Full Press Release Details
PRABHU, LATA K. SHETE, M.D.s
PRABHU, LATA K. SHETE, M.D.
| PAGE NO. | ||
| INDEPENDENT AUDITORS' REPORT | 1 - 2 | |
| FINANCIAL STATEMENTS | ||
| Balance Sheets | 3 | |
| Statements of Income and Changes in Equity | 4 - 5 | |
| Statements of Cash Flows | 6 | |
| Notes to Financial Statements | 7 - 14 |
Report of Independent Auditors
R.D. Prabhu, Lata K. Shete, M.D.s, LTD d/b/a The Sleep Center of Nevada
Report on the Audit of the Financial Statements
We have audited the financial statements of R.D. Prabhu,
Lata K. Shete, M.D.s, LTD d/b/a/The Sleep Center of Nevada ("The Sleep Center of Nevada"), which comprise the balance sheets
as of December 31 2024, and 2023, and the related statements of operations and changes in stockholders' equity, and cash flows for
the years then ended, and the related notes to the financial statements.
In our opinion, the accompanying financial statements
present fairly, in all material respects, the financial position of The Sleep Center of Nevada as of December 31, 2024, and 2023, and
the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted
in the United States of America.
We conducted our audits in accordance with
auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further
described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to
be independent of The Sleep Center of Nevada and to meet our other ethical responsibilities, in accordance with the relevant ethical
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and
fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America,
and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate
whether there are conditions or events, considered in the aggregate, that raise substantial doubt about The Sleep Center of Nevada's
ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Auditor's Responsibilities for the
Audit of the Financial Statements
Our objectives are to obtain reasonable assurance
about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material
if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user
based on the financial statements.
In performing an audit in accordance with GAAS, we:
| Exercise professional judgment and maintain professional skepticism throughout the audit. | ||
| Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. | ||
| Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of The Sleep Center of Nevada's internal control. Accordingly, no such opinion is expressed. | ||
| Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. | ||
| Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about The Sleep Center of Nevada's ability to continue as a going concern for a reasonable period of time. |
We are required to communicate with those charged
with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control-related matters that we identified during the audit.
/s/ Baker Tilly US, LLP
Prabhu, Lata K. Shete, M.D.s, d/b/a The Sleep Center of Nevada
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 677,017 | $ | 767,095 | ||||
| Accounts Receivable, net | 774,507 | 866,904 | ||||||
| Employee Advances | 7,570 | 6,540 | ||||||
| Prepaid Expenses | 37,913 | - | ||||||
| Total Current Assets | 1,497,007 | 1,640,539 | ||||||
| PROPERTY AND EQUIPMENT, NET | 1,079,142 | 1,060,801 | ||||||
| OTHER ASSETS | ||||||||
| Financing Lease Right-Of-Use Asset | 220,308 | - | ||||||
| Operating Lease Right-of-Use Asset | 4,505,318 | 1,458,430 | ||||||
| Intangible Asset | 135,000 | - | ||||||
| Refundable Deposits | 10,443 | 10,383 | ||||||
| Total Other Assets | 4,871,069 | 1,468,813 | ||||||
| TOTAL ASSETS | $ | 7,447,218 | $ | 4,170,153 | ||||
| LIABILITIES & STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts Payable | $ | 52,840 | $ | 83,388 | ||||
| Accrued Payroll and Related Expenses | 193,695 | 142,000 | ||||||
| Current Portion of Operating Lease Liability | 653,400 | 274,987 | ||||||
| Total Current Liabilities | 899,935 | 500,375 | ||||||
| OTHER LIABILITIES | ||||||||
| Employee Retention Credit Liability | 1,683,904 | 1,683,904 | ||||||
| Long-term Portion of Financing Lease Liability | 172,167 | - | ||||||
| Long-term Portion of Operating Lease Liability | 3,953,363 | 1,166,421 | ||||||
| Total Long-term Liabilities | 5,809,434 | 2,850,325 | ||||||
| TOTAL LIABILITIES | 6,709,369 | 3,350,700 | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Common Stock: Authorized, 500,000 shares having $1 par value; issued and outstanding 2,204 shares | 1,000 | 1,000 | ||||||
| Additional Paid-In Capital | - | - | ||||||
| Retained Earnings | 736,849 | 818,453 | ||||||
| Total Shareholders' Equity | 737,849 | 819,453 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 7,447,218 | $ | 4,170,153 |
accompanying notes are an integral part of these financial statements
Prabhu, Lata K. Shete, M.D.s, d/b/a The Sleep Center of Nevada
Ended December 31, 2024 and 2023
| 2024 | 2023 | |||||||
| REVENUES | $ | 7,432,493 | $ | 7,096,354 | ||||
| GENERAL AND ADMINISTRATIVE EXPENSES | 6,703,029 | 6,685,172 | ||||||
| INCOME FROM OPERATIONS | 729,464 | 411,182 | ||||||
| OTHER INCOME AND (EXPENSES), NET | - | (332,846 | ) | |||||
| NET INCOME | $ | 729,464 | $ | 78,336 |
accompanying notes are an integral part of these financial statements
Prabhu, Lata K. Shete, M.D.s, d/b/a The Sleep Center of Nevada
of Shareholders' Equity
Ended December 31, 2024 and 2023
| Common Stock | Draws | Retained Earnings | Total Stockholders' Equity | |||||||||||||
| NA, incl. in RE | ||||||||||||||||
| Beginning Balance 1/1/2023 | $ | 1,000 | $ | - | $ | 4,085,372 | $ | 4,086,372 | ||||||||
| Owner Draws | - | - | (3,345,255 | ) | (3,345,255 | ) | ||||||||||
| Net income | - | - | 78,336 | 78,336 | ||||||||||||
| Ending Balance 12/31/2023 | 1,000 | - | 818,453 | 819,453 | ||||||||||||
| Owner Draws | - | (811,068 | ) | (811,068 | ) | |||||||||||
| Net Income | - | - | 729,464 | 729,464 | ||||||||||||
| Ending Balance 12/31/2024 | $ | 1,000 | $ | - | $ | 736,849 | $ | 737,849 |
accompanying notes are an integral part of these financial statements
Prabhu, Lata K. Shete, M.D.s, d/b/a The Sleep Center of Nevada
Ended December 31, 2024 and 2023
| 2024 | 2023 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net Income | $ | 729,464 | $ | 78,336 | ||||
| ADJUSTMENTS TO RECONCILE NET INCOME/(LOSS) TO CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES: | ||||||||
| Depreciation | 115,021 | 121,997 | ||||||
| Changes in: | ||||||||
| Accounts Receivable | 92,397 | (434,255 | ) | |||||
| Other Receivables | (1,030 | ) | (6,540 | ) | ||||
| Refundable Deposits | (60 | ) | (5,000 | ) | ||||
| Operating Lease Right-of-Use Asset | 492,394 | 271,009 | ||||||
| Prepaid Expenses | (37,913 | ) | - | |||||
| Accounts Payable | (30,548 | ) | 36,699 | |||||
| Employee Retention Credit Liability | - | 1,683,904 | ||||||
| Accrued Payroll and Burden | 51,695 | 33,365 | ||||||
| Operating Lease Liability | (421,596 | ) | (307,466 | ) | ||||
| Net cash provided by Operating Activities | 989,824 | 1,472,049 | ||||||
| CASH FLOWS USED FOR INVESTING ACTIVITIES | ||||||||
| Acquisition of Property and Equipment | (133,834 | ) | (82,049 | ) | ||||
| Additions to Intangibles | (135,000 | ) | - | |||||
| Net cash used in Investing Activities | (268,834 | ) | (82,049 | ) | ||||
| CASH FLOWS USED FOR FINANCING ACTIVITIES | ||||||||
| - | - | |||||||
| Distributions to Shareholders | (811,068 | ) | (3,345,255 | ) | ||||
| Net cash used in Financing Activities | (811,068 | ) | (3,345,255 | ) | ||||
| NET DECREASE IN CASH | (90,078 | ) | (1,955,255 | ) | ||||
| CASH AT BEGINNING OF YEAR | 767,095 | 2,722,350 | ||||||
| CASH AT END OF YEAR | $ | 677,017 | $ | 767,095 | ||||
| SUPPLEMENTAL NON-CASH TRANSACTIONS: | ||||||||
| Acquisition of Financing Lease Asset Liability | $ | 224,996 | $ | - | ||||
| Acquisition of Right of Use Operating Lease Asset/Liability | $ | 3,539,282 | $ | - |
accompanying notes are an integral part of these financial statements
PRABHU, LATA K. SHETE, M.D.s
TO FINANCIAL STATEMENTS
THE YEARS ENDED DECEMBER 31, 2024 and 2023
Prabhu, Lata K. Shete, M.D.s (the "Company") was incorporated, in the State of Nevada in October 1980. The Company provides
sleep disorder-related diagnoses to patients in six separate sleep centers and offices in Clark (Las Vegas) and Nye County, Nevada.
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
accompanying financial statements are prepared in conformity with generally accepted accounting principles in the United States of America
preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period.
Actual results could differ from those estimates. Management periodically evaluates estimates used in the preparation of the financial
statements for continued reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such
periodic evaluation. It is reasonably possible that changes may occur in the near term that would affect management's estimates
with respect to the allowance for credit losses, contractual adjustments, useful lives of its fixed assets, lease terms and discount
in estimated revenue from contracts are made in the year in which circumstances requiring the revision become probable.
AND CASH EQUIVALENTS
Company considers all highly liquid debt instruments with a maturity of three months or less to be cash equivalents. In the normal course
of business, the Company may maintain cash balances in excess of federal insurance limits.
receivable represent amounts due from customers in the ordinary course of business and are recorded at the invoiced amount and do not
bear interest. Accounts receivable are stated at the net amount expected to be collected, using an expected credit loss methodology to
determine the allowance for expected credit losses. We evaluate the collectability of its accounts receivable and determine the appropriate
allowance for expected credit losses based on a combination of factors, including the aging of the receivables, historical collection
trends, and charge-offs. When we are aware of a customer's inability to meet its financial obligation, we may individually evaluate
the related receivable to determine the allowance for expected credit losses. We use specific criteria to determine uncollectible receivables
to be charged off, including bankruptcy filings, the referral of customer accounts to outside parties for collection, and the length
that accounts remain past due.
PRABHU, LATA K. SHETE, M.D.s
TO FINANCIAL STATEMENTS
THE YEARS ENDED DECEMBER 31, 2024 and 2023
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated
lives of the property and equipment, which ranges from 5 to 39 years. Additions, renewals, and betterments that significantly extend
the life of the asset are capitalized. Expenditures for repairs and maintenance are charged to expense as incurred. For the years ended
December 31, 2024 and 2023, depreciation expense was $115,021 and $121,997, respectively and are included on the statements of
income in "General and Administrative Expenses".
property and equipment sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and
any related gain or loss is reflected in other income and expenses for the period.
assets consist of an asset acquired from a third-party which developed an application to be used by patients in the Company's operations.
The intangible asset was acquired in late 2024, with a final payment of $45,000 having been made in early 2025, and will be amortized
on a straight-line basis over the expected useful life of the asset, which approximates 10 years.