Rennova Health's Response to COVID-19

Financials

v3.20.2
Condensed Consolidated Balance Sheets - USD ($)
Sep. 30, 2020
Dec. 31, 2019
Current assets:    
Cash $ 220,343 $ 16,933
Accounts receivable, net 2,431,715 3,565,447
Inventory 690,409 614,344
Prepaid expenses and other current assets 225,220 487
Income tax refunds receivable 1,165,388 642,503
Current assets of discontinued operations classified as held for sale 186,282 505,389
Total current assets 4,919,357 5,345,103
Property and equipment, net 8,116,050 8,231,830
Intangibles, net 509,443 509,443
Deposits 293,621 237,139
Right-of-use assets 1,030,021 88,905
Non-current assets of discontinued operations classified as held for sale 224,080 295,239
Total assets 15,092,572 14,707,659
Current liabilities:    
Accounts payable (includes related parties amount of $0.4 million and $0.6 million, respectively) 11,640,733 12,809,723
Checks issued in excess of bank account balance 95,521 275,124
Accrued expenses (includes related parties amount of $0 and $2.0 million, respectively) 16,475,148 14,245,292
Income taxes payable 1,373,669 1,373,669
Current portion of notes payable 3,776,294 3,977,710
Notes payable, related party 278,000 15,159,455
Current portion of finance lease obligations 249,985 1,119,418
Current portion of debentures 14,341,713 29,873,740
Current portion of right-of-use operating lease obligations 152,609 30,311
Derivative liabilities 455,336 455,336
Current liabilities of discontinued operations classified as held for sale 3,669,119 4,098,417
Total current liabilities 52,508,127 83,418,195
Other liabilities:    
Note payable, net of current portion 2,220,662
Right-of-use operating lease obligations, net of current portion 877,412 58,594
Non-current liabilities of discontinued operations classified as held for sale 26,564 100,116
Total liabilities 55,632,765 83,576,905
Commitments and contingencies
Stockholders' deficit:    
Common stock, $0.0001 par value, 10,000,000,000 shares authorized, 1,866,929 and 964,894 shares issued and outstanding 187 96
Additional paid-in-capital 622,938,644 510,402,197
Accumulated deficit (663,499,547) (586,942,014)
Total stockholders' deficit (40,540,193) (76,519,721)
Total liabilities and stockholders' deficit 15,092,572 14,707,659
Redeemable Preferred Stock I-1 [Member]    
Other liabilities:    
Redeemable Preferred Stock 5,835,294
Redeemable Preferred Stock I-2 [Member]    
Other liabilities:    
Redeemable Preferred Stock 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
Series K Preferred Stock [Member]    
Stockholders' deficit:    
Preferred stock value 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
Series N Preferred Stock [Member]    
Stockholders' deficit:    
Preferred stock value $ 303

Source

v3.20.2
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Income Statement [Abstract]        
Net revenues $ 1,950,698 $ 3,920,607 $ 5,860,807 $ 13,155,882
Operating expenses:        
Direct costs of revenue 2,805,829 3,227,709 8,151,478 12,068,460
General and administrative 3,274,508 3,074,522 8,593,756 12,277,416
Depreciation and amortization 53,579 199,996 399,377 609,818
Total operating expenses 6,133,916 6,502,227 17,144,611 24,955,694
Loss from continuing operations before other income (expense) and income taxes (4,183,218) (2,581,620) (11,283,804) (11,799,812)
Other income (expense), net:        
Other income (expense), net 169,101 (5,784,873) 6,907,670 (6,981,116)
Gain (loss) from legal settlements (23,652) 1,096,613
Gain on extinguishment of debt 389,864 389,864
Gain on bargain purchase 250,000
Change in fair value of derivative instrument (105,076)
Interest expense (2,377,980) (3,637,467) (7,926,750) (19,229,233)
Total other income (expense), net (1,842,667) (9,422,340) 467,397 (26,065,424)
Net loss from continuing operations before income taxes (6,025,885) (12,003,960) (10,816,407) (37,865,236)
Benefit from income taxes (1,118,485)
Net loss from continuing operations (6,025,885) (12,003,960) (9,697,922) (37,865,236)
Net loss from discontinued operations (166,180) (261,808) (164,293) (1,266,764)
Net loss (6,192,065) (12,265,768) (9,862,215) (39,132,000)
Deemed dividends (63,544,950) (66,695,318) (123,861,587)
Net loss available to common stockholders $ (69,737,015) $ (12,265,768) $ (76,557,533) $ (162,993,587)
Net loss per common share:        
Basic net loss available to common stockholders $ (54.33) $ (18.49) $ (70.52) $ (365.30)
Diluted net loss available to common stockholders $ (54.33) $ (18.49) $ (70.52) $ (365.30)
Weighted average number of common shares outstanding during the period:        
Basic 1,283,559 663,405 1,085,650 446,192
Diluted 1,283,559 663,405 1,085,650 446,192

Source

v3.20.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Cash flows from operating activities:    
Net loss from continuing operations $ (9,697,922) $ (37,865,236)
Adjustments to reconcile net loss to net cash (used in) provided by operations:    
Depreciation and amortization 399,377 609,818
Stock-based compensation 25,950
Amortization of debt discount 108,958 6,386,305
Modification of warrants 9,464,991
Gain on extinguishment of debt (389,864)
Gain from legal settlements (1,096,613)
Other income from federal government relief funds (8,020,969)
Penalty for non-payment of debentures 5,710,440
Change in fair value of derivative instruments (105,076)
Loss on disposal of property and equipment 87,293
Loss on sale of accounts receivables under sales agreements 591,563 1,361,053
Bargain purchase gain for hospital and medical center (250,000)
Loss from discontinued operations (164,293) (1,266,764)
Changes in operating assets and liabilities:    
Accounts receivable 1,241,398 (3,564,790)
Inventory (76,065) 1,174
Prepaid expenses and other current assets (224,733) 81,751
Security deposits (56,482) (34,659)
Accounts payable and checks issued in excess of bank balance (1,065,570) 4,974,361
Accrued expenses 5,563,232 (371,438)
Income tax assets and liabilities (522,885) (45,000)
Net cash used in operating activities of continuing operations (13,323,575) (14,676,968)
Net cash (used in) provided by operating activities of discontinued operations (100,685) 302,755
Net cash used in operating activities (13,424,260) (14,374,213)
Cash flows from investing activities:    
Purchase of hospital and medical center (658,537)
Purchase of property and equipment (370,890) (50,801)
Net cash used in investing activities of continuing operations (370,890) (709,338)
Net cash from investing activities of discontinued operations
Net cash used in investing activities (370,890) (709,338)
Cash flows from financing activities:    
Proceeds from issuance of related party notes payable and advances 5,809,553 16,478,104
Payments on related party notes payable and advances (4,187,387) (2,310,000)
Proceeds from issuance of debentures 3,845,000
Proceeds from notes payable 1,198,835 1,500,000
Payments on notes payable (1,522,748) (5,005,794)
Payments on debentures (920,000)
Proceeds from accounts receivable sales agreements 841,700 2,650,000
Payments on right-to-use liabilities (98,374) (41,953)
Proceeds from Paycheck Protection Program notes payable 2,264,201
HHS Provider Relief Funds 12,542,691
Cash paid for fractional shares in connection with reverse stock split (684)
Payments of accounts receivable under sales agreements (1,540,929) (1,782,614)
Payments on finance lease obligations (200,709) (143,930)
Net cash provided by financing activities of continuing operations 14,156,149 15,188,813
Net cash used in financing activities of discontinued operations (157,589)
Net cash provided by financing activities 13,998,560 15,188,813
Net increase in cash 203,410 105,262
Cash at beginning of period 16,933 2,209
Cash at end of period $ 220,343 $ 107,471

Source