NOTE 1. OVERVIEW AND NATURE OF BUSINESS These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2018. Notes to the unaudited interim consolidated financial statements that would substantially duplicate the disclosures contained in the audited consolidated financial statements have been omitted. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles (?GAAP?). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and that effect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The unaudited interim consolidated financial statements reflect all adjustments consisting of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of the results for the periods shown. The unaudited interim consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue as a going concern. NOTE: The following notes and any further reference made to ?the Company?, "we", "us", "our" and "Parallax" shall mean Parallax Health Sciences, Inc., and its wholly-owned subsidiaries, Parallax Diagnostics, Inc., Parallax Health Management, Inc., and Parallax Behavioral Health, Inc. unless otherwise indicated. Business Overview The Company?s principal focus is on personalized patient care through remote healthcare services, behavioral health systems, and Point-of-Care (?POC?) diagnostic testing. Parallax?s current family of companies that serve as the foundation for its cross-over business model of operations include: ? Parallax Diagnostics, Inc. (?Parallax Diagnostics? or ?PDI?) acquired a proprietary Point-of-Care diagnostic immunoassay testing platform and 25 test cartridges for the areas of infectious diseases, cardiac markers, drugs of abuse and various other medical conditions. ? Parallax Health Management, Inc. (?PHM?) develops Remote Patient Monitoring (?RPM?) and telehealth market products and services, and commercializes them, including the Fotodigm  proprietary platform which allows for systems integration with a number of third-party services and solutions. ? Parallax Behavioral Health, Inc. (?PBH?) acquired the intellectual property known as REBOOT , the acronym for Reliable Evidence-Based Outcomes Optimization Technologies, as well as the Intrinsic Code technology, a software platform specifically designed to improve health treatment outcomes through cloud-based and mobile behavioral technology systems that enable its users and user groups to more effectively achieve goals within a prescribed timeline. Parallax Care is the Company?s technology-enabled digital healthcare system, structured with three separate divisions that can operate independently of one another, or integrate services to meet the various needs of the Company?s clientele: Optimized Outcomes, Connected Health and Smart Data. Each of these divisions target a separate vertical market that are synergistic, compliment, and strengthen each other. Optimized Outcomes REBOOT / COMPASS Behavioral modification Connected Health Fotodigm  platform Remote patient monitoring, telehealth, and POC diagnostic testing Smart Data Intrinsic Code technology Actionable insights to behavior modification Operating Segments The Company?s operations include the following operating segments for financial statement presentation: Remote Patient Monitoring (RPM), Behavioral Health Services (BHS), and Diagnostics/Corporate. ? Remote Patient Monitoring The Company provides a distinctive technology platform that provides for the complete remote patient care delivery system: the patent-pending Fotodigm  platform, which utilizes proprietary software and technology to bridge clinical behavioral science with technology and logistics for payers, providers and clinical professionals across a variety of wellness and clinical devices, including both fitness and clinical applications. Fotodigm  is a secure and scalable platform for collecting, transmitting and analyzing biometric, pharmaceutical, and health data to healthcare providers, primarily hospitals, accredited nursing operations, and physicians. The RPM segment generates revenues through fees charged for the license and utilization of its proprietary system that provides software integrations of the Fotodigm  platform. Additionally, the RPM segment will generate incremental revenues through the delivery of acute, post-acute and chronic health patient management software systems that enable Parallax customers to bill for and collect payments from patients and third-party payers for telemonitoring and remote services that they deliver. ? Behavioral Health Services The BHS segment commenced with the acquisition of the REBOOT and Intrinsic Code technologies in April 2017. The BHS segment will generate revenues primarily through licensing and subscription of software and systems. As of September 30, 2019, the BHS segment had not yet begun full operations, generating limited test market sales. ? Diagnostics/Corporate The Diagnostics/Corporate Segment supports the costs and operating expenses related to the continued development and exploitation of the Company?s proprietary Target System POS diagnostic platform and processes. In addition, the Diagnostics/Corporate Segment provides management and administrative services to support the Company and consists of certain aspects of the Company?s executive management, corporate relations, legal, compliance, human resources, corporate information technology and finance departments. Going Concern The Company has incurred losses since inception resulting in an accumulated deficit of $25,649,201, and a working capital deficit of $5,122,225, and further losses are anticipated. The Company?s ability to continue as a going concern is dependent upon its ability to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due, which may not be available at commercially reasonable terms. There can be no assurance that the Company will be able to continue to raise funds, in which case the Company may be unable to meet its obligations and the Company may cease operations. These factors, among others, raise substantial doubt about the Company?s ability to continue as a going concern. The Company will require additional financing in order to proceed with its plan of operations, including approximately $3,000,000 over the next 12 months to pay for its ongoing expenses. These cash requirements include working capital, general and administrative expenses, the development of the Company?s product line, and the pursuit of acquisitions. These cash requirements are in excess of the Company?s current cash and working capital resources. Accordingly, the Company will require additional financing in order to continue operations and to repay its liabilities. There is no assurance that the financing will be completed as planned or at all. If the Company is unable to secure adequate capital to continue the Company?s planned operations, the Company?s shareholders may lose some or all of their investment and the Company?s business may fail.