereof, into such number of shares of common stock as is determined as follows: (i) if the closing market price of the common stock on the principal trading market on which the common stock is then traded or quoted is less than $4.00 per share, then each share of series B preferred stock shall be convertible into a number of shares of common stock equal to two (2) times the stated value ($4.00 per share), divided by such closing market price on the date of conversion; or (ii) if such closing market price is equal to or greater than $4.00 per share, then each share of series B preferred stock shall be convertible into two (2) shares of common stock. In addition, upon the earlier to occur of: (a) the closing of the sale of shares of common stock to the public at a price of at least $3.00 per share in a public offering pursuant to an effective registration statement or offering statement under the Securities Act resulting in at least $3,000,000 of gross proceeds to the Company, (b) the date on which the shares of common stock of the Company are listed on a national stock exchange, including without limitation the New York Stock Exchange, NYSE American or the Nasdaq Stock Market (any tier), or (c) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least 67% of the then outstanding shares of series B preferred stock, voting together as a single class, each share of series B preferred stock shall be automatically converted into such number of shares of common stock as is determined in accordance with the provisions above. Such conversion price is subject to standard adjustments in the event of any stock dividends, stock reclassifications and similar events (but not for reverse stock splits).

 

Redemption Rights. Holders of series B preferred stock do not have any redemption rights.

 

Series C Preferred Stock

 

Ranking. The series C preferred stock ranks, with respect to the distribution of assets upon liquidation, (i) senior to all common stock, series A preferred stock and to each other class or series that is not expressly made senior to or on parity with the series C preferred stock; (ii) on parity with the series B preferred stock, series E preferred stock, series F-1 preferred stock, series J preferred stock, series L preferred stock and each other class or series that is not expressly subordinated or made senior to the series C preferred stock; and (iii) junior to the series I preferred stock, series N senior convertible preferred stock, series R convertible preferred stock, series X senior convertible preferred stock and to each other series of preferred stock and each class or series that is expressly made senior to the series C preferred stock, as well as to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company.

 

Dividend Rights. The holders of series C preferred stock are entitled to receive dividends equal (on an as converted to common stock basis) to and in the same form as dividends actually paid on shares of common stock when, as and if such dividends are paid on shares of common stock. No other dividends shall be paid on shares of series C preferred stock.

 

 

 

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Liquidation Rights. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders of series C preferred stock shall be entitled to receive out of the assets of the Company the same amount that a holder of common stock would receive if the shares of series C preferred stock were fully converted to common stock immediately prior to such liquidation, which amount shall be paid to the holders of series C preferred stock pari passu with all holders of parity securities and in preference to the holders of junior securities.

 

Voting Rights. On any matter presented to stockholders for their action or consideration, each holder of series C preferred stock shall be entitled to cast one (1) vote per share of series C preferred stock held. Except as provided by law, the holders of series C preferred stock shall vote together with the holders of shares of common stock as a single class. However, as long as any shares of series C preferred stock are outstanding, the Company shall not, without the affirmative vote of the holders of a majority of outstanding series C preferred stock, (a) alter or change adversely the powers, preferences or rights given to the series C preferred stock or alter or amend the certificate of designation for the series C preferred stock, or (b) amend the Company’s amended and restated articles of incorporation or other charter documents in any manner that adversely affects any rights of the holders of series C preferred stock.

 

Conversion Rights. Each share of series C preferred stock is convertible, at any time and from time to time at the option of the holder thereof, into such number of shares of common stock as is determined by dividing the stated value ($4.00 per share) by a conversion price of $0.00004. In addition, on the date on which the shares of common stock are listed on a national stock exchange, including without limitation the New York Stock Exchange, NYSE American or the Nasdaq Stock Market (any tier) (a “Listing Event”), all outstanding shares of series C preferred stock shall be automatically converted into such number of shares of common stock as is determined by dividing $50,000 by the highest traded or closing price on such date, which such shares of common stock shall be issued pro rata among the holders of the outstanding series C preferred stock. Finally, upon the earlier to occur of: (a) the closing of the sale of shares of common stock to the public at a price of at least $3.00 per share (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the common stock) in a public offering pursuant to an effective registration statement or offering statement under the Securities Act resulting in at least $3,000,000 of gross proceeds to the Company or (b) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least 67% of the then outstanding shares of series C preferred stock, voting together as a single class, each share of series C preferred stock shall be automatically converted into such number of shares of common stock as is determined by dividing the stated value ($4.00 per share) by a conversion price of $0.00004. Such conversion price is subject to standard adjustments in the event of any stock dividends, stock reclassifications and similar events (but not for reverse stock splits).

 

Redemption Rights. If there is a Listing Event, the Company shall have the right (but not the obligation) to redeem shares of series C preferred stock at a price per share of $50,000.

 

Series E Preferred Stock

 

Ranking. The series E preferred stock ranks, with respect to the distribution of assets upon liquidation, (i) senior to all common stock, series A preferred stock and to each other class or series that is not expressly made senior to or on parity with the series E preferred stock; (ii) on parity with the series B preferred stock, series C preferred stock, series F-1 preferred stock, series J preferred stock, series L preferred stock and each other class or series that is not expressly subordinated or made senior to the series E preferred stock; and (iii) junior to the series I preferred stock, series N senior convertible preferred stock, series R convertible preferred stock, series X senior convertible preferred stock and to each other series of preferred stock and each class or series that is expressly made senior to the series E preferred stock, as well as to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company.

 

Dividend Rights. The holders of series E preferred stock are entitled to receive dividends equal (on an as converted to common stock basis) to and in the same form as dividends actually paid on shares of common stock when, as and if such dividends are paid on shares of common stock. No other dividends shall be paid on shares of series E preferred stock.

 

 

 

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Liquidation Rights. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders of series E preferred stock shall be entitled to receive out of the assets of the Company the same amount that a holder of common stock would receive if the shares of series E preferred stock were fully converted to common stock immediately prior to such liquidation, which amount shall be paid to the holders of series E preferred stock pari passu with all holders of parity securities and in preference to the holders of junior securities.

 

Voting Rights. On any matter presented to stockholders for their action or consideration, each holder of series E preferred stock shall be entitled to cast one (1) vote per share of series E preferred stock held. Except as provided by law, the holders of series E preferred stock shall vote together with the holders of shares of common stock as a single class. However, as long as any shares of series E preferred stock are outstanding, the Company shall not, without the affirmative vote of the holders of a majority of outstanding series E preferred stock, (a) alter or change adversely the powers, preferences or rights given to the series E preferred stock or alter or amend the certificate of designation for the series E preferred stock, or (b) amend the Company’s amended and restated articles of incorporation or other charter documents in any manner that adversely affects any rights of the holders of series E preferred stock.

 

Conversion Rights. Each share of series E preferred stock is convertible, at any time and from time to time at the option of the holder thereof, into such number of shares of common stock as is determined as follows: (i) if the closing market price of the common stock on the principal trading market on which the common stock is then traded or quoted is less than $4.00 per share, then each share of series E preferred stock shall be convertible into a number of shares of common stock equal to two (2) times the stated value ($4.00 per share), divided by such closing market price on the date of conversion; or (ii) if such closing market price is equal to or greater than $4.00 per share, then each share of series E preferred stock shall be convertible into two (2) shares of common stock. In addition, upon the earlier to occur of: (a) the closing of the sale of shares of common stock to the public at a price of at least $3.00 per share in a public offering pursuant to an effective registration statement or offering statement under the Securities Act resulting in at least $3,000,000 of gross proceeds to the Company, (b) the date on which the shares of common stock of the Company are listed on a national stock exchange, including without limitation the New York Stock Exchange, NYSE American or the Nasdaq Stock Market (any tier), or (c) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least 67% of the then outstanding shares of series E preferred stock, voting together as a single class, each share of series E preferred stock shall be automatically converted into such number of shares of common stock as is determined in accordance with the provisions above. Such conversion price is subject to standard adjustments in the event of any stock dividends, stock reclassifications and similar events (but not for reverse stock splits).

 

Series F-1 Preferred Stock

 

Ranking. The series F-1 preferred stock ranks, with respect to the distribution of assets upon liquidation, (i) senior to all common stock, series A preferred stock and to each other class or series that is not expressly made senior to or on parity with the series F-1 preferred stock; (ii) on parity with the series B preferred stock, series C preferred stock, series E preferred stock, series J preferred stock, series L preferred stock and each other class or series that is not expressly subordinated or made senior to the series F-1 preferred stock; and (iii) junior to the series I preferred stock, series N senior convertible preferred stock, series R convertible preferred stock, series X senior convertible preferred stock and to each other series of preferred stock and each class or series that is expressly made senior to the series F-1 preferred stock, as well as to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company.

 

Dividend Rights. The holders of series F-1 preferred stock are entitled to receive dividends equal (on an as converted to common stock basis) to and in the same form as dividends actually paid on shares of common stock when, as and if such dividends are paid on shares of common stock. No other dividends shall be paid on shares of series F-1 preferred stock.

 

Liquidation Rights. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders of series F-1 preferred stock shall be entitled to receive out of the assets of the Company the same amount that a holder of common stock would receive if the shares of series F-1 preferred stock were fully converted to common stock immediately prior to such liquidation, which amount shall be paid to the holders of series F-1 preferred stock pari passu with all holders of parity securities and in preference to the holders of junior securities.

 

 

 

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Voting Rights. Except as provided by law, the holders of series F-1 preferred stock shall have no voting rights. However, as long as any shares of series F-1 preferred stock are outstanding, the Company shall not, without the affirmative vote of the holders of a majority of outstanding series F-1 preferred stock, (a) alter or change adversely the powers, preferences or rights given to the series F-1 preferred stock or alter or amend the certificate of designation for the series F-1 preferred stock, or (b) amend the Company’s amended and restated articles of incorporation or other charter documents in any manner that adversely affects any rights of the holders of series F-1 preferred stock.

 

Conversion Rights. Each share of series F-1 preferred stock is convertible, at any time and from time to time at the option of the holder thereof, into such number of shares of common stock as is determined as follows: (i) if the closing market price of the common stock on the principal trading market on which the common stock is then traded or quoted is less than $4.00 per share, then each share of series F-1 preferred stock shall be convertible into a number of shares of common stock equal to two (2) times the stated value ($4.00 per share), divided by such closing market price on the date of conversion; or (ii) if such closing market price is equal to or greater than $4.00 per share, then each share of series F-1 preferred stock shall be convertible into two (2) shares of common stock. In addition, upon the earlier to occur of: (a) the closing of the sale of shares of common stock to the public at a price of at least $3.00 per share in a public offering pursuant to an effective registration statement or offering statement under the Securities Act resulting in at least $3,000,000 of gross proceeds to the Company, (b) the date on which the shares of common stock of the Company are listed on a national stock exchange, including without limitation the New York Stock Exchange, NYSE American or the Nasdaq Stock Market (any tier), or (c) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least 67% of the then outstanding shares of series F-1 preferred stock, voting together as a single class, each share of series F-1 preferred stock shall be automatically converted into such number of shares of common stock as is determined in accordance with the provisions above. Such conversion price is subject to standard adjustments in the event of any stock dividends, stock reclassifications and similar events (but not for reverse stock splits).

 

Redemption Rights. Holders of series F-1 preferred stock do not have any redemption rights. 

 

Series I Preferred Stock

 

Ranking. The series I preferred stock ranks, with respect to the distribution of assets upon liquidation, (i) senior to all common stock, series A preferred stock, series B preferred stock, series C preferred stock, series E preferred stock, series F-1 preferred stock, series J preferred stock, series L preferred stock and to each other class or series that is not expressly made senior to or on parity with the series I preferred stock; (ii) on parity with each class or series that is not expressly subordinated or made senior to the series I preferred stock; and (iii) junior to the series N senior convertible preferred stock, series R convertible preferred stock, series X senior convertible preferred stock and to each other series of preferred stock and each class or series that is expressly made senior to the series I preferred stock, as well as to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company.

 

Dividend Rights. The holders of series I preferred stock are entitled to receive dividends equal (on an as converted to common stock basis) to and in the same form as dividends actually paid on shares of common stock when, as and if such dividends are paid on shares of common stock. No other dividends shall be paid on shares of series I preferred stock.

 

Liquidation Rights. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders of series I preferred stock shall be entitled to receive out of the assets of the Company the same amount that a holder of common stock would receive if the shares of series I preferred stock were fully converted to common stock immediately prior to such liquidation, which amount shall be paid to the holders of series I preferred stock pari passu with all holders of parity securities and in preference to the holders of junior securities.

 

Voting Rights. On any matter presented to stockholders for their action or consideration, each holder of series I preferred stock shall be entitled to cast five (5) votes per share of series I preferred stock held. Except as provided by law, the holders of series I preferred stock shall vote together with the holders of shares of common stock as a single class. However, as long as any shares of series I preferred stock are outstanding, the Company shall not, without the affirmative vote of the holders of a majority of outstanding series I preferred stock, (a) alter or change adversely the powers, preferences or rights given to the series I preferred stock or alter or amend the certificate of designation for the series I preferred stock, or (b) amend the Company’s amended and restated articles of incorporation or other charter documents in any manner that adversely affects any rights of the holders of series I preferred stock.

 

 

 

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Conversion Rights. Each share of series I preferred stock is convertible, at any time and from time to time at the option of the holder thereof, into such number of shares of common stock as is determined as follows: (i) if the closing market price of the common stock on the principal trading market on which the common stock is then traded or quoted is less than $4.00 per share, then each share of series I preferred stock shall be convertible into a number of shares of common stock equal to two (2) times the stated value ($4.00 per share), divided by such closing market price on the date of conversion; or (ii) if such closing market price is equal to or greater than $4.00 per share, then each share of series I preferred stock shall be convertible into two (2) shares of common stock. In addition, upon the earlier to occur of: (a) the closing of the sale of shares of common stock to the public at a price of at least $3.00 per share in a public offering pursuant to an effective registration statement or offering statement under the Securities Act resulting in at least $10,000,000 of gross proceeds to the Company, (b) the date on which the shares of common stock of the Company are listed on a national stock exchange, including without limitation the New York Stock Exchange, NYSE American or the Nasdaq Stock Market (any tier), or (c) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least 67% of the then outstanding shares of series I preferred stock, voting together as a single class, each share of series I preferred stock shall be automatically converted into such number of shares of common stock as is determined in accordance with the provisions above. Such conversion price is subject to standard adjustments in the event of any stock dividends, stock reclassifications and similar events (but not for reverse stock splits).

 

Redemption Rights. Holders of series I preferred stock do not have any redemption rights.

 

Series J Preferred Stock

 

Ranking. The series J preferred stock ranks, with respect to the distribution of assets upon liquidation, (i) senior to all common stock, series A preferred stock and to each other class or series that is not expressly made senior to or on parity with the series J preferred stock; (ii) on parity with the series B preferred stock, series C preferred stock, series E preferred stock, series F-1 preferred stock, series L preferred stock and each other class or series that is not expressly subordinated or made senior to the series J preferred stock; and (iii) junior to the series I preferred stock, series N senior convertible preferred stock, series R convertible preferred stock, series X senior convertible preferred stock and to each other series of preferred stock and each class or series that is expressly made senior to the series J preferred stock, as well as to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company.

 

Dividend Rights. The holders of series J preferred stock are entitled to receive dividends equal (on an as converted to common stock basis) to and in the same form as dividends actually paid on shares of common stock when, as and if such dividends are paid on shares of common stock. No other dividends shall be paid on shares of series J preferred stock.

 

Liquidation Rights. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders of series J preferred stock shall be entitled to receive out of the assets of the Company the same amount that a holder of common stock would receive if the shares of series J preferred stock were fully converted to common stock immediately prior to such liquidation, which amount shall be paid to the holders of series J preferred stock pari passu with all holders of parity securities and in preference to the holders of junior securities.

 

Voting Rights. On any matter presented to stockholders for their action or consideration, each holder of series J preferred stock shall be entitled to cast one (1) vote per share of series J preferred stock held. Except as provided by law, the holders of series J preferred stock shall vote together with the holders of shares of common stock as a single class. However, as long as any shares of series J preferred stock are outstanding, the Company shall not, without the affirmative vote of the holders of a majority of outstanding series J preferred stock, (a) alter or change adversely the powers, preferences or rights given to the series J preferred stock or alter or amend the certificate of designation for the series J preferred stock, or (b) amend the Company’s amended and restated articles of incorporation or other charter documents in any manner that adversely affects any rights of the holders of series J preferred stock.

 

 

 

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Conversion Rights. Each share of series J preferred stock is convertible, at any time and from time to time at the option of the holder thereof, into such number of shares of common stock as is determined as follows: (i) if the closing market price of the common stock on the principal trading market on which the common stock is then traded or quoted is less than $4.00 per share, then each share of series J preferred stock shall be convertible into a number of shares of common stock equal to two (2) times the stated value ($4.00 per share), divided by such closing market price on the date of conversion; or (ii) if such closing market price is equal to or greater than $4.00 per share, then each share of series J preferred stock shall be convertible into two (2) shares of common stock. In addition, upon the earlier to occur of: (a) the closing of the sale of shares of common stock to the public at a price of at least $3.00 per share in a public offering pursuant to an effective registration statement or offering statement under the Securities Act resulting in at least $3,000,000 of gross proceeds to the Company, (b) the date on which the shares of common stock of the Company are listed on a national stock exchange, including without limitation the New York Stock Exchange, NYSE American or the Nasdaq Stock Market (any tier), or (c) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least 67% of the then outstanding shares of series J preferred stock, voting together as a single class, each share of series J preferred stock shall be automatically converted into such number of shares of common stock as is determined in accordance with the provisions above. Such conversion price is subject to standard adjustments in the event of any stock dividends, stock reclassifications and similar events (but not for reverse stock splits).

 

Redemption Rights. Holders of series J preferred stock do not have any redemption rights.

 

Series L Preferred Stock

 

Ranking. The series L preferred stock ranks, with respect to the distribution of assets upon liquidation, (i) senior to all common stock, series A preferred stock and to each other class or series that is not expressly made senior to or on parity with the series L preferred stock; (ii) on parity with the series B preferred stock, series C preferred stock, series E preferred stock, series F-1 preferred stock, series J preferred stock and each other class or series that is not expressly subordinated or made senior to the series L preferred stock; and (iii) junior to the series I preferred stock, series N senior convertible preferred stock, series R convertible preferred stock, series X senior convertible preferred stock and to each other series of preferred stock and each class or series that is expressly made senior to the series L preferred stock, as well as to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company.

 

Dividend Rights. The holders of series L preferred stock are entitled to receive dividends equal (on an as converted to common stock basis) to and in the same form as dividends actually paid on shares of common stock when, as and if such dividends are paid on shares of common stock. No other dividends shall be paid on shares of series L preferred stock.

 

Liquidation Rights. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders of series L preferred stock shall be entitled to receive out of the assets of the Company the same amount that a holder of common stock would receive if the shares of series L preferred stock were fully converted to common stock immediately prior to such liquidation, which amount shall be paid to the holders of series L preferred stock pari passu with all holders of parity securities and in preference to the holders of junior securities.

 

Voting Rights. On any matter presented to stockholders for their action or consideration, each holder of series L preferred stock shall be entitled to cast one (1) vote per share of series L preferred stock held. Except as provided by law, the holders of series L preferred stock shall vote together with the holders of shares of common stock as a single class. However, as long as any shares of series L preferred stock are outstanding, the Company shall not, without the affirmative vote of the holders of a majority of outstanding series L preferred stock, (a) alter or change adversely the powers, preferences or rights given to the series J preferred stock or alter or amend the certificate of designation for the series L preferred stock, or (b) amend the Company’s amended and restated articles of incorporation or other charter documents in any manner that adversely affects any rights of the holders of series L preferred stock.

 

 

 

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Conversion Rights. Each share of series L preferred stock is convertible, at any time and from time to time at the option of the holder thereof, into such number of shares of common stock as is determined as follows: (i) if the closing market price of the common stock on the principal trading market on which the common stock is then traded or quoted is less than $4.00 per share, then each share of series L preferred stock shall be convertible into a number of shares of common stock equal to two (2) times the stated value ($4.00 per share), divided by such closing market price on the date of conversion; or (ii) if such closing market price is equal to or greater than $4.00 per share, then each share of series L preferred stock shall be convertible into two (2) shares of common stock. In addition, upon the earlier to occur of: (a) the closing of the sale of shares of common stock to the public at a price of at least $3.00 per share in a public offering pursuant to an effective registration statement or offering statement under the Securities Act resulting in at least $3,000,000 of gross proceeds to the Company, (b) the date on which the shares of common stock of the Company are listed on a national stock exchange, including without limitation the New York Stock Exchange, NYSE American or the Nasdaq Stock Market (any tier), or (c) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least 67% of the then outstanding shares of series L preferred stock, voting together as a single class, each share of series L preferred stock shall be automatically converted into such number of shares of common stock as is determined in accordance with the provisions above. Such conversion price is subject to standard adjustments in the event of any stock dividends, stock reclassifications and similar events (but not for reverse stock splits).

 

Redemption Rights. Holders of series L preferred stock do not have any redemption rights.

 

Series Y Senior Preferred Stock

 

On May 15, 2024, in conjunction with the exchange of certain senior secured convertible promissory notes, 938,908 shares of series Y preferred senior convertible preferred stock were issued with an aggregate value of $3,755,632. See also Note 8. Convertible Notes Payable.

 

Ranking. The series Y senior convertible preferred stock ranks, with respect to the payment of dividends and the distribution of assets upon liquidation, (i) senior to all common stock and each series of preferred stock, and to each other class or series that is not expressly made senior to or on parity with the series Y senior convertible preferred stock; (ii) on parity with each class or series that is not expressly subordinated or made senior to the series Y senior convertible preferred stock; and (iii) junior to each class or series that is expressly made senior to the series Y senior convertible preferred stock.

 

Dividend Rights. Holders of series Y senior convertible preferred stock are entitled to dividends at a rate per annum of 10.0% of the stated value ($4.00 per share); provided that upon an event of default (as defined in the certificate of designation for the series Y senior convertible preferred stock), such rate shall increase by 5% per annum. Dividends shall accrue from day to day, whether or not declared, and shall be cumulative. Dividends shall be payable quarterly in arrears on each dividend payment date and may be paid in cash or common stock at our discretion; provided that the Company may only pay dividends in common stock if such common stock is free-trading, freely transferable, and does not contain a legend (or be subject to stop transfer or similar instructions) restricting the resale or transferability thereof. Dividends payable in common stock shall be calculated based on a price equal to eighty percent (80%) of the VWAP during the five (5) trading days immediately prior to the applicable payment date. At September 30, 2024, cumulative dividends earned on the series Y senior convertible preferred stock were $177,910. $147,555 of the cumulative accrued dividends was paid by the Company via the issuance of 12,135 shares of the Company’s common stock and 16,206 shares of the Company’s series Y senior convertible preferred stock as of September 30, 2024. At September 30, 2024, the total dividends payable was $30,354.

 

Liquidation Rights. Subject to the rights of creditors and the holders of any senior securities or parity securities (in each case, as defined in the certificate of designation), upon any liquidation event (as defined in the certificate of designation), before any payment or distribution of the assets of the Company (whether capital or surplus) shall be made to or set apart for the holders of junior securities (as defined in the certificate of designation), including the common stock, each holder of outstanding series Y senior convertible preferred stock shall be entitled to receive an amount of cash equal to the greater of (i) 100% of the stated value of $4.00 per share, plus an amount of cash equal to all accumulated accrued and unpaid dividends thereon (whether or not declared) to, but not including the date of final distribution to such holders or (ii) such amount per share as would have been payable had all shares of series Y senior convertible preferred stock been converted into common stock immediately prior to such liquidation event.

 

 

 

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Voting Rights. Holders of series Y senior convertible preferred stock do not have any voting rights; provided that, so long as any shares of series Y senior convertible preferred stock are outstanding, the affirmative vote of holders of a majority of the series Y senior convertible preferred stock, which majority must include Leonite Capital LLC so long as it holds any shares of series Y senior convertible preferred stock, voting as a separate class, shall be necessary for approving, effecting or validating any amendment, alteration or repeal of any of the provisions of the certificate of designation, prior to the Company’s issuance of additional shares of series Y senior convertible preferred stock or prior to the creation or issuance of any securities that are not subordinate to the series Y senior convertible preferred stock or new indebtedness (as defined in the certificate of designation); provided that the foregoing shall not apply to any financing transaction the use of proceeds of which will be used to redeem the series Y senior convertible preferred stock in full.

 

Conversion Rights. Commencing on the first anniversary of the date on which the Company’s common stock begins trading on the Nasdaq Stock Market, each share of series Y senior convertible preferred stock, plus all accrued and unpaid dividends thereon, shall be convertible, at the option of the holder thereof, at any time and from time to time, into such number of fully paid and nonassessable shares of common stock determined by dividing the stated value ($4.00 per share), plus the value of the accrued, but unpaid, dividends thereon, by a conversion price equal to the lowest VWAP during the five (5) trading days immediately prior to the applicable conversion date. Such conversion price is subject to adjustment if the Company issues common stock at a price lower than such conversion price, subject to certain exceptions. Notwithstanding the foregoing, in no event shall the holder of any series Y senior convertible preferred stock be entitled to convert any number of shares that upon conversion the sum of (i) the number of shares of common stock beneficially owned by the holder and its affiliates and (ii) the number of shares of common stock issuable upon the conversion of the series Y senior convertible preferred stock with respect to which the determination of this proviso is being made, would result in beneficial ownership by the holder and its affiliates of more than 4.99% of the then outstanding common stock. This limitation may be waived (up to a maximum of 9.99%) by the holder and in its sole discretion, upon not less than sixty-one (61) days’ prior notice to the Company.

 

Preferred Stock Transactions

 

During the nine months ended September 30, 2024, the Company executed the following transactions:

 

	·	On January 19, 2024, the Company issued 62,500 shares of series I preferred stock to each of Daniel R. Thompson, the Chairman of the Board, and Alex Cunningham, the Company’s Chief Executive Officer, for $250,000 bonus compensation for the fiscal year of 2023, at the fair value of $4.48 per share.
	·	On January 31, 2024, the Company issued 5,000 shares of series I preferred stock to Matthew Shafer, the Company’s Chief Financial Officer, for $20,000, at the fair value of $4.48 per share.
	·	On January 31, 2024, the Company issued 2,500 shares of series I preferred stock to Zia Choe, the Company’s Chief Accounting Officer, for $10,000, at the fair value of $4.48 per share.
		In connection with these aforementioned shares issuances on January 19, 2024 and January 31, 2024, the Company engaged a valuation specialist to perform a business valuation monte carlo simulation for the series I preferred stock resulting in those indicated fair values.
	·	An aggregate of 1,385,549 shares of series B preferred stock were converted into an aggregate of 2,771,098 shares of common stock.
	·	An aggregate of 78 shares of series C preferred stock were converted into an aggregate of 780,000 shares of common stock.
	·	An aggregate of 80,375 shares of series E preferred stock were converted into an aggregate of 160,750 shares of common stock.

 

 

 

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	·	An aggregate of 26,252 shares of series F-1 preferred stock were converted into an aggregate of 52,504 shares of common stock.
	·	An aggregate of 3,477,000 shares of series I preferred stock were converted into an aggregate of 6,954,000 shares of common stock.
	·	An aggregate of 1,713,584 shares of series J preferred stock were converted into an aggregate of 3,427,168 shares of common stock.
	·	2 shares of series C preferred stock were cancelled, which were issued erroneously.
	·	165 shares of series R preferred stock were cancelled as part of the settlement agreement described in Note 7. Notes and Loans Payable
	·	On May 15, 2024, in conjunction with the exchange of certain senior secured convertible promissory notes, 938,908 shares of series Y senior convertible preferred stock were issued with an aggregate value of $3,755,632.
	·	On September 25, 2024, 16,206 shares of series Y senior convertible preferred stock were issued with an aggregate value of $64,824 as payment of accrued dividends.

 

During the nine months ended September 30, 2023, the Company executed the following transaction:

 

	·	On May 25, 2023, the Company issued 3,150 shares of series B preferred stock to Zia Choe, Interim Chief Financial Officer for $25,000.
	·	On July 24, 2023, the Company issued 5,000 shares of series E preferred stock as compensation for the property manager of Edge View in exchange for a bonus of $5,000.

 

Common Stock

 

In addition to the issuance of common stock from the conversions of preferred stock noted above, during the nine months ended September 30, 2024, the Company executed the following transactions:

 

	·	The Company issued an aggregate of 234,909 shares of common stock in payment of various accrued dividends on the series N, series X and series Y preferred stock.
	·	The Company issued 1,222 shares of common stock upon conversion of certain convertible notes.
	·	On March 5, 2024, the Company issued 7,500 shares of common stock to an investor relation service provider. The Company recognized the fair value for the issuance of the 7,500 shares at $1.55 per share on the closing market price of March 5, 2024 and recorded selling, general and administrative expense of $11,617 in the consolidated statement of operations.
	·	On March 26, 2024, the Company issued an aggregate of 30,000 shares of common stock to three board members. The Company recognized the fair value for the issuance of 30,000 shares at $6.50 per share on the closing market price of March 26, 2024 and recorded share-based compensation expense of $195,000 in the consolidated statement of operations.

 

 

 

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	·	In February 2024, as part of the Red Rock settlement executed in July 2022, the Company issued an aggregate of 37,104 shares of common stock to six previous owners. The Company recognized the fair value for the issuance of 37,104 shares at $3 per share on the closing market price of February 4 through February 6, 2024, and recorded share loss from discontinued operations of $111,312 in the consolidated statement of operations.
	·	In September 2024, the Company issued an aggregate of 74,225 shares of common stock as part of a legal settlement.

 

During the nine months ended September 30, 2023, the Company executed the following transaction:

 

·

During the nine months ended September 30, 2023, the Company issued 3,662 shares of common stock upon conversion of certain convertible notes.

 

 

10.

WARRANTS

 

The table below sets forth warrant activity during the nine months ended September 30, 2024 and 2023:

Schedule of warrant activity
		Number of Warrants				Weighted Average Exercise Price
Balance at January 1, 2024			3,150			$	1,162.76
Granted			–				–
Exercised			–				–
Expired			(3	)			135.00
Balance at September 30, 2024			3,147				1,163.74
Warrants Exercisable at September 30, 2024			3,147			$	1,162.76

 

		Number of Warrants				Weighted Average Exercise Price
Balance at January 1, 2023			3,153			$	1,162.17
Granted			–				–
Exercised			–				–
Expired			(3	)			547.50
Balance at September 30, 2023			3,150				1,162.76
Warrants Exercisable at September 30, 2023			3,150			$	1,162.76

 

 

11.	DISCONTINUED OPERATIONS

 

On November 10, 2023, the Company sold Platinum Tax, which was a full-service tax resolution firm located in Los Angeles, California. Through this subsidiary the Company provided fee-based tax resolution services to individuals and companies that have federal and state tax liabilities by assisting clients to settle outstanding tax debts. As part of the Asset Purchase Agreement between the Company and the purchaser, the assets that were purchased included substantially all assets, rights, interests, and licenses except for banks accounts in place prior to the sale for the purchase consideration of 15% of cash collected by the purchaser within one year following the sale date.

 

 

 

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In February 2024, as part of the Red Rock settlement executed in July 2022, the Company issued an aggregate of 37,104 shares of common stock to six previous owners. The Company recognized the fair value for the issuance of 37,104 shares at $3 per share on the closing market price of February 4 through February 6, 2024, and recorded share loss from discontinued operations of $111,312 in the consolidated statement of operations.

 

Schedule of discontinued operations
Net liabilities of discontinued operations		September 30, 2024				December 31, 2023
Cash		$	342			$	342
Accounts receivable			300				300
Accounts payable and accrued expenses			238,285				238,285
Net liabilities of discontinued operations		$	(237,643	)		$	(237,643	)

		Three Months Ended September 30,
Gain (Loss) from discontinued operations		2024				2023
Revenue		$	–			$	32,264
Cost of sales			–				(5,604	)
Selling, general and administrative expenses			–				(30,067	)
Interest expense			–				(298	)
Settlement loss			–				–
Loss from discontinued operations		$	–			$	(3,705	)

		Nine Months Ended September 30,
Gain (Loss) from discontinued operations		2024				2023
Revenue		$	–			$	304,967
Cost of sales			–				(53,730	)
Selling, general and administrative expenses			–				(341,900	)
Interest expense			–				(2,342	)
Settlement loss			(111,312	)			–
Loss from discontinued operations		$	(111,312	)		$	(93,005	)

 

 

12.

GOODWILL

 

The Company reviews goodwill for impairment on a reporting unit basis annually and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. During the nine months ended September 30, 2024 and 2023, the Company determined there to be no impairment.

 

 

 

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13.	COMMITMENTS AND CONTINGENCIES

 

Leases

 

ASC 842, “Leases”, requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. The Company adopted ASC 842, January 1, 2020, using the effective date method and elected certain practical expedients allowing the Company not to reassess:

 

	·	whether expired or existing contracts contain leases under the new definition of a lease;
	·	lease classification for expired or existing leases; and
	·	whether previously capitalized initial direct costs would qualify for capitalization under Topic 842.

 

The Company also made the accounting policy decision not to recognize lease assets and liabilities for leases with a term of 12 months or less.

 

The Company leases twelve medical facilities and one vehicle as operating leases as of September 30, 2024. The Company recorded operating lease expenses of $126,831 and $76,466 for the three months ended September 30, 2024 and 2023, respectively, and the Company recorded operating lease expense of $327,008 and $210,696 for the nine months ended September 30, 2024 and 2023, respectively.

 

The Company has operating leases with future commitments as follows:

Schedule of operating leases with future commitments
		Amount
October 2024 – September 2025		$	251,214
October 2025 – September 2026			171,507
October 2026 – September 2027			77,871
Total Future Undiscounted Lease Payments		$	464,459
Less imputed interest			36,132
Total lease obligations		$	464,459

 

The following table summarizes supplemental information about the Company’s leases: 

Schedule of supplemental information about the Company’s leases
Weighted-average remaining lease term			2.37 years
Weighted-average discount rate			6.38%

 

Employees

 

The Company agreed to pay $360,000 per year and $200,000 of targeted annual incentives to the Chief Executive Officer based on his employment agreement since July 1, 2020, of which 50% was being paid in cash and 50% was being accrued through December 31, 2023. As of January 1, 2024, these are being paid in cash. The total outstanding accrued compensation as of September 30, 2024 and December 31, 2023 was $2,115,500 and $2,365,500, respectively.

 

 

 

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The Company agreed to pay $360,000 per year and $200,000 of targeted annual incentives to the Chairman of the Board based on his employment agreement since July 1, 2020, of which 50% was being paid in cash and 50% was being accrued through April 30, 2024. As of May 1, 2024, these are being paid in cash. The total outstanding accrued compensation as of September 30, 2024 and December 31, 2023 was $2,220,500 and $2,350,500, respectively.

 

The Company agreed to pay $228,000 per year to the Chief Financial Officer based on his employment agreement effective as of January 2, 2024. There was no outstanding accrued compensation as of September 30, 2024.

 

The Company agreed to pay $210,000 per year to the former Chief Accounting Officer based on her employment agreement effective as of January 2, 2024. There was no outstanding accrued compensation as of September 30, 2024.

 

The Company agreed to pay $156,000 per year to the previous Chief Financial Officer based on his amended employment agreement executed on May 15, 2021. The total outstanding accrued compensation as of September 30, 2024 and December 31, 2023 was $17,057.

 

The Company entered into a management agreement effective May 31, 2021 for compensation to the principals of Nova in the form of an annual base salaries of $372,000 to one of the three doctors, $450,000 to the second, and $372,000 to the third doctor. Collectively, as a group, such principals will receive an annual cash bonus and stock equity set forth below, which will be conditioned upon the Company achieving 100% of the annual objectives of financial performance goals as set forth below.

Schedule of annual objectives of financial performance goals
Year		Minimum Annual Nova EBITDA		Cash Annual Bonus		Series J Preferred Stock
2021		$2.0M		$120,000		120,000 Shares
2022		$2.4M		$150,000		135,000 Shares
2023		$3.7M		$210,000		150,000 Shares
2024		$5.5M		$300,000		180,000 Shares
2025		$8.0M		$420,000		210,000 Shares

 

 

14.	LEGAL PROCEEDINGS

 

From time to time, the Company may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm the Company’s business. Management is not currently aware of any such legal proceedings or claims that it believes will have a material adverse effect on the Company’s business, financial condition, or operating results.

 

 

15.	INCOME TAXES

 

At September 30, 2024, the Company had federal and state net operating loss carry forwards of approximately $24 million that expire in various years through the year 2039. Due to current period losses and carryforwards of past net operating losses, there is no provision for current federal or state income taxes for the three and nine months ended September 30, 2024 and 2023.

 

 

 

43

 

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for federal and state income tax purposes. The Company has a deferred tax asset that consists of net operating loss carry forwards calculated using federal and state effective tax rates. Because of the Company’s lack of past earnings history, the deferred tax asset has been fully offset by a valuation allowance.

 

 

16.	SEGMENT REPORTING

 

As of September 30, 2024, the Company had two reportable operating segments as determined by management using the “management approach” as defined by the authoritative guidance on Disclosures about Segments of an Enterprise and Related Information.

 

	(1)	Healthcare (Nova)
	(2)	Real Estate (Edge View)

 

These segments are a result of differences in the nature of the products and services sold. Corporate administration costs, which include, but are not limited to, general accounting, human resources, legal and credit and collections, are partially allocated to the two operating segments. Other revenue consists of nonrecurring items.

 

The healthcare segment provides a full range of diagnostic and surgical services for injuries and disorders of the skeletal system and associated bones, joints, tendons, muscles, ligaments, and nerves.

 

The real estate segment consists of Edge View, a real estate company that owns five (5) acres zoned medium density residential (MDR) with 12 lots already platted, six (6) acres zoned high-density residential (HDR) that can be platted in various configurations to meet current housing needs, and twelve (12) acres zoned in Lemhi County as Agriculture that is available for further annexation into the City of Salmon for development, as well as a common area for landowners to view wildlife, provide access to the Salmon River and fishing in a two (2) acre pond.

 

Management uses numerous tools and methods to evaluate and measure of its subsidiaries’ success. To help succeed, management retains the prior owners of the subsidiaries and allow them to do what they do best is run the business. Additionally, management monitors key metrics primarily revenues and net income from operations.

Schedule of revenues and net income from operations
Asset:		September 30, 2024				December 31, 2023
Healthcare		$	20,155,319			$	18,955,991
Real Estate			578,620				587,456
Corporate, administration and other			2,780,823				1,202,364
Consolidated assets		$	23,514,762			$	20,745,811

 

 

 

44

 

 

		Three Months Ended September 30,
		2024				2023 (Restated)
Revenues:
Healthcare		$	1,355,641			$	3,405,859
Real Estate			–				–
Consolidated revenues		$	1,355,641			$	3,405,859
Cost of sales:
Healthcare		$	1,000,601			$	551,423
Real Estate			–				–
Consolidated cost of sales		$	1,000,601			$	551,423
Income from operations from subsidiaries
Healthcare		$	138,197			$	2,610,188
Real Estate			(4,000	)			(278	)
Income from operations from subsidiaries		$	134,197			$	2,609,910
Loss from operations from Cardiff Lexington		$	(719,357	)		$	(336,516	)
Total income from operations		$	(585,160	)		$	2,273,394
Income (loss) before taxes
Healthcare		$	138,197			$	2,521,820
Real Estate			(4,000	)			(278	)
Corporate, administration and other non-operating expenses			(2,112,165	)			(536,316	)
Consolidated (loss) income before taxes		$	(1,977,968	)		$	1,985,226

 

 

 

45

 

 

		Nine Months Ended September 30,
		2024				2023 (Restated)
Revenues:
Healthcare		$	5,149,416			$	9,476,764
Real Estate			–				–
Consolidated revenues		$	5,149,416			$	9,476,764
Cost of sales:
Healthcare		$	2,741,765			$	2,589,407
Real Estate			–				–
Consolidated cost of sales		$	2,741,765			$	2,589,407
Income (loss) from operations from subsidiaries
Healthcare		$	1,739,099			$	5,994,978
Real Estate			(8,836	)			(2,118	)
Income from operations from subsidiaries		$	1,730,263			$	5,992,860
Loss from operations from Cardiff Lexington		$	(2,255,914	)		$	(1,212,479	)
Total (loss) income from operations		$	(525,651	)		$	4,780,381
Income (loss) before taxes
Healthcare		$	1,739,099			$	4,717,363
Real Estate			(8,836	)			(2,118	)
Corporate, administration and other non-operating expenses			(4,011,608	)			(1,840,632	)
Consolidated (loss) income before taxes		$	(2,281,345	)		$	2,874,613

 

 

17.	SUBSEQUENT EVENTS

 

The Company has evaluated its operations subsequent to September 30, 2024 to the date these consolidated financial statements were available to be issued and determined the following subsequent events and transactions required disclosure in these consolidated financial statements.

 

	·	On October 14, 2024, the Company issued 9,453 shares of series X senior convertible preferred stock with an aggregate value of $37,808 as payment of accrued dividends.
	·	On October 25, 2024, an aggregate of 41,812 shares of series B preferred stock were converted into an aggregate of 83,624 shares of common stock.
	·	On October 25, 2024, an aggregate of 8 shares of series C preferred stock were converted into an aggregate of 80,000 shares of common stock.
	·	On October 25, 2024, an aggregate of 50,000 shares of series I preferred stock were converted into an aggregate of 100,000 shares of common stock.
	·	On October 25, 2024, the Company issued 26,256 shares of series N senior convertible preferred stock with an aggregate value of $105,023 as payment of accrued dividends.
	·	On October 28, 2024, 1 share of series C preferred stock was converted into 10,000 shares of common stock.

 

 

 

 

ITEM 2.

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

 

The following management’s discussion and analysis of financial condition and results of operations provides information that management believes is relevant to an assessment and understanding of our plans and financial condition. The following financial information is derived from our financial statements and should be read in conjunction with such financial statements and notes thereto set forth elsewhere herein.

 

Use of Terms

 

Except as otherwise indicated by the context and for the purposes of this report only, references in this report to “we,” “us,” “our” and “our company” are to Cardiff Lexington Corporation, a Nevada corporation, and its consolidated subsidiaries.

 

Special Note Regarding Forward-Looking Statements

 

This report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, that are based on our management’s beliefs and assumptions and on information currently available to us. All statements other than statements of historical facts are forward-looking statements. These statements relate to future events or to our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements include, but are not limited to, statements about:

 

	·	our ability to successfully identify and acquire additional businesses;
	·	our ability to effectively integrate and operate the businesses that we acquire;
	·	our expectations around the performance of our current businesses;
	·	our ability to maintain our business model and improve our capital efficiency;
	·	our ability to effectively manage the growth of our business;
	·	our ability to maintain profitability;
	·	the competitive environment in which our businesses operate;
	·	trends in the industries in which our businesses operate;
	·	the regulatory environment in which our businesses operate under;
	·	changes in general economic or business conditions or economic or demographic trends in the United States, including changes in interest rates and inflation;
	·	our ability to service and comply with the terms of indebtedness;
	·	our ability to retain or replace qualified employees of our businesses;
	·	labor disputes, strikes or other employee disputes or grievances;
	·	casualties, condemnation or catastrophic failures with respect to any of our business’ facilities;
	·	costs and effects of legal and administrative proceedings, settlements, investigations and claims; and
	·	extraordinary or force majeure events affecting the business or operations of our businesses.

 

In some cases, you can identify forward-looking statements by terms such as “may,” “could,” “will,” “should,” “would,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “project” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under Item 1A “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2023. If one or more of these risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance.

 

 

 

 

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this report, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

 

The forward-looking statements made in this report relate only to events or information as of the date on which the statements are made in this report. Except as expressly required by the federal securities laws, there is no undertaking to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.

 

Overview

 

We are an acquisition holding company focused on locating undervalued and undercapitalized companies, primarily in the healthcare industry, and providing them capitalization and leadership to maximize the value and potential of their private enterprises while also providing diversification and risk mitigation for our stockholders. Specifically, we have and will continue to look at a diverse variety of acquisitions in the healthcare sector in terms of growth stages and capital structures and we intend to focus our portfolio of subsidiaries approximately as follows: 80% will be targeted to established profitable niche small to mid-sized healthcare companies and 20% will be targeted to second stage startups in healthcare and related financial services (emerging businesses with a strong organic growth plan that is materially cash generative).

 

On May 31, 2021, we acquired Nova Ortho and Spine, LLC, or Nova, which operates a group of regional primary specialty and ancillary care facilities throughout Florida that provide traumatic injury victims with primary care evaluations, interventional pain management, and specialty consultation services. We focus on plaintiff related care are and a highly efficient provider of emergency medical condition, or EMC, assessments. We provide a full range of diagnostic and surgical services for injuries and disorders of the skeletal system and associated bones, joints, tendons, muscles, ligaments, and nerves. From sports injuries, to sprains, strains, and fractures, our doctors are dedicated to helping patients return to active lifestyles.

 

We also own a real estate company, Edge View Properties, Inc., or Edge View, which we acquired on July 16, 2014. Edge View owns five (5) acres zoned medium density residential (MDR) with 12 lots already platted, six (6) acres zoned high-density residential (HDR) that can be platted in various configurations to meet current housing needs, and twelve (12) acres zoned in Lemhi County as Agriculture that is available for further annexation into the City of Salmon for development, as well as a common area for landowners to view wildlife, provide access to the Salmon River and fishing in a two (2) acre pond. Management has invested years working to develop a new and exciting housing development in Salmon, Idaho and plans to enter into a joint venture agreement with a developer for this planned concept development.

 

All of our operations are conducted through, and our income derived from, our two subsidiaries.

 

Segments

 

As of September 30, 2024, we had two reportable operating segments as determined by management using the “management approach” as defined by the authoritative guidance on Disclosures about Segments of an Enterprise and Related Information.

 

	(1)	Healthcare (Nova)
	(2)	Real Estate (Edge View)

 

These segments are a result of differences in the nature of the products and services sold. Corporate administration costs, which include, but are not limited to, general accounting, human resources, legal and credit and collections, are partially allocated to the three operating segments. Other revenue consists of nonrecurring items.

 

 

 

 

The healthcare segment provides a full range of diagnostic and surgical services for injuries and disorders of the skeletal system and associated bones, joints, tendons, muscles, ligaments, and nerves.

 

The real estate segment consists of Edge View, a real estate company that owns five (5) acres zoned medium density residential (MDR) with 12 lots already platted, six (6) acres zoned high-density residential (HDR) that can be platted in various configurations to meet current housing needs, and twelve (12) acres zoned in Lemhi County as Agriculture that is available for further annexation into the City of Salmon for development, as well as a common area for landowners to view wildlife, provide access to the Salmon River and fishing in a two (2) acre pond.

 

Management uses numerous tools and methods to evaluate and measure our subsidiaries’ success. To help succeed, management retains the prior owners of the subsidiaries and allows them to do what they do best is run the business. Additionally, management monitors key metrics primarily revenues and net income from operations.

 

Discontinued Operations

 

On November 10, 2023, we sold our financial services (tax resolution) business, Platinum Tax Defenders, or Platinum Tax, that we acquired on July 31, 2018, which was a full-service tax resolution firm located in Los Angeles, California. As part of the asset purchase agreement between us and the purchaser, the assets that were purchased included substantially all assets, rights, interests, and licenses, except for bank accounts in place prior to the sale, for the purchase consideration of 15% of cash collected by the purchaser within one year following the sale date. 

 

Results of Operations

 

Comparison of Three Months Ended September 30, 2024 and 2023

 

The following table sets forth key components of our results of operations during the three months ended September 30, 2024 and 2023, both in dollars and as a percentage of our revenue.

 

		Three Months Ended September 30,
		2024								2023 (Restated)
		Amount				% of Revenue				Amount				% of Revenue
Total revenue		$	1,355,641				100.00%			$	3,405,859				100.0%
Total cost of sales			1,000,601				73.81%				551,423				16.19%
Gross profit			355,040				26.19%				2,854,436				83.81%
Operating expenses
Depreciation expense			3,365				0.25%				3,365				0.10%
Selling, general and administrative			936,835				69.11%				577,677				16.96%
Total operating expenses			940,200				69.35%				581,042				17.06%
(Loss) income from continuing operations			(585,160	)			(43.16)%				2,273,394				66.75%
Other expense
Other expense			(6,767	)			(0.50)%				(1	)			–
Penalties and fees			–				–				(16,000	)			(0.47)%
Interest expense			(1,386,041	)			(102.24)%				(226,119	)			(6.64)%
Amortization of debt discounts			–				–				(46,048	)			(1.35)%
Total other expense			(1,392,808	)			(102.74)%				(288,168	)			(8.46)%
Net (loss) income before discontinued operations			(1,977,968	)			(145.91)%				1,985,226				58.29%
Loss from discontinued operations			–				–				(3,705	)			(0.11)%
Net (loss) income		$	(1,977,968	)			(145.91)%			$	1,981,521				58.18%

 

 

 

 

Revenue. For the three months ended September 30, 2024, and 2023, all of our revenue was generated by our healthcare segment, which generates revenue through a full range of diagnostic and surgical services. Our total revenue decreased by $2,050,218, or 60.20%, to $1,355,641 for the three months ended September 30, 2024 from $3,405,859 for the three months ended September 30, 2023. The decrease in revenue is primarily attributable to the following factors:

 

	·	The 2024 third quarter revenue was negatively impacted by the hurricanes that occurred in Florida during this timeframe. The harsh weather caused several of our facilities to shut down for periods of time due to storm damage as well as patients not being able to attend their appointments. All of our facilities have reopened.
	·	Prior to fiscal year 2024 we historically realized a 49% settlement rate from total gross billed charges. Accordingly, we had historically recognized net healthcare service revenue as 49% of gross billed amounts. Throughout the first half of 2024 as well as the third quarter of 2024, we underwent efforts to accelerate cash settlement of our accounts receivable to generate cash flow for operations. We did this by shortening our settlement negotiations timespan with attorneys and insurance companies and accepting lower settlement amounts. We expect this trend to continue in the short term as we work to settle our accounts receivables more quickly to generate cash flow for operations.
	·	Additionally, during the third quarter of 2024, we completed a thorough review of our third-party billing data, including reviewing historical reports and new reporting methods as a part of our updated analysis. Based upon this review it was determined that a 24-month lookback period should be used in the analysis of our historical settlement realization rates. As a result of the new efforts to accelerate cash settlement during the nine months ended September 30, 2024, we realized a 44% average settlement rate of our gross billed charges during this time frame, which were historically recorded in accounts receivable and revenue at 49% of gross billings. With the reduction in our estimate of our settlement realization rate from 49% to 44%, a $1,650,474 change in accounting estimate was taken during the third quarter of 2024 in our accounts receivable and revenue.

 

Cost of sales. Our cost of sales consists of surgical center and laboratory fees, physician and professional fees, salaries and wages and medical supplies. Our total cost of sales increased by $449,178, or 81.46%, to $1,000,601 for the three months ended September 30, 2024 from $551,423 for the three months ended September 30, 2023. As a percentage of revenue, cost of sale increased from 16.19% for the three months ended September 30, 2023 to 73.81% for the three months ended September 30, 2024. This increase is mainly attributable to increases in laboratory fees.

 

Gross profit. As a result of the foregoing, our total gross profit decreased by $2,499,396, or 87.56%, to $355,040 for the three months ended September 30, 2024 from $2,854,436 for the three months ended September 30, 2023. Our total gross margin (as a percent of revenue) decreased from 83.81% for the three months ended September 30, 2023 to 26.19% for the three months ended September 30, 2024.

 

Depreciation expense. Our depreciation expense was $3,365, or 0.25% of revenue, for the three months ended September 30, 2024, as compared to $3,365, or 0.10% of revenue, for the three months ended September 30, 2023.

 

Selling, general and administrative expenses. Our selling, general and administrative expenses consist primarily of accounting, auditing, legal and public reporting expenses, personnel expenses, including employee salaries, bonuses plus related payroll taxes and stock compensation expense, advertising expenses, professional advisor fees, rent expense, insurance and other expenses incurred in connection with general operations. Our selling, general and administrative expenses increased by $359,158, or 62.17%, to $936,835 for the three months ended September 30, 2024 from $577,677 for the three months ended September 30, 2023. As a percentage of revenue, our selling, general and administrative expenses were 69.11% and 16.96% for the three months ended September 30, 2024 and 2023, respectively. Increases were primarily attributable to increases in salaries and wages expense of $265,346, professional fees of $153,624, rent expense of $33,386, payroll taxes of $20,010, and board fee expense of $15,000, offset by a decrease in management fees of $180,000.

 

Total other income (expense). We had $1,392,808 in total other expense, net, for the three months ended September 30, 2024, as compared to total other expense, net, of $288,168 for the three months ended September 30, 2023. Other expense, net, for the three months ended September 30, 2024 consisted of interest expense of $1,386,041 and other expense of $6,767. Other expense, net, for the three months ended September 30, 2023 consisted of interest expense of $226,119, amortization of debt discounts of $46,048, financing penalties and fees of $16,000 and other expense of $1.

 

 

 

 

Discontinued operations. For the three months ended September 30, 2024 and 2023, we recorded a loss from discontinued operations of $0 and $3,705, respectively.

 

Net income (loss). As a result of the cumulative effect of the factors described above, our net loss was $1,977,968 for the three months ended September 30, 2024, as compared to net income of $1,981,521 for the three months ended September 30, 2023, a decrease of $3,959,489.

 

Comparison of Nine Months Ended September 30, 2024 and 2023

 

The following table sets forth key components of our results of operations during the nine months ended September 30, 2024 and 2023, both in dollars and as a percentage of our revenue.

 

		Nine Months Ended September 30,
		2024								2023 (Restated)
		Amount				% of Revenue				Amount				% of Revenue
Total revenue		$	5,149,416				100.00%			$	9,476,764				100.0%
Total cost of sales			2,741,765				53.24%				2,589,407				27.32%
Gross profit			2,407,765				46.76%				6,887,357				72.68%
Operating expenses
Depreciation expense			10,096				0.20%				11,365				0.12%
Share based compensation			300,225				5.83%				–				–
Selling, general and administrative			2,622,981				50.94%				2,095,611				22.11%
Total operating expenses			2,933,302				56.96%				2,106,976				22.23%
(Loss) income from continuing operations			(525,651	)			(10.21)%				4,780,381				50.44%
Other income (expense)
Other (expense) income			(4,720	)			(0.09)%				204				–
Gain on debt refinance and forgiveness			78,834				1.53%				390				–
Penalties and fees			(1,330	)			(0.03)%				(48,000	)			(0.51)%
Interest expense			(1,803,657	)			(35.03)%				(1,763,698	)			(18.61)%
Amortization of debt discounts			(24,821	)			(0.48)%				(94,664	)			(1.00)%
Total other expense			(1,755,694	)			(34.10)%				(1,905,768	)			(20.11)%
Net (loss) income before discontinued operations			(2,281,345	)			(44.30)%				2,874,613				30.33%
Loss from discontinued operations			(111,312	)			(2.16)%				(93,005	)			(0.98)%
Net (loss) income		$	(2,392,657	)			(46.46)%			$	2,781,608				29.35%

 

Revenue. Our total revenue decreased by $4,327,348, or 45.66%, to $5,149,416 for the nine months ended September 30, 2024 from $9,476,764 for the nine months ended September 30, 2023. The decrease in revenue is mainly attributable to the following factors:

 

·

The 2024 third quarter revenue was negatively impacted by the hurricanes that occurred in Florida during this timeframe. The harsh weather caused several of our facilities to shut down for periods of time due to storm damage as well as patients not being able to attend their appointments. All of our facilities have reopened.

 

 

 

	·	Our mix of services provided during the first nine months of the year with lower settlement realization rates from surgical procedures performed and an increase in the lower revenue pain management treatments being performed for approximately the same number of patient visits in the current nine-month period as compared to the same nine-month period in the prior year, also contributed to the decrease in revenue.
	·	Prior to fiscal year 2024, we historically realized a 49% settlement rate from total gross billed charges. Accordingly, we had historically recognized net healthcare service revenue as 49% of gross billed amounts. During the nine months ended September 30, 2024, we underwent efforts to accelerate cash settlement of our accounts receivable throughout 2024 to generate cash flow for operations. We did this by shortening our settlement negotiations timespan with attorneys’ insurance companies and accepting lower settlement amounts. We expect this trend to continue in the short term as we work to settle our accounts receivables more quickly to generate cash flow for operations.
	·	Additionally, during the third quarter of 2024, we completed a thorough review of our third-party billing data, including reviewing historical reports and new reporting methods as a part of our updated analysis. Based upon this review it was determined that a 24-month lookback period should be used in the analysis of our historical settlement realization rates. As a result of the new efforts to accelerate cash settlement during the nine months ended September 30, 2024, we realized a 44% average settlement rate of our gross billed charges during this time frame, which were historically recorded in accounts receivable and revenue at 49% of gross billings. Accordingly, we recorded a reduction to net revenue of $1,199,155 for the nine months ended September 30, 2024. Additionally, with the reduction in our estimate of our settlement realization rate from 49% to 44%, a $1,650,474 change in accounting estimate was taken during the third quarter of 2024 in our accounts receivable and revenue.

 

Cost of sales. Our total cost of sales increased by $152,358, or 5.88%, to $2,741,765 for the nine months ended September 30, 2024 from $2,589,407 for the nine months ended September 30, 2023. As a percentage of revenue, cost of sale increased from 27.32% for the nine months ended September 30, 2023 to 53.24% for the nine months ended September 30, 2024. This increase is mainly attributable to an increase in laboratory fees.

 

Gross profit. As a result of the foregoing, our total gross profit decreased by $4,479,706, or 65.04%, to $2,407,651 for the nine months ended September 30, 2024 from $6,887,357 for the nine months ended September 30, 2023. Our total gross margin (as a percent of revenue) decreased from 72.68% for the nine months ended September 30, 2023 to 46.76% for the nine months ended September 30, 2024.

 

Depreciation expense. Our depreciation expense was $10,096 or 0.20% of revenue, for the nine months ended September 30, 2024, as compared to $11,365, or 0.12% of revenue, for the nine months ended September 30, 2023.

 

Share based compensation expense. Our share-based compensation expense $300,225, or 5.83% of revenue, for the nine months ended September 30, 2024, as compared to $0 for the nine months ended September 30, 2023. The increase is due to stock issuances for investor relation services, stock issued to board members and stock issued as compensation for new employment bonuses to management.

 

Selling, general and administrative expenses. Our selling, general and administrative expenses increased by $527,370, or 25.17%, to $2,622,981 for the nine months ended September 30, 2024 from $2,095,611 for the nine months ended September 30, 2023. As a percentage of revenue, our selling, general and administrative expenses were 50.94% and 22.11% for the nine months ended September 30, 2024 and 2023, respectively. Increases were primarily attributable to increases in salaries and wages expense of $769,696, stock compensation expense of $93,600, professional fees of $60,367, investor relations and public company fees of $71,431, insurance expense of $71,635 and rent expense of $100,000, offset by decreases in management fees of $225,000, bad debt expense of $270,000, and penalties of $44,670.

 

Total other expense. We had $1,755,694 in total other expense, net, for the nine months ended September 30, 2024, as compared to total other expense, net, of $1,905,768 for the nine months ended September 30, 2023. Other expense, net, for the nine months ended September 30, 2024 consisted of interest expense of $1,803,657, amortization of debt discounts of $24,821, penalties and fees of $1,330, and other expenses of $4,720, offset by other income of $78,834 for the gain on debt refinance. Other expense, net, for the nine months ended September 30, 2023 consisted of interest expense of $1,763,698, amortization of debt discounts of $94,664 and financing penalties and fees of $48,000, offset by a gain on debt refinance and forgiveness of $390 and other income of $204.

 

 

 

 

Discontinued operations. For the nine months ended September 30, 2024 and 2023, we recorded a loss from discontinued operations of $111,312 and $93,005, respectively.

 

Net income (loss). As a result of the cumulative effect of the factors described above, our net loss for the nine months ended September 30, 2024 was $2,392,657, as compared to net income of $2,781,608 for the nine months ended September 30, 2023, a decrease of $5,174,265.

 

Liquidity and Capital Resources

 

As of September 30, 2024, we had $1,949,000 in cash. To date, we have financed our operations primarily through revenue generated from operations, sales of securities, advances from stockholders and third-party and related party debt.

 

We believe, based on our operating plan, that current working capital and current and expected additional financing should be sufficient to fund operations and satisfy our obligations as they come due for at least one year from the financial statement issuance date. However, additional funds from new financing and/or future equity raises are required for continued operations and to execute our business plan and our strategy of acquiring additional businesses. The funds required to sustain operations ranges between $600,000 to $1 million and additional funds execute our business plan will depend on the size, capital structure and purchase price consideration that the seller of a target business deems acceptable in a given transaction. The amount of funds needed to execute our business plan also depends on what portion of the purchase price of a target business the seller of that business is willing to take in the form of seller notes or our equity or equity in one of our subsidiaries. Given these factors, we believe that the amount of outside additional capital necessary to execute our business plan on the low end (assuming target company sellers accept a significant portion of the purchase price in the form of seller notes or our equity or equity in one of our subsidiaries) ranges between $4 million to $8 million. If, and to the extent, that sellers are unwilling to accept a significant portion of the purchase price in seller notes and equity, then the cash required to execute our business plan could be as much as $10 million.

 

We intend to raise capital for additional acquisitions primarily through equity and debt financings. The sale of additional equity securities could result in dilution to our stockholders. The incurrence of indebtedness would result in increased debt service obligations and could require us to agree to operating and financial covenants that would restrict our operations. Financing may not be available in amounts or on terms acceptable to us, if at all. There is no guarantee that we will be able to acquire additional businesses under the terms outlined above.

 

The financial statements were prepared on a going concern basis and do not include any adjustment with respect to these uncertainties.

 

Summary of Cash Flow

 

The following table provides detailed information about our net cash flow for the nine months ended September 30, 2024 and 2023.

 

		Nine Months Ended September 30,
		2024				2023 (Restated)
Net cash used in operating activities from continuing operations		$	(3,996,905	)		$	(557,542	)
Net cash provided by financing activities from continuing operations			4,968,250				426,671
Net change in cash			1,082,657				(37,866	)
Cash and cash equivalents at beginning of period			866,943				219,085
Cash and cash equivalents at end of period		$	1,949,600			$	181,219

 

 

 

 

Our net cash used in operating activities from continuing operations was $3,996,905 for the nine months ended September 30, 2024, as compared to $557,542 for the nine months ended September 30, 2023. The primary drivers of our net cash used in operating activities for the nine months ended September 30, 2024 are our net loss of $2,392,657, decreases of $1,492,966 in accounts receivable, $691,072 in accounts payable and other accrued expenses and $380,001 in accrued officer’s compensation, offset by share based compensation of $788,600. For the nine months ended September 30, 2023, our net income of $2,781,608, an increase in accounts payable and accrued expenses of $733,125, an increase in accrued officer’s compensation of $514,000, bad debt expense of $270,000 and an increase in accrued interest of $380,020, offset by a decrease in accounts receivable of $5,510,098, were the primary drivers for the cash used in operations.

 

We monitor outstanding cases as they develop through ongoing discussions with attorneys, doctors and our third-party medical billing company and additionally monitor our settlement realization rates over time. We have two primary methods of accelerating our cash settlement of our revenue and related accounts receivable. The first is through factoring our receivables, which was done in 2023, but ended prior to April 2023. The second method is through accepting lower settlement amounts during the final negotiations of the settlement, which is coordinated through our third-party medical billing company. When our third-party medical billing company is provided with a settlement amount of 49% of gross charges or greater they will accept. When presented with a lower amount we will discuss the reasons for the reduced rate and negotiate a higher rate. Shortening our negotiation timeframe will typically result in a lower settlement realization rate, but will accelerate the cash settlement of the outstanding accounts receivable. We began employing this second method in 2024, which reduced our settlement realization rate as described below. We have employed both methods from time to time to accelerate our cash settlement and may employ one or both in the future.

 

Prior to April 2023, we factored (sold) the vast majority of our accounts receivable to third party(s) to generate working capital to fund ongoing business operations and growth. For the nine months ended September 30, 2023, we factored a total of $544,196 of our accounts receivable in exchange for cash of $253,750. We ceased factoring of accounts receivable in the first quarter of 2023. The most recent average realization time for accounts receivable was approximately eighteen to twenty-four months from the initial date of service. Typically, a patient will have a series of dates of service over an average of 12 to 16 months.

 

Prior to fiscal year 2024, we historically realized a 49% settlement rate from total gross billed charges. Accordingly, we had historically recognized net healthcare service revenue as 49% of gross billed amounts. During the nine months ended September 30, 2024, we underwent efforts to accelerate cash settlement of our accounts receivable throughout 2024 to generate cash flow for operations. We did this by shortening our settlement negotiations with insurance companies and accepting lower settlement amounts. We expect this trend to continue in the short term as we work to settle our accounts receivables more quickly to generate cash flow for operations. Additionally, during the third quarter of 2024, we completed a thorough review of our third-party billing data, including reviewing historical reports and new reporting methods as a part of our updated analysis. Based upon this review it was determined that a 24-month lookback period should be used in the analysis of our historical settlement realization rates. As a result of the new efforts to accelerate cash settlement during the nine months ended September 30, 2024, we realized a 44% average settlement rate of our gross billed charges during this time frame, which were historically recorded in accounts receivable and revenue at 49% of gross billings. Accordingly, we recorded reductions to net revenue of $1,199,155 for the nine months ended September 30, 2024. Additionally, with the reduction in our estimate of our settlement realization rate from 49% to 44%, a $1,650,474 change in accounting estimate was taken during the third quarter of 2024 in our accounts receivable and revenue.

 

We had no investing activities for the nine months ended September 30, 2024 and 2023.

 

Our net cash provided by financing activities was $4,968,250 for the nine months ended September 30, 2024, as compared to $426,671 for the nine months ended September 30, 2023. Net cash provided by financing activities for the nine months ended September 30, 2024 consisted of the proceeds of $5,348,871 from line of credit, offset by the payment of $120,997 to a director, $105,080 paid on convertible notes payable, $100,000 in dividend payments, $50,000 paid on a note payable, and $4,545 in payments on the SBA loan described below. Net cash provided by financing activities for the nine months ended September 30, 2023 consisted of proceeds from convertible notes payable of $421,376 and proceeds from line of credit of $35,632, offset by repayments of line of credit of $28,784.

 

 

 

 

Convertible Notes

 

As of September 30, 2024, we had convertible debt outstanding net of amortized debt discount of $105,000. During the nine months ended September 30, 2024, we made $105,080 in principal payments and paid the total outstanding accrued interest on these notes in the amount of $22,780. We also paid $100,000 of accrued interest to a convertible noteholder.

 

On June 11, 2024, we entered into a settlement agreement and release of claims with the holder certain notes. Pursuant to the settlement agreement and release of claims, the holder agreed to cancel such notes in exchange for the fixed amount settlement promissory note in the principal amount of $535,000 described below. Additionally, during the nine months ended September 30, 2024, we exchanged certain notes for the issuance of 938,908 shares of series Y senior convertible preferred stock to the noteholder.

 

 On January 24, 2017, we issued a convertible promissory note in the principal amount of $80,000 for services rendered, which matured on January 24, 2018. This note is currently in default and accrues interest at a default interest rate of 20% per annum. On March 30, 2023, we executed an additional tranche under this note in the principal amount of $25,000. This note is currently in default and accrues interest at a default interest rate of 20% per annum. On August 11, 2023, we executed an additional tranche under this note in the principal amount of $25,000. This note accrues interest at a rate of 15% per annum.

 

Promissory Note – Settlement Agreement

 

On June 11, 2024, we entered into a settlement agreement and release of claims with the holder of 165 shares of series R convertible preferred stock and certain convertible promissory notes. Pursuant to the settlement agreement and release of claims, the holder agreed to cancel its shares of series R convertible preferred stock and convertible promissory notes in exchange for a new fixed amount settlement promissory note in the principal amount of $535,000. This transaction was accounted for as a debt extinguishment and a gain on settlement of $78,834 was recorded to the unaudited consolidated statement of operations for the nine months ended September 30, 2024, in accordance with FASB Topic 470 Borrower’s Accounting for Debt Modifications.

 

The note does not bear interest and requires fixed payments as follows: (i) if we raise at least $5 million but less than $6 million in our planned underwritten public offering, or the Offering, then we must pay $250,000 on the closing date of the Offering, with payments of $125,000, $125,000 and $35,000 to follow on the 90^th, 180^th, and 240^th days following the closing of the Offering, respectively; (ii) if we raise at least $6 million but less than $7 million in the Offering, then we must pay $390,000 on the closing date of the Offering and $145,000 on the 90^th day following the closing of the Offering; and (iii) if we raise at least $7 million in the Offering, then we must repay the entire principal amount on the closing date of the Offering. As the Offering was not completed by August 15, 2024, we are required to pay $25,000 on such date and to continue making payments of $25,000 on each monthly anniversary thereof until the entire principal amount is repaid in full. If the Offering is completed after August 15, 2024, then we are required to make payments as described in the schedule above. Notwithstanding the foregoing, if we abandon the Offering and conduct a new public offering thereafter, then we are required to make a payment of $100,000 on the closing date of such other public offering, a second payment of $100,000 on the 90^th day following the closing of such offering and $35,000 each month thereafter until the entire principal amount is repaid in full. If any portion of the principal amount remains unpaid on the second (2^nd) anniversary of the date of the note, it shall become immediately due and payable on such date. We may prepay the entire principal amount at any time without penalty. The note is unsecured and contains customary events of default for a loan of this type. Upon an event of default, interest would automatically begin to accrue at a simple interest rate of ten percent per annum. During the three and nine months ended September 30, 2024, we paid a total of $50,000 against the outstanding principal due.

 

Small Business Administration Loans

 

On June 2, 2020, we obtained a loan from the Small Business Administration of $150,000 at an interest rate of 3.75% with a maturity date of June 2, 2050. The principal balance and accrued interest at September 30, 2024 was $145,109 and $0, respectively.

 

 

 

 

Debenture

 

On March 12, 2009, we issued a debenture in the principal amount of $20,000. The debenture bore interest at 12% per year and matured on September 12, 2009. The balance of the debenture was $10,989 at September 30, 2024 and the accrued interest was $8,537. We assigned all of our receivables from consumer activations of the rewards program as collateral on this debenture.

 

Line of Credit

 

On September 29, 2023, our company and Nova entered into a two-year revolving purchase and security agreement with DML HC Series, LLC, or DML, to sell, with recourse, Nova’s accounts receivables for a revolving financing up to a maximum advance amount of $4.5 million. A review is performed on a quarterly basis to assess the adequacy of the maximum amount. If mutually agreed upon by us and DML, the maximum amount may be increased. On April 24, 2024, we entered into amendment No. 1 with DML which increased the maximum advance amount to $8,000,000 and defined the discount fee equal to 2.25% per purchase and claims balance forward on new purchases with a minimum fee to now be $10,000. On June 11, 2024, we entered into amendment No. 2 with DML which further increased the maximum advance amount to $11,000,000. As of September 30, 2024, we had an outstanding balance of $7,468,971 against the revolving receivable line of credit and accrued interest of $252,628. The revolving purchase and security agreement includes discounts recorded as interest expense on each funding and matures on September 29, 2025.

 

Related Party Loans

 

In connection with the acquisition of Edge View on July 16, 2014, we assumed amounts due to previous owners who are current managers of Edge View. These amounts are due on demand and do not bear interest. The balance of these amounts is $4,979 as of September 30, 2024.

 

Contractual Obligations

 

Our principal commitments consist mostly of obligations under the loans described above.

 

Critical Accounting Policies

 

The preparation of our unaudited condensed consolidated financial statements requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On a regular basis, we evaluate these estimates. These estimates are based on management’s historical industry experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

 

For a description of the accounting policies that, in management’s opinion, involve the most significant application of judgment or involve complex estimation and which could, if different judgment or estimates were made, materially affect our reported financial position, results of operations, or cash flows, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the Securities and Exchange Commission, or the SEC, on March 27, 2024.

 

Off Balance Sheet Arrangements

 

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

 

 

 

 

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

Not applicable.

 

ITEM 4.

CONTROLS AND PROCEDURES.

 

Evaluation of Disclosure Controls and Procedures

 

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Disclosure controls and procedures refer to controls and other procedures designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

 

As required by Rule 13a-15(e) of the Exchange Act, our management has carried out an evaluation, with the participation and under the supervision of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as of September 30, 2024. Based upon, and as of the date of this evaluation, our chief executive officer and chief financial officer determined that, because of the material weaknesses described in Item 9A “Controls and Procedures” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which we are still in the process of remediating as of September 30, 2024, along with the error identified in our Quarterly Reports on Form 10-Q for the six months ended June 30, 2024 and the three months ended March 31, 2024, our disclosure controls and procedures were not effective. The errors identified in our Quarterly Reports on Form 10-Q were corrected in amended filings. Investors are directed to Item 9A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, for the description of these weaknesses.

 

Remediation of Material Weaknesses in Internal Control Over Financial Reporting

 

We have evaluated the material weakness described above and our management and board of directors are committed to the design and successful implementation of internal control over financial reporting as promptly as possible. We are evaluating our updated internal controls design and will determine whether the controls have operated effectively during 2024 in order to fully remediate the aforementioned material weakness in our internal control over financial reporting.

 

As disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, our management has identified the steps necessary to address the material weaknesses, and in the third quarter of 2024, we continued to implement the following remedial procedures:

 

	·	We are making necessary changes by making strategic hiring decisions and providing training to our financial team, and other relevant personnel, on the GAAP accounting guidelines applicable to financial reporting requirements.
	·	We are implementing proper documentation procedures for key functional areas, control objectives and our workflows.
	·	We are enhancing our processes, routine and non-routine, to encompass segregation of duties as well as oversight of secondary independent reviews.
	·	We plan to reinforce effective compensating controls can improve the design of the current process with limited human resources.
	·	We hired external consultants to assist with our assessment and accounting for variable consideration as accounted for under ASC 606 and our credit loss expense as accounted for under ASC 326.

 

 

 

 

We intend to complete the remediation of the material weaknesses discussed above as soon as practicable, but we can give no assurance that we will be able to do so. Designing and implementing an effective disclosure controls and procedures is a continuous effort that requires us to anticipate and react to changes in our business and the economic and regulatory environments and to devote significant resources to maintain a financial reporting system that adequately satisfies our reporting obligations. The remedial measures that we have taken and intend to take may not fully address the material weaknesses that we have identified, and material weaknesses in our disclosure controls and procedures may be identified in the future. Should we discover such conditions, we intend to remediate them as soon as practicable. We are committed to taking appropriate steps for remediation, as needed.

 

Changes in Internal Control Over Financial Reporting

 

Other than in connection with the implementation of the remedial measures described above, there were no changes in our internal controls over financial reporting during the third quarter of 2024 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.

 

From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these, or other matters, may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse effect on our business, financial condition or operating results.

 

ITEM 1A.

RISK FACTORS.

 

Not applicable.

 

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

 

We have not sold any equity securities during the three months ended September 30, 2024 that were not previously disclosed in a current report on Form 8-K that was filed during the quarter.

 

We did not repurchase any shares of our common stock during the three months ended September 30, 2024.

 

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.

 

None.

 

ITEM 4.

MINE SAFETY DISCLOSURES.

 

Not applicable.

 

ITEM 5.

OTHER INFORMATION.

 

None.

 

ITEM 6.

EXHIBITS.

 

Exhibit No.		Description
3.1		Amended and Restated Articles of Incorporation Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.1 to Amendment No. 1 to the Registration Statement on Form S-1/A filed on August 3, 2023)
3.2		Certificate of Amendment to Amended and Restated Articles of Incorporation Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.2 to the Quarterly Report on Form 10-Q filed on May 10, 2024)
3.3		Certificate of Designation of Series A Preferred Stock of Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.2 to Amendment No. 1 to the Registration Statement on Form S-1/A filed on August 3, 2023)
3.4		Certificate of Designation of Series B Preferred Stock of Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.3 to Amendment No. 1 to the Registration Statement on Form S-1/A filed on August 3, 2023)

 

 

 

 

3.5		Certificate of Correction of Certificate of Designation of Series B Preferred Stock of Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.4 to the Annual Report on Form 10-K filed on March 27, 2024)
3.6		Certificate of Designation of Series C Preferred Stock of Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.4 to Amendment No. 1 to the Registration Statement on Form S-1/A filed on August 3, 2023)
3.7		Certificate of Correction of Certificate of Designation of Series C Preferred Stock of Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.6 to the Annual Report on Form 10-K filed on March 27, 2024)
3.8		Certificate of Designation of Series E Preferred Stock of Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.5 to Amendment No. 1 to the Registration Statement on Form S-1/A filed on August 3, 2023)
3.9		Certificate of Correction of Certificate of Designation of Series E Preferred Stock of Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.8 to the Annual Report on Form 10-K filed on March 27, 2024)
3.10		Certificate of Designation of Series F-1 Preferred Stock of Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.6 to Amendment No. 1 to the Registration Statement on Form S-1/A filed on August 3, 2023)
3.11		Certificate of Correction of Certificate of Designation of Series F-1 Preferred Stock of Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.10 to the Annual Report on Form 10-K filed on March 27, 2024)
3.12		Certificate of Designation of Series I Preferred Stock of Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.7 to Amendment No. 1 to the Registration Statement on Form S-1/A filed on August 3, 2023)
3.13		Certificate of Correction of Certificate of Designation of Series I Preferred Stock of Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.12 to the Annual Report on Form 10-K filed on March 27, 2024)
3.14		Certificate of Designation of Series L Preferred Stock of Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.9 to Amendment No. 1 to the Registration Statement on Form S-1/A filed on August 3, 2023)
3.15		Certificate of Correction of Certificate of Designation of Series L Preferred Stock of Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.16 to the Annual Report on Form 10-K filed on March 27, 2024)
3.16		Certificate of Designation of Series N Senior Convertible Preferred Stock of Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.3 to the Annual Report on Form 10-K filed on June 6, 2023)
3.17		Certificate of Designation of Series X Senior Convertible Preferred Stock of Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.12 to Amendment No. 1 to the Registration Statement on Form S-1/A filed on August 3, 2023)
3.18		Certificate of Designation of Series Y Senior Convertible Preferred Stock of Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on May 14, 2024)
3.19		Amended and Restated Bylaws of Cardiff Lexington Corporation (incorporated by reference to Exhibit 3.2 to the Annual Report on Form 10-K filed on June 6, 2023)
4.1		Common Stock Purchase Warrant issued by Cardiff Lexington Corporation to SILAC Insurance Company on May 21, 2021 (incorporated by reference to Exhibit 4.2 to the Annual Report on Form 10-K filed on June 6, 2023)
31.1*		Certifications of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*		Certifications of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**		Certifications of Principal Executive Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**		Certifications of Principal Financial Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS		XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

______________

*Filed herewith

** Furnished herewith

 

 

 

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.

 

Date: November 6, 2024	CARDIFF LEXINGTON CORPORATION
	/s/ Alex Cunningham
	Name: Alex Cunningham
	Title: Chief Executive Officer
	(Principal Executive Officer)
	/s/ Matthew Shafer
	Name: Matthew Shafer
	Title: Chief Financial Officer
	(Principal Financial Officer)

 

 

 

 

 

 

 

 

Exhibit 31.1

CERTIFICATIONS

 

I, Alex Cunningham, certify that:

 

1.

I have reviewed this quarterly report on Form 10-Q of Cardiff Lexington Corporation;

 

2.

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

 

3.

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

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

	b)		Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)		Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)

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

 

5.

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 6, 2024

 

	/s/ Alex Cunningham
	Alex Cunningham
	Chief Executive Officer (Principal Executive Officer)

 

Exhibit 31.2

CERTIFICATIONS

 

I, Matthew Shafer, certify that:

 

1.

I have reviewed this quarterly report on Form 10-Q of Cardiff Lexington Corporation;

 

2.

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

 

3.

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

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

	b)		Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)		Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)

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

 

5.

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 6, 2024

 

	/s/ Matthew Shafer
	Matthew Shafer
	Chief Financial Officer (Principal Financial and Accounting Officer)

 

Exhibit 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002

 

The undersigned Chief Executive Officer of Cardiff Lexington Corporation (the “Company”), DOES HEREBY CERTIFY that:

 

1.       The Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.       Information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

 

IN WITNESS WHEREOF, the undersigned has executed this statement on November 6, 2024.

 

	/s/ Alex Cunningham
	Alex Cunningham
	Chief Executive Officer (Principal Executive Officer)

 

 

A signed original of this written statement required by Section 906 has been provided to Cardiff Lexington Corporation and will be retained by Cardiff Lexington Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

 

The forgoing certification is being furnished to the Securities and Exchange Commission pursuant to § 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Exhibit 32.2

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906
OF THE SARBANES-OXLEY ACT OF 2002

 

The undersigned Chief Financial Officer of Cardiff Lexington Corporation (the “Company”), DOES HEREBY CERTIFY that:

 

1.       The Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.       Information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

 

IN WITNESS WHEREOF, the undersigned has executed this statement on November 6, 2024.

 

	/s/ Matthew Shafer
	Matthew Shafer
	Chief Financial Officer (Principal Financial and Accounting Officer)

 

 

A signed original of this written statement required by Section 906 has been provided to Cardiff Lexington Corporation and will be retained by Cardiff Lexington Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

 

The forgoing certification is being furnished to the Securities and Exchange Commission pursuant to § 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

v3.24.3

Cover - shares	9 Months Ended
	Sep. 30, 2024	Nov. 05, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	000-49709
Entity Registrant Name	CARDIFF LEXINGTON CORPORATION
Entity Central Index Key	0000811222
Entity Tax Identification Number	84-1044583
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	3753 Howard Hughes Parkway
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Las Vegas
Entity Address, State or Province	NV
Entity Address, Postal Zip Code	89169
City Area Code	844
Local Phone Number	628-2100
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		15,036,725

v3.24.3

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Current assets
Cash	$ 1,949,600	$ 866,943
Accounts receivable-net	14,798,220	13,305,254
Prepaid and other current assets	5,000	5,000
Total current assets	16,752,820	14,177,197
Property and equipment, net	24,563	34,661
Land	540,000	540,000
Goodwill	5,666,608	5,666,608
Right of use - assets, net	465,389	289,062
Due from related party	4,979	4,979
Other assets	60,403	33,304
Total assets	23,514,762	20,745,811
Current liabilities
Accounts payable and accrued expense	1,386,412	2,047,131
Accrued expenses - related parties	4,353,056	4,733,057
Accrued interest	361,172	620,963
Right of use – lease liabilities	227,606	157,669
Due to director and officer	0	120,997
Notes payable – current portion	500,826	15,977
Line of credit	7,468,971	2,120,100
Convertible notes payable, net of debt discounts of $0 and $24,820, respectively	105,000	3,807,030
Net liabilities of discontinued operations	237,643	237,643
Total current liabilities	14,640,686	13,860,567
Notes payable	140,272	144,666
Operating lease liability – long term	236,853	119,056
Total liabilities	15,017,811	14,124,289
Mezzanine equity
Total Mezzanine Equity	4,767,831	5,890,104
Stockholders' equity
Common Stock; 300,000,000 shares authorized, $0.001 par value; 14,555,601 and 25,121 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively	14,556	25
Additional paid-in capital	20,891,337	(7,581,212)
Accumulated deficit	(71,792,589)	(68,684,115)
Total stockholders’ equity	3,729,120	731,418
Total liabilities, mezzanine equity and stockholders’ equity	23,514,762	20,745,811
Redeemable Series N Senior Convertible Preferred Stock [Member]
Mezzanine equity
Preferred stock value	3,230,023	3,891,439
Redeemable Series R Senior Convertible Preferred Stock [Member]
Mezzanine equity
Preferred stock value	0	307,980
Redeemable Series X Senior Convertible Preferred Stock [Member]
Mezzanine equity
Preferred stock value	1,537,808	1,690,685
Series B Preferred Stock [Member]
Stockholders' equity
Preferred stock value	3,015,716	8,557,912
Series C Preferred Stock [Member]
Stockholders' equity
Preferred stock value	172	492
Series E Preferred Stock [Member]
Stockholders' equity
Preferred stock value	301,500	623,000
Series F-1 Preferred Stock [Member]
Stockholders' equity
Preferred stock value	38,000	143,008
Series I Preferred Stock [Member]
Stockholders' equity
Preferred stock value	46,162,000	59,540,000
Series J Preferred Stock [Member]
Stockholders' equity
Preferred stock value	0	6,854,336
Series L Preferred Stock [Member]
Stockholders' equity
Preferred stock value	1,277,972	1,277,972
Series Y Senior Convertible Preferred Stock [Member]
Stockholders' equity
Preferred stock value	$ 3,820,456	$ 0

v3.24.3

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Debt discount	$ 0	$ 24,820
Common stock, shares authorized	300,000,000	300,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares issued	14,555,601	25,121
Common stock, shares outstanding	14,555,601	25,121
Redeemable Series N Senior Convertible Preferred Stock [Member]
Preferred stock, shares authorized	3,000,000	3,000,000
Preferred stock, stated value	$ 4.00	$ 4.00
Preferred stock, shares issued	868,056	868,056
Preferred stock, shares outstanding	868,056	868,056
Redeemable Series R Senior Convertible Preferred Stock [Member]
Preferred stock, shares authorized	5,000	5,000
Preferred stock, stated value	$ 1,200	$ 1,200
Preferred stock, shares issued	0	165
Preferred stock, shares outstanding	0	165
Redeemable Series X Senior Convertible Preferred Stock [Member]
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, stated value	$ 4.00	$ 4.00
Preferred stock, shares issued	375,000	375,000
Preferred stock, shares outstanding	375,000	375,000
Series B Preferred Stock [Member]
Preferred stock, shares authorized	3,000,000	3,000,000
Preferred stock, stated value	$ 4.00	$ 4.00
Preferred stock, shares issued	753,929	2,139,478
Preferred stock, shares outstanding	753,929	2,139,478
Series C Preferred Stock [Member]
Preferred stock, shares authorized	500	500
Preferred stock, stated value	$ 4.00	$ 4.00
Preferred stock, shares issued	43	123
Preferred stock, shares outstanding	43	123
Series E Preferred Stock [Member]
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, stated value	$ 4.00	$ 4.00
Preferred stock, shares issued	75,375	155,750
Preferred stock, shares outstanding	75,375	155,750
Series F-1 Preferred Stock [Member]
Preferred stock, shares authorized	50,000	50,000
Preferred stock, stated value	$ 4.00	$ 4.00
Preferred stock, shares issued	9,500	35,752
Preferred stock, shares outstanding	9,500	35,752
Series I Preferred Stock [Member]
Preferred stock, shares authorized	15,000,000	15,000,000
Preferred stock, stated value	$ 4.00	$ 4.00
Preferred stock, shares issued	11,540,500	14,885,000
Preferred stock, shares outstanding	11,540,500	14,885,000
Series J Preferred Stock [Member]
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, stated value	$ 4.00	$ 4.00
Preferred stock, shares issued	0	1,713,584
Preferred stock, shares outstanding	0	1,713,584
Series L Preferred Stock [Member]
Preferred stock, shares authorized	400,000	400,000
Preferred stock, stated value	$ 4.00	$ 4.00
Preferred stock, shares issued	319,493	319,493
Preferred stock, shares outstanding	319,493	319,493
Series Y Senior Convertible Preferred Stock [Member]
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, stated value	$ 4.00	$ 4.00
Preferred stock, shares issued	955,114	0
Preferred stock, shares outstanding	955,114	0

v3.24.3

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
REVENUE	$ 1,355,641	$ 3,405,859	$ 5,149,416	$ 9,476,764
COST OF SALES	1,000,601	551,423	2,741,765	2,589,407
GROSS PROFIT	355,040	2,854,436	2,407,651	6,887,357
OPERATING EXPENSES
Depreciation expense	3,365	3,365	10,096	11,365
Share based compensation	0	0	300,225	0
Selling, general and administrative	936,835	577,677	2,622,981	2,095,611
Total operating expenses	940,200	581,042	2,933,302	2,106,976
(LOSS) INCOME FROM CONTINUING OPERATIONS	(585,160)	2,273,394	(525,651)	4,780,381
OTHER (EXPENSE) INCOME
Other (expense) income	(6,767)	(1)	(4,720)	204
Gain on debt refinance and forgiveness	0	0	78,834	390
Penalties and fees	0	(16,000)	(1,330)	(48,000)
Interest expense	(1,386,041)	(226,119)	(1,803,657)	(1,763,698)
Amortization of debt discounts	0	(46,048)	(24,821)	(94,664)
Total other (expense) income	(1,392,808)	(288,168)	(1,755,694)	(1,905,768)
NET (LOSS) INCOME BEFORE DISCONTINUED OPERATIONS	(1,977,968)	1,985,226	(2,281,345)	2,874,613
LOSS FROM DISCONTINUED OPERATIONS	0	(3,705)	(111,312)	(93,005)
NET (LOSS) INCOME FOR THE PERIOD	(1,977,968)	1,981,521	(2,392,657)	2,781,608
PREFERRED STOCK DIVIDENDS	(238,009)	(150,965)	(715,817)	(605,384)
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (2,215,977)	$ 1,830,556	$ (3,108,474)	$ 2,176,224
BASIC (LOSS) INCOME PER SHARE
CONTINUING OPERATIONS	$ (0.16)	$ 136.12	$ (0.30)	$ 167.13
DISCONTINUED OPERATIONS	0.00	(0.28)	(0.01)	(7.15)
DILUTED (LOSS) INCOME PER SHARE
CONTINUING OPERATIONS	(0.16)	2.30	(0.30)	2.40
DISCONTINUED OPERATIONS	$ 0.00	$ (0.28)	$ (0.01)	$ (7.15)
WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC	14,075,296	13,448	10,242,799	13,005
WEIGHTED AVERAGE SHARES OUTSTANDING – DILUTED	14,075,296	794,783	10,242,799	906,441

v3.24.3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (UNAUDITED) - USD ($)	Preferred Stock Series AIY [Member]	Preferred Stock Series A and I [Member]	Preferred Stock Series B,E,F-1,J And L [Member]	Preferred Stock Series C [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance, December 31, 2022 (Restated) at Dec. 31, 2022		$ 59,540,000	$ 17,403,628	$ 492	$ 12	$ (10,004,808)	$ (68,684,115)	$ (1,744,791)
Beginning balance, shares (Restated) at Dec. 31, 2022		14,885,001	4,350,907	123	12,053
Issuance of preferred stock series B			$ 12,600			12,400		25,000
Issuance of preferred stock series B, shares			3,150
Issuance of preferred stock series E			$ 20,000			(20,000)
Issuance of preferred stock series E, shares			5,000
Conversion of convertible notes payable					$ 4	219,252		219,256
Conversion of convertible notes payable, shares					3,662
Preferred stock Dividends							(605,384)	(605,384)
Net income							2,781,608	2,781,608
Balance, September 30, 2023 (Restated) at Sep. 30, 2023		$ 59,540,000	$ 17,436,228	$ 492	$ 16	(9,793,156)	(65,507,891)	675,689
Ending balance, shares (Restated) at Sep. 30, 2023		14,885,001	4,359,057	123	15,715
Balance, December 31, 2022 (Restated) at Jun. 30, 2023		$ 59,540,000	$ 17,416,228	$ 492	$ 14	(9,802,172)	(68,338,447)	(1,183,885)
Beginning balance, shares (Restated) at Jun. 30, 2023		14,885,001	4,354,057	123	13,636
Issuance of preferred stock series E			$ 20,000			(20,000)
Issuance of preferred stock series E, shares			5,000
Conversion of convertible notes payable					$ 2	29,016		29,018
Conversion of convertible notes payable, shares					2,079
Preferred stock Dividends							(150,965)	(150,965)
Net income							1,981,521	1,981,521
Balance, September 30, 2023 (Restated) at Sep. 30, 2023		$ 59,540,000	$ 17,436,228	$ 492	$ 16	(9,793,156)	(65,507,891)	675,689
Ending balance, shares (Restated) at Sep. 30, 2023		14,885,001	4,359,057	123	15,715
Balance, December 31, 2022 (Restated) at Dec. 31, 2023	$ 59,540,000		$ 17,456,228	$ 492	$ 25	(7,581,212)	(68,684,115)	731,418
Beginning balance, shares (Restated) at Dec. 31, 2023	14,885,002		4,364,057	123	25,121
Conversion of convertible notes payable					$ 1	1,679		1,680
Conversion of convertible notes payable, shares					1,222
Conversion of series B preferred stock			$ (5,542,196)		$ 2,771	5,539,425
Conversion of series B preferred stock, shares			(1,385,549)		2,771,098
Conversion of series C preferred stock				$ (312)	$ 780	(468)
Conversion of series C preferred stock, shares				(78)	780,000
Conversion of series E preferred stock			$ (321,500)		$ 161	321,339
Conversion of series E preferred stock, shares			(80,375)		160,750
Conversion of series F-1 preferred stock			$ (105,008)		$ 53	104,955
Conversion of series F-1 preferred stock, shares			(26,252)		52,504
Conversion of series I preferred stock	$ (13,908,000)				$ 6,954	13,901,246
Conversion of series I preferred stock, shares	(3,477,000)				6,954,000
Conversion of series J preferred stock			$ (6,854,336)		$ 3,427	6,850,909
Conversion of series J preferred stock, shares			(1,713,584)		3,427,168
Issuance of series I preferred stock to officers	$ 530,000					63,600		593,600
Issuance of series I preferred stock to officers, shares	132,500
Issuance of series Y preferred stock	$ 3,820,456							3,820,456
Issuance of series Y preferred stock, shares	955,114
Cancellation of series C preferred stock				$ (8)		8
Cancellation of series C preferred stock, shares				(2)
Common stock issued for services					$ 8	11,617		11,625
Common stock issued for services, shares					7,500
Common stock issued to board members					$ 30	194,970		195,000
Common stock issued to board members, shares					30,000
Common stock issued in Red Rock settlement					$ 37	111,275		111,312
Common stock issued in Red Rock settlement, shares					37,104
Common stock issued in legal settlement					$ 74	(74)
Common stock issued in legal settlement, shares					74,225
Preferred stock Dividends					$ 235	1,372,269	(715,817)	656,687
Preferred stock Dividends, shares					234,909
Net income							(2,392,657)	(2,392,657)
Balance, September 30, 2023 (Restated) at Sep. 30, 2024	$ 49,982,456		$ 4,633,188	$ 172	$ 14,556	20,891,337	(71,792,589)	3,729,120
Ending balance, shares (Restated) at Sep. 30, 2024	12,495,616		1,158,297	43	14,555,601
Balance, December 31, 2022 (Restated) at Jun. 30, 2024	$ 50,317,632		$ 5,603,188	$ 240	$ 13,626	19,522,200	(69,576,612)	5,880,274
Beginning balance, shares (Restated) at Jun. 30, 2024	12,579,410		1,400,797	60	13,626,376
Conversion of series B preferred stock			$ (905,000)		$ 453	904,547
Conversion of series B preferred stock, shares			(226,250)		452,500
Conversion of series C preferred stock				$ (68)	$ 170	(102)
Conversion of series C preferred stock, shares				(17)	170,000
Conversion of series F-1 preferred stock			$ (65,000)		$ 33	64,967
Conversion of series F-1 preferred stock, shares			(16,250)		32,500
Conversion of series I preferred stock	$ (400,000)				$ 200	399,800
Conversion of series I preferred stock, shares	(100,000)				200,000
Issuance of series Y preferred stock	$ 64,824					(1)		64,823
Issuance of series Y preferred stock, shares	16,206
Common stock issued in legal settlement					$ 74	(74)
Common stock issued in legal settlement, shares					74,225
Preferred stock Dividends							(238,009)	(238,009)
Net income							(1,977,968)	(1,977,968)
Balance, September 30, 2023 (Restated) at Sep. 30, 2024	$ 49,982,456		$ 4,633,188	$ 172	$ 14,556	$ 20,891,337	$ (71,792,589)	$ 3,729,120
Ending balance, shares (Restated) at Sep. 30, 2024	12,495,616		1,158,297	43	14,555,601

v3.24.3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$ (2,392,657)	$ 2,781,608
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation	10,096	11,365
Amortization of debt discount	24,821	94,664
Bad debt	0	270,000
Change in estimate for settlement realization rate	1,650,474	0
Conversion and note issuance cost	1,000	11,250
Share issuance for compensations to directors and officers	788,600	0
Share issuance for service rendered	11,625	25,000
Fair value settled upon conversion	0	141,406
Gain on settlement or forgiveness of debt	(78,834)	(390)
(Increase) decrease in:
Accounts receivable	(3,143,440)	(5,510,098)
Right of use - assets	(176,327)	17,763
Prepaids and other current assets	(27,098)	0
Increase (decrease) in:
Accounts payable and accrued expense	(691,072)	733,125
Accrued officers compensation	(380,001)	514,000
Accrued interest	218,174	380,020
Right of use - liabilities	187,734	(27,255)
Net cash used in operating activities	(3,996,905)	(557,542)
Net cash provided by (used in) Discontinued Operations – Operating	111,312	(38,255)
FINANCING ACTIVITIES
Payments to director	(120,997)	0
Repayment of SBA loans	(4,545)	(803)
Proceeds from convertible notes payable	0	421,376
Payment of convertible notes	(105,079)	0
Net proceeds from line of credit	5,348,871	5,848
Payment of note payable	(50,000)	0
Proceeds from note payable – related party	0	250
Payment of dividends on preferred stock	(100,000)	0
Net cash provided by financing activities	4,968,250	426,671
Net cash provided by Discontinued Operations – Financing	0	131,260
NET INCREASE (DECREASE) IN CASH	1,082,657	(37,866)
CASH, BEGINNING OF PERIOD	866,943	219,085
CASH, END OF PERIOD	1,949,600	181,219
SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for Interest	126,732	6,389
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Common stock issued upon conversion of notes payable	1,680	99,533
Common stock issued upon conversion of preferred stock	14,158	0
Series Y preferred stock issued in exchange of convertible notes payable	3,755,632	0
Promissory note payable issued in settlement agreement	535,000	0
Right of use assets acquired	$ 363,411	$ 0

v3.24.3

Pay vs Performance Disclosure - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ (1,977,968)	$ 1,981,521	$ (2,392,657)	$ 2,781,608

v3.24.3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES   Organization and Nature of Operations   Cardiff Lexington Corporation (“Cardiff”) was originally incorporated on September 3, 1986 in Colorado as Cardiff International Inc. On November 10, 2005, Cardiff merged with Legacy Card Company, LLC and changed its name to Cardiff Lexington Corporation. On August 27, 2014, Cardiff redomiciled and became a corporation under the laws of Florida. On April 13, 2021, Cardiff redomiciled and became a corporation under the laws of Nevada.   Cardiff is an acquisition holding company focused on locating undervalued and undercapitalized companies, primarily in the healthcare industry, and providing them capitalization and leadership to maximize the value and potential of their private enterprises while also providing diversification and risk mitigation for stockholders. All of Cardiff’s operations are predominantly conducted through, and its income derived from, its Nova Ortho and Spine, LLC (“Nova”) subsidiary. Its subsidiaries include:     · Nova, which was acquired on May 31, 2021;         · Edge View Properties, Inc. (“Edge View”), which was acquired on July 16, 2014; and         · Platinum Tax Defenders (“Platinum Tax”), which was acquired on July 31, 2018 and sold on November 10, 2023. As a result, Platinum Tax is presented as a discontinued operation.   Principles of Consolidation   The consolidated financial statements include the accounts of Cardiff and its wholly owned subsidiaries, Nova, Edge View, and Platinum Tax and (collectively, the “Company”). Subsidiaries shown as discontinued operations include Platinum Tax. All significant intercompany accounts and transactions are eliminated in consolidation.   Reverse Stock Split   On January 9, 2024, the Company effected a 1-for-75,000 reverse split of its outstanding common stock. All outstanding shares of common stock and warrant to purchase common stock were adjusted to reflect the 1-for-75,000 reverse split, with respective exercise prices of the warrants proportionately increased. The conversion prices of the outstanding convertible notes and certain series of preferred stock were adjusted to reflect a proportional decrease in the number of shares of common stock to be issued upon conversion.   All share and per share data throughout these consolidated financial statements have been retroactively adjusted to reflect the reverse stock split. The total number of authorized shares of common stock did not change. As a result of the reverse stock split, an amount equal to the decreased value of the common stock was reclassified from “common stock” to “additional paid-in capital.”   Use of Estimates   The preparation of financial statements in conformity with United States generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Management uses its historical records and knowledge of its business in making estimates. Accordingly, actual results could differ from those estimates.   Accounts Receivable   In the normal course of business, the Company is in the lien based medical industry providing orthopedic healthcare servicing an uninsured market insulated by a letter of protection which insulates the Company and insures payment in full from insurance settlements. Accounts receivable consists of amounts due from attorneys and insurance providers for services provided to patients under the letter of protection. Accounts receivable are recorded at the expected settlement realization amount, which is less contractual adjustments and an allowance for credit losses. The Company recognizes an allowance for credit losses for its accounts receivable to present the net amount expected to be collected as of the balance sheet date. This allowance is determined based on the history of net settlements received, where the net settlement amount is not collected. No collection can happen if no settlement is reached with the defendant’s insurance company and the plaintiff (the patient) loses the case at trial, or the case is abandoned, then the Company will not be able to collect on its letter of protection and its receivable will not be collected. The Company monitors outstanding cases as they develop through ongoing discussions with attorneys, doctors and third-party medical billing company and additionally monitors settlement realization rates over time. Additionally, the Company considers economic factors and events or trends expected to affect future collections experience. The no collection history of the Company’s customers is considered in future assessments of collectability as these patterns are established over a longer period. The Company uses the term collection and collection rate in its disclosures to describe the historical less than 1% occurrence of not collecting under a contract, which aligns with the Company’s credit loss accounting under ASC 326.   The Company does not have a significant exposure to credit losses as it has historically had a less than 1.0% loss rate where the Company received no settlement amount for its outstanding accounts receivable. Although possible, claims resulting in zero collection upon settlement are rare based on the Company’s historical experience and has historically been 0.5% to 1.0% of its outstanding accounts receivable, thereby resulting in a collection rate of 99%. The Company uses the loss rate method to record its allowance for credit losses. The Company applies the loss rate method by reviewing its zero collection history on a quarterly basis and updating its estimates of credit losses to adjust for changes in loss data. The Company typically collects on its accounts receivable between eighteen and twenty-four months after recording. The Company does not record an allowance for credit losses based on an aging of its accounts receivable as the aging of the Company’s receivables do not influence the credit loss rate due to the nature of its business and the letter of protection. The Company does not adjust its receivables for the effects of a significant financing component at contract inception as the timing of variable consideration is determined by the settlement, which is outside of the Company’s control. As of September 30, 2024 and December 31, 2023, the Company’s allowance for credit losses was $122,190. The Company recognized $0 and $270,000 of credit loss expense during the nine months ended September 30, 2024 and 2023, respectively, which is included in selling, general and administrative expenses in the condensed consolidated statement of operations. The balance of accounts receivable, net as of January 1, 2023 was $6,603,920.   Property and Equipment   Property and equipment are carried at cost. Expenditures for renewals and betterments that extend the useful lives of property, equipment or leasehold improvements are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is calculated using the straight-line method for financial reporting purposes based on the following estimated useful lives:  Schedule of estimated useful lives   Classification Useful Life Equipment, furniture, and fixtures 5 - 7 years Medical equipment 10 years Leasehold improvements 10 years or lease term, if shorter   Goodwill   Goodwill is not amortized but is evaluated for impairment annually or when indicators of a potential impairment are present. The Company reviews goodwill for impairment on a reporting unit basis annually and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Goodwill is tested first for impairment based on qualitative factors on an annual basis or in between if an event occurs or circumstances change that indicate the fair value may be below its carrying amount, otherwise known as a ‘triggering event’. An assessment is made of these qualitative factors as such to determine whether it is more likely than not the fair value is less than the carry amount, including goodwill. The annual evaluation for impairment of Goodwill, if needed, is based on valuation models that incorporate assumptions and internal projections of expected future cash flows and operating plans. The Company believes such assumptions are also comparable to those that would be used by other marketplace participants. During the nine months ended September 30, 2024 and 2023, the Company did not recognize any goodwill impairment. The Company based this decision on impairment testing of the underlying assets, expected cash flows, decreased asset value and other factors.   Valuation of Long-lived Assets   In accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 360-10-5, “Impairment or Disposal of Long-Lived Assets”, all long-lived assets such as plant and equipment and construction in progress held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of assets to estimated cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets.   Revenue Recognition   The Company’s primary source of revenue is its healthcare subsidiary, which records revenues from providing licensed and/or certified orthopedic procedures. Revenue is recognized at a point in time in accordance with ASC 606 and at an estimated net settlement realization rate based on gross billed charges. The Company’s healthcare subsidiary does not have contract liabilities or deferred revenue as there are no amounts prepaid for services. The Company applies the following five-step ASC 606 model to determine revenue recognition:     · Identification of a contract with a customer         · Identification of the performance obligations in the contact         · Determination of the transaction price         · Allocation of the transaction price to the separate performance obligations         · Recognition of revenue when performance obligations are satisfied.   At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses services promised within each contract and determines those that are a performance obligation and assesses whether each promised service is distinct.   The Company’s contracts contain a single performance obligation (providing orthopedic services), as the promise to transfer the individual services is not separately identifiable from other promises in the contracts and, therefore, not distinct, as a result, the entire transaction price is allocated to this single performance obligation.   Accordingly, the Company recognizes net revenue when the patient receives orthopedic care services. The Company’s patient service contracts generally have performance obligations which are satisfied at a point in time. The performance obligation is for onsite or off-site care provided. Patient service contracts are generally fixed-price, and the transaction price is in the contract. Revenue is recognized when obligations under the terms of the contract with the Company’s patients are satisfied; generally, at the time of patient care.   In determining net revenue to record under ASC 606, the Company must estimate the transaction price, including estimates of variable consideration in the contract at inception. In order to estimate variable consideration, the Company uses established billings rates (also described as “gross charges”) for the procedures being performed, however, the billing rates are not the same as actual amounts recovered for the Company’s healthcare subsidiary. They generally do not reflect what the Company is ultimately paid by the customer, insurance carriers and other payors, and therefore are not reported in the consolidated financial statements at that rate. The Company is typically paid amounts based on established charges per procedure with guidance from the annually updated Current Procedural Terminology (“CPT”) guidelines that designates relative value units and a suggested range of charges for each procedure which is then assigned a CPT code. This gross charge is discounted to reflect the percentage paid to the Company using a modifier recognized by each insurance carrier for services, less deductible, co-pay, and contractual adjustments which are deducted from the calculated fee. These adjustments are considered variable consideration under ASC 606 and are deducted from the calculated fee to arrive at the net transaction price. The Company also estimates changes in the contract price as a result of price concessions, changes to deductibles, co-pays and other contractual adjustments to determine the eventual settlement amount the Company expects to receive. The Company uses the term settlement realization in its disclosures to describe the amount of cash the Company expects to receive based on its estimate of the transaction price under the expected value method of ASC 606.   Where appropriate, the Company utilizes the expected value method to determine the appropriate amount for estimates of variable consideration, which has been based on a historical 12-month lookback of its actual settlement realization rates. The estimates of reserves established for variable consideration reflect current contractual requirements, the Company’s historical experience, specific known market events and trends, industry data and forecasted patient data and settlement patterns. Settlement realization patterns are assessed based on actual settlements and based on expected settlement realization trends obtained from discussions with attorneys, doctors and our third-party medical billing company. Settlement amounts are negotiated, and prolonged settlement negotiations are not indicative of a greater likelihood of reduced settlement realization or zero settlement.   The Company may accept a lower settlement realization rate in order to receive faster payment. The Company obtains information about expected settlement realization trends from discussions with doctors and attorneys and its third-party medical billing company vendor, which handles settlement claims and negotiations. Settlement amounts are presented to the Company’s third-party medical billing company vendor.   Settlement rates of 49% or higher based on gross billed amounts are typically accepted without further negotiation. Proposed settlement rates below 49% are negotiated when possible and longer negotiations typically result in higher settlement rates. If the Company accepts a lower settlement realization rate in order to receive payments more quickly, the Company considers that a price concession and estimates these concessions at contract inception. The various forms of variable consideration described above included in the transaction price may be constrained and are included in net revenue only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. The Company has not constrained any of its estimates of variable consideration for any of the periods presented.   Service Fees – Net (PIP)   The Company generates services fees from performing various procedures on the date the services are performed. These services primarily include slip and falls as well as smaller nominal Non-PIP services. As described above, these revenues are based on established insurance billing rates, less allowances for contractual adjustments and uncollectible amounts. These contractual adjustments vary by insurance company and self-pay patients. The Company computes these contractual and other adjustments based on its historical settlement realization experience. Completing the paperwork for each case and preparing it for billing takes approximately ten business days after a procedure is performed. The majority of claims are then filed electronically except for those remaining insurance carriers requiring paper filing. An initial response is usually received within four weeks from electronic filing and up to six weeks from paper filing. Responses may be a payment, a denial, or a request for additional information. The Company’s healthcare revenues are generated from professional medical billings including facility and anesthesia services. With respect to facility and anesthesia services, the Company is the primary obligor as the facility and anesthesia services are considered part of one integrated performance obligation.   The Company satisfies performance obligations as services are performed and then billed to the patient. Payment in most cases is made by an attorney for such services to our patients which are due upon final settlement of patients claims. During the claims process, legal counsel warranties such claim through the letter of protection, which is sent to the Company, as a medical provider, on behalf of the client patient. This letter states that the attorney is responsible for paying the client’s medical bills when the case is fully developed and settles. The medical professional agrees to provide treatment to the injured person and refrain from attempting to collect payment as it is developing and until the case is resolved. Once the personal injury case is finalized with the insurance company, the attorney pays the outstanding medical bills from the settlement.   Settlement Rates   Prior to its fiscal year 2024, the Company has historically had a 49% settlement realization rate from its total gross billed charges. Accordingly, the Company has historically recognized net healthcare service revenue as 49% of gross billed amounts. During the nine months ended September 30, 2024, the Company underwent efforts to accelerate cash settlements by accepting lower settlement realization rates in order to settle outstanding accounts receivable more quickly, which is expected to continue for the foreseeable future. This new initiative caused the Company to reassess the average settlement rate used to recognize healthcare service revenue as a prospective change in estimate given new information available. Accordingly, during the third quarter of 2024, the Company completed a thorough review of its third-party billing data, including reviewing historical reports and new reporting methods as a part of its updated analysis. Based upon this review it was determined that a 24-month lookback period should be used in the analysis of its historical settlement realization rates. Accordingly, its estimate of its settlement realization rate was reduced from 49% to 44%, resulting in a $1,650,474 million reduction in its accounts receivable and revenue during the third quarter of 2024 related to the change in estimate. Additionally, as a result of this reduced settlement realization experience, the Company recorded reductions to net revenue of $0 and $1,199,155 for the three and nine months ended September 30, 2024, respectively.   The Company will continue to evaluate its estimate of its settlement realization rates in the future, which will include a monthly review of the Company’s trailing 24-month historical settlement realization rate, along with estimates of current and pending settlements through ongoing discussions with attorneys, doctors and the Company’s third-party medical billing company in order to determine its variable consideration under ASC 606 and the net transaction price. The Company will update its settlement realization rate estimate used in determining its accounts receivable and revenue each quarter based on this review.   Contract Fees (Non-PIP)   The Company has contract fees for amounts earned from its Non-Personal Injury Protection (“PIP”) related procedures, typically car accidents, and are settled on a contingency basis. Prior to April 2023, these cases were sold to a factor who bears the risk of economic benefit or loss. Generally, the sale of these cases to a third-party factor resulted in an approximate 54% reduction from the accounts receivables amounts. After selling patient cases to the factor, any additional funds settled by us were remitted to the factor. The Company evaluated the factored adjustments considering the actual factored amounts per patient on a quarterly interval, and the reductions from accounts receivable that were factored were recorded in finance charges as other expenses on the consolidated statement of operations. As a result of the Company’s eighteen to twenty-four month settlement realization timeframe, the Company has an accrued liability resulting from the settlement of receivables sold to the third-party factors which fluctuates as settlements are made and remitted to those third-party factors. These accounts receivables sold to these third-party factors are not included in the Company’s financial statements accounts receivable balance once sold and therefore are not part of the assessment of the net realizable value of accounts receivable. For the nine months ended September 30, 2023, the Company factored a total of $544,196 of its accounts receivable in exchange for cash of $253,750. The Company ceased factoring of accounts receivable in the first quarter of 2023.   Advertising Costs   Advertising costs are expensed as incurred. Advertising costs are included as a component of cost of sales in the consolidated statements of operations and changes in stockholders’ equity. The Company recognized advertising and marketing expense of $84,914 and $71,636 for the three months ended September 30, 2024 and 2023, respectively. The Company recognized advertising and marketing expense of $263,864 and $243,315 for the nine months ended September 30, 2024 and 2023, respectively.   Fair Value Measurements   Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs), and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:     Level 1 Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.         Level 2 Inputs, other than quoted prices included in Level 1, which are observable for the asset or liability through corroboration with market data at the measurement date.         Level 3 Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.    Distinguishing Liabilities from Equity   The Company accounts for its series N senior convertible preferred stock, series R convertible preferred stock, and series X senior convertible preferred stock subject to possible redemption in accordance with ASC 480, “Distinguishing Liabilities from Equity”. Conditionally redeemable preferred shares are classified as temporary equity within the Company’s consolidated balance sheet.   Stock-Based Compensation   The Company accounts for its stock-based compensation in which the Company obtains employee services in share-based payment transactions under the recognition and measurement principles of the fair value recognition provisions of section 718-10-30 of the Financial Accounting Standards Board (“FASB”) ASC. Pursuant to paragraph 718-10-30-6 of the FASB ASC, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.   The measurement date used to determine the fair value of the equity instrument issued is the earlier of the date on which the performance is complete or the date on which it is probable that performance will occur.   Generally, all forms of share-based payments, including stock option grants, warrants and restricted stock grants and stock appreciation rights are measured at their fair value on the awards’ grant date, based on estimated number of awards that are ultimately expected to vest.   The expense resulting from share-based payments is recorded in the consolidated statements of operations.   Income Taxes   Income taxes are determined in accordance with ASC Topic 740, “Income Taxes”. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.   ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.   As of September 30, 2024 and 2023, the Company did not have any interest and penalties associated with tax positions and did not have any significant unrecognized uncertain tax positions.   Income (Loss) per Share   FASB ASC Subtopic 260, “Earnings Per Share,” provides for the calculation of “Basic” and “Diluted” earnings per share. Basic earnings per common share is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, warrants, and debts convertible into common stock. The dilutive effect of stock options and warrants are reflected in diluted earnings per common share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. The diluted effect of debt convertibles is reflected utilizing the if converted method.   Going Concern   The accompanying consolidated financial statements have been prepared using the going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The Company had sustained recurring operating losses since its inception and has an accumulated deficit of $71,792,589 as of September 30, 2024. These factors raise a substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not reflect any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classifications of liabilities that might result if the Company is unable to continue as a going concern.   The ability of the Company to continue as a going concern and the appropriateness of using the going concern basis is dependent upon, among other things, additional cash infusions. Management is in continuous discussions with prospective investors and believes the raising of capital will allow the Company to fund its cash flow shortfalls and pursue new acquisitions. There can be no assurance that the Company will be able to obtain sufficient capital from debt or equity transactions or from operations in the necessary time frame or on terms acceptable to it. Should the Company be unable to raise sufficient funds, it may be required to curtail its operating plans. In addition, if overall Company expenses increase, the Company may need to implement cost reductions. No assurance can be given that the Company will be able to operate profitably on a consistent basis, or at all, in the future. Should the Company not be able to raise sufficient funds, it may cause cessation of operations.   Recently Issued Accounting Standards   The FASB issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting: Improvements to Reportable Segment Disclosures” (“Topic 280”) in November 2023. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Topic 280 improves “reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.” In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable “investors to better understand an entity’s overall performance” and assess “potential future cash flows.” Management is evaluating the impact of ASU 2023-07 on the consolidated financial statements and does not expect there to be any changes or impact to the financial statements.   Recently Adopted Accounting Standards   The FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 81540).” The ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within that period. The FASB also specified that an entity must adopt the guidance as of the beginning of its annual fiscal year and is not permitted to adopt the guidance in an interim period, other than the first interim period of their fiscal year. ASU 2020-06 reduces the number of accounting models for convertible debt and convertible preferred stock instruments and makes certain disclosure amendments to improve the information provided to users. There were no material impacts on the consolidated financial statements at adoption.

v3.24.3

RESTATEMENT OF FINANCIAL STATEMENTS	9 Months Ended
	Sep. 30, 2024
Accounting Changes and Error Corrections [Abstract]
RESTATEMENT OF FINANCIAL STATEMENTS	2. RESTATEMENT OF FINANCIAL STATEMENTS   During the preparation of the financial statements for the year ended December 31, 2023, the Company identified and corrected its classification and accounting treatment for its series R convertible preferred stock and the related dividend accrual. Pursuant to ASC 250, Accounting changes and error corrections issued by FASB and Staff Accounting Bulletin 99 Materiality, issued by Securities and Exchange Commission, the Company determined the impact of the error was immaterial. The impact of the error correction is reflected in the consolidated balance sheet as of September 30, 2023 as a $274,982 increase to the mezzanine equity and offsetting decrease to the series R convertible preferred stock and subject to possible redemption mezzanine equity line item. In addition, the impact of the unpaid dividend accrual was reflected as of September 30, 2023 as a $24,681 increase to mezzanine equity and offsetting decrease to the accumulated deficits.   During the preparation of the financial statements for three months ended March 31, 2024, the Company identified and corrected its classification for all its outstanding common stock amount per par value of $0.001 with additional paid-in-capital related with a 1-for-75,000 reverse split executed on January 9, 2024. The impact of this adjustment decreased $1,804,774 to common stock and offsetting increase to additional paid-in-capital as of December 31, 2023.   On November 10, 2023, the Company sold Platinum Tax, which was a full-service tax resolution firm located in Los Angeles, California. The Company presented in prior periods operating loss as loss from discontinued operations of $3,705 and $93,005 on the consolidated statement of operations for the three and nine months ended September 30, 2023, respectively.   The impact of the error corrections also reflected a $136.12 increase of basic earnings per share, and a $2.30 increase of diluted earnings per share on the consolidated statement of operations for the three months ended September 30, 2023. For the nine months ended September 30, 2023, the impact of the error correction reflected a $167.33 increase of basic earnings per share, and an increase of $2.40 of diluted earnings per share.   The following tables summarize the impact of the corrections on the Company’s condensed consolidated balance sheet as of September 30, 2023, the condensed consolidated statement of operations for the three and nine months ended September 30, 2023, and the condensed consolidated statement of cash flows for the nine months ended September 30, 2023:  Schedule of restated financial information                   Balance sheet                       Impact of correction of error   September 30, 2023 (Unaudited)   As previously reported     Adjustments     As restated                       Total assets   $ 18,518,727     $ (844 )   $ 18,517,883                             Total liabilities     12,102,942       (244,129 )     11,858,813                             Mezzanine equity     5,440,434       299,663       5,740,097                             Total stockholders' equity   $ 975,352     $ (299,663 )   $ 675,689     Statement of operations       Impact of correction of error   Three months ended September 30, 2023 (Unaudited)   As previously reported     Adjustments     As restated                       Revenue   $ 3,438,124     $ (32,265 )   $ 3,405,859   Cost of sales     557,028       (5,605 )     551,423   Gross profit     2,881,096       (26,660 )     2,854,436   Operating expense     611,110       (30,067 )     581,043   Income from operations     2,269,986       3,407       2,273,393   Other income (expense), net     (288,465 )     298       (288,167 ) Net income before discontinued operations     1,981,521       3,705       1,985,226   Loss from discontinued operations     –       (3,705 )     (3,705 ) Net income for the period   $ 1,981,521     $ –     $ 1,981,521   Preferred stock dividends   $ (150,965 )   $ 0.00     $ (150,965 ) Net income attributable to common shareholders   $ 1,830,556     $ 0.00     $ 1,830,556   Basic earnings per share for continuing operations   $ 0.00     $ 136.12     $ 136.12   Diluted earnings per share for continuing operations   $ 0.00     $ 2.30     $ 2.30         Impact of correction of error   Nine months ended September 30, 2023 (Unaudited)   As previously reported     Adjustments     As restated                       Revenue   $ 9,781,731     $ (304,967 )   $ 9,476,764   Cost of sales     2,643,137       (53,730 )     2,589,407   Gross profit     7,138,594       (251,237 )     6,887,357   Operating expense     2,448,876       (341,900 )     2,106,976   Income from operations     4,689,718       90,663       4,780,381   Other income (expense), net     (1,908,110 )     2,342       (1,905,768 ) Net income before discontinued operations     2,781,608       93,005       2,874,613   Loss from discontinued operations     –       (93,005 )     (93,005 ) Net income for the period   $ 2,781,608     $ –     $ 2,781,608   Preferred stock dividends   $ (605,384 )   $ 0.00     $ (605,384 ) Net income attributable to common shareholders   $ 2,176,224     $ 0.00     $ 2,176,224   Basic earnings per share for continuing operations   $ 0.00     $ 167.33     $ 167.33   Diluted earnings per share for continuing operations   $ 0.00     $ 2.40     $ 2.40     Statement of Cash Flows       Impact of correction of error   Nine months ended September 30, 2023 (Unaudited)   As previously reported     Adjustments     As restated                       Net cash used in operating activities of continuing operations   $ (603,392 )   $ 45,850     $ (557,542 ) Net cash provided by financing activities of continuing operations   $ 557,933     $ (131,262 )   $ 426,671

v3.24.3

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	9 Months Ended
	Sep. 30, 2024
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	3. ACCOUNTS PAYABLE AND ACCRUED EXPENSES Schedule of accounts payable and accrued expenses                 September 30, 2024     December 31, 2023   Accounts payable   $ 663,381     $ 720,774   Accrued credit cards     8,248       26,645   Accrued liability for settlement of previously factored receivables     599,956       1,247,772   Accrued income and property taxes     5,346       5,346   Accrued professional fees     50,721       29,122   Accrued board fees     15,000       –   Accrued dividend     30,354       –   Accrued public company fees     5,000       –   Accrued travel expense     1,571       –   Accrued payroll     6,835       17,472   Total   $ 1,386,412     $ 2,047,131     The Company is delinquent paying certain property taxes. As of September 30, 2024 and December 31, 2023, the balance for these property taxes was $1,659.

v3.24.3

PLANT AND EQUIPMENT, NET	9 Months Ended
	Sep. 30, 2024
Property, Plant and Equipment [Abstract]
PLANT AND EQUIPMENT, NET	4. PLANT AND EQUIPMENT, NET   Property and equipment as of September 30, 2024 and December 31, 2023 is as follows:   Schedule of property and equipment                 September 30, 2024     December 31, 2023   Medical equipment   $ 96,532     $ 96,532   Computer Equipment     9,189       9,189   Furniture, fixtures and equipment     15,079       15,079   Leasehold Improvement     15,950       15,950   Total     136,750       136,750   Less: accumulated depreciation     (112,187 )     (102,089 ) Property and equipment, net   $ 24,563     $ 34,661     For the three months ended September 30, 2024 and 2023, depreciation expense was $3,365 and $3,365, respectively. For the nine months ended September 30, 2024 and 2023, depreciation expense was $10,096 and $11,365, respectively.

v3.24.3

LAND	9 Months Ended
	Sep. 30, 2024
Real Estate [Abstract]
LAND	5. LAND   As of September 30, 2024 and December 31, 2023, the Company had 27 acres of land of approximately $540,000. The land is currently vacant and is expected to be developed into a residential community.

v3.24.3

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	6. RELATED PARTY TRANSACTIONS   In connection with the acquisition of Edge View on July 16, 2014, the Company assumed amounts due from previous owners who are current managers of Edge View. These amounts are due on demand and do not bear interest. The balance of these amounts is $4,979 due from the previous owners as of September 30, 2024 and December 31, 2023.   The Company obtained short-term advances from the Chairman of the Board that are non-interest bearing and due on demand. As of September 30, 2024 and December 31, 2023, the Company owed the Chairman $0 and $120,997, respectively. During the nine months ended September 30, 2024, the Company paid $120,997 to the Chairman.   See also Note 8. Convertible Notes Payable and the disclosure regarding Note payable 41.   See also Note 13. Commitments and Contingencies for compensation paid to employees of the Company.

v3.24.3

NOTES AND LOANS PAYABLE	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
NOTES AND LOANS PAYABLE	7. NOTES AND LOANS PAYABLE   Notes payable at September 30, 2024 and December 31, 2023 are summarized as follows:  Schedule of notes payable                 September 30, 2024     December 31, 2023   Notes and loans payable   $ 8,215,069     $ 2,280,743   Less current portion     (8,074,797 )     (2,136,077 ) Long-term portion   $ 140,272     $ 144,666     Long-term debt matures as follows:  Schedule of maturities of long-term debt           Amount   2024 (remainder of year)   $ 8,071,169   2025     4,837   2026     4,837   2027     4,837   2028     4,837   Thereafter     124,552   Total   $ 8,215,069     Promissory Note – Settlement Agreement   On June 11, 2024, the Company entered into a settlement agreement and release of claims with the holder of 165 shares of series R convertible preferred stock and certain convertible promissory notes (see Notes 29-2, 37-1, 37-2, and 37-3 referenced in Note 8. Convertible Notes Payable). Pursuant to the settlement agreement and release of claims, the holder agreed to cancel its shares of series R convertible preferred stock and convertible promissory notes in exchange for a new fixed amount settlement promissory note in the principal amount of $535,000.   The note does not bear interest and requires fixed payments as follows: (i) if the Company raises at least $5 million but less than $6 million in its planned underwritten public offering (the “Offering”), then it must pay $250,000 on the closing date of the Offering, with payments of $125,000, $125,000 and $35,000 to follow on the 90th, 180th, and 240th days following the closing of the Offering, respectively; (ii) if the Company raises at least $6 million but less than $7 million in the Offering, then it must pay $390,000 on the closing date of the Offering and $145,000 on the 90th day following the closing of the Offering; and (iii) if the Company raises at least $7 million in the Offering, then it must repay the entire principal amount on the closing date of the Offering. If the Offering is not completed by August 15, 2024, then the Company is required to pay $25,000 on such date and to continue making payments of $25,000 on each monthly anniversary thereof until the entire principal amount is repaid in full. Notwithstanding the foregoing, if the Company abandons the Offering and conducts a new public offering thereafter, then the Company is required to make a payment of $100,000 on the closing date of such other public offering, a second payment of $100,000 on the 90th day following the closing of such offering and $35,000 each month thereafter until the entire principal amount is repaid in full. If any portion of the principal amount remains unpaid on the second (2nd) anniversary of the date of the note, it shall become immediately due and payable on such date. The Company may prepay the entire principal amount at any time without penalty. The note is unsecured and contains customary events of default for a loan of this type. Upon an event of default, interest would automatically begin to accrue at a simple interest rate of ten percent per annum. This transaction was accounted for as a debt extinguishment and a gain on settlement of $78,834 was recorded to the unaudited, consolidated statement of operations for the quarter ended June 30, 2024, in accordance with FASB Topic 470 Borrower’s Accounting for Debt Modifications. During the three months ended September 30, 2024, the Company paid $50,000 against the outstanding principal balance. At September 30, 2024, the remaining principal balance was $485,000.   Loans and Notes Payable – Unrelated Party   On March 12, 2009, the Company issued a debenture in the principal amount of $20,000. The debenture bore interest at 12% per year and matured on September 12, 2009. The balance of the debenture was $10,989 at September 30, 2024 and December 31, 2023. The accrued interest of the debenture was $8,537 and $7,547 at September 30, 2024 and December 31, 2023, respectively. The Company assigned all of its receivables from consumer activations of the rewards program as collateral on this debenture.   Small Business Administration (“SBA”) Loans   On June 2, 2020, the Company obtained an SBA loan in the principal amount of $150,000 with an interest rate of 3.75% and a maturity date of June 2, 2050. The principal balance and accrued interest at September 30, 2024 was $145,109 and $0, respectively, and principal and accrued interest at December 31, 2023 was $149,655 and $956, respectively.   Line of Credit   On September 29, 2023, the Company and Nova entered into a two-year revolving purchase and security agreement with DML HC Series, LLC (“DML”) to sell, with recourse, Nova’s accounts receivables for a revolving financing up to a maximum advance amount of $4.5 million. A review is performed on a quarterly basis to assess the adequacy of the maximum amount. If mutually agreed upon by the Company and DML, the maximum amount may be increased. On April 24, 2024, the Company and Nova entered into amendment No. 1 with DML which increased the maximum advance amount to $8,000,000 and defined the discount fee equal to 2.25% per purchase and claims balance forward on new purchases with a minimum fee to now be $10,000. On June 11, 2024, the Company and Nova entered into amendment No. 2 with DML which further increased the maximum advance amount to $11,000,000. As of September 30, 2024, and December 31, 2023, the Company had $7,468,971 and $2,120,100, respectively, outstanding balance against the revolving receivable line of credit. As of September 30, 2024, there was $252,628 of interest accrued related to the line of credit. The revolving purchase and security agreement includes discounts recorded as interest expense on each funding and matures on September 29, 2025.

v3.24.3

CONVERTIBLE NOTES PAYABLE	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
CONVERTIBLE NOTES PAYABLE	8. CONVERTIBLE NOTES PAYABLE   As of September 30, 2024 and December 31, 2023, the Company had convertible debt outstanding net of amortized debt discount of $105,000 and $3,807,030, respectively. During the nine months ended September 30, 2024, the Company paid the total principal outstanding of $100,080 and the total outstanding interest of $22,279 to the holder of Notes 9 and 10-1. The Company also paid the total principal outstanding of $5,000 and the total outstanding interest of $501 to the holder of Note 41. Additionally, the Company paid $100,000 of accrued interest to convertible noteholder related to note 40-1. On June 11, 2024, the Company entered into a settlement agreement and release of claims with the holder of Notes 29-2, 37-1, 37-2 and 37-3 (see below and also Note 7. Notes and Loans Payable for further details). Pursuant to the settlement agreement and release of claims, the holder agreed to cancel these notes in exchange for a new fixed amount settlement promissory note in the principal amount of $535,000. Additionally, during the nine months ended September 30, 2024, the Company exchanged Notes 40-1, 40-2, 40-3, 40-4, 40-5, 40-6, 40-7, 40-8, 40-9 and 40-10 for the issuance of 938,908 shares of series Y senior convertible preferred stock to the noteholder. See also Note 9. Capital Stock.   During the nine months ended September 30, 2023, the Company received net proceeds of $421,375 from convertible notes. There were debt discounts associated with the convertible debt of $0 and $24,820 at September 30, 2024 and December 31, 2023, respectively. For the three months ended September 30, 2024 and 2023, the Company recorded amortization of debt discounts of $0 and $46,048, respectively. For the nine months ended September 30, 2024 and 2023, the Company recorded amortization of debt discounts of $24,821and $94,664, respectively.   During the nine months ended September 30, 2024, the Company converted $680 in accrued interest and $1,000 in conversion cost into 1,222 shares of common stock. The Company recognized $1,679 of additional paid-in capital to adjust fair value for the debt settlement during the nine months ended September 30, 2024. During the nine months ended September 30, 2023, the Company converted $87,460 of convertible debt, $12,073 in accrued interest and $3,000 in conversion cost into 3,662 shares of the Company’s common stock. The Company recognized $141,406 of interest expense and additional paid-in capital to adjust fair value for the debt settlement during the nine months ended September 30, 2023.   Convertible notes as of September 30, 2024 and December 31, 2023 are summarized as follows: Schedule of convertible notes                 September 30, 2024     December 31, 2023   Convertible notes payable   $ 105,000     $ 3,831,850   Discounts on convertible notes payable     –       (24,820 ) Total convertible debt less debt discount     105,000       3,807,030   Current portion     105,000       3,807,030   Long-term portion   $ –     $ –     The following is a schedule of convertible notes payable as of and for the nine months ended September 30, 2024. Schedule of convertible notes payable                                                               Note #   Issuance   Maturity   Principal Balance 12/31/23     Settlements and/or Principal Conversions     New Loans or (Cash Paydown)     Shares Issued Upon Conversion or Exchange     Principal Balance 09/30/24     Accrued Interest on Convertible Debt at 12/31/23     Interest On Convertible Debt For the Period Ended 09/30/24     Accrued Interest on Convertible Debt at 09/30/24     Unamortized Debt Discount At 09/30/24   9   09/12/2016   09/12/2017   $ 50,080     $ –     $ (50,080 )     1,222     $ –     $ 5,581     $ (5,581 )   $ –     $ –   10   01/24/2017   01/24/2018     55,000       –       –       –       55,000       80,875       8,258       89,134       –   10-1   02/10/2023   02/10/2024     50,000       –       (50,000 )     –       –       6,658       (6,658 )     –       –   10-2   03/30/2023   03/30/2024     25,000       –       –       –       25,000       2,836       3,442       6,277       –   10-3   08/11/2023   08/11/2024     25,000       –       –       –       25,000       1,469       3,130       4,599       –   29-2   11/08/2019   11/08/2020     36,604       (36,604 )     –       –       –       10,109       (10,109 )     –       –   31   08/28/2019   08/28/2020     –       –       –       –       –       8,385       (8,385 )     –       –   37-1   09/03/2020   06/30/2021     113,667       (113,667 )     –       –       –       64,929       (64,929 )     –       –   37-2   11/02/2020   08/31/2021     113,167       (113,167 )     –       –       –       63,594       (63,594 )     –       –   37-3   12/29/2020   09/30/2021     113,166       (113,166 )     –       –       –       62,558       (62,558 )     –       –   40-1   09/22/2022   09/22/2024     2,600,000       (2,600,000 )     –       938,908 (1)     –       252,665       (252,655 )     –       –   40-2   11/04/2022   09/22/2024     68,667       (68,667 )     –       –       –       7,939       (7,939 )     –       –   40-3   11/28/2022   09/22/2024     68,667       (68,667 )     –       –       –       7,506       (7,506 )     –       –   40-4   12/21/2022   09/22/2024     68,667       (68,667 )     –       –       –       7,054       (7,054 )     –       –   40-5   01/24/2023   03/21/2024     90,166       (90,166 )     –       –       –       8,284       (8,284 )     –       –   40-6   03/21/2023   09/22/2024     139,166       (139,166 )     –       –       –       10,671       (10,671 )     –       –   40-7   06/05/2023   06/05/2024     139,166       (139,166 )     –       –       –       7,826       (7,826 )     –       –   40-8   06/13/2023   06/13/2024     21,167       (21,167 )     –       –       –       1,127       (1,127 )     –       –   40-9   07/19/2023   07/19/2024     35,500       (35,500 )     –       –       –       1,605       (1,605 )     –       –   40-10   07/24/2023   07/24/2024     14,000       (14,000 )     –       –       –       614       (614 )     –       –   41   08/25/2023   08/25/2024     5,000       –       (5,000 )     –       –       175       (175 )     –                     $ 3,831,850     $ (3,621,770 )   $ (105,080 )     940,130     $ 105,000     $ 612,460     $ (512,450 )   $ 100,010     $ –     (1) 938,908 Series Y Senior Convertible Preferred Shares issued in exchange for full value of the outstanding principal and interest on Notes 40-1, 40-2, 40-3, 40-4, 40-5, 40-6, 40-7, 40-8, 40-9 and 40-10   Note 9   On September 12, 2016, the Company issued a convertible promissory note in the principal of $80,000 for services rendered, which matured on September 12, 2017. Note 9 was in default and accrued at a default interest rate of 20% per annum. In May of 2024, the $58,846 total outstanding principal and interest was paid in full.   Note 10, 10-1, 10-2 and 10-3   On January 24, 2017, the Company issued a convertible promissory note in the principal amount of $80,000 for services rendered, which matured on January 24, 2018. Note 10 is currently in default and accrues interest at a default interest rate of 20% per annum. On February 10, 2023, the Company executed a second tranche under this note in the principal amount of $50,000 (Note 10-1). On March 30, 2023, the Company executed a third tranche under this note in the principal amount of $25,000 (Note 10-2). On August 11, 2023, the Company executed a fourth tranche under this note in the principal amount of $25,000 (Note 10-3). In May of 2024, the $63,513 total outstanding principal and interest on Note 10-1 was paid in full. Notes 10-2 and 10-3 are currently in default and accrue interest at a default interest rate of 20% per annum.   Notes 29-2, 37-1, 37-2 and 37-3   On May 10, 2019, the Company issued a convertible promissory note in the principal amount of $150,000. On November 8, 2019, this note (Note 29) was purchased by and assigned to an unrelated party. The amount assigned was the existing principal amount of $150,000 and accrued interest of $5,918, which was issued as Note 29-1, plus a new convertible promissory note in the principal amount of $62,367, which was issued as Note 29-2.   On September 3, 2020, the Company issued a convertible promissory note in the principal amount of $200,000, with an original issue discount of $50,000, which could be drawn in several tranches. On September 3, 2020, the Company executed the first tranche in the principal amount of $67,000, less an original issue discount of $17,000, which matured on June 30, 2021 (Note 37-1). On November 2, 2020, the Company executed the second tranche in the principal amount of $66,500, less an original issue discount of $16,500, which matured on August 31, 2021 (Note 37-2). On December 29, 2020, the Company executed the third tranche in the principal amount of $66,500, less an original issue discount of $16,500, which matured on September 30, 2021 (Note 37-3).   On June 11, 2024, the Company entered into a settlement agreement and release of claims with the holder of Notes 29-2, 37-1, 37-2 and 37-3 (see Note 7. Notes and Loans Payable for further details). Pursuant to the settlement agreement and release of claims, the holder agreed to cancel these notes, along with the cancellation of their holding in the series R preferred stock, in exchange for a new fixed amount settlement promissory note in the principal amount of $535,000.   Notes 40-1, 40-2, 40-3, 40-4, 40-5, 40-6, 40-7, 40-8, 40-9 and 40-10   On September 22, 2022, the Company issued a convertible promissory note in the principal amount of $2,600,000 in exchange for total of $4,791,099 of defaulted promissory notes balances (Note 40-1). On November 4, 2022, the Company executed a second tranche under this note in the principal amount of $68,667, less an original issue discount and fee of $18,667 (Note 40-2). On November 28, 2022, the Company executed the third tranche under this note in the principal amount of $68,667, less an original issue discount and fee of $18,667 (Note 40-3). On December 21, 2022, the Company executed a fourth tranche under this note in the principal amount of $68,667, less an original issue discount and fee of $18,667 (Note 40-4). On January 24, 2023, the Company executed a fifth tranche under this note in the principal amount of $90,166, less an original issue discount and fee of $25,166 (Note 40-5). On March 21, 2023, the Company executed a sixth tranche under this note in the principal amount of $136,666, less an original issue discount and fee of $39,166 (Note 40-6). On June 5, 2023, the Company executed a seventh tranche under this note in the principal amount of $136,667, less original issue discount and fee of $39,167 (Note 40-7). On June 13, 2023, the Company executed an eighth tranche under this note in the principal amount of $21,167, less original issue discount and fee of $5,167 (Note 40-8). On July 19, 2023, the Company executed a ninth tranche under this note in the principal amount of $35,500, less an original issue discount and fee of $8,875 (Note 40-9). On July 24, 2023, the Company executed a tenth tranche under this note in the principal amount of $14,000, less an original issue discount and fee of $3,500 (Note 40-10). On December 1, 2023, the Company executed amendment on Notes series 40 consolidated senior secured convertible promissory note to extend the expired tranche note 40-1 through 40-5’ due date to September 20, 2024. All of the Note 40 tranches mature in one year from the note issuance date and accrue interest at a rate of 10% per annum.   On April 11, 2024, the Company issued 938,908 shares of series Y senior convertible preferred stock in exchange for the settlement of the principal and interest in full on Notes 40-1, 40-2, 40-3, 40-4, 40-5, 4-6, 40-7, 40-8, 40-9 and 40-10. See also Note 9. Capital Stock.   Note 41   On August 25, 2023, the Company issued a twelve-month convertible promissory note in the principal amount of $5,000 to the Company’s CEO for the Company’s operating expenses. The rate of interest is 10% per annum. In August of 2024, the remaining outstanding principal and interest of $5,501 was paid in full.

v3.24.3

CAPITAL STOCK	9 Months Ended
	Sep. 30, 2024
Equity [Abstract]
CAPITAL STOCK	9. CAPITAL STOCK   On May 8, 2024, the Company amended its Articles of Incorporation to increase its authorized stock. The total amended authorized shares are 350,000,000 shares of capital stock, consisting of 300,000,000 shares of common stock, $0.001 par value, and 50,000,000 shares of preferred stock, $0.001 par value per share.   Preferred Stock   The Company has designated multiple series of preferred stock, including 2 shares of series A preferred stock, 3,000,000 shares of series B preferred stock, 500 shares of series C preferred stock, 1,000,000 shares of series E preferred stock, 50,000 shares of series F-1 preferred stock, 15,000,000 shares of series I preferred stock, 2,000,000 shares of series J preferred stock, 400,000 shares of series L preferred stock, 3,000,000 shares of series N senior convertible preferred stock, 5,000 shares of series R convertible preferred stock, 5,000,000 shares of series X senior convertible preferred stock and 1,000,000 shares of series Y senior convertible preferred stock.   The following is a description of the rights and preferences of each series of preferred stock.   Redeemable Preferred Stock   The Company recognizes the series N senior convertible preferred stock, series R convertible preferred stock and series X senior convertible preferred stock as mezzanine equity in accordance with ASC 480, “Distinguishing Liabilities from Equity”.   Series N Senior Convertible Preferred Stock   Ranking. The series N senior convertible preferred stock ranks, with respect to the payment of dividends and the distribution of assets upon liquidation, (i) senior to all common stock and each other class or series that is not expressly made senior to or on parity with the series N senior convertible preferred stock; (ii) on parity with each class or series that is not expressly subordinated or made senior to the series N senior convertible preferred stock; and (iii) junior to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company and each class or series that is expressly made senior to the series N senior convertible preferred stock.   Dividend Rights. Holders of series N senior convertible preferred stock are entitled to dividends at a rate per annum of 12.0% of the stated value ($4.00 per share); provided that upon an event of default (as defined in the certificate of designation for the series N senior convertible preferred stock), such rate would increase by 8% per annum. Dividends accrued from day to day, whether or not declared, and are cumulative. Dividends are payable quarterly in arrears on each dividend payment date in cash or common stock at the Company’s discretion. Dividends payable in common stock are to be calculated based on a price equal to eighty percent (80%) of the volume weighted average price for the common stock on the Company’s principal trading market (the “VWAP”) during the five (5) trading days immediately prior to the applicable dividend payment date. At September 30, 2024 and December 31, 2023, cumulative dividends earned on the series N senior convertible preferred stock were $1,211,585 and $766,437, respectively. At September 30, 2024 $1,106,562 of the cumulative accrued dividends were paid by the Company via the issuance of 197,601 shares of the Company’s common stock. The remaining $105,023 cumulative accrued dividend will be paid during the fourth quarter 2024 via the issuance of 26,256 shares of the Company’s series N senior convertible preferred stock.   Liquidation Rights. Subject to the rights of creditors and the holders of any senior securities or parity securities (in each case, as defined in the certificate of designation), upon any liquidation of the Company or its subsidiaries, before any payment or distribution of the assets of the Company (whether capital or surplus) are to be made to or set apart for the holders of junior securities (as defined in the certificate of designation), including the common stock, each holder of outstanding series N senior convertible preferred stock is entitled to receive an amount of cash equal to 115% of the stated value of $4.00 per share, plus an amount of cash equal to all accumulated accrued and unpaid dividends thereon (whether or not declared) to, but not including the date of final distribution to such holders.   Voting Rights. Holders of series N senior convertible preferred stock do not have any voting rights; provided that, so long as any shares of series N senior convertible preferred stock are outstanding, the affirmative vote of holders of a majority of the series N senior convertible preferred stock, which majority must include SILAC Insurance Company so long as it holds any shares of series N senior convertible preferred stock, voting as a separate class, is necessary for approving, effecting or validating any amendment, alteration or repeal of any of the provisions of the certificate of designation or prior to the Company’s (or Nova’s) creation or issuance of any parity securities or new indebtedness (as defined in the certificate of designation); provided that the foregoing does not apply to any financing transaction the use of proceeds of which would be used to redeem the series N senior convertible preferred stock and the warrants issued in connection therewith. In addition, the affirmative vote of holders of 66% of the series N senior convertible preferred stock, voting as a separate class, is required prior to the Company’s (or Nova’s) creation or issuance of any senior securities.   Conversion Rights. Each share of series N senior convertible preferred stock, plus all accrued and unpaid dividends thereon, are convertible, at the option of the holder thereof, at any time and from time to time, into such number of fully paid and nonassessable shares of common stock determined by dividing the stated value ($4.00 per share), plus the value of the accrued, but unpaid, dividends thereon, by a conversion price of $900 per share (subject to standard adjustments in the event of any stock splits, stock combinations, stock reclassifications, dividends paid in common stock, sales of substantially all assets, mergers, consolidations or similar transactions); provided that in no event shall the holder of any series N senior convertible preferred stock be entitled to convert any number of shares that upon conversion the sum of (i) the number of shares of common stock beneficially owned by the holder and its affiliates and (ii) the number of shares of common stock issuable upon the conversion of the series N senior convertible preferred stock with respect to which the determination of this proviso is being made, would result in beneficial ownership by the holder and its affiliates of more than 4.99% of the then outstanding common stock. This limitation can be waived (up to a maximum of 9.99%) by the holder and in its sole discretion, upon not less than sixty-one (61) days’ prior notice to the Company.   Redemption Rights. The Company may redeem the series N senior convertible preferred stock at any time by paying in cash therefore a sum equal to 115% of the stated value of $4.00 per share, plus the amount of accrued and unpaid dividends and any other amounts due pursuant to the terms of the certificate of designation. In addition, any holder may require the Company to redeem some or all of its shares of series N senior convertible preferred stock on the same terms after a period of twelve months from the date of issuance; provided, however, that such redemption right shall only be exercisable if the Company raises at least $5,000,000 or the common stock is trading on the Nasdaq Stock Market or the New York Stock Exchange.   Series R Convertible Preferred Stock   The series R convertible preferred stock was cancelled as part of the June 2024 promissory note and settlement agreement. See also Note 7. Notes and Loans Payable and Note 8. Convertible Notes Payable.   Ranking. The series R convertible preferred stock ranked, with respect to the distribution of assets upon liquidation, (i) senior to all common stock, series A preferred stock, series B preferred stock, series C preferred stock, series E preferred stock, series F-1 preferred stock, series I preferred stock, series J preferred stock, series L preferred stock and to each other class or series that is not expressly made senior to or on parity with the series R convertible preferred stock; (ii) on parity with each class or series that is not expressly subordinated or made senior to the series R convertible preferred stock; and (iii) junior to the series N senior convertible preferred stock, series X senior convertible preferred stock and to each other series of preferred stock and each class or series that is expressly made senior to the series R convertible preferred stock, as well as to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company.   Dividend Rights. The holders of series R convertible preferred stock were entitled to receive cumulative dividends in the amount of twelve percent (12%) per annum, payable quarterly. In addition, holders of series R convertible preferred stock were entitled to receive dividends equal (on an as converted to common stock basis) to and in the same form as dividends actually paid on shares of common stock when, as and if such dividends are paid on shares of common stock. Any dividends that were not paid when due were to continue to accrue and entailed a late fee, which must be paid in cash, at the rate of 18% per annum or the lesser rate permitted by applicable law which was to accrue and compound daily from the missed payment date through and including the date of actual payment in full. At September 30, 2024 and December 31, 2023, cumulative dividends on Series R Preferred Stock were $0 and $109,980, respectively.   Liquidation Rights. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders of series R convertible preferred stock were entitled to receive out of the assets, whether capital or surplus, of the Company an amount equal to the stated value ($1,200), plus any accrued and unpaid dividends thereon and any other fees or liquidated damages then due and owing, for each share of series R convertible preferred stock before any distribution or payment shall be made to the holders of any junior securities.   Voting Rights. The holders of series R convertible preferred stock voted together with the common stock on an as-converted basis. However, as long as any shares of series R convertible preferred stock were outstanding, the Company shall not, without the affirmative vote of the holders of a majority of the then outstanding shares of the series R convertible preferred stock, directly and/or indirectly (i) alter or change adversely the powers, preferences or rights given to the series R convertible preferred stock or alter or amend the certificate of designation, (ii) authorize or create any class of stock ranking as to redemption or distribution of assets upon a liquidation senior to, or otherwise pari passu with, the series R convertible preferred stock, or authorize or create any class of stock ranking as to dividends senior to, or otherwise pari passu with, the series R convertible preferred stock, (iii) amend its articles of incorporation or other charter documents in any manner that adversely affects any rights of the holders of the series R convertible preferred stock, (iv) increase the number of authorized shares of series R convertible preferred stock, or (v) enter into any agreement with respect to any of the foregoing.   Conversion Rights. Each share of series R convertible preferred stock was convertible, at the option of the holder thereof, at any time and from time to time, into such number of fully paid and nonassessable shares of common stock determined by dividing the stated value ($1,200 per share) by a conversion price equal to the lower of (i) $75.0 and (ii) the lowest daily VWAP during the twenty (20) trading days immediately prior to the applicable conversion date. Notwithstanding the foregoing, the Company shall not effect any conversion of the series R convertible preferred stock, and a holder shall not have the right to convert any portion of the series R convertible preferred stock, to the extent that, after giving effect to the conversion, such holder (together with such holder’s affiliates, and any persons acting as a group together with such holder or any of such holder’s affiliates) would beneficially own in excess of 4.99% of the then outstanding common stock. The conversion price was subject to adjustment for any stock dividend, stock split, stock combination, reclassification or similar transaction that proportionately decreases or increases the common stock, as well as for mergers, business combinations and certain other fundamental transactions. In addition, subject to certain exceptions, upon any issuance by the Company or any of its subsidiaries of common stock or common stock equivalents for cash consideration, indebtedness or a combination of units thereof (a “Subsequent Financing”), the holder could have elected, in its sole discretion, to exchange (in lieu of conversion), if applicable, all or some of the shares of series R convertible preferred stock then held for any securities or units issued in a Subsequent Financing on a $1.00 for $1.00 basis.   Participation Rights. Subject to certain exceptions, upon a Subsequent Financing, a holder of at least 100 shares of series R convertible preferred stock were to have the right to participate in up to an amount of the Subsequent Financing equal to 100% of the Subsequent Financing on the same terms, conditions and price provided for in the Subsequent Financing.   Company Redemption Rights. The Company had the right to redeem all (but not less than all), shares of the series R convertible preferred stock issued and outstanding at any time upon three (3) business days’ notice, at a redemption price per share equal to the product of (i) the Premium Rate multiplied by (ii) the sum of (x) the stated value ($1,200), (y) all accrued but unpaid dividends, and (z) all other amounts due to the holder. “Premium Rate” means (a) 1.1 if all of the series R convertible preferred stock is redeemed within ninety (90) calendar days from the issuance date thereof; (b) 1.2 if all of the series R convertible preferred stock is redeemed after ninety (90) calendar days and within one hundred twenty (120) calendar days from the issuance date thereof; (c) 1.3 if all of the series R convertible preferred stock is redeemed after one hundred twenty (120) calendar days and within one hundred eighty (180) calendar days from the issuance date thereof; and (iv) 1.0 if all of the series R convertible preferred stock is redeemed after one hundred eighty (180) calendar days.   Redemption Upon Triggering Events. Upon the occurrence of a Triggering Event (as defined below), each holder of series R convertible preferred stock had (in addition to all other rights it may have) the right, exercisable at the sole option of such holder, to require the Company to (A) redeem all of the series R convertible preferred stock then held by such holder for a redemption price, in cash, equal to the Triggering Redemption Amount (as defined below), or (B) at the option of each holder either (i) redeem all of the series R convertible preferred stock then held by such holder though the issuance to such holder of such number of shares of common stock equal to the quotient of (x) the Triggering Redemption Amount, divided by (y) the lowest of (1) the conversion price, and (2) 75% of the average of the 10 VWAPs immediately prior to the date of election, or (ii) increase the dividend rate on all of the outstanding series R convertible preferred stock held by such holder retroactively to the initial issuance date to 18% per annum thereafter. “Triggering Redemption Amount” means, for each share of series R convertible preferred stock, the sum of (a) the greater of (i) 130% of the stated value and (ii) the product of (y) the VWAP on the trading day immediately preceding the date of the Triggering Event, multiplied by (z) the stated value divided by the then applicable conversion price, (b) all accrued but unpaid dividends thereon and (c) all liquidated damages, late fees and other costs, expenses or amounts due in respect of the series R convertible preferred stock including, but not limited to legal fees and expenses of legal counsel to the holder in connection with, related to and/or arising out of a Triggering Event. A “Triggering Event” means any of the following events (whatever the reason for such event and whether such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):     · the Company shall fail to deliver the shares of common stock issuable upon a conversion prior to the fifth (5th) trading day after such shares are required to be delivered, or the Company shall provide written notice to any holder, including by way of public announcement, at any time, of its intention not to comply with requests for conversion of any shares of series R convertible preferred stock in accordance with the terms of the certificate of designation;         · the Company shall fail for any reason to pay in full the amount of cash due pursuant to a Buy-In (as defined in the certificate of designation) within five (5) trading days after notice therefor is delivered;         · the Company shall fail to have available a sufficient number of authorized and unreserved shares of common stock to issue to such holder upon a conversion;         · unless specifically addressed elsewhere in the certificate of designation as a Triggering Event, the Company shall fail to observe or perform any other covenant, agreement or warranty contained in, or otherwise commit any breach of the Transaction Documents (as defined in the certificate of designation), and such failure or breach shall not, if subject to the possibility of a cure by the Company, have been cured within five (5) calendar days after the date on which written notice of such failure or breach shall have been delivered;         · the Company shall redeem junior securities or pari passu securities;         · the Company shall be party to a Change of Control Transaction (as defined in the certificate of designation);         · there shall have occurred a Bankruptcy Event (as defined in the certificate of designation);         · any monetary judgment, writ or similar final process shall be entered or filed against the Company, any subsidiary or any of their respective property or other assets for more than $50,000 (provided that amounts covered by the Company’s insurance policies are not counted toward this $50,000 threshold), and such judgment, writ or similar final process shall remain unvacated, unbonded or unstayed for a period of thirty (30) trading days;         · the electronic transfer by the Company of shares of common stock through the Depository Trust Company or another established clearing corporation once established subsequent to the date of the certificate of designation is no longer available or is subject to a ‘freeze” and/or “chill;” or         · any “Event of Default,” as defined in the Purchase Agreement (as defined in the certificate of designation).   Series X Senior Convertible Preferred Stock   Ranking. The series X senior convertible preferred stock ranks, with respect to the payment of dividends and the distribution of assets upon liquidation, (i) senior to all common stock and each other class or series that is not expressly made senior to or on parity with the series X senior convertible preferred stock; (ii) on parity with each class or series that is not expressly subordinated or made senior to the series X senior convertible preferred stock; and (iii) junior to the series N senior convertible preferred stock, all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company and each class or series that is expressly made senior to the series X senior convertible preferred stock.   Dividend Rights. Holders of series X senior convertible preferred stock are entitled to dividends at a rate per annum of 10.0% of the stated value ($4.00 per share); provided that upon an event of default (as defined in the certificate of designation for the series X senior convertible preferred stock), such rate was to increase by 5% per annum. Dividends accrue from day to day, whether or not declared, and are cumulative. Dividends are payable quarterly in arrears on each dividend payment date. At September 30, 2024 and December 31, 2023, cumulative dividends earned on the series X senior convertible preferred stock were $221,018 and $190,685, respectively. At September 30, 2024, $183,210 of the cumulative accrued dividends were paid by the Company via the issuance of 25,173 shares of the Company’s common stock. The remaining $37,808 cumulative accrued dividend will be paid during the fourth quarter 2024 via the issuance of 9,453 shares of the Company’s series X senior convertible preferred stock.   Liquidation Rights. Subject to the rights of creditors and the holders of any senior securities, including the series N senior convertible preferred stock, or parity securities (in each case, as defined in the certificate of designation), upon any liquidation of the Company or its subsidiaries, before any payment or distribution of the assets of the Company (whether capital or surplus) are to be made to or set apart for the holders of junior securities (as defined in the certificate of designation), including the common stock, each holder of outstanding series N senior convertible preferred stock is entitled to receive an amount of cash equal to 100% of the stated value of $4.00 per share, plus an amount of cash equal to all accumulated accrued and unpaid dividends thereon (whether or not declared) to, but not including the date of final distribution to such holders.   Voting Rights. Holders of series X senior convertible preferred stock do not have any voting rights; provided that, so long as any shares of series X senior convertible preferred stock are outstanding, the affirmative vote of holders of a majority of the series X senior convertible preferred stock, which majority must include Leonite Capital LLC so long as it holds any shares of series X senior convertible preferred stock, voting as a separate class, is necessary for approving, effecting or validating any amendment, alteration or repeal of any of the provisions of the certificate of designation or prior to the creation or issuance of any parity securities or new indebtedness (as defined in the certificate of designation); provided that the foregoing does not apply to any financing transaction the use of proceeds of which were to be used to redeem the series X senior convertible preferred stock and the warrants issued in connection therewith. In addition, the affirmative vote of holders of 66% of the series X senior convertible preferred stock, voting as a separate class, is required prior to the creation or issuance of any senior securities.   Conversion Rights. Each share of series X senior convertible preferred stock, plus all accrued and unpaid dividends thereon, are convertible, at the option of the holder thereof, at any time and from time to time, into such number of fully paid and nonassessable shares of common stock determined by dividing the stated value ($4.00 per share), plus the value of the accrued, but unpaid, dividends thereon, by a conversion price equal to the lower of (i) the lowest VWAP during the five (5) trading days immediately prior to the applicable conversion date and (ii) the price per share paid in any subsequent financing (the “Fixed Price”). The Fixed Price is subject to standard adjustments in the event of any stock splits, stock combinations, stock reclassifications, dividends paid in common stock, sales of substantially all assets, mergers, consolidations or similar transactions, as well as a price based antidilution adjustment, pursuant to which, subject to certain exceptions, if the Company issues common stock at a price lower than the Fixed Price, the Fixed Price shall decrease to such lower price. Notwithstanding the foregoing, in no event shall the holder of any series X senior convertible preferred stock be entitled to convert any number of shares that upon conversion the sum of (i) the number of shares of common stock beneficially owned by the holder and its affiliates and (ii) the number of shares of common stock issuable upon the conversion of the series X senior convertible preferred stock with respect to which the determination of this proviso is being made, would result in beneficial ownership by the holder and its affiliates of more than 4.99% of the then outstanding common stock. This limitation may be waived (up to a maximum of 9.99%) by the holder and in its sole discretion, upon not less than sixty-one (61) days’ prior notice to the Company.   Redemption Rights. Commencing on September 22, 2023, any holder may require the Company to redeem its shares by the payment in cash therefore of a sum equal to 100% of the stated value of $4.00 per share, plus the amount of accrued and unpaid dividends and any other amounts due pursuant to the terms of the certificate of designation; provided however, that in the event that the Company completes a public offering prior to the redemption date, then any holder may only cause the Company to redeem any outstanding series X senior convertible preferred stock by paying such redemption price in twelve (12) equal monthly installments with the first such payment due on the date that is six (6) months following the date that the Company completes such public offering.   Non-redeemable Preferred Stock   Series A Preferred Stock   Ranking. The series A preferred stock ranks, with respect to the distribution of assets upon liquidation, (i) senior to all common stock and each other class or series that is not expressly made senior to or on parity with the series A preferred stock; (ii) on parity with each class or series that is not expressly subordinated or made senior to the series A preferred stock; and (iii) junior to the series B preferred stock, series C preferred stock, series E preferred stock, series F-1 preferred stock, series I preferred stock, series J preferred stock, series L preferred stock, series N senior convertible preferred stock, series R convertible preferred stock, series X senior convertible preferred stock and each other series of preferred stock and each class or series that is expressly made senior to the series A preferred stock, as well as to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company.   Dividend Rights. The series A preferred stock is not entitled to participate in any distributions or payments to the holders of common stock or any other class of stock and shall have no economic interest in the Company.   Liquidation Rights. In the event of any liquidation, dissolution or winding up of the Company, either voluntarily or involuntarily, a merger or consolidation of the Company wherein the Company is not the surviving entity, or a sale of all or substantially all of the assets of the Company, the holders of each share of series A preferred stock shall be entitled to receive from any distribution of any of the assets or surplus funds of the Company, before and in preference of any holder of shares of common stock, an amount equal to the stated value of $250. Once the holders receive the foregoing from any such liquidation, dissolution or winding up, the holders shall not participate with the common stock or any other class of stock.   Voting Rights. Each share of series A preferred stock shall have a number of votes at any time equal to (i) 25% of the number of votes then held or entitled to be made by all other equity securities of the Company, including, without limitation, the common stock, plus (ii) one (1). The series A preferred stock shall vote on any matter submitted to the holders of the common stock, or any other class of voting securities, for a vote, and shall vote together with the common stock, or any class of voting securities, as applicable, on such matter for as long as the shares of series A preferred stock are issued and outstanding. Notwithstanding the foregoing, the series A preferred stock shall not have the right to vote on any matter as to which solely another series of preferred stock is entitled to vote pursuant to the Company’s amended and restated articles of incorporation or a certificate of designation of such other series of preferred stock.   Transfer. Upon transfer of any share of series A preferred stock, except for a transfer by the holder to an affiliate, whether such transfer is voluntary or involuntary, such share of series A preferred stock shall automatically, and without any action being required by the Company or the holder, be converted into one (1) share of common stock.   Other Rights. Holders of series A preferred stock do not have any conversion (except as set forth above) or redemption rights.   Series B Preferred Stock   Ranking. The series B preferred stock ranks, with respect to the distribution of assets upon liquidation, (i) senior to all common stock, series A preferred stock and to each other class or series that is not expressly made senior to or on parity with the series B preferred stock; (ii) on parity with the series C preferred stock, series E preferred stock, series F-1 preferred stock, series J preferred stock, series L preferred stock and each other class or series that is not expressly subordinated or made senior to the series B preferred stock; and (iii) junior to the series I preferred stock, series N senior convertible preferred stock, series R convertible preferred stock, series X senior convertible preferred stock and to each other series of preferred stock and each class or series that is expressly made senior to the series B preferred stock, as well as to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company.   Dividend Rights. The holders of series B preferred stock are entitled to receive dividends equal (on an as converted to common stock basis) to and in the same form as dividends actually paid on shares of common stock when, as and if such dividends are paid on shares of common stock. No other dividends shall be paid on shares of series B preferred stock.   Liquidation Rights. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders of series B preferred stock shall be entitled to receive out of the assets of the Company the same amount that a holder of common stock would receive if the shares of series B preferred stock were fully converted to common stock immediately prior to such liquidation, which amount shall be paid to the holders of series B preferred stock pari passu with all holders of parity securities and in preference to the holders of junior securities.   Voting Rights. On any matter presented to stockholders for their action or consideration, each holder of series B preferred stock shall be entitled to cast one (1) vote per share of series B preferred stock held. Except as provided by law, the holders of series B preferred stock shall vote together with the holders of shares of common stock as a single class. However, as long as any shares of series B preferred stock are outstanding, the Company shall not, without the affirmative vote of the holders of a majority of outstanding series B preferred stock, (a) alter or change adversely the powers, preferences or rights given to the series B preferred stock or alter or amend the certificate of designation for the series B preferred stock, or (b) amend the Company’s amended and restated articles of incorporation or other charter documents in any manner that adversely affects any rights of the holders of series B preferred stock.   Conversion Rights. Each share of series B preferred stock is convertible, at any time and from time to time at the option of the holder thereof, into such number of shares of common stock as is determined as follows: (i) if the closing market price of the common stock on the principal trading market on which the common stock is then traded or quoted is less than $4.00 per share, then each share of series B preferred stock shall be convertible into a number of shares of common stock equal to two (2) times the stated value ($4.00 per share), divided by such closing market price on the date of conversion; or (ii) if such closing market price is equal to or greater than $4.00 per share, then each share of series B preferred stock shall be convertible into two (2) shares of common stock. In addition, upon the earlier to occur of: (a) the closing of the sale of shares of common stock to the public at a price of at least $3.00 per share in a public offering pursuant to an effective registration statement or offering statement under the Securities Act resulting in at least $3,000,000 of gross proceeds to the Company, (b) the date on which the shares of common stock of the Company are listed on a national stock exchange, including without limitation the New York Stock Exchange, NYSE American or the Nasdaq Stock Market (any tier), or (c) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least 67% of the then outstanding shares of series B preferred stock, voting together as a single class, each share of series B preferred stock shall be automatically converted into such number of shares of common stock as is determined in accordance with the provisions above. Such conversion price is subject to standard adjustments in the event of any stock dividends, stock reclassifications and similar events (but not for reverse stock splits).   Redemption Rights. Holders of series B preferred stock do not have any redemption rights.   Series C Preferred Stock   Ranking. The series C preferred stock ranks, with respect to the distribution of assets upon liquidation, (i) senior to all common stock, series A preferred stock and to each other class or series that is not expressly made senior to or on parity with the series C preferred stock; (ii) on parity with the series B preferred stock, series E preferred stock, series F-1 preferred stock, series J preferred stock, series L preferred stock and each other class or series that is not expressly subordinated or made senior to the series C preferred stock; and (iii) junior to the series I preferred stock, series N senior convertible preferred stock, series R convertible preferred stock, series X senior convertible preferred stock and to each other series of preferred stock and each class or series that is expressly made senior to the series C preferred stock, as well as to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company.   Dividend Rights. The holders of series C preferred stock are entitled to receive dividends equal (on an as converted to common stock basis) to and in the same form as dividends actually paid on shares of common stock when, as and if such dividends are paid on shares of common stock. No other dividends shall be paid on shares of series C preferred stock.   Liquidation Rights. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders of series C preferred stock shall be entitled to receive out of the assets of the Company the same amount that a holder of common stock would receive if the shares of series C preferred stock were fully converted to common stock immediately prior to such liquidation, which amount shall be paid to the holders of series C preferred stock pari passu with all holders of parity securities and in preference to the holders of junior securities.   Voting Rights. On any matter presented to stockholders for their action or consideration, each holder of series C preferred stock shall be entitled to cast one (1) vote per share of series C preferred stock held. Except as provided by law, the holders of series C preferred stock shall vote together with the holders of shares of common stock as a single class. However, as long as any shares of series C preferred stock are outstanding, the Company shall not, without the affirmative vote of the holders of a majority of outstanding series C preferred stock, (a) alter or change adversely the powers, preferences or rights given to the series C preferred stock or alter or amend the certificate of designation for the series C preferred stock, or (b) amend the Company’s amended and restated articles of incorporation or other charter documents in any manner that adversely affects any rights of the holders of series C preferred stock.   Conversion Rights. Each share of series C preferred stock is convertible, at any time and from time to time at the option of the holder thereof, into such number of shares of common stock as is determined by dividing the stated value ($4.00 per share) by a conversion price of $0.00004. In addition, on the date on which the shares of common stock are listed on a national stock exchange, including without limitation the New York Stock Exchange, NYSE American or the Nasdaq Stock Market (any tier) (a “Listing Event”), all outstanding shares of series C preferred stock shall be automatically converted into such number of shares of common stock as is determined by dividing $50,000 by the highest traded or closing price on such date, which such shares of common stock shall be issued pro rata among the holders of the outstanding series C preferred stock. Finally, upon the earlier to occur of: (a) the closing of the sale of shares of common stock to the public at a price of at least $3.00 per share (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the common stock) in a public offering pursuant to an effective registration statement or offering statement under the Securities Act resulting in at least $3,000,000 of gross proceeds to the Company or (b) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least 67% of the then outstanding shares of series C preferred stock, voting together as a single class, each share of series C preferred stock shall be automatically converted into such number of shares of common stock as is determined by dividing the stated value ($4.00 per share) by a conversion price of $0.00004. Such conversion price is subject to standard adjustments in the event of any stock dividends, stock reclassifications and similar events (but not for reverse stock splits).   Redemption Rights. If there is a Listing Event, the Company shall have the right (but not the obligation) to redeem shares of series C preferred stock at a price per share of $50,000.   Series E Preferred Stock   Ranking. The series E preferred stock ranks, with respect to the distribution of assets upon liquidation, (i) senior to all common stock, series A preferred stock and to each other class or series that is not expressly made senior to or on parity with the series E preferred stock; (ii) on parity with the series B preferred stock, series C preferred stock, series F-1 preferred stock, series J preferred stock, series L preferred stock and each other class or series that is not expressly subordinated or made senior to the series E preferred stock; and (iii) junior to the series I preferred stock, series N senior convertible preferred stock, series R convertible preferred stock, series X senior convertible preferred stock and to each other series of preferred stock and each class or series that is expressly made senior to the series E preferred stock, as well as to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company.   Dividend Rights. The holders of series E preferred stock are entitled to receive dividends equal (on an as converted to common stock basis) to and in the same form as dividends actually paid on shares of common stock when, as and if such dividends are paid on shares of common stock. No other dividends shall be paid on shares of series E preferred stock.   Liquidation Rights. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders of series E preferred stock shall be entitled to receive out of the assets of the Company the same amount that a holder of common stock would receive if the shares of series E preferred stock were fully converted to common stock immediately prior to such liquidation, which amount shall be paid to the holders of series E preferred stock pari passu with all holders of parity securities and in preference to the holders of junior securities.   Voting Rights. On any matter presented to stockholders for their action or consideration, each holder of series E preferred stock shall be entitled to cast one (1) vote per share of series E preferred stock held. Except as provided by law, the holders of series E preferred stock shall vote together with the holders of shares of common stock as a single class. However, as long as any shares of series E preferred stock are outstanding, the Company shall not, without the affirmative vote of the holders of a majority of outstanding series E preferred stock, (a) alter or change adversely the powers, preferences or rights given to the series E preferred stock or alter or amend the certificate of designation for the series E preferred stock, or (b) amend the Company’s amended and restated articles of incorporation or other charter documents in any manner that adversely affects any rights of the holders of series E preferred stock.   Conversion Rights. Each share of series E preferred stock is convertible, at any time and from time to time at the option of the holder thereof, into such number of shares of common stock as is determined as follows: (i) if the closing market price of the common stock on the principal trading market on which the common stock is then traded or quoted is less than $4.00 per share, then each share of series E preferred stock shall be convertible into a number of shares of common stock equal to two (2) times the stated value ($4.00 per share), divided by such closing market price on the date of conversion; or (ii) if such closing market price is equal to or greater than $4.00 per share, then each share of series E preferred stock shall be convertible into two (2) shares of common stock. In addition, upon the earlier to occur of: (a) the closing of the sale of shares of common stock to the public at a price of at least $3.00 per share in a public offering pursuant to an effective registration statement or offering statement under the Securities Act resulting in at least $3,000,000 of gross proceeds to the Company, (b) the date on which the shares of common stock of the Company are listed on a national stock exchange, including without limitation the New York Stock Exchange, NYSE American or the Nasdaq Stock Market (any tier), or (c) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least 67% of the then outstanding shares of series E preferred stock, voting together as a single class, each share of series E preferred stock shall be automatically converted into such number of shares of common stock as is determined in accordance with the provisions above. Such conversion price is subject to standard adjustments in the event of any stock dividends, stock reclassifications and similar events (but not for reverse stock splits).   Series F-1 Preferred Stock   Ranking. The series F-1 preferred stock ranks, with respect to the distribution of assets upon liquidation, (i) senior to all common stock, series A preferred stock and to each other class or series that is not expressly made senior to or on parity with the series F-1 preferred stock; (ii) on parity with the series B preferred stock, series C preferred stock, series E preferred stock, series J preferred stock, series L preferred stock and each other class or series that is not expressly subordinated or made senior to the series F-1 preferred stock; and (iii) junior to the series I preferred stock, series N senior convertible preferred stock, series R convertible preferred stock, series X senior convertible preferred stock and to each other series of preferred stock and each class or series that is expressly made senior to the series F-1 preferred stock, as well as to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company.   Dividend Rights. The holders of series F-1 preferred stock are entitled to receive dividends equal (on an as converted to common stock basis) to and in the same form as dividends actually paid on shares of common stock when, as and if such dividends are paid on shares of common stock. No other dividends shall be paid on shares of series F-1 preferred stock.   Liquidation Rights. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders of series F-1 preferred stock shall be entitled to receive out of the assets of the Company the same amount that a holder of common stock would receive if the shares of series F-1 preferred stock were fully converted to common stock immediately prior to such liquidation, which amount shall be paid to the holders of series F-1 preferred stock pari passu with all holders of parity securities and in preference to the holders of junior securities.   Voting Rights. Except as provided by law, the holders of series F-1 preferred stock shall have no voting rights. However, as long as any shares of series F-1 preferred stock are outstanding, the Company shall not, without the affirmative vote of the holders of a majority of outstanding series F-1 preferred stock, (a) alter or change adversely the powers, preferences or rights given to the series F-1 preferred stock or alter or amend the certificate of designation for the series F-1 preferred stock, or (b) amend the Company’s amended and restated articles of incorporation or other charter documents in any manner that adversely affects any rights of the holders of series F-1 preferred stock.   Conversion Rights. Each share of series F-1 preferred stock is convertible, at any time and from time to time at the option of the holder thereof, into such number of shares of common stock as is determined as follows: (i) if the closing market price of the common stock on the principal trading market on which the common stock is then traded or quoted is less than $4.00 per share, then each share of series F-1 preferred stock shall be convertible into a number of shares of common stock equal to two (2) times the stated value ($4.00 per share), divided by such closing market price on the date of conversion; or (ii) if such closing market price is equal to or greater than $4.00 per share, then each share of series F-1 preferred stock shall be convertible into two (2) shares of common stock. In addition, upon the earlier to occur of: (a) the closing of the sale of shares of common stock to the public at a price of at least $3.00 per share in a public offering pursuant to an effective registration statement or offering statement under the Securities Act resulting in at least $3,000,000 of gross proceeds to the Company, (b) the date on which the shares of common stock of the Company are listed on a national stock exchange, including without limitation the New York Stock Exchange, NYSE American or the Nasdaq Stock Market (any tier), or (c) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least 67% of the then outstanding shares of series F-1 preferred stock, voting together as a single class, each share of series F-1 preferred stock shall be automatically converted into such number of shares of common stock as is determined in accordance with the provisions above. Such conversion price is subject to standard adjustments in the event of any stock dividends, stock reclassifications and similar events (but not for reverse stock splits).   Redemption Rights. Holders of series F-1 preferred stock do not have any redemption rights.    Series I Preferred Stock   Ranking. The series I preferred stock ranks, with respect to the distribution of assets upon liquidation, (i) senior to all common stock, series A preferred stock, series B preferred stock, series C preferred stock, series E preferred stock, series F-1 preferred stock, series J preferred stock, series L preferred stock and to each other class or series that is not expressly made senior to or on parity with the series I preferred stock; (ii) on parity with each class or series that is not expressly subordinated or made senior to the series I preferred stock; and (iii) junior to the series N senior convertible preferred stock, series R convertible preferred stock, series X senior convertible preferred stock and to each other series of preferred stock and each class or series that is expressly made senior to the series I preferred stock, as well as to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company.   Dividend Rights. The holders of series I preferred stock are entitled to receive dividends equal (on an as converted to common stock basis) to and in the same form as dividends actually paid on shares of common stock when, as and if such dividends are paid on shares of common stock. No other dividends shall be paid on shares of series I preferred stock.   Liquidation Rights. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders of series I preferred stock shall be entitled to receive out of the assets of the Company the same amount that a holder of common stock would receive if the shares of series I preferred stock were fully converted to common stock immediately prior to such liquidation, which amount shall be paid to the holders of series I preferred stock pari passu with all holders of parity securities and in preference to the holders of junior securities.   Voting Rights. On any matter presented to stockholders for their action or consideration, each holder of series I preferred stock shall be entitled to cast five (5) votes per share of series I preferred stock held. Except as provided by law, the holders of series I preferred stock shall vote together with the holders of shares of common stock as a single class. However, as long as any shares of series I preferred stock are outstanding, the Company shall not, without the affirmative vote of the holders of a majority of outstanding series I preferred stock, (a) alter or change adversely the powers, preferences or rights given to the series I preferred stock or alter or amend the certificate of designation for the series I preferred stock, or (b) amend the Company’s amended and restated articles of incorporation or other charter documents in any manner that adversely affects any rights of the holders of series I preferred stock.   Conversion Rights. Each share of series I preferred stock is convertible, at any time and from time to time at the option of the holder thereof, into such number of shares of common stock as is determined as follows: (i) if the closing market price of the common stock on the principal trading market on which the common stock is then traded or quoted is less than $4.00 per share, then each share of series I preferred stock shall be convertible into a number of shares of common stock equal to two (2) times the stated value ($4.00 per share), divided by such closing market price on the date of conversion; or (ii) if such closing market price is equal to or greater than $4.00 per share, then each share of series I preferred stock shall be convertible into two (2) shares of common stock. In addition, upon the earlier to occur of: (a) the closing of the sale of shares of common stock to the public at a price of at least $3.00 per share in a public offering pursuant to an effective registration statement or offering statement under the Securities Act resulting in at least $10,000,000 of gross proceeds to the Company, (b) the date on which the shares of common stock of the Company are listed on a national stock exchange, including without limitation the New York Stock Exchange, NYSE American or the Nasdaq Stock Market (any tier), or (c) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least 67% of the then outstanding shares of series I preferred stock, voting together as a single class, each share of series I preferred stock shall be automatically converted into such number of shares of common stock as is determined in accordance with the provisions above. Such conversion price is subject to standard adjustments in the event of any stock dividends, stock reclassifications and similar events (but not for reverse stock splits).   Redemption Rights. Holders of series I preferred stock do not have any redemption rights.   Series J Preferred Stock   Ranking. The series J preferred stock ranks, with respect to the distribution of assets upon liquidation, (i) senior to all common stock, series A preferred stock and to each other class or series that is not expressly made senior to or on parity with the series J preferred stock; (ii) on parity with the series B preferred stock, series C preferred stock, series E preferred stock, series F-1 preferred stock, series L preferred stock and each other class or series that is not expressly subordinated or made senior to the series J preferred stock; and (iii) junior to the series I preferred stock, series N senior convertible preferred stock, series R convertible preferred stock, series X senior convertible preferred stock and to each other series of preferred stock and each class or series that is expressly made senior to the series J preferred stock, as well as to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company.   Dividend Rights. The holders of series J preferred stock are entitled to receive dividends equal (on an as converted to common stock basis) to and in the same form as dividends actually paid on shares of common stock when, as and if such dividends are paid on shares of common stock. No other dividends shall be paid on shares of series J preferred stock.   Liquidation Rights. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders of series J preferred stock shall be entitled to receive out of the assets of the Company the same amount that a holder of common stock would receive if the shares of series J preferred stock were fully converted to common stock immediately prior to such liquidation, which amount shall be paid to the holders of series J preferred stock pari passu with all holders of parity securities and in preference to the holders of junior securities.   Voting Rights. On any matter presented to stockholders for their action or consideration, each holder of series J preferred stock shall be entitled to cast one (1) vote per share of series J preferred stock held. Except as provided by law, the holders of series J preferred stock shall vote together with the holders of shares of common stock as a single class. However, as long as any shares of series J preferred stock are outstanding, the Company shall not, without the affirmative vote of the holders of a majority of outstanding series J preferred stock, (a) alter or change adversely the powers, preferences or rights given to the series J preferred stock or alter or amend the certificate of designation for the series J preferred stock, or (b) amend the Company’s amended and restated articles of incorporation or other charter documents in any manner that adversely affects any rights of the holders of series J preferred stock.   Conversion Rights. Each share of series J preferred stock is convertible, at any time and from time to time at the option of the holder thereof, into such number of shares of common stock as is determined as follows: (i) if the closing market price of the common stock on the principal trading market on which the common stock is then traded or quoted is less than $4.00 per share, then each share of series J preferred stock shall be convertible into a number of shares of common stock equal to two (2) times the stated value ($4.00 per share), divided by such closing market price on the date of conversion; or (ii) if such closing market price is equal to or greater than $4.00 per share, then each share of series J preferred stock shall be convertible into two (2) shares of common stock. In addition, upon the earlier to occur of: (a) the closing of the sale of shares of common stock to the public at a price of at least $3.00 per share in a public offering pursuant to an effective registration statement or offering statement under the Securities Act resulting in at least $3,000,000 of gross proceeds to the Company, (b) the date on which the shares of common stock of the Company are listed on a national stock exchange, including without limitation the New York Stock Exchange, NYSE American or the Nasdaq Stock Market (any tier), or (c) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least 67% of the then outstanding shares of series J preferred stock, voting together as a single class, each share of series J preferred stock shall be automatically converted into such number of shares of common stock as is determined in accordance with the provisions above. Such conversion price is subject to standard adjustments in the event of any stock dividends, stock reclassifications and similar events (but not for reverse stock splits).   Redemption Rights. Holders of series J preferred stock do not have any redemption rights.   Series L Preferred Stock   Ranking. The series L preferred stock ranks, with respect to the distribution of assets upon liquidation, (i) senior to all common stock, series A preferred stock and to each other class or series that is not expressly made senior to or on parity with the series L preferred stock; (ii) on parity with the series B preferred stock, series C preferred stock, series E preferred stock, series F-1 preferred stock, series J preferred stock and each other class or series that is not expressly subordinated or made senior to the series L preferred stock; and (iii) junior to the series I preferred stock, series N senior convertible preferred stock, series R convertible preferred stock, series X senior convertible preferred stock and to each other series of preferred stock and each class or series that is expressly made senior to the series L preferred stock, as well as to all indebtedness and other liabilities with respect to assets available to satisfy claims against the Company.   Dividend Rights. The holders of series L preferred stock are entitled to receive dividends equal (on an as converted to common stock basis) to and in the same form as dividends actually paid on shares of common stock when, as and if such dividends are paid on shares of common stock. No other dividends shall be paid on shares of series L preferred stock.   Liquidation Rights. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the holders of series L preferred stock shall be entitled to receive out of the assets of the Company the same amount that a holder of common stock would receive if the shares of series L preferred stock were fully converted to common stock immediately prior to such liquidation, which amount shall be paid to the holders of series L preferred stock pari passu with all holders of parity securities and in preference to the holders of junior securities.   Voting Rights. On any matter presented to stockholders for their action or consideration, each holder of series L preferred stock shall be entitled to cast one (1) vote per share of series L preferred stock held. Except as provided by law, the holders of series L preferred stock shall vote together with the holders of shares of common stock as a single class. However, as long as any shares of series L preferred stock are outstanding, the Company shall not, without the affirmative vote of the holders of a majority of outstanding series L preferred stock, (a) alter or change adversely the powers, preferences or rights given to the series J preferred stock or alter or amend the certificate of designation for the series L preferred stock, or (b) amend the Company’s amended and restated articles of incorporation or other charter documents in any manner that adversely affects any rights of the holders of series L preferred stock.   Conversion Rights. Each share of series L preferred stock is convertible, at any time and from time to time at the option of the holder thereof, into such number of shares of common stock as is determined as follows: (i) if the closing market price of the common stock on the principal trading market on which the common stock is then traded or quoted is less than $4.00 per share, then each share of series L preferred stock shall be convertible into a number of shares of common stock equal to two (2) times the stated value ($4.00 per share), divided by such closing market price on the date of conversion; or (ii) if such closing market price is equal to or greater than $4.00 per share, then each share of series L preferred stock shall be convertible into two (2) shares of common stock. In addition, upon the earlier to occur of: (a) the closing of the sale of shares of common stock to the public at a price of at least $3.00 per share in a public offering pursuant to an effective registration statement or offering statement under the Securities Act resulting in at least $3,000,000 of gross proceeds to the Company, (b) the date on which the shares of common stock of the Company are listed on a national stock exchange, including without limitation the New York Stock Exchange, NYSE American or the Nasdaq Stock Market (any tier), or (c) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of at least 67% of the then outstanding shares of series L preferred stock, voting together as a single class, each share of series L preferred stock shall be automatically converted into such number of shares of common stock as is determined in accordance with the provisions above. Such conversion price is subject to standard adjustments in the event of any stock dividends, stock reclassifications and similar events (but not for reverse stock splits).   Redemption Rights. Holders of series L preferred stock do not have any redemption rights.   Series Y Senior Preferred Stock   On May 15, 2024, in conjunction with the exchange of certain senior secured convertible promissory notes, 938,908 shares of series Y preferred senior convertible preferred stock were issued with an aggregate value of $3,755,632. See also Note 8. Convertible Notes Payable.   Ranking. The series Y senior convertible preferred stock ranks, with respect to the payment of dividends and the distribution of assets upon liquidation, (i) senior to all common stock and each series of preferred stock, and to each other class or series that is not expressly made senior to or on parity with the series Y senior convertible preferred stock; (ii) on parity with each class or series that is not expressly subordinated or made senior to the series Y senior convertible preferred stock; and (iii) junior to each class or series that is expressly made senior to the series Y senior convertible preferred stock.   Dividend Rights. Holders of series Y senior convertible preferred stock are entitled to dividends at a rate per annum of 10.0% of the stated value ($4.00 per share); provided that upon an event of default (as defined in the certificate of designation for the series Y senior convertible preferred stock), such rate shall increase by 5% per annum. Dividends shall accrue from day to day, whether or not declared, and shall be cumulative. Dividends shall be payable quarterly in arrears on each dividend payment date and may be paid in cash or common stock at our discretion; provided that the Company may only pay dividends in common stock if such common stock is free-trading, freely transferable, and does not contain a legend (or be subject to stop transfer or similar instructions) restricting the resale or transferability thereof. Dividends payable in common stock shall be calculated based on a price equal to eighty percent (80%) of the VWAP during the five (5) trading days immediately prior to the applicable payment date. At September 30, 2024, cumulative dividends earned on the series Y senior convertible preferred stock were $177,910. $147,555 of the cumulative accrued dividends was paid by the Company via the issuance of 12,135 shares of the Company’s common stock and 16,206 shares of the Company’s series Y senior convertible preferred stock as of September 30, 2024. At September 30, 2024, the total dividends payable was $30,354.   Liquidation Rights. Subject to the rights of creditors and the holders of any senior securities or parity securities (in each case, as defined in the certificate of designation), upon any liquidation event (as defined in the certificate of designation), before any payment or distribution of the assets of the Company (whether capital or surplus) shall be made to or set apart for the holders of junior securities (as defined in the certificate of designation), including the common stock, each holder of outstanding series Y senior convertible preferred stock shall be entitled to receive an amount of cash equal to the greater of (i) 100% of the stated value of $4.00 per share, plus an amount of cash equal to all accumulated accrued and unpaid dividends thereon (whether or not declared) to, but not including the date of final distribution to such holders or (ii) such amount per share as would have been payable had all shares of series Y senior convertible preferred stock been converted into common stock immediately prior to such liquidation event.   Voting Rights. Holders of series Y senior convertible preferred stock do not have any voting rights; provided that, so long as any shares of series Y senior convertible preferred stock are outstanding, the affirmative vote of holders of a majority of the series Y senior convertible preferred stock, which majority must include Leonite Capital LLC so long as it holds any shares of series Y senior convertible preferred stock, voting as a separate class, shall be necessary for approving, effecting or validating any amendment, alteration or repeal of any of the provisions of the certificate of designation, prior to the Company’s issuance of additional shares of series Y senior convertible preferred stock or prior to the creation or issuance of any securities that are not subordinate to the series Y senior convertible preferred stock or new indebtedness (as defined in the certificate of designation); provided that the foregoing shall not apply to any financing transaction the use of proceeds of which will be used to redeem the series Y senior convertible preferred stock in full.   Conversion Rights. Commencing on the first anniversary of the date on which the Company’s common stock begins trading on the Nasdaq Stock Market, each share of series Y senior convertible preferred stock, plus all accrued and unpaid dividends thereon, shall be convertible, at the option of the holder thereof, at any time and from time to time, into such number of fully paid and nonassessable shares of common stock determined by dividing the stated value ($4.00 per share), plus the value of the accrued, but unpaid, dividends thereon, by a conversion price equal to the lowest VWAP during the five (5) trading days immediately prior to the applicable conversion date. Such conversion price is subject to adjustment if the Company issues common stock at a price lower than such conversion price, subject to certain exceptions. Notwithstanding the foregoing, in no event shall the holder of any series Y senior convertible preferred stock be entitled to convert any number of shares that upon conversion the sum of (i) the number of shares of common stock beneficially owned by the holder and its affiliates and (ii) the number of shares of common stock issuable upon the conversion of the series Y senior convertible preferred stock with respect to which the determination of this proviso is being made, would result in beneficial ownership by the holder and its affiliates of more than 4.99% of the then outstanding common stock. This limitation may be waived (up to a maximum of 9.99%) by the holder and in its sole discretion, upon not less than sixty-one (61) days’ prior notice to the Company.   Preferred Stock Transactions   During the nine months ended September 30, 2024, the Company executed the following transactions:     · On January 19, 2024, the Company issued 62,500 shares of series I preferred stock to each of Daniel R. Thompson, the Chairman of the Board, and Alex Cunningham, the Company’s Chief Executive Officer, for $250,000 bonus compensation for the fiscal year of 2023, at the fair value of $4.48 per share.         · On January 31, 2024, the Company issued 5,000 shares of series I preferred stock to Matthew Shafer, the Company’s Chief Financial Officer, for $20,000, at the fair value of $4.48 per share.         · On January 31, 2024, the Company issued 2,500 shares of series I preferred stock to Zia Choe, the Company’s Chief Accounting Officer, for $10,000, at the fair value of $4.48 per share.           In connection with these aforementioned shares issuances on January 19, 2024 and January 31, 2024, the Company engaged a valuation specialist to perform a business valuation monte carlo simulation for the series I preferred stock resulting in those indicated fair values.         · An aggregate of 1,385,549 shares of series B preferred stock were converted into an aggregate of 2,771,098 shares of common stock.         · An aggregate of 78 shares of series C preferred stock were converted into an aggregate of 780,000 shares of common stock.         · An aggregate of 80,375 shares of series E preferred stock were converted into an aggregate of 160,750 shares of common stock.     · An aggregate of 26,252 shares of series F-1 preferred stock were converted into an aggregate of 52,504 shares of common stock.         · An aggregate of 3,477,000 shares of series I preferred stock were converted into an aggregate of 6,954,000 shares of common stock.         · An aggregate of 1,713,584 shares of series J preferred stock were converted into an aggregate of 3,427,168 shares of common stock.         · 2 shares of series C preferred stock were cancelled, which were issued erroneously.         · 165 shares of series R preferred stock were cancelled as part of the settlement agreement described in Note 7. Notes and Loans Payable         · On May 15, 2024, in conjunction with the exchange of certain senior secured convertible promissory notes, 938,908 shares of series Y senior convertible preferred stock were issued with an aggregate value of $3,755,632.         · On September 25, 2024, 16,206 shares of series Y senior convertible preferred stock were issued with an aggregate value of $64,824 as payment of accrued dividends.   During the nine months ended September 30, 2023, the Company executed the following transaction:     · On May 25, 2023, the Company issued 3,150 shares of series B preferred stock to Zia Choe, Interim Chief Financial Officer for $25,000.         · On July 24, 2023, the Company issued 5,000 shares of series E preferred stock as compensation for the property manager of Edge View in exchange for a bonus of $5,000.   Common Stock   In addition to the issuance of common stock from the conversions of preferred stock noted above, during the nine months ended September 30, 2024, the Company executed the following transactions:     · The Company issued an aggregate of 234,909 shares of common stock in payment of various accrued dividends on the series N, series X and series Y preferred stock.         · The Company issued 1,222 shares of common stock upon conversion of certain convertible notes.         · On March 5, 2024, the Company issued 7,500 shares of common stock to an investor relation service provider. The Company recognized the fair value for the issuance of the 7,500 shares at $1.55 per share on the closing market price of March 5, 2024 and recorded selling, general and administrative expense of $11,617 in the consolidated statement of operations.         · On March 26, 2024, the Company issued an aggregate of 30,000 shares of common stock to three board members. The Company recognized the fair value for the issuance of 30,000 shares at $6.50 per share on the closing market price of March 26, 2024 and recorded share-based compensation expense of $195,000 in the consolidated statement of operations.     · In February 2024, as part of the Red Rock settlement executed in July 2022, the Company issued an aggregate of 37,104 shares of common stock to six previous owners. The Company recognized the fair value for the issuance of 37,104 shares at $3 per share on the closing market price of February 4 through February 6, 2024, and recorded share loss from discontinued operations of $111,312 in the consolidated statement of operations.         · In September 2024, the Company issued an aggregate of 74,225 shares of common stock as part of a legal settlement.   During the nine months ended September 30, 2023, the Company executed the following transaction:     · During the nine months ended September 30, 2023, the Company issued 3,662 shares of common stock upon conversion of certain convertible notes.

v3.24.3

WARRANTS	9 Months Ended
	Sep. 30, 2024
Warrants
WARRANTS	10. WARRANTS   The table below sets forth warrant activity during the nine months ended September 30, 2024 and 2023: Schedule of warrant activity                 Number of Warrants     Weighted Average Exercise Price   Balance at January 1, 2024     3,150     $ 1,162.76   Granted     –       –   Exercised     –       –   Expired     (3 )     135.00   Balance at September 30, 2024     3,147       1,163.74   Warrants Exercisable at September 30, 2024     3,147     $ 1,162.76         Number of Warrants     Weighted Average Exercise Price   Balance at January 1, 2023     3,153     $ 1,162.17   Granted     –       –   Exercised     –       –   Expired     (3 )     547.50   Balance at September 30, 2023     3,150       1,162.76   Warrants Exercisable at September 30, 2023     3,150     $ 1,162.76

v3.24.3

DISCONTINUED OPERATIONS	9 Months Ended
	Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATIONS	11. DISCONTINUED OPERATIONS   On November 10, 2023, the Company sold Platinum Tax, which was a full-service tax resolution firm located in Los Angeles, California. Through this subsidiary the Company provided fee-based tax resolution services to individuals and companies that have federal and state tax liabilities by assisting clients to settle outstanding tax debts. As part of the Asset Purchase Agreement between the Company and the purchaser, the assets that were purchased included substantially all assets, rights, interests, and licenses except for banks accounts in place prior to the sale for the purchase consideration of 15% of cash collected by the purchaser within one year following the sale date.   In February 2024, as part of the Red Rock settlement executed in July 2022, the Company issued an aggregate of 37,104 shares of common stock to six previous owners. The Company recognized the fair value for the issuance of 37,104 shares at $3 per share on the closing market price of February 4 through February 6, 2024, and recorded share loss from discontinued operations of $111,312 in the consolidated statement of operations.   Schedule of discontinued operations                 Net liabilities of discontinued operations   September 30, 2024     December 31, 2023   Cash   $ 342     $ 342   Accounts receivable     300       300   Accounts payable and accrued expenses     238,285       238,285   Net liabilities of discontinued operations   $ (237,643 )   $ (237,643 )                   Three Months Ended September 30,   Gain (Loss) from discontinued operations   2024     2023   Revenue   $ –     $ 32,264   Cost of sales     –       (5,604 ) Selling, general and administrative expenses     –       (30,067 ) Interest expense     –       (298 ) Settlement loss     –       –   Loss from discontinued operations   $ –     $ (3,705 )                   Nine Months Ended September 30,   Gain (Loss) from discontinued operations   2024     2023   Revenue   $ –     $ 304,967   Cost of sales     –       (53,730 ) Selling, general and administrative expenses     –       (341,900 ) Interest expense     –       (2,342 ) Settlement loss     (111,312 )     –   Loss from discontinued operations   $ (111,312 )   $ (93,005 )

v3.24.3

GOODWILL	9 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL	12. GOODWILL   The Company reviews goodwill for impairment on a reporting unit basis annually and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. During the nine months ended September 30, 2024 and 2023, the Company determined there to be no impairment.

v3.24.3

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	13. COMMITMENTS AND CONTINGENCIES   Leases   ASC 842, “Leases”, requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. The Company adopted ASC 842, January 1, 2020, using the effective date method and elected certain practical expedients allowing the Company not to reassess:     · whether expired or existing contracts contain leases under the new definition of a lease;         · lease classification for expired or existing leases; and         · whether previously capitalized initial direct costs would qualify for capitalization under Topic 842.   The Company also made the accounting policy decision not to recognize lease assets and liabilities for leases with a term of 12 months or less.   The Company leases twelve medical facilities and one vehicle as operating leases as of September 30, 2024. The Company recorded operating lease expenses of $126,831 and $76,466 for the three months ended September 30, 2024 and 2023, respectively, and the Company recorded operating lease expense of $327,008 and $210,696 for the nine months ended September 30, 2024 and 2023, respectively.   The Company has operating leases with future commitments as follows: Schedule of operating leases with future commitments           Amount   October 2024 – September 2025   $ 251,214   October 2025 – September 2026     171,507   October 2026 – September 2027     77,871   Total Future Undiscounted Lease Payments   $ 464,459   Less imputed interest     36,132   Total lease obligations   $ 464,459     The following table summarizes supplemental information about the Company’s leases:  Schedule of supplemental information about the Company’s leases       Weighted-average remaining lease term     2.37 years Weighted-average discount rate     6.38%   Employees   The Company agreed to pay $360,000 per year and $200,000 of targeted annual incentives to the Chief Executive Officer based on his employment agreement since July 1, 2020, of which 50% was being paid in cash and 50% was being accrued through December 31, 2023. As of January 1, 2024, these are being paid in cash. The total outstanding accrued compensation as of September 30, 2024 and December 31, 2023 was $2,115,500 and $2,365,500, respectively.   The Company agreed to pay $360,000 per year and $200,000 of targeted annual incentives to the Chairman of the Board based on his employment agreement since July 1, 2020, of which 50% was being paid in cash and 50% was being accrued through April 30, 2024. As of May 1, 2024, these are being paid in cash. The total outstanding accrued compensation as of September 30, 2024 and December 31, 2023 was $2,220,500 and $2,350,500, respectively.   The Company agreed to pay $228,000 per year to the Chief Financial Officer based on his employment agreement effective as of January 2, 2024. There was no outstanding accrued compensation as of September 30, 2024.   The Company agreed to pay $210,000 per year to the former Chief Accounting Officer based on her employment agreement effective as of January 2, 2024. There was no outstanding accrued compensation as of September 30, 2024.   The Company agreed to pay $156,000 per year to the previous Chief Financial Officer based on his amended employment agreement executed on May 15, 2021. The total outstanding accrued compensation as of September 30, 2024 and December 31, 2023 was $17,057.   The Company entered into a management agreement effective May 31, 2021 for compensation to the principals of Nova in the form of an annual base salaries of $372,000 to one of the three doctors, $450,000 to the second, and $372,000 to the third doctor. Collectively, as a group, such principals will receive an annual cash bonus and stock equity set forth below, which will be conditioned upon the Company achieving 100% of the annual objectives of financial performance goals as set forth below. Schedule of annual objectives of financial performance goals             Year   Minimum Annual Nova EBITDA   Cash Annual Bonus   Series J Preferred Stock 2021   $2.0M   $120,000   120,000 Shares 2022   $2.4M   $150,000   135,000 Shares 2023   $3.7M   $210,000   150,000 Shares 2024   $5.5M   $300,000   180,000 Shares 2025   $8.0M   $420,000   210,000 Shares

v3.24.3

LEGAL PROCEEDINGS	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
LEGAL PROCEEDINGS	14. LEGAL PROCEEDINGS   From time to time, the Company may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm the Company’s business. Management is not currently aware of any such legal proceedings or claims that it believes will have a material adverse effect on the Company’s business, financial condition, or operating results.

v3.24.3

INCOME TAXES	9 Months Ended
	Sep. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	15. INCOME TAXES   At September 30, 2024, the Company had federal and state net operating loss carry forwards of approximately $24 million that expire in various years through the year 2039. Due to current period losses and carryforwards of past net operating losses, there is no provision for current federal or state income taxes for the three and nine months ended September 30, 2024 and 2023.   Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for federal and state income tax purposes. The Company has a deferred tax asset that consists of net operating loss carry forwards calculated using federal and state effective tax rates. Because of the Company’s lack of past earnings history, the deferred tax asset has been fully offset by a valuation allowance.

v3.24.3

SEGMENT REPORTING	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
SEGMENT REPORTING	16. SEGMENT REPORTING   As of September 30, 2024, the Company had two reportable operating segments as determined by management using the “management approach” as defined by the authoritative guidance on Disclosures about Segments of an Enterprise and Related Information.     (1) Healthcare (Nova)   (2) Real Estate (Edge View)   These segments are a result of differences in the nature of the products and services sold. Corporate administration costs, which include, but are not limited to, general accounting, human resources, legal and credit and collections, are partially allocated to the two operating segments. Other revenue consists of nonrecurring items.   The healthcare segment provides a full range of diagnostic and surgical services for injuries and disorders of the skeletal system and associated bones, joints, tendons, muscles, ligaments, and nerves.   The real estate segment consists of Edge View, a real estate company that owns five (5) acres zoned medium density residential (MDR) with 12 lots already platted, six (6) acres zoned high-density residential (HDR) that can be platted in various configurations to meet current housing needs, and twelve (12) acres zoned in Lemhi County as Agriculture that is available for further annexation into the City of Salmon for development, as well as a common area for landowners to view wildlife, provide access to the Salmon River and fishing in a two (2) acre pond.   Management uses numerous tools and methods to evaluate and measure of its subsidiaries’ success. To help succeed, management retains the prior owners of the subsidiaries and allow them to do what they do best is run the business. Additionally, management monitors key metrics primarily revenues and net income from operations. Schedule of revenues and net income from operations             Asset:   September 30, 2024     December 31, 2023   Healthcare   $ 20,155,319     $ 18,955,991   Real Estate     578,620       587,456   Corporate, administration and other     2,780,823       1,202,364   Consolidated assets   $ 23,514,762     $ 20,745,811         Three Months Ended September 30,       2024     2023 (Restated)   Revenues:                 Healthcare   $ 1,355,641     $ 3,405,859   Real Estate     –       –   Consolidated revenues   $ 1,355,641     $ 3,405,859                     Cost of sales:                 Healthcare   $ 1,000,601     $ 551,423   Real Estate     –       –   Consolidated cost of sales   $ 1,000,601     $ 551,423                     Income from operations from subsidiaries                 Healthcare   $ 138,197     $ 2,610,188   Real Estate     (4,000 )     (278 ) Income from operations from subsidiaries   $ 134,197     $ 2,609,910                     Loss from operations from Cardiff Lexington   $ (719,357 )   $ (336,516 ) Total income from operations   $ (585,160 )   $ 2,273,394                     Income (loss) before taxes                 Healthcare   $ 138,197     $ 2,521,820   Real Estate     (4,000 )     (278 ) Corporate, administration and other non-operating expenses     (2,112,165 )     (536,316 ) Consolidated (loss) income before taxes   $ (1,977,968 )   $ 1,985,226         Nine Months Ended September 30,       2024     2023 (Restated)   Revenues:                 Healthcare   $ 5,149,416     $ 9,476,764   Real Estate     –       –   Consolidated revenues   $ 5,149,416     $ 9,476,764                     Cost of sales:                 Healthcare   $ 2,741,765     $ 2,589,407   Real Estate     –       –   Consolidated cost of sales   $ 2,741,765     $ 2,589,407                     Income (loss) from operations from subsidiaries                 Healthcare   $ 1,739,099     $ 5,994,978   Real Estate     (8,836 )     (2,118 ) Income from operations from subsidiaries   $ 1,730,263     $ 5,992,860                     Loss from operations from Cardiff Lexington   $ (2,255,914 )   $ (1,212,479 ) Total (loss) income from operations   $ (525,651 )   $ 4,780,381                     Income (loss) before taxes                 Healthcare   $ 1,739,099     $ 4,717,363   Real Estate     (8,836 )     (2,118 ) Corporate, administration and other non-operating expenses     (4,011,608 )     (1,840,632 ) Consolidated (loss) income before taxes   $ (2,281,345 )   $ 2,874,613

v3.24.3

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	17. SUBSEQUENT EVENTS   The Company has evaluated its operations subsequent to September 30, 2024 to the date these consolidated financial statements were available to be issued and determined the following subsequent events and transactions required disclosure in these consolidated financial statements.     · On October 14, 2024, the Company issued 9,453 shares of series X senior convertible preferred stock with an aggregate value of $37,808 as payment of accrued dividends.         · On October 25, 2024, an aggregate of 41,812 shares of series B preferred stock were converted into an aggregate of 83,624 shares of common stock.         · On October 25, 2024, an aggregate of 8 shares of series C preferred stock were converted into an aggregate of 80,000 shares of common stock.         · On October 25, 2024, an aggregate of 50,000 shares of series I preferred stock were converted into an aggregate of 100,000 shares of common stock.         · On October 25, 2024, the Company issued 26,256 shares of series N senior convertible preferred stock with an aggregate value of $105,023 as payment of accrued dividends.         · On October 28, 2024, 1 share of series C preferred stock was converted into 10,000 shares of common stock.

v3.24.3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Organization and Nature of Operations	Organization and Nature of Operations   Cardiff Lexington Corporation (“Cardiff”) was originally incorporated on September 3, 1986 in Colorado as Cardiff International Inc. On November 10, 2005, Cardiff merged with Legacy Card Company, LLC and changed its name to Cardiff Lexington Corporation. On August 27, 2014, Cardiff redomiciled and became a corporation under the laws of Florida. On April 13, 2021, Cardiff redomiciled and became a corporation under the laws of Nevada.   Cardiff is an acquisition holding company focused on locating undervalued and undercapitalized companies, primarily in the healthcare industry, and providing them capitalization and leadership to maximize the value and potential of their private enterprises while also providing diversification and risk mitigation for stockholders. All of Cardiff’s operations are predominantly conducted through, and its income derived from, its Nova Ortho and Spine, LLC (“Nova”) subsidiary. Its subsidiaries include:     · Nova, which was acquired on May 31, 2021;         · Edge View Properties, Inc. (“Edge View”), which was acquired on July 16, 2014; and         · Platinum Tax Defenders (“Platinum Tax”), which was acquired on July 31, 2018 and sold on November 10, 2023. As a result, Platinum Tax is presented as a discontinued operation.
Principles of Consolidation	Principles of Consolidation   The consolidated financial statements include the accounts of Cardiff and its wholly owned subsidiaries, Nova, Edge View, and Platinum Tax and (collectively, the “Company”). Subsidiaries shown as discontinued operations include Platinum Tax. All significant intercompany accounts and transactions are eliminated in consolidation.
Reverse Stock Split	Reverse Stock Split   On January 9, 2024, the Company effected a 1-for-75,000 reverse split of its outstanding common stock. All outstanding shares of common stock and warrant to purchase common stock were adjusted to reflect the 1-for-75,000 reverse split, with respective exercise prices of the warrants proportionately increased. The conversion prices of the outstanding convertible notes and certain series of preferred stock were adjusted to reflect a proportional decrease in the number of shares of common stock to be issued upon conversion.   All share and per share data throughout these consolidated financial statements have been retroactively adjusted to reflect the reverse stock split. The total number of authorized shares of common stock did not change. As a result of the reverse stock split, an amount equal to the decreased value of the common stock was reclassified from “common stock” to “additional paid-in capital.”
Use of Estimates	Use of Estimates   The preparation of financial statements in conformity with United States generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Management uses its historical records and knowledge of its business in making estimates. Accordingly, actual results could differ from those estimates.
Accounts Receivable	Accounts Receivable   In the normal course of business, the Company is in the lien based medical industry providing orthopedic healthcare servicing an uninsured market insulated by a letter of protection which insulates the Company and insures payment in full from insurance settlements. Accounts receivable consists of amounts due from attorneys and insurance providers for services provided to patients under the letter of protection. Accounts receivable are recorded at the expected settlement realization amount, which is less contractual adjustments and an allowance for credit losses. The Company recognizes an allowance for credit losses for its accounts receivable to present the net amount expected to be collected as of the balance sheet date. This allowance is determined based on the history of net settlements received, where the net settlement amount is not collected. No collection can happen if no settlement is reached with the defendant’s insurance company and the plaintiff (the patient) loses the case at trial, or the case is abandoned, then the Company will not be able to collect on its letter of protection and its receivable will not be collected. The Company monitors outstanding cases as they develop through ongoing discussions with attorneys, doctors and third-party medical billing company and additionally monitors settlement realization rates over time. Additionally, the Company considers economic factors and events or trends expected to affect future collections experience. The no collection history of the Company’s customers is considered in future assessments of collectability as these patterns are established over a longer period. The Company uses the term collection and collection rate in its disclosures to describe the historical less than 1% occurrence of not collecting under a contract, which aligns with the Company’s credit loss accounting under ASC 326.   The Company does not have a significant exposure to credit losses as it has historically had a less than 1.0% loss rate where the Company received no settlement amount for its outstanding accounts receivable. Although possible, claims resulting in zero collection upon settlement are rare based on the Company’s historical experience and has historically been 0.5% to 1.0% of its outstanding accounts receivable, thereby resulting in a collection rate of 99%. The Company uses the loss rate method to record its allowance for credit losses. The Company applies the loss rate method by reviewing its zero collection history on a quarterly basis and updating its estimates of credit losses to adjust for changes in loss data. The Company typically collects on its accounts receivable between eighteen and twenty-four months after recording. The Company does not record an allowance for credit losses based on an aging of its accounts receivable as the aging of the Company’s receivables do not influence the credit loss rate due to the nature of its business and the letter of protection. The Company does not adjust its receivables for the effects of a significant financing component at contract inception as the timing of variable consideration is determined by the settlement, which is outside of the Company’s control. As of September 30, 2024 and December 31, 2023, the Company’s allowance for credit losses was $122,190. The Company recognized $0 and $270,000 of credit loss expense during the nine months ended September 30, 2024 and 2023, respectively, which is included in selling, general and administrative expenses in the condensed consolidated statement of operations. The balance of accounts receivable, net as of January 1, 2023 was $6,603,920.
Property and Equipment	Property and Equipment   Property and equipment are carried at cost. Expenditures for renewals and betterments that extend the useful lives of property, equipment or leasehold improvements are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. Depreciation is calculated using the straight-line method for financial reporting purposes based on the following estimated useful lives:  Schedule of estimated useful lives   Classification Useful Life Equipment, furniture, and fixtures 5 - 7 years Medical equipment 10 years Leasehold improvements 10 years or lease term, if shorter
Goodwill	Goodwill   Goodwill is not amortized but is evaluated for impairment annually or when indicators of a potential impairment are present. The Company reviews goodwill for impairment on a reporting unit basis annually and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Goodwill is tested first for impairment based on qualitative factors on an annual basis or in between if an event occurs or circumstances change that indicate the fair value may be below its carrying amount, otherwise known as a ‘triggering event’. An assessment is made of these qualitative factors as such to determine whether it is more likely than not the fair value is less than the carry amount, including goodwill. The annual evaluation for impairment of Goodwill, if needed, is based on valuation models that incorporate assumptions and internal projections of expected future cash flows and operating plans. The Company believes such assumptions are also comparable to those that would be used by other marketplace participants. During the nine months ended September 30, 2024 and 2023, the Company did not recognize any goodwill impairment. The Company based this decision on impairment testing of the underlying assets, expected cash flows, decreased asset value and other factors.
Valuation of Long-lived Assets	Valuation of Long-lived Assets   In accordance with the provisions of Accounting Standards Codification (“ASC”) Topic 360-10-5, “Impairment or Disposal of Long-Lived Assets”, all long-lived assets such as plant and equipment and construction in progress held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is evaluated by a comparison of the carrying amount of assets to estimated cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amounts of the assets exceed the fair value of the assets.
Revenue Recognition	Revenue Recognition   The Company’s primary source of revenue is its healthcare subsidiary, which records revenues from providing licensed and/or certified orthopedic procedures. Revenue is recognized at a point in time in accordance with ASC 606 and at an estimated net settlement realization rate based on gross billed charges. The Company’s healthcare subsidiary does not have contract liabilities or deferred revenue as there are no amounts prepaid for services. The Company applies the following five-step ASC 606 model to determine revenue recognition:     · Identification of a contract with a customer         · Identification of the performance obligations in the contact         · Determination of the transaction price         · Allocation of the transaction price to the separate performance obligations         · Recognition of revenue when performance obligations are satisfied.   At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses services promised within each contract and determines those that are a performance obligation and assesses whether each promised service is distinct.   The Company’s contracts contain a single performance obligation (providing orthopedic services), as the promise to transfer the individual services is not separately identifiable from other promises in the contracts and, therefore, not distinct, as a result, the entire transaction price is allocated to this single performance obligation.   Accordingly, the Company recognizes net revenue when the patient receives orthopedic care services. The Company’s patient service contracts generally have performance obligations which are satisfied at a point in time. The performance obligation is for onsite or off-site care provided. Patient service contracts are generally fixed-price, and the transaction price is in the contract. Revenue is recognized when obligations under the terms of the contract with the Company’s patients are satisfied; generally, at the time of patient care.   In determining net revenue to record under ASC 606, the Company must estimate the transaction price, including estimates of variable consideration in the contract at inception. In order to estimate variable consideration, the Company uses established billings rates (also described as “gross charges”) for the procedures being performed, however, the billing rates are not the same as actual amounts recovered for the Company’s healthcare subsidiary. They generally do not reflect what the Company is ultimately paid by the customer, insurance carriers and other payors, and therefore are not reported in the consolidated financial statements at that rate. The Company is typically paid amounts based on established charges per procedure with guidance from the annually updated Current Procedural Terminology (“CPT”) guidelines that designates relative value units and a suggested range of charges for each procedure which is then assigned a CPT code. This gross charge is discounted to reflect the percentage paid to the Company using a modifier recognized by each insurance carrier for services, less deductible, co-pay, and contractual adjustments which are deducted from the calculated fee. These adjustments are considered variable consideration under ASC 606 and are deducted from the calculated fee to arrive at the net transaction price. The Company also estimates changes in the contract price as a result of price concessions, changes to deductibles, co-pays and other contractual adjustments to determine the eventual settlement amount the Company expects to receive. The Company uses the term settlement realization in its disclosures to describe the amount of cash the Company expects to receive based on its estimate of the transaction price under the expected value method of ASC 606.   Where appropriate, the Company utilizes the expected value method to determine the appropriate amount for estimates of variable consideration, which has been based on a historical 12-month lookback of its actual settlement realization rates. The estimates of reserves established for variable consideration reflect current contractual requirements, the Company’s historical experience, specific known market events and trends, industry data and forecasted patient data and settlement patterns. Settlement realization patterns are assessed based on actual settlements and based on expected settlement realization trends obtained from discussions with attorneys, doctors and our third-party medical billing company. Settlement amounts are negotiated, and prolonged settlement negotiations are not indicative of a greater likelihood of reduced settlement realization or zero settlement.   The Company may accept a lower settlement realization rate in order to receive faster payment. The Company obtains information about expected settlement realization trends from discussions with doctors and attorneys and its third-party medical billing company vendor, which handles settlement claims and negotiations. Settlement amounts are presented to the Company’s third-party medical billing company vendor.   Settlement rates of 49% or higher based on gross billed amounts are typically accepted without further negotiation. Proposed settlement rates below 49% are negotiated when possible and longer negotiations typically result in higher settlement rates. If the Company accepts a lower settlement realization rate in order to receive payments more quickly, the Company considers that a price concession and estimates these concessions at contract inception. The various forms of variable consideration described above included in the transaction price may be constrained and are included in net revenue only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. The Company has not constrained any of its estimates of variable consideration for any of the periods presented.
Service Fees – Net (PIP)	Service Fees – Net (PIP)   The Company generates services fees from performing various procedures on the date the services are performed. These services primarily include slip and falls as well as smaller nominal Non-PIP services. As described above, these revenues are based on established insurance billing rates, less allowances for contractual adjustments and uncollectible amounts. These contractual adjustments vary by insurance company and self-pay patients. The Company computes these contractual and other adjustments based on its historical settlement realization experience. Completing the paperwork for each case and preparing it for billing takes approximately ten business days after a procedure is performed. The majority of claims are then filed electronically except for those remaining insurance carriers requiring paper filing. An initial response is usually received within four weeks from electronic filing and up to six weeks from paper filing. Responses may be a payment, a denial, or a request for additional information. The Company’s healthcare revenues are generated from professional medical billings including facility and anesthesia services. With respect to facility and anesthesia services, the Company is the primary obligor as the facility and anesthesia services are considered part of one integrated performance obligation.   The Company satisfies performance obligations as services are performed and then billed to the patient. Payment in most cases is made by an attorney for such services to our patients which are due upon final settlement of patients claims. During the claims process, legal counsel warranties such claim through the letter of protection, which is sent to the Company, as a medical provider, on behalf of the client patient. This letter states that the attorney is responsible for paying the client’s medical bills when the case is fully developed and settles. The medical professional agrees to provide treatment to the injured person and refrain from attempting to collect payment as it is developing and until the case is resolved. Once the personal injury case is finalized with the insurance company, the attorney pays the outstanding medical bills from the settlement.
Settlement Rates	Settlement Rates   Prior to its fiscal year 2024, the Company has historically had a 49% settlement realization rate from its total gross billed charges. Accordingly, the Company has historically recognized net healthcare service revenue as 49% of gross billed amounts. During the nine months ended September 30, 2024, the Company underwent efforts to accelerate cash settlements by accepting lower settlement realization rates in order to settle outstanding accounts receivable more quickly, which is expected to continue for the foreseeable future. This new initiative caused the Company to reassess the average settlement rate used to recognize healthcare service revenue as a prospective change in estimate given new information available. Accordingly, during the third quarter of 2024, the Company completed a thorough review of its third-party billing data, including reviewing historical reports and new reporting methods as a part of its updated analysis. Based upon this review it was determined that a 24-month lookback period should be used in the analysis of its historical settlement realization rates. Accordingly, its estimate of its settlement realization rate was reduced from 49% to 44%, resulting in a $1,650,474 million reduction in its accounts receivable and revenue during the third quarter of 2024 related to the change in estimate. Additionally, as a result of this reduced settlement realization experience, the Company recorded reductions to net revenue of $0 and $1,199,155 for the three and nine months ended September 30, 2024, respectively.   The Company will continue to evaluate its estimate of its settlement realization rates in the future, which will include a monthly review of the Company’s trailing 24-month historical settlement realization rate, along with estimates of current and pending settlements through ongoing discussions with attorneys, doctors and the Company’s third-party medical billing company in order to determine its variable consideration under ASC 606 and the net transaction price. The Company will update its settlement realization rate estimate used in determining its accounts receivable and revenue each quarter based on this review.
Contract Fees (Non-PIP)	Contract Fees (Non-PIP)   The Company has contract fees for amounts earned from its Non-Personal Injury Protection (“PIP”) related procedures, typically car accidents, and are settled on a contingency basis. Prior to April 2023, these cases were sold to a factor who bears the risk of economic benefit or loss. Generally, the sale of these cases to a third-party factor resulted in an approximate 54% reduction from the accounts receivables amounts. After selling patient cases to the factor, any additional funds settled by us were remitted to the factor. The Company evaluated the factored adjustments considering the actual factored amounts per patient on a quarterly interval, and the reductions from accounts receivable that were factored were recorded in finance charges as other expenses on the consolidated statement of operations. As a result of the Company’s eighteen to twenty-four month settlement realization timeframe, the Company has an accrued liability resulting from the settlement of receivables sold to the third-party factors which fluctuates as settlements are made and remitted to those third-party factors. These accounts receivables sold to these third-party factors are not included in the Company’s financial statements accounts receivable balance once sold and therefore are not part of the assessment of the net realizable value of accounts receivable. For the nine months ended September 30, 2023, the Company factored a total of $544,196 of its accounts receivable in exchange for cash of $253,750. The Company ceased factoring of accounts receivable in the first quarter of 2023.
Advertising Costs	Advertising Costs   Advertising costs are expensed as incurred. Advertising costs are included as a component of cost of sales in the consolidated statements of operations and changes in stockholders’ equity. The Company recognized advertising and marketing expense of $84,914 and $71,636 for the three months ended September 30, 2024 and 2023, respectively. The Company recognized advertising and marketing expense of $263,864 and $243,315 for the nine months ended September 30, 2024 and 2023, respectively.
Fair Value Measurements	Fair Value Measurements   Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs), and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:     Level 1 Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.         Level 2 Inputs, other than quoted prices included in Level 1, which are observable for the asset or liability through corroboration with market data at the measurement date.         Level 3 Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.
Distinguishing Liabilities from Equity	Distinguishing Liabilities from Equity   The Company accounts for its series N senior convertible preferred stock, series R convertible preferred stock, and series X senior convertible preferred stock subject to possible redemption in accordance with ASC 480, “Distinguishing Liabilities from Equity”. Conditionally redeemable preferred shares are classified as temporary equity within the Company’s consolidated balance sheet.
Stock-Based Compensation	Stock-Based Compensation   The Company accounts for its stock-based compensation in which the Company obtains employee services in share-based payment transactions under the recognition and measurement principles of the fair value recognition provisions of section 718-10-30 of the Financial Accounting Standards Board (“FASB”) ASC. Pursuant to paragraph 718-10-30-6 of the FASB ASC, all transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.   The measurement date used to determine the fair value of the equity instrument issued is the earlier of the date on which the performance is complete or the date on which it is probable that performance will occur.   Generally, all forms of share-based payments, including stock option grants, warrants and restricted stock grants and stock appreciation rights are measured at their fair value on the awards’ grant date, based on estimated number of awards that are ultimately expected to vest.   The expense resulting from share-based payments is recorded in the consolidated statements of operations.
Income Taxes	Income Taxes   Income taxes are determined in accordance with ASC Topic 740, “Income Taxes”. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.   ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts.   As of September 30, 2024 and 2023, the Company did not have any interest and penalties associated with tax positions and did not have any significant unrecognized uncertain tax positions.
Income (Loss) per Share	Income (Loss) per Share   FASB ASC Subtopic 260, “Earnings Per Share,” provides for the calculation of “Basic” and “Diluted” earnings per share. Basic earnings per common share is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, warrants, and debts convertible into common stock. The dilutive effect of stock options and warrants are reflected in diluted earnings per common share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. The diluted effect of debt convertibles is reflected utilizing the if converted method.
Going Concern	Going Concern   The accompanying consolidated financial statements have been prepared using the going concern basis of accounting, which contemplates continuity of operations, realization of assets and liabilities and commitments in the normal course of business. The Company had sustained recurring operating losses since its inception and has an accumulated deficit of $71,792,589 as of September 30, 2024. These factors raise a substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not reflect any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classifications of liabilities that might result if the Company is unable to continue as a going concern.   The ability of the Company to continue as a going concern and the appropriateness of using the going concern basis is dependent upon, among other things, additional cash infusions. Management is in continuous discussions with prospective investors and believes the raising of capital will allow the Company to fund its cash flow shortfalls and pursue new acquisitions. There can be no assurance that the Company will be able to obtain sufficient capital from debt or equity transactions or from operations in the necessary time frame or on terms acceptable to it. Should the Company be unable to raise sufficient funds, it may be required to curtail its operating plans. In addition, if overall Company expenses increase, the Company may need to implement cost reductions. No assurance can be given that the Company will be able to operate profitably on a consistent basis, or at all, in the future. Should the Company not be able to raise sufficient funds, it may cause cessation of operations.
Recently Issued Accounting Standards	Recently Issued Accounting Standards   The FASB issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting: Improvements to Reportable Segment Disclosures” (“Topic 280”) in November 2023. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Topic 280 improves “reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.” In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The purpose of the amendments is to enable “investors to better understand an entity’s overall performance” and assess “potential future cash flows.” Management is evaluating the impact of ASU 2023-07 on the consolidated financial statements and does not expect there to be any changes or impact to the financial statements.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards   The FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 81540).” The ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within that period. The FASB also specified that an entity must adopt the guidance as of the beginning of its annual fiscal year and is not permitted to adopt the guidance in an interim period, other than the first interim period of their fiscal year. ASU 2020-06 reduces the number of accounting models for convertible debt and convertible preferred stock instruments and makes certain disclosure amendments to improve the information provided to users. There were no material impacts on the consolidated financial statements at adoption.

v3.24.3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Schedule of estimated useful lives	Schedule of estimated useful lives   Classification Useful Life Equipment, furniture, and fixtures 5 - 7 years Medical equipment 10 years Leasehold improvements 10 years or lease term, if shorter

v3.24.3

RESTATEMENT OF FINANCIAL STATEMENTS (Tables)	9 Months Ended
	Sep. 30, 2024
Accounting Changes and Error Corrections [Abstract]
Schedule of restated financial information	Schedule of restated financial information                   Balance sheet                       Impact of correction of error   September 30, 2023 (Unaudited)   As previously reported     Adjustments     As restated                       Total assets   $ 18,518,727     $ (844 )   $ 18,517,883                             Total liabilities     12,102,942       (244,129 )     11,858,813                             Mezzanine equity     5,440,434       299,663       5,740,097                             Total stockholders' equity   $ 975,352     $ (299,663 )   $ 675,689     Statement of operations       Impact of correction of error   Three months ended September 30, 2023 (Unaudited)   As previously reported     Adjustments     As restated                       Revenue   $ 3,438,124     $ (32,265 )   $ 3,405,859   Cost of sales     557,028       (5,605 )     551,423   Gross profit     2,881,096       (26,660 )     2,854,436   Operating expense     611,110       (30,067 )     581,043   Income from operations     2,269,986       3,407       2,273,393   Other income (expense), net     (288,465 )     298       (288,167 ) Net income before discontinued operations     1,981,521       3,705       1,985,226   Loss from discontinued operations     –       (3,705 )     (3,705 ) Net income for the period   $ 1,981,521     $ –     $ 1,981,521   Preferred stock dividends   $ (150,965 )   $ 0.00     $ (150,965 ) Net income attributable to common shareholders   $ 1,830,556     $ 0.00     $ 1,830,556   Basic earnings per share for continuing operations   $ 0.00     $ 136.12     $ 136.12   Diluted earnings per share for continuing operations   $ 0.00     $ 2.30     $ 2.30         Impact of correction of error   Nine months ended September 30, 2023 (Unaudited)   As previously reported     Adjustments     As restated                       Revenue   $ 9,781,731     $ (304,967 )   $ 9,476,764   Cost of sales     2,643,137       (53,730 )     2,589,407   Gross profit     7,138,594       (251,237 )     6,887,357   Operating expense     2,448,876       (341,900 )     2,106,976   Income from operations     4,689,718       90,663       4,780,381   Other income (expense), net     (1,908,110 )     2,342       (1,905,768 ) Net income before discontinued operations     2,781,608       93,005       2,874,613   Loss from discontinued operations     –       (93,005 )     (93,005 ) Net income for the period   $ 2,781,608     $ –     $ 2,781,608   Preferred stock dividends   $ (605,384 )   $ 0.00     $ (605,384 ) Net income attributable to common shareholders   $ 2,176,224     $ 0.00     $ 2,176,224   Basic earnings per share for continuing operations   $ 0.00     $ 167.33     $ 167.33   Diluted earnings per share for continuing operations   $ 0.00     $ 2.40     $ 2.40     Statement of Cash Flows       Impact of correction of error   Nine months ended September 30, 2023 (Unaudited)   As previously reported     Adjustments     As restated                       Net cash used in operating activities of continuing operations   $ (603,392 )   $ 45,850     $ (557,542 ) Net cash provided by financing activities of continuing operations   $ 557,933     $ (131,262 )   $ 426,671

v3.24.3

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	9 Months Ended
	Sep. 30, 2024
Payables and Accruals [Abstract]
Schedule of accounts payable and accrued expenses	Schedule of accounts payable and accrued expenses                 September 30, 2024     December 31, 2023   Accounts payable   $ 663,381     $ 720,774   Accrued credit cards     8,248       26,645   Accrued liability for settlement of previously factored receivables     599,956       1,247,772   Accrued income and property taxes     5,346       5,346   Accrued professional fees     50,721       29,122   Accrued board fees     15,000       –   Accrued dividend     30,354       –   Accrued public company fees     5,000       –   Accrued travel expense     1,571       –   Accrued payroll     6,835       17,472   Total   $ 1,386,412     $ 2,047,131

v3.24.3

PLANT AND EQUIPMENT, NET (Tables)	9 Months Ended
	Sep. 30, 2024
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Schedule of property and equipment                 September 30, 2024     December 31, 2023   Medical equipment   $ 96,532     $ 96,532   Computer Equipment     9,189       9,189   Furniture, fixtures and equipment     15,079       15,079   Leasehold Improvement     15,950       15,950   Total     136,750       136,750   Less: accumulated depreciation     (112,187 )     (102,089 ) Property and equipment, net   $ 24,563     $ 34,661

v3.24.3

NOTES AND LOANS PAYABLE (Tables)	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Schedule of notes payable	Schedule of notes payable                 September 30, 2024     December 31, 2023   Notes and loans payable   $ 8,215,069     $ 2,280,743   Less current portion     (8,074,797 )     (2,136,077 ) Long-term portion   $ 140,272     $ 144,666
Schedule of maturities of long-term debt	Schedule of maturities of long-term debt           Amount   2024 (remainder of year)   $ 8,071,169   2025     4,837   2026     4,837   2027     4,837   2028     4,837   Thereafter     124,552   Total   $ 8,215,069

v3.24.3

CONVERTIBLE NOTES PAYABLE (Tables)	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Schedule of convertible notes	Schedule of convertible notes                 September 30, 2024     December 31, 2023   Convertible notes payable   $ 105,000     $ 3,831,850   Discounts on convertible notes payable     –       (24,820 ) Total convertible debt less debt discount     105,000       3,807,030   Current portion     105,000       3,807,030   Long-term portion   $ –     $ –
Schedule of convertible notes payable	Schedule of convertible notes payable                                                               Note #   Issuance   Maturity   Principal Balance 12/31/23     Settlements and/or Principal Conversions     New Loans or (Cash Paydown)     Shares Issued Upon Conversion or Exchange     Principal Balance 09/30/24     Accrued Interest on Convertible Debt at 12/31/23     Interest On Convertible Debt For the Period Ended 09/30/24     Accrued Interest on Convertible Debt at 09/30/24     Unamortized Debt Discount At 09/30/24   9   09/12/2016   09/12/2017   $ 50,080     $ –     $ (50,080 )     1,222     $ –     $ 5,581     $ (5,581 )   $ –     $ –   10   01/24/2017   01/24/2018     55,000       –       –       –       55,000       80,875       8,258       89,134       –   10-1   02/10/2023   02/10/2024     50,000       –       (50,000 )     –       –       6,658       (6,658 )     –       –   10-2   03/30/2023   03/30/2024     25,000       –       –       –       25,000       2,836       3,442       6,277       –   10-3   08/11/2023   08/11/2024     25,000       –       –       –       25,000       1,469       3,130       4,599       –   29-2   11/08/2019   11/08/2020     36,604       (36,604 )     –       –       –       10,109       (10,109 )     –       –   31   08/28/2019   08/28/2020     –       –       –       –       –       8,385       (8,385 )     –       –   37-1   09/03/2020   06/30/2021     113,667       (113,667 )     –       –       –       64,929       (64,929 )     –       –   37-2   11/02/2020   08/31/2021     113,167       (113,167 )     –       –       –       63,594       (63,594 )     –       –   37-3   12/29/2020   09/30/2021     113,166       (113,166 )     –       –       –       62,558       (62,558 )     –       –   40-1   09/22/2022   09/22/2024     2,600,000       (2,600,000 )     –       938,908 (1)     –       252,665       (252,655 )     –       –   40-2   11/04/2022   09/22/2024     68,667       (68,667 )     –       –       –       7,939       (7,939 )     –       –   40-3   11/28/2022   09/22/2024     68,667       (68,667 )     –       –       –       7,506       (7,506 )     –       –   40-4   12/21/2022   09/22/2024     68,667       (68,667 )     –       –       –       7,054       (7,054 )     –       –   40-5   01/24/2023   03/21/2024     90,166       (90,166 )     –       –       –       8,284       (8,284 )     –       –   40-6   03/21/2023   09/22/2024     139,166       (139,166 )     –       –       –       10,671       (10,671 )     –       –   40-7   06/05/2023   06/05/2024     139,166       (139,166 )     –       –       –       7,826       (7,826 )     –       –   40-8   06/13/2023   06/13/2024     21,167       (21,167 )     –       –       –       1,127       (1,127 )     –       –   40-9   07/19/2023   07/19/2024     35,500       (35,500 )     –       –       –       1,605       (1,605 )     –       –   40-10   07/24/2023   07/24/2024     14,000       (14,000 )     –       –       –       614       (614 )     –       –   41   08/25/2023   08/25/2024     5,000       –       (5,000 )     –       –       175       (175 )     –                     $ 3,831,850     $ (3,621,770 )   $ (105,080 )     940,130     $ 105,000     $ 612,460     $ (512,450 )   $ 100,010     $ –     (1) 938,908 Series Y Senior Convertible Preferred Shares issued in exchange for full value of the outstanding principal and interest on Notes 40-1, 40-2, 40-3, 40-4, 40-5, 40-6, 40-7, 40-8, 40-9 and 40-10

v3.24.3

WARRANTS (Tables)	9 Months Ended
	Sep. 30, 2024
Warrants
Schedule of warrant activity	Schedule of warrant activity                 Number of Warrants     Weighted Average Exercise Price   Balance at January 1, 2024     3,150     $ 1,162.76   Granted     –       –   Exercised     –       –   Expired     (3 )     135.00   Balance at September 30, 2024     3,147       1,163.74   Warrants Exercisable at September 30, 2024     3,147     $ 1,162.76         Number of Warrants     Weighted Average Exercise Price   Balance at January 1, 2023     3,153     $ 1,162.17   Granted     –       –   Exercised     –       –   Expired     (3 )     547.50   Balance at September 30, 2023     3,150       1,162.76   Warrants Exercisable at September 30, 2023     3,150     $ 1,162.76

v3.24.3

DISCONTINUED OPERATIONS (Tables)	9 Months Ended
	Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]
Schedule of discontinued operations	Schedule of discontinued operations                 Net liabilities of discontinued operations   September 30, 2024     December 31, 2023   Cash   $ 342     $ 342   Accounts receivable     300       300   Accounts payable and accrued expenses     238,285       238,285   Net liabilities of discontinued operations   $ (237,643 )   $ (237,643 )                   Three Months Ended September 30,   Gain (Loss) from discontinued operations   2024     2023   Revenue   $ –     $ 32,264   Cost of sales     –       (5,604 ) Selling, general and administrative expenses     –       (30,067 ) Interest expense     –       (298 ) Settlement loss     –       –   Loss from discontinued operations   $ –     $ (3,705 )                   Nine Months Ended September 30,   Gain (Loss) from discontinued operations   2024     2023   Revenue   $ –     $ 304,967   Cost of sales     –       (53,730 ) Selling, general and administrative expenses     –       (341,900 ) Interest expense     –       (2,342 ) Settlement loss     (111,312 )     –   Loss from discontinued operations   $ (111,312 )   $ (93,005 )

v3.24.3

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of operating leases with future commitments	Schedule of operating leases with future commitments           Amount   October 2024 – September 2025   $ 251,214   October 2025 – September 2026     171,507   October 2026 – September 2027     77,871   Total Future Undiscounted Lease Payments   $ 464,459   Less imputed interest     36,132   Total lease obligations   $ 464,459
Schedule of supplemental information about the Company’s leases	Schedule of supplemental information about the Company’s leases       Weighted-average remaining lease term     2.37 years Weighted-average discount rate     6.38%
Schedule of annual objectives of financial performance goals	Schedule of annual objectives of financial performance goals             Year   Minimum Annual Nova EBITDA   Cash Annual Bonus   Series J Preferred Stock 2021   $2.0M   $120,000   120,000 Shares 2022   $2.4M   $150,000   135,000 Shares 2023   $3.7M   $210,000   150,000 Shares 2024   $5.5M   $300,000   180,000 Shares 2025   $8.0M   $420,000   210,000 Shares

v3.24.3

SEGMENT REPORTING (Tables)	9 Months Ended
	Sep. 30, 2024
Segment Reporting [Abstract]
Schedule of revenues and net income from operations	Schedule of revenues and net income from operations             Asset:   September 30, 2024     December 31, 2023   Healthcare   $ 20,155,319     $ 18,955,991   Real Estate     578,620       587,456   Corporate, administration and other     2,780,823       1,202,364   Consolidated assets   $ 23,514,762     $ 20,745,811         Three Months Ended September 30,       2024     2023 (Restated)   Revenues:                 Healthcare   $ 1,355,641     $ 3,405,859   Real Estate     –       –   Consolidated revenues   $ 1,355,641     $ 3,405,859                     Cost of sales:                 Healthcare   $ 1,000,601     $ 551,423   Real Estate     –       –   Consolidated cost of sales   $ 1,000,601     $ 551,423                     Income from operations from subsidiaries                 Healthcare   $ 138,197     $ 2,610,188   Real Estate     (4,000 )     (278 ) Income from operations from subsidiaries   $ 134,197     $ 2,609,910                     Loss from operations from Cardiff Lexington   $ (719,357 )   $ (336,516 ) Total income from operations   $ (585,160 )   $ 2,273,394                     Income (loss) before taxes                 Healthcare   $ 138,197     $ 2,521,820   Real Estate     (4,000 )     (278 ) Corporate, administration and other non-operating expenses     (2,112,165 )     (536,316 ) Consolidated (loss) income before taxes   $ (1,977,968 )   $ 1,985,226         Nine Months Ended September 30,       2024     2023 (Restated)   Revenues:                 Healthcare   $ 5,149,416     $ 9,476,764   Real Estate     –       –   Consolidated revenues   $ 5,149,416     $ 9,476,764                     Cost of sales:                 Healthcare   $ 2,741,765     $ 2,589,407   Real Estate     –       –   Consolidated cost of sales   $ 2,741,765     $ 2,589,407                     Income (loss) from operations from subsidiaries                 Healthcare   $ 1,739,099     $ 5,994,978   Real Estate     (8,836 )     (2,118 ) Income from operations from subsidiaries   $ 1,730,263     $ 5,992,860                     Loss from operations from Cardiff Lexington   $ (2,255,914 )   $ (1,212,479 ) Total (loss) income from operations   $ (525,651 )   $ 4,780,381                     Income (loss) before taxes                 Healthcare   $ 1,739,099     $ 4,717,363   Real Estate     (8,836 )     (2,118 ) Corporate, administration and other non-operating expenses     (4,011,608 )     (1,840,632 ) Consolidated (loss) income before taxes   $ (2,281,345 )   $ 2,874,613

v3.24.3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Estimated useful lives)	9 Months Ended
	Sep. 30, 2024
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful lives	5 - 7 years
Medical Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful lives	10 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, estimated useful lives	10 years or lease term, if shorter

v3.24.3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)		3 Months Ended		9 Months Ended
	Jan. 09, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Jan. 02, 2023
Accounting Policies [Abstract]
Reverse stock split	1-for-75,000 reverse split
Additional allowance for credit losses		$ 122,190		$ 122,190		$ 122,190
Credit loss expense				0	$ 270,000
Net accounts receivable		14,798,220		14,798,220		13,305,254	$ 6,603,920
Goodwill impairment amount				0	0
Change in estimate for settlement realization rate				1,650,474	0
Increase decrease in net revenue		0		1,199,155
Accounts receivable			$ 544,196		544,196
Cash		1,949,600	253,750	1,949,600	253,750	866,943
Advertising and marketing expense		84,914	$ 71,636	263,864	$ 243,315
Uncertain tax positions		0		0		0
Accumulated deficit		$ 71,792,589		$ 71,792,589		$ 68,684,115

v3.24.3

RESTATEMENT OF FINANCIAL STATEMENTS (Details - Financical Statements) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total assets	$ 23,514,762		$ 23,514,762			$ 20,745,811
Total Liabilities	15,017,811		15,017,811			14,124,289
Total stockholders' equity	3,729,120	$ 675,689	3,729,120	$ 675,689	$ 5,880,274	$ 731,418	$ (1,183,885)	$ (1,744,791)
Revenue	1,355,641	3,405,859	5,149,416	9,476,764
Cost of sales	1,000,601	551,423	2,741,765	2,589,407
Gross profit	355,040	2,854,436	2,407,651	6,887,357
Operating expense	940,200	581,042	2,933,302	2,106,976
Income from operations	(585,160)	2,273,394	(525,651)	4,780,381
Other income (expense), net	(1,392,808)	(288,168)	(1,755,694)	(1,905,768)
Net income before discontinued operations	(1,977,968)	1,985,226	(2,281,345)	2,874,613
Net income for the period	(1,977,968)	1,981,521	(2,392,657)	2,781,608
Net income attributable to common shareholders	$ (2,215,977)	1,830,556	(3,108,474)	2,176,224
Net cash used in operating activities of continuing operations			(3,996,905)	(557,542)
Net cash provided by financing activities of continuing operations			$ 4,968,250	426,671
Previously Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total assets		18,518,727		18,518,727
Total Liabilities		12,102,942		12,102,942
Mezzanine equity		5,440,434		5,440,434
Total stockholders' equity		975,352		975,352
Revenue		3,438,124		9,781,731
Cost of sales		557,028		2,643,137
Gross profit		2,881,096		7,138,594
Operating expense		611,110		2,448,876
Income from operations		2,269,986		4,689,718
Other income (expense), net		(288,465)		(1,908,110)
Net income before discontinued operations		1,981,521		2,781,608
Loss from discontinued operations		0		0
Net income for the period		1,981,521		2,781,608
Preferred stock dividends		(150,965)		(605,384)
Net income attributable to common shareholders		$ 1,830,556		$ 2,176,224
Basic earnings per share for continuing operations		$ 0.00		$ 0.00
Diluted earnings per share for continuing operations		$ 0.00		$ 0.00
Net cash used in operating activities of continuing operations				$ (603,392)
Net cash provided by financing activities of continuing operations				557,933
Revision of Prior Period, Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total assets		$ (844)		(844)
Total Liabilities		(244,129)		(244,129)
Mezzanine equity		299,663		299,663
Total stockholders' equity		(299,663)		(299,663)
Revenue		(32,265)		(304,967)
Cost of sales		(5,605)		(53,730)
Gross profit		(26,660)		(251,237)
Operating expense		(30,067)		(341,900)
Income from operations		3,407		90,663
Other income (expense), net		298		2,342
Net income before discontinued operations		3,705		93,005
Loss from discontinued operations		(3,705)		(93,005)
Net income for the period		0		0
Preferred stock dividends		0.00		0.00
Net income attributable to common shareholders		$ 0.00		$ 0.00
Basic earnings per share for continuing operations		$ 136.12		$ 167.33
Diluted earnings per share for continuing operations		$ 2.30		$ 2.40
Net cash used in operating activities of continuing operations				$ 45,850
Net cash provided by financing activities of continuing operations				(131,262)
Restated [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total assets		$ 18,517,883		18,517,883
Total Liabilities		11,858,813		11,858,813
Mezzanine equity		5,740,097		5,740,097
Total stockholders' equity		675,689		675,689
Revenue		3,405,859		9,476,764
Cost of sales		551,423		2,589,407
Gross profit		2,854,436		6,887,357
Operating expense		581,043		2,106,976
Income from operations		2,273,393		4,780,381
Other income (expense), net		(288,167)		(1,905,768)
Net income before discontinued operations		1,985,226		2,874,613
Loss from discontinued operations		(3,705)		(93,005)
Net income for the period		1,981,521		2,781,608
Preferred stock dividends		(150,965)		(605,384)
Net income attributable to common shareholders		$ 1,830,556		$ 2,176,224
Basic earnings per share for continuing operations		$ 136.12		$ 167.33
Diluted earnings per share for continuing operations		$ 2.30		$ 2.40
Net cash used in operating activities of continuing operations				$ (557,542)
Net cash provided by financing activities of continuing operations				$ 426,671

v3.24.3

RESTATEMENT OF FINANCIAL STATEMENTS (Details Narrative) - USD ($)		12 Months Ended
	Jan. 09, 2024	Dec. 31, 2023	Sep. 30, 2024
Accounting Changes and Error Corrections [Abstract]
Common stock, par value			$ 0.001
Reverse stock split	1-for-75,000 reverse split
Decrease in common stock value		$ 1,804,774
Increase in APIC		$ 1,804,774

v3.24.3

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accounts payable	$ 663,381	$ 720,774
Accrued credit cards	8,248	26,645
Accrued liability for settlement of previously factored receivables	599,956	1,247,772
Accrued income and property taxes	5,346	5,346
Accrued professional fees	50,721	29,122
Accrued board fees	15,000	0
Accrued dividend	30,354	0
Accrued public company fees	5,000	0
Accrued travel expense	1,571	0
Accrued payroll	6,835	17,472
Total	$ 1,386,412	$ 2,047,131

v3.24.3

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details Narrative) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accrued taxes, penalties and interest	$ 1,659	$ 1,659

v3.24.3

PLANT AND EQUIPMENT, NET (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Medical equipment	$ 96,532	$ 96,532
Computer Equipment	9,189	9,189
Furniture, fixtures and equipment	15,079	15,079
Leasehold Improvement	15,950	15,950
Total	136,750	136,750
Less: accumulated depreciation	(112,187)	(102,089)
Property and equipment, net	$ 24,563	$ 34,661

v3.24.3

PLANT AND EQUIPMENT, NET (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 3,365	$ 3,365	$ 10,096	$ 11,365

v3.24.3

LAND (Details Narrative) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Real Estate [Abstract]
Land value	$ 540,000	$ 540,000

v3.24.3

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Previous Owners Of Edge View [Member]
Related Party Transaction [Line Items]
Due from related party	$ 4,979	$ 4,979
Chairman [Member]
Related Party Transaction [Line Items]
Short-term advances	0	$ 120,997
Payment made to chairman	$ 120,997

v3.24.3

NOTES AND LOANS PAYABLE (Details - Notes payable) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Notes and loans payable	$ 8,215,069	$ 2,280,743
Less current portion	(8,074,797)	(2,136,077)
Long-term portion	$ 140,272	$ 144,666

v3.24.3

NOTES AND LOANS PAYABLE (Details - Long term debt matures)	Sep. 30, 2024 USD ($)
Debt Disclosure [Abstract]
2024 (remainder of year)	$ 8,071,169
2025	4,837
2026	4,837
2027	4,837
2028	4,837
Thereafter	124,552
Total	$ 8,215,069

v3.24.3

NOTES AND LOANS PAYABLE (Details Narrative) - USD ($)				3 Months Ended			9 Months Ended
	Jun. 11, 2024	Sep. 29, 2023	Jun. 02, 2020	Sep. 30, 2024	Jun. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Apr. 24, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Promissory notes, description							(i) if the Company raises at least $5 million but less than $6 million in its planned underwritten public offering (the “Offering”), then it must pay $250,000 on the closing date of the Offering, with payments of $125,000, $125,000 and $35,000 to follow on the 90th, 180th, and 240th days following the closing of the Offering, respectively; (ii) if the Company raises at least $6 million but less than $7 million in the Offering, then it must pay $390,000 on the closing date of the Offering and $145,000 on the 90th day following the closing of the Offering; and (iii) if the Company raises at least $7 million in the Offering, then it must repay the entire principal amount on the closing date of the Offering. If the Offering is not completed by August 15, 2024, then the Company is required to pay $25,000 on such date and to continue making payments of $25,000 on each monthly anniversary thereof until the entire principal amount is repaid in full. Notwithstanding the foregoing, if the Company abandons the Offering and conducts a new public offering thereafter, then the Company is required to make a payment of $100,000 on the closing date of such other public offering, a second payment of $100,000 on the 90th day following the closing of such offering and $35,000 each month thereafter until the entire principal amount is repaid in full.
Debt extinguishment and a gain on settlement				$ 0	$ 78,834	$ 0	$ 78,834	$ 390
Payment of outstanding principal balance				50,000
Remaining principal balance				485,000			485,000
Notes payable outstanding				8,215,069			8,215,069			$ 2,280,743
Line of credit maximum borrowing capacity	$ 11,000,000	$ 4,500,000							$ 8,000,000
Discount fee									2.25%
Claims balance on new purchases with minimum fee									$ 10,000
Line of credit outstanding balance				7,468,971			7,468,971			2,120,100
Interest accrued related to line of credit							252,628
Line of credit maturity date		Sep. 29, 2025
Loans And Notes Payable [Member]
Debt Instrument [Line Items]
Notes payable outstanding				10,989			10,989			10,989
Accrued interest				8,537			8,537			7,547
SBA Loan [Member]
Debt Instrument [Line Items]
Accrued interest				0			0			956
Proceeds from loans			$ 150,000
Interest rate			3.75%
Principal balance				$ 145,109			$ 145,109			$ 149,655
Series R Convertible Preferred Stock [Member]
Debt Instrument [Line Items]
Conversion of stock, shares	165
Conversion of stock, value	$ 535,000

v3.24.3

CONVERTIBLE NOTES PAYABLE (Details - Convertible notes) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Convertible notes payable	$ 105,000	$ 3,831,850
Discounts on convertible notes payable	0	(24,820)
Total convertible debt less debt discount	105,000	3,807,030
Current portion	105,000	3,807,030
Long-term portion	$ 0	$ 0

v3.24.3

CONVERTIBLE NOTES PAYABLE (Details- Convertible debt instruments) - USD ($)		9 Months Ended
		Sep. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Principal Balance		$ 105,000	$ 3,831,850
Settlements and/or Principal Conversions		(3,621,770)
New Loans or (Cash Paydown)		$ (105,080)
Shares Issued Upon Conversion or Exchange		940,130
Accrued Interest on Convertible Debt		$ 100,010	612,460
Interest On Convertible Debt		(512,450)
Unamortized Debt Discount		$ 0	24,820
Convertible Note 9 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Sep. 12, 2016
Debt Maturity date		Sep. 12, 2017
Principal Balance		$ 0	50,080
Settlements and/or Principal Conversions		0
New Loans or (Cash Paydown)		$ (50,080)
Shares Issued Upon Conversion or Exchange		1,222
Accrued Interest on Convertible Debt		$ 0	5,581
Interest On Convertible Debt		(5,581)
Unamortized Debt Discount		$ 0
Convertible Note 10 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Jan. 24, 2017
Debt Maturity date		Jan. 24, 2018
Principal Balance		$ 55,000	55,000
Settlements and/or Principal Conversions		0
New Loans or (Cash Paydown)		$ 0
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 89,134	80,875
Interest On Convertible Debt		8,258
Unamortized Debt Discount		$ 0
Convertible Note 10-1 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Feb. 10, 2023
Debt Maturity date		Feb. 10, 2024
Principal Balance		$ 0	50,000
Settlements and/or Principal Conversions		0
New Loans or (Cash Paydown)		$ (50,000)
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 0	6,658
Interest On Convertible Debt		(6,658)
Unamortized Debt Discount		$ 0
Convertible Note 10-2 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Mar. 30, 2023
Debt Maturity date		Mar. 30, 2024
Principal Balance		$ 25,000	25,000
Settlements and/or Principal Conversions		0
New Loans or (Cash Paydown)		$ 0
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 6,277	2,836
Interest On Convertible Debt		3,442
Unamortized Debt Discount		$ 0
Convertible Note 10-3 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Aug. 11, 2023
Debt Maturity date		Aug. 11, 2024
Principal Balance		$ 25,000	25,000
Settlements and/or Principal Conversions		0
New Loans or (Cash Paydown)		$ 0
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 4,599	1,469
Interest On Convertible Debt		3,130
Unamortized Debt Discount		$ 0
Convertible Note 29-2 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Nov. 08, 2019
Debt Maturity date		Nov. 08, 2020
Principal Balance		$ 0	36,604
Settlements and/or Principal Conversions		(36,604)
New Loans or (Cash Paydown)		$ 0
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 0	10,109
Interest On Convertible Debt		(10,109)
Unamortized Debt Discount		$ 0
Convertible Note 31 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Aug. 28, 2019
Debt Maturity date		Aug. 28, 2020
Principal Balance		$ 0	0
Settlements and/or Principal Conversions		0
New Loans or (Cash Paydown)		$ 0
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 0	8,385
Interest On Convertible Debt		(8,385)
Unamortized Debt Discount		$ 0
Convertible Note 37-1 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Sep. 03, 2020
Debt Maturity date		Jun. 30, 2021
Principal Balance		$ 0	113,667
Settlements and/or Principal Conversions		(113,667)
New Loans or (Cash Paydown)		$ 0
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 0	64,929
Interest On Convertible Debt		(64,929)
Unamortized Debt Discount		$ 0
Convertible Note 37-2 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Nov. 02, 2020
Debt Maturity date		Aug. 31, 2021
Principal Balance		$ 0	113,167
Settlements and/or Principal Conversions		(113,167)
New Loans or (Cash Paydown)		$ 0
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 0	63,594
Interest On Convertible Debt		(63,594)
Unamortized Debt Discount		$ 0
Convertible Note 37-3 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Dec. 29, 2020
Debt Maturity date		Sep. 30, 2021
Principal Balance		$ 0	113,166
Settlements and/or Principal Conversions		(113,166)
New Loans or (Cash Paydown)		$ 0
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 0	62,558
Interest On Convertible Debt		(62,558)
Unamortized Debt Discount		$ 0
Convertible Note 40-1 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Sep. 22, 2022
Debt Maturity date		Sep. 22, 2024
Principal Balance		$ 0	2,600,000
Settlements and/or Principal Conversions		(2,600,000)
New Loans or (Cash Paydown)		$ 0
Shares Issued Upon Conversion or Exchange	[1]	938,908
Accrued Interest on Convertible Debt		$ 0	252,665
Interest On Convertible Debt		(252,655)
Unamortized Debt Discount		$ 0
Convertible Note 40-2 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Nov. 04, 2022
Debt Maturity date		Sep. 22, 2024
Principal Balance		$ 0	68,667
Settlements and/or Principal Conversions		(68,667)
New Loans or (Cash Paydown)		$ 0
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 0	7,939
Interest On Convertible Debt		(7,939)
Unamortized Debt Discount		$ 0
Convertible Note 40-3 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Nov. 28, 2022
Debt Maturity date		Sep. 22, 2024
Principal Balance		$ 0	68,667
Settlements and/or Principal Conversions		(68,667)
New Loans or (Cash Paydown)		$ 0
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 0	7,506
Interest On Convertible Debt		(7,506)
Unamortized Debt Discount		$ 0
Convertible Note 40-4 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Dec. 21, 2022
Debt Maturity date		Sep. 22, 2024
Principal Balance		$ 0	68,667
Settlements and/or Principal Conversions		(68,667)
New Loans or (Cash Paydown)		$ 0
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 0	7,054
Interest On Convertible Debt		(7,054)
Unamortized Debt Discount		$ 0
Convertible Note 40-5 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Jan. 24, 2023
Debt Maturity date		Mar. 21, 2024
Principal Balance		$ 0	90,166
Settlements and/or Principal Conversions		(90,166)
New Loans or (Cash Paydown)		$ 0
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 0	8,284
Interest On Convertible Debt		(8,284)
Unamortized Debt Discount		$ 0
Convertible Note 40-6 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Mar. 21, 2023
Debt Maturity date		Sep. 22, 2024
Principal Balance		$ 0	139,166
Settlements and/or Principal Conversions		(139,166)
New Loans or (Cash Paydown)		$ 0
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 0	10,671
Interest On Convertible Debt		(10,671)
Unamortized Debt Discount		$ 0
Convertible Note 40-7 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Jun. 05, 2023
Debt Maturity date		Jun. 05, 2024
Principal Balance		$ 0	139,166
Settlements and/or Principal Conversions		(139,166)
New Loans or (Cash Paydown)		$ 0
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 0	7,826
Interest On Convertible Debt		(7,826)
Unamortized Debt Discount		$ 0
Convertible Note 40-8 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Jun. 13, 2023
Debt Maturity date		Jun. 13, 2024
Principal Balance		$ 0	21,167
Settlements and/or Principal Conversions		(21,167)
New Loans or (Cash Paydown)		$ 0
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 0	1,127
Interest On Convertible Debt		(1,127)
Unamortized Debt Discount		$ 0
Convertible Note 40-9 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Jul. 19, 2023
Debt Maturity date		Jul. 19, 2024
Principal Balance		$ 0	35,500
Settlements and/or Principal Conversions		(35,500)
New Loans or (Cash Paydown)		$ 0
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 0	1,605
Interest On Convertible Debt		(1,605)
Unamortized Debt Discount		$ 0
Convertible Note 40-10 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Jul. 24, 2023
Debt Maturity date		Jul. 24, 2024
Principal Balance		$ 0	14,000
Settlements and/or Principal Conversions		(14,000)
New Loans or (Cash Paydown)		$ 0
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 0	614
Interest On Convertible Debt		(614)
Unamortized Debt Discount		$ 0
Convertible Note 41 [Member]
Debt Instrument [Line Items]
Debt Issuance date		Aug. 25, 2023
Debt Maturity date		Aug. 25, 2024
Principal Balance		$ 0	5,000
Settlements and/or Principal Conversions		0
New Loans or (Cash Paydown)		$ (5,000)
Shares Issued Upon Conversion or Exchange		0
Accrued Interest on Convertible Debt		$ 0	$ 175
Interest On Convertible Debt		$ (175)
[1] 938,908 Series Y Senior Convertible Preferred Shares issued in exchange for full value of the outstanding principal and interest on Notes 40-1, 40-2, 40-3, 40-4, 40-5, 40-6, 40-7, 40-8, 40-9 and 40-10

v3.24.3

CONVERTIBLE NOTES PAYABLE (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 25, 2024	Aug. 31, 2024	Jun. 11, 2024	May 31, 2024	May 15, 2024	Apr. 11, 2024	Dec. 31, 2023
Short-Term Debt [Line Items]
Convertible debt outstanding	$ 105,000		$ 105,000								$ 3,807,030
Principal outstanding	105,000		105,000								3,807,030
Accrued interest paid	361,172		361,172								620,963
Principal amount	$ 535,000		$ 535,000
Issuance of convertible preferred stock	940,130		940,130
Debt discount	$ 0		$ 0								24,820
Amortization of debt discount	(0)	$ 46,048	24,821	$ 94,664
Convertible debt	$ 105,000		105,000								$ 3,831,850
Note 9 [Member]
Short-Term Debt [Line Items]
Convertible debt								$ 58,846
Note 10-1 [Member]
Short-Term Debt [Line Items]
Convertible debt								$ 63,513
Note 41 [Member]
Short-Term Debt [Line Items]
Convertible debt						$ 5,501
Convertible Notes Payable [Member]
Short-Term Debt [Line Items]
Proceeds from convertible debt				421,375
Debt converted, interest converted			680	12,073
Debt converted, conversion cost converted			$ 1,000	$ 3,000
Debt converted, shares issued			1,222	3,662
Adjustment to additional paid in capital			$ 1,679	$ 141,406
Debt converted, amount converted				$ 87,460
Series Y Senior Convertible Preferred Stock [Member]
Short-Term Debt [Line Items]
Issuance of convertible preferred stock	938,908		938,908		16,206				938,908	938,908
Series R Preferred Stock [Member]
Short-Term Debt [Line Items]
Principal amount							$ 535,000
Holder Of Notes 9 And 10-1 [Member]
Short-Term Debt [Line Items]
Principal outstanding	$ 100,080		$ 100,080
Accrued interest paid	22,279		22,279
Convertible Noteholder [Member]
Short-Term Debt [Line Items]
Principal outstanding	5,000		5,000
Accrued interest paid	100,000		100,000
Outstsanding interest paid	$ 501		$ 501

v3.24.3

CAPITAL STOCK (Details Narrative) - USD ($)										1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 25, 2024	Jun. 11, 2024	May 15, 2024	Mar. 26, 2024	Mar. 05, 2024	Jan. 31, 2024	Jan. 19, 2024	Jul. 24, 2023	May 25, 2023	Feb. 29, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2024	Dec. 31, 2023	May 08, 2024	Apr. 11, 2024
Class of Stock [Line Items]
Total authorized shares																	350,000,000
Common stock shares authorized											300,000,000		300,000,000			300,000,000	300,000,000
Common stock par value											$ 0.001		$ 0.001			$ 0.001	$ 0.001
Preferred stock, shares authorized																	50,000,000
Preferred stock par value																	$ 0.001
Issuance of convertible preferred stock, shares											940,130		940,130
Stock issued new, shares													74,225
Loss from discontinued operations											$ 0	$ 3,705	$ 111,312	$ 93,005
Convertible Notes Payable [Member]
Class of Stock [Line Items]
Stock issued for conversion of debt, shares issued													1,222	3,662
Investor [Member]
Class of Stock [Line Items]
Stock issued new, shares					7,500
Fair value per share					$ 1.55
Selling, general and administrative expense					$ 11,617
Common Stock [Member]
Class of Stock [Line Items]
Stock issued for conversion of debt, shares issued													234,909
Three Board [Member]
Class of Stock [Line Items]
Stock issued new, shares				30,000
Fair value per share				$ 6.50
Share based compensation expense				$ 195,000
Six Previous Owners [Member] | Red Rock Settlement [Member]
Class of Stock [Line Items]
Stock issued new, shares										37,104
Fair value per share										$ 3
Loss from discontinued operations										$ 111,312
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized											2		2
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized											3,000,000		3,000,000			3,000,000
Preferred stock par value											$ 4.00		$ 4.00			$ 4.00
Conversion of stock, shares													1,385,549
Series B Preferred Stock [Member] | Common Stock [Member]
Class of Stock [Line Items]
Conversion of stock, shares													2,771,098
Series B Preferred Stock [Member] | Chief Financial Officer [Member]
Class of Stock [Line Items]
Stock issued new, shares									3,150
Stock issued new, value									$ 25,000
Series C Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized											500		500			500
Preferred stock par value											$ 4.00		$ 4.00			$ 4.00
Conversion of stock, shares													78
Series C preferred stock cancelled													2
Series C Preferred Stock [Member] | Common Stock [Member]
Class of Stock [Line Items]
Conversion of stock, shares													780,000
Series E Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized											1,000,000		1,000,000			1,000,000
Preferred stock par value											$ 4.00		$ 4.00			$ 4.00
Conversion of stock, shares													80,375
Series E Preferred Stock [Member] | Edge View [Member]
Class of Stock [Line Items]
Stock issued new, shares								5,000
Exchange bonus								$ 5,000
Series E Preferred Stock [Member] | Common Stock [Member]
Class of Stock [Line Items]
Conversion of stock, shares													160,750
Series F-1 Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized											50,000		50,000			50,000
Preferred stock par value											$ 4.00		$ 4.00			$ 4.00
Conversion of stock, shares													26,252
Series F-1 Preferred Stock [Member] | Common Stock [Member]
Class of Stock [Line Items]
Conversion of stock, shares													52,504
Series I Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized											15,000,000		15,000,000			15,000,000
Preferred stock par value											$ 4.00		$ 4.00			$ 4.00
Conversion of stock, shares													3,477,000
Series I Preferred Stock [Member] | Common Stock [Member]
Class of Stock [Line Items]
Conversion of stock, shares													6,954,000
Series I Preferred Stock [Member] | Board of Directors Chairman [Member]
Class of Stock [Line Items]
Stock issued for compensation, shares							62,500
Stock issued for compensation, value							$ 250,000
Series I Preferred Stock [Member] | Chief Executive Officer [Member]
Class of Stock [Line Items]
Stock issued for compensation, shares							62,500
Stock issued for compensation, value							$ 250,000
Series I Preferred Stock [Member] | Chief Financial Officer [Member]
Class of Stock [Line Items]
Stock issued new, shares						5,000
Stock issued new, value						$ 20,000
Series I Preferred Stock [Member] | Chief Accounting Officer [Member]
Class of Stock [Line Items]
Stock issued new, shares						2,500
Stock issued new, value						$ 10,000
Series J Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized											2,000,000		2,000,000			2,000,000
Preferred stock par value											$ 4.00		$ 4.00			$ 4.00
Conversion of stock, shares													1,713,584
Series J Preferred Stock [Member] | Common Stock [Member]
Class of Stock [Line Items]
Conversion of stock, shares													3,427,168
Series L Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized											400,000		400,000			400,000
Preferred stock par value											$ 4.00		$ 4.00			$ 4.00
Series N Senior Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized											3,000,000		3,000,000
Dividends payable											$ 1,211,585		$ 1,211,585			$ 766,437
Cumulative accrued dividends											$ 1,106,562		$ 1,106,562
Common stock dividends													197,601
Series N Senior Convertible Preferred Stock [Member] | Subsequent Event [Member]
Class of Stock [Line Items]
Cumulative accrued dividends															$ 105,023
Common stock dividends															26,256
Series R Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized											5,000		5,000
Dividends payment													$ 0			109,980
Conversion of stock, shares		165
Series X Senior Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized											5,000,000		5,000,000
Cumulative accrued dividends											$ 183,210		$ 183,210		$ 37,808
Common stock dividends													25,173		9,453
Dividends payment													$ 221,018			$ 190,685
Series Y Senior Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized											1,000,000		1,000,000			1,000,000
Preferred stock par value											$ 4.00		$ 4.00			$ 4.00
Cumulative accrued dividends											$ 147,555		$ 147,555
Common stock dividends													12,135
Issuance of convertible preferred stock, shares	16,206		938,908								938,908		938,908					938,908
Issuance of convertible preferred stock, value			$ 3,755,632
Common stock dividends													$ 177,910
Preferred stock dividends													16,206
Total dividends payable													$ 30,354
Accrued dividend payments	$ 64,824
Series R Preferred Stock [Member]
Class of Stock [Line Items]
Series R preferred stock cancelled													165

v3.24.3

WARRANTS (Details - Warrant activity) - Warrant [Member] - $ / shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of warrants, Beginning balance	3,150	3,153
Weighted average exercise price, Beginning balance	$ 1,162.76	$ 1,162.17
Number of warrants, Granted	0	0
Weighted average exercise price, Granted	$ 0	$ 0
Number of warrants, Exercised	0	0
Weighted average exercise price, Exercised	$ 0	$ 0
Number of warrants, Expired	(3)	(3)
Weighted average exercise price, Expired	$ 135.00	$ 547.50
Number of warrants, Ending balance	3,147	3,150
Weighted average exercise price, Ending balance	$ 1,163.74	$ 1,162.76
Number of warrants, Exercisable	3,147	3,150
Weighted average exercise price, exercisable	$ 1,162.76	$ 1,162.76

v3.24.3

DISCONTINUED OPERATIONS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Gain (Loss) from discontinued operations
Revenue	$ 1,355,641	$ 3,405,859	$ 5,149,416	$ 9,476,764
Cost of sales	(1,000,601)	(551,423)	(2,741,765)	(2,589,407)
Selling, general and administrative expenses	(936,835)	(577,677)	(2,622,981)	(2,095,611)
Discontinued Operations [Member] | Red Rock [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash	342		342		$ 342
Accounts receivable	300		300		300
Accounts payable and accrued expenses	238,285		238,285		238,285
Net liabilities of discontinued operations	(237,643)		(237,643)		$ (237,643)
Gain (Loss) from discontinued operations
Revenue	0	32,264	0	304,967
Cost of sales	0	(5,604)	0	(53,730)
Selling, general and administrative expenses	0	(30,067)	0	(341,900)
Interest expense	0	(298)	0	(2,342)
Settlement loss	0	0	(111,312)	0
Loss from discontinued operations	$ 0	$ (3,705)	$ (111,312)	$ (93,005)

v3.24.3

DISCONTINUED OPERATIONS (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Feb. 29, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Stock issued during period shares				74,225
Loss from discontinued operation loss		$ 0	$ 3,705	$ 111,312	$ 93,005
Six Previous Owners [Member] | Red Rock Settlement [Member]
Stock issued during period shares	37,104
Share price	$ 3
Loss from discontinued operation loss	$ 111,312

v3.24.3

GOODWILL (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment	$ 0	$ 0

v3.24.3

COMMITMENTS AND CONTINGENCIES (Details - Lease maturities)	Sep. 30, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
October 2024 – September 2025	$ 251,214
October 2025 – September 2026	171,507
October 2026 – September 2027	77,871
Total Future Undiscounted Lease Payments	464,459
Less imputed interest	36,132
Total lease obligations	$ 464,459

v3.24.3

COMMITMENTS AND CONTINGENCIES (Details - Supplemental information)	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Weighted-average remaining lease term	2 years 4 months 13 days
Weighted-average discount rate	6.38%

v3.24.3

COMMITMENTS AND CONTINGENCIES (Details - Financial performance goals)	Sep. 30, 2024 USD ($) shares
Year End 2021 [Member]
Effect of Fourth Quarter Events [Line Items]
Minimum Annual Nova EBITDA	$ 2,000,000
Cash Annual Bonus	$ 120,000
Year End 2021 [Member] | Series J Preferred Stock [Member]
Effect of Fourth Quarter Events [Line Items]
Stock to be issued, shares | shares	120,000
Year End 2022 [Member]
Effect of Fourth Quarter Events [Line Items]
Minimum Annual Nova EBITDA	$ 2,400,000
Cash Annual Bonus	$ 150,000
Year End 2022 [Member] | Series J Preferred Stock [Member]
Effect of Fourth Quarter Events [Line Items]
Stock to be issued, shares | shares	135,000
Year End 2023 [Member]
Effect of Fourth Quarter Events [Line Items]
Minimum Annual Nova EBITDA	$ 3,700,000
Cash Annual Bonus	$ 210,000
Year End 2023 [Member] | Series J Preferred Stock [Member]
Effect of Fourth Quarter Events [Line Items]
Stock to be issued, shares | shares	150,000
Year End 2024 [Member]
Effect of Fourth Quarter Events [Line Items]
Minimum Annual Nova EBITDA	$ 5,500,000
Cash Annual Bonus	$ 300,000
Year End 2024 [Member] | Series J Preferred Stock [Member]
Effect of Fourth Quarter Events [Line Items]
Stock to be issued, shares | shares	180,000
Year End 2025 [Member]
Effect of Fourth Quarter Events [Line Items]
Minimum Annual Nova EBITDA	$ 8,000,000
Cash Annual Bonus	$ 420,000
Year End 2025 [Member] | Series J Preferred Stock [Member]
Effect of Fourth Quarter Events [Line Items]
Stock to be issued, shares | shares	210,000

v3.24.3

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)		3 Months Ended		9 Months Ended
	May 31, 2021	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Jan. 02, 2024	Dec. 31, 2023	May 15, 2021
Operating lease expense		$ 126,831	$ 76,466	$ 327,008	$ 210,696
First Doctor [Member]
Annual base salaries	$ 372,000
Second Doctor [Member]
Annual base salaries	450,000
Third Doctor [Member]
Annual base salaries	$ 372,000
Chief Executive Officer [Member]
Accrued compensation		2,115,500		2,115,500			$ 2,365,500
Board of Directors Chairman [Member]
Accrued compensation		2,220,500		2,220,500			2,350,500
Chief Financial Officer [Member]
Accrued compensation		17,057		17,057			$ 17,057	$ 156,000
Chief Financial Officer [Member] | Employment Agreement [Member]
Accrued compensation		0		0		$ 228,000
Former Chief Accounting Officer [Member]
Accrued compensation		$ 0		$ 0		$ 210,000

v3.24.3

INCOME TAXES (Details Narrative)	Sep. 30, 2024 USD ($)
Income Tax Disclosure [Abstract]
Net operating loss carry forwards	$ 24,000,000

v3.24.3

SEGMENT REPORTING (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Consolidated assets	$ 23,514,762		$ 23,514,762		$ 20,745,811
Consolidated revenues	1,355,641	$ 3,405,859	5,149,416	$ 9,476,764
Consolidated cost of sales	1,000,601	551,423	2,741,765	2,589,407
Income from operations from subsidiaries	(585,160)	2,273,394	(525,651)	4,780,381
Income (Loss) before taxes	(1,977,968)	1,985,226	(2,281,345)	2,874,613
Healthcare Segment [Member]
Segment Reporting Information [Line Items]
Consolidated assets	20,155,319		20,155,319		18,955,991
Consolidated revenues	1,355,641	3,405,859	5,149,416	9,476,764
Consolidated cost of sales	1,000,601	551,423	2,741,765	2,589,407
Income from operations from subsidiaries	138,197	2,610,188	1,739,099	5,994,978
Income (Loss) before taxes	138,197	2,521,820	1,739,099	4,717,363
Real Estates [Member]
Segment Reporting Information [Line Items]
Consolidated assets	578,620		578,620		587,456
Consolidated revenues	0	0	0	0
Consolidated cost of sales	0	0	0	0
Income from operations from subsidiaries	(4,000)	(278)	(8,836)	(2,118)
Income (Loss) before taxes	(4,000)	(278)	(8,836)	(2,118)
Corporate Administration And Other [Member]
Segment Reporting Information [Line Items]
Consolidated assets	2,780,823		2,780,823		$ 1,202,364
Subsidiary [Member]
Segment Reporting Information [Line Items]
Income from operations from subsidiaries	134,197	2,609,910	1,730,263	5,992,860
Cardiff Lexington [Member]
Segment Reporting Information [Line Items]
Income from operations from subsidiaries	(719,357)	(336,516)	(2,255,914)	(1,212,479)
Corporate Segment [Member]
Segment Reporting Information [Line Items]
Income (Loss) before taxes	$ (2,112,165)	$ (536,316)	$ (4,011,608)	$ (1,840,632)

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