UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   ----------
                                   FORM 10-QSB

(Mark One)

              |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2004

                                       OR
             |_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

          For the transition period from            to

                         Commission File Number: 0-23511

                                   ----------

                      Integrated Healthcare Holdings, Inc.

        (Exact name of small business issuer as specified in its charter)

             Nevada                                       87-0412182
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation or organization)

 695 Town Center Drive, Suite 260, Costa Mesa, California               92626
         (Address of principal executive offices)                     (Zip Code)

                                 (714) 434-9191
                (Issuer's telephone number, including area code)

                             First Deltavision, Inc.
              (Former name, former address and former fiscal year,
                         if changed since last report)

                                   ----------

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes |X| No |_|

As of August 10, 2004, there were outstanding 19,730,000 shares of the issuer's
common stock, par value $0.0001 per share.

Transitional Small Business Disclosure Format (Check one): Yes |_|; No |X|

The accompanying condensed notes are an integral part of these unaudited
condensed consolidated financial statements


<PAGE>

                      Integrated Healthcare Holdings, Inc.
                                   FORM 10-QSB

                                Table of Contents
--------------------------------------------------------------------------------
                                                                          Page
                                                                         Number
PART I        FINANCIAL INFORMATION

Item 1.       Financial Statements:                                         1

              Unaudited Condensed Consolidated Balance Sheet as of
              June 30, 2004 and December 31, 2003                           2

              Unaudited Condensed Consolidated Statement of Operations
              for the three and six months ended June 30, 2004 and 2003     3

              Unaudited Condensed Consolidated Statement of Cash Flows
              for the six months ended June 30, 2004 and 2003               4

              Notes to Unaudited Condensed Consolidated Financial
              Statements                                                 5-11

Item 2.       Management's Discussion and Analysis or Plan of Operation    11

Item 3.       Controls and Procedures                                      13

PART II       OTHER INFORMATION                                            13

Item 1.       Legal Proceedings                                            13

Item 2.       Changes in Securities                                        13

Item 3.       Defaults Upon Senior Securities                              14

Item 4.       Submission of Matters to a Vote of Security Holders          14

Item 5.       Other Information                                            14

Item 6.       Exhibits and Reports on Form 8-K                             14

SIGNATURES                                                                 15
--------------------------------------------------------------------------------

                                      -i-

<PAGE>

PART I. FINANCIAL INFORMATION

         Item 1. Financial Statements.


                                       1

<PAGE>

                      INTEGRATED HEALTHCARE HOLDINGS, INC.
                         (A Development Stage Company)
                      Unaudited Consolidated Balance Sheet

<TABLE>
<CAPTION>
                                                                                June 30,         December 31,
                                                                                 2004              2003
                                                                              -----------        -----------
                                                                              (Unaudited)
                                     ASSETS
<S>                                                                           <C>                <C>
Current assets
      Cash and cash equivalents                                               $    18,005        $   265,000
                                                                              -----------        -----------
         Total current assets                                                      18,005            265,000
Property and equipment:
      Office equipment                                                             39,546             26,537
      Furniture and fixtures                                                       27,347             21,095
                                                                              -----------        -----------
                                                                                   66,893             47,632
      Accumulated depreciation                                                     (5,660)              (651)
                                                                              -----------        -----------
                                                                                   61,233             46,981
Intangible asset, net of accumulated
      amortization of $32,122 and $6,424                                           70,668             96,366
Due from shareholders                                                                  --             60,000
Deposits                                                                            7,794                 --
                                                                              -----------        -----------
      Total assets                                                            $   157,700        $   468,347
                                                                              ===========        ===========
                      LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
      Accounts payable                                                        $    20,126        $    15,727
      Accrued compensation and benefits                                           438,080                 --
      Notes payable to shareholders                                                60,000                 --
      Note payable                                                                     --            100,000
                                                                              -----------        -----------
       Total current liabilities                                                  518,206            115,727
Commitments and contingencies                                                          --                 --
Stockholders' equity:
      Common stock, $0.001 par value; 100,000,000 shares
          authorized; 19,630,000 and 19,380,000 shares issued
         and outstanding, respectively                                             19,580             19,380
      Additional paid in capital                                                  800,822            551,021
      Deficit accumulated during the development stage                         (1,180,908)          (217,781)
                                                                              -----------        -----------
         Total stockholders' equity                                              (360,506)           352,620
                                                                              -----------        -----------
Total liabilities and stockholders' equity                                    $   157,700        $   468,347
                                                                              ===========        ===========
</TABLE>


                                       2
<PAGE>


                      INTEGRATED HEALTHCARE HOLDINGS, INC.
                         (A Development Stage Company)
                 Unaudited Consolidated Statement of Operations

<TABLE>
<CAPTION>
                                                                Three Months Ended                      Six Months Ended
                                                         ---------------------------------       -----------------------------------
                                      Cumulative from
                                     inception (July 31,
                                     1984) through June       June 30,        June 30,             June 30,           June 30,
                                        30, 2004               2004            2003                  2004               2003
                                      (Unaudited)          (Unaudited)       (Unaudited)          (Unaudited)        (Unaudited)
                                      ------------        ------------        ------------        ------------        ------------
<S>                                   <C>                 <C>                 <C>                 <C>                 <C>
Revenue                               $         --        $         --        $         --        $         --        $         --
General and administrative expenses      1,140,521             430,608              17,818             922,740              19,797
                                      ------------        ------------        ------------        ------------        ------------
Loss from operations before provision
 for income taxes                       (1,140,521)           (430,608)            (17,818)           (922,740)            (19,797)

Provision for income taxes                      --                  --                  --                  --                  --
                                                                                                                      ------------
                                                                                                                      ------------
Net loss                              $ (1,140,521)       $   (430,608)       $    (17,818)       $   (922,740)       $    (19,797)
                                      ============        ============        ============        ============        ============
                                                                                                                      ------------
                                                                                                                      ------------
Basic and diluted net loss per share                      ($      0.02)       ($      0.01)       ($      0.05)       ($      0.02)
Weighted average shares outstanding                         19,590,000           1,342,000          19,510,778           1,342,000
</TABLE>

The accompanying condensed notes are an integral part of these unaudited
condensed consolidated financial statements


                                       3
<PAGE>

                      INTEGRATED HEALTHCARE HOLDINGS, INC.
                        (A Development Stage Enterprise)
                 Unaudited Consolidated Statement of Cash Flows

<TABLE>
<CAPTION>
                                                                                        Six Months Ended
                                                           Cumulative From
                                                          Inception (July 31,
                                                          1984) Through June      June 30,           June 30,
                                                                30, 2004            2004              2003
                                                              (Unaudited)        (Unaudited)        (Unaudited)
                                                              -----------        -----------        -----------
<S>                                                           <C>                <C>                <C>
Cash flows from operating activities:
Net loss                                                      $(1,140,521)       $  (922,740)       $   (19,797)
Adjustments to reconcile net loss to cash
 used in operating activities:
        Depreciation and amortization expense                      37,782             30,707                 --
    Noncash expense                                                39,255                 --                 --
    Stock issued for relief of debt                                 1,000                 --                 --
       Increase (decrease) in accounts payable                     10,126             (5,601)               500
    Increase in accrued compensation and benefits                 438,080            438,080                 --
    Increase in accounts payable - related parties                     --                 --             19,297
                                                              -----------        -----------        -----------
        Net cash used in operating activities                    (614,278)          (459,554)                --
                                                              -----------        -----------        -----------
Cash flows from investing activities:
          Purchase of property and equipment                      (66,892)           (19,260)                --
        Acquisition of Mogel Management Group Inc., net             8,534              8,534                 --
                                                              -----------        -----------        -----------
        Net cash used in investing activities                     (58,358)           (10,726)                --
Cash flows from financing activities:
    Proceeds from issuance of stock                               777,356            250,000                 --
    Repayment of promissory note                                 (100,000)          (100,000)                --
    Advances (to) from shareholders                                13,285             73,285                 --
                                                              -----------        -----------        -----------
     Net cash provided by financing activities                    690,641            223,285                 --
                                                              -----------        -----------        -----------
Net increase (decrease) in cash                                    18,005           (246,995)                --
Cash and cash equivalents, beginning of period                         --            265,000                 --
                                                              -----------        -----------        -----------
Cash and cash equivalents, end of period                      $    18,005        $    18,005        $        --
                                                              ===========        ===========        ===========
Supplemental cash flow information:
Cash paid for interest and income taxes                       $        --        $        --        $        --
Supplemental Schedule of Noncash Financing Activities:
Issuance of a promissory note and common stock
  in exchange for a letter of indemnification                 $   102,790        $        --        $        --
Issuance of promissory notes for acquisition
  of Mogel Management Group, Inc.                             $    60,000        $    60,000        $        --
</TABLE>


                                       4
<PAGE>


                      INTEGRATED HEALTHCARE HOLDINGS, INC.
                          (A Development Stage Company)
         Condensed Notes to Unaudited Consolidated Financial Statements
                                  June 30, 2004

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      Organization - Integrated Healthcare Holdings, Inc. ("the Company") was
organized under the laws of the State of Utah on July 31, 1984 under the name of
Aquachlor Marketing. The Company never engaged in business activities and was
suspended for failure to file annual reports and tax returns. In December 1988,
all required reports and tax returns were filed and the Company was reinstated
by the State of Utah. In December 1988, the Company merged with Aquachlor, Inc.,
a Nevada corporation incorporated on December 20, 1988. The Nevada corporation
became the surviving entity and changed its name to Deltavision, Inc. In March
1997, the Company received a Certificate of Revival from the State of Nevada
using the name First Deltavision, Inc.

On March 4, 2004, the Company's board of directors changed the Company's name
from "First Deltavision, Inc." to "Integrated Healthcare Holdings, Inc.", and
the name change became effective on May 18, 2004.

Company Operations - The Company has not engaged in any business activities that
have produced revenues and, therefore, is considered a development stage company
as defined in Statement of Financial Accounting Standards No. 7. The Company
seeks to acquire, own, and operate hospitals and surgical services throughout
the United States.

      The accompanying financial statements have been prepared on a going
concern basis, which contemplates the realization of assets and settlement of
obligations in the normal course of business. The Company generated losses from
continuing operations of $922,740 and $1,140,521 during the six months ended
June 30, 2004 and from inception (July 31, 1984) through June 30, 2004,
respectively. In addition, the Company had negative working capital of $500,201
at June 30, 2004. These factors, among others, raise doubt about the Company's
ability to continue as a going concern. The Company has raised a total of
$715,000 through stock sales during the twelve months ended June 30, 2004.
Management believes the Company has sufficient funds, the ability to raise
additional capital, and the ability to reduce administrative expenses to meet
its continuing obligations for the foreseeable future.

      Basis of Presentation - In January 2004, the Company's board of directors
changed the Company's fiscal year end from June 30 to December 31. The
accompanying financial statements have been audited for the transitional six
month period ended December 31, 2003. In the opinion of management, all
adjustments (which include only normal recurring adjustments) necessary to
present fairly the financial position, results of operations and cash flows at
June 30, 2004 and for the six months period then ended have been made.

      Condensed Financial Statements - The accompanying financial statements
have been prepared by the Company without audit. In the opinion of management,
all adjustments (which include only normal recurring adjustments) necessary to
present fairly the financial position, results of operations and cash flows at
June 30, 2004 and 2003 and for the periods then ended have been made.

      Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles in the United States of America have been condensed or omitted. It is
suggested that these condensed financial statements be read in conjunction with
the financial statements and notes thereto included in the Company's December
31, 2003 audited financial statements. The results of operations for the periods
ended June 30, 2004 and 2003 are not necessarily indicative of the operating
results for the full year.


                                       5
<PAGE>

      Cash and Cash Equivalents - The Company considers all highly liquid debt
investments purchased with a maturity of three months or less to be cash
equivalents.

      Accounting Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles in the United States of
America required management to make estimates and assumptions that effect the
reported amounts of assets and liabilities, the disclosures of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimated by management. Stock-Based Compensation -
Statement of Financial Accounting Standards No. 123, Accounting for Stock Based
Compensation, encourages, but does not require, companies to record compensation
cost for stock-based employee compensation plans at fair value. The Company has
chosen to account for stock-based compensation using the intrinsic value method
prescribed in previously issued standards. Accordingly, compensation cost for
stock options issued to employees is measured as the excess, if any, of the fair
market value of the Company's stock at the date of grant over the amount an
employee must pay to acquire the stock. Compensation is charged to expense over
the shorter of the service or vesting period. Stock options issued to
non-employees are recorded at the fair value of the services received or the
fair value of the options issued, whichever is more reliably measurable, and
charged to expense over the service period. Fair Value of Financial Instruments
- The Company considers all liquid interest-earning investments with a maturity
of three months or less at the date of purchase to be cash equivalents.
Short-term investments generally mature between three months and six months from
the purchase date. All cash and short-term investments are classified as
available for sale and are recorded at market using the specific identification
method; unrealized gains and losses are reflected in other comprehensive income.
Cost approximates market for all classifications of cash and short-term
investments.

      Net Loss per Common Share - Net loss per share is calculated in accordance
with Statement of Financial Accounting Standards No. 128, Earnings Per Share.
Basic net loss per share is based upon the weighted average number of common
shares outstanding. Diluted net loss per share is based on the assumption that
options are included in the calculation of diluted earnings per share, except
when their effect would be anti-dilutive. Dilution is computed by applying the
treasury stock method. Under this method, options and warrants are assumed to be
exercised at the beginning of the period (or at the time of issuance, if later),
and as if funds obtained thereby were used to purchase common stock at the
average market price during the period.

      Impairment of Long-Lived Assets - The Company continually monitors events
or changes in circumstances that could indicate that the carrying amount of
long-lived assets to be held and used, including intangible assets, may not be
recoverable. The determination of recoverability is based on an estimate of
undiscounted future cash flows resulting from the use of the asset and its
eventual disposition. When impairment is indicated for a long-lived asset, the
amount of impairment loss is the excess of net book value over fair value.
Long-lived assets to be disposed of are reported at the lower of carrying amount
or fair value less costs to sell. As of June 30, 2004, the Company has
determined that no impairment of its long-lived assets exists.

      Goodwill and Intangible Assets - On July 20, 2001, the Financial
Accounting Standards Board (FASB) issued Statement of Financial Accounting
Standards ("SFAS") 141, Business Combinations, and SFAS 142, Goodwill and
Intangible Assets. Under these new standards, all acquisitions subsequent to
June 30, 2001 must be accounted for using the purchase method of accounting. The
cost of intangible assets with indefinite lives and goodwill are no longer
amortized, but are subject to an annual impairment test based upon its fair
value.

      Goodwill and intangible assets principally result from business
acquisitions. The Company accounts for business acquisitions by assigning the
purchase price to tangible and intangible assets and liabilities. Assets
acquired and liabilities assumed are recorded at their fair values; the excess
of the purchase price over the net assets acquired is recorded as goodwill.


                                       6
<PAGE>

      Recently Enacted Accounting Standards - Statement of Financial Accounting
Standards ("SFAS") No. 144, "Accounting for the Impairment or Disposal of
Long-Lived Assets," No. 146, "Accounting for Costs Associated with Exit or
Disposal Activities", SFAS No. 147, "Acquisitions of Certain Financial
Institutions - an Amendment of FASB Statements No. 72 and 144 and FASB
Interpretation No. 9", SFAS No. 148, "Accounting for Stock-Based Compensation -
Transition and Disclosure - an Amendment of FASB Statement No. 123", SFAS No.
149, "Amendment of Statement 133 on Derivative Instruments and Hedging
Activities", and SFAS No. 150, "Accounting for Certain Financial Instruments
with Characteristics of both Liabilities and Equity", were recently issued. SFAS
No. 144, 146, 147, 148, 149 and 150 have no current applicability to the Company
or their effect on the financial statements would not have been significant.

      Restatement - The financial statements have been restated for all periods
presented to reflect a 4-for-1 forward stock split on April 4, 2002, a
248.399-for-1 reverse stock split on April 23, 1997 and a 5-for-1 forward stock
split on December 9, 1988.

      NOTE 2 - ACQUISITIONS AND RESCISSION OF ACQUISITION

      On April 9, 2002, the Company entered into a share exchange agreement with
KyoMedix Corporation ("KyoMedix"). The agreement called for the Company to issue
15,166,550 shares of common stock to the shareholders of KyoMedix for all of the
issued and outstanding shares of common stock of KyoMedix. The agreement also
called for the repurchase and cancellation of 746,592 shares of common stock for
a $250,000 note payable and effecting a 4-for-1 forward stock split. The
$250,000 note payable was due 90 days from signing and was secured by 13,916,000
shares of common stock of the Company. Any unpaid portion of the note was to
accrue interest at 10% per annum after the 90-day term. The agreement also
called for the resignation of the Company's officers and directors, the adoption
of the 2002 Stock Plan of KyoMedix, changing the name of the Company to
KyoMedix, Inc. and the grant of similar options to replace the options
previously granted by KyoMedix. The acquisition closed April 9, 2002; however,
subsequently, former and current shareholders of the Company sued to rescind the
merger claiming that certain conditions of the agreement were not satisfied. On
November 11, 2002, the Company signed a Compromise and Settlement Agreement and
the Company cancelled the 15,166,550 shares of common stock that had been issued
to the shareholders of KyoMedix. As part of the rescission agreement, the
Company reissued 746,592 shares of common stock to the previous shareholder and
the $250,000 note payable was voided. As part of the rescission agreement, the
Company's former officers and directors were re-appointed, the adoption of the
2002 Stock Plan of KyoMedix was voided and options granted to KyoMedix option
holders were cancelled. The financial statements have been restated to reflect
the acquisition as having been rescinded.

On January 1, 2004, the Company entered into a Securities Purchase Agreement and
Plan of Reorganization with Mogel Management Group, Inc. ("MMG"), an entity with
certain common ownership with the Company, and the shareholders of MMG. The
Company purchased all of the issued and outstanding stock of MMG, 48 million
shares, in exchange for the issuance of three promissory notes to the
stockholders of MMG, Inc. with a total face value of $60,000. The fair value of
the tangible assets acquired in excess of liabilities assumed amounted to
$15,000, which resulted in goodwill of $45,000. During the three months ended
June 30, 2004, the Company recorded an impairment charge of $45,000 related to
the goodwill from the MMG, Inc. acquisition. The notes bear interest at 6% per
annum and are due and payable on December 31, 2004. MMG was organized under the
laws of the State of Nevada on October 2, 2003 and has not engaged in any
business activities that have produced any revenues and, therefore, is
considered a development stage company as defined in Statement of Financial
Accounting Standards No. 7.


                                       7
<PAGE>

      NOTE 3 - COMMON STOCK

      The Company issued 91,452 shares of stock upon incorporation for $57,576.

      During the year ended June 30, 1989, the Company issued 96,640 shares of
common stock for $1,200.

      During 1996, the Company issued 611,908 shares of common stock for
consulting fees valued at $38,000 (or $.25 per share) resulting in a change in
control of the Company.

      During the year ended June 30, 1998, the Company issued 142,000 shares of
common stock for services rendered. Total proceeds amounted to $1,255 (or $.04
per share). The Company previously reported the issuance as 140,000 shares of
common stock. The financial statements have been restated for the years ended
June 30, 1999 and 1998 to reflect the issuance of an additional 2,000 shares of
common stock related to services previously rendered.

      In January 2000, the board of directors approved a compensation agreement
that included the issuance of a total of 400,000 shares of common stock to two
shareholders, 200,000 to each, for services rendered which were valued at
$1,000. The shares were issued in August 2000 for $.0025 per share.

      In November 2003, the board of directors approved the issuance of
16,128,000 shares of common stock to three individuals ("the Purchasers") for
$100,000, pursuant to a certain Stock Purchase Agreement. In connection with
this stock sale, the Company issued a promissory note for $100,000 to the former
president and director of the Company and 450,000 shares of common stock to the
former president and director of the Company, and a shareholder, in exchange for
a certain letter of indemnification. The letter of indemnification holds the
Company and the Purchasers harmless from and against any and all liabilities of
any type or nature, whatsoever, of the Company that existed prior to the closing
of the Stock Purchase Agreement, including fees of legal counsel for the Company
in connection with the completion of the Stock Purchase Agreement and the
promissory note due to the former president and director of the Company.

      In December 2003, the Company issued 1,460,000 shares of its common stock
at $0.25 per share for cash proceeds of $365,000. In January 2004, the Company
issued an additional 200,000 shares of its common stock at $0.25 per share for
cash proceeds of $50,000.

      During the three months ended March 31, 2004, the Company issued 350,000
shares of its common stock at $0.25 and $1.00 per share for net cash proceeds of
$200,000. During the three months ended June 30, 2004 the Company issued an
additional 50,000 shares of its common stock at $1.00 per share for net cash
proceeds of $50,000.

      Stock Splits - On December 9, 1988, the Company effected a 5-for-1 forward
stock split. On April 23, 1997, the Company effected a 248.399-for-1 reverse
stock split. On April 4, 2002, the Company effected a 4-for-1 forward stock
split. The financial statements for all periods presented have been restated to
reflect these stock splits.


                                       8
<PAGE>

      NOTE 4 - NOTE PAYABLE

      In connection with the Company's sale of 16,128,000 shares of its common
stock in November 2003, the Company issued a promissory note to the former
president and director of the Company in the amount of $100,000. The Company
received a letter of indemnification which holds the Company and the Purchasers
harmless from and against any and all liabilities of any type or nature,
whatsoever, of the Company that existed prior to the closing of the Stock
Purchase Agreement, including fees of legal counsel for the Company in
connection with the completion of the Stock Purchase Agreement and the
promissory note due to the former president and director of the Company. The
promissory note dated November 18, 2003 has a term of 90 days and bears interest
at 10% per annum. The Company repaid the promissory note in full on February 18,
2004.

      NOTE 5 - INTANGIBLE ASSET

      In connection with the Company's stock sale of 16,128,000 shares of its
common stock in November 2003, the Company issued a promissory note of $100,000
and 450,000 shares of its common stock in exchange for a letter of
indemnification from the Company's former President and shareholder. The 450,000
shares of common stock were valued by the Company at $0.0062 per share. The
letter of indemnification holds the Company and the Purchasers harmless from and
against any and all liabilities of any type or nature, whatsoever, of the
Company that existed prior to the closing of the Stock Purchase Agreement,
including fees of legal counsel for the Company in connection with the
completion of the Stock Purchase Agreement and the promissory note due to the
former president and director of the Company. The Company has recorded the
letter of indemnification as an intangible asset of $102,790 based on the total
fair market value of the promissory note and common stock issued. The Company is
amortizing the intangible asset using the straight-line method over the
enforceable life of the letter of indemnification of two years. During the six
months ended June 30, 2004 and 2003, the Company incurred amortization expense
of $25,698 and nil, respectively.

      NOTE 6 - INCOME TAXES

      The Company has not made a provision for income taxes because of its
financial statement and tax losses since its inception on July 31, 1984. A
valuation allowance has been used to offset the recognition of any deferred tax
assets related to net operating loss carryforwards due to the uncertainty of
future realization. The Company accounts for income taxes in accordance with
Statement of Financial Accounting Standards No. 109 "Accounting for Income
Taxes" which requires the liability approach for the effect of income taxes.

      At June 30, 2004 and December 31, 2003, the Company had unused operating
loss carryforwards of approximately $1,030,000 and $108,000, respectively, which
may be applied against future taxable income in various years through 2023. If
certain substantial changes in the Company's ownership should occur, there could
be an annual limitation on the amount of net operating loss carryforwards which
can be utilized. The amount of and ultimate realization of the benefits from the
operating loss carryforwards for income tax purposes is dependent, in part, upon
the tax laws in effect, the future earnings of the Company and other future
events, the effects of which cannot be determined. Because of the uncertainty
surrounding the realization of the loss carryforwards, the Company has
established a valuation allowance equal to the tax effect of the loss
carryforwards, therefore, no deferred tax asset has been recognized for the loss
carryforwards. The net deferred federal and state tax assets were approximately
$444,000 and $41,000 at June 30, 2004 and December 31, 2003, respectively, with
an offsetting valuation allowance of the same amount resulting in a change in
the valuation allowance of approximately $403,000 during the six months ended
June 30, 2004.


                                       9
<PAGE>

      NOTE 7 - RELATED PARTY TRANSACTIONS

      Due to/from Shareholders and Officers - During the six months ended June
30, 2004 and 2003, the Company's President paid expenses on behalf of the
Company totaling nil and $1,676, respectively. At June 30, 2004 and December 31,
2003, the total amount due to the Company's president was nil and $38,031,
respectively. At June 30, 2004 and December 31, 2003, the total amount due from
the Company's officers and majority shareholders was nil and $60,000,
respectively. The amounts due from shareholders and officers bear no interest
and are due when funds are available.

      NOTE 8 - LOSS PER SHARE

      The following data show the amounts used in computing loss per share for
the periods presented:

<TABLE>
<CAPTION>
                                                        Three Months Ended                      Six Months Ended
                                                --------------------------------        ------------------------------------
                                                June 30, 2004      June 30, 2003        June 30, 2004        June 30, 2003
                                                ------------        ------------        ------------        ------------
                                                                                        (Unaudited)         (Unaudited)
<S>                                             <C>                 <C>                 <C>                 <C>
Loss from continuing operations available
to common shareholders (numerator)              $   (430,608)       $    (17,818)       $   (922,740)       $    (19,797)
Weighted average number of common
shares used in loss per share during
the period (denominator)                          19,590,000           1,342,000          19,510,778           1,342,000
</TABLE>

      Dilutive loss per share was not presented, as the Company had no common
equivalent shares for all periods presented that would effect the computation of
diluted loss per share.

NOTE 9 - COMMITMENTS AND CONTINGENCIES

      Contingencies - In the ordinary course of business, the Company is subject
to legal proceedings and claims. The Company is not currently aware of any legal
proceedings or claims that the Company believes are likely to have a material
adverse effect on the Company's financial position and results of operations.

      Commitments - The Company leases its operating facility under an operating
lease agreement. The Company's facility lease expires in January 2006. Future
minimum lease payments under the non-cancelable lease agreement as of June 30,
2004 are:


                                       10
<PAGE>

     June 30,
     --------
       2005       $       51,960
       2006               30,310
                  ---------------
                  $       82,270
                  ---------------

NOTE 10 - SUBSEQUENT EVENT

In July 2004, the Company issued 100,000 shares of its common stock at $0.50 per
share for net cash proceeds of $50,000.


                                       11
<PAGE>

      Introduction

      As used in this report, the terms "we", "us", "our", "the Company" or
"Integrated Healthcare Holdings" mean Integrated Healthcare Holdings, Inc.,
unless otherwise indicated.

      In the first quarter of 2004, the Board of Directors and shareholders of
the Company approved a change in the Company's name to "Integrated Healthcare
Holdings, Inc." from "First Deltavision, Inc." to better reflect our planned
operations. The name change became effective on May 18, 2004.

      This Quarterly Report on Form 10-QSB contains forward-looking statements
as that term is defined in the Private Securities Litigation Reform Act of 1995.
These statements relate to future events or our future financial performance. In
some cases, you can identify forward-looking statements by terminology such as
"may", "will", "should", "expects", "plans", "anticipates", "believes",
"estimates", "predicts", "potential" or "continue" or the negative of these
terms or other comparable terminology. These statements are only predictions and
involve known and unknown risks, uncertainties and other factors, including the
risks discussed under the caption "Risk Factors" in our Transition Report on
Form 10-K filed on April 15, 2004, that may cause our company's or our
industry's actual results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements.

      Although we believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results, levels of
activity, performance or achievements. Except as required by applicable law,
including the securities laws of the United States, we do not intend to update
any of the forward-looking statements to conform these statements to actual
results.

Item 2. Management's Discussion and Analysis or Plan of Operation.

      Our plan of operation over the next 12 months is to acquire hospitals and
healthcare facilities by targeting hospitals that are financially distressed and
underperforming and whose owners are seeking to sell or lease their operations.
We intend to finance our acquisitions through a combination of cash raised
through equity offerings and borrowings, and stock issued by the Company. Our
strategy also includes the possibility of partnering with one or more external
real estate investors to help fund the real estate component of acquisitions.
Under such an arrangement, the real estate investor would acquire and manage the
real estate assets which typically are acquired along with a facility. The
investor may self-finance the real estate acquisition or bring in outside
investors in a tax-advantaged structure such as a real estate investment trust
or "REIT". Management feels that partnering with an external real estate
investor may allow us to undertake acquisitions that we could not otherwise
finance, and to focus on management's core skills in hospital and healthcare
management.

      We have identified a number of hospitals and healthcare facilities as
potential acquisition targets. We are currently exploring, among other things,
the possible acquisition of one or more of the hospital assets that are being
divested by Tenet Healthcare Corporation. As of the date of this report, we have
no agreements relating to acquisitions.

      During the three months ended June 30, 2004, the Company earned no
revenues.

      Over the next twelve months we will require additional cash financing,
whether or not we complete an acquisition of a healthcare facility. The Company
generated losses from continuing operations of $430,608 during the three months
ended June 30, 2004. In addition, the Company had negative working capital of
$500,201 at June 30, 2004. If we do not acquire a facility, we estimate that
we can satisfy our cash requirements for approximately two months following
the date of this report, after which we will need to raise additional funds. If
we acquire a facility, we expect to seek additional financing in connection with
the acquisition. There are no assurances that we will be able to obtain funds
required for our continued operations. In such event that we do not raise
sufficient funds, we may be forced to scale down or cease our operations.


                                       12
<PAGE>

      Currently there are four full time employees of the Company. We do not
expect any material changes in the number of employees over the next 12 months,
unless we are successful in acquiring a healthcare facility, in which case our
employment base will increase significantly.

      As of the June 30, 2004, the Company had no off-balance sheet
arrangements, as defined by Securities and Exchange Commission Regulation S-B
Item 303(c).

Item 3. Controls and Procedures.

      The Company maintains disclosure controls and procedures that are designed
to ensure that information required to be disclosed in the Company's Exchange
Act reports is recorded, processed, summarized and reported within the time
periods specified in the SEC's rules and forms, and that such information is
accumulated and communicated to the Company's management, including its Chief
Executive Officer and Chief Financial Officer, as appropriate, to allow timely
decisions regarding required disclosure based closely on the definition of
"disclosure controls and procedures" in Rule 15d-15(e). The Company's disclosure
controls and procedures are designed to provide a reasonable level of assurance
of reaching the Company's desired disclosure control objectives. In designing
and evaluating the disclosure controls and procedures, management recognized
that any controls and procedures, no matter how well designed and operated, can
provide only reasonable assurance of achieving the desired control objectives,
and management necessarily was required to apply its judgment in evaluating the
cost-benefit relationship of possible controls and procedures. The Company's
certifying officers have concluded that the Company's disclosure controls and
procedures are effective in reaching that level of assurance.

      As of the end of the period of this report, the Company carried out an
evaluation, under the supervision and with the participation of the Company's
management, including the Company's Chief Executive Officer and the Company's
Chief Financial Officer, of the effectiveness of the design and operation of the
Company's disclosure controls and procedures. Based on the foregoing, the
Company's Chief Executive Officer and Chief Financial Officer concluded that the
Company's disclosure controls and procedures were effective.

      There have been no significant changes in the Company's internal controls
or in other factors that could significantly affect the internal controls
subsequent to the date the Company completed its evaluation.

PART II. OTHER INFORMATION.

Item 1. Legal proceedings

      We are not a party to any legal proceedings.

Item 2. Changes in Securities.

      None.


                                       13
<PAGE>

Item 3. Defaults upon senior securities.

      None.

Item 4. Submission of matters to a vote of security holders

      None.

Item 5. Other Information.

      None.

Item 6. Exhibits and Reports on Form 8-K.

      (a) Exhibits.

          Exhibit
          -------
          Number            Description
          ------            -----------

          10.1     Employment  Agreement  with Bruce Mogel,  dated
                   January 1, 2004,  incorporated  herein by reference  from
                   Exhibit 10.1 to the Company's Transition Report on Form 10-K
                   filed with the Commission on April 15, 2004.

          10.2     Employment  Agreement with Larry B.  Anderson,  dated
                   January 1, 2004,  incorporated  herein by reference from
                   Exhibit 10.2 to the Company's Transition Report on Form 10-K
                   filed  with the Commission on April 15, 2004.

          10.3     Employment  Agreement with James T. Ligon,  dated
                   January 1, 2004,  incorporated  herein by reference from
                   Exhibit 10.3 to the Company's Transition Report on Form 10-K
                   filed with the Commission on April 15, 2004.

          10.4     Securities  Purchase  Agreement by and among Integrated
                   Healthcare  Holdings,  Inc., Mogel  Management  Group,  Inc.,
                   and the stockholders  of  Management  Group,  Inc.,
                   dated as of January 1,  2004,  incorporated  herein by
                   reference  from  Exhibit  Number  2.1 to the  Company's
                   Current  Report on Form 8-K filed with the Commission
                   on January 16, 2004.

          31.1     Certification of Chief Executive Officer Pursuant to Section
                   302 of the Sarbanes-Oxley Act of 2002.

          31.2     Certification of Chief Financial Officer Pursuant to Section
                   302 of the Sarbanes-Oxley Act of 2002.

          32.1     Certification of Chief Executive Officer Pursuant to Section

                   906 of the Sarbanes-Oxley Act of 2002.
          32.2     Certification of Chief Financial Officer Pursuant to Section
                   906 of the Sarbanes-Oxley Act of 2002.

      (b) Reports on Form 8-K.

      None.



                                       14
<PAGE>

                                    SIGNATURE

      In accordance with the requirements of the Securities Exchange Act of
1934, the registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                                    INTEGRATED HEALTHCARE HOLDINGS, INC.

Dated: August 13, 2004              By:  /s/ James Ligon
                                         -------------------------------------
                                         James Ligon
                                         Chief Financial Officer and Secretary
                                         (Principal Financial Officer)



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