Rennova Health's Response to COVID-19

Financials

v3.20.2
Condensed Consolidated Balance Sheets - USD ($)
Jun. 30, 2020
Dec. 31, 2019
Current assets:    
Cash $ 810,848 $ 16,933
Accounts receivable, net 2,596,432 3,565,447
Inventory 690,076 614,344
Prepaid expenses and other current assets 17,422 487
Income tax refunds receivable 1,760,988 642,503
Current assets of AMSG and HTS classified as held for sale 209,878 505,389
Total current assets 6,085,644 5,345,103
Property and equipment, net 7,896,467 8,231,830
Intangibles, net 509,443 509,443
Deposits 327,281 337,153
Right-of-use assets 394,281 274,747
Non-current assets of AMSG and HTS classified as held for sale 2,140 9,383
Total assets 15,215,256 14,707,659
Current liabilities:    
Accounts payable (includes related parties amount of $0.6 million and $0.6 million, respectively) 11,766,475 13,691,250
Checks issued in excess of bank account balance 145,685 275,124
Accrued expenses (includes related parties amount of $0 million and $2.0 million, respectively) 16,269,839 14,583,954
Income taxes payable 1,373,669 1,373,669
Current portion of notes payable 5,290,477 3,977,710
Current portion of note payable, related party 15,159,455
Current portion of finance lease obligations 349,987 1,119,418
Current portion of debentures 29,153,740 29,873,740
Current portion of right-of-use operating lease obligations 165,924 116,037
Derivative liabilities 455,336 455,336
Current liabilities of AMSG and HTS classified as held for sale 2,303,103 2,792,502
Total current liabilities 67,274,235 83,418,195
Other liabilities:    
Note payable, net of current portion 1,402,428
Right-of-use operating lease obligations, net of current portion 228,357 158,710
Total liabilities 68,905,020 83,576,905
Commitments and contingencies  
Stockholders' deficit:    
Preferred stock value  
Common stock, $0.0001 par value, 10,000,000,000 shares authorized, 989,894 and 964,894 shares issued and outstanding 99 96
Additional paid-in-capital 532,426,974 510,402,197
Accumulated deficit (593,762,532) (586,942,014)
Total stockholders' deficit (61,315,239) (76,519,721)
Total liabilities and stockholders' deficit 15,215,256 14,707,659
Redeemable Preferred Stock I-1 [Member]    
Other liabilities:    
Redeemable Preferred Stock 5,835,294 5,835,294
Redeemable Preferred Stock I-2 [Member]    
Other liabilities:    
Redeemable Preferred Stock 1,790,181 1,815,181
Series H Preferred Stock [Member]    
Stockholders' deficit:    
Preferred stock value
Series F Preferred Stock [Member]    
Stockholders' deficit:    
Preferred stock value 17,500 17,500
Total stockholders' deficit   17,500
Series K Preferred Stock [Member]    
Stockholders' deficit:    
Preferred stock value 2,500
Total stockholders' deficit   2,500
Series L Preferred Stock [Member]    
Stockholders' deficit:    
Preferred stock value 2,500
Series M Preferred Stock [Member]    
Stockholders' deficit:    
Preferred stock value $ 220

Source

v3.20.2
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Income Statement [Abstract]        
Net revenues $ 2,069,019 $ 4,061,189 $ 3,910,550 $ 9,251,839
Operating expenses:        
Direct costs of revenue 2,779,369 4,680,333 5,345,649 8,844,733
General and administrative 2,421,863 4,290,935 5,384,592 9,567,071
Depreciation and amortization 181,091 186,236 345,798 409,822
Total operating expenses 5,382,323 9,157,504 11,076,039 18,821,626
Loss from continuing operations before other income (expense) and income taxes (3,313,304) (5,096,315) (7,165,489) (9,569,787)
Other income (expense):        
Other income (expense), net 6,847,209 (311,463) 6,719,166 (1,195,742)
Gain from legal settlements 1,230,522 1,230,522
Gain on bargain purchase 250,000
Change in fair value of derivative instruments (105,076)
Interest expense (2,658,972) (7,871,798) (5,549,232) (15,591,766)
Total other income (expense), net 5,418,759 (8,183,261) 2,400,456 (16,642,584)
Net income (loss) from continuing operations before income taxes 2,105,455 (13,279,576) (4,765,033) (26,212,371)
Benefit from income taxes 1,118,485
Net income (loss) from continuing operations 2,105,455 (13,279,576) (3,646,548) (26,212,371)
Net income (loss) from discontinued operations 16,173 (145,251) (23,602) (653,860)
Net income (loss) 2,121,628 (13,424,827) (3,670,150) (26,866,231)
Deemed dividend (3,150,368) (3,150,368) (123,861,587)
Net loss available to common shareholders $ (1,028,740) $ (13,424,827) $ (6,820,518) $ (150,727,818)
Net loss per common share:        
Basic net loss available to common shareholders $ (1.04) $ (25.38) $ (6.92) $ (448.88)
Diluted net loss available to common shareholders $ (1.04) $ (25.38) $ (6.92) $ (448.88)
Weighted average number of common shares outstanding during the period:        
Basic 989,894 528,965 985,608 335,786
Diluted 989,894 528,965 985,608 335,786

Source

v3.20.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Cash flows from operating activities:    
Net loss from continuing operations $ (3,646,548) $ (26,212,371)
Adjustments to reconcile net loss to net cash (used in) provided by operations:    
Depreciation and amortization 345,798 409,822
Stock-based compensation 17,300
Amortization of debt discount 63,695 5,003,653
Modification of warrants 9,464,991
Gain from legal settlements (1,230,522)
HHS Provider Relief Funds (7,483,830)
Penalty for non-payment of debenture 595,440
Change in fair value of derivative instruments 105,076
Loss on sales of accounts receivable 249,500 656,949
Bargain purchase gain for hospital and medical center (250,000)
Loss from discontinued operations (23,602) (653,860)
Changes in operating assets and liabilities:    
Accounts receivable 1,328,369 (2,114,913)
Inventory (75,732) 35,292
Prepaid expenses and other current assets (16,935) (33,353)
Security deposits 9,872 39,227
Accounts payable and checks issued in excess of bank balance (1,771,184) 4,111,576
Accrued expenses 4,420,816 3,290,128
Income tax assets and liabilities (1,118,485) (45,000)
Net cash used in operating activities of continuing operations (8,948,788) (5,580,043)
Net cash (used in) provided by operating activities of discontinued operations (122,991) 153,483
Net cash used in operating activities (9,071,779) (5,426,560)
Cash flows from investing activities:    
Purchase of hospital and medical center (658,537)
Purchase of property and equipment (10,435) (43,715)
Net cash used in investing activities of continuing operations (10,435) (702,252)
Net cash from investing activities of discontinued operations
Net cash used in investing activities (10,435) (702,252)
Cash flows from financing activities:    
Proceeds from issuance of related party note payable and advances 4,595,553 9,099,126
Payments on related party note payable and advances (3,251,387) (1,510,000)
Proceeds from issuance of debentures 3,845,000
Proceeds from note payable 1,077,116
Payments on notes payable (793,715) (5,005,513)
Payments on debentures (720,000)
Proceeds from sales of accounts receivable 465,000 1,179,500
Payments on right-to-use liabilities (133,807) (92,550)
Proceeds from Paycheck Protection Program notes payable 2,368,100
HHS Provider Relief Funds 7,483,830
Payments of accounts receivable sold under sales agreements (1,073,854) (818,381)
Payments on finance lease obligations (100,707) (143,926)
Net cash provided by financing activities of continuing operations 9,916,129 6,553,256
Net cash used in financing activities of discontinued operations (40,000)
Net cash provided by financing activities 9,876,129 6,553,256
Net increase in cash 793,915 424,444
Cash at beginning of period 16,933 6,870
Cash at end of period $ 810,848 $ 431,314

Source