UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended ~~June~~September 30, 2020

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

For the transition period from ______________

Commission File Number: 1-9927

ADVANZEON SOLUTIONS, INC.

(Exact name of registrant as specified in its charter)

Delaware		95-2594724
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

2901 W. Busch Blvd. Suite 701 Tampa, FL		33618
(Address of principal executive offices)		(Zip Code)

813-517-8484

(Registrant’s telephone number, including area code)

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

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 fling 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 (§232.405 of this chapter) 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, 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 ~~August~~September 1015, ~~2020~~2021, the ~~Registrant~~registrant had outstanding ~~117~~119,~~516~~907,~~838~~316 shares of its $0.01 par value Common Stock.

ADVANZEON SOLUTIONS, INC.

TABLE OF CONTENTS

		~~Pages~~	Pages
PART I.	Financial Information
Item 1.	Consolidated Financial Statements
	Consolidated Balance Sheets as of June 30, 2020 (unaudited) and December 31, 2019	3
		Consolidated Balance Sheets as of September 30, 2020 (unaudited) and December 31, 2019	3
	Consolidated Statements of Operations for the Three and Six-Month Periods Ended June 30, 2020 and 2019 (unaudited)	4
		Consolidated Statements of Operations for the Three and Nine-Month Periods Ended September 30, 2020 and 2019 (unaudited)	4
	Consolidated Statement of Stockholders' Deficiency For the Three and Six-Month Periods Ended June 30, 2020 and 2019 (unaudited)	5
		Consolidated Statement of Stockholders' Deficiency For the Three and Nine-Month Periods Ended September 30, 2020 and 2019 (unaudited)	5
	Consolidated Statements of Cash Flows for the Six-Month Periods Ended June 30, 2020 and 2019 (unaudited)	6
		Consolidated Statements of Cash Flows for the Nine-Month Periods Ended September 30, 2020 and 2019 (unaudited)	6
	~~Notes to Consolidated Financial Statements~~	7Notes to Consolidated Financial Statements	7
Item 2.	Management’‘s Discussion and Analysis of Financial Condition and Results of Operations	17	17
Item 3.	Quantitative and Qualitative Disclosure about Market Risk	23
Item 4.	Controls and Procedures	23
PART II.	Other Information
Item 1.	Legal Proceedings	25	24
Item 1A.	Risk Factors	25	24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25	24
Item 3.	~~Exhibits~~Default upon Senior Securities	30	30
Item 4.	Mine Safety		30
Item 5.	Other Information		31
Item 6.	Exhibits		31

PART I – FINANCIAL INFORMATION

~~ITEM 1~~ADVANZEON SOLUTIONS, INC. ~~Consolidated Financial~~( ~~Statements~~PARENT COMPANY DEBTOR-IN-POSSESSION)

ADVANZEON SOLUTIONS, INC.

CONSOLIDATED BALANCE SHEETS

~~June~~ September 30, 2020 (unaudited) and December 31, 2019

	June 30, 2020			December 31,
	September 30, 2020			December 31,
	(unaudited)			2019
ASSETS
CURRENT ASSETS
Cash	$	~~145~~35,~~915~~566		$	69,327
Restricted cash		845,340			—
Accounts receivable		4060,~~990~~302			29,769
Current portion of right of use asset		~~136~~137,~~230~~992			113,911
Other current assets		~~657~~516,~~025~~238			~~826~~978,~~597~~860
Total current assets		1,~~825~~595,~~500~~438			1,~~039~~191,~~604~~867
PROPERTY, PLANT, AND EQUIPMENT
Property and equipment, net		5,~~683~~372			1,239
Leasehold improvements, net		—			—
Total property, plant, and equipment		5,~~683~~372			1,239
RIGHT OF USE ASSET, NET OF CURRENT PORTION		~~179~~144,~~221~~886			146,880
TOTAL ASSETS	$	21,~~010~~745,~~404~~696		$	1,~~187~~339,~~723~~986
CURRENT LIABILITIES
Related party loans payable	$	~~102~~147,~~229~~761		$	342,670
Account payable		~~403~~538,~~265~~113			99251,~~441~~704
Debt		10,~~416~~422,~~176~~356			12,352,189
Contingent liability		642,~~659~~660			642,659
Current portion of lease liability		~~136~~137,~~230~~992			113,911
Other accrued expenses		1314,~~742~~093,~~192~~492			15,891,787
Total current liabilities		25,~~442~~982,~~751~~374			29,~~442~~594,~~657~~920
LEASE LIABILITY, NET OF CURRENT PORTION		~~179~~144,~~221~~886			146,880
TOTAL LIABILITIES		2526,~~621~~127,~~972~~260			29,~~589~~741,~~537~~800
STOCKHOLDERS' DEFICIENCY
STOCKHOLDERS’ DEFICIENCY
Preferred stock, $.001 par value; 1,000,000 shares authorized as of June 30, 2020 and December 31, 2019		—			—
Preferred stock, $.001 par value; 1,000,000 shares authorized as of September 30, 2020 and December 31, 2019		—			—
Series C Convertible Preferred; $.001 par value; 14,400 shares authorized; 10,434 shares issued and outstanding as of June 30, 2020 and December 31, 2019		10			10
Series C Convertible Preferred; $.001 par value; 14,400 shares authorized; 14,400 shares issued and outstanding as of September 30, 2020 and December 31, 2019		10			10
Series D Convertible Preferred; $.001 par value; 7,000 shares authorized; 250 shares issued and outstanding as of June 30, 2020 and December 31, 2019		—			—
Series D Convertible Preferred; $.001 par value; 7,000 shares authorized; 250 shares issued and outstanding as of September 30, 2020 and December 31, 2019		—			—
Remaining Preferred stock; $.001 par value; 978,600 shares authorized as of June 30, 2020 and December 31, 2019		—			—
Remaining Preferred stock; $.001 par value; 978,600 shares authorized as of September 30, 2020 and December 31, 2019		—			—
Common stock, $0.01 par value; 1,000,000,000 shares authorized; 13,201,582 shares reserved; 116,751,439 and 71,661,656 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively		1,167,514			716,617
Common stock, $0.01 par value; 1,000,000,000 shares authorized; 13,201,582 shares reserved; 117,516,838 and 71,661,656 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively		1,175,168			716,617
Additional paid in capital		35,~~361~~438,~~980~~520			28,719,246
Accumulated deficit		(60,~~141~~995,~~072~~262	)		(57,837,687	)
Total stockholders' deficiency		(23,611,568	)		(28,401,814	)
Total stockholders’ deficiency		(24,381,564	)		(28,401,814	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY	$	2,010,404		$	1,187,723
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIENCY	$	1,745,696		$	1,339,986

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

ADVANZEON SOLUTIONS, INC. ( PARENT COMPANY DEBTOR-IN-POSSESSION)

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three and ~~Six~~Nine-Month Periods Ended September ~~June~~ 30, 2020 and 2019 (unaudited)

	Three-Month Period Ended						~~Six~~Nine-Month Period Ended
	June 30,						June 30,
	September 30,						September 30,
	2020			2019			2020			2019
Revenues:
Obstructive sleep apnea (OSA)	$	~~103~~127,~~444~~070		$	9068,~~453~~173		$	~~230~~358,~~992~~062			~~158~~226,~~376~~549
Total revenues		~~103~~127,~~444~~070			9068,~~453~~173			~~230~~358,~~992~~062			~~158~~226,~~376~~549
Costs and expenses:
Costs of revenues		6569,~~000~~599			662,~~157~~394			~~129~~199,~~909~~508			~~107~~110,~~817~~211
General and administrative		~~715~~620,~~397~~126			~~416~~428,~~039~~077			1,~~311~~931,~~462~~591			~~841~~1,~~843~~269,920
Depreciation and amortization		~~312~~311			~~235~~84			~~623~~934			~~440~~524
Total costs and expenses		~~780~~690,~~709~~036			~~482~~430,~~431~~555			12,~~441~~132,~~994~~033			~~950~~1,~~100~~380,655
Loss from operations		(~~677~~562,~~265~~966	)		(~~391~~362,~~978~~382	)		(1,~~211~~773,~~002~~971	)		(~~791~~1,~~724~~154,106	)
Other income (expense):
Interest expense		(~~707~~291,~~774~~258	)		(~~341~~383,~~178~~798	)		(1,~~102~~393,~~403~~659	)		(~~669~~1,~~193~~052,991	)
Interest income		—34			~~5,994~~29			2053			56,~~994~~023
Legal settlement		—			~~112,172~~—			—			112,172
Forgivable SBA EIBL loan advance		10,000			—			10,000			—
State Tax Penalty		—			(1,650	)		—			(1,650	)
Total other expense		(697,774	)		(223,012	)		(1,092,383	)		(551,027	)
Forgivable SBA EIBL loan advance		—			—			10,000			—
Net loss	$	(1,375,039	)	$	(614,990	)	$	(2,303,385	)	$	(1,342,751	)
Total other expense		(291,224	)		(385,419	)		(1,383,606	)		(936,446	)
Net loss	$	(854,190	)		(747,801	)		(3,157,577	)		(2,090,552	)
PER SHARE INFORMATION
Net Loss Per Common Share	$	(0.01	)	$	(0.01	)	$	(0.0203	)	$	(0.0203	)
Weighted Average Number of Common
Shares Outstanding		79115,~~534~~989,~~495~~853			67,361,656			7586,~~598~~852,~~076~~188			67,027,954

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

ADVANZEON SOLUTIONS, INC. ( PARENT COMPANY DEBTOR-IN-POSSESSION)

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY

	Series C convertible Preferred Stock Number of Shares		Series C Convertible Preferred Stock Amount		Common Stock Number of Shares		Common Stock Amount		Additional Paid - in Capital		Accumulated Deficit			Total
Balance at December 31, 2018		10,434	$	10		66,661,656	$	666,617	$	28,012,007	$	(54,581,873	)	$	(25,903,239	)
Stock Issued for Services		—		—		200,000		2,000		14,000		—			16,000
Sale of Stock		—		—		500,000		5,000		10,000		—			15,000
Net Loss		—		—		—		—		—		(727,761	)		(727,761	)
Balance at March 31, 2019		10,434		10		67,361,656		673,617		28,036,007		(55,309,634	)		(26,600,000	)
Stock Issued for Services		—		—		—		—		—		—			—
Sale of Stock		—		—		—		—		—		—			—
Net Loss		—		—		—		—		—		(614,990	)		(614,990	)
Balance at June 30, 2019		10,434		10		67,361,656		673,617		28,036,007		(55,924,624	)		(27,214,990	)
Stock Issued for Services		—		—		—		—		—		—			—
Sale of Stock		—		—		—		—		—		—			—
Net Loss		—		—		—		—		—		(747,801	)		(747,801	)
Balance at September 30, 2019		10,434		10		67,361,656		673,617		28,036,007		(56,672,425	)		(27,962,791	)
Stock Issued for Services		—		—		4,300,000		43,000		430,000		—			473,000
Sale of Warrants		—		—		—		—		253,239		—			253,239
Sale of Stock		—		—		—		—		—		—			—
Net Loss		—		—		—		—		—		(1,165,262	)		(1,165,262	)
Balance at December 31, 2019		10,434		10		71,661,656		716,617		28,719,246		(57,837,687	)		(28,401,814	)
Stock Issued for Services		—		—		—		—		—		—			—
Sale of Warrants		—		—		—		—		—		—			—
Sale of Stock		—		—		—		—		—		—			—
Net Loss		—		—		—		—		—		(928,346	)		(928,346	)
Balance at March 31, 2020		10,434		10		71,661,656		716,617		28,719,246		(58,766,033	)		(29,330,160	)
Stock Issued for Services		—		—		—		—		—		—			—
Sale of Warrants		—		—		—		—		18,251		—			18,251
Sale of Stock		—		—		45,089,783		450,897		6,624,483		—			7,075,380
Net Loss		—		—		—				—		(1,375,039	)		(1,375,039	)
Balance at June 30, 2020		10,434		10		116,751,439		1,167,514		35,361,980		(60,141,072	)		(23,611,568	)
Stock Issued for Services		—		—		—		—		—		—			—
Sale of Warrants		—		—		—		—		—		—			—
Sale of Stock		—		—		765,399		7,654		76,540		—			84,194
Net Loss		—		—		—				—		(854,190	)		(854,190	)
Balance at September 30, 2020		10,434		10		117,516,838		1,175,168		35,438,520		(60,995,262	)		(24,381,564	)

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

ADVANZEON SOLUTIONS, INC. ( PARENT COMPANY DEBTOR-IN-POSSESSION)

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the ~~Six~~Nine-Month Periods Ended ~~June~~ September 30, 2020 and 2019 (unaudited)

	Six-Month Periods Ended
	June 30,
	2020			2019
	(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(2,303,385	)	$	(1,342,751	)
Net income (loss)	$	(3,157,577	)	$	(2,090,552	)
Adjustments to reconcile net loss to net cash used in operating activities:
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		623			440
Accounts Receivable		(30,534	)		(281	)
Stock issued for services		—			16,000
Miscellaneous Receivable		(8,859	)		0
Amortization of right of use assets		54,660			25,579
Right of Use Current Portion		(24,081	)		(124,311	)
Net changes in assets and liabilities:
Capitalized Portion of Lease		857			857
Accounts receivable		(11,221	)		(2,756	)
Lease Deposit		0			10,000
Other current assets		169,572			(712,065	)
Prepaid Expenses		310,006			(68,145	)
Payments on lease liabilities		(54,660	)		(25,579	)
Loans to Others		8,827			(22,459	)
Accounts payable		51,383			210,951
Accrued Interest Receivable		5			0
Other accrued expenses		1,215,572			742,356
Accounts Payable		1,697,035			(722,89	)
Net cash used in operating activities		(877,456	)		(1,087,825	)
Lease Liability Current Portion		24,081			124,311
Payroll Tax Liability		14,771			799
Accrued Expenses		(1,828,063	)		1,118,572
Contingent Liability		0			0
Loans Payable Related Party		(194,909	)		(292,102	)
Loans Payable Related Party: Howard Jenkins		0			0
Notes Payable		(3,173,673	)		2,075,250
Lease Liability Net of Current		(1,993	)		171,885
Net cash provided by (used in) operating activities		(6,364,107	)		180,932
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant, and equipment		(5,067	)		(1,549	)
Equipment		(5,067	)		(1,549	)
Net cash used in investing activities		(5,067	)		(1,549	)
Depreciation & Amortization		934			524
Right of Use Asset Net of Current		1,993			(171,886	)
Net cash used in investing activities		(2,140	)		(172,911	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from promissory notes		559,360			1,070,250
Preferred Stock		0			0
Proceeds from PPP loan		1,243,840			—
Common Stock		458,551			7,000
Payments on debt		(17,000	)		—
Additional Paid in Capital		6,701,023			24,000
Sale of stock		18,251			15,000
APIC Warrants Outstanding		18,251
Net cash provided by financing activities		1,804,451			1,085,250
Net cash (used in) provided by financing activities		7,177,825			31,000
Net increase (decrease) in cash		921,928			(4,124	)
Net (decrease) / increase in cash		811,578			39,021
CASH - Beginning of Year		69,327			25,036
Cash - Beginning of Year		69,328			25,036
CASH AND RESTRICTED CASH - END OF PERIOD	$	991,255		$	20,912
CASH - END OF PERIOD	$	880,906		$	64,057
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Cash paid during the year for:
Interest	$	—		$	—
Income taxes	$	—		$	—
Recording of right of use assets under
Schedule of non-cash investing transactions: Convertible promissory note converted to common stock		0		$	0
lease agreements (ASU 2016-02)	$	135,075		$	119,640
Schedule of non-cash investing transactions:
Convertible promissory note and accrued interest
converted to common stock	$	7,075,380		$	—

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

ADVANZEON SOLUTIONS, INC. ( PARENT COMPANY DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. DESCRIPTION OF THE COMPANY’S BUSINESS AND BASIS OF PRESENTATION

The consolidated financial statements include the accounts of Advanzeon Solutions, Inc and its wholly owned subsidiary, and its respective subsidiaries (collectively referred to herein as, the “Company” ,“”Advanzeon” ,“”we”, “us” or “our”).

~~In the~~On ~~opinion~~September of4, ~~management~~2020, ~~the~~in ~~accompanying~~a ~~unaudited~~matter ~~financial~~entitled ~~statements~~Dr. ~~contain~~Jerry ~~all~~Katzman ~~adjustments~~v. Comprehensive ~~necessary~~Care toCorporation ~~present~~n/k/a/ ~~fairly the~~Advanzeon ~~Company's~~Solutions, ~~financial~~Inc. ~~position~~a asreceiver ofwas ~~December~~appointed ~~31,~~for ~~2019~~Advanzeon Solution, Inc. ( the ~~changes~~“Company”). The ~~therein~~order ~~for~~granting the ~~three~~Plaintiff’s ~~and~~motion ~~six-month~~for ~~periods~~appointment ~~then~~of ~~ended~~a ~~and~~ receiver was issued in the ~~results~~Circuit Court of ~~operations~~the 13th Judicial Circuit in and for ~~the~~Hillsborough ~~three~~County ~~and~~Florida, ~~six~~Case number 12-~~month~~002570-Division ~~periods~~L. ~~ended~~The ~~June~~name ~~30,~~of ~~2020~~the ~~and~~receiver ~~2019~~is Burton W. Wiand.

~~The financial~~On ~~statements~~September ~~included~~7, in2020, the ~~Form~~Company ~~10-Q~~filed ~~are~~a ~~presented~~voluntary inpetition ~~accordance~~for relief ~~with~~under ~~the~~Chapter ~~requirements~~11 of the ~~Form~~United ~~and~~States doBankruptcy ~~not~~Code ~~include all~~in of the ~~disclosures~~United ~~required~~States byBankruptcy ~~accounting~~Court ~~principles~~for ~~general accepted in~~ the ~~United~~Middle ~~States~~District of ~~America. For additional information~~Florida, ~~reference~~Tampa isDivision, ~~made~~Case tonumber ~~the~~8:20-bk-6764. ~~Company's~~Also, ~~annual report~~ on ~~Form~~September ~~10-K~~7, ~~for~~2020, the ~~fiscal~~Company ~~year~~filed ~~ended~~a ~~December~~Notice ~~31,~~of ~~2019,~~Case ~~filed~~Under ~~April~~Chapter 9,11 ~~2020. The results~~ of ~~operations~~the United ~~for~~States ~~the~~Bankruptcy ~~three~~Code and ~~six-month~~Notice ~~periods~~of ~~ended~~Automatic ~~June~~Stay ~~30,~~with ~~2020~~the ~~and~~Circuit ~~2019~~Court ~~are~~of ~~not~~the ~~necessarily~~13th Judicial ~~indicative of operating~~District ~~results~~in and for ~~the~~Hillsborough ~~full~~County, ~~year~~Florida.

The Company will continue to operate its business as “debtor-in possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court.

In the opinion of management, the accompanying unaudited financial statements contain all adjustments necessary to present fairly the Company’s financial position as of December 31, 2019, the changes therein for the three and nine-month periods then ended and the results of operations for the three and nine-month periods ended September 30, 2020 and 2019.

The financial statements included in the Form 10-Q are presented in accordance with the requirements of the Form and do not include all of the disclosures required by accounting principles general accepted in the United States of America. For additional information, reference is made to the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2019, filed April 9, 2020. The results of operations for the three and nine-month periods ended September 30, 2020 and 2019 are not necessarily indicative of operating results for the full year.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Established in 1969, Advanzeon Solutions, Inc., (formerly Comprehensive Care Corp.) (“Advanzeon”, “we”, “Parent”, or the “Company”), through its wholly-owned subsidiary Pharmacy Value Management Solutions, Inc., and its wholly-owned subsidiaries during 2015, and partly in 2016, provided managed care services by acting as the administrator for certain administrative service agreements in the behavioral health and substance abuse fields. We primarily offered these services to commercial, Medicare, Medicaid, Children’s Health Insurance Program (“CHIP”) health plans, as well as self-insured companies. Our managed care operations consisted solely of servicing administrative service agreements. Starting in July of 2015, we implemented our comprehensive sleep apnea program, called “SleepMaster Solutions” ™. SleepMaster Solutions (“SMS”) utilizes an administrative system for the convenient identification/testing and therapy of Obstructive Sleep Apnea (“OSA”). We partnered with a national health care provider by initiating a sleep apnea wellness program whereby we screened, tested and when needed, offered treatment programs for treating this disorder. We also contracted with a union to treat its driver members. Beginning in 2017, our only business was our SMS sleep apnea program.

The Company has elected to not adopt the option available under United States generally accepted accounting principles (“GAAP”) to measure any eligible financial instruments or other items at fair market value at this time. Accordingly, the Company measures all of its assets and liabilities on the historical cost basis of accounting, except as otherwise required by GAAP.

Inter-company accounts and transactions have been eliminated in consolidation. Certain minor reclassifications of prior period amounts have been made to conform to the current period presentation.

Use of Estimates - The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts. Actual results could differ from these estimates. Estimates involved in the determination of an allowance for doubtful accounts receivable are considered by management as particularly susceptible to material change in the next year. Other significant estimates relate to stock-based compensation, warrants and beneficial conversion features.

Accounts Receivable - Accounts receivable is carried at its estimated collectible value. Since customer credit is generally extended on a short-term basis, accounts receivable does not bear interest and are uncollateralized. We manage credit risk and determine necessary allowances by evaluating customers’ credit worthiness before extending credit and periodically for collectability, based primarily on customers’ past credit history and current financial conditions and general economic conditions, results of prior collection efforts, the relative strength of our relationship therewith and, in the event of a dispute, its legal position and the estimated cost of proposed collection proceedings. Management has not established a policy for when to charge off uncollectible accounts receivable or to use external collection agencies and makes such decisions on a case-by-case basis. The maximum losses that the Company would incur if a customer failed to pay would be limited to the carrying value of the receivable.

Outside Service Company - During the applicable period, the Company, from time to time, utilized the services of Administrative Service Company, Inc., an independent corporate entity, for purposes of paying its account payables, including payroll. The CEO of the Company also served as President of Administrative Service Company, Inc. No fees were paid to Administrative Service Company, nor its principals, officers or directors. Administrative Service Company accounts to the Company, monthly, for all funds it receives and disburses.

Revenue Recognition - In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 606, "“Revenue from Contracts with Customers"”, the Company recognizes revenue when obligations under the terms of a contract with the customer are satisfied. Generally, this occurs upon shipment of the CPAP to their customer or when the test is performed.

Property and Equipment - Property and equipment (Note 4) is stated at cost less accumulated depreciation. Depreciation and amortization are computed using the straight-line method over the estimated useful lives ranging from 2 to 12 years.

Leasehold Improvement - Leasehold improvement (Note 5) is stated at cost less accumulated amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives ranging from 2 to 12 years. Leasehold improvements are amortized over the shorter of the lease term or the asset’s useful life.

Fair Value Measurements - The carrying amounts of cash, accounts receivable and accounts payable approximate their estimated fair value due to the short-term nature of these instruments. Since our other financial liabilities are not traded in an open market, we generally use a present value technique, which is a level 3 input, as defined in GAAP, to measure the estimated fair value of these financial instruments, except for valuing stock options and warrants (see below). The rate used for discounting expected cash flows is a risk-free rate adjusted for systematic and unsystematic risk.

The carrying amounts of long-term debt and estimated fair values of the attached warrants at ~~June~~September 30, 2020 and December 31, 2019 are as follows:

	June 30, 2020				December 31, 2019
	September 30, 2020				December 31, 2019
			Estimated				Estimated
			Fair Value of				Fair Value of
	Carrying		Attached		Carrying		Attached
	Amount		Warrants		Amount		Warrants
Convertible promissory notes	$	5,~~956~~962,~~533~~713	$	—	$	7,564,173	$	—
Short term notes payable		3,215,803		—		4,788,016		—
Loan payable related party		~~102~~147,~~229~~761		—		342,670		—
PPP Loan		1,243,840		—		—		—
	$	10,~~518~~570,~~405~~117	$	—	$	12,694,859	$	—

During the ~~six~~nine-month period ended ~~June~~ September 30, 2020, there have been 1012 additional convertible notes issued totaling $~~547~~628,~~360~~540. During the ~~six~~ nine-month period ended ~~June~~ September 30, 2020, 5356 convertible notes totaling $3,~~727~~802,213 plus accrued interest was converted to stock.

Cost of Revenues - Costs of services consist of supplies and operating expenses. Supplies are recognized in the period in which a patient receives the supplies.

Right of Use Assets and Lease Liabilities - During the quarter ended March 31, 2019, the Company implemented Accounting Standards Update 2016-02, Leases. Under the new guidance, a lessee must record a liability for lease payments (referred to as the lease liability) and an asset for the right to use the leased asset during the lease term (referred to at the right of use asset) for all leases, regardless of whether they are designated as finance or operating leases. This election requires the lessee to recognize lease expense on a straight-line basis over the lease term. The right of use assets and corresponding right of use liabilities have been recorded using the present value of the leases. See Notes 10 and 11 within the financial statement for additional disclosure on leases.

Income Taxes - We are subject to the income tax jurisdictions of the U.S. and multiple state tax jurisdictions. However, our provisions for income taxes for 2020 and 2019 include only state income taxes.

Management has evaluated our tax positions taken or to be taken on income tax returns that remain subject to examination (i.e., tax years 2017 and thereafter federally), and has concluded that there have been no uncertain tax positions (as defined in GAAP) taken that require recognition or disclosure in the consolidated financial statements. In the event of any income tax-related interest or penalties are incurred, they would be included in general and administrative expense.

Concentration of Credit Risk - The Company maintains its cash and cash equivalents with a financial institution which management believes to be of high credit quality. Their accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 in coverage. The Company had an uninsured cash balance of $595,340 as of ~~June~~September 30, 2020 and no uninsured cash balances as of December 31, 2019.

Stock Options and Warrants - We grant stock options and warrants to our employees, non-employee directors, note holders and certain consultants allowing them to purchase our common stock pursuant to approved terms. The estimated value of the warrants issued with debt instruments is recorded as a discount on notes payable and amortized as interest expense over the term of the notes using the effective interest method.

3. CURRENT ASSETS

Cash and Restricted Cash - On April 23, 2020, the Company’s wholly owned subsidiary, Pharmacy Value Management Solutions, Inc. (‘PVMS”) received a loan in the principal amount of $1,243,840 from Mechanics Bank (the “Bank”) pursuant to the Paycheck Protection Program “PPP”. On May 22, 2020, the Bank notified PVMS that the loan was in default as a result of false statements made in the loan application. PVMS disputes the Bank’s claim and believes that it made no false statements in it'’s PPP loan application. The statements relate to the number of employees and the monthly payroll amounts. As a result, PVMS’ account with Mechanics Bank has been frozen with a balance of $845,340. Both PVMS and the Bank are seeking guidance from the Small Business Administration as to how to resolve this dispute. Until resolved, it is likely that this account will remain frozen.

Cash and restricted cash consists of the following at ~~June~~September 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
	September 30, 2020		December 31, 2019
Cash	$	~~145~~35,~~915~~566	$	69,327
Restricted Cash		845,340		—
Total cash and restricted cash shown in the
consolidated statement of cash flows	$	~~991~~880,~~255~~906	$	69,327

Other current assets consists of the following at ~~June~~September 30, 2020 and December 31, 2019:

	June 30, 2020		December 31, 2019
	September 30, 2020		December 31, 2019
Loans to others	$	34,406	$	42,676
Due from escrow account	$	477	$	152,263
Loans to others		33,849		42,676
Security and lease deposits		3,500		3,500
Capitalized portion of lease		~~1,237~~952		1,808
Prepaid expenses		~~288~~142,~~487~~946		452,953
Miscellaneous receivable		~~329~~334,~~395~~514		325,660
Other current asset	$	~~657~~516,~~025~~238	$	~~826~~978,~~597~~860

4. PROPERTY AND EQUIPMENT

Property and equipment, net, consists of the following at ~~June~~September 30, 2020 and December 31, 2019:

	June 30, 2020			December 31, 2019
	September 30, 2020			December 31, 2019
Property and equipment	$	6,616		$	1,549
Less accumulated depreciation		(~~933~~1,244	)		(310	)
Property and equipment - net	$	5,~~683~~372		$	1,239

Depreciation expense for the ~~six~~nine-month periods ended ~~June~~September 30, 2020 and 2019 is $~~623~~934 and $~~141~~225, respectively. A laptop was acquired in January of 2020.

5. LEASEHOLD IMPROVEMENT

Leasehold improvement, net, consists of the following at ~~June~~ September 30, 2020 and December 31, 2019:

	June 30, 2020			December 31, 2019
	September 30, 2020			December 31, 2019
Leasehold improvements	$	2,992		$	2,992
Less accumulated amortization		(2,992	)		(2,992	)
Leasehold improvements - net	$	—		$	—

Amortization expense for the ~~six~~nine-month periods ended ~~June~~ September 30, 2020 and 2019 is $0 and $299, respectively.

6. RELATED PARTY LOANS PAYABLE

The Company has received financing from Management of the Company as well as from members of our Board of Directors. These individuals are deemed to be related parties to the Company and their indebtedness must be disclosed separately.

As of ~~June~~September 30, 2020 and December 31, 2019, there are the following related party notes payable:

	June 30, 2020		December 31, 2019
	September 30, 2020		December 31, 2019
Related party loans payable	$	~~102~~147,~~229~~761	$	342,670

7. DEBT

As of ~~June~~September 30, 2020 and December 31, 2019, the balance was as follows:

	June 30, 2020		December 31, 2019
	September 30, 2020		December 31, 2019
Notes payable	$	10,~~416~~422,~~176~~356	$	12,352,189

During the ~~six~~nine-month period ended ~~June~~ September 30, 2020, there have been 1012 additional convertible~~-promissory~~ notes issued totaling $~~547~~628,~~360~~540. There have been 5356 convertible~~-promissory~~ notes totaling $3,~~727~~802,213 converted to ~~39,652,283 shares of common~~ stock.

On April 23, 2020, the Company’s wholly owned subsidiary, Pharmacy Value Management Solutions, Inc. (‘PVMS”) received a loan in the principal amount of $1,243,840 from Mechanics Bank (the “Bank”) pursuant to the PPP. On May 22, 2020, the Bank notified PVMS that the loan was in default as a result of false statements made in the loan application. PVMS disputes the Bank’s claim and believes that it made no false statements in its PPP loan application. The statements relate to the number of employees and the monthly payroll amounts. As a result, PVMS’ account with Mechanics Bank has been frozen with a balance of $845,340. Both PVMS and the Bank are seeking guidance from the Small Business Administration as to how to resolve this dispute. Until resolved, it is likely that this account will remain frozen.

Break-out of debt between the parent company and our subsidiary PVMS is as follows:

	June 30, 2020		December 31, 2019
	September 30, 2020		December 31, 2019
Advanzeon parent	$	3,~~381~~437,~~163~~343	$	5,010,016
PVMS		76,~~035~~985,013		7,342,173
	$	10,~~416~~422,~~176~~356	$	12,352,189

At Advanzeon, the total notes issued year-to-date and their dollar values were as follows:

	June 30, 2020		December 31, 2019
	September 30, 2020		December 31, 2019
Number of notes issued		23		—
Dollar value	$	~~165~~221,~~360~~540	$	—

All debts issued during the ~~six~~nine-month period ended ~~June~~September 30, 2020 are short-term in nature and have a stated interest rate of 10%.

At PVMS, the total of notes issued year-to-date and their dollar values were as follows:

	June 30, 2020		December 31, 2019
	September 30, 2020		December 31, 2019
Number of notes issued		89		51
Dollar value	$	~~382~~407,000	$	2,289,250

All debt is short-term in nature, one-year maturity date. All debt issued has a stated interest rate of 12%.

8. CONTINGENT LIABILITY

Contingent liability consisted of 3 items:

1. A lawsuit against the Company for $450,000 from the son of a deceased promissory note holder. This matter has been dismissed twice by the judge but is ongoing due to appeals. The case has been dormant over a year. The Court has not dismissed it for lack of prosecution yet. The Court does this on its own motion and because of COVID, it is not doing this at this time. 2. Interest payable in the amount of $171,247 to the same person listed in (1). This interest is related to the lawsuit referenced in (1). 3. Advanzeon won a decision on a court case against Universal Healthcare. The attorney’s fees relating to this matter total $21,412. This fee will be paid out of the proceeds of the case when collected.

2. Interest payable in the amount of $171,247 to the same person listed in (1). This interest is related to the lawsuit referenced in (1).

3. Advanzeon won a decision on a court case against Universal Healthcare. The attorney's fees relating to this matter total $21,412. This fee will be paid out of the proceeds of the case when collected.

As of ~~June~~September 30, 2020 and December 31, 2019, the balance of this indebtedness is as follows:

	June 30, 2020		December 31, 2019
	September 30, 2020		December 31, 2019
Disputed note payable	$	450,000	$	450,000
Disputed interest payable		171,247		171,247
Pending attorney fees		21,412		21,412
Total contingent liability	$	642,659	$	642,659

9. OTHER ACCRUED LIABILITIES

As of ~~June~~September 30, 2020 and December 31, 2019, the balance of other accrued liabilities is as follows:

	June 30, 2020		December 31, 2019
	September 30, 2020		December 31, 2019
Management compensation	$	8,~~907~~973,~~258~~353	$	8,873,802
Accrued interest non-related party		45,~~760~~032,~~728~~646		5,956,368
Board of Director fees		37,500		1,050,000
State fees		—		2,800
Payroll liabilities		14,~~047~~771		—
Other accrued liabilities		2235,~~659~~222		8,817
Total other accrued debt	$	1314,~~742~~093,~~192~~492	$	15,891,787

10. RIGHT OF USE ASSETS

The Company entered into two leases, one for office space and one for an automobile lease that are classified as right of use assets and lease liabilities. The Company pays the lease payments on a residential unit in California that is used as an office/residential unit for certain of its marketing personnel. The lease is on a month-to month basis. The Company has occupied this unit for the past approximately 1-1/2 year period and intends to do so for the foreseeable future. The lease for the Company’s office space expire in June 2022.The lease for the automobile expires in June 2021.As the implicit interest rate is not readily identifiable in the leases, the Company calculated the present value of the leases using the average commercial real estate interest rate of 5.50% at the commencement of the office leases and the interest of 2.99% for the automobile lease. Applying the commercial rate, the Company calculated the present value of $339,833 for the office leases and $29,037 for the automobile leasing that are being amortized over the life of the leases.

As of ~~June~~September 30, 2020, the right of use assets associated with future operating leases are as follows:

Total present value of right of use assets
Total present value of right of use assets under lease agreements	$	368,870
under lease agreements	$	368,870
Amortization of right of use assets		(85,992	)
Amortization of right of use assets		(53,419	)
Total right of use assets as of September 30, 2020	$	282,878
Total right of use assets as of June 30, 2020	$	315,451

Total amortization expense related to the right of use assets under the lease agreements was $54,660 and $2562,~~579~~135 for the ~~six~~nine-month periods ended ~~June~~September 30, 2020 and 2019, respectively.

11. RIGHT OF USE LEASE LIABILITIES

As disclosed in Note 10, the Company entered into two leases for office space prior to the quarter ended ~~June~~September 30, 2020 that are classified as right of use assets and lease liabilities.

As of ~~June~~September 30, 2020, the lease liabilities associated with future payments due under the leases are as follows:

Total present value of future lease payments	$	368,870
Principal payments made as of the six month period ended June 30, 2020		(53,419	)
Principal payments made as of the nine month period ended September 30, 2020		(85,992	)
Total right of use lease liabilities as of June 30, 2020	$	315,451
Total right of use lease liabilities as of September 30, 2020	$	282,878

The following is a schedule of future minimum lease payments under the right of use lease agreements together with the present value of the net minimum lease payments as of September ~~June~~ 30, 2020:

Total future minimum lease payments	$	~~336~~299,~~671~~967
Less present value discount		2117,~~220~~089
Total right of use lease liabilities as of June 30, 2020		315,451
Total right of use lease liabilities as of September 30, 2020		282,878
Less current portion due within one year		~~136~~137,~~230~~992
Long-term right of use liabilities	$	~~179~~144,~~221~~886

Total maturities of lease liabilities as of September ~~June~~ 30, 2020 are as follows:

		Total future	~~Total future~~
		minimum lease	~~minimum lease~~		Present value	~~Present value~~		Right of use	~~Right of use~~
		payments	~~payments~~		discount	~~discount~~		lease liabilities	~~lease liabilities~~
2021	~~2021~~	$	$150,041	~~150,103~~	$	$12,049	~~13,873~~	$	$137,992	~~136,230~~
2022	~~2022~~		121,926	~~146,568~~		4,534	~~6,358~~		117,392	~~140,210~~
2023	~~2023~~		28,000	~~40,000~~		506	~~989~~		27,494	~~39,011~~
		$	$299,967	~~336,671~~	$	$17,089	~~21,220~~	$	$282,878	~~315,451~~

12. COMMON STOCK

During the ~~six~~nine-month period ended ~~June~~September 30, 2020, the Company issued 45,~~089~~855,~~783~~182 shares of its common stock as follows:

On April 01, 2020, the Company issued 3,262,500 shares of its common stock to a board of director member who elected to convert director’s fees and salary totaling $652,500. The stock was issued at $0.20 per share.

On April 01, 2020, the Company issued 1,087,500 shares of its common stock to a board of director member who elected to convert director’s fees and salary totaling $217,500. The stock was issued at $0.20 per share.

On April 21, 2020, the Company issued 14,584,350 shares of its common stock to existing note holders who elected to convert promissory notes plus accrued and unpaid interest totaling $2,916,869. The stock was issued at $0.20 per share.

On April 21, 2020, the Company issued 1,327,252 shares of its common stock to an existing note holder who elected to convert promissory notes plus accrued and unpaid interest totaling $265,450. The stock was issued at $0.20 per share.

On April 21, 2020, the Company issued 2,156,515 shares of its common stock to an existing note holder who elected to convert promissory notes plus accrued and unpaid interest totaling $431,303. The stock was issued at $0.20 per share.

On May 15, 2020, the Company issued 1,263,745 shares of its common stock to an existing note holder who elected to convert promissory notes plus accrued and unpaid interest totaling $139,012. The stock was issued at $0.11 per share.

On May 15, 2020, the Company issued 4,284,565 shares of its common stock to an existing note holder who elected to convert promissory notes plus accrued and unpaid interest totaling $471,302. The stock was issued at $0.11 per share.

On May 15, 2020, the Company issued 7,210,168 shares of its common stock to an existing note holder who elected to convert promissory notes plus accrued and unpaid interest totaling $793,118. The stock was issued at $0.11 per share.

On May 18, 2020, the Company issued 700,751 shares of its common stock to an existing note holder who elected to convert promissory notes plus accrued and unpaid interest totaling $77,083. The stock was issued at $0.11 per share.

On May 21, 2020, the Company issued 502,434 shares of its common stock to an existing note holder who elected to convert promissory notes plus accrued and unpaid interest totaling $55,268. The stock was issued at $0.11 per share.

On May 25, 2020, the Company issued 319,627 shares of its common stock to an existing note holder who elected to convert promissory notes plus accrued and unpaid interest totaling $35,159. The stock was issued at $0.11 per share.

On May 25, 2020, the Company issued 333,824 shares of its common stock to an existing note holder who elected to convert promissory notes plus accrued and unpaid interest totaling $36,721. The stock was issued at $0.11 per share.

On May 26, 2020, the Company issued 781,206 shares of its common stock to an existing note holder who elected to convert promissory notes plus accrued and unpaid interest totaling $85,933. The stock was issued at $0.11 per share.

On May 28, 2020, the Company issued 884,555 shares of its common stock to an existing note holder who elected to convert promissory notes plus accrued and unpaid interest totaling $97,301. The stock was issued at $0.11 per share.

On May 29, 2020, the Company issued 937,116 shares of its common stock to an existing note holder who elected to convert promissory notes plus accrued and unpaid interest totaling $103,083. The stock was issued at $0.11 per share.

On June 1, 2020, the Company issued 1,024,189 shares of its common stock to an existing note holder who elected to convert promissory notes plus accrued and unpaid interest totaling $112,661. The stocks was issued at $0.11 per share.

On June 05, 2020, the Company issued 668,797 shares of its common stock to an existing note holder who elected to convert promissory notes plus accrued and unpaid interest totaling $73,568. The stock was issued at $0.11 per share.

On June 05, 2020, the Company issued 603,987 shares of its common stock to an existing note holder who elected to convert promissory notes plus accrued and unpaid interest totaling $66,439. The stock was issued at $0.11 per share.

On June 12, 2020, the Company issued 1,564,245 shares of its common stock to an existing note holder who elected to convert promissory notes plus accrued and unpaid interest totaling $172,067. The stock was issued at $0.11 per share.

On June 18, 2020, the Company issued 504,957 shares of its common stock to an existing note holder who elected to convert promissory notes plus accrued and unpaid interest totaling $55,545. The stock was issued at $0.11 per share.

~~During the~~On ~~six-month~~July ~~period ended June 30~~02, ~~2019~~2020, the Company issued ~~700~~765,~~000~~ 399 shares of its common stock asto ~~follows:~~an existing note holder who elected to convert promissory notes plus accrued and unpaid interest totaling $84,194. The stock was issued at $0.11 per share.

During the nine-month period ended September 30, 2019, the Company issued 700,000 shares of its common stock as follows:

On March 21, 2019, the Company issued 200,000 shares of its common stock to its Securities Exchange Commission counsel, who elected to take common stock in the Company as partial payment of its legal fees. The total value shares were valued at $0.08 per share on the total value of $16,000.

Additionally, on March 29, 2019, the Company issued 500,000 shares of its common stock to an existing shareholder and warrant holder, who elected to exercise his warrants to purchase 500,000 shares of the Company'’s common stock for $15,000. ~~The warrants were issued during May of 2017 for $0.03 per share.~~

The warrants were issued during May of 2017 for $0.03 per share.

13. LEGAL PROCEEDINGS

The Company previously reported that the litigation between Rotech Healthcare, Inc. and Pharmacy Value Management Solutions, Inc. settled. The Company rejected the draft settlement terms and continues to aggressively defend this litigation. A final judgment in favor of the Plaintiff was entered on 02/01/2021 in the amount of $130,355.39. On 03/03/2021 the Company filed a Notice of Appeal of the judgment with the Second District Court of Appeal. The appeal is pending.

Except as disclosed above and in ~~Item~~Part II Item 1, all of the legal proceedings for the ~~six~~nine-month period ended ~~June~~September 30, 2020, are disclosed in our annual report on Form10-K filed on April 9, 2020.

14. SUBSEQUENT EVENTS

In accordance with ASC Topic 855, “Subsequent Events”, the Company evaluated subsequent events through ~~August~~November 199, 2020, the date these financial statements were available to be issued. During its evaluation, the following subsequent events were identified:

Issuance of debt and warrants

Subsequent to the balance sheet date, the Company has issued $5660,~~180~~000 of convertible-promissory notes. All of the debt matures in 2021 and has a stated interest rate of 2212% and is unsecured. Concurrent with the issuance of debt, the Company has issued ~~300~~50,000 warrants at an average exercise price of $0.2504. At the time of issuance, all warrants had a three or five year term.

Stock issued for conversion of debt and accrued interest

The Company issued 765,399 shares of common stock for the conversion of debt and accrued interest. The total debt and accrued interest converted was $84,194 or $0.11 per share.

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

General

The following information should be read in conjunction with the financial statements and notes thereto and in conjunction with Managements’ Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019.

This report includes forward-looking statements, the realization of which may be affected by certain important factors discussed previously above under Item 1A, “Risk Factors.”

Overview

The Company through its wholly owned subsidiary Pharmacy Value Management Solutions, Inc. administers and operates a medically driven sleep apnea program branded SleepMaster Solutions™ (“SMS”). Management believes that SMS is the largest provider of these combined services in the nation. We are in all 50 states and provide a turnkey solution designed to effectively keep drivers on the road with no down time, compliant with DOT regulations, improve their health, and significantly decrease legal liability risk for the employer. We are vertically integrated, and we provide a “Program” of services that addresses all the needs of a corporate transportation system, union or other driver-related organizations. We believe we are the only company capable of providing the full range of needed services in a timely manner.

Our services start with the identification of the target population and the potential risk the client currently has. We can do this through our SMS Program, which includes the ability to screen every driver to identify if signs and symptoms of sleep apnea are present. We can then take this data and provide the employer with a list of those drivers that should be tested and the statistical likelihood of the percentage of those drivers who will test positive for obstructive sleep apnea (OSA). Together with the employer/union, SMS provides a realistic time frame, actual total cost, and process for testing all drivers who need to be tested. For those drivers testing positive for OSA, we then provide the appropriate treatment such that the driver will meet the DOT requirements and remain on the road. We monitor 365 days per year driver’s usage of the treatment device according to DOT standards and we report that usage to all stakeholders as required/permitted. We utilize mathematical algorithms to determine if the driver is predicatively meeting the annual DOT requirements for usage. Using those predictive algorithms, we reach out to those drivers and provide case management, encouragement designed to solve problems such that the driver increases usage, if necessary, and remains compliant.

SMS constructed its model based upon the foregoing principles. The SMS Program includes all processes attended in sleep apnea screening, testing, treatment, monitoring and overall management of commercial drivers’ as well as their employers’ needs. We have successfully established relationships with national health care clinic providers, all with certified medical examiner (“CME”) status. These clinics total almost 1,000 throughout the U.S. We also have both formal and informal relationships with employers; municipalities; a significant veteran’s group; union and non-union driving organizations; suppliers of home sleep testing equipment and a variety of OSA treatment devices; and, a national network of telemedicine sleep specialists covering all 50 states. We have an internal medical team for governance and protocol purposes and a customer service department that interfaces directly with our drivers. We also have a marketing team that regularly interfaces with our existing accounts and markets our services to potential new accounts. Our services are performed utilizing a best medical practices model and an efficient, cost-effective delivery system. We obtain the required equipment on a per order basis from a durable medical equipment distributor.

Revenue is recognized when billed, which is approximately when the testing service is performed, or CPAP machine is shipped.

During the three-month period ending ~~June~~ September 30, 2020, the majority of our revenue ~~was~~continued to be received from patient referrals from only certain of the clinics operated by Concentra Health Services. During this period and as a result of the Coronavirus pandemic, the ~~Department of~~Federal ~~Transportation~~Motor Carrier Safety Administration (~~DOT~~“FMCSA”), which had previously suspended the requirement that interstate commercial drivers have a prescribed DOT medical exam from a ~~DOT~~ certified medical examiner, extended the ~~DOT~~ medical exam suspension tofrom ~~expire~~ September 30, 2020 until the end of the year. This action by the ~~DOT~~FMCSA, coupled with the effect of the pandemic, caused a significant number of clinics that we rely upon for referrals to either continue to be closed, close anew or operate with reduced staffing and reduced capacity. All of the foregoing resulted in fewer patients. Additionally, many commercial drivers, who, but for the aforesaid medical exam suspension, would have gone to the Concentra clinics for their required ~~DOT~~ medical exam, ~~elected~~continue to elect to wait until the suspension expires. All of those events materially reduced our referral resources. We did continue to receive revenue from certain Concentra referrals, other clinic referrals and some of our in-house ~~account~~accounts, such as PG&E, the Veteran’s organization with whom we contract, and others, but this patient flow was materially reduced, as well. ~~Our recently announced launch of our CoreChoice account (April 29~~However, ~~2020), scheduled to launch this period, did not launch as a result of the pandemic. During this period,~~ we ~~successfully~~expect ~~added new accounts which, principally due~~ to ~~the pandemic, have not yet launched. However, they are in the process of preparing to do so. As clinics reopen and staff returns, management expects to~~ see increased revenue from these ~~new~~ accounts. Wein ~~continue to experience~~ the ~~effect~~fourth ~~of these closures/reduced staffing and cannot predict when either our referral sources or our own operation will begin to normalize, resulting in more positive financial results~~quarter. ~~However, we continue to aggressively seek new accounts and work with our existing accounts to achieve increased patient flow.~~

~~Sources~~During this period, we added a companion product to our CPAP treatment program, a branded sanitizer device. We also have beta tested our WatchPat One device. The WatchPat One device shortens the turnaround time for our home sleep test results by as much as five days. As we anticipate a large surge of ~~Revenue~~drivers going forward, we believe this shortened turnaround time will be a significant, positive decision for our current clients and our new clients to use our services. During the period we continued with our beta testing program with Sleep Cycle. The results have been very positive and we anticipate a full-fledged joint marketing launch to Sleep Cycle customers by mid-year 2021.

~~Three-month~~We continued our effort ~~periods~~to ~~ended~~increase ~~June~~our 30presence with various unions. We successfully entered into an agreement with a large group of Teamsters, ~~2020~~whose healthcare benefits are substantially paid for by the group. We also established a relationship with a large third-party payer for a number of other union trust funds and ~~2019~~labor unions. Their main account is a large national delivery service. We expect to see revenue from this relationship in the fourth quarter. As clinics reopen we expect to see increased revenue from this source and from our new and existing accounts in the fourth quarter. Other relationships that we have established are not expected to come online until the first part of 2021.

~~A quantitative~~Sources ~~summary~~ of ~~our revenues by source category for the three-month periods ended June 30, 2020 and 2019:~~Revenue

			2020				2019				Change
OSA- related		$	103,444			$	90,453			$	12,991

Three-month periods ended September 30, 2020 and 2019

~~Results~~ A quantitative summary of ~~Operations~~our revenues by source category for the three-month periods ended September 30, 2020 and 2019:

OSA services increased to $103,444 in 2020 from $90,453 in 2019. The increase was primarily the result of the Concentra account. Last year, on May 14, 2019, we reached an agreement with Concentra whereby Concentra engaged the Company, and the Company accepted the engagement, to serve as one of Concentra’s preferred national sleep apnea services provider. The launch was initiated during the fourth quarter of 2019.

	2020		2019		Change

OSA- related	$	127,070	$	68,173	$	58,897

~~While there~~Results ~~was an increase in OSA services, the increase would have been greater without the clinics having to shut down due to the COVID-19 pandemic. As demonstrated in the first quarter~~ of 2020, OSA services increased by $59,625 than in the comparable period of 2019. With the clinics having to be closed during the three months period ended June 30, 2020 due to the COVID-19 pandemic, there was only an increase of $12,990.Operations

~~Cost~~OSA ~~of revenues~~services ~~decreased~~increased to $65127,~~000~~070 in 2020 from $6668,~~157~~173 in 2019. InThe ~~2019,~~increase was primarily the ~~cost~~result ~~allocation~~of ~~was~~the ~~changed~~Concentra toaccount. ~~reflect~~Last ~~the~~year, ~~cost~~on ~~and~~May ~~sales~~14, 2019, we reached an inagreement ~~the~~with ~~same~~Concentra ~~month.~~whereby ~~This~~Concentra ~~caused~~engaged ~~two~~the ~~months’~~Company, ~~worth~~and ofthe ~~charges~~Company inaccepted the ~~month~~engagement, to serve as one of ~~April~~Concentra’s preferred ~~2019~~national sleep apnea services provider. ~~April~~The 1,launch ~~2019~~was ~~and~~initiated ~~April~~during ~~30,~~the fourth quarter of 2019.

~~General~~Cost of revenues increased to $69,599 in 2020 ~~and~~from ~~administrative~~$2,394 ~~expense~~in 2019. In 2019, the Company received a credit of $34,417 as a settlement.

General and administrative expense ~~in total for the three month periods ended June 30, 2020 and 2019 was as follows:~~

2020	$	715,397
2019		416,039
Change	$	299,358
Percentage Change		71.95	%

General and administrative expense in total for the three month periods ended September 30, 2020 and 2019 was as follows:

2020	$	620,126
2019		428,077
Change	$	192,049
Percentage Change		44.86	%

We evaluate expenses at the Parent company level as well as at our PVMS subsidiary. Expenses at the Parent company level include overhead and the cost of being a public entity. Expenses at PVMS are solely related to the OSA services segment. A breakdown of these expenses for the three month periods ended June 30, 2020 and 2019 is as follows:18

	2020		2019		Change		Percent Change
Parent	$	296,036	$	156,686	$	139,350		88.94	%
PVMS		419,361		259,353		160,008		61.70	%
Total	$	715,397	$	416,039	$	299,358		71.95	%

Parent Company Level

	2020		2019		Change			Percent Change

Parent (Debtor-In-Possession)	$	359,887	$	118,096	$	241,791			204.74	%
PVMS		260,239		309,981		(49,742	)		(16.05	)%

Total	$	620,126	$	428,077	$	192,049			44.86	%

	2020			2019		Change			Percent Change
Professional fees	$	243,494		$	86,804	$	156,690			180.51	%
Travel expense		—			815		(815	)		-100.00	%
Board of Directors fees		57,500			37,500		20,000			53.33	%
Office supplies		417			287		130			45.30	%
Rent expense		(23,181	)		25,448		(48,629	)		-191.09	%
Other		17,806			5,832		11,974			205.33	%
Total G & A	$	296,036		$	156,686	$	139,350			88.94	%

Parent Company Level (Debtor-In-Possession)

Explanations of variations by line item follow:

	2020		2019		Change			Percent Change

Professional fees	$	266,090	$	34,329	$	231,761			675.12	%
Travel expense		—		—		—			—	%
Board of Directors fees		—		37,500		(37,500	)		(100	)%
Office supplies		52		16		36			225	%
Rent expense		—		25,255		(25,255	)		(100	)%
Other		93,745		20,996		72,749			346.49	%

Total G & A	$	359,887	$	118,096	$	241,791			204.74	%

~~Professional fees~~Explanations ~~increased by $156,690. The increase is mainly due to new consulting service expenses in the total~~ of ~~$118,250~~variations ~~and~~by anline ~~increase of~~item ~~$43,827 in legal fees in the three-month period ended June 30, 2020 compared to the three month period ended June 30, 2019.~~follow:

~~Travel expense~~Professional ~~decreased~~fees increased by $~~815~~231,761. There is an increase in consulting service expenses of $118,250 due to ~~due~~new consulting service expense in the three-month period ended September 30, 2020 compared to the ~~COVID~~three-19month ~~pandemic~~period ended September 30, 2019. ~~Many~~Legal ~~clinics~~fees ~~have~~increased ~~been~~by ~~closed~~$77,647 in order to continue with various lawsuits and ~~those~~with ~~that~~the ~~are~~bankruptcy ~~open~~proceeding. ~~have~~Accounting ~~reduced~~Fees increased by $22,869 due to services for special projects, ~~staffs~~some of which are related to the bankruptcy proceeding. Audit fees and wefilings ~~have~~increased ~~been~~by ~~requested~~approximately to$4,000 ~~not~~due ~~conduct~~to ~~any~~an inamended filing ~~person~~of ~~visits~~it’s 10K.

~~Board of~~Travel ~~Directors~~expense ~~fees~~stayed ~~increased~~relatively bythe ~~$20,000 due to an additional $20,000 paid to a Board of director member~~same.

~~Rent expense~~Board of Directors fees decreased by 48$37,~~629~~500. As ~~due to office lease moving to subsidiary level as~~ of ~~January~~July 011, 2020., ~~The~~the ~~same~~Company ~~will~~has ~~show~~stopped aspaying anBoard ~~increase on~~of ~~the~~Director ~~subsidiary level~~fees.

~~Other general~~Rent ~~and administrative~~ expense ~~increased~~decreased by ~~$11~~25,~~974.~~255 ~~This increase was~~ due to aoffice lease ~~new~~moving ~~D&O~~to ~~Insurance~~subsidiary ~~expense~~level as of ~~$14~~January 01,~~205~~ ~~while other~~2020. ~~miscellaneous~~The ~~items~~same ~~decreased~~will byshow ~~$1,421~~as an increase on the subsidiary level.

19Other general and administrative expense increased by $72,749. This increase is mainly due to an increase in payroll related expenses of $99,551. The Company accrued CEO wages in the amount of $66,095 during the three-month period ended September 30, 2020 and the second quarter’s accrued CEO wages of $33,456 was moved from subsidiary level to parent level. The same will show as an decrease on the subsidiary level. TCA commissions decreased $24,013 due to moving the expense to subsidiary level. The same will show as an increase on the subsidiary level.

~~PVMS Subsidiary Level~~19

	2020		2019		Change			Percent Change
Payroll related	$	243,871	$	110,167	$	133,704			121.36	%
Travel and related expense		9,059		51,897		(42,838	)		-82.54	%
Professional fees		57,265		39,250		18,015			45.90	%
Marketing costs		17,758		9,729		8,029			82.53	%
Dues and subscriptions		27		200		(173	)		-86.50	%
Office supplies		1,135		8,718		(7,583	)		-86.98	%
Rent expense		54,096		12,452		41,644			334.44	%
Other		36,150		26,940		9,210			34.19	%
Total G & A	$	419,361	$	259,353	$	160,008			61.70	%

PVMS Subsidiary Level

Explanations of variations by line item follow:

	2020		2019		Change			Percent Change

Payroll related	$	127,167	$	129,457	$	(2,290	)		(1.77	)%
Travel and related expense		5,834		60,048		(54,214	)		(90.28	)%
Professional fees		24,745		53,454		(28,709	)		(53.71	)%
Marketing costs		25,685		16,511		9,174			55.56	%
Dues and subscriptions		211		200		11			5.50	%
Office supplies		1,627		13,191		(11,564	)		(87.67	)%
Rent expense		30,115		12,941		17,174			132.71	%
Other		44,855		24,179		20,676			85.51	%

Total G & A	$	260,239	$	309,981	$	(49,742	)		(16.05	)%

~~Payroll related~~Explanations expenses increased $133,704. The company hired 4 employees in the three months ended June 30, 2020 that were not included in the comparable period in 2019. The Company paid our CEO $32,699 and accrued wages in the amount of ~~$33,456~~variations ~~during~~by ~~the~~line ~~three months~~item ~~ended June 30, 2020.~~follow:

~~Travel expense~~Payroll related expenses decreased by $422,~~838~~290. The ~~due~~second toquarter ~~due~~accrued CEO wages of $33,456 was moved to the ~~COVID-19~~parent ~~pandemic~~level. ~~Many~~The ~~clinics~~same ~~have~~will ~~been~~show ~~closed~~as ~~and~~an ~~those~~increase ~~that~~on ~~are~~the ~~open~~parent level. ~~have~~The ~~reduced staffs~~company ~~and~~had we4 ~~have~~employees ~~been~~in ~~requested~~the tothree-month ~~not~~period ~~conduct~~ended ~~any~~September 30, 2020 that were not included in ~~person~~the ~~visits~~comparable period in 2019.

~~Professional Fees~~Travel ~~increased~~expense bydecreased ~~$18,015. The increase is mainly due to an increase in accounting fees~~ by $2554,~~000~~214 due to ~~services~~the ~~for~~COVID-19 ~~special projects~~pandemic. ~~There~~Many ~~was~~clinics ahave ~~decrease~~been inclosed ~~legal~~and ~~fees~~those bythat ~~$13,485.~~are ~~The~~open ~~Company~~have noreduced ~~longer~~staffs ~~used~~and awe ~~law~~have ~~firm~~been ~~in the three months ended June~~requested ~~30,~~to ~~2020~~not ~~that~~conduct ~~were~~any ~~used~~ in ~~the~~person ~~comparable period in 2019~~visits.

~~Marketing costs~~Professional ~~increased~~fees decreased by $828,~~029~~709. The decrease ~~company~~is ~~hired~~mainly andue ~~advertising~~to ~~firm in~~ the ~~3rd~~Company ~~quarter~~no oflonger ~~2019~~using to2 ~~work~~consultants onin the ~~company's~~three-month ~~website~~period ~~and other~~ended ~~marketing~~September ~~responsibilities~~30, ~~and~~2020 isthat ~~still~~were used ~~with~~in the ~~company~~comparable asperiod ofin ~~June 30, 2020~~2019.

~~Office supplies~~Marketing ~~decreased~~costs increased by $79,~~583~~174. ~~due~~In toJuly 2020, ~~office~~the ~~supplies~~company ~~were~~hired ~~fully~~a ~~stocked going into the~~ new ~~year~~marketing ~~of 2020~~firm.

~~Rent expense~~Office ~~increased~~supplies decreased by $4111,~~644~~564 due ~~a decrease on~~ to office ~~rent~~supplies ~~expense~~were ~~moving~~fully ~~from~~stocked ~~parent~~going ~~level~~into tothe ~~subsidiary~~new ~~level~~year as of ~~January 01,~~ 2020. ~~The same will show as a decrease on the parent level.~~

~~Other general~~Rent ~~and administrative~~ expense increased by $917,~~210.~~174 ~~The increase is mainly~~ due to arent expense ~~fraudulent~~moving ~~charge~~from ofparent ~~$9,500~~level ~~and~~to ansubsidiary ~~increase in~~level ~~payroll~~as ~~taxes~~ of ~~$13~~January 01,~~371~~ ~~due~~2020. toThe ansame ~~increase~~will inshow ~~wages.~~as ~~There is~~ a decrease inon ~~automobile expenses of $4,912 due to~~ the ~~COVID-19 pandemic~~parent level.

~~Interest~~Other general and administrative expense increased by $20,676. TCA commissions increased $23,488 due to moving the expense to subsidiary level. The same will show as an decrease on the parent level. Payroll tax expenses increased by $4,776 due to an increase in wages. There is a decrease in automobile expenses of $3,154 due to the COVID-19 pandemic. Other miscellaneous items decreased by $5,000.

Interest ~~expense~~ ~~in total for the three-month periods ended June 30, 2020 and 2019 was as follows:~~expense

2020	$	707,774
2019		341,178
Change	$	366,596
Percentage Change		107.45	%

Interest expense in total for the three-month periods ended September 30, 2020 and 2019 was as follows:

2020	$	291,258
2019		383,798
Change	$	(92,540	)
Percentage Change		(24.11	)%

~~A breakdown of the interest expense for the three-month periods ended June 30, 2020 and 2019 is as follows:~~20

	2020		2019		Change
Parent	$	492,340	$	163,093	$	329,247
PVMS		215,434		178,085		37,349
Total	$	707,774	$	341,178	$	366,596

A breakdown of the interest expense for the three-month periods ended September 30, 2020 and 2019 is as follows:

Sources of Revenue

	2020		2019		Change

Parent (Debtor-In-Possession)	$	108,570	$	172,720	$	(64,150	)
PVMS		182,688		211,078		(28,390	)

Total	$	291,258	$	383,798	$	(92,540	)

~~Six-month periods~~Sources ~~ended~~of ~~June 30, 2020 and 2019~~Revenue

~~A quantitative summary of our revenues by source category for the six~~Nine-month periods ended ~~June~~September 30, 2020 and 2019:

			2020				2019				Change
OSA- related		$	230,992			$	158,376			$	72,616

A quantitative summary of our revenues by source category for the nine-month periods ended September 30, 2020 and 2019:

Results of Operations

	2020		2019		Change

OSA- related	$	358,062	$	226,549	$	131,513

~~OSA services~~Results ~~increased to $230,992 in 2020 from $158,376 in 2019. The increase was primarily the result~~ of the Concentra account. Last year, on May 14, 2019, we reached an agreement with Concentra whereby Concentra engaged the Company, and the Company accepted the engagement, to serve as one of Concentra’s preferred national sleep apnea services provider. The launch was initiated during the fourth quarter of 2019.Operations

~~While there~~OSA ~~was~~services anincreased ~~increase~~to $358,062 in ~~OSA~~2020 from ~~services~~$226,549 ~~the~~in ~~increase~~2019. ~~would~~The ~~have~~increase ~~been~~was ~~greater~~primarily ~~without~~ the ~~clinics~~result ~~having~~of tothe ~~shut~~Concentra ~~down~~account. ~~due~~Last toyear, ~~the COVID-19~~on ~~pandemic.~~May As14, ~~demonstrated~~2019, inwe ~~the~~reached ~~first~~an agreement ~~quarter~~with ofConcentra ~~2020,~~whereby ~~OSA~~Concentra ~~services~~engaged ~~increased~~the ~~by $59~~Company,~~625~~ ~~than~~and in the ~~comparable~~Company ~~period of~~accepted ~~2019. With~~ the ~~clinics~~engagement, ~~having~~ to beserve ~~closed~~as ~~during~~one ~~the~~of ~~three~~Concentra’s preferred ~~months~~national ~~period~~sleep ~~ended~~apnea ~~June~~services ~~30,~~provider. ~~2020~~The ~~due~~launch ~~to the COVID-19 pandemic, there~~ was ~~only~~initiated anduring ~~additional~~the ~~increase~~fourth quarter of ~~$12,990~~2019.

Cost of revenues increased to $~~129~~199,~~909~~508 in 2020 from $~~107~~110,~~817~~211 in 2019 due to an increase in sales.

General and administrative expense

General and administrative expense in total for the ~~six~~nine-month periods ended ~~June~~September 30, 2020 and 2019 was as follows:

2020	$	1,~~311~~931,~~462~~591
2019		~~841~~1,~~843~~269,920
Change	$	~~469~~661,~~619~~671
Percentage Change		5552.7810	%

We evaluate expenses at the Parent company level as well as at our PVMS subsidiary. Expenses at the Parent company level include overhead and the cost of being a public entity. Expenses at PVMS are solely related to the OSA services segment. A breakdown of these expenses as ~~June~~September 30, 2020 and 2019 is as follows:

	2020		2019		Change		Percent Change
Parent	$	539,259	$	352,821	$	186,438		52.84	%
Parent (Debtor-In-Possession)	$	899,145	$	470,917	$	428,228		90.94	%
PVMS		~~772~~1,~~203~~032,446		~~489~~799,~~022~~003		~~283~~233,~~181~~443		5729.9122	%
Total	$	1,~~311~~931,~~462~~591	$	~~841~~1,~~843~~269,920	$	~~469~~661,~~619~~671		5552.7810	%

Parent Company Level (Debtor-In-Possession)

								Percent
	2020		2019		Change			Change
Professional fees	$	~~409~~675,~~870~~959	$	~~211~~245,~~265~~594	$	~~198~~430,~~605~~365			94175.0123	%
Travel expense		67		3,815		(3,748	)		-(98.24	)%
Board of Directors fees		95,000		75112,~~000~~500		20(17,~~000~~500	)		26(15.6756	)%
Office supplies		~~495~~547		~~351~~336		~~144~~211			4162.0380	%
Rent expense		—		5176,~~277~~532		(5176,~~277~~532	)		-(100~~.00~~	)%
Other		33127,~~827~~572		1132,~~113~~140		2295,~~714~~432			~~204~~296.4093	%
Total general and administrative	$	~~539~~899,~~259~~145	$	~~352~~470,~~821~~917	$	~~186~~428,~~438~~228			5290.8494	%

Explanations of variations by line item follow:

Professional fees increased $~~198~~430,~~605~~365. The increase is mainly due to new consulting service expenses ~~in the total~~ of $~~236~~354,~~500~~750 ~~and an increase of $55,023~~ in ~~legal fees in~~ the ~~six~~nine-month period ended ~~June~~September 30, 2020 compared to the ~~six~~ nine-month period ended ~~June~~September 30, 2019. ~~Audit~~ Legal fees ~~decreased~~increased by $66132,~~300~~671 in order to continue with various lawsuits and ~~accounting~~with the bankruptcy proceeding. Audit fees decreased by $2253,~~957~~467 due to the fact that the 2015 - 2017 10-K was filed in January 2019. Other professional fees decreased by approximately $4,000.

Travel expense decreased $3,748 due to ~~due to~~ the COVID-19 pandemic. Many clinics have been closed and those that are open have reduced staffs and we have been requested to not conduct any in person visits.

Board of Directors fees ~~increased~~decreased $2017,~~000~~500. As ~~due~~of toJuly an1, ~~additional $20~~2020,~~000~~ ~~paid~~The toCompany ahas stopped paying Board of ~~director~~Director ~~member~~fees.

Rent expense decreased $5176,~~277~~532 due to rent expense moving from parent level to subsidiary level as of January 01, 2020. The same will show as an increase on the subsidiary level.

Other general and administrative expense increased by $2295,~~714~~432. ~~This~~D&O ~~increase~~Insurance ~~was~~expense increased by $25,324 due to a new D&O ~~Insurance~~insurance ~~expense~~that started in June 2019. Payroll related expenses increased by $99,551. The Company accrued CEO wages in the amount of $2666,~~174~~095 ~~while~~during the three-month period ended September ~~other~~30, ~~miscellaneous~~2020 ~~items~~and the second quarter accrued CEO wages of $33,456 were moved from subsidiary level to the parent level. The same will show as an decrease on the subsidiary level. TCA commissions decreased $323,~~463~~263 due to moving the expense to subsidiary level. The same will show as an increase on the subsidiary level. Taxes decreased by $6,137. Delaware taxes were properly accrued for 2019 and property taxes for 2018 was paid in 2019.

PVMS Subsidiary Level

Percent

2020

2019

Change

Payroll related

~~419~~546,~~743~~910

~~212~~341,~~312~~769

~~207~~205,~~431~~141

9760.7002

Travel and related expense

7581,~~224~~059

91151,~~324~~372

(1670,~~100~~313

)

~~-17~~(46.6345

Professional fees

~~109~~133,~~057~~802

81135,~~747~~201

27(1,~~310~~399

)

33(1.4103

Marketing costs

3460,~~592~~277

1733,~~229~~740

1726,~~363~~537

~~100.~~78.65

Dues and subscriptions

~~208~~419

~~640~~841

(~~432~~422

)

~~-67.~~(50.18

Office supplies

45,~~077~~704

1730,~~577~~768

(1325,~~500~~064

)

~~-76~~(81.8046

Rent expense

6596,~~933~~048

2335,~~001~~942

4260,~~932~~106

~~186~~167.6523

Other

63108,~~369~~227

4569,~~192~~370

1838,~~177~~857

4056.2201

Total general and administrative

~~772~~1,~~203~~032,446

~~489~~799,~~022~~003

~~283~~233,~~181~~443

5729.9122

Explanations of variations by line item follow:

Payroll related expenses increased $~~207~~205,~~431~~141. The Company hired 4 employees during the ~~six~~nine months ended ~~June~~September 30, 2020 that were not included in the comparable period in 2019. The Company paid ~~our~~the CEO $32,699 and accrued wages in the amount of $33,456 during the six months ended June 30, 2020. The second quarter accrued wages of $33,456 were moved from subsidiary level to the parent level in September 2020. The same will show as an increase on the parent level.

Travel expense decreased $1670,~~100~~313 due to the COVID-19 pandemic. Many clinics have been closed and those that are open have reduced staffs and we have been requested to not conduct any in person visits.

Professional Fees ~~increased~~stayed ~~$27,310.~~relatively ~~There is an increase in accounting fees by $25,000 due to services for special projects. Consulting fees increased $33,750 because~~ the ~~company hired 5 new consultants to bring in additional revenue~~same. ~~There was a decrease in legal fees by $23,657. The Company no longer used a law firm in the six months ended June 30, 2020 that was used in the comparable period in 2019.~~

Marketing costs increased by $1726,~~363~~537. The ~~company~~ Company hired an advertising firm in the 3rd quarter of 2019 to work on the company'’s website and other marketing responsibilities and is still with the ~~company~~Company as of June 30, 2020. In July 2020, The Company hired a new marketing firm.

Office supplies decreased by $1325,~~500~~064 due to office supplies were fully stocked going into the new year of 2020.

Rent expense increased $4260,~~932~~106 due to rent expense moving from parent level to subsidiary level as of January 01, 2020. The same will show as a decrease on the parent level.

Other general and administrative expense increased by $1838,~~180~~857 due to a fraudulent charge of $9,500 and an increase in payroll taxes of $1015,~~764~~540 because of an increase in wages. ~~Other~~TCA commissions ~~miscellaneous items~~ increased by $623,~~876~~488 due to ~~revamp~~moving ofthe ~~website,~~expense ~~employee~~to ~~benefits, and~~subsidiary ~~printing~~level. ~~and~~The ~~postage~~same ~~for~~will ashow ~~conference.~~as an decrease on the parent level. Automobile expenses decreased $36,~~078~~233 due to the COVID-19 pandemic. Bad debt expense decreased $3,510 due to a decrease in bad debt in the ~~six~~nine-month ~~months~~period ended ~~June~~September 30, 2020 than in the comparable period in 2019.

Interest expense

Interest expense in total for the six nine-month periods ended ~~June~~September 30, 2020 and 2019 was as follows:

2020	$	1,~~102~~393,~~403~~659
2019		~~669~~1,~~193~~052,991
Change	$	~~433~~340,~~210~~668
Percentage Change		6432.7435	%

A breakdown of the interest expense for the ~~six~~ nine-month periods ended ~~June~~September 30, 2020 and 2019 is as follows:

	2020		2019		Change
Parent	$	636,453	$	326,185	$	310,268
Parent (Debtor-In-Possession)	$	745,022	$	498,905	$	246,117
PVMS		~~465~~648,~~950~~637		~~343~~554,~~008~~086		~~122~~94,~~942~~551
Total	$	1,~~102~~393,~~403~~659	$	~~669~~1,~~193~~052,991	$	~~433~~340,~~210~~668

Financial Condition

Liquidity and Capital Resources

During the ~~six~~nine-month period ended ~~June~~ September 30, 2020, we funded our operations from revenues and $~~547~~628,~~360~~540 in private borrowings. As a result of the coronavirus pandemic some of our traditional sources of private borrowing have not been accessible. We have had to obtain private borrowing on terms less favorable than we were able to prior to the pandemic. We will continue to fund our operations from these sources until we are able to produce operating revenue sufficient to cover our cost structure. In the event we are not able to secure such funding, our operations will be adversely affected.

Short Term: We funded our operations with revenues from sales and private borrowings.

On April 23, 2020, the Company’s wholly owned subsidiary, Pharmacy Value Management Solutions, Inc. (‘PVMS”) received a loan in the principal amount of $1,243,840 from Mechanics Bank (the “Bank”) pursuant to the Paycheck Protection Program. On May 22, 2020, the Bank notified PVMS that the loan was in default as a result of false statements made in the loan application. PVMS disputes the Bank’s claim and believes that it made no false statements in its PPP loan application. The statements relate to the number of employees and the monthly payroll amounts. As a result, PVMS’ account with Mechanics Bank has been frozen with a balance of $845,340. Both PVMS and the Bank are seeking guidance from the Small Business Administration as to how to resolve this dispute. Until resolved, it is likely that this account will remain frozen.

During the period we continued toward our goal to be able to uplist our Common Stock to another trading platform. Among the actions is our attempt to reduce our stockholder’s deficiency by, among, other things, being able to convert a large portion of our corporate debt to equity. For the ~~six~~nine months ended ~~June~~September 30, 2020, $3,~~727~~802,213 of debt plus accrued interest was converted into 39 40,~~652~~417,~~283~~682 shares of Common Stock. All of the holders of the converted debt agreed, subject to several different conditions, to a one year lock-up from publicly offering the shares. The primary condition being to not publicly sell the shares until the earlier of (i) one year from the date of the exchange, or (ii) until the shares are tradable on the NASDAQ or comparable national exchange. The other condition for a block of 14,584,350 shares received in an exchange has the lock-up as the earlier of one year or such time as our Common Stock has an average trading volume of no less than 500,000 shares for 30 consecutive trading days.

Subsequent Events

Subsequent to ~~June~~September 30, 2020, we issued a convertible promissory ~~note~~notes in the total principal amount of $5660,~~180~~000. ~~The~~All ~~term~~ of the ~~note~~debt ismatures 12in ~~months~~ 2021 and ~~the~~has ~~interest~~a stated interest rate isof 1012% ~~per~~and ~~annum~~is unsecured.

In August we announced that we will start using a disposable home sleep test device known as the WatchPAT™ ONE which utilizes cloud-based technology for the immediate upload of testing data. This feature will streamline the Company's receipt of test data and its ability to render faster obstructive sleep apnea (“OSA”) test results - critical, in light of the increased OSA testing reasonably to be anticipated when DOT-required medical exams resume. With the WatchPAT™ ONE, we can measure the patient's PAT® signal, heart rate, oximetry, actigraphy, body position, snoring, and chest motion. As discussed, in March of this year, the Federal Motor Carrier Safety Association (FMCSA) suspended the commercial driver's required annual/biennial medical exams. This suspension was a reaction to the COVID-19 pandemic, and the nation's need to keep its commercial drivers on the road delivering essential supplies. The suspension is currently scheduled to expire on September 30, 2020. We anticipate that almost seven months of drivers will need to schedule and complete their required medical exams shortly after September 30th. Thus, whenever the suspension is lifted, it is anticipated that there will be an increased number of drivers all needing completion of their medical exams including OSA testing (when indicated).. These drivers would be in addition to our new patient accounts acquired during the past four-month period. With our implementation of this new technology, we expect to not only be more efficient in our testing process, but to greatly enable our clinic partners to process the OSA portion of their drivers' DOT medical exams faster and more efficiently. While there is an additional cost to the Company for the WatchPAT™ ONE process, we have elected to not pass this cost on to the clinic, the driver or the driver's employer. 23

~~Item 3.~~PART ~~Quantitative~~II-OTHER ~~and Qualitative Disclosures about Market Risk:~~ INFORMATION

~~As a~~Item ~~smaller~~1. ~~reporting~~Legal ~~company, we are not required to make any disclosure.~~Proceedings

~~Item~~With the exception of the matter set forth below, all of the legal proceedings for the nine-month period ended September 30, 2020, are disclosed in our annual report on Form 10-K filed on April 9, 2020. On September 4, 2020, in a matter entitled Dr. ~~Controls~~Jerry Katzman v. Comprehensive Care Corporation n/k/a/ Advanzeon Solutions, Inc. a receiver was appointed for Advanzeon Solution, Inc. ( the “Company”). The order granting the Plaintiff’s motion for appointment of a receiver was issued in the Circuit Court of the 13th Judicial Circuit in and ~~Procedures~~for Hillsborough County Florida, Case number 12-002570-Division L. The name of the receiver is Burton W. Wiand.

~~Our management~~On isSeptember ~~responsible~~7, 2020, the Company filed a voluntary petition for relief ~~establishing~~under ~~and~~Chapter ~~maintaining~~11 ~~adequate~~of ~~internal~~the ~~control~~United ~~over~~States ~~our~~Bankruptcy ~~financial~~Code ~~reporting.~~in ~~Internal~~the ~~control over~~United ~~financial~~States ~~reporting~~Bankruptcy isCourt afor ~~process~~the ~~designed~~Middle toDistrict ~~provide~~of ~~reasonable~~Florida, Tampa ~~assurance~~Division, toCase ~~our~~number ~~management~~8:20-bk-6764. ~~and~~Also, ~~board~~on ofSeptember ~~directors~~7, ~~regarding~~ 2020, the ~~reliability~~Company filed a Notice of ~~financial~~Case ~~reporting~~Under ~~and~~Chapter 11 of the United ~~preparation~~States Bankruptcy Code and Notice of ~~financial~~Automatic ~~statements~~Stay ~~for~~with ~~external~~the ~~purposes~~Circuit inCourt ~~accordance~~of ~~with~~the ~~U.S.~~13th Judicial District in and ~~generally~~for ~~accepted~~Hillsborough ~~accounting~~County, ~~principles~~Florida.

23The Company will continue to operate its business as “debtor-in possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court.

~~Our internal~~Subject ~~control~~to ~~over~~certain ~~financial~~exceptions ~~reporting~~under ~~includes~~the ~~those~~Bankruptcy Code, ~~policies~~the ~~and~~filing ~~procedures~~of ~~that~~the ~~(i)~~Company’s ~~pertain~~Chapter to11 petition automatically stayed the ~~maintenance~~continuation of ~~records~~most legal proceedings or ~~that~~filing inof ~~reasonable~~other ~~detail~~actions ~~accurately~~against ~~and~~the ~~fairly~~Company ~~reflect~~or ~~our~~on ~~transactions;~~behalf ~~(ii)~~of ~~provide~~the ~~reasonable~~Company ~~assurance~~for ~~that~~their ~~transactions are~~property ~~recorded~~to asrecover, ~~necessary~~collect, ~~for~~or ~~preparation~~secure ofa ~~our~~claim arising ~~financial~~prior ~~statements;~~to ~~(iii)~~the ~~provide~~Petition ~~reasonable~~Date ~~assurance~~or ~~that~~to ~~receipts~~exercise ~~and~~control ~~expenditures~~ over property of ~~company~~the ~~assets~~Company, ~~are~~unless ~~made~~or inuntil ~~accordance~~the ~~with~~Bankruptcy ~~management~~Court ~~authorization;~~modifies or ~~and~~lifts ~~(iv)~~the ~~provide~~automatic ~~reasonable~~stay ~~assurance~~as ~~that~~to ~~unauthorized acquisition,~~any ~~use~~such orclaim. ~~disposition~~Notwithstanding ofthe ~~company~~general ~~assets~~application ~~that~~of ~~could~~the ~~have~~automatic astay ~~material~~described ~~effect~~above, government onauthorities ~~our~~may ~~financial~~determine ~~statements~~to ~~would~~continue beactions ~~prevented or~~brought ~~detected~~under ontheir aregulatory ~~timely~~or ~~basis~~[policy] powers.

~~Because of~~Item ~~its inherent limitations, internal control over financial reporting may not prevent or detect misstatements~~1A. ~~Also,~~Risk projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because changes in conditions may occur or the degree of compliance with the policies or procedures may deteriorate.Factors

~~Our management~~See ~~assessed~~ the ~~effectiveness~~Risk ofFactors ~~our~~included ~~internal~~in ~~control~~our ~~over financial reporting as of June 30, 2020. This evaluation was~~Annual ~~based~~Report on ~~criteria~~Form ~~set~~10-K ~~forth~~for by the ~~Committee~~fiscal ofyear ~~Sponsoring~~ended ~~Organizations~~December ~~of the Treadway Commission~~31, ~~or COSO, Internal Control-Integrated Framework~~2019. Based upon such assessment, our CFO concluded that, as of June 30, 2020, our internal controls over financial reporting were not optimally effective in the specific areas described in the paragraphs below.

~~As of~~Item ~~June~~2. ~~30,~~Unregistered ~~2020,~~Sales ~~our~~of ~~CFO~~Equity ~~identified~~Securities ~~the~~and ~~following~~Use ~~specific~~of ~~material weaknesses in the Company’s internal controls over its financial reporting processes:~~Proceeds

•With ~~Policies and Procedures for~~ the ~~Financial~~exception ~~Close~~of ~~and Reporting Process – During~~ the ~~period~~matter ofset ~~this report~~forth below, the ~~Company’s~~sale ~~policies~~of orunregistered ~~procedures~~securities ~~did~~for ~~not clearly define~~ the ~~roles~~nine-month inperiod ~~the~~ended ~~financial~~September ~~reporting process. The various roles and responsibilities related to this process should be defined~~30, ~~documented,~~2020 ~~updated~~were ~~and~~disclosed ~~communicated. Not having clear policies and procedures~~ in ~~place~~our ~~amounts~~annual toreport on aForm ~~material~~10-K ~~weakness~~filed inon ~~the~~April ~~Company’s~~9, ~~internal controls over its financial reporting processes~~2020.

•On ~~Representative~~April 15, 2020, we issued a convertible promissory note (the “Note”) in the principle amount of $109,180 with ~~Financial~~an ~~Expertise~~original –issue ~~For~~discount ~~six-month~~of ~~period~~$6,180. ~~ended~~The ~~June~~Note matures 30on October 15, ~~2020~~2021, and the ~~Company~~interest ~~did~~rate is 10%. This Note may not ~~continuously~~be ~~have~~prepaid anin ~~employee~~whole ~~with~~or in part except as follows. Should the ~~requisite~~Note ~~knowledge~~be ~~and~~prepaid ~~expertise~~within tothe ~~review~~first ninety days from the ~~financial~~date ~~statements~~of ~~and~~issuance, ~~disclosures~~the atprepayment apercentage ~~sufficient~~is ~~level~~one tohundred ~~monitor~~and twenty-five (125%) per cent of the ~~financial~~outstanding ~~statements~~principal and ~~disclosures~~any toaccrued ~~the~~and ~~Company~~unpaid interest. ~~Failure~~For tothe ~~have,~~next ~~continuously,~~ninety andays ~~employee~~the ~~with~~Note may ~~such~~be ~~knowledge~~prepaid and ~~expertise~~the ~~amounts~~prepayment topercentage ais ~~material~~one ~~weakness~~hundred tothirty (130%) per cent of the ~~Company’s~~outstanding ~~internal~~principal ~~controls~~and ~~over~~any ~~its~~accrued and ~~financial~~unpaid ~~reporting~~interest. ~~processes~~Thereafter, the Note may not be prepaid.

~~As a~~On ~~result~~April of21, ~~our~~2020, ~~retaining~~we ~~the~~issued ~~services~~a total of an14,584,350 shares ~~Outside~~of ~~Accountant~~our incommon ~~January~~stock ~~2018~~in ~~and~~exchange ~~appointing~~for an$2,916,869 ~~internal~~of ~~Company~~our ~~employee~~Senior ~~to interface~~Debt ~~with~~and ~~the~~accrued ~~Outside~~interest ~~Accountant,~~to weseven ~~have~~holders ~~instituted~~of the ~~following~~Debt. ~~policies~~We relied ~~and~~on ~~procedures~~Section ~~designed~~3(a) to(9) ~~address~~of the ~~material weaknesses~~Securities ~~cited~~Act ~~above~~of 1933, as amended.

•On ~~All~~April ~~billing~~21, ~~invoices~~2020, ~~prepared~~we byissued ~~the~~a ~~billing~~total ~~department~~of ~~are~~1,327,252 shares ~~sent~~of toour ~~the~~common ~~Outside~~stock ~~Accountant~~in exchange for ~~review~~$265,450 ~~and~~of ~~approval~~our ~~before~~convertible ~~sending~~debt ~~out~~and accrued interest to the ~~customer~~holder of the debt. We relied on Section 3(a) (9) of the Securities Act of 1933, as amended.

•On ~~Copies~~April of21, ~~all~~2020, ~~incoming~~we ~~payable~~issued ~~invoices~~a ~~are~~total ~~sent~~of ~~to the Outside Accountant for review~~2,156,515 shares ~~approval~~of ~~and~~our ~~data~~common ~~entry~~stock ~~into~~in ~~the~~exchange ~~accounting~~for ~~system.~~$431,303 ~~That~~of ~~way~~our ~~Corporate~~convertible ~~Office~~debt ~~has the originals~~ and ~~the~~accrued ~~outside~~interest ~~accountants~~to ~~have duplicate copies. Accounts Payable Aging Report is sent once a week from~~ the ~~Outside~~holder ~~Accountants~~of to the ~~Corporate office~~debt. ~~The~~We relied ~~Corporate office, along with Outside Accountants, decide~~ on ~~which~~Section ~~bills to pay weekly. Electronic payments have~~ 3(a) ~~duel control approval system~~ (~~one~~9) ~~person~~of ~~is initiating~~ the ~~payment~~Securities ~~and~~Act ~~another~~of ~~person~~1933, isas ~~approving the payment)~~amended.

•On ~~Paperwork~~May on13, ~~all~~2020, ~~customer~~we ~~invoices~~issued a convertible promissory note in the principle amount of $50,000 ~~credit~~to ~~card~~an ~~payments~~accredited ~~and~~investor. ~~check~~The ~~payments~~interest ~~received~~rate atwas ~~Corporate~~12%. ~~are~~The ~~copied~~Holder of the note has the right to convert all or a portion of the principle and ~~forwarded~~any accrued interest into shares of our common stock at a per share price equal to ~~Outside~~the ~~Accountants.~~lesser ~~Customer~~of ~~invoices~~(i) ~~are~~15% ~~recorded~~below the average daily. ~~Customer~~closing ~~payments~~price ~~received~~of ~~are~~our ~~recorded~~common ~~daily~~stock for the immediately preceding twenty (20) business days or (ii) $0.11. ~~Customer~~The ~~payments~~principal ~~are~~amount ~~reconciled~~and ~~with~~any accrued but unpaid interest under the ~~bank~~note shall be due and payable on athe ~~daily~~earliest to ~~basis.~~occur ~~Aged~~(i) ~~Accounts~~the ~~Receivable~~date ~~Reports~~which ~~are~~is ~~sent~~twelve months from the effective date of the note or (ii) the receipt by the Company of payment on its account receivable owed to ~~Corporate~~it by Universal Health Care, Inc. and Universal Health Care Insurance Company, which accounts receivable is currently being processed in the ~~Outside~~matter ~~Accountants~~of ~~with~~The ~~suggestions~~Receivership onof Universal Health Care, Inc., a ~~regular~~Florida ~~basis~~corporation and The Receivership of Universal Health Care Insurance Company, Inc., a Florida corporation under case numbers 2013-CA and 2013-CA, respectively. The Company also granted to the purchaser a five-year warrant to purchase 100,000 shares of the Company’s common stock at an exercise price of $0.15 per share.

~~• All bank accounts are reconciled monthly.~~24

•On ~~Financial~~May ~~Statements~~15, ~~are~~2020, ~~prepared~~we issued a total 1,263,745 shares of our common stock in exchange for $139,012 of our convertible debt and ~~reviewed~~accrued ~~monthly~~interest to the holder of the debt. We relied on Section 3(a) (9) of the Securities Act of 1933, as amended.

~~The Company~~On ~~plans~~May to15, ~~further~~2020, ~~augment~~we ~~its~~issued ~~addressing~~a total 4,284,565 shares of ~~material~~our ~~weaknesses,~~common onstock anin ~~as-needed~~exchange ~~basis~~for $471,302 byof ~~hiring~~our ~~additional~~convertible ~~accounting personnel~~debt ~~once~~and ~~its~~accrued ~~initial~~interest ~~corrective~~to ~~steps~~the ~~have~~holder ~~been~~of ~~fully~~the ~~implemented,~~debt. ~~tested~~We relied ~~and~~on ~~found~~Section to3(a) be(9) ~~effective~~of the Securities Act of 1933, as amended.

24On May 15, 2020, we issued a total 7,210,168 shares of our common stock in exchange for $793,118 of our convertible debt and accrued interest to the holder of the debt. We relied on Section 3(a) (9) of the Securities Act of 1933, as amended.

~~PART~~On May 18, 2020, we issued a total 700,751 ~~II-OTHER~~shares ~~INFORMATION~~of our common stock in exchange for $77,083 of our convertible debt and accrued interest to the holder of the debt. We relied on Section 3(a) (9) of the Securities Act of 1933, as amended.

~~Item~~On May 21, 2020, we issued a total 502,434 1shares of our common stock in exchange for $55,268 of our convertible debt and accrued interest to the holder of the debt. ~~Legal~~We ~~Proceedings~~relied on Section 3(a) (9) of the Securities Act of 1933, as amended.

~~With~~On May 22, 2020, we issued a convertible promissory note in the ~~exception~~principle amount of $25,000 to an accredited investor. The interest rate was 12%. The Holder of the ~~matter~~note ~~set~~has ~~forth~~the ~~below,~~right to convert all or a portion of the ~~legal~~principle ~~proceedings~~and any accrued interest into shares of our common stock at a per share price equal to the lesser of (i) 15% below the average daily closing price of our common stock for the ~~six-month~~immediately ~~period~~preceding ~~ended~~twenty ~~June~~(20) 30business days or (ii) $0.11. The principal amount and any accrued but unpaid interest under the note shall be due and payable on the earliest to occur (i) the date which is twelve months from the effective date of the note or (ii) the receipt by the Company of payment on its account receivable owed to it by Universal Health Care, ~~2020~~Inc. and Universal Health Care Insurance Company, ~~are~~which ~~disclosed~~accounts receivable is currently being processed in ~~our~~the ~~annual~~matter ~~report~~of onThe ~~Form~~Receivership 10of Universal Health Care, Inc., a Florida corporation and The Receivership of Universal Health Care Insurance Company, Inc., a Florida corporation under case numbers 2013-KCA ~~filed~~and on2013-CA, respectively. ~~April~~The 9Company also granted to the purchaser a five-year warrant to purchase 50,000 ~~2020~~shares of the Company’s common stock at an exercise price of $0.15 per share.

~~Item~~On May 25, 2020, we issued a total 319,627 1Ashares of our common stock in exchange for $35,159 of our convertible debt and accrued interest to the holder of the debt. ~~Risk~~We ~~Factors~~relied on Section 3(a) (9) of the Securities Act of 1933, as amended.

~~In addition~~On toMay ~~the~~25, ~~risk~~2020, ~~factors~~we ~~included~~issued a total 333,824 shares of our common stock in exchange for $36,721 of our ~~Annual~~convertible ~~Report~~debt onand ~~Form~~accrued ~~10-K~~interest ~~for~~to the ~~fiscal~~holder ~~year~~of ~~ended~~the ~~December~~debt. ~~31,~~We ~~2019,~~relied on weSection ~~include~~ 3(a) (9) of the ~~following:~~Securities Act of 1933, as amended.

~~Effect~~On May 26, 2020, we issued a convertible promissory note in the principle amount of $100,000 to an accredited investor. The interest rate was 12%. The Holder of the ~~Coronavirus~~note ~~Pandemic~~has the right to convert all or a portion of the principle and any accrued interest into shares of our common stock at a per share price equal to the lesser of (i) 15% below the average daily closing price of our common stock for the immediately preceding twenty (20) business days or (ii) $0.11. The principal amount and any accrued but unpaid interest under the note shall be due and payable on the earliest to occur (i) the date which is twelve months from the effective date of the note or (ii) the receipt by the Company of payment on its account receivable owed to it by Universal Health Care, Inc. and Universal Health Care Insurance Company, which accounts receivable is currently being processed in the matter of The Receivership of Universal Health Care, Inc., a Florida corporation and The Receivership of Universal Health Care Insurance Company, Inc., a Florida corporation under case numbers 2013-CA and 2013-CA, respectively. The Company also granted to the purchaser a five-year warrant to purchase 200,000 shares of the Company’s common stock at an exercise price of $0.15 per share.

The coronavirus pandemic is adversely affecting and is expected to continue to adversely affect our business, financial condition and results of operations. We are unable to predict the extent or nature these effects will have on our business at this time.25

~~Item~~ On May 26, 2020, we issued a total 781,206 2.shares ~~Unregistered~~of ~~Sales~~our common stock in exchange for $85,933 of ~~Equity~~our ~~Securities~~convertible debt and ~~Use~~accrued interest to the holder of ~~Proceeds~~the debt. We relied on Section 3(a) (9) of the Securities Act of 1933, as amended.

~~With the~~On ~~exception~~May of28, ~~the~~2020, ~~matter~~we ~~set~~issued ~~forth~~a ~~below~~total 884,555 shares ~~the~~of ~~sale~~our ofcommon ~~unregistered~~stock ~~securities~~in exchange for ~~the~~$97,301 ~~six-month~~of ~~period~~our ~~ended~~convertible ~~June~~debt ~~30,~~and ~~2020 were~~accrued ~~disclosed~~interest into ~~our~~the ~~annual~~holder ~~report~~of onthe ~~Form~~debt. ~~10-K~~We ~~filed~~ relied on ~~April~~Section 3(a) (9) of the Securities Act of 1933, ~~2020~~as amended.

On ~~April~~ 15May 29, 2020, we issued a ~~convertible~~total ~~promissory note (the "Note”) in the principle amount of $109~~937,~~180 with an original~~116 ~~issue~~shares ~~discount~~ of ~~$6,180.~~our ~~The~~common ~~Note~~stock ~~matures on October 15, 2021, and the interest rate is 10%. This Note may not be prepaid~~ in ~~whole~~ orexchange infor ~~part except as follows. Should the Note be prepaid within the first ninety days from the date of issuance~~$103,083 ~~the prepayment percentage is one hundred and twenty-five (125%) per cent~~ of ~~the~~our ~~outstanding~~convertible ~~principal~~debt and ~~any~~ accrued ~~and unpaid~~ interest. ~~For the~~to ~~next ninety days~~ the ~~Note~~holder ~~may~~of ~~be prepaid and~~ the ~~prepayment~~debt. ~~percentage~~We relied ison ~~one~~Section ~~hundred~~3(a) ~~thirty~~ (~~130%~~9) ~~per cent~~ of the ~~outstanding principal~~Securities ~~and~~Act ~~any~~of ~~accrued and unpaid interest. Thereafter~~1933, ~~the~~as ~~Note may not be prepaid~~amended.

On ~~April~~ 21June 1, 2020, we issued a ~~total~~convertible promissory note (the “Note”)in the principle amount of 14$56,~~584,350~~180 ~~shares~~with an original issue discount of ~~our~~$3,180. ~~common~~The ~~stock~~Note matures on June 1, 2021, and the interest rate is 10%. This Note may not be prepaid in ~~exchange~~whole ~~for~~or $2in part except as follows. Should the Note be prepaid within the first ninety days from the date of issuance,~~916,869~~ the prepayment percentage is one hundred and twenty-five (125%) per cent of ~~our~~the ~~Senior~~outstanding ~~Debt~~principal and any accrued and unpaid interest. toFor ~~seven~~the ~~holders~~next ofninety days the ~~Debt.~~Note Wemay ~~relied~~be onprepaid ~~Section~~and the ~~3(a)~~prepayment percentage is one hundred thirty (9130%) per cent of the ~~Securities~~outstanding ~~Act~~principal ofand ~~1933~~any accrued and unpaid interest. Thereafter, asthe ~~amended~~Note may not be prepaid.

On ~~April~~ 21June 1, 2020, we issued a total of 1,~~327~~024,~~252~~ 189 shares of our common stock in exchange for $~~265~~112,~~450~~661 of our convertible debt and accrued interest to the holder of the debt. We relied on Section 3(a) (9) of the Securities Act of 1933, as amended.

On ~~April~~ 21June 5, 2020, we issued a total ~~of 2~~668,~~156,515~~ 797 shares of our common stock in exchange for $~~431~~73,~~303~~568 of our convertible debt and accrued interest to the holder of the debt. We relied on Section 3(a) (9) of the Securities Act of 1933, as amended.

On ~~May~~ 13June 5, 2020, we issued a ~~convertible~~total ~~promissory note in the principle amount of $50~~603,~~000 to an accredited investor. The interest~~987 ~~rate was 12%. The Holder of the note has the right to convert all or a portion of the principle and any accrued interest into~~ shares of our common stock atin aexchange ~~per~~for ~~share~~$66,438 ~~price equal to the lesser~~ of ~~(i) 15% below the average daily closing price of~~ our ~~common stock~~convertible ~~for~~debt ~~the immediately preceding twenty (20) business days or (ii) $0.11. The principal amount~~ and ~~any~~ accrued ~~but unpaid~~ interest ~~under~~ ~~the note shall be due and payable on the earliest~~ to ~~occur (i)~~ the ~~date~~holder ~~which~~of ~~is twelve months from~~ the ~~effective~~debt. ~~date~~We ofrelied ~~the~~on ~~note~~Section or3(a) (ii9) ~~the receipt by the Company~~ of ~~payment on its account receivable owed to it by Universal Health Care, Inc. and Universal Health Care Insurance Company, which accounts receivable is currently being processed in~~ the ~~matter~~Securities ofAct ~~The Receivership~~ of ~~Universal Health Care~~1933, ~~Inc.,~~as ~~a Florida corporation and The Receivership of Universal Health Care Insurance Company, Inc~~amended., a Florida corporation under case numbers 2013-CA and 2013-CA, respectively. The Company also granted to the purchaser a five-year warrant to purchase 100,000 shares of the Company’s common stock at an exercise price of $0.15 per share.

25On June 12, 2020, we issued a total 1,564,245 shares of our common stock in exchange for $172,067 of our convertible debt and accrued interest to the holder of the debt. We relied on Section 3(a) (9) of the Securities Act of 1933, as amended.

On ~~May~~ 15June 18, 2020, we issued a total 1504,~~263,745~~ 957 shares of our common stock in exchange for $~~139~~55,~~012~~545 of our convertible debt and accrued interest to the holder of the debt. We relied on Section 3(a) (9) of the Securities Act of 1933, as amended.

On ~~May~~ 15June 21, 2020, we issued a ~~total~~convertible 4promissory note in the principle amount of $25,~~284,565~~000 to an accredited investor. The interest rate was 12%. The Holder of the note has the right to convert all or a portion of the principle and any accrued interest into shares of our common stock inat ~~exchange~~a ~~for~~per ~~$471,302~~share price equal to the lesser of (i) 15% below the average daily closing price of our ~~convertible~~common ~~debt~~stock for the immediately preceding twenty (20) business days or (ii) $0.11. The principal amount and any accrued but unpaid interest tounder the ~~holder~~note ofshall ~~the~~be ~~debt.~~due Weand ~~relied~~payable on ~~Section~~the 3earliest to occur (ai) the date which is twelve months from the effective date of the note or (9ii) the receipt by the Company of payment on its account receivable owed to it by Universal Health Care, Inc. and Universal Health Care Insurance Company, which accounts receivable is currently being processed in the ~~Securities~~matter ~~Act~~of The Receivership of ~~1933~~Universal Health Care, asInc., ~~amended~~a Florida corporation and The Receivership of Universal Health Care Insurance Company, Inc., a Florida corporation under case numbers 2013-CA and 2013-CA, respectively. The Company also granted to the purchaser a five-year warrant to purchase 50,000 shares of the Company’s common stock at an exercise price of $0.15 per share.

On ~~May~~ 15July 02, 2020, we issued a total 7765,~~210,168~~ 399 shares of our common stock in exchange for $~~793~~84,~~118~~194 of our convertible debt and accrued interest to the holder of the debt. We relied on Section 3(a) (9) of the Securities Act of 1933, as amended.

On ~~May~~ 18July 22, 2020, we issued a ~~total~~convertible ~~700,751~~promissory note ~~shares~~(the “Note”)in the principle amount of ~~our~~$56,180 ~~common~~with ~~stock~~an inoriginal ~~exchange~~issue ~~for~~discount of $773,~~083~~180. ofThe ~~our~~Note ~~convertible~~matures ~~debt~~on July 1, 2021, and ~~accrued~~ the interest torate is 22 %. This Note may not be prepaid in whole or in part except as follows. Should the ~~holder~~Note be prepaid within the first ninety days from the date of issuance, the ~~debt.~~prepayment Wepercentage ~~relied~~is onone ~~Section~~hundred 3and twenty-five (a125%) per cent of the outstanding principal and any accrued and unpaid interest. For the next ninety days the Note may be prepaid and the prepayment percentage is one hundred thirty (9130%) per cent of the ~~Securities~~outstanding ~~Act~~principal ofand ~~1933~~any accrued and unpaid interest. Thereafter, asthe ~~amended~~Note may not be prepaid.

On May 21, 2020, we issued a total 502,434 shares of our common stock in exchange for $55,268 of our convertible debt and accrued interest to the holder of the debt. We relied on Section 3(a) (9) of the Securities Act of 1933, as amended.26

On ~~May~~ 22September 30, 2020, we issued a convertible promissory note in the principle amount of $25,000 to an accredited investor. The interest rate was 12%. The Holder of the note has the right to convert all or a portion of the principle and any accrued interest into shares of our common stock at a per share price equal to the lesser of (i) 15% below the average daily closing price of our common stock for the immediately preceding twenty (20) business days or (ii) $0.1104. The principal amount and any accrued but unpaid interest under the note shall be due and payable on the earliest to occur (i) the date which is twelve months from the effective date of the note or (ii) the receipt by the Company of payment on its account receivable owed to it by Universal Health Care, Inc. and Universal Health Care Insurance Company, which accounts receivable is currently being processed in the matter of The Receivership of Universal Health Care, Inc., a Florida corporation and The Receivership of Universal Health Care Insurance Company, Inc., a Florida corporation under case numbers 2013-CA and 2013-CA, respectively. The Company also granted to the purchaser a five-year warrant to purchase 50,000 shares of the Company’s common stock at an exercise price of $0.1504 per share.

~~On May~~All ~~25,~~of ~~2020,~~the weconvertible promissory notes listed above were issued ato ~~total~~accredited ~~319~~investors,~~627~~ ~~shares~~as ofthat ~~our~~term ~~common~~is ~~stock~~defined inunder ~~exchange~~the ~~for~~Section ~~$35,159~~501 of ~~our~~Regulation ~~convertible~~D, ~~debt~~promulgated ~~and~~under ~~accrued~~the ~~interest~~Securities toAct ~~the holder~~ of ~~the~~1933, ~~debt~~as amended. WeThe ~~relied~~warrants onissued ~~Section~~in ~~3(a)~~connection ~~(9)~~with of the ~~Securities~~promissory ~~Act~~notes ofall ~~1933,~~have asa ~~amended~~cashless exercise feature.

On ~~May~~ 25March 22, 2020, we issued a50,000 ~~total~~warrants to ~~333,824~~a ~~shares~~member of our ~~common~~Medical ~~stock~~Advisory ~~in exchange for $36~~Board,~~721~~ ofan ~~our~~accredited ~~convertible~~investor. ~~debt~~The ~~and~~warrants ~~accrued interest~~have toa ~~the~~term ~~holder~~ of ~~the~~three ~~debt.~~years Weand ~~relied~~an onexercise ~~Section 3(a) (9)~~ price of ~~the~~$0.25 ~~Securities~~per ~~Act of 1933, as amended~~warrant.

On ~~May~~ 26March 31, 2020, we issued ~~a convertible promissory note in the principle amount of $100~~169,~~000~~551 ~~to an accredited investor. The interest~~warrants ~~rate was 12%. The Holder of the note has the right~~ to ~~convert all or a portion of the principle and any accrued interest into shares of~~ our ~~common~~Chief ~~stock~~Executive atOfficer ain ~~per~~lieu ~~share price equal to the lesser~~ of ~~(i)~~2020 ~~15%~~first ~~below~~quarter ~~the average daily closing price of our common stock for the immediately preceding twenty (20) business days or (ii) $0~~salary.~~11.~~ The ~~principal~~warrants ~~amount~~have and any accrued but unpaid interest under the note shall be due and payable on the earliest to occur (i) the date which is twelve months from the effective date of the note or (ii) the receipt by the Company of payment on its account receivable owed to it by Universal Health Care, Inc. and Universal Health Care Insurance Company, which accounts receivable is currently being processed in the matter of The Receivership of Universal Health Care, Inc., a ~~Florida~~term ~~corporation and The Receivership~~ of ~~Universal~~five ~~Health~~years ~~Care Insurance Company, Inc., a Florida corporation under case numbers 2013-CA~~ and ~~2013-CA, respectively. The Company also granted to the purchaser a five-year warrant to purchase 200,000 shares of the Company’s common stock at~~ an exercise price of $0.1539 per ~~share~~warrant.

26On April 14, 2020, we issued 96,058 warrants to a promissory note holder, an accredited investor, in lieu of interest. The warrants have a term of five years and an exercise price of $0.19 per warrant. The warrant has a cashless feature.

On ~~May~~ 26April 19, 2020, we issued a50,000 ~~total~~warrants to ~~781,206~~a ~~shares~~member of our ~~common~~Medical ~~stock~~Advisory ~~in exchange for $85~~Board,~~933~~ ofan ~~our~~accredited ~~convertible~~investor. ~~debt~~The ~~and~~warrants ~~accrued interest~~have toa ~~the~~term ~~holder~~ of ~~the~~three ~~debt.~~years Weand ~~relied~~an onexercise ~~Section 3(a) (9)~~ price of ~~the~~$0.25 ~~Securities~~per ~~Act of 1933, as amended~~warrant.

On ~~May~~ 28April 21, 2020, we issued ~~a total 884~~101,~~555~~599 ~~shares~~warrants to ofa ~~our~~promissory ~~common~~note ~~stock~~holder in exchange ~~for~~of ~~$97~~their notes,~~301~~ ofprincipal ~~our~~amount ~~convertible~~plus ~~debt~~accrued and ~~accrued~~ unpaid interest. toThe ~~the~~warrants ~~holder~~have a term of ~~the~~five ~~debt.~~years Weand ~~relied~~an onexercise ~~Section~~price ~~3(a) (9)~~ of ~~the~~$0.25 ~~Securities~~per ~~Act of 1933, as amended~~warrant.

On ~~May~~ 29April 21, 2020, we issued ~~a total 937~~230,~~116~~630 ~~shares~~warrants to ofa ~~our~~promissory ~~common~~note ~~stock~~holder in exchange ~~for~~of ~~$103~~their notes,~~083~~ ofprincipal ~~our~~amount ~~convertible~~plus ~~debt~~accrued and ~~accrued~~ unpaid interest. toThe ~~the~~warrants ~~holder~~have a term of ~~the~~five ~~debt.~~years Weand ~~relied~~an onexercise ~~Section~~price ~~3(a) (9)~~ of ~~the~~$0.25 ~~Securities~~per ~~Act of 1933, as amended~~warrant.

On ~~June~~ 1April 21, 2020, we issued a146,811 ~~convertible~~warrants to a promissory note ~~(the~~holder ~~"Note”)~~in ~~the~~exchange ~~principle amount~~ of ~~$56,180~~their ~~with an original issue discount of $3~~notes,~~180.~~ ~~The~~principal ~~Note~~amount ~~matures~~plus onaccrued ~~June 1, 2021,~~ and ~~the~~unpaid interest ~~rate is 10%~~. ~~This~~The ~~Note~~warrants ~~may~~have ~~not be prepaid in whole~~a orterm ~~in part except as follows. Should the Note be prepaid within the first ninety days from the date~~ of ~~issuance,~~five ~~the~~years ~~prepayment percentage is one hundred~~ and ~~twenty-five~~an ~~(125%)~~exercise ~~per~~price ~~cent~~ of ~~the outstanding principal and any accrued and unpaid interest~~$0.25 ~~For the next ninety days the Note may be prepaid and the prepayment percentage is one hundred thirty (130%)~~ per ~~cent of the outstanding principal and any accrued and unpaid interest~~warrant. ~~Thereafter, the Note may not be prepaid.~~

On ~~June~~ 1April 21, 2020, we issued ~~a total~~ 1,~~024~~589,~~189~~044 ~~shares~~warrants to ofa ~~our~~promissory ~~common~~note ~~stock~~holder in exchange ~~for~~of ~~$112~~their notes,~~661~~ ofprincipal ~~our~~amount ~~convertible~~plus ~~debt~~accrued and ~~accrued~~ unpaid interest. toThe ~~the~~warrants ~~holder~~have a term of ~~the~~five ~~debt.~~years Weand ~~relied~~an onexercise ~~Section~~price ~~3(a) (9)~~ of ~~the~~$0.25 ~~Securities~~per ~~Act of 1933, as amended~~warrant.

On ~~June~~ 5April 21, 2020, we issued ~~a total 668~~368,~~797~~804 ~~shares~~warrants to ofa ~~our~~promissory ~~common~~note ~~stock~~holder in exchange ~~for~~of ~~$73~~their notes,~~568~~ ofprincipal ~~our~~amount ~~convertible~~plus ~~debt~~accrued and ~~accrued~~ unpaid interest. toThe ~~the~~warrants ~~holder~~have a term of ~~the~~five ~~debt.~~years Weand ~~relied~~an onexercise ~~Section~~price ~~3(a) (9)~~ of ~~the~~$0.25 ~~Securities~~per ~~Act of 1933, as amended~~warrant.

On ~~June~~ 5April 21, 2020, we issued ~~a total 603~~1,~~987~~589,044 ~~shares~~warrants to ofa ~~our~~promissory ~~common~~note ~~stock~~holder in exchange ~~for~~of ~~$66~~their notes,~~438~~ ofprincipal ~~our~~amount ~~convertible~~plus ~~debt~~accrued and ~~accrued~~ unpaid interest. toThe ~~the~~warrants ~~holder~~have a term of ~~the~~five ~~debt.~~years Weand ~~relied~~an onexercise ~~Section~~price ~~3(a) (9)~~ of ~~the~~$0.25 ~~Securities~~per ~~Act of 1933, as amended~~warrant.

On ~~June~~ 12April 21, 2020, we issued ~~a total~~ 1,~~564~~095,~~245~~253 ~~shares~~warrants to ofa ~~our~~promissory ~~common~~note ~~stock~~holder in exchange ~~for~~of ~~$172~~their notes,~~067~~ ofprincipal ~~our~~amount ~~convertible~~plus ~~debt~~accrued and ~~accrued~~ unpaid interest. toThe ~~the~~warrants ~~holder~~have a term of ~~the~~five ~~debt.~~years Weand ~~relied~~an onexercise ~~Section~~price ~~3(a) (9)~~ of ~~the~~$0.25 ~~Securities~~per ~~Act of 1933, as amended~~warrant.

On ~~June~~ 18April 25, 2020, we issued a50,000 ~~total~~warrants to ~~504,957~~a ~~shares~~member of our ~~common~~Medical ~~stock~~Advisory ~~in exchange for $55~~Board,~~545~~ ofan ~~our~~accredited ~~convertible~~investor. ~~debt~~The ~~and~~warrants ~~accrued interest~~have toa ~~the~~term ~~holder~~ of ~~the~~three ~~debt.~~years Weand ~~relied~~an onexercise ~~Section 3(a) (9)~~ price of ~~the~~$0.25 ~~Securities~~per ~~Act of 1933, as amended~~warrant.

On June 21, 2020, we issued a convertible promissory note in the principle amount of $25,000 to an accredited investor. The interest rate was 12%. The Holder of the note has the right to convert all or a portion of the principle and any accrued interest into shares of our common stock at a per share price equal to the lesser of (i) 15% below the average daily closing price of our common stock for the immediately preceding twenty (20) business days or (ii) $0.11. The principal amount and any accrued but unpaid interest under the note shall be due and payable on the earliest to occur (i) the date which is twelve months from the effective date of the note or (ii) the receipt by the Company of payment on its account receivable owed to it by Universal Health Care, Inc. and Universal Health Care Insurance Company, which accounts receivable is currently being processed in the matter of The Receivership of Universal Health Care, Inc., a Florida corporation and The Receivership of Universal Health Care Insurance Company, Inc., a Florida corporation under case numbers 2013-CA and 2013-CA, respectively. The Company also granted to the purchaser a five-year warrant to purchase 50,000 shares of the Company’s common stock at an exercise price of $0.15 per share.27

27On May 1, 2020 we issued 50,000 warrants to a member of our Medical Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of $0.25 per warrant.

~~All of~~On ~~the~~May ~~convertible~~1, ~~promissory~~2020 ~~notes~~we ~~listed above were~~ issued ~~to accredited investors~~50,000 aswarrants ~~that term is defined under the Section~~to ~~501~~a member of ~~Regulation~~our D,Medical ~~promulgated~~Advisory ~~under the Securities Act of 1933~~Board, asan ~~amended~~accredited investor. The warrants ~~issued~~have ina ~~connection~~term ~~with~~of ~~the~~three ~~promissory notes~~years ~~all~~and ~~have~~an aexercise ~~cashless~~price ~~exercise~~of $0.25 ~~feature~~per warrant.

On ~~March~~ 22May 10, 2020, we issued 50,000 warrants to a member of our Medical Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of $0.25 per warrant.

On ~~March~~ 31May 11, 2020, we issued ~~169~~50,~~551~~000 warrants to ~~our~~a member ~~Chief~~of ~~Executive~~our ~~Officer~~Medical inAdvisory ~~lieu~~Board, ofan ~~2020~~accredited ~~first quarter salary~~investor. The warrants have a term of ~~five~~three years and an exercise price of $0.3925 per warrant.

On ~~April~~ 14May 19, 2020, we issued 9650,~~058~~000 warrants to a ~~promissory~~member ~~note~~of ~~holder,~~our anMedical ~~accredited~~Advisory ~~investor~~Board, inan ~~lieu~~accredited ~~of interest~~investor. The warrants have a term of ~~five~~three years and an exercise price of $0.1925 per warrant. ~~The warrant has a cashless feature.~~

On ~~April~~ 19June 3, 2020 we issued 50,000 warrants to a member of our Medical Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of $0.25 per warrant.

On ~~April~~ 21June 6, 2020, we issued ~~101~~50,~~599~~000 warrants to a ~~promissory~~member ~~note~~of ~~holder~~our inDental ~~exchange~~Advisory ~~of their notes~~Board, ~~principal~~an ~~amount~~accredited ~~plus accrued and unpaid interest~~investor. The warrants have a term of ~~five~~three years and an exercise price of $0.25 per warrant.

On ~~April~~ 21June 8, 2020, we issued ~~230~~50,~~630~~000 warrants to a ~~promissory~~member ~~note~~of ~~holder~~our inMedical ~~exchange~~Advisory ~~of their notes~~Board, ~~principal~~an ~~amount~~accredited ~~plus accrued and unpaid interest~~investor. The warrants have a term of ~~five~~three years and an exercise price of $0.25 per warrant.

On ~~April~~ 21June 8, 2020, we issued ~~146~~50,~~811~~000 warrants to a ~~promissory~~member ~~note~~of ~~holder~~our inMedical ~~exchange~~Advisory ~~of their notes~~Board, ~~principal~~an ~~amount~~accredited ~~plus accrued and unpaid interest~~investor. The warrants have a term of ~~five~~three years and an exercise price of $0.25 per warrant.

On ~~April~~ 21June 10, 2020, we issued 1200,~~589,044~~000 warrants to aour ~~promissory note holder in exchange of their notes, principal amount plus accrued and unpaid interest~~consultant. The warrants have a term of ~~five~~three years and an exercise price of $0.2535 per warrant.

On ~~April~~ 21June 11, 2020, we issued ~~368~~50,~~804~~000 warrants to a ~~promissory~~member ~~note~~of ~~holder~~our inDental ~~exchange~~Advisory ~~of their notes~~Board, ~~principal~~an ~~amount~~accredited ~~plus accrued and unpaid interest~~investor. The warrants have a term of ~~five~~three years and an exercise price of $0.25 per warrant.

On ~~April~~ 21June 14, 2020, we issued 150,~~589,044~~000 warrants to a ~~promissory~~member ~~note~~of ~~holder~~our inMedical ~~exchange~~Advisory ~~of their notes~~Board, ~~principal~~an ~~amount~~accredited ~~plus accrued and unpaid interest~~investor. The warrants have a term of ~~five~~three years and an exercise price of $0.25 per warrant.

On ~~April~~ 21June 20, 2020, we issued 150,~~095,253~~000 warrants to a ~~promissory~~member ~~note~~of ~~holder~~our inMedical ~~exchange~~Advisory ~~of their notes~~Board, ~~principal~~an ~~amount~~accredited ~~plus accrued and unpaid interest~~investor. The warrants have a term of ~~five~~three years and an exercise price of $0.25 per warrant.

On ~~April~~ 25June 22, 2020 we issued 50,000 warrants to a member of our Medical Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of $0.25 per warrant.

On ~~May~~ 1June 24, 2020 we issued 50,000 warrants to a member of our Medical Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of $0.25 per warrant.

~~On May 10, 2020 we issued 50,000 warrants to a member of our Medical Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of $0.25 per warrant.~~28

28On June 27, 2020 we issued 50,000 warrants to a member of our Medical Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of $0.25 per warrant.

On ~~May~~ 11June 30, 2020 we issued 50,000 warrants to a member of our Medical Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of $0.25 per warrant.

On ~~May~~ 19June 30, 2020 we issued 50,000 warrants to a member of our Medical Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of $0.25 per warrant.

On ~~June~~ 3July 01, 2020 we issued 50,000 warrants to a member of our Medical Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of $0.25 per warrant.

On ~~June~~ 6July 01, 2020 we issued 50,000 warrants to a member of our ~~Dental~~Medical Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of $0.25 per warrant.

On ~~June~~ 8July 01, 2020 we issued 50,000 warrants to a member of our Medical Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of $0.25 per warrant.

On ~~June~~ 8July 01, 2020 we issued 50,000 warrants to a member of our ~~Medical~~Dental Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of $0.25 per warrant.

On ~~June~~ 10July 06, 2020, we issued ~~200~~50,000 warrants to a member of our ~~consultant~~Medical Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of of $0.3525 per warrant.

On ~~June~~ 11July 25, 2020 we issued 50,000 warrants to a member of our ~~Dental~~Medical Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of $0.25 per warrant.

On ~~June~~ 14August 19, 2020 we issued 50,000 warrants to a member of our Medical Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of $0.25 per warrant.

On ~~June~~ 20August 31, 2020 we issued 50,000 warrants to a member of our Medical Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of $0.25 per warrant.

On ~~June~~ 22September 25, 2020 we issued 50,000 warrants to a member of our Medical Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of $0.25 per warrant.

~~On June~~We ~~24,~~relied ~~2020~~on weSection ~~issued~~4 ~~50,000~~(2) ~~warrants~~of tothe aSecurities Act ~~member~~ of ~~our~~1933, ~~Medical~~as ~~Advisory~~amended ~~Board,~~and anor ~~accredited~~Section ~~investor.~~501 ~~The~~of ~~warrants~~Regulation ~~have~~D ~~a term~~promulgated ofunder ~~three~~said ~~years~~Act ~~and~~as anthe ~~exercise~~exemption ~~price~~from ofregistration ~~$0.25~~under the ~~per warrant~~Act.

~~On June 24, 2020 we issued 50,000 warrants to a member of our Medical Advisory Board, an accredited investor. The warrants have a term of three years and an exercise price of $0.25 per warrant.~~29

~~On June~~Item ~~27, 2020 we issued 50,000 warrants to a member of our Medical Advisory Board, an accredited investor~~3. ~~The~~Defualts ~~warrants~~upon ~~have~~Senior ~~a term of three years and an exercise price of $0.25 per warrant.~~Securites

~~On June 30, 2020 we issued 50,000 warrants to a member of our Medical Advisory Board, an accredited investor~~None. ~~The warrants have a term of three years and an exercise price of $0.25 per warrant.~~

~~On June~~Item ~~30, 2020 we issued 50,000 warrants to a member of our Medical Advisory Board, an accredited investor~~4. ~~The~~Mine ~~warrants~~Safety ~~have a term of three years and an exercise price of $0.25 per warrant.~~Disclousures

~~We relied on Section 4 (2) of the Securities Act of 1933, as amended and or Section 501 of Regulation D promulgated under said Act as the exemption from registration under the Act~~None.

29Item 4T. Controls and Procedures

~~Item~~Our management is responsible for establishing 3and maintaining adequate internal control over our financial reporting. ~~Exhibits~~Internal control over financial reporting is a process designed to provide reasonable assurance to our management and board of directors regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles.

~~Documents~~Our internal control over financial reporting ~~filed~~includes those policies and procedures that (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions; (ii) provide reasonable assurance that transactions are recorded as ~~part~~necessary for preparation of ~~this~~our ~~Report~~financial statements; (iii) provide reasonable assurance that receipts and expenditures of company assets are made in accordance with management authorization; and (iv) provide reasonable assurance that unauthorized acquisition, use or disposition of company assets that could have a material effect on our financial statements would be prevented or detected on a timely basis.

~~Exhibit 31.1~~Because ~~Advanzeon~~of ~~Solutions~~its inherent limitations, ~~Inc~~internal control over financial reporting may not prevent or detect misstatements. ~~CEO~~Also, ~~Certification~~projections ~~pursuant~~of any evaluation of effectiveness to ~~Section~~future ~~302~~periods ofare subject to the ~~Sarbanes-Oxley~~risk ~~Act~~that controls may become inadequate because changes in conditions may occur or the degree of ~~2002~~compliance with the policies or procedures may deteriorate.

~~Exhibit~~Our management assessed the effectiveness of ~~31.2~~our ~~Advanzeon~~internal ~~Solutions~~control over financial reporting as of September 30, ~~Inc~~2020. ~~CFO~~This ~~Certification~~evaluation ~~pursuant~~was tobased ~~Section~~on ~~302~~criteria set forth by the Committee of Sponsoring Organizations of the ~~Sarbanes~~Treadway Commission, or COSO, Internal Control-~~Oxley~~Integrated ~~Act~~Framework. Based upon such assessment, our CFO concluded that, as of ~~2002~~September 30, 2020, our internal controls over financial reporting were not optimally effective in the specific areas described in the paragraphs below.

~~Exhibit 32.1~~As ~~Advanzeon~~of ~~Solutions~~September 30, ~~Inc.~~2020, ~~CEO~~our ~~Certification~~CFO ~~pursuant~~identified the tofollowing 18specific ~~U.S.C.~~material ~~Section~~weaknesses ~~1350,~~in asthe ~~adopted~~Company’s ~~pursuant~~internal tocontrols ~~Section~~over ~~906~~its offinancial ~~the Sarbanes-Oxley~~reporting ~~Act of 2002~~processes:

Exhibit 32.2 Advanzeon Solutions, Inc. CFO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

	●	Policies and Procedures for the Financial Close and Reporting Process – During the period of this report, the Company’s policies or procedures did not clearly define the roles in the financial reporting process. The various roles and responsibilities related to this process should be defined, documented, updated and communicated. Not having clear policies and procedures in place amounts to a material weakness in the Company’s internal controls over its financial reporting processes.

	●	Representative with Financial Expertise – For six-month period ended June 30, 2020, the Company did not continuously have an employee with the requisite knowledge and expertise to review the financial statements and disclosures at a sufficient level to monitor the financial statements and disclosures to the Company. Failure to have, continuously, an employee with such knowledge and expertise amounts to a material weakness to the Company’s internal controls over its financial reporting processes.

~~SIGNATURES~~As a result of our retaining the services of an Outside Accountant in January 2018 and appointing an internal Company employee to interface with the Outside Accountant, we have instituted the following policies and procedures designed to address the material weaknesses cited above.

~~Pursuant~~ ● All billing invoices prepared by the billing department are sent to the ~~requirements~~Outside ofAccountant for review and approval before sending out to the ~~Securities~~customer. ~~Exchange~~● ~~Act~~Copies of ~~1934~~all incoming payable invoices are sent to the Outside Accountant for review, approval and data entry into the ~~registrant~~accounting system. That way Corporate Office has ~~duly~~the ~~caused~~originals ~~this~~and ~~report~~the outside accountants have duplicate copies. Accounts Payable Aging Report is sent once a week from the Outside Accountants to bethe ~~signed~~Corporate office. The Corporate office, along with Outside Accountants, decide on ~~its~~which ~~behalf by~~bills to pay weekly. Electronic payments have a duel control approval system (one person is initiating the ~~undersigned~~payment and another person is approving the payment). ● Paperwork on all customer invoices, ~~thereunto~~credit ~~duly~~card ~~authorized~~payments and check payments received at Corporate are copied and forwarded to Outside Accountants. Customer invoices are recorded daily. Customer payments received are recorded daily. Customer payments are reconciled with the bank on a daily basis. Aged Accounts Receivable Reports are sent to Corporate by the Outside Accountants with suggestions on a regular basis. ● All bank accounts are reconciled monthly. ● Financial Statements are prepared and reviewed monthly.

		Advanzeon Solutions, Inc.
		Registrant
Date: August 19, 2020	By:	/s/ Clark A. Marcus
		Clark A. Marcus,
		Chief Executive Officer
Date: August 19, 2020	By:	/s/ Arnold B. Finestone
		Arnold B. Finestone,
		Chief Financial Officer

The Company plans to further augment its addressing of material weaknesses, on an as-needed basis, by hiring additional accounting personnel once its initial corrective steps have been fully implemented, tested and found to be effective.

31Item 5. Other Information

None.

Item 6. Exhibits

Documents filed as part of this Report.

Exhibit 31.1 Advanzeon Solutions, Inc. CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 31.2 Advanzeon Solutions, Inc. CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 32.1 Advanzeon Solutions, Inc. CEO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Exhibit 32.2 Advanzeon Solutions, Inc. CFO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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.

		Advanzeon Solutions, Inc.
		Registrant

Date: September XX, 2021	By:	/s/ Clark A. Marcus
		Clark A. Marcus,
		Chief Executive Officer

Date: September XX, 2021	By:	/s/ Arnold B. Finestone
		Arnold B. Finestone,
		Chief Financial Officer

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