UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-QSB

 

x QUARTERLY REPORT UNDER SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2006

 

o TRANSITION REPORT UNDER SECTION 13 OR

15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission file number 000-33187

 

INSTACARE CORP.

(Exact name of small business issuer as specified in its charter)

 

Nevada

91-2105842

(State or other jurisdiction of incorporation or organization)

(IRS Employer Identification No.)

 

2660 Townsgate Road

Suite 300

Westlake Village, CA 91361

(Address of principal executive offices)

 

(805) 446-1973

(Issuer’s telephone number)

 

Copies of Communications to:

Stoecklein Law Group

402 West Broadway, Suite 400

San Diego, CA 92101

(619) 595-4882

Fax (619) 595-4883

 

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

 

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

 

The number of shares of Common Stock, $0.001 par value, outstanding on August 4, 2006, was 8,083,073 shares.

 

Transitional Small Business Disclosure Format (check one):    Yes o       No x

 

PART I -- FINANCIAL INFORMATION

 

Item 1. Financial Statements.

 

instaCare Corp.

Condensed Consolidated Balance Sheet

Unaudited

 

 

 

 

June 30,

2006

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

Cash and equivalents

$

125,157

 

Accounts receivable

 

660,341

 

Inventory

 

406,485

 

Prepaid expenses

 

40,364

 

 

Total current assets

 

1,232,347

 

 

 

 

 

Fixed assets, net

 

106,471

 

 

 

 

 

Other assets:

 

 

 

Deposits

 

3,412

 

 

Total other assets

 

3,412

 

 

 

 

 

 

 

 

 

1,342,230

 

 

 

 

 

Liabilities and Stockholders' (Deficit)

 

 

 

 

 

 

 

Current liabilities:

 

 

 

Accounts payable

 

34,500

 

Accrued expenses

 

181,932

 

Customer deposits

 

33,603

 

Notes payable

 

342,309

 

Convertible notes payable

 

1,150,267

 

 

Total current liabilities

 

1,742,611

 

 

 

 

 

 

 

 

 

 

Stockholders' (deficit):

 

 

 

Preferred stock, $0.001 par value, 3,249,000 shares

 

 

 

 

authorized, 207,526 shares issued and outstanding

 

208

 

Preferred series “A” stock. $0.001 par value, 750,000 shares

 

 

 

authorized, no shares issued and outstanding

 

-

 

Preferred series "C" stock, $0.001 par value, 1,000,000 shares

 

 

 

 

authorized, 20,000 shares issued and outstanding

 

20

 

Preferred series “D” stock, $0.001 par value, 1,000 shares

 

 

 

authorized, no shares issued and outstanding

 

-

 

Common stock, $0.001 par value, 1,750,000,000 shares authorized,

 

 

 

 

8,083,073 shares issued and outstanding

 

8,084

 

Unamortized warrants

 

(6,761)

 

Prepaid share-based compensation

 

(5,010)

 

Additional paid-in capital

 

15,603,594

 

Accumulated (deficit)

 

(16,000,516)

 

 

 

 

(400,381)

 

 

 

 

 

 

 

 

$

1,342,230

 

See notes to condensed consolidated financial statements.

1

 

instaCare Corp.

Condensed Consolidated Statement of Operations

Unaudited

 

 

 

 

For the three months ended

For the six months ended

 

 

 

June 30,

June 30,

 

 

 

2006

2005

2006

2005

 

 

 

 

 

RESTATED

 

 

RESTATED

 

 

 

 

 

 

 

 

 

 

 

Revenue, net

$

9,009,052

$

1,070,848

$

16,475,973

$

3,170,238

Cost of sales

 

8,841,707

 

861,152

 

15,649,527

 

2,763,893

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

167,345

 

209,696

 

826,446

 

406,345

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

Hardware costs

 

-

 

32,888

 

-

 

42,964

 

General & administrative expenses

 

146,072

 

137,740

 

274,441

 

250,436

 

Payroll expense

 

187,667

 

226,009

 

351,235

 

610,575

 

Professional fees

 

127,615

 

40,409

 

193,500

 

119,027

 

Consulting fees

 

51,323

 

144,705

 

125,648

 

461,385

 

Depreciation and amortization

 

39,581

 

13,136

 

147,497

 

26,273

 

Impairment loss on operating assets

 

-

 

-

 

-

 

1,167,717

 

 

Total expenses

 

552,258

 

594,887

 

1,092,321

 

2,678,377

 

 

 

 

 

 

 

 

 

 

 

Net operating (loss)

 

(384,913)

 

(385,191)

 

(265,875)

 

(2,272,032)

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Loss - related party

 

-

 

(151,282)

 

-

 

(287,343)

 

Interest income

 

-

 

5,485

 

-

 

9,016

 

Financing costs

 

(5,000)

 

(107,131)

 

(5,000)

 

(404,964)

 

Contingent legal fees

 

(90,000)

 

-

 

(90,000)

 

-

 

Interest expense

 

(104,024)

 

(85,500)

 

(183,297)

 

(134,199)

 

 

 

 

 

 

 

 

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