Nevada
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95-4696799
|
|
(State
or other jurisdiction of incorporation or
organization)
|
(I.R.S.
Employer Identification No.)
|
Large
accelerated filer ¨
|
Accelerated
filer
¨
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Non-accelerated
filer ¨
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Smaller
reporting company x
|
(Do
not check if a smaller reporting
company)
|
Page | ||
Part
I Financial Information
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Item
1.
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1
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1
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2
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3
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4
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6
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Item
2.
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9
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Item
3.
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13
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Item
4T.
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13
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Part
II Other Information
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Item
2
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14
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Item
6.
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14
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15
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December
31, 2008
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June
30, 2008
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|||||||
ASSETS
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unaudited
|
Audited
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||||||
Current
assets:
|
||||||||
Cash
and cash equivalents –– interest bearing
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$ | 422,977 | $ | 212,566 | ||||
Accounts
receivable, net of allowance for doubtful accounts
of $5,000 and $-0- at December 31, 2008 and June 30, 2008,
respectively
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45,962 | 57,121 | ||||||
Advances
|
5,000 | |||||||
Total
Current Assets
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73,668 | 269,687 | ||||||
Property
and equipment, net
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42,085 | 66,349 | ||||||
Other
Assets
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||||||||
Technology
and Medical Software, net
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7,540,203 | 8,032,343 | ||||||
Goodwill
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681,673 | 681,673 | ||||||
8,221,876 | 8,714,016 | |||||||
Total
Assets
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$ | 8,337,629 | $ | 9,050,052 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
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||||||||
Current
liabilities:
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||||||||
Notes
payable –– banks
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$ | 87,354 | $ | 299,980 | ||||
Short-term
notes payable
|
1,997,496 | 1,279,667 | ||||||
Accounts
payable and accrued expenses
|
1,346,528 | 1,839,470 | ||||||
Deferred
income
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- | 123,500 | ||||||
Total
Current Liabilities
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3,431,378 | 3,542,617 | ||||||
Other
long-term liabilities
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||||||||
Long-term
notes payable
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1,214,161 | 1,400,914 | ||||||
Total
Other Long-Term Liabilities
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1,214,161 | 1,400,914 | ||||||
Total
Liabilities
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4,645,539 | 4,943,531 | ||||||
Stockholders’
Equity
|
||||||||
Common
stock, par value $001 per share, authorized
200,000,000
Issued and outstanding 83,093,198 and 68,926,581 shares at
December
31, 2008 and June 30, 2008, respectively
|
83,093 | 68,926 | ||||||
Additional
Paid in Capital
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27,973,748 | 26,066,447 | ||||||
Less:
Treasury stock, 368,407 shares at both December 31, 2008 and June 30,
2008
|
(508,195 | ) | (508,195 | ) | ||||
Accumulated
deficit
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(23,856,555 | ) | (21,520,657 |
)
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||||
Total
Stockholders’ Equity
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3,692,090 | 4,106,521 | ||||||
Total Liabilities and Stockholders’ Equity
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$ | 8,337,629 | $ | 9,050,052 |
For
the three
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For
the three
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|||||||
months
ended
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months
ended
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|||||||
December
31, 2008
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December
31, 2007
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|||||||
unaudited
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(As
Restated)
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|||||||
Revenues:
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$
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79,150
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$
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140,850
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||||
Cost
of Services
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8,431
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22,270
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||||||
Gross
Profit
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70,719
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118,580
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||||||
Expenses:
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||||||||
Consulting,
commissions and travel
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87,032
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300,542
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||||||
Operational
fees and expenses
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157,115
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280,604
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||||||
Professional
fees
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10,861
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62,901
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||||||
Payroll
and related taxes
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242,405
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459,458
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||||||
Depreciation
and amortization
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497,321
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19,168
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||||||
Production,
advertising, brochures and public relations
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9,056
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132,693
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||||||
Total
Expenses
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1,003,790
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1,255,366
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||||||
Loss
before other expenses
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(933,071
|
)
|
(1,136,786
|
)
|
||||
Other
Income/(Expenses):
|
||||||||
Interest
income
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44
|
441
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||||||
Interest
expense
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(38,934
|
)
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(69,965
|
)
|
||||
Total
Other Income/(Expenses)
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(38,890
|
)
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(45,465
|
)
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||||
Net
loss available to common stockholders
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$
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(971,961
|
)
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$
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(1,206,310
|
)
|
||
Net
loss per share, to common stockholders
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$
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(0.01
|
)
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(0.0.23
|
)
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|||
Weighted
average number of shares, basic and diluted
|
83,093,198
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50,609,453
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For
the six
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For
the six
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|||||||
months
ended
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months
ended
|
|||||||
December
31, 2008
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December
31, 2007
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|||||||
unaudited
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unaudited
|
|||||||
Revenues:
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$
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161,510
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$
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307,567
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||||
Cost
of Services
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23,540
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58,616
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||||||
Gross
Profit
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137,970
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248,951
|
||||||
Expenses:
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||||||||
Consulting,
commissions and travel
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217,766
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830,565
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||||||
Operational
fees and expenses
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326,721
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516,589
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||||||
Professional
fees
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91,404
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147,454
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||||||
Payroll
and related taxes
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512,836
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787,287
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||||||
Depreciation
and amortization
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991,675
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33,544
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||||||
Production,
advertising, brochures and public relations
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37,997
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290,741
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||||||
Total
Expenses
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2,178,399
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2,606,180
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||||||
Loss
before other expenses
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(2,040,429
|
)
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(2,357,229
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)
|
||||
Other
Income/(Expenses):
|
||||||||
Interest
income
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4,128
|
993
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||||||
Interest
expense
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(78,130
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)
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(108,940
|
)
|
||||
Total
Other Income/(Expenses)
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(74,002
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)
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(107,947
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)
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||||
(2,114,431
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)
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(2,465,176
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)
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|||||
Loss
before extraordinary item
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||||||||
Extraordinary
item - litigation, net of expenses and taxes
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-
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650,000
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||||||
Net
loss available to common stockholders
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$
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(2,112,838
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)
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$
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(1,815,176
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)
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Net
loss per share, basic and diluted, before extraordinary
item
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$
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(0.03
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)
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$
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(0.05
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)
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Net
loss per share, basic and diluted, extraordinary item net
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$
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-
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$
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0.01
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||||
Net
loss per share, to common stockholders
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$
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(0.03
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)
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$
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(0.04
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)
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Weighted
average number of shares, basic and diluted
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83,093,198
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50,609,450
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For
the three
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For
the three
|
|||||||
months
ended
|
months
ended
|
|||||||
December
31, 2008
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December
31, 2007
|
|||||||
unaudited
|
unaudited
|
|||||||
Cash
Flows From Operating Activities:
|
||||||||
Receipts
from customers
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$
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20,902
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$
|
118,575
|
||||
Payments
to suppliers, salaries
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(437,854
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)
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(1,088,806
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)
|
||||
Other
income received
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650,000
|
|||||||
Interest
received
|
44
|
441
|
||||||
Interest
paid
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(12,749
|
)
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(19,599
|
)
|
||||
Net
Cash Used in Operating Activities
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(429,657
|
)
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(339,389
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)
|
||||
Cash
Flows Used in Investing Activities:
|
||||||||
Purchase
of Technology & Medical Software
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(135,000
|
)
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(30,440
|
)
|
||||
Net
Cash Used in Investing Activities
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(135,000
|
)
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(30,440
|
)
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||||
Cash
Flows From Financing Activities:
|
||||||||
Payments
on capital lease obligations
|
-
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(834
|
)
|
|||||
Payments
on notes payable
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(7,946
|
)
|
-
|
|||||
Short
term loans proceeds
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399,985
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337,500
|
||||||
Short
term loans paid
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(5,189
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)
|
||||||
Net
Cash Provided by Financing Activities
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399,985
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331,477
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||||||
Net
Increase/(Decrease) in Cash
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(172,618
|
)
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(38,352
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)
|
||||
Cash
at the Beginning of Period
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195,594
|
246,630
|
||||||
Cash
at End of Period
|
$
|
22,976
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$
|
208,278
|
Reconciliation
of Net Loss to Net Cash
|
||||||||
Used
by Operating Activities
|
||||||||
Net
Loss
|
$
|
(971,961
|
)
|
$
|
(1,206,310
|
)
|
||
Adjustments
to Reconcile net income/(loss) to net cash
|
||||||||
Used
by operating activities
|
||||||||
Depreciation
& Amortization
|
497,321
|
19,167
|
||||||
Changes
in:
|
||||||||
Trade
receivables
|
6,752
|
(253,035
|
)
|
|||||
Other
receivables
|
-
|
650,000
|
||||||
Accounts
payable and accrued expenses
|
77,046
|
169,663
|
||||||
Convertible
debentures – accrued interest
|
26,816
|
50,366
|
||||||
Deferred
income
|
(65,000
|
)
|
230,760
|
|||||
Net
Cash Used by Operating Activities
|
$
|
(429,657
|
)
|
$
|
(339,389
|
)
|
2008
|
2007
|
|||||||
Revenues:
|
||||||||
Education
|
84 | % | 88 | % | ||||
Healthcare
|
16 | % | 12 | % | ||||
Total
|
100 | % | 100 | % |
12/31/2008
|
6/30/2008
|
|||||||
Technology
and medical software
|
$ | 9,738,893 | $ | 9,263,894 | ||||
Less:
Accumulated Amortization
|
2,198,690 | 1,231,550 | ||||||
$ | 7,540,203 | $ | 8,032,344 |
12/31/2008
|
6/30/2008
|
|||||||
Short-term note
payable
|
$ | 568,922 | $ | -0- | ||||
Short-term
portion of long-term note payable
|
264,273 | 357,461 | ||||||
Note
payable banks
|
87,354 | 299,980 | ||||||
Convertible
debentures – 15%
|
308,423 | -0- | ||||||
Convertible
debentures - 17.98%
|
150,000 | 150,000 | ||||||
Convertible
debentures – 8%
|
270,000 | 270,000 | ||||||
Convertible
debentures – 10% - 12%
|
435,879 | 502,206 | ||||||
Total
Short-term notes payable
|
$ | 2,084,850 | $ | 1,579,647 |
·
|
The
delivery of CME (Continuing Medical Education) courses to the medical
community in the U.S., which continues to
grow.
|
·
|
The
licensing of our productivity tools to state education departments in the
U.S. The state of Pennsylvania is our first customer in this
effort. We plan a sales campaign to increase our state
education department customer base.
|
Three
Months Ended December 31
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
2008
|
2007
|
|||||||||||||||
Net
Sales and Revenues
|
$ | 79,150 | 100 | % | $ | 140,850 | 100 | % | ||||||||
Cost
of Services
|
8,431 | 11 | % | 22,270 | 16 | % | ||||||||||
Gross
Profit
|
70,719 | 89 | % | 118,580 | 84 | % | ||||||||||
Operational
General and Administrative Expenses
|
506,469 | 714 | % | 1,236,198 | 878 | % | ||||||||||
Depreciation
and amortization
|
497,321 | 703 | % | 19,168 | 16 | % | ||||||||||
Bad
debt expenses
|
- | 0 | % | - | 0 | % | ||||||||||
Total
Expenses
|
1,003,790 | 1,266 | % | 1,255,366 | 1,059 | % | ||||||||||
Loss
before other income (expense)
|
$ | (933,071 | ) | 1,317 | % | $ | (1,136,786 | ) | 959 | % |
Six
Months Ended December 31
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
2008
|
2008
|
2007
|
2008
|
|||||||||||||
Revenues
|
$ | 161,510 | 100 | % | $ | 307,567 | 100 | % | ||||||||
Cost
of Services
|
23,540 | 15 | % | 58,616 | 19 | % | ||||||||||
Gross
Profit
|
137,970 | 85 | % | 248,951 | 81 | % | ||||||||||
Operational
General and Administrative Expenses
|
1,186,742 | 859 | % | 2,572,636 | 1,033 | % | ||||||||||
Depreciation
and amortization
|
991,675 | 719 | % | 33,544 | 13 | % | ||||||||||
Bad
debt expenses
|
- | 0 | % | - | 0 | % | ||||||||||
Total
Expenses
|
2,176,806 | 1,578 | % | 2,606,180 | 1,046 | % | ||||||||||
Loss
before other income (expense)
|
(2,040,429 | ) | 1,478 | % | (2,357,229 | ) | 947 | % |
Vemics,
Inc.
(Registrant)
|
|||
Date:
February 17,
2009
|
By:
|
/s/ Fred Zolla | |
President and Chief Executive Officer | |||
(Principal Executive Officer) | |||
Date: February 17, 2009 | /s/ Craig Stout | ||
Craig Stout | |||
Interim Chief Financial Officer | |||
(Principal Accounting Officer) |