Summary of Significant Accounting Policies (Tables)

2 Months Ended

Mar. 31, 2014

Medical payables were included in Accounts Payable and Accrued Liabilities and consisted of the following at March 31:

	2014
Balance, beginning of the period	$	285,625

Incurred health care costs:
Current period		167,000
Prior periods		-
Total incurred health care costs		167,000
Claims paid		-
Accrual for net deficit from full risk capitation contracts		99,936

Balance, end of period	$	552,561

Carrying Values And Estimated Fair Values Of Debt Instruments

The carrying amounts and fair values of the Company's financial instruments are presented below as of March 31, 2014:

	Fair Value
Level 3 Liabilities
Warrant liability	$	2,354,624
	$	2,354,624

Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation

The following summarizes the activity of Level 3 inputs measured on a recurring basis for the two months ended March 31, 2014:

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

	Warrant
Balance at February 1, 2014	$	-
Additions		2,354,624
Exercises		-
Adjustment resulting from change in fair value recognized in earnings (1)		-
Balance at March 31, 2014	$	2,354,624

(1) The amount of total gains or losses for the period attributable to the change in unrealized gains or losses relating to liabilities held at the reporting date. The unrealized gain is recorded in unrealized gain on change in fair value of warrant and derivative liabilities in the accompanying condensed and consolidated statement of operations.

Basic and Diluted Earnings per Share

The following table sets forth the number of shares excluded from the computation of diluted earnings per share, as their inclusion would be anti-dilutive:

	Two months ended March 31,
	2014		2013
Incremental shares assumed issued on exercise of in the money options		3,882,634		3,970,690
Incremental shares assumed issued on exercise of in the money warrants		-		1,882,746
		3,882,634		5,853,436

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References+ Details