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Document and Entity Information

v2.4.0.6
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2011
Apr. 16, 2012
Document Information [Line Items]    
Document Type 10-K  
Amendment Flag false  
Document Period End Date Dec. 31, 2011  
Document Fiscal Year Focus 2011  
Document Fiscal Period Focus FY  
Entity Registrant Name Targeted Medical Pharma, Inc.  
Entity Central Index Key 0001420030  
Current Fiscal Year End Date --12-31  
Entity Well-known Seasoned Issuer No  
Entity Current Reporting Status Yes  
Entity Voluntary Filers Yes  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   21,949,576
Entity Public Float $ 0  

CONSOLIDATED BALANCE SHEETS

v2.4.0.6
CONSOLIDATED BALANCE SHEETS (USD $)
Dec. 31, 2011
Dec. 31, 2010
Current Assets:    
Cash and Cash Equivalents $ 147,364 $ 795,914
Investments   244,416
Inventory 495,821 365,350
Accounts Receivable - Net of Allowance for Doubtful Accounts 899,493 455,458
Loans Receivable - Employees 23,360 29,738
Prepaid Expenses - Short Term 1,033,509 [1] 280,989 [1]
Deferred Tax Asset - Short Term 300,170 30,773
Total Current Assets 2,899,717 2,202,638
Long Term Accounts Receivable      
Property and Equipment - Net of Accumulated Depreciation 411,823 535,488
Intangible Assets - Net of Accumulated Amortization 2,387,801 2,201,690
Prepaid Expenses - Long Term 111,259 202,073
Deferred Tax Asset - Long Term 2,951,857 696,331
Other Assets 26,000 26,000
Total Assets 8,788,457 5,864,220
Liabilities:    
Accounts Payable and Accrued Expenses 5,035,086 1,558,814
Notes Payable-Related Parties net of $566,439 discount on warrants issued 1,775,561 300,000
Other Amounts due to Related Parties 602,948  
Taxes Payable      
Deferred Tax Liability - Current 171,577 171,577
Total Current Liabilities 7,585,172 2,030,391
Deferred Income Taxes 988,980 935,687
Total Liabilities 8,574,152 2,966,078
Shareholders' Equity:    
Preferred stock, $0.001 par value; 20,000,000 shares authorized, no shares issued and outstanding      
Common stock, $0.001 par value; 100,000,000 shares authorized, 21,949,576 and 18,308,576 shares issued and outstanding at December 31, 2011 and December 31, 2010, respectively 21,950 18,309
Additional Paid-In Capital 4,684,095 3,191,314
Accumulated Deficit (4,491,740) (314,690)
Accumulated Other Comprehensive Income (Loss)   3,209
Total Shareholders' Equity 214,305 2,898,142
Total Liabilities and Shareholders' Equity $ 8,788,457 $ 5,864,220
[1] Prepaid Expenses includes prepaid income taxes of $792,301 and $167,301 for the years ended December 31, 2011 and 2010 respectively

CONSOLIDATED BALANCE SHEETS (Parenthetical)

v2.4.0.6
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Dec. 31, 2011
Dec. 31, 2010
Notes Payable-Related Parties, discount on warrants issued $ 566,439 $ 566,439
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized 20,000,000 20,000,000
Preferred stock, shares issued      
Preferred stock, shares outstanding      
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares issued 21,949,576 18,308,576
Common stock, shares outstanding 21,949,576 18,308,576
Prepaid Expenses - Short Term, prepaid income taxes $ 792,301 $ 167,301

CONSOLIDATED STATEMENTS OF INCOME

v2.4.0.6
CONSOLIDATED STATEMENTS OF INCOME (USD $)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Revenues:    
Product Sales $ 8,282,734 $ 6,544,311
Service Revenue 526,934 1,078,166
Total Revenue 8,809,668 7,622,477
Cost of Product Sold 1,249,522 1,228,722
Cost of Services Sold 1,507,511 1,343,770
Total Cost of Sales 2,757,033 2,572,492
Total Gross Profit 6,052,635 5,049,985
Operating Expenses:    
Research and Development 163,081 320,106
Selling, General and Administrative 11,670,092 6,305,805
Total Operating Expenses 11,833,173 6,625,911
Net Income (Loss) before Other Income (5,780,538) (1,575,926)
Other Income and Expense:    
Interest Income (Expense) (875,783)  
Grant Income   733,439
Investment Income (Loss) 7,641 3,970
Total Other Income and (Expense) (868,142) 737,409
Net Income (Loss) before Taxes (6,648,680) (838,517)
Income Taxes      
Deferred Income Tax Expense (Benefit) (2,471,630) (4,087,920)
Net Income (Loss) before Comprehensive Income (4,177,050) 3,249,403
Unrealized Gain or (Loss) on Investments   1,530
Reclassification for losses included in Net Income (3,209) 3,659
Comprehensive Income (Loss) $ (4,180,259) $ 3,254,592
Basic Loss Per Share $ (0.19) $ 0.18
Diluted Loss Per Share $ (0.19) $ 0.18
Basic Weighted Average Number of Common Shares Outstanding 21,949,576 18,301,485
Diluted Weighted Average Number of Common Shares Outstanding 22,678,788 18,493,173

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

v2.4.0.6
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)
Total
Services
Existing Shell Shareholders In the Reorganization
Common Stock
Common Stock
Services
Common Stock
Existing Shell Shareholders In the Reorganization
Additional Paid-In Capital
Additional Paid-In Capital
Services
Additional Paid-In Capital
Existing Shell Shareholders In the Reorganization
Accumulated Deficit
Accumulated Other Comprehensive Income (Loss)
Beginning Balance at Dec. 31, 2009 [1] $ (489,955)     $ 18,314     $ 3,057,804     $ (3,564,093) $ (1,980)
Beginning Balance (in shares) at Dec. 31, 2009 [1]       18,313,455              
Stock Issued (in shares)         14,789            
Stock Issued   50,000     15     49,985      
Shares Retired(in shares)       (19,668)              
Shares Retired       (20)     20        
Reclassification of Gains to Net Income 3,659                    
Stock Option Expense 83,505           83,505        
Net Income (Loss) 3,249,403                 3,249,403  
Unrealized Gain on Investments 5,189                   5,189
Ending Balance at Dec. 31, 2010 2,898,142     18,309     3,191,314     (314,690) 3,209
Ending Balance (in shares) at Dec. 31, 2010       18,308,576              
Stock Issued (in shares)         16,000 3,625,000          
Stock Issued   40,800 (500,000)   16 3,625   40,784 (503,625)    
Reclassification of Gains to Net Income (3,209)                   (3,209)
Warrants Issued in connection with loans from related party 591,702           591,702        
Stock Option Expense 1,363,920           1,363,920        
Net Income (Loss) (4,177,050)                 (4,177,050)  
Ending Balance at Dec. 31, 2011 $ 214,305     $ 21,950     $ 4,684,095     $ (4,491,740)  
Ending Balance (in shares) at Dec. 31, 2011       21,949,576              
[1] The stockholders' equity has been recapitalized to give effect to the shares exchanged by existing shareholders pursuant to the merger agreement dated January 31, 2011, more fully discussed in Note 7 to these financial statements.

CONSOLIDATED STATEMENTS OF CASH FLOWS

v2.4.0.6
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Cash Flows from Operating Activities:    
Net Income (Loss) $ (4,177,050) $ 3,249,403
Adjustments:    
Depreciation and Amortization 457,824 328,257
Stock Option Compensation 1,363,918 83,505
Stock Issued for Services 40,800 50,000
Deferred Income Taxes (2,471,630) (4,087,920)
Bad Debts Expense      
Changes:    
Inventory (130,471) (12,464)
Accounts Receivable (444,035) (110,443)
Loans Receivable - Employees 6,378 93,699
Prepaid Expenses (661,703) (87,188)
Deferred Tax Asset (53,293) 3,634,917
Other Assets      
Accounts Payable and Accrued Expenses 3,430,379 1,148,770
Taxes Payable   (76,199)
Deferred Tax Liability 53,293 (3,634,937)
Net Cash Flows from Operating Activities (2,585,590) 579,400
Cash Flows from Investing Activities:    
Net Sales or (Purchases) of Investments 244,416 302,053
Acquisition of Intangible Assets (430,039) (510,188)
Purchases of Property and Equipment (82,285) (196,567)
Net Cash Flows from Investing Activities (267,908) (404,702)
Cash Flows from Financing Activities    
Proceeds from Issuance of Common Stock      
Notes Payable-Related Parties 1,602,000 300,000
Due to Related Parties 602,948  
Net Cash Flows from Financing Activities 2,204,948 300,000
Net Change in Cash and Cash Equivalents (648,550) 474,698
Cash and Cash Equivalents - Beginning of Year 795,914 321,216
Cash and Cash Equivalents - End of Period 147,364 795,914
Supplemental Disclosure of Cash Flow Information    
Interest Paid      
Interest Expense $ 10,400  

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)

v2.4.0.6
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $)
12 Months Ended
Dec. 31, 2011
Supplemental Disclosure of Non-Cash Investing and Financing Activities  
Note payable issued to Companies Founders in partial payment of stock purchase $ 440,000
Accrued Expenses related to stock purchase 60,000
Shares issued to existing shell shareholders in the reorganization $ 500,000

Business Activity

v2.4.0.6
Business Activity
12 Months Ended
Dec. 31, 2011
Business Activity

Note 1: Business Activity

 

TARGETED MEDICAL PHARMA, INC. (“Company”), also doing business as Physician Therapeutics (“PTL”), is a specialty pharmaceutical company that develops and commercializes nutrient- and pharmaceutical-based therapeutic systems. The Company also does business as Laboratory Industry Services (“LIS”), which is a facility for the performance of diagnostic testing. On July 30, 2007, the Company formed the wholly owned subsidiary, Complete Claims Processing, Inc. ("CCPI"), which provides billing and collection services on behalf of physicians for claims to insurance companies, governmental agencies and other medical payers.

 

Segment Information:

 

The Company had revenue outside of the United States of $455,200 and $191,800 for the years ended December 31, 2011 and 2010, respectively. The Company’s operations are organized into two reportable segments: TMP and CCPI.

 

· TMP: This segment includes PTL and LIS as described above. This segment develops and distributes nutrient based therapeutic products and distributes pharmaceutical products from other manufacturers through employed sales representatives and distributors. TMP also performs the administrative, regulatory compliance, sales and marketing functions of the corporation, owns the corporation’s intellectual property and is responsible for research and development relating to medical food products and the development of software used for the dispensation and billing of medical foods, generic and branded products. The TMP segment also manages contracts and chargebacks.

 

· CCPI: This segment provides point-of-care dispensing solutions and billing and collections services. It is responsible for the research and development of billing software and methodologies and the customization of hardware that supports dispensing, billing and collection operations.

  

Segment Information for the 12 months ended December 31,

 

2011   Total     TMP     CCPI  
Gross Sales   $ 8,809,668     $ 8,282,734     $ 526,934  
Gross Profit   $ 6,052,635     $ 7,033,212     $ (980,577 )
Comprehensive Income (Loss)   $ (4,180,259 )   $ (3,089,429 )   $ (1,090,830 )
Total Assets   $ 8,788,457     $ 12,655,205     $ (3,866,748 )
less Eliminations   $ -     $ (3,979,936 )   $ 3,979,936  
Net Total Assets   $ 8,788,457     $ 8,675,269     $ 113,188  
                         
2010 (Restated)