10-Q 1 medzed10q033110.htm MARCH 31, 2010 10Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 


 FORM 10-Q


 

 X  .QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2010


     .TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ______ to _______


Commission File Number 333-148719

 

MEDZED, INC.

(Name of small business issuer in its charter)

 

Nevada

 

26-0641585

(State of incorporation)

  

(I.R.S. Employer Identification No.)

 

3065 Beyer Blvd. B103-1

San Diego, CA

(Address of principal executive offices)

 

(858) 461-3544

(Registrant’s telephone number)


with a copy to:

Carrillo Huettel, LLP

3033 Fifth Ave. Suite 201

San Diego, CA 92103

Telephone (619) 399-3090

Facsimile (619) 399-0120

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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      .

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.       . Yes   X  . No


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer

      .                                                  Accelerated Filer                                     .  



Non-Accelerated Filer

      .                                                   Smaller Reporting Company            X  .

 


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    X  . Yes       .No


As of May 14, 2010, there were ­­­­­­­­12,500,000 shares of the registrant’s $.0001 par value common stock issued and outstanding.









MEDZED, INC.*


TABLE OF CONTENTS


 

Page

PART I. FINANCIAL INFORMATION

 

 

 

ITEM 1.

FINANCIAL STATEMENTS

3

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

11

ITEM 3.

QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK

12

ITEM 4.

CONTROLS AND PROCEDURES

13

 

 

PART II. OTHER INFORMATION

 

 

 

ITEM 1.

LEGAL PROCEEDINGS

13

ITEM 1A.

RISK FACTORS

13

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

13

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

13

ITEM 4.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

14

ITEM 5.

OTHER INFORMATION

14

ITEM 6.

EXHIBITS

14


*Please note that throughout this Quarterly Report, and unless otherwise noted, the words "we," "our," "us," the "Company," or "MEZE" refers to Medzed, Inc.















2




PART I: FINANCIAL INFORMATION


ITEM 1.

FINANCIAL STATEMENTS


MEDZED, INC.

(A Development Stage Company)

Balance Sheets

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

 

 

2010

 

 

2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

$

                        9

 

$

                 1,004

 

 

 

 

 

 

 

 

 

 

 

 

Total Current Assets

 

                        9

 

 

                 1,004

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

$

                        9

 

$

                 1,004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

                 4,900

 

$

                 4,690

 

 

Related party payable

 

               16,278

 

 

               14,288

 

 

 

 

 

 

 

 

 

 

 

 

Total Current Liabilities

 

               21,178

 

 

               18,978

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock: $0.0001 par value, 50,000,000 shares

 

 

 

 

 

 

 

  authorized, 2,500,000 issued and  

 

 

 

 

 

 

 

  outstanding, respectively

 

                    250

 

 

                    250

 

 

Additional paid-in capital

 

               55,651

 

 

               55,326

 

 

Deficit accumulated during the development stage

 

             (77,070)

 

 

              (73,550)

 

 

 

 

 

 

 

 

 

 

 

 

Total Stockholders' Equity (Deficit)

 

             (21,169)

 

 

              (17,974)

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS'

 

 

 

 

 

 

 

 

  EQUITY (DEFICIT)

$

                        9

 

$

                 1,004

 


The accompanying notes are an integral part of these financial statements



3




MEDZED, INC.

(A Development Stage Company)

Statements of Operations

 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From Inception

 

 

 

For the

 

 

For the

 

on August 3,

 

 

 

Three Months Ended

 

 

Three Months Ended

 

2007 Through

 

 

 

March 31,

 

 

March 31,

 

March 31

 

 

 

2010

 

 

2009

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES

$

                      -

 

 

$

                      -

 

$

                      -

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

3,520

 

 

 

845

 

 

77,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Expenses

 

3,520

 

 

 

845

 

 

77,070

 

 

 

 

 

 

 

 

 

 

 

 

LOSS FROM OPERATIONS

 

            (3,520)

 

 

 

               (845)

 

   

          (77,070)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

                      -

 

 

 

                      -

 

 

                      -

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS

$

            (3,520)

 

 

$

               (845)

 

$

          (77,070)

 

 

 

 

 

 

 

 

 

 

 

 

BASIC LOSS PER SHARE

$

              (0.00)

 

 

$

              (0.00)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE SHARES OUTSTANDING

 

2,500,000

 

 

 

2,500,000

 

 

 


The accompanying notes are an integral part of these financial statements



4




MEDZED, INC.

(A Development Stage Company)

Statements of Stockholders' Equity (Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deficit

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

Additional

 

During the

 

Total

 

 

Common Stock

 

Paid-in

 

Development

 

Stockholders'

 

 

Shares

 

Amount

 

Capital

 

Stage

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at inception, August 3, 2007

 

-

 

$

-

 

$

-

 

$

-

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued for cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  per share

 

 1,500,000

 

 

150

 

 

14,850

 

 

-

 

 

     15,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss from inception on August 3,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  2007 through December 31, 2007

 

-

 

 

-

 

 

-

 

 

   (19,589)

 

 

   (19,589)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2007

 

 1,500,000

 

 

150

 

 

14,850

 

 

   (19,589)

 

 

     (4,589)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock issued for cash

 

1,000,000

 

 

100

 

 

39,900

 

 

-

 

 

      40,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the year ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  December 31, 2008

 

-

 

 

-

 

 

-

 

 

   (34,552)

 

 

   (34,552)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2008

 

 2,500,000

 

 

250

 

 

54,750

 

 

   (54,141)

 

 

          859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Imputed interest

 

-

 

 

-

 

 

576

 

 

-

 

 

576

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the year ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  December 31, 2009

 

-

 

 

-

 

 

-

 

 

   (19,409)

 

 

   (19,409)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2009

 

 2,500,000

 

 

250

 

 

55,326

 

 

   (73,550)

 

 

   (17,974)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Imputed interest

 

-

 

 

-

 

 

325

 

 

-

 

 

325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss for the three months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  March 31, 2010

 

-

 

 

-

 

 

-

 

 

     (3,520)

 

 

     (3,520)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, March 31, 2010 (unaudited)

 

2,500,000

 

$

250

 

$

55,651

 

$

   (77,070)

 

$

   (21,169)



The accompanying notes are an integral part of these financial statements



5




MEDZED, INC.

(A Development Stage Company)

Statements of Cash Flows

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

From Inception

 

 

 

 

For the

 

 

For the Year

 

on August 3,

 

 

 

 

Three Months

 

 

Ended

 

2007 Through

 

 

 

 

December 31,

 

 

December 31,

 

December 31,

 

 

 

 

2009

 

 

2008

 

2008

 

 

 

 

 

 

 

 

 

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

         (3,520)

 

 

$

            (845)

 

$

         (77,070)

 

Adjustments to reconcile net loss to net cash

 

 

 

 

 

 

 

 

 

 

  used by operating activities:

 

 

 

 

 

 

 

 

 

 

 

Imputed interest on shareholder loan

 

              325

 

 

 

                  -

 

 

                901

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

Increase (decrease) in accounts payable

 

              210

 

 

 

         (1,185)

 

 

             4,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Used in

 

 

 

 

 

 

 

 

 

 

 

 

   Operating Activities

 

         (2,985)

 

 

 

         (2,030)

 

 

         (71,269)

 

 

 

 

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

                   -

 

 

 

                  -

 

 

                     -

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from related party loans

 

           1,990

 

 

 

             416

 

 

           16,278

 

 

Common stock issued for cash

 

                   -

 

 

 

                  -

 

 

           55,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Cash Provided by

 

 

 

 

 

 

 

 

 

 

 

 

   Financing Activities

 

           1,990

 

 

 

             416

 

 

           71,278

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH

 

            (995)

 

 

 

         (1,614)

 

   

                    9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH AT BEGINNING OF PERIOD

 

           1,004

 

 

 

          4,544

 

 

                     -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH AT END OF PERIOD

$

                  9

 

 

$

          2,930

 

$

                    9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES OF

 

 

 

 

 

 

 

 

 

 

CASH FLOW INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH PAID FOR:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

$

                   -

 

 

$

                  -

 

$

                     -

 

 

Income Taxes

$

                   -

 

 

$

                  -

 

$

                     -



The accompanying notes are an integral part of these financial statements



6



MEDZED, INC.

(A Development Stage Company)

Notes to Unaudited Financial Statements


NOTE 1 – NATURE OF OPERATIONS


Medzed, Inc. (The Company) was organized on August 3, 2007, under the laws of the State of Nevada to engage in any lawful activity.  In particular the Company was established for the purpose of becoming a third party reseller of Medical Officer Business Solutions. The Company intends to market and sell Electronic Medical Records (EMR) software, Physician Practice Management (PPM) software, and billing software and services on behalf of the manufacturers of these products. Pursuant to FASB Pronouncements the Company is classified as a development stage company.


The Company's financial statements are prepared using the accrual method of accounting.  The Company has elected a December 31 year-end.


NOTE 2 - GOING CONCERN


The Company's financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet


Established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.


In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management's plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking equity and/or debt financing. However management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.


The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.


NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES


Basis of Presentation


These financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. The Company’s fiscal year-end is December 31.


Use of Estimates


The preparation of financial statements in conformity with generally accepted accounting principles 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 the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.


Cash and Cash Equivalents


The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. As of March 31, 2010 and December 31, 2009, the Company had no cash equivalents.




7



MEDZED, INC.

(A Development Stage Company)

Notes to Financial Statements


Basic and Diluted Net Loss Per Share


The Company computes net loss per share in accordance with ASC 260, Earnings Per Share, which requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive.


Income Taxes


Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted ASC 740, Income Taxes, as of its inception. Pursuant to ASC 740, the Company is required to compute tax asset benefits for net operating losses carried forward. The potential benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.


Comprehensive Loss


ASC 220, Comprehensive Income, establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at December 31, 2009 and 2008, the Company has no items that represent comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.


Financial Instruments


ASC 820, “Fair Value Measurements” and ASC 825, Financial Instruments, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value:


Level 1


Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.


Level 2


Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.


Level 3


Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.


The Company’s financial instruments consist principally of cash, accounts payable, and amounts due to related parties. Pursuant to ASC 820 and ASC 825, the fair value of our cash is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. We believe that the recorded values of all of our other financial instruments approximate their current fair values because of their nature and respective maturity dates or durations.




8



MEDZED, INC.

(A Development Stage Company)

Notes to Financial Statements


NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


Recently Adopted Accounting Pronouncements


In May 2009, FASB issued ASC 855, Subsequent Events, which establishes general standards of for the evaluation, recognition and disclosure of events and transactions that occur after the balance sheet date. Although there is new terminology, the standard is based on the same principles as those that currently exist in the auditing standards. The standard, which includes a new required disclosure of the date through which an entity has evaluated subsequent events, is effective for interim or annual periods ending after June 15, 2009.  The adoption of ASC 855 did not have a material effect on the Company’s financial statements.


In June 2009, the FASB issued guidance now codified as ASC 105, Generally Accepted Accounting Principles as the single source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with U.S. GAAP, aside from those issued by the SEC. ASC 105 does not change current U.S. GAAP, but is intended to simplify user access to all authoritative U.S. GAAP by providing all authoritative literature related to a particular topic in one place.  The adoption of ASC 105 did not have a material impact on the Company’s financial statements, but did eliminate all references to pre-codification standards.


In August 2009, FASB issued an amendment to the accounting standards related to the measurement of liabilities that are recognized or disclosed at fair value on a recurring basis. This standard clarifies how a company should measure the fair value of liabilities and that restrictions preventing the transfer of a liability should not be considered as a factor in the measurement of liabilities within the scope of this standard. This standard is effective for the Company on October 1, 2009. The adoption of this amendment did not have a material effect on the Company’s financial statements.


In October 2009, FASB issued an amendment to the accounting standards related to the accounting for revenue in arrangements with multiple deliverables including how the arrangement consideration is allocated among delivered and undelivered items of the arrangement. Among the amendments, this standard eliminated the use of the residual method for allocating arrangement considerations and requires an entity to allocate the overall consideration to each deliverable based on an estimated selling price of each individual deliverable in the arrangement in the absence of having vendor-specific objective evidence or other third party evidence of fair value of the undelivered items. This standard also provides further guidance on how to determine a separate unit of accounting in a multiple-deliverable revenue arrangement and expands the disclosure requirements about the judgments made in applying the estimated selling price method and how those judgments affect the timing or amount of revenue recognition. This standard, for which the Company is currently assessing the impact, will become effective on January 1, 2011.


In October 2009, the FASB issued an amendment to the accounting standards related to certain revenue arrangements that include software elements. This standard clarifies the existing accounting guidance such that tangible products that contain both software and non-software components that function together to deliver the product’s essential functionality, shall be excluded from the scope of the software revenue recognition accounting standards. Accordingly, sales of these products may fall within the scope of other revenue recognition standards or may now be within the scope of this standard and may require an allocation of the arrangement consideration for each element of the arrangement. This standard, for which the Company is currently assessing the impact, will become effective on January 1, 2011.


In January 2010, the FASB issued an amendment to ASC 505, Equity, where entities that declare dividends to shareholders that may be paid in cash or shares at the election of the shareholders are considered to be a share issuance that is reflected prospectively in EPS, and is not accounted for as a stock dividend.  This standard is effective for interim and annual periods ending on or after December 15, 2009 and is to be applied on a retrospective basis.  The adoption of this standard is not expected to have a significant impact on the Company’s financial statements.  


In January 2010, the FASB issued an amendment to ASC 820, Fair Value Measurements and Disclosure, to require reporting entities to separately disclose the amounts and business rationale for significant transfers in and out of Level 1 and Level 2 fair value measurements and separately present information regarding purchase, sale, issuance, and settlement of Level 3 fair value measures on a gross basis.  This standard, for which the Company is currently assessing the impact, is effective for interim and annual reporting periods beginning after December 15, 2009 with the exception of disclosures regarding the purchase, sale, issuance, and settlement of Level 3 fair value measures which are effective for fiscal years beginning after December 15, 2010.  


The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial statements.



9



MEDZED, INC.

(A Development Stage Company)

Notes to Financial Statements


NOTE 4 – RELATED PARTY PAYABLES


As of March 31, 2010 and December 31, 2009, the Company has received cash advances from shareholder related party of $16,278 and $14,288. The advances are non interest bearing, unsecured and due upon demand. Imputed interest in the amount of $325 and $576 is included in additional paid in capital for the period’s ended March 31, 2010 and December 31, 2009.


NOTE 5 – STOCKHOLDERS’ EQUITY


During the year ended December 31, 2008, the Company issued 1,000,000 shares of its par value $0.001 common stock for cash at $0.04 per share.  


During the year ended December 31, 2007, the Company issued 1,500,000 shares of its par value $0.001 common stock for cash at $0.01 per share.  


A total of 2,500,000 shares of common stock were issued and outstanding at March 31, 2010.         


NOTE 6 - INCOME TAXES


The Company has a net operating loss carried forward of $77,070 available to offset taxable income in future years which commence expiring in fiscal 2027.


The Company is subject to United States federal and state income taxes at an approximate rate of 34%. The reconciliation of the provision for income taxes at the United States federal statutory rate compared to the Company’s income tax expense as reported is as follows:


 

 

Three Months Ended

March 31,

2010

$

 

Three Months Ended

March 31,

2009

$

 

 

 

 

 

Income tax recovery at statutory rate

 

1,197

 

287

 

 

 

 

 

Valuation allowance change

 

(1,197)

 

(287)

 

 

 

 

 

Provision for income taxes

 

–

 

–


The significant components of deferred income tax assets and liabilities at March 31, 2010 and December 31, 2009 are as follows:


 

 

March 31,

2010

$

 

December 31,

2009

$

 

 

 

 

 

Net operating loss carried forward

 

26,203

 

25,007

 

 

 

 

 

Valuation allowance

 

(26,203)

 

(25,007)

 

 

 

 

 

Net deferred income tax asset

 

–

 

–


NOTE 7 – SUBSEQUENT EVENTS


On May 11, 2010, the Company approved an issuance of 10,000,000 shares of its common stock to its President, Gloria Ramirez Martinez, in exchange for advances totaling $25,000.





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ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION

FORWARD-LOOKING STATEMENTS

 This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements are not historical facts but rather are based on current expectations, estimates and projections. We may use words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “foresee,” “estimate” and variations of these words and similar expressions to identify forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted. You should read this report completely and with the understanding that actual future results may be materially different from what we expect. The forward looking statements included in this report are made as of the date of this report and should be evaluated with consideration of any changes occurring after the date of this Report. We will not update forward-looking statements even though our situation may change in the future and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

BUSINESS

We believe that effective approximately September 30, 2008, we became a “shell” company as that term is defined in Rule 12b-2 of the Securities Exchange Act of 1934.

As of the date of this Quarterly Report, we shall continue to undertake efforts to develop a business or merge with or acquire an operating company with operating history and assets. The exact form and nature of any investment or activity that we may undertake has not yet been determined. If we do not successfully pursue some form of operating business, then our primary activity will likely involve seeking merger or acquisition candidates with whom we can either merge or acquire.

As of March 31, 2010, we had no full time employees.

Overview


Medzed Inc. was incorporated on August 3, 2007 under the laws of the State of Nevada. We have not generated any revenue to date and are a development stage company. We were established for the purpose of becoming a third party reseller Physician Practice Management (PPM) and Electronic Medical Records (EMR) software, billing software and related services on behalf of the manufacturers of these products.


Results of Operations


We have not generated any revenue to date. Expenses for the three months ended March 31, 2010 amounted to $3,520, as compared to $845 for the three months ended March 31, 2009. Our net loss for the three months ended March 31, 2010 amounted to $3,520, as compared to $845 for the three months ended March 31, 2009, and the basic loss per share was $0.00 and $0.00 respectively. The $2,675 increase in expenses from the three months ended March 31, 2009 to three months ended March 31, 2010 was a result of the increase in general compliance expenses


Liquidity and Capital Resources


Our balance sheet as of March 31, 2010 reflects cash in the amount of $9. Cash from inception to date has been insufficient to provide the operating capital necessary to operate the company and therefore the Company has found additional funding through a loan from a related party.


Notwithstanding, we anticipate generating losses and therefore we may be unable to continue operations in the future. If we require additional capital, we would have to issue debt or equity or enter into a strategic arrangement with a third party. There can be no assurance that additional capital will be available to us. We currently have no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources.


Cash Requirements


Our cash on hand as of March 31, 2010 is $9. We do not have sufficient cash on hand to pay the costs of our operations as projected to twelve (12) months or less or to fund our operations for that same period of time. We will require additional financing in order to proceed with some or all of our goals as projected over the next twelve (12) months. We presently do not have any arrangements for additional financing, and no potential lines of credit or sources of financing are currently available for the purpose of proceeding with any of our goals projected over the next twelve (12) months and beyond.



11



 

Any additional growth of the Company will require additional cash infusions. We may face expenses or other circumstances such that we will have additional financing requirements. In such event, the amount of additional capital we may need to raise will depend on a number of factors. These factors primarily include the extent to which we can achieve revenue growth, the profitability of such revenues, operating expenses, research and development expenses, and capital expenditures. Given the number of programs that we have ongoing and not complete, it is not possible to predict the extent or cost of these additional financing requirements.

 

Notwithstanding the numerous factors that our cash requirements depend on, and the uncertainties associated with each of the major revenue opportunities that we have, we believe that our plan of operation can build long-term value if we are able to demonstrate clear progress toward our objectives.


Progress in the development of our business plan will likely lend credibility to our plan to achieve profitability.


The Company does not anticipate any contingency upon which it would voluntarily cease filing reports with the SEC. It is in the compelling interest of this Registrant to report its affairs quarterly, annually and currently, as the case may be, generally to provide accessible public information to interested parties, and also specifically to maintain its eligibility for the OTCBB.


The failure to secure any necessary outside funding could have an adverse affect on our development and results therefrom and a corresponding negative impact on shareholder liquidity.

 

Going Concern Consideration


The Company is a development stage company and has not commenced planned principal operations. The Company had no revenues and incurred a net loss of $3,520 for the three months ended March 31, 2010 and a net loss of $77,070 for the period August 3, 2007 (inception) to March 31, 2010. These factors raise substantial doubt about the Company’s ability to continue as a going concern.


In order to continue as a going concern and achieve a profitable level of operations, the Company will need, among other things, additional capital resources and to develop a consistent source of revenues.  Management’s plans include of investing in and developing all types of businesses related to the medical accounting and management industry.


The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plan described in the preceding paragraph and eventually attain profitable operations.  The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.


 Future Financings

 

We will continue to rely on equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund planned acquisitions and exploration activities.


Off-Balance Sheet Arrangements


None.


ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.




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ITEM 4.

CONTROLS AND PROCEDURES


Management’s Quarterly Evaluation of Disclosure Controls and Procedures


Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms.  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by our company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Our management carried out an evaluation under the supervision and with the participation of our Chief Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 ("Exchange Act").  Based upon that evaluation, our Chief Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures were not effective as of March 31, 2010, due to the material weaknesses resulting from i) a lack of a formally adopted and written code of business conduct and ethics that governs to the Company’s employees, officers and directors; ii) controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements; and, iii) controls were not designed and in place to ensure that equity transactions were properly reflected. Please refer to our Annual Report on Form 10-K as filed with the SEC on April 15, 2010, for a complete discussion relating to the foregoing evaluation of Disclosures and Procedures.

 

Changes in Internal Control Over Financial Reporting

 

There were no changes in internal controls over financial reporting that occurred during the three months ended March 31, 2010, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.


PART II - OTHER INFORMATION


ITEM 1.

LEGAL PROCEEDINGS.


We are not a party to any pending legal proceeding. No federal, state or local governmental agency is presently contemplating any proceeding against the Company. No director, executive officer or affiliate of the Company or owner of record or beneficially of more than five percent of the Company's common stock is a party adverse to the Company or has a material interest adverse to the Company in any proceeding.


ITEM 1A.

RISK FACTORS.


We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.


ITEM 2. 

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.


1.

Issuance of Equity Securities in exchange for services:


None.


2.

Convertible Securities:


None.


3.

Outstanding Warrants:


None.


4.

Sales of Equity Securities for Cash:


None.


ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.


None.




13



ITEM 4.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.


None.


ITEM 5.

OTHER INFORMATION.


None.


ITEM 6.

EXHIBITS


Exhibit

Number

Description of Exhibit

Filing

3.01

Articles of Incorporation

Filed with the SEC on January 17, 2008 as part of our Registration Statement on Form SB-2.

3.02

Bylaws

Filed with the SEC on January 17, 2008 as part of our Registration Statement on Form SB-2.

31.01

Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Rule 13a-14

Filed herewith.

32.02

CEO and CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act

Filed herewith.




14



SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


 

 

 

  

  

MEDZED, INC.

 

 

  

Dated: May 17, 2010

 

By:   /s/ Gloria Ramirez-Martinez

  

  

GLORIA RAMIREZ-MARTINEZ

  

  

Chief Executive Officer, Chief Financial Officer, President, Secretary and Treasurer

  

  

 








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