0001121781-13-000366.txt : 20130924 0001121781-13-000366.hdr.sgml : 20130924 20130924172529 ACCESSION NUMBER: 0001121781-13-000366 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20130430 FILED AS OF DATE: 20130924 DATE AS OF CHANGE: 20130924 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MEDCAREERS GROUP, Inc. CENTRAL INDEX KEY: 0001438901 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 261580812 STATE OF INCORPORATION: NV FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-152444 FILM NUMBER: 131112865 BUSINESS ADDRESS: STREET 1: 758 E. BETHEL SCHOOL RD. CITY: COPPELL STATE: TX ZIP: 75019 BUSINESS PHONE: 9723935892 MAIL ADDRESS: STREET 1: 758 E. BETHEL SCHOOL RD. CITY: COPPELL STATE: TX ZIP: 75019 FORMER COMPANY: FORMER CONFORMED NAME: Rx Scripted, Inc. DATE OF NAME CHANGE: 20080630 10-Q 1 mcgi10q43013.htm

 

United States

Securities and Exchange Commission

Washington, D.C. 20549

 

FORM 10-Q

 

 

(Mark One)

 

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

 

For the quarterly period ended April 30, 2013

 

OR

 

[ ] TRANSITION REPORT UNDER SECTION 13 OF 15(d) OF THE EXCHANGE ACT OF 1934

 

From the transition period ___________ to ____________.

 

Commission File Number  333-152444

 

MEDCAREERS GROUP, INC.

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

 

Nevada 7389 26-1580812
(State or jurisdiction of incorporation or organization) 

(Primary Standard Industrial

Classification Code Number)

(IRS Employer

Identification No.) 

 

758 E Bethel School Road, Coppell, Texas 75019

(Address of principal executive offices)

 

(972) 393-5892

(Issuer's telephone number)

 

Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 [ ] No [X ]

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes  ¨    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 a check mark whether the company is a shell company (as defined by Rule 12b-2 of the Exchange Act:

 

Yes [ ] No [X ].

 

As of September 5, 2013, there were 52,708,863 shares of Common Stock of the issuer outstanding.

1
 

 

TABLE OF CONTENTS

 

 

     
PART I. FINANCIAL STATEMENTS  
     
ITEM 1. Financial Statements 3
 

 

Notes to Financial Statements

7
     
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. 12

 

ITEM 3.

 

Quantitative and Qualitative Disclosure About Market Risk

17
     
ITEM 4. Controls and Procedures 17
     
     
PART II. OTHER INFORMATION  
     
ITEM 1. Legal Proceedings 18
     
ITEM 1A. Risk Factors 18
     
ITEM 2. Unregistered Sales of Securities and Use of Proceeds 18
     
ITEM 3. Default Upon Senior Securities 20
     
ITEM 4. Mine Safety Disclosures 20
     
ITEM 5. Other Information 20
     
ITEM 6. Exhibits 20
     
     
     

 

2
 

 

MEDCAREERS GROUP, INC.

(A Development Stage Company)

Consolidated Balance Sheets

As of April 30, 2013 and January 31, 2013

(Unaudited)

 

   As of
April 30, 2013
  As of
January 31, 2013
Assets  
Current Assets          
  Cash and Cash Equivalents  $30,718   $89,680 
  Other Current Assets   1,385    0 
    Total Current Assets   32,103    89,680 
Property, Plant & Equipment          
  Equipment   1,799    1,799 
  Less: Accumulated Amortization   (1,799)   (1,799)
    Total Fixed Assets   0    0 
           
Other Assets          
  Deferred Fees (net)   50,280    92,217 
           
Total Assets  $82,383   $181,897 
           
Liabilities and Stockholders’ Equity  
Current Liabilities          
  Accounts Payable  $10,625   $6,918 
  Accrued Expenses   2,838    11,852 
  Due to Related Parties   215,424    178,143 
  Accrued Interest Payable   106,630    89,333 
  Current Portion of Notes Payable   640,650    578,150 
    Total Current Liabilities   976,167    864,396 
           
Long Term Liabilities          
  Notes Payable   640,650    603,150 
  Less: Current Portion   (640,650)   (578,150)
    Total Long Term Liabilities   0    25,000 
           
  Total Liabilities   976,167    889,396 
           
Stockholders’ Equity          
Preferred Stock, $0.001 par value, 10,000,000 shares, none outstanding   0    0 
Common Stock, $0.001 par value, 350,000,000 shares,          
   50,125,528 and 50,125,528 shares issued and outstanding   50,126    50,126 
           
Additional Paid In Capital   3,997,996    3,997,996 
Accumulated (Deficit)   (4,941,906)   (4,755,621)
Total Stockholders’ Equity (Deficit)   (893,784)   (707,499)
           
Total Liabilities and Stockholders’ Equity  $82,383   $181,897 

 

 

The Accompanying Notes are an Integral Part of these Financial Statements.

 

3
 

 

 

 

  

MEDCAREERS GROUP, INC.

(A Development Stage Company)

Consolidated Statement of Operations

For the Three Months Ended April 30, 2013 and 2012

And Cumulative Since Re-Entering the Development Stage, January 1, 2009 to April 30, 2013

(Unaudited)

 

 

 

   Three Months Ended   
   April 30, 2013  April 30, 2012  Cumulative Since Re-Entering the Development Stage,
Jan 1, 2009
          
  Revenue  $5,735   $2,045   $46,899 
  Cost of Sales   16,133    4,964    126,847 
  Gross Profit (Loss)   (10,398)   (2,919)   (79,948)
                
Operating Expenses:               
   Depreciation and Amortization   41,937    33,000    589,717 
   Selling and Advertising Expenses   12,608    1,774    97,029 
   General and Administrative   102,545    67,082    2,917,470 
    Total Operating Expenses   157,090    101,856    3,604,216 
                
Net Operating (Loss)   (167,488)   (104,775)   (3,684,164)
                
Other Income (Expense)               
    Loss on Sale of Assets   0    0    (4,087)
    Loss on Recapitalization   0    0    (223,454)
    Interest Expense   (18,797)   (16,149)   (357,299)
    Total Other Income (Expense)   (18,797)   (16,149)   (584,840)
                
Net Loss  $(186,285)  $(120,924)  $(4,269,004)
                
Basic and Diluted Earnings (Loss) per share  $0.00   $0.00      
                
Weighted Average Shares Outstanding:               
Basic and Diluted   50,125,528    43,350,112      
                

 

 

The Accompanying Notes are an Integral Part of these Financial Statements.

 

 

 

4
 

 

 

MEDCAREERS GROUP, INC.

(A Development Stage Company)

Consolidated Statement of Changes in Stockholders’ Equity

For the Three Months Ended April 30, 2013 and

For the Year Ended January 31, 2013

(Unaudited)

                
            Retained   
    Common Stock     Paid-In    Earnings 
    Shares    Amount    Capital    (Deficit)    Totals 
                          
Balance, January 31, 2012   43,315,000   $43,315   $2,819,470   $(3,407,669)  $(544,884)
                          
Issuance of Common Stock for Cash   3,219,500    3,220    318,780         322,000 
Issuance of Common Stock for Services   750,000    750    74,250         75,000 
Issuance of Common Stock for Deferred Fees   2,840,528    2,841    307,129         309,970 
                          
Stock Option Expense             478,367         478,367 
                          
Net (Loss)                  (1,347,952)   (1,347,952)
                          
Balance, January 31, 2013   50,125,028   $50,126   $3,997,996   $(4,755,621)  $(707,499)
                          
                          
                          
Net (Loss)                  (186,285)   (186,285)
                          
Balance, April 30, 2013   50,125,028   $50,126   $3,997,996   $(4,941,906)  $(893,784)

 

The Accompanying Notes are an Integral Part of these Consolidated Financial Statements.

 

 

5
 

 

MEDCAREERS GROUP, INC.

(A Development Stage Company)

Consolidated Statements of Cash Flows

For the Three Months Ended April 30, 2013 and 2012

And Cumulative Since Re-Entering the Development Stage, January 1, 2009 to April 30, 2013

(Unaudited)

 

Three Months Ended April 30, 2013  Three Months Ended April 30, 2012 Cumulative Since Re-Entering the Development Stage, January 1, 2009
CASH FLOWS FROM OPERATING ACTIVITIES               
                
Net Income (Loss)  $(186,285)  $(120,924)  $(4,269,004)
                
Adjustments to reconcile net deficit to cash used
by operating activities:
               
    Depreciation and Amortization of Property and Equipment   0    0    25,826 
    Amortization of Deferred Fees   41,937    33,000    563,890 
    Common Stock Issued for Services   0    0    165,000 
    Stock Option Expense   0    10,347    1,986,017 
Change in Assets and Liabilities:               
  (Increase) in Other Current Assets   (1,385)   (300)   (1,365)
  (Increase) in Other Assets   0    0    60,194 
  Increase (Decrease) in Accounts Payable   3,707    (5,652)   18,845 
  Increase  in Accrued Expenses   25,614    23,767    117,960 
  Increase in  Due to Related Party   19,950    41,400    198,093 
CASH FLOWS (USED IN) OPERATING ACTIVITIES   (96,462)   (18,362)   (1,134,564)
                
CASH FLOWS FROM INVESTING ACTIVITIES               
  Sale of Fixed Assets   0    0    191,026 
  Net Assets Acquired in Acquisition   0    0    (215,453)
CASH FLOWS (USED IN) INVESTING ACTIVITIES   0    0    (24,427)
                
CASH FLOWS FROM FINANCING ACTIVITIES               
  Proceeds from Notes Payable   37,500    5,000    615,650 
  Proceeds from Sale of Common Stock   0    12,500    322,000 
  Debt Assumed in Acquisition   0    0    246,670 
  Debt Assumed on Divestiture   0    0    (185,939)
  Interest Added to Notes Payable   0    0    209,429 
  Payments on Notes Payable   0    0    (35,731) 
  Common Stock Issued on Recapitalization   0    0    16,000 
CASH FLOWS PROVIDED BY FINANCING ACTIVITES   37,500    17,500    1,188,079 
                
NET INCREASE (DECREASE) IN CASH   (58,962)   (862)   29,088 
Cash, beginning of period   89,680    912    1,630 
                
Cash, end of period  $30,718   $50   $30,718 
                
SUPPLEMENTAL CASH FLOW INFORMATION               
Cash paid for Interest  $0    0   $57,740 
Taxes paid  $0    0   $0 
Issuance of Common Stock for Services  $0    0   $165,000 
Issuance of Common Stock for Debt  $0    0   $884,741 
Issuance of Common Stock for Fees  $0    0   $614,170 

 

 

 

The Accompanying Notes are an Integral Part of these Financial Statements.

 

6
 

 

MEDCAREERS GROUP, INC.

(A Development Stage Company)

Notes to Financial Statements

April 30, 2013 and January 31, 2013

 

 

NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES

 

Nature of Activities, History and Organization – The Company was formed as RX Scripted, LLC on December 30, 2004 as a North Carolina limited liability company and converted to a Nevada Corporation as RX Scripted, Inc. on December 5, 2007.  On December 16, 2009, an amendment was filed with the State of Nevada to change the name to “MedCareers Group, Inc.” (the “Company” or “MedCareers”) and change the authorized capital of the Company. On November 5, 2010, the Company issued 24,000,000 shares of its Common Stock in exchange for 100% of Nurses Lounge, Inc. (“Nurses Lounge”), a Texas corporation. As a result of the share exchange, Nurses Lounge became the wholly owned subsidiary of MedCareers. As a result, the shareholders of Nurses Lounge owned a majority of the voting stock of MedCareers. The transaction was regarded as a reverse merger whereby Nurses Lounge was considered to be the accounting acquirer as its shareholders retained control of MedCareers after the exchange, although MedCareers is the legal parent company. The share exchange was treated as a recapitalization of MedCareers. As such, Nurses Lounge (and its historical financial statements) is the continuing entity for financial reporting purposes. The financial statements have been prepared as if MedCareers had always been the reporting company and, on the share exchange date, changed its name and reorganized its capital  The Company operates an online professional network for nurses designed to provide a common platform for nursing organizations such as nursing schools, associations and major nurse employers to connect and communicate more effectively to their nurse constituents and broader nursing profession.

 

Significant Accounting Policies:

 

The Company’s management selects accounting principles generally accepted in the United States of America and adopts methods for their application.  The application of accounting principles requires the estimating, matching and timing of revenue and expense. The accounting policies used conform to generally accepted accounting principles which have been consistently applied in the preparation of these financial statements.

 

The financial statements and notes are representations of the Company’s management which is responsible for their integrity and objectivity. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud.  The Company's system of internal  accounting control is designed to assure, among other items, that  1) recorded  transactions  are valid;  2) valid  transactions  are recorded;  and  3) transactions  are  recorded in the proper  period in a timely  manner to produce financial  statements which present fairly the financial  condition,  results of operations  and cash  flows of the  Company  for the  respective  periods  being presented.

 

Basis of Presentation:

 

The Company prepares its financial statements on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States.

 

Principles of Consolidation:

 

The financial statements include the accounts of Medcareers Group, Inc. as well as Nurses Lounge, Inc. All significant inter-company transactions have been eliminated.  All amounts are presented in U.S. Dollars unless otherwise stated.

 

7
 

 

 

Emerging Growth Company Critical Accounting Policy Disclosure:

 

The Company qualifies as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards.   As an emerging grown company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.     The Company may elect to take advantage of the benefits of this extended transition period in the future.

 

Reclassifications:

 

Certain prior year amounts have been reclassified to conform with the current year presentation.  Specifically, additional paid-in capital has been reclassified to show the effect of a forward 10 for 1 stock split effective January 7, 2010. 

 

Cash and Cash Equivalents:

 

The Company considers all highly liquid debt instruments with a maturity of three months or less to be cash equivalents.  At times, cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits.  The carrying amount approximates fair market value.

 

Fixed Assets:

 

Fixed assets are carried at cost.  Depreciation is provided over each asset’s estimated useful life.  Upon retirement and disposal, the asset cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the determination of the net income.   Additions and significant improvements are capitalized and depreciated.

 

Advertising Costs:

 

The Company incurred $0 advertising costs for the periods ended April 30, 2013 and 2012, respectively.

 

Income Taxes:

 

Income from the corporation is taxed at regular corporate rates per the Internal Revenue Code.  Although the Company has tax loss carry-forwards (see Note 4), there is uncertainty as to utilization prior to their expiration.  Accordingly, the future income tax asset amounts have been fully offset by a valuation allowance.

 

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized when items of income and expense are recognized in the financial statements in different periods than when recognized in the tax return. Deferred tax assets arise when expenses are recognized in the financial statements before the tax returns or when income items are recognized in the tax return prior to the financial statements. Deferred tax assets also arise when operating losses or tax credits are available to offset tax payments due in future years. Deferred tax liabilities arise when income items are recognized in the financial statements before the tax returns or when expenses are recognized in the tax return prior to the financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

 

Use of Estimates:

 

In order to prepare financial statement in conformity with accounting principles generally accepted in the United States, management must make estimates, judgments and assumptions that affect the amounts reported in the financial statements and determines whether contingent assets and liabilities, if any, are disclosed in the financial statements. The ultimate resolution of issues requiring these estimates and assumptions could differ significantly from resolution currently anticipated by management and on which the financial statements are based.

 

 

8
 

 

Fair Value of Financial Instruments:

 

Pursuant to ASC No. 820, “Fair Value Measurements and Disclosures”, the Company is required to estimate the fair value of all financial instruments included on its balance sheet as of April 30, 2012.  The Company’s financial instruments consist of cash, accounts payable, advances and notes payable.  The Company considers the carrying value of such amounts in the financial statements to approximate their fair value due to the short-term nature of these financial instruments.

 

Stock Split:

 

On January 4, 2010, MedCareers approved a 10 for 1 forward stock split on its issued and outstanding shares of common stock to the holders of record as of January 7, 2010. The accompanying financial statements and related notes thereto have been adjusted accordingly to reflect this forward stock split retroactively.

  

Revenue Recognition:

 

Revenue from contracts for consulting services with fees based on time and materials or cost-plus are recognized as the services are performed and amounts are earned.  The Company considers amounts to be earned once evidence of an arrangement has been obtained, services are delivered, fees are fixed or determinable, and collectability is reasonably assured.  For contracts with fixed fees, the Company recognizes revenues as amounts become billable in accordance with contract terms, provided the billable amounts are not contingent, are consistent with the services delivered, and are earned. The Company recognizes revenue in accordance with ASC 605-10, "Revenue Recognition in Financial Statements", (formerly Staff Accounting Bulletin No. 104 (“SAB 104”).   Revenue is recognized when persuasive evidence of an arrangement exists, delivery or service has occurred, the sale price is fixed or determinable and receipt of payment is probable.

 

Development Stage Company:

 

The Company complies with Accounting Codification Standard 915-10 for its characterization of the Company as development stage.

 

Earnings per Common Share:

 

Earnings (loss) per share are calculated in accordance with ASC 260 “Earnings per Share”.   The weighted average number of common shares outstanding during each period is used to compute basic earnings (loss) per share.  Diluted earnings per share are computed using the weighted average number of shares and potentially dilutive common shares outstanding.   Dilutive potential common shares are additional common shares assumed to be exercised.     Potentially dilutive common shares consist of stock options and are excluded from the diluted earnings per share computation in periods where the Company has incurred a net loss, as their effect would be considered anti-dilutive.

 

There were no potentially dilutive common stock equivalents as of April 30, 2013 and, therefore basic earnings per share equals diluted earnings per share for the periods ended April 30, 2013 and January 31, 2013.  The Company had 9,970,500 options outstanding at April 30, 2013. As the Company incurred a net loss during the periods ended April 30, 2013 and January 31, 2013, the basic and diluted loss per common share is the same amount, as any common stock equivalents would be considered anti-dilutive.

 

 

Recently Issued Accounting Pronouncements:

 

The Company  does not expect  the  adoption  of  recently  issued  accounting pronouncements  to have a significant  impact on the Company’s  results of  operations, financial position or cash flow.

9
 

 

 

NOTE 2 – DEFERRED FEES

 

Deferred fees represent stock issued as fees to make or extend notes payable. Stock issued was valued at the date of issue and amortized over the term of the loan. Deferred fees at April 30, 2013 and January 31, 2013 were as follows:

 

   April 30, 2013  January 31, 2013
Deferred Fees – Net  $50,280   $92,217 

 

 

NOTE 3 - NOTES PAYABLE

 

The components of the Company’s debt as of April 30, 2013 and January 31, 2013 were as follows:

 

   2013  2012
Note Payable - $100,000, 12% interest payable monthly or accrued, due Nov 4, 2013  $100,000   $100,000 
Note Payable - $190,000, 12% interest payable monthly or accrued, due Oct 29, 2013   310,650    288,150 
Note Payable - $25,000, 12% interest payable monthly or accrued, due March 11, 2014   25,000    25,000 
Note Payable - $25,000, 12% interest added to note quarterly, due April 30, 2013   45,000    25,000 
Note Payable - $16,000, 12% interest added to note quarterly, due January 31, 2014   16,000    16,000 
Note Payable - $70,000, 12% interest added to note quarterly, due February 4, 2013   70,000    70,000 
Note Payable - $40,000, 12% interest added to note quarterly, due April 28, 2013   40,000    40,000 
Note Payable - $4,000, 12% interest added to note quarterly, due April 30, 2013   4,000    4,000 
Note Payable - $30,000, 12% interest added to note quarterly, due Nov 5, 2013   30,000    30,000 
Note Payable - $5,000, 12% interest added to note quarterly, due Nov 5, 2013   5,000    5,000 
Subtotal   640,650    603,150 
Less – currently payable   (640,650)   (578,150)
Long-term debt  $0   $25,000 

 

The Company had accrued $18,797 and $52,186 of interest on the notes at April 30, 2013 and January 31, 2013 respectively.

 

NOTE 4 - STOCKHOLDERS’ EQUITY

 

Preferred Stock:

The Company is authorized to issue 10,000,000 shares of Preferred Stock, having a par value of $0.001 per share.  There are no preferred shares outstanding at April 30, 2013 and January 31, 2013.

 

Common Stock:

The Company is authorized to issue 350,000,000 common shares at a par value of $0.001 per share.  These shares have full voting rights.  At April 30, 2013 and January 31, 2013 there were 50,125,528 and 50,125,528 shares outstanding, respectively.  No dividends were paid in the quarters ended April 30, 2013 and 2012.  

 

Options and Warrants:

 

The Company had the following options or warrants outstanding at April 30, 2013:

 

Issued To # Options Dated Expire Strike Price
President and CEO 4,000,000 11/18/2010 11/18/2015 $0.25 per share
Vice President 2,000,000 11/18/2010 11/18/2015 $0.25 per share
Shareholder 127500 08/28/2011 08/28/2016 $0.10 per share
Shareholder 50,000 04/04/2012 04/04/2013 $0.20 per share
Shareholder 8,000 04/27/2012 04/27/2013 $0.20 per share

 

 

10
 

 

 

Shareholder 127,500 04/29/2012 04/29/2017 $0.10 per share
Shareholder 200,000 05/17/2012 05/17/2013 $0.20 per share
Shareholder 50,000 05/22/2012 05/22/2013 $0.20 per share
Shareholder 80,000 05/21/2012 05/21/2013 $0.20 per share
Shareholder 25,000 07/12/2012 07/12/2013 $0.20 per share
Shareholder 25,000 07/10/2012 07/10/2013 $0.20 per share
Shareholder 50,000 08/09/2012 08/09/2013 $0.20 per share
Shareholder 1,000,000 08/31/2012 08/31/2016 $0.12 per share
Shareholder 2,000,000 01/18/2013 01/18/2018 $0.12 per share
Shareholder 100,000 03/29/2013 03/29/2016 $0.10 per share
Shareholder 127,500 07/31/2013 07/30/2018 $0.10 per share
Total 6,970,500      

 

NOTE5 – EMPLOYEE BENEFIT PLANS

 

At April 30, 2013, there were no qualified or non-qualified employee pension, profit sharing, stock option, or other plans authorized for any class of employees.

 

NOTE 6 – INCOME TAXES

 

MedCareers Group, Inc. has incurred losses since inception.  Therefore, MedCareers has no federal tax liability.  Additionally there are limitations imposed by certain transactions which are deemed to be ownership changes.  The net deferred tax asset generated by the loss carryforward has been fully reserved.  The cumulative net operating loss carryforward is about $4,941,906 at April 30, 2013 of which $3,997,272 is available for carryforward for federal income tax purposes and will expire in fiscal year 2026 through 2028.  At April 30, 2013 and January 31, 2013, the deferred tax asset consisted of the following:

 

   April 30, 2013  January 31, 2013
Deferred tax asset:          
   Net operating loss  $1,403,804   $1,295,736 
   Less valuation allowance   (1,403,804)   (1.295,736)
   Net deferred tax asset  $0   $0 

 

NOTE 7 – COMMITMENTS AND CONTINGENCIES

 

The Company may from time to time be involved with various litigation and claims that arise in the normal course of business.  As of April 30, 2013, no such matters were outstanding.

 

NOTE 8 – SUBSEQUENT EVENTS

 

None.

 

NOTE 9 - GOING CONCERN

 

MedCareers’ financial statements are prepared using United States generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business.  The Company has incurred cumulative losses through April 30, 2013 of $4,941,906 and has a working capital deficit at April 30, 2013 of $944,064.

 

Historically, revenues have not been sufficient to cover operating costs that would permit the Company to continue as a going concern.  The potential proceeds from the sale of common stock and other contemplated debt and equity financing, and increases in operating revenues from new development and business acquisitions might enable MedCareers to continue as a going concern.  There can be no assurance that the Company can or will be able to complete any debt or equity financing, or develop or acquire one or more business interests on terms favorable to it.  MedCareers’ financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

 

NOTE 10 – RECENT ACCOUNTING PRONOUNCEMENTS

 

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flows.

 

 

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

 

FORWARD-LOOKING STATEMENTS

This quarterly report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, which we refer to in this quarterly report as the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, which we refer to in this quarterly report as the Exchange Act. Forward-looking statements are not statements of historical fact but rather reflect our current expectations, estimates and predictions about future results and events. These statements may use words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “predict,” “project” and similar expressions as they relate to us or our management. When we make forward-looking statements, we are basing them on our management’s beliefs and assumptions, using information currently available to us. These forward-looking statements are subject to risks, uncertainties and assumptions, including but not limited to, risks, uncertainties and assumptions discussed in this quarterly report. Factors that can cause or contribute to these differences include those described under the headings “Risk Factors” and “Management Discussion and Analysis and Plan of Operation.”

If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. Any forward-looking statement you read in this quarterly report reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. All subsequent written and oral forward-looking statements attributable to us or individuals acting on our behalf are expressly qualified in their entirety by this paragraph. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this quarterly report. The Company expressly disclaims any obligation to release publicly any updates or revisions to these forward-looking statements to reflect any change in its views or expectations. The Company can give no assurances that such forward-looking statements will prove to be correct.

 

Company.

Medcareers Group, Inc. (“MedCareers”, the “Company”, “we” or “us”), the Company described herein, is a Nevada corporation, with offices located at 758 E Bethel School Road, Coppell, Texas 75019. It can be reached by phone at (972) 393-5892.

 

History.

The Company was formed as RX Scripted, LLC on December 30, 2004 as a North Carolina limited liability company and converted to a Nevada Corporation as RX Scripted, Inc. on December 5, 2007.  On December 16, 2009, an amendment was filed with the State of Nevada to among other things, change the name of the company to “MedCareers Group, Inc.” and affect a 10 for 1 forward stock split (which became effective January 7, 2010). Unless otherwise stated or the context suggests otherwise, the number of shares disclosed throughout this report have been retroactively reflected for the stock split.

 

On or around November 19, 2010, the Company entered into a Share Exchange Agreement (the “Exchange”) with Nurses Lounge, Inc., a Texas corporation (“Nurses Lounge”) and the nine shareholders of Nurses Lounge (the “Nurses Lounge Shareholders”).  Pursuant to the Exchange, we agreed to issue 24,000,000 restricted shares of our common stock to the Nurses Lounge Shareholders in exchange for 100% of the issued and outstanding shares of common stock of Nurses Lounge.  Pursuant to the Exchange, Nurses Lounge became a wholly-owned subsidiary of the Company.

 

History and Description of the Operations of Nurses Lounge

 

At the beginning of 2003 in Dallas, Texas, Timothy Armes (our Chief Executive Officer, sole director and largest shareholder) took over control of the nursing internet portal and nursing job board NursesLounge.com and re-launched the web site shortly thereafter.  Mr. Armes also launched a localized direct mail magazine as a companion to the website. Years of managing a portal and publishing a monthly magazine gave Mr. Armes insight to numerous organizations in need of a more efficient way to communicate important information to nursing professionals such as news, meetings and continuing education requirements on a timely basis.

 

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With this understanding, and the development of social media technology, Mr. Armes designed and launched a beta version of a professional network for nurses in the summer of 2009 designed to provide a common platform for nursing organizations such as nursing schools, associations and major nurse employers to connect and communicate more effectively to their nurse constituents and broader nursing profession. Additionally, the network was developed to allow individual nurses the ability to interact with these organizations and other professionals via a professional profile separate from a social profile that they may have on Facebook as example.

 

Today, Nurses Lounge operates as a free online professional network for nursing professionals, and provides a secure place for nurses to connect with colleagues, network on a professional level and subscribe to professional “Lounges” (groups) to receive email updates of relevant news, events and other info.

 

Interactive Lounges are created primarily by nursing schools, local chapters of nurse associations and major nurse employers. Additionally, Nurses Lounge also has 73 metro/state lounges which aggregate all of the professional nursing news, events and employment opportunities within that certain geographic region.

 

As a communication utility, Nurses Lounge solves many of the communication issues these organizations face:

 

· Local chapters of nurse associations use Nurses Lounge (opposed to outdated, hard to manage static web sites and email lists) as a more efficient way to communicate with their members as well as for recruiting new members and disseminating news and information to their local nursing profession.

 

· Nursing Schools benefit with a group in the Nurses Lounge not only as a means to easily distribute news and info, but also to manage and keep alumni notified of educational opportunities as well as providing a professional networking platform between students, faculty and alumni.

 

· Employer’s benefits include managing a positive brand, distribution of news, job postings, managing employee referral programs as well as internal communications for things such as shared governance.

 

There is no cost to schools, associations or other non-profit organizations to utilize the Nurses Lounge communication and networking capabilities while employers, and other for profit organizations, are charged minimal set-up fees that also may include unlimited job postings for a limited time.

 

Nurses that register with the Nurses Lounge by creating a professional profile are then able to share their perspectives through their participation in these groups in order to keep current on news, information, meetings and jobs openings as well as to network professionally with like-minded colleagues.  Participation and postings by members in Lounges creates new connections and makes it easier for people to find and connect with each other.  Finally, by inviting new colleagues and contacts to join them in the Nurses Lounge, members both grow their own network of connections and help to increase membership in Nurses Lounge.

 

Along with the professional network, Nurses Lounge has a fully functional job board for nursing professionals as well as a nursing faculty job board specialty site for nursing schools looking to hire faculty. This specialty site was launched in June 2012.

 

The faculty job board was launched in response to the increasing number of schools joining our network and adding their faculty and graduate degree nurses coupled with a growing shortage of nursing faculty.

 

To date Nurses Lounge, with no dedicated sales force or marketing campaign, has generated small amounts of job posting revenue from these job sites as well as from employers and other for profit organizations paying set-up fees for activating their interactive lounges.

 

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Plans Moving Forward

 

The Company previously operated as an event planning consulting company engaged in the planning and execution of medical meetings and educational programs for nurses, physicians, pharmacists and other healthcare professionals.  Subsequent to the acquisition of Nurses Lounge, we have focused solely on Nurses Lounge, and have discontinued and spun-off the event planning and consulting operations as of November 30, 2010.  

 

Moving forward in the near term, management intends to concentrate on growing individual nurse membership by adding Nursing Schools, Student Nurse Associations and Professional Nurse Associations to our network.

 

We expect to do this by introducing these organizations to and educating them on the benefits that our network offers. Specifically in terms of providing them a free, branded turn-key solution for instant communications of news and information to their constituents as well as increased exposure for their organization to the broader nursing profession.

 

As these organizations join our network they invite their members to join their “interactive lounge”. As an example, the University of Texas at Arlington College of Nursing to date has had over 900 students, alumni and faculty connect with them in the Nurses Lounge via an invitation sent from the Dean of their nursing school as well as Nurses Lounge “NL” icon they have placed on their web site.

 

We also intend to strengthen our brand and grow membership through increased marketing efforts and expanded and enhanced features and functionalities over time, funding permitting.

 

Additionally, as membership grows, management will look to diversify the revenue model from primarily job posting revenue. Potential income streams are expected to include targeted banner ads, email sponsorships, Groupon type sales as well as mobile apps.

 

With funds permitting, to support these revenue streams and grow our network, management will be looking to hire 12-15 “regional publishers” as well as marketing support personnel. These publishers will be responsible for revenue generation and membership growth in their assigned markets.

 

We are currently considering offerings of securities under private placements, acquisitions (which are directly related to Nurses Lounge), issuing debt instruments, and joint ventures with other companies public and private and other activities to either build sales or generate much needed capital to grow and undertake our business plan (for example, obtain, if possible, loans).  However, we do not currently have any lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt securities and loans from our shareholders and other third parties.

 

Our financial statements contain information expressing substantial doubt about our ability to continue as a going concern. The consolidated financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we satisfy our liabilities and commitments in the ordinary course of business.

 

Moving forward throughout fiscal year 2014, we hope to expand our services into providing Student Nurse Associations (SNAs), a needed professional communication platform that will allow them to help communicate more efficiently with current members while additionally building their organizations membership. Additionally, with our administration and after our SEC reporting obligations are current, we will be positioned to spend the majority of any equity raised to build a national sales team with needed sales and marketing.  The Company estimates it needs $750,000 to fully implement its business plan.  However, the Company can support its operations for 90 days with its cash on hand.

 

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Recent Activity

 

From the launch of the Nurses Lounge network in 2009 through the year ending January 31, 2011 Nurses Lounge focused on working with organizations around the Dallas Fort Worth, Texas area. This process and time allowed us to better understand the communication needs and desires of these organizations and provided us the insight on how best to structure the network to meet the communication needs of our target markets across the nation.

 

During the fiscal year ending January 31, 2012, with 2 full time employees, Nurses Lounge concentrated on building out the network by creating 73 metro lounges representing all the major metro areas and/or states across the U.S.  Additionally we created over 500 “interactive lounges” for Bachelor of Science in Nursing (BSN) schools across the nation and positioned ourselves for a national rollout as funds became available.

 

During the fiscal year that ended January 31, 2013 we began marketing to BSN schools and selected associations across the U.S.

 

Additionally we launched a “Nursing Faculty” specialty job site in June of 2012. This was done based on the numerous experienced faculty members and educationally qualified nurses (MSN and PhD candidates) that were joining our network as well as the growing demand for nursing faculty across the U.S.  Additionally management found very little direct competition in the space.

 

***

 

Results for the three months ended April 30, 2013

Revenue. Revenue for the three months ended April 30, 2013 and 2012 was $5,735 and $2,045.

Cost of Revenues. Cost of revenues were $16,133 and $4,964 for the three months ended April 30, 2013 and 2012 respectively The increase in costs was due to the operation of its websites which started generating revenue.

Operating Expenses. Operating expenses for the three months ended April 30, 2013 and 2012 were $157,090 and $101,856 respectively. The above expenses include depreciation and amortization amounts of $41,937 and $33,000 for the three months ended April 30, 2013 and 2012, respectively.

Other Income (Expense). Other income represents interest paid or accrued on loans which was $18,797 and $16,149 for the three months ended April 30, 2013 and 2012, respectively.

Liquidity and Capital Resources

As of April 30, 2013, the Company had total current assets of $32,103, and total long-term assets of $50,280 consisting of deferred fees of $50,280 relating to consideration paid for making or extending loans. We had total liabilities of $976,167, which were all current liabilities, They included accounts payable of $10,625, accrued expenses of $2,838, amounts due to related party of $215,424, which amounts were due to Tim Armes and Garrett Armes and have the following terms, due on demand, accrued interest payable of $106,630 and $640,650 of current portion of long-term debt in connection with working capital loans.

 

As of April 30, 2013, the Company had negative working capital of $944,064, comprised of current assets of $32,103 and current liabilities of $976,167.

 

Net cash used in operations for the three months ended April 30, 2013 was $96,462 compared to $18,362 for the three months ended April 30, 2012.

 

Cash provided from or used for investing activities was $0 in the three months ended April 30, 2013 and $0 for the same period in 2012.

 

Cash provided by financing activities for the three months ended April 30, 2013 was $37,500 compared to $17,500 for the same period in 2012.

 

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On or around March 2, 2010, we entered into a Letter of Intent to acquire the Uniform Resource Locator (“URL”) www.WorkAbroad.com (“WorkAbroad.com” and the “Purchase”).  The purchase price was $225,000 (the “Purchase Price”).  On March 8, 2010, the Company paid the required 10% down payment (equal to $22,500) on the purchase price to Steve Elisberg (the “Seller”).  The remaining balance due ($202,500) pursuant to the Purchase was payable at a rate of $2,248 per month, beginning in April 2010, based on a 10 year amortizing loan with interest at 6% with a balloon payment of all unpaid principal and interest due 36 months after closing (the “Loan”).  The parties entered into a definitive Asset Purchase Agreement on August 10, 2010 and a formal closing of the Purchase occurred on August 10, 2010.  The Company made the initial payment to the Seller in March 2010 so that it could assume operations of WorkAbroad.com at the time of the parties’ entry into the Letter of Intent rather than waiting for the formal closing.

 

The repayment of the Loan was secured by a security interest over WorkAbroad.com. Since the closing of the Nurses Lounge acquisition, Timothy Armes, the controlling shareholder of the Company decided to terminate pursuit of the previously disclosed acquisition opportunities so that the Company could focus on developing Nurses Lounge and businesses that are complementary to Nurses Lounge.

 

In connection therewith on July 8, 2011, the Company entered into an Asset Purchase Agreement with Fiakow Properties, LLC (“Fiakow”, pursuant to which Fiakow purchased the Company’s entire right and interest in workabroad.com and the August 10, 2010 Asset Purchase Agreement for an aggregate of $1,000, provided that the Seller did not formally release the Company from liability in connection with the August 10, 2010 Asset Purchase Agreement and the Loan, which Loan has been repaid in full as of the date of this filing.

 

On November 4, 2010, the Company obtained a $100,000 loan from a third party, which was evidenced by a Promissory Note. The note bears interest at the rate of 12% per annum, payable monthly in arrears, and has a maturity date of November 4, 2011. The repayment of the note is secured by a security interest in substantially all of the Company’s assets. In consideration for making the loan, the Company agreed to issue the third party 400,000 shares of restricted common stock. The stock issued had a value of $60,000 on the date of the grant, based on the closing trading price on November 4, 2010. The $60,000 is treated as a discount on the loan. Accordingly, the loan will be reflected as a liability of $40,000 and the $60,000 discount will be reduced pro rata over the term of the loan as additional interest expense on the note and added to the loan balance on a monthly basis.

 

On February 8, 2011, the Company obtained a $70,000 loan from a third party, which was evidenced by a Promissory Note. The note bears interest at the rate of 12% per annum, payable monthly in arrears, and has a maturity date of February 15, 2012. In consideration for making the loan, the Company agreed to issue the third party 100,000 shares of restricted common stock. The loan will be funded in three installments: $30,000 on or before February 10, 2011; $20,000 on or before February 24, 2011; and $20,000 on or before March 10, 2011. The stock issued had a value of $18,200 on the date of the grant, based on the closing trading price on February 8, 2011. The $18,200 is treated as a discount on the loan. Accordingly, the loan will be reflected as a liability of $51,800 and the $18,200 discount will be reduced pro rata over the term of the loan as additional interest expense on the note and added to the loan balance on a monthly basis.

 

The Company has borrowed funds and/or sold stock for working capital.  These transactions are detailed in the section “Recent Sales of Unregistered Securities”.

 

Currently the Company does not have sufficient cash reserves or revenues to meet its contractual obligations under its outstanding notes payable and to pay its ongoing monthly expenses, which the Company anticipates totaling approximately $250,000 over the next 12 months.  The Company has been able to continue operating to date largely from loans made by its shareholders and other debt financings to date.  The Company is currently looking at both short-term and more permanent financing opportunities, including debt or equity funding, bridge or short term loans, and/or traditional bank funding, but we have not decided on any specific path moving forward.  Until we have raised sufficient funding to pay our ongoing expenses associated with being a public company, and we have sufficient funds to support our planned operations, the Company can provide no assurances that it will be able to meet its short and long term liquidity needs, until necessary financing is secured.  The Company has started to generate revenue from the Nurses Lounge business in 2011, which the Company hopes will increase to the point where the Company can finance at least a substantial portion of the Company’s obligations, of which there can be no assurance.

 

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We do not currently have any additional formal commitments or identified sources of additional capital from third parties or from our officers, director or significant shareholders. We can provide no assurance that additional financing will be available on favorable terms, if at all. If we are not able to raise the capital necessary to continue our business operations, we may be forced to abandon or curtail our business plan.

 

In the future, we may be required to seek additional capital by selling additional debt or equity securities, selling assets, if any, or otherwise be required to bring cash flows in balance when we approach a condition of cash insufficiency. The sale of additional equity or debt securities, if accomplished, may result in dilution to our then shareholders. We provide no assurance that financing will be available in amounts or on terms acceptable to us, or at all.

 

ITEM 3. Quantitative and Qualitative Disclosure about Market Risk.

 

Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), we are not required to provide the information required by this Item as it is a “smaller reporting company,” as defined by Rule 229.10(f)(1).

 

ITEM 4. Controls and Procedures

(a)           Evaluation of disclosure controls and procedures. Our Chief Executive Officer and Principal Financial Officer, after evaluating the effectiveness of our "disclosure controls and procedures" (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this Quarterly Report on Form 10-Q (the "Evaluation Date"), has concluded that as of the Evaluation Date, our disclosure controls and procedures were not effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.  Moving forward, we hope that our Chief Executive Officer and Principal Financial Officer will be able to devote the additional time and effort required so that our disclosure controls and procedures are once again effective.  Notwithstanding the assessment that our internal controls and procedures were not effective, we believe that our financial statements contained in this Quarterly Report for the quarter ended April 30, 2013 fairly present our financial position, results of operations and cash flows for the years and months covered thereby in all material respects.

 

(b)           Changes in internal control over financial reporting. There were no changes in our internal control over financial reporting during our most recent fiscal quarter that materially affected, or were reasonably likely to materially affect, our internal control over financial reporting.

 

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PART II

 

Item 1. Legal Proceedings

 

From time to time, we may become party to litigation or other legal proceedings that we consider to be a part of the ordinary course of our business. We are not currently involved in legal proceedings that could reasonably be expected to have a material adverse effect on our business, prospects, financial condition or results of operations. We may become involved in material legal proceedings in the future.

 

Item 1A. Risk Factors

 

There have been no material changes from the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the year ended January 31, 2013, filed with the Commission on September 23, 2013, other than as set forth below, and investors are encouraged to review such risk factors below and in the Form 10-K, prior to making an investment in the Company.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

Recent Sales of Unregistered Securities

 

  Consideration   Date # Shares
Balance, Number of shares outstanding, January 31, 2013       50,125,528
 Shares issued for deferred fees Incentive for new loan (1) Feb, 2013 600,000
Shares issued for deferred fees Incentive for new loan (2) July 19, 2013 200,000
Shares issued for deferred fees Incentive for new loan (3) July 31, 2013 166,667
Shares issued for deferred fees Incentive for new loan (4) July 31, 2013 133,334
Shares issued for deferred fees Incentive for new loan (5) July 31, 2013 133,334
Shares issued for deferred fees Note extension (6) July 31, 2013 1,100,000
Shares issued for note conversion Convert $25,000 note (7) Aug 5, 2013 250,000
Balance, Number of shares outstanding, September 5, 2013       52,708,863

 

   

(1) 600,000 Shares Restricted common stock issued as compensation for engagement term for one year of Consultant's (Inspire Value) services valued at $5,000 per month or $60,000 total. The stock was issued with an agreed upon value of $0.10 per share. The value of these shares were determined on the day of agreement and booked in the financial statements as Deferred Fees and amortized over the life of the loan.

 

The Company claims an exemption from registration afforded by Section 4(2) of the Securities Act of 1933, as amended (the “Act”) since the foregoing issuances and grants did not involve a public offering, the recipients took the shares and options for investment and not resale, the Company took appropriate measures to restrict transfer, and the recipients were either (a) “accredited investors” and/or (b) had access to similar documentation and information as would be required in a Registration Statement under the Act. No underwriters or agents were involved in the foregoing issuances and the Company paid no underwriting discounts or commissions.

 

(2) 200,000 total shares issued on July 19, 2013 in consideration for lending the Company $30,000, note dated July 19, 2013, 12% annual interest rate, due October 31, 2013, Jamie Bernard was issued a total of 200,000 shares of restricted common stock. Additionally, the note is convertible at $0.10 per share. The value of these shares were determined on the day of agreement and booked in the financial statements as Deferred Fees and amortized over the life of the loan.

 

 

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The Company claims an exemption from registration afforded by Section 4(2) of the Securities Act of 1933, as amended (the “Act”) since the foregoing issuances and grants did not involve a public offering, the recipients took the shares and options for investment and not resale, the Company took appropriate measures to restrict transfer, and the recipients were either (a) “accredited investors” and/or (b) had access to similar documentation and information as would be required in a Registration Statement under the Act. No underwriters or agents were involved in the foregoing issuances and the Company paid no underwriting discounts or commissions.

 

(3) 166,667 shares were issued on 7/31/2013 in consideration for lending the Company $25,000, note dated July 31, 2013, 12% annual interest rate, due Oct 31, 2013. Additionally, the note is convertible at $0.10 per share. The value of these shares was determined on the day of agreement and booked in the financial statements as Deferred Fees and amortized over the life of the loan.

 

The Company claims an exemption from registration afforded by Section 4(2) of the Securities Act of 1933, as amended (the “Act”) since the foregoing issuances and grants did not involve a public offering, the recipients took the shares and options for investment and not resale, the Company took appropriate measures to restrict transfer, and the recipients were either (a) “accredited investors” and/or (b) had access to similar documentation and information as would be required in a Registration Statement under the Act. No underwriters or agents were involved in the foregoing issuances and the Company paid no underwriting discounts or commissions.

 

(4) 133,334 shares were issued on 7/31/2013 in consideration for lending the Company $20,000, note dated July 31, 2013, 12% annual interest rate, due Oct 31, 2013. Additionally, the note is convertible at $0.10 per share. The value of these shares was determined on the day of agreement and booked in the financial statements as Deferred Fees and amortized over the life of the loan.

 

The Company claims an exemption from registration afforded by Section 4(2) of the Securities Act of 1933, as amended (the “Act”) since the foregoing issuances and grants did not involve a public offering, the recipients took the shares and options for investment and not resale, the Company took appropriate measures to restrict transfer, and the recipients were either (a) “accredited investors” and/or (b) had access to similar documentation and information as would be required in a Registration Statement under the Act. No underwriters or agents were involved in the foregoing issuances and the Company paid no underwriting discounts or commissions.

 

(5) 133,334 total shares issued on 7/31/2013, In consideration for lending the Company $20,000, note dated July 31, 2013, 12% annual interest rate, due Oct 31, 2013 - the note was converted on August 5, 2013. Additionally, the note is convertible at $0.10 per share. The value of these shares was determined on the day of agreement and booked in the financial statement as Deferred Fees and amortized over the life of the loan.

 

The Company claims an exemption from registration afforded by Section 4(2) of the Securities Act of 1933, as amended (the “Act”) since the foregoing issuances and grants did not involve a public offering, the recipients took the shares and options for investment and not resale, the Company took appropriate measures to restrict transfer, and the recipients were either (a) “accredited investors” and/or (b) had access to similar documentation and information as would be required in a Registration Statement under the Act. No underwriters or agents were involved in the foregoing issuances and the Company paid no underwriting discounts or commissions.

 

(6) 1,100,000 shares issued on 7/31/2013 in consideration for extending his original  note a second time with his original note  dated  November 4, 2010 and due November 4, 2011 and then renewed and due November 4, 2012 and additionally renewed a second time and due November 4, 2013 in the amount of $100,000 for an additional year. The value of these shares was determined on the day of agreement and booked in the financial statements as Deferred Fees and amortized over the life of the loan.

 

The Company claims an exemption from registration afforded by Section 4(2) of the Securities Act of 1933, as amended (the “Act”) since the foregoing issuances and grants did not involve a public offering, the recipients took the shares and options for investment and not resale, the Company took appropriate measures to restrict transfer, and the recipients were either (a) “accredited investors” and/or (b) had access to similar documentation and information as would be required in a Registration Statement under the Act. No underwriters or agents were involved in the foregoing issuances and the Company paid no underwriting discounts or commissions.

 

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(7) Conversion of Note dated July 31, 2013 that had a conversion feature at $.10 per share. These shares were issued for the conversion of a $25,000 note.

 

Options and Warrants

 

(8)  Three options for 127,500 shares of restricted common stock at an exercise price of $0.10 per share and for a term of 5 years was awarded Geneva7, LLC in consideration for loaning the Company $25,000 and renewing the note two additional times. Geneva7, LLC originally loaned the Company $25,000 at 12% interest on August 29, 2011 and was awarded an option to purchase 127,500 shares of restricted common stock at an exercise price of $0.10. The term of the option is 5 years. The loan matured on April 30th 2012 and Geneva 7 agreed to renew the loan and accrue interest thru July 31, 2013 and additionally renewed the loan thru October 31, 2013 when it matured on July 31, 2013. With each additional renewal Geneva7 received an additional option to purchase 127,500 shares of restricted common stock at an exercise price of $0.10 per share and for a term of 5 years.

 

(9) Warrant to purchase 1,000,000 shares. The Company entered into a contract for services with Horse and Hammerhead Marketing Solutions, LLC, a management consulting firm. Based on the agreement, the consultant was issued a warrant for 1,000,000 shares of MCGI’s restricted common stock at an exercise price of $0.12 per/share with a 4-year term.

 

The Company claims an exemption from registration afforded by Section 4(2) of the Securities Act of 1933, as amended (the “Act”) since the foregoing issuances and grants did not involve a public offering, the recipients took the shares and options for investment and not resale, the Company took appropriate measures to restrict transfer, and the recipients were either (a) “accredited investors” and/or (b) had access to similar documentation and information as would be required in a Registration Statement under the Act. No underwriters or agents were involved in the foregoing issuances and the Company paid no underwriting discounts or commissions.

 

(10) Warrant to purchase 100,000 shares. The Company entered into a contract for services with EBCO, LLC. Based on the agreement, in consideration for extending their $16,000 loan, they were issued a warrant for 100,000 shares of MCGI’s restricted common stock at an exercise price of $0.10 per/share, expiring March 29, 2016.

 

The Company claims an exemption from registration afforded by Section 4(2) of the Securities Act of 1933, as amended (the “Act”) since the foregoing issuances and grants did not involve a public offering, the recipients took the shares and options for investment and not resale, the Company took appropriate measures to restrict transfer, and the recipients were either (a) “accredited investors” and/or (b) had access to similar documentation and information as would be required in a Registration Statement under the Act. No underwriters or agents were involved in the foregoing issuances and the Company paid no underwriting discounts or commissions.

 

Item 3. Default Upon Senior Securities

 

None.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

 

None.

 

Item 6. Exhibits

 

See the Exhibit Index immediately following the signature page of this Report on Form 10-Q.

 

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SIGNATURES

 

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

 

Medcareers Group, Inc.

 

By:  /s/  Timothy Armes

Timothy Armes

Chairman (Director), Chief Executive Officer, President, Secretary and Treasurer

(Principal Executive Officer and Principal Financial/Accounting Officer)

 

Date: September 24, 2013

21
 

 

EXHIBIT INDEX

 

Exhibit

Number

Description of Exhibit
   
3.1(1) Articles of Incorporation
   
3.2(5) Certificate of Amendment to Articles of Incorporation
   
3.3(5) Certificate of Correction to Certificate of Amendment to Articles of Incorporation
   
3.2(1) Bylaws
   
10.1(1) Revolving Credit Promissory Note with Kevin McAdams (December 12, 2007)
   
10.2(1) Convertible Promissory Note with David M. Loev (March 11, 2008)
   
10.3(2) Amended Convertible Promissory Note with David M. Loev
   
10.4(3) Amended Revolving Credit Promissory Note with Kevin McAdams
   
10.5(3) Second Amended Convertible Promissory Note with David M. Loev
   
10.6(4) Stock Purchase Agreement
   
10.7(4) Voting Agreement
   
10.8(4) Debt Extinguishment Agreement (Kevin McAdams)
   
10.9(4) Debt Extinguishment Agreement (David M. Loev)
   
10.10(6) Agreement with Premier Healthcare Professionals, Inc.
   
10.11(7) Promissory Note
   
10.12(8) Asset Purchase Agreement Relating to the Purchase of WorkAbroad.com
   
10.13(8) WorkAbroad.com Development Proposal
   
10.14(9) Share Exchange Agreement with Nurses Lounge and the Shareholders of Nurses Lounge
   
10.15(9) Cancellation of Shares Agreements
   
10.16(9) Voting Agreement
   
10.17(9) Employment Agreement with Timothy Armes (Nurses Lounge)
   
10.18(9) Option Agreement with Garret Armes
   
10.19(9) Option Agreement with Timothy Armes
   
10.20(9) Spin-Off Agreement
   
10.21(9) $190,000 Promissory Note
   

 

 

22
 

 

 

10.22(9) $100,000 Promissory Note
   
10.23(10) $50,000 Promissory Note
   
10.24(13) Asset Purchase Agreement workabroad.com (July 8, 2011)
   
10.25(13) Employment Agreement (Timothy Armes)( November 18, 2010)
   
10.26(13) Employment Agreement (Garret Armes)(November 18, 2010)
   
10.27(13) Common Stock Purchase Option (Timothy Armes)(November 18, 2010)(4,000,000 shares)
   
10.28(13) Common Stock Purchase Option (Garret Armes)(November 18, 2010)(2,000,000 shares)
   
16.1(11) Letter from GBH CPAs, PC dated March 29, 2013
   
31.1* Certificate of the Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
   
32.1**  Certificate of the Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
   
99.1(8) Financial Statements of WorkAbroad.com
   
99.2(8) Pro Forma Financial Information of WorkAbroad.com
   
99.3(12) Audited Balance Sheets of Nurses Lounge as of October 31, 2010 and December 31, 2009; Audited Statement of Operations of Nurses Lounge for the ten months ended October 31, 2010, year ended December 31, 2009 and cumulative period since re-entering the development stage on January 1, 2009; Audited Statement of Partners’ Capital of Nurses Lounge for the year ended December 31, 2009 and ten months ended October 31, 2010; and Audited Statements of Cash Flows of Nurses Lounge for the ten months ended October 31, 2010, year ended December 31, 2009 and cumulative period since re-entering the development stage on January 1, 2009, and the notes thereto
   
99.4(12) Unaudited Pro Forma Condensed Statement of Operations for the nine months ended October 31, 2010 and Unaudited Pro Forma Condensed Balance Sheet as of October 31, 2010, and the notes thereto

 

*   Filed herewith.

 

** Furnished herewith. 

 

(1)  Filed as Exhibits to the Company’s Registration Statement on Form S-1 filed with the Commission on July 22, 2008, and incorporated herein by reference.

 

(2) Filed as an Exhibit to the Company’s Quarterly Report on Form 10-Q filed with the Commission on December 19, 2008, and incorporated herein by reference.

 

(3) Filed as an Exhibit to the Company’s Annual Report on Form 10-K filed with the Commission on May 8, 2009, and incorporated herein by reference.

 

(4) Filed as an Exhibit to the Company’s Current Report on Form 8-K filed with the Commission on October 9, 2009, and incorporated herein by reference.

 

23
 

 

 

(5) Filed as an Exhibit to the Company’s Current Report on Form 8-K, filed with the Commission on January 7, 2010, and incorporated herein by reference.

 

(6) Filed as an Exhibit to the Company’s Current Report on Form 8-K, filed with the Commission on May 7, 2010, and incorporated herein by reference.

 

(7) Filed as an Exhibit to the Company’s Quarterly Report on Form 10-Q, filed with the Commission on May 14, 2010, and incorporated herein by reference.

 

(8) Filed as an Exhibit to the Company’s Current Report on Form 8-K, filed with the Commission on August 11, 2010, and incorporated herein by reference.

 

(9) Filed as an Exhibit to the Company’s Current Report on Form 8-K, filed with the Commission on December 2, 2010, and incorporated herein by reference.

 

(10) Filed as an Exhibit to the Company’s Quarterly Report on Form 10-Q, filed with the Commission on March 11, 2011, and incorporated herein by reference.

 

(11) Filed as an Exhibit to the Company’s Current Report on Form 8-K, filed with the Commission on March 29, 2011, and incorporated herein by reference.

 

(12) Filed as an Exhibit to the Company’s Current Report on Form 8-K/A, filed with the Commission on August 16, 2013, and incorporated herein by reference.

 

(13) Filed as an Exhibit to the Company’s Annual Report on Form 10-K, filed with the Commission on September 3, 2013, and incorporated herein by reference. 

 

24
 

EX-31.1 2 ex31one.htm CERTIFICATION

 

 

EXHIBIT 31.1

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Timothy Armes, certify that:

 

  1. I have reviewed this report on Form 10-Q of MEDCAREERS GROUP, INC.;
  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
  4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)Designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusion about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
d)Disclosed in this report any change to the registrant's internal controls over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal controls over financial reporting; and,
  1. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a)all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and,
b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

 

 

Date: September 24, 2013

/s/ Timothy Armes

Timothy Armes

Chief Executive Officer

(Principal Executive Officer and Principal Financial/Accounting Officer)

EX-32.1 3 ex32one.htm CERTIFICATION

 

 

EXHIBIT 32.1

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Timothy Armes, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of MedCareers Group, Inc. on Form 10-Q for the period ended April 30, 2013 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents in all material respects the financial condition and results of operations of MedCareers Group, Inc.

 

By:/s/ Timothy Armes

Timothy Armes

Chief Executive Officer

(Principal Executive Officer and Principal Financial/Accounting Officer)

 

September 24, 2013

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Consolidated Statements of Operations (USD $)
3 Months Ended 49 Months Ended
Apr. 30, 2013
Apr. 30, 2012
Apr. 30, 2013
Income Statement [Abstract]      
Revenue $ 5,735 $ 2,045 $ 46,899
Cost of Sales 16,133 4,964 126,847
Gross Profit (Loss) (10,398) (2,919) (79,948)
Operating Expenses:      
Depreciation and Amortization 41,397 33,000 589,717
Selling and Marketing 12,608 1,774 97,029
General and Administrative 102,545 67,082 2,917,470
Total Operating Expenses 157,090 101,856 3,604,216
Net Operating Loss (167,488) (104,775) (3,684,164)
Other Income (Expense):      
Loss on Disposal of Assets 0 0 (4,087)
Loss on Recapitalization 0 0 (223,454)
Interest Expense (18,797) (16,149) (357,299)
Total Other Income (Expense) (18,797) (16,149) (584,840)
Net Loss $ (186,285) $ (120,924) $ (4,269,004)
Weighted Average Shares Outstanding, Basic and Diluted 0.00 0.00  
Basic and Diluted Earnings (Loss) per Share $ 50,125,528 $ 43,350,112  
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Note 5 - Employee Benefit Plans
3 Months Ended
Apr. 30, 2013
Compensation and Retirement Disclosure [Abstract]  
Note 5 - Employee Benefit Plans

NOTE 4 - STOCKHOLDERS’ EQUITY

Preferred Stock:

The Company is authorized to issue 10,000,000 shares of Preferred Stock, having a par value of $0.001 per share.  There are no preferred shares outstanding at January 31, 2013 and 2012.

Common Stock:

The Company is authorized to issue 350,000,000 common shares at a par value of $0.001 per share.  These shares have full voting rights.  At January 31, 2013 and 2012, there were 50,125,028 and 43,315,000 shares outstanding, respectively.  No dividends were paid in the years ended January 31, 2013 or 2012.  

Options and Warrants:

The Company had the following options or warrants outstanding at January 31, 2013:

 

Issued To # Options Dated Expire Strike Price
President and CEO 4,000,000 11/18/2010 11/18/2015 $0.25 per share
Vice President 2,000,000 11/18/2010 11/18/2015 $0.25 per share
Shareholder 127,500 08/28/2011 08/28/2016 $0.10 per share
Shareholder 50,000 04/04/2012 04/04/2013 $0.20 per share
Shareholder 8,000 04/27/2012 04/27/2013 $0.20 per share
Shareholder 127,500 04/29/2012 04/29/2017 $0.10 per share
Shareholder 200,000 05/17/2012 05/17/2013 $0.20 per share
Shareholder 50,000 05/22/2012 05/22/2013 $0.20 per share
Shareholder 80,000 05/21/2012 05/21/2013 $0.20 per share
Shareholder 25,000 07/12/2012 07/12/2013 $0.20 per share
Shareholder 25,000 07/10/2012 07/10/2013 $0.20 per share
Shareholder 50,000 08/09/2012 08/09/2013 $0.20 per share
Shareholder 1,000,000 08/31/2012 08/31/2016 $0.12 per share
Shareholder 2,000,000 01/18/2013 01/18/2018 $0.12 per share

 

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Note 1 - Nature of Activities and Significant Accounting Policies
3 Months Ended
Apr. 30, 2013
Accounting Policies [Abstract]  
Note 1 - Nature of Activities and Significant Accounting Policies

 

NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES

 

Nature of Activities, History and Organization – The Company was formed as RX Scripted, LLC on December 30, 2004 as a North Carolina limited liability company and converted to a Nevada corporation as RX Scripted, Inc. on December 5, 2007.  On December 16, 2009, an amendment was filed with the State of Nevada to change the name to “MedCareers Group, Inc.” (the “Company” or “MedCareers”) and change the authorized capital of the Company. On November 5, 2010, the Company issued 24,000,000 shares of its common stock in exchange for 100% of Nurses Lounge, Inc. (“Nurses Lounge”), a Texas corporation. As a result of the share exchange, Nurses Lounge became the wholly-owned subsidiary of MedCareers. As a result, the shareholders of Nurses Lounge owned a majority of the voting stock of MedCareers. The transaction was accounted for as a reverse merger whereby Nurses Lounge was considered to be the accounting acquirer as its shareholders retained control of MedCareers after the exchange, although MedCareers is the legal parent company. The share exchange was treated as a recapitalization of MedCareers. As such, Nurses Lounge (and its historical financial statements) is the continuing entity for financial reporting purposes. The financial statements have been prepared as if MedCareers had always been the reporting company and, on the share exchange date, changed its name and reorganized its capital.  The Company operates a website for nurses, nursing schools and nurses organizations which enables the respective entities to communicate more easily and efficiently with their members.

Significant Accounting Policies:

The Company’s management selects accounting principles generally accepted in the United States of America and adopts methods for their application.  The application of accounting principles requires the estimating, matching and timing of revenue and expense. The accounting policies used conform to generally accepted accounting principles which have been consistently applied in the preparation of these financial statements.

The financial statements and notes are representations of the Company’s management which is responsible for their integrity and objectivity. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud.  The Company's system of internal  accounting control is designed to assure, among other items, that  1) recorded  transactions  are valid;  2) valid  transactions  are recorded;  and  3) transactions  are  recorded in the proper  period in a timely  manner to produce financial  statements which present fairly the financial  condition,  results of operations  and cash  flows of the  Company  for the  respective  periods  being presented.

Basis of Presentation:

The Company prepares its financial statements on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States.

Principles of Consolidation:

The financial statements include the accounts of MedCareers Group, Inc. as well as Nurses Lounge, Inc.  All significant inter-company transactions have been eliminated.  All amounts are presented in U.S. Dollars unless otherwise stated.

Development Stage Company:

 

The Company complies with ASC No. 915-10 for its characterization of the Company as development stage.

Cash and Cash Equivalents:

The Company considers all highly liquid debt instruments with a maturity of three months or less to be cash equivalents.  At times, cash balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”) insurance limits.  The carrying amount approximates fair market value.

Fixed Assets:

Fixed assets are carried at cost.  Depreciation is provided over each asset’s estimated useful life.  Upon retirement and disposal, the asset cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the determination of the net income.   Additions and significant improvements are capitalized and depreciated.

Advertising Costs:

The Company incurred no advertising costs for the years ended January 31, 2013 and 2012.

Income Taxes:

Income from the corporation is taxed at regular corporate rates per the Internal Revenue Code.  Although the Company has tax loss carry-forwards (see Note 7), there is uncertainty as to utilization prior to their expiration.  Accordingly, the future income tax asset amounts have been fully reserved by a valuation allowance.

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized when items of income and expense are recognized in the financial statements in different periods than when recognized in the tax return. Deferred tax assets arise when expenses are recognized in the financial statements before the tax returns or when income items are recognized in the tax return prior to the financial statements. Deferred tax assets also arise when operating losses or tax credits are available to offset tax payments due in future years. Deferred tax liabilities arise when income items are recognized in the financial statements before the tax returns or when expenses are recognized in the tax return prior to the financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Use of Estimates:

In order to prepare financial statements in conformity with accounting principles generally accepted in the United States, management must make estimates, judgments and assumptions that affect the amounts reported in the financial statements and determine whether contingent assets and liabilities, if any, are disclosed in the financial statements. The ultimate resolution of issues requiring these estimates and assumptions could differ significantly from resolution currently anticipated by management and on which the financial statements are based.

Fair Value of Financial Instruments:

 

Pursuant to ASC No. 820, “Fair Value Measurements and Disclosures”, the Company is required to estimate the fair value of all financial instruments included on its balance sheet as of January 31, 2013.  The Company’s financial instruments consist of cash, accounts payable, advances and notes payable.  The Company considers the carrying value of such amounts in the financial statements to approximate their fair value due to the short-term nature of these financial instruments.

 

Revenue Recognition:

 

Revenue from contracts for consulting services with fees based on time and materials or cost-plus are recognized as the services are performed and amounts are earned.  The Company considers amounts to be earned once evidence of an arrangement has been obtained, services are delivered, fees are fixed or determinable, and collectability is reasonably assured.  For contracts with fixed fees, the Company recognizes revenues as amounts become billable in accordance with contract terms, provided the billable amounts are not contingent, are consistent with the services delivered, and are earned. The Company recognizes revenue in accordance with ASC 605-10, "Revenue Recognition in Financial Statements", (formerly Staff Accounting Bulletin No. 104 (“SAB 104”)).   Revenue is recognized when persuasive evidence of an arrangement exists, delivery or service has occurred, the sales price is fixed or determinable and receipt of payment is probable.

Earnings per Common Share:

Earnings (loss) per share are calculated in accordance with ASC 260 “Earnings per Share”.   The weighted average number of common shares outstanding during each period is used to compute basic earnings (loss) per share.  Diluted earnings per share are computed using the weighted average number of shares and potentially dilutive common shares outstanding.   Dilutive potential common shares are additional common shares assumed to be exercised.     Potentially dilutive common shares consist of stock options and are excluded from the diluted earnings per share computation in periods where the Company has incurred a net loss, as their effect would be considered anti-dilutive.

There were no potentially dilutive common stock equivalents as of January 31, 2013, therefore basic earnings per share equals diluted earnings per share for the year ended January 31, 2013.  The Company had 9,743,000 options outstanding at January 31, 2013. As the Company incurred a net loss during the year ended January 31, 2013, the basic and diluted loss per common share is the same amount, as any common stock equivalents would be considered anti-dilutive.

Recently Issued Accounting Pronouncements:

The Company  does not expect  the  adoption  of  recently  issued  accounting pronouncements  to have a significant  impact on the Company’s  results of  operations, financial position or cash flows.

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Debt Disclosure [Abstract]  
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NOTE 3 - NOTES PAYABLE

 

The components of the Company’s debt as of January 31, 2013 and 2012 were as follows:

  2013   2012
Note Payable - $100,000, 12% interest payable monthly or accrued, due Nov 4, 2013 $ 100,000     $ 100,000  
Note Payable - $190,000, 12% interest payable monthly or accrued, due Oct 29, 2013 288,150     240,000  
Note Payable - $25,000, 12% interest payable monthly or accrued, due March 11, 2014 25,000     25,000  
Note Payable - $25,000, 12% interest added to note quarterly, due April 30, 2013 25,000     25,000  
Note Payable - $16,000, 12% interest added to note quarterly, due January 31, 2014 16,000     16,000  
Note Payable - $70,000, 12% interest added to note quarterly, due February 4, 2013 70,000     70,000  
Note Payable - $40,000, 12% interest added to note quarterly, due April 28, 2013 40,000     40,000  
Note Payable - $4,000, 12% interest added to note quarterly, due April 30, 2013 4,000     4,000  
Note Payable - $30,000, 12% interest added to note quarterly, due Nov 5, 2013 30,000     0  
Note Payable - $5,000, 12% interest added to note quarterly, due Nov 5, 2013 5,000     0  
Subtotal 603,150     520,000  
Less – currently payable (578,150)     (495,000)  
Long-term debt $ 25,000     $    25,000  
               

 

The Company had accrued $89,333 and $36,046 interest on the notes at January 31, 2013 and 2012, respectively.

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Apr. 30, 2013
Schedule of Investments [Abstract]  
Note 6 - Income Taxes

 

NOTE 6 – INCOME TAXES

 

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   Less valuation allowance     (837,432 )     (837,432 )
   Net deferred tax asset   $              0     $             0  

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Note 4 - Stockholders' Equity
3 Months Ended
Apr. 30, 2013
Equity [Abstract]  
Note 4 - Stockholders' Equity

 

NOTE 4 - STOCKHOLDERS’ EQUITY

Preferred Stock:

The Company is authorized to issue 10,000,000 shares of Preferred Stock, having a par value of $0.001 per share.  There are no preferred shares outstanding at January 31, 2013 and 2012.

Common Stock:

The Company is authorized to issue 350,000,000 common shares at a par value of $0.001 per share.  These shares have full voting rights.  At January 31, 2013 and 2012, there were 50,125,028 and 43,315,000 shares outstanding, respectively.  No dividends were paid in the years ended January 31, 2013 or 2012.  

Options and Warrants:

The Company had the following options or warrants outstanding at January 31, 2013:

 

Issued To # Options Dated Expire Strike Price
President and CEO 4,000,000 11/18/2010 11/18/2015 $0.25 per share
Vice President 2,000,000 11/18/2010 11/18/2015 $0.25 per share
Shareholder 127,500 08/28/2011 08/28/2016 $0.10 per share
Shareholder 50,000 04/04/2012 04/04/2013 $0.20 per share
Shareholder 8,000 04/27/2012 04/27/2013 $0.20 per share
Shareholder 127,500 04/29/2012 04/29/2017 $0.10 per share
Shareholder 200,000 05/17/2012 05/17/2013 $0.20 per share
Shareholder 50,000 05/22/2012 05/22/2013 $0.20 per share
Shareholder 80,000 05/21/2012 05/21/2013 $0.20 per share
Shareholder 25,000 07/12/2012 07/12/2013 $0.20 per share
Shareholder 25,000 07/10/2012 07/10/2013 $0.20 per share
Shareholder 50,000 08/09/2012 08/09/2013 $0.20 per share
Shareholder 1,000,000 08/31/2012 08/31/2016 $0.12 per share
Shareholder 2,000,000 01/18/2013 01/18/2018 $0.12 per share

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following options or warrants outstanding at January 31, 2013:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 21%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Issued To</font></td> <td style="width: 16%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif"># Options</font></td> <td style="width: 20%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Dated</font></td> <td style="width: 19%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Expire</font></td> <td style="width: 24%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">Strike Price</font></td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">President and CEO</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">4,000,000</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">11/18/2010</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">11/18/2015</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">$0.25 per share</font></td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Vice President</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">2,000,000</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">11/18/2010</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">11/18/2015</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">$0.25 per share</font></td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, 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text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">50,000</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">05/22/2012</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">05/22/2013</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">$0.20 per share</font></td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Shareholder</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">80,000</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, 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padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">$0.20 per share</font></td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Shareholder</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">25,000</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">07/10/2012</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">07/10/2013</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">$0.20 per share</font></td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Shareholder</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, Serif">50,000</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">08/09/2012</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">08/09/2013</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Times New Roman, Times, Serif">$0.20 per share</font></td></tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><font style="font: 10pt Times New Roman, Times, Serif">Shareholder</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Times New Roman, Times, 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Jan. 31, 2013
Statement of Financial Position [Abstract]    
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Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.001 $ 0.001
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Note 9 - Recent Accounting Pronouncements
3 Months Ended
Apr. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Note 9 - Recent Accounting Pronouncements

 

NOTE 9 – RECENT ACCOUNTING PRONOUNCEMENTS

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flows.

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Consolidated Statement of Cash Flows (USD $)
3 Months Ended 49 Months Ended
Apr. 30, 2013
Apr. 30, 2012
Apr. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net Loss $ (186,285) $ (120,924) $ (4,269,004)
Adjustments to reconcile net loss to net cash used (provided) by operating activiites      
Depreciation of Property and Equipment 0 0 25,826
Amortization of Deferred Fees 41,937 33,000 563,890
Shares Issued for Services 0 0 165,000
Stock Option Expense 0 10,347 1,986,017
Changes in assets and liabilities:      
(Increase) in Other Current Assets (1,385) (300) (1,365)
Increase (Decrease) in Accounts Payable 3,707 (5,652) 18,845
Increase (Decrease) in Accrued Expenses 25,614 23,767 117,960
Increase (Decrease) in Accrued Expenses - Realted Party 19,950 41,400 198,093
Net Cash Provided (Used) by Operating Activities (96,462) (18,362) (1,134,564)
CASH FLOWS FROM INVESTING ACTIVITIES      
Purchase of Fixed Assets 0 0 (215,453)
Sale of Fixed Assets 0 0 191,026
Net Cash Provided (Used) by Investing Activities 0 0 (24,427)
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from Notes Payable 37,500 5,000 615,650
Payments on Notes Payable 0 12,500 322,000
Proceeds from Sale of Common Stock 0 0 246,670
Debt Assumed in Acquisition 0 0 (185,939)
Debt Assumed by Buyer In Asset Sale 0 0 209,429
Interest Added to Notes Payable 0 0 (35,731)
Common Stock Issued on Recapitalization 0 0 16,000
Net Cash Provided by Financing Activities 37,500 17,500 1,188,079
NET INCREASE (DECREASE) IN CASH AND CASH EQUAVILENTS (58,962) (862) 29,088
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 89,680    
CASH AND CASH EQUIVALENTS AT END OF PERIOD 30,718 50 30,718
SUPPLEMENTAL DISCLOSURES      
Cash Paid During the Year for Interest Expense 0 0 57,740
Cash Paid During the Year for Taxes 0 0 0
Issuance of Common Shares for Services 0 0 165,000
Issuance of Common Stock for Debt 0 0 884,741
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Consolidated Balance Sheets (USD $)
Apr. 30, 2013
Jan. 31, 2013
Current assets:    
Cash and cash equivalents $ 30,718 $ 89,680
Other Current Assets 1,385 0
Property, Plant and Equipment:    
Equipment 1,799 1,799
Less: Accumulated depreciation (1,799) (1,799)
Total Fixed Assets 0 0
Deferred Fees (net) 50,280 92,217
TOTAL ASSETS 82,383 181,897
Accounts Payable 10,625 6,918
Accrued Expenses 2,838 11,852
Accounts Payable - Related Parties 215,424 178,143
Accrued Interest Payable 106,630 89,333
Current portion of notes payable 640,650 578,150
Total Current Liabilities 976,167 864,396
Long Term Liabilities:    
Notes Payable 640,650 603,150
Less: Current Potion (640,650) (578,150)
Total Long Term Liabilities 0 25,000
Total Liabilities 976,167 889,396
Preferred Stock, $0.001 par value, 10,000,000 shares authorized, 1,000 and 1,000 shares issued and outstanding 0 0
Common Stock, $0.001 par value, 350,000,000 shares authorized. 50125000 and 43,315,000 shares issued and outstanding 50,126 50,125
Additional Paid In Capital 3,997,996 3,997,997
Accumulated Deficit (4,941,906) (4,755,621)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) (893,784) (707,499)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 82,383 $ 181,897
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Note 8 - Going Concern and Financial Position
3 Months Ended
Apr. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Note 8 - Going Concern and Financial Position

 

NOTE 8 - GOING CONCERN AND FINANCIAL POSITION

 

MedCareers’ financial statements are prepared using United States generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business.  The Company has incurred cumulative losses through January 31, 2013 of $4,755,621 and has a working capital deficit at January 31, 2013 of $774,716.

 

Historically, revenues have not been sufficient to cover operating costs that would permit the Company to continue as a going concern.  The potential proceeds from the sale of common stock and other contemplated debt and equity financing, and increases in operating revenues from new development and business acquisitions might enable MedCareers to continue as a going concern.  There can be no assurance that the Company can or will be able to complete any debt or equity financing, or develop or acquire one or more business interests on terms favorable to it.  MedCareers’ financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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Note 7 - Commitments and Contingencies
3 Months Ended
Apr. 30, 2013
Commitments and Contingencies Disclosure [Abstract]  
Note 7 - Commitments and Contingencies

 

NOTE 7 – COMMITMENTS AND CONTINGENCIES

 

The Company may from time to time be involved with various litigation and claims that arise in the normal course of business.  As of January 31, 2013, no such matters were outstanding.

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Note 2 - Deferred Fees
3 Months Ended
Apr. 30, 2013
Accounting Policies [Abstract]  
Note 2 - Deferred Fees

 

NOTE 2 – DEFERRED FEES

 

Deferred fees represent stock issued as fees to make or extend notes payable. Stock issued was valued at the date of issue and amortized over the term of the loan. Deferred fees at January 31, 2013 and 2012 were as follows:

 

  2013   2012
Deferred Fees $ 614,170     $ 304,200
Less: Accumulated Amortization (521,953 )   (190,367)
Deferred Fees - Net $ 92,217     $ 113,833

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Note 10 - Loss on Recapitalization
3 Months Ended
Apr. 30, 2013
Business Combinations [Abstract]  
Note 10 - Loss on Recapitalization

NOTE 10 – LOSS ON RECAPITALIZATION

 

On November 5, 2010, the Company effected a recapitalization by issuing 24,000,000 shares of its Common Stock in exchange for 100% of Nurses Lounge, Inc. (“Nurses Lounge”), a Texas corporation. As a result of the share exchange, Nurses Lounge became the wholly-owned subsidiary of MedCareers. Additionally, the shareholders of Nurses Lounge owned a majority of the voting stock of MedCareers.  The transaction was regarded as a reverse merger whereby Nurses Lounge was considered to be the accounting acquirer as its shareholders retained control of MedCareers after the exchange, although MedCareers is the legal parent company.  The share exchange was treated as a recapitalization of MedCareers.  As such, Nurses Lounge (and its historical financial statements) is the continuing entity for financial reporting purposes. The financial statements have been prepared as if MedCareers had always been the reporting company and, on the share exchange date, changed its name and reorganized its capital  The loss on recapitalization of $223,454 represents the adjustment relating to the value recorded in the equity section of MedCareers pre-recapitalization and the value assigned to it upon recapitalization.

 

XML 41 R15.xml IDEA: Note 10 - Loss on Recapitalization 2.4.0.800000015 - Disclosure - Note 10 - Loss on Recapitalizationtruefalsefalse1false falsefalseFrom2013-02-01to2013-04-30http://www.sec.gov/CIK0001438901duration2013-02-01T00:00:002013-04-30T00:00:001true 1us-gaap_BusinessCombinationsAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2us-gaap_BusinessAcquisitionIntegrationRestructuringAndOtherRelatedCostsTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><u>NOTE 10 &#150; LOSS ON RECAPITALIZATION </u></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 5, 2010, the Company effected a recapitalization by issuing 24,000,000 shares of its Common Stock in exchange for 100% of Nurses Lounge, Inc. (&#147;Nurses Lounge&#148;), a Texas corporation. As a result of the share exchange, Nurses Lounge became the wholly-owned subsidiary of MedCareers. Additionally, the shareholders of Nurses Lounge owned a majority of the voting stock of MedCareers.&#160; The transaction was regarded as a reverse merger whereby Nurses Lounge was considered to be the accounting acquirer as its shareholders retained control of MedCareers after the exchange, although MedCareers is the legal parent company.&#160; The share exchange was treated as a recapitalization of MedCareers.&#160; As such, Nurses Lounge (and its historical financial statements) is the continuing entity for financial reporting purposes. The financial statements have been prepared as if MedCareers had always been the reporting company and, on the share exchange date, changed its name and reorganized its capital&#160;&#160;The loss on recapitalization of $223,454 represents the adjustment relating to the value recorded in the equity section of MedCareers pre-recapitalization and the value assigned to it upon recapitalization.</p> <p style="margin: 0pt">&#160;</p>falsefalsefalsenonnum:textBlockItemTypenaThe entire description for costs incurred to effect a business combination that have been expensed during the period. Such costs could include business integration costs, systems integration and conversion costs, and severance and other employee-related costs.No definition available.false0falseNote 10 - Loss on RecapitalizationUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://nurseslounge.com/role/Note10-LossOnRecapitalization12 XML 42 R1.htm IDEA: XBRL DOCUMENT v2.4.0.8
Document and Entity Information (USD $)
3 Months Ended
Apr. 30, 2013
Sep. 05, 2013
Document And Entity Information    
Entity Registrant Name MEDCAREERS GROUP, Inc.  
Entity Central Index Key 0001438901  
Document Type 10-Q  
Document Period End Date Jan. 31, 2013  
Amendment Flag false  
Current Fiscal Year End Date --01-31  
Is Entity a Well-known Seasoned Issuer? No  
Is Entity a Voluntary Filer? No  
Is Entity's Reporting Status Current? No  
Entity Filer Category Smaller Reporting Company  
Entity Public Float   $ 52,708,863
Entity Common Stock, Shares Outstanding   52,708,863
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2013  
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