HASCO Medical, Inc.

On July 30, 2015, Hasco Medical completed the acquisition of Access2Life – Waco, Texas pursuant to an Asset Purchase Agreement, dated as of July 30, 2015. The Access2Life location is now a wholly-owned subsidiary of Hasco Medical and will operate under the Ride-Away, Inc name. Under the terms of the Asset Purchase Agreement, Hasco paid $238,108 in cash for all assets of Access2Life - Waco. The purchase price was calculated as $103,108 for total assets and $135,000 for intangible assets – goodwill.

For the three months ended June 30, 2015, we reported revenues of $27,544,491 as compared to revenues of $23,992,175 for the three months ended June 30, 2014, an increase of $3,552,316 or approximately 14.8% over prior year.  This increase is due to the establishment and implementation of a Commercial Sales department and team within the Hasco companies which resulted in a significant increase in product sales through commercial customers and increased demand in this quarter due to inclement weather in the first quarter.

Product sales for the three months ended June 30, 2015 and 2014 amounted to $23,542,058 and $19,656,944, respectively, an increase of $3,885,114 or 19.8%.  This increase is due to the establishment and implementation of a Commercial Sales department and team within the Hasco companies which resulted in a significant increase in product sales through commercial customers and increased demand in this quarter due to inclement weather in the first quarter.  Rental revenue for the three months ended June 30, 2015 and 2014 amounted to $330,937 and 312,593, respectively, an increase of $18,344 or 5.9%.  Service and other revenue for the three months ended June 30, 2015 and 2014 amounted to $3,671,496 and $4,022,638, respectively, a decrease of $351,142 or 8.7%.

For the six months ended June 30, 2015, we reported revenues of $47,006,236 as compared to revenues of $44,546,448 for the six months ended June 30, 2014, an increase of $2,459,788 or approximately 5.5%.  The increase is due to the increase in private pay business for van sales and the acquisition of Auto Mobility Sales.

General and Administrative Expense. For the six months ended June 30, 2015, general and administrative expenses were $6,910,675 as compared to $6,681,031for the six months ended June 30, 2014, an increase of $229,644. The increase is due to the additional rent and professional fees associated with the acquisition of business entities in 2014, additional personnel associated with the opening of Parkville, MD and Miami, Fl., and additions of staff in the accounting and sales departments as well as fully staffing the locations with management and sales personnel.