News Column

First Choice Healthcare Reports Record Revenue and Second Quarter 2014 Results

August 14, 2014

MELBOURNE, FL -- (Marketwired) -- 08/14/14 -- First Choice Healthcare Solutions, Inc.(OTCQB: FCHS) ("FCHS" or "First Choice"), a diversified holding company focused on delivering clinically superior, patient-centric, multi-specialty care through state-of-the-art medical centers of excellence, today announced its second quarter financial results for the three and six months ended June 30, 2014.

Q2 2014 Financial Summary

•43% increase in total revenue to $2,107,164 for the second quarter ended June 30, 2014 as compared to $1,469,570 for the same period in 2013 driven by growth in net patient service revenue from the Medical Center of Excellence, FCMG •For the three months ended June 30, 2014, the Company's wholly owned subsidiary (Medical Division), First Choice Medical Group of Brevard, experienced a 53% increase in revenue to $1,848,441 from $1,208,813 for the same period of last year in its Medical Center of Excellence•Other operating expenses increased 38% for the three months ended June 30, 2014 to $427,056, as compared to $308,414 for the same period in the prior year due to the hiring of additional physicians and their support staff which occurred in the fourth quarter of 2013 •General and administrative expenses for the three months ended June 30, 2014 were $669,208, as compared to $347,326 for the same period in the prior year, and was attributed to expenses related to the Company's growth and capital restructuring •For the three months ended June 30, 2014, net loss was $(448,571), or $0.03 per share, as compared to a net loss of $(120,392), or $0.01 loss per share, for the same period in the prior year. Additional expenses are attributable to investment in the Company's infrastructure to move forward with the growth of the business

Six Months Ended June 30, 2014 Financial Summary

•51% increase in total revenue to $4,341,917 for the six months ended June 30, 2014, up from $2,871,251 over the same period of 2013 driven by growth in net patient service revenue from the Medical Center of Excellence, FCMG •For the six months ended June 30, 2014, the Company's wholly owned subsidiary (Medical Division), First Choice Medical Group of Brevard, experienced a 63% increase in revenue to $3,821,271 from $2,343,825 for the same period of last year in its Medical Center of Excellence•Operating expenses increased 40% for the six months ended June 30, 2014 to $856,347, as compared to $612,889 for the same period in the prior year due to the hiring of additional physicians and their support staff which occurred in the fourth quarter of 2013 •General and administrative expenses for the six months ended June 30, 2014 was $1,075,120, as compared to $600,345 for the same period in the prior year, and was attributed to expenses related to the Company's growth and capital restructuring •For the six months ended June 30, 2014, net loss was $(483,670), or $0.03 per share, as compared to a net loss of $(375,461), or $0.03 loss per share, for the same period in the prior year. Additional expenses are attributable to investment in the Company's infrastructure to move forward with the growth of the business •As of June 30, 2014, the Company had cash and restricted cash totaling approximately $352,265 and accounts receivable of $2.05 million

Chris Romandetti, Chairman, President and Chief Executive Officer of First Choice, noted, "During the second quarter of 2014, we continued to invest in the infrastructure for our future growth and profitability. We are excited to see the momentum pick up as we reported a 51% year-over-year growth for the six months ended June 30, 2014 which consists of a 63% growth in our core operating business in net patient service from our wholly owned subsidiary, the Medical Center of Excellence, FCMG. Our top line revenue has generated double digit increases, and revenue from operations show strong, positive growth. In addition, we are very pleased that our EBITDA remains positive for the six months ended June 30, 2014 at $255,623. Our Real Estate Division, The Marina Towers, remain consistently strong with a 95% occupancy of our Class A, six story professional office building located in Melbourne, Florida. We are committed to revenue generation and prudent financial oversight and are optimistic that we will be able to execute our expansion strategy as our resources allow."

[FINANCIAL CHARTS TO FOLLOW]


FIRST CHOICE HEALTHCARE SOLUTIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS June 30, December 31, 2014 2013 ------------- ------------- (unaudited) ASSETS Current assets Cash $ 70,812$ 739,158 Cash-restricted 281,453 256,246 Accounts receivable 2,055,245 1,272,155 Prepaid and other current assets 225,624 140,580 Capitalized financing costs, current portion 57,348 57,348 ------------- ------------- Total current assets 2,690,482 2,465,487 ------------- ------------- Property, plant and equipment, net of accumulated depreciation of $2,210,618 and $1,959,127 8,498,548 8,662,057 ------------- ------------- Other assets Capitalized financing costs, long term portion 90,169 131,540 Patient list, net of accumulated amortization of $40,000 and $35,000 255,000 265,000 Patents 286,500 286,500 Deposits 2,713 2,713 ------------- ------------- Total other assets 634,382 685,753 ------------- ------------- Total assets $ 11,823,412$ 11,813,297 ============= ============= LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities Accounts payable and accrued expenses $ 818,417$ 459,000 Stock based payable 96,000 166,340 Line of credit, short term 1,000,000 800,000 Convertible note payable, short term portion 915,412 - Notes payable, current portion 781,999 743,787 Unearned revenue 50,854 74,934 ------------- ------------- Total current liabilities 3,662,682 2,244,061 ------------- ------------- Long term debt: Deposits held 72,901 72,901 Convertible note payable, long term portion 1,317,066 2,347,403 Notes payable, long term portion 8,515,934 8,935,473 ------------- ------------- Total long term debt 9,905,901 11,355,777 ------------- ------------- Total liabilities 13,568,583 13,599,838 ------------- ------------- Stockholders' deficit Preferred stock, $0.01 par value; 1,000,000 shares authorized, Nil issued and outstanding - - Common stock, $0.001 par value; 100,000,000 shares authorized, 17,385,947 and 16,747,248 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively 17,386 16,747 Additional paid in capital 12,084,650 11,560,249 Accumulated deficit (13,847,207) (13,363,537) ------------- ------------- Total stockholders' deficit (1,745,171) (1,786,541) ------------- ------------- Total liabilities and stockholders' deficit $ 11,823,412$ 11,813,297 ============= ============= FIRST CHOICE HEALTHCARE SOLUTIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three months ended Six months ended June 30, June 30, 2014 2013 2014 2013 ----------- ----------- ----------- ----------- Revenues: Patient Service Revenue $ 1,885,569$ 1,208,813$ 3,896,543$ 2,343,825 Provision for bad debts (37,128) - (75,272) - ----------- ----------- ----------- ----------- Net patient service revenue less provision for bad debts 1,848,441 1,208,813 3,821,271 2,343,825 Rental Revenue 258,723 260,757 520,646 527,426 ----------- ----------- ----------- ----------- Total Revenue 2,107,164 1,469,570 4,341,917 2,871,251 Operating expenses: Salaries & Benefits 1,090,806 641,789 2,156,327 1,264,548 Other Operating expenses 427,056 308,414 856,347 612,889 General & Administrative 669,208 347,326 1,075,120 600,345 Depreciation and amortization 126,772 126,805 261,491 249,425 ----------- ----------- ----------- ----------- Total operating expenses 2,313,842 1,424,334 4,349,285 2,727,207 ----------- ----------- ----------- ----------- Net (loss) income from operations (206,678) 45,236 (7,368) 144,044 Other income (expense): Miscellaneous income 750 813 1,500 1,563 Gain on change in fair value of derivative liability - 229,631 - 188,982 Amortization Financing costs (25,466) (14,337) (41,372) (28,674) Interest expense, net (217,177) (381,735) (436,430) (681,376) ----------- ----------- ----------- ----------- Total other income (expense) (241,893) (165,628) (476,302) (519,505) ----------- ----------- ----------- ----------- Net loss before provision for income taxes (448,571) (120,392) (483,670) (375,461) Income taxes (benefit) - - - - ----------- ----------- ----------- ----------- NET LOSS $ (448,571)$ (120,392)$ (483,670)$ (375,461) =========== =========== =========== =========== Net loss per common share, basic and diluted $ (0.03)$ (0.01)$ (0.03)$ (0.03) =========== =========== =========== =========== Weighted average number of common shares outstanding, basic and diluted 16,988,149 12,841,154 16,873,038 12,796,777 =========== =========== =========== ===========




About First Choice Healthcare Solutions, Inc.

Headquartered in Melbourne, Florida, First Choice Healthcare Solutions (FCHS) is actively engaged in developing a network of multi-specialty medical centers of excellence throughout the southeastern U.S., which are distinguished as premier destinations for clinically superior, patient-centric care. Through its wholly owned subsidiary FCID Medical, Inc., the Company currently operates one Medical Center of Excellence, First Choice Medical Group of Brevard, which specializes in the delivery of musculoskeletal medicine and rehabilitative care. FCHS' commercial real estate interests, which house its medical centers of excellence, are managed by its wholly owned subsidiary, FCID Holdings, Inc. For more information, please visit www.myfchs.com or www.myfcmg.com.

Safe Harbor Statement

Certain information set forth in this news announcement may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of First Choice Healthcare Solutions, Inc. Such forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management beliefs and certain assumptions made by its management. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Information concerning factors that could cause the Company's actual results to differ materially from those contained in these forward-looking statements can be found in the Company's periodic reports on Form 10-K and Form 10-Q, and in its Current Reports on Form 8-K, filed with the Securities and Exchange Commission. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise to reflect future events or circumstances or reflect the occurrence of unanticipated events.

For further investor information contact: Robert Haag Managing Partner IRTH Communicationsfchs@irthcommunications.com 1-866-976-4784



Source: First Choice Healthcare Solutions, Inc.


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