form10-q.htm

United States Securities and Exchange Commission Washington, D.C. 20549

				Form 10-Q

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

	For the quarterly period ended September 30, 2010


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

	Commission File Number: 1-31771

			MEDLINK INTERNATIONAL, INC.
	(Exact name of registrant as specified in its charter)

Delaware					41-1311718
(State of other jurisdiction of incorporation or organization)					(IRS Employer Identification No.)

	1 Roebling Court, Ronkonkoma, NY 11779 (Address of principal executive offices)

	631-342-8800 (Issuer’s telephone number)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No[ ]

Indicate by check mark 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. (Check one):
		[ ] Large accelerated filer				[ ] Accelerated filer
		[ ] Non-accelerated filer				[X] Smaller reporting company

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: as of September 30, 2010 there were 37,663,569 Class A and 5,361,876 Class B shares outstanding.

ASSETS	September 30,		December 31,
	2010		2009
	(unaudited)
Current Assets:
Cash		18,489		4,843
Accounts Receivable		4,235,356		289,346
Total current assets		4,253,845		294,189


Office equipment (at cost) net of accumulated depreciation		313,797		186,205
Intangible asset (at cost), net of accumulated amortization		715,000		10,938
Security deposit		12,950		12,950
Other assets		1,316,292		-
Total Assets	$	6,611,882	$	504,281

LIABILITIES AND STOCKHOLDERS’ EQUITY	September 30			December 31,
	2010			2009
	(unaudited)
Current liabilities:
Accounts payable and accrued expenses		553,204			145,044
Due to related party		904,325			1,002,430
Liabilities from discontinued operations		804,141			804,141

Total current liabilities		2,241,670			1,951,605

Total liabilities		2,241,670			1,951,605

Stockholders' equity:
Common stock Class A $.001 par value; authorized 150,000,000 shares; 37,663,569 and 31,567,236 shares issued as of September 30, 2010 and December 31, 2009, respectively		37,633			31,567
Common stock B Class B $.001 par value; authorized 50,000,000 as of September 30, 2010; 5,361,876 issued and outstanding		5,362			5,362
Additional paid-in capital		23,353,977			20,093,341
Accumulated deficit		(18,896,210	)		(21,447,044	)
Treasury stock		(130,551	)		(130,551	)
Total stockholders' equity/deficit		4,370,211			(1,447,325	)

Total stockholders’ liabilities and stockholder equity	$	6,611,881		$	504,282

	For the Three Months							For the Nine months
	ended September 30							Ended
	ended September 30							September 30
		2010		2009			2010		2009
Sales	$	3,452,253	$	129,543		$	5,656,617	$	389,514
Cost of Revenues		315,062		-			792,661		3,496
Gross Profit		3,317,190		129,543			4,863,955		386,018

Operating expenses:
Operating and administrative		212,798		115,150			593,147		924,156
Consulting Expense		152,804		-			382,626		-
Compensation Expense		585,753		-			1,281,187		-
Depreciation and amortization		23,694		2,085			56,161		32,190
Total Operating expenses		975,049		117,235			2,313,121		956,346

Net Profit/(Loss)	$	2,162,141	$	12,308		$	2,550,835	$	(570,328	)

Basic and diluted loss per share (Class A)	$	0.06	$	(0.01	)	$	0.07	$	(0.02	)

Basic and diluted loss per share (Class B)	$	0.40	$	(0.04	)	$	0.48	$	(0.11	)

Weighted avg. number of basic shares outstanding (Class A)		37,161,823		27,060,470			35,658,818		26,805,987

Weighted avg. number of basic shares outstanding (Class B)		5,361,876		5,361,876			5,361,876		5,361,876

MEDLINK INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
	For the Nine months Ended June 30
Cash flows from operating activities:	2010			2009
Net Income/(Loss)	$	2,550,835		$	(570,328	)
Adjustment to reconcile net income/(loss) to cash flows used in operating activities:
Share based compensation		321,852			646,004
Shares issued for consulting services		1,509,250			-
Depreciation		56,161			30,105
Amortization		-			(901	)

Changes in operating assets and liabilities:
Accounts receivable		(3,946,190	)		(108,863	)
Deposits		-			(12,950	)
Other assets		(601,292	)		(33,632	)
Accounts payable		388,168			-
Accrued expense and other current liabilities		(704,062	)		24,482
Net Cash used in operating activities		(425,278	)		(26,083	)

Cash flows from investing activities:
Purchase of fixed assets		(183,753	)		-
Adjustment to net fixed assets		-			12,306
Write-down		-			95,674
Net cash provided by (used in) investing activities		(183,753	)		107,980

Cash flows from financing activities:
Proceeds from Private Placement		720,600			-
Bank Overdraft		-			(26,834	)
Repayment of loans		(98,105	)		(59,140	)
Advanced from officer/shareholders		-			39,749
Net cash flows provided by financing activities		622,495			(46,225	)

NET INCREASE IN CASH		13,464			35,672

CASH-AT BEGINNING OF PERIOD		4,843			-

CASH-AT END OF PERIOD		18,307			35,672

MedLink International Inc. (the “Company”) is a healthcare information enterprise system business focused on the physician sector. The Company is in the business of selling, implementing and supporting software solutions that provide healthcare providers with secure access to clinical, administrative and financial data in real-time, allowing them to improve the quality, safety and efficiency in the delivery of healthcare services primarily through the sale of its flagship product the MedLink TotalOffice EHR.

The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three-month and six-month period ended September 30, 2010 are not necessarily indicative of the results that may be expected for the year ending December 31, 2010. For further information, refer to the financial statements and footnotes thereto included in our Form 10-K/A Report for the fiscal year ended December 31, 2009.

In the opinion of the Company’s management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company’s financial position as of September 30, 2010, the results of operations for the three months and nine months ended September 30, 2010 and 2009, and the cash flows for the nine months ended September 30, 2010 and 2009, have been included. The results of operations for such interim periods are not necessarily indicative of results of operations to be expected for the full year. In accordance with the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification™ (“ASC”) Topic 855, Subsequent Events, or ASC 855, the Company evaluated all events or transactions that occurred after September 30, 2010 through the date of this report, which represents the date the consolidated financial statements were issued. During this period the Company did not have any material recognizable subsequent events, except for events disclosed herein.

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Software license fees are recognized ratably over the term of the contract, commencing upon the delivery of the software provided that (1) there is evidence of an arrangement, (2) the fee is fixed or determinable and (3) collection of our fee is considered probable. The value of the software is determined using the residual method pursuant to ASC Topic 450, With Respect to Certain Transactions." These contracts contain the rights to unspecified future software within the suite purchased and/or unspecified platform transfer rights that do not qualify for exchange accounting.

In accordance with ASC Topic 350, “Goodwill and Other Intangible Assets,” goodwill acquired in business combination is assigned to reporting units that are expected to benefit from the synergies of the combination as of the acquisition date. The Company assesses goodwill and indefinite-lived intangible assets for impairment annually at the end of the fourth quarter, or more frequently if events and circumstances indicate impairment may have occurred in accordance with ASC Topic 350. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, the Company records an impairment loss equal to the difference. ASC Topic 350 also requires that the fair value of indefinite-lived purchased intangible assets be estimated and compared to the carrying value. The Company recognizes an impairment loss when the estimated fair value of the indefinite-lived purchased intangible assets is less than the carrying value.

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of sales, trade accounts receivable and cash. The Company grants credit to domestic companies located throughout the New York tri-state area. The Company performs ongoing credit evaluations of its customers' financial condition and generally requires no collateral from its customers.

The Company’s accounting policy regarding the assessment of the recoverability of the carrying value of long-lived assets, including property and equipment and purchased intangible assets with finite lives, is to review the carrying value of the assets if the facts and circumstances suggest that they may be impaired. If this review indicates that the carrying value will not be recoverable, as determined based on the projected undiscounted future cash flows, the carrying value is reduced to its estimated fair value. Intangible assets that have finite useful lives are amortized by the straight-line method over the remaining useful lives.

ASC Topic 718 requires compensation costs related to share-based payment transactions to be recognized in the statement of operations. With limited expectations, the amount of compensation cost is measured based on the grant-date fair value of the equity or liability instruments issued. In addition, liability awards will be re-measured each reporting period. Compensation cost will be recognized over the period that an employee provides service in exchange for the award. The Company used the black-scholes option pricing model for estimating the fair value of the options granted under the company’s incentive plan.

A business is classified as a discontinued operation when (i) the operations and cash flows of the business can be clearly distinguished and have been or will be eliminated from our ongoing operations; (ii) the business has either been disposed of or is classified as held for sale; and (iii) we will not have any significant continuing involvement in the operations of the business after the disposal transactions. Significant judgments are involved in determining whether a business meets the criteria for discontinued operations reporting and the period in which these criteria are met.

If a business is reported as a discontinued operation, the results of operations through the date of sale, including any gain or loss recognized on the disposition, are presented on a separate line of the income statement. Interest on debt directly attributable to the discontinued operation is allocated to discontinued operations. Gains and losses related to the sale of businesses that do not meet the discontinued operation criteria are reported in continuing operations and separately disclosed if significant.

Accounts receivable consists of amounts due from our sales of subscription contracts, professional services, and the sale of computer hardware. The Company has established an allowance for doubtful accounts based upon factors pertaining to the credit risk of specific customers, historical trends, and other information. Delinquent accounts are written-off off when it is determined that the amounts are uncollectible. At September 30, 2010 and 2009, the provision for doubtful accounts was $0 and $0, respectively.

The Company depreciates its equipment on the straight-line method for financial reporting purposes over a five year period. For tax reporting purposes, the Company uses accelerated methods of depreciation. Expenditures for maintenance, repairs, renewals and betterments are reviewed by management and only those expenditures representing improvements to equipment are capitalized. At the time equipment is retired or otherwise disposed of, the cost and accumulated depreciation accounts are removed from the books and the gain or loss on such disposition is reflected in operations.

expire from 2010 through 2023. Since there is no guarantee that the related deferred tax asset will be realized by reduction of taxes payable on taxable income during the carry forward period, a valuation allowance has been computed to offset in its entirety the deferred tax asset attributable to this net operating loss. The amount of valuation allowances are reviewed periodically.

ASC Topic 260 requires two presentations of earnings per share - "basic" and "diluted". Basic earnings per share are computed by dividing income available to common stockholders by the weighted-average number of common shares for the period. The computation of diluted earnings per share is similar to basic earnings per share, except that the weighted average number of common shares is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued.

Only basic earnings per share is presented as all common stock equivalents are either anti-dilutive or not material for the period presented. For the three month period ending September 30, 2010 and September 30, 2009, the weighted average number of shares outstanding for the Company’s Class A Common Stock used in the per share computation was 37,161,823 and 27,060,470, respectively. For the nine month period ending September 30, 2010 and September 30, 2009, the weighted average number of shares outstanding for the Company’s Class A Common Stock used in the per share computation was 35,658,818 and 26,805,987, respectively. For both the three and nine month periods ending September 30, 2010 and September 30, 2009, the weighted average number of shares outstanding for the Company’s Class B Common Stock used in the per share computation was 5,361,876 and 5,361,876, respectively.

The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of our assets and the satisfaction of its liabilities in the normal course of business. Through September 30, 2010, the Company had incurred cumulative losses of $18,896,210. As of September 30, 2010, the Company has working capital of $2,012,174.

Management plans to take the following steps that it believes will be sufficient to provide the Company with the ability to continue in existence. (i) Management intends to continue to raise additional financing through private equity or debt financing to pay down Company debt and/or reduce the cost of debt service. (ii) Management is also planning to continue to finance the company using their own personal funds or using the equity that they personally own in the company. (iii) Management intends to increase revenues and is actively pursuing additional contracts.

In August 2010, the FASB issued Accounting Standard Updates No. 2010-21 (ASU No. 2010-21) “Accounting for Technical Amendments to Various SEC Rules and Schedules” and No. 2010-22 (ASU No. 2010-22) “Accounting for Various Topics – Technical Corrections to SEC Paragraphs”. ASU No 2010-21 amends various SEC paragraphs pursuant to the issuance of Release no. 33-9026: Technical Amendments to Rules, Forms, Schedules and Codification of Financial Reporting Policies. ASU No. 2010-22 amends various SEC paragraphs based on external comments received and the issuance of SAB 112, which amends or rescinds portions of certain SAB topics. Both ASU No. 2010-21 and ASU No. 2010-22 are effective upon issuance. The amendments in ASU No. 2010-21 and No. 2010-22 will not have a material impact on the Company’s financial statements.

A variety of proposed or otherwise potential accounting standards are currently under study by standard-setting organizations and various regulatory agencies. Because of the tentative and preliminary nature of these proposed standards, management has not determined whether implementation of such proposed standards would be material to the Company’s consolidated financial statements.

Accounts receivable consist of amounts due from our sales of the MedLink TotalOffice EHR and Interface and Integration Services to Imaging Centers and Laboratories and are reported at net realizable value. The Company has established an allowance for doubtful accounts based upon factors pertaining to the credit risk of specific customers, historical trends, and other information. Delinquent accounts are written-off when it is determined that the amounts are uncollectible.

The Company purchased 130,000,000 shares of Anywhere MD, Inc.’s stock from the majority shareholder of Anywhere MD., Inc., a discontinued operation, in exchange for a note in the amount of $875,000. As of September 30, 2010 $509,835 was due on demand. This note is non-interest bearing. The holder of the Note is in default of their obligations and the Company is currently pursuing legal action to recover its costs as result of the default including monies paid out on the Note Payable.

For the period ending September 30, 2010, the Company issued 400,000 and 250,000 respectively in the acquisitions of LabTestPortal.com, LLC., and Health Informatics, LLC., which were recorded at the fair value of the shares issues based on the closing market price of the common stock of $1.10 on their respective measurements dates of approximately of $440,000 and $275,000 as an increase

For the period ending September 30, 2010, the Company issued 40,000 shares of Company common stock to various non-employee service providers and has recorded the fair value of shares issued based on the closing market price of stock of $1.10 on the respective measurement date of approximately $44,000 as an increase in additional paid-in capital. Stock-based compensation expense is recognized over the requisite service periods

On September 12th, the company issued a private placement memorandum. The memorandum was placed for total gross proceeds of $1,000,000 consisting of 100 units. Each Unit consists of (a) 15,000 Shares of Common Stock and (b) Warrants entitling the holder to purchase at any time prior to three (3) years from the initial closing, up to 6,000 Shares of Common Stock, at a price equal to $2.00 per Warrant Share and up to 6,000 Shares of Common Stock, at a price equal to $2.00 per Warrant Share, subject to customary adjustments.

The Company is offering the Units through Aegis Capital Corp., as placement agent (the “Placement Agent”) on a “best efforts” basis until all of the Units are sold (the “Maximum Offering”) or the Offering period terminates, whichever occurs first. There is a $100,000 minimum amount required to be subscribed for by Investors prior to the initial closing. The minimum investment is $30,000 (3 Units), although the Company and the Placement Agent may, in their discretion, accept subscriptions for a lesser amount. As of November 19th, 99 Units of the offering have been subscribed to by 22 various investors consisting of 1,485,000 shares of common stock, 594,000 Warrants at $1.50, and 594,000 Warrants at $2.00 for a total consideration of $990,000.00

On November 1, 2010, MedLink entered into an Asset Purchase Agreement (“Purchase Agreement”) with MedAppz, LLC., and ParaCom, LLC., the revenue cycle management division of MedAppz, LLC. to acquire substantially of the assets of MedAppz for a total consideration of $3,500,000. The Purchase Price comprised of 1,852,120 shares of common stock, par value $0.001, of the Company, having an aggregate value of $1,640,978 (valued at a price per share equal to the average closing price of the Company’s stock on The-Over the Counter-Bulletin-Board for the ten most recent trading days preceding the closing), a $385,000 and $115,000 note with a maturity of November 15, 2010 bearing 5% per annum interest upon maturity, a $500,000 note with a maturity of December 31, 2010 bearing 10% per annum interest upon maturity, and the assumption of a certain specified liability in the amount of $859,023. In addition, MedAppz will be entitled to receive cash earn-out payments 45 days following each of calendar quarter for a period of 3 years for gross revenues earned from seven (7) agreements acquired by the Registrant as part of the Agreement. The earn-out percentage will be 3% for sales less than $35m, 4.5% for sales between $35m and $63m, and 6% for sales of more than $63m, the percentages will be based on cumulative gross revenue and will be recalculated following each calendar quarter should a higher target amount be met that would increase the commission percentage. In addition, at the closing of the Asset Sale, the Company will issue to MedAppz an option to purchase up to two-hundred thousand shares of the Registrant’s common stock at a cash purchase price of $2.00 per share. This option will vest one year from closing and expire on the fourth anniversary of the closing.

During the period ended September 30, 2010, MedLink continued to realize substantial growth in all aspects of its operations, as the continued national push towards the adoption of health information technology has resulted in the Company experience increase demand for its electronic health record and lab connectivity software and connectivity solutions. During the 3rd quarter MedLink continued to add to its personnel through organic expansion with the opening a new office in Baltimore, Maryland which houses the operations for MedLink IX, the clinical integration division MedLink, led by recently appointed Chief Operating Officer, Steward Macis. MedLink also grew through acquisition in the third quarter with the acquisition of LabTestPortal.com, a direct to consumer laboratory testing platform and through the recently announced acquisition of MedAppz, LLC. an industry leading web-based EHR provider.

MedAppz, based in Wichita, Kansas, a leading Electronic Health Record (EHR) and practice management software provider expands MedLink’s national footprint with EHR customers in 23 states while also providing revenue cycle management services to practices in five states. The addition of MedAppz’ iSuite EHR broadens MedLink’s technology offerings, enabling MedLink to provide a cutting edge web-based solution built on the latest Microsoft .Net 4.0 platform. MedAppz has installations across the US and offers EHR solutions for 28 medical specialties. The MedLink EHR and MedAppz iSuite EHR, were both announced earlier in 2010 by the Center for Medicare and Medicaid Services (CMS), that the two software products were only 2 of 7 EHR’s vendors that qualified for the CMS direct EHR PQRI reporting program, which the company and many in the industry perceive to be the future foundation for ‘meaningful use’ which allows reimburses providers up to $64,000 each over a 5 year period for the adoption of ‘qualified’ EHR technology capable of reporting directly to CMS. The list of seven over the course of the year, which required each vendor to work closely with CMS to develop and test the reporting platform, which was ultimately narrowed to only two EHR vendors that had a CMS ‘qualified’ EHR for direct reporting for 2010, which were MedLink and MedAppz.

Founded in 2003, MedAppz has focused on the smaller, clinical-based physician market, which makes up the majority of the US physician market. MedAppz iSuite technology is flexible, user friendly, affordable, and easy to implement due to its engineering as a pure web-based solution. The iSuite solution includes EHR, practice management, e-prescribing, document management, and transcription and revenue cycle management services and is only one of five EHR vendors to be “qualified” by the Center for Medicare and Medicaid Services for direct EHR reporting. MedAppz has built diverse partnerships with healthcare and technology leaders, such as MedAssets, to market its solutions through an indirect reseller channel. MedAppz has also established some

In addition the Company recently appointed Mr. Steward Macis as its Chief Operating Officer. As COO of MedLink, Mr. Macis is responsible for focusing on the establishment, optimization and strategic planning of the overall operations. Steward brings in over 15 years of leadership and management experience from the Healthcare sector. Prior to joining MedLink, Mr. Macis was the Vice President of Products and Services at Antek Healthware, a leading LIS software company, where he was instrumental in building a world class support team rated #1 in KLAS as well as winning other coveted accolades in the Healthcare IT sector while growing their market base. Steward has also started up several successful reference laboratories , a national Direct To Consumer laboratory testing site, LabTestPortal.com, and has been actively involved in the healthcare community with his many peer reviewed articles and public speaking engagements. Over the past 15 years, Steward has collaborated on projects with Siemens Clinical Diagnostics, Abbott Diagnostics, Beckman Coulter, Roche Diagnostics, LabCorp and many other fortune 500 companies in the healthcare arena. With a grounded global perspective, Steward is driven to provide innovative and practical technological solutions to the healthcare industry while supplying exceptional support services. Steward is a graduate of University of MD School of Medicine with a BS in Medical & Research Technology and a MS in Biotechnology.

As COO, Steward heads the MedLink IX division of MedLink out of its Baltimore, Maryland offices. MedLink IX is a flexible HL7 interface engine enterprise connectivity solution that links providers and healthcare services to achieve interoperability. The IX connectivity engine can be the central hub for all of an enterprises connectivity needs and is the parent division to the following suite of MedLink product lines and offerings.

MedLink Lab - MedLink Lab is a web browser based lab ordering and results portal hosted on MedLink's virtual cloud platform. Clinical Labs, Hospitals Labs, Pathology Labs, and Radiology Centers can offer this robust product to obtain clean requisitions and dynamic reporting features. MedLink Lab is entirely web-based so physician offices can use existing hardware already in place. Results and requisitions can be easily found in the system so no more searching for missing papers. One page order entry makes creating requisitions fast and easy. ABN checking is done upfront letting the physician know before the order is placed. Result reports can easily be viewed online and stored in the patients chart for cumulative trending. Result filtering options make finding specific reports quickly.

MedLink Connect - MedLink Connect allows for current laboratory services to utilize MedLink IX to deliver laboratory results to multiple HIS, EMR as well as Health Information networks. MedLink IX will convert HL7 results from the LIS, AP, or Radiology system to the required format of the physician's EMR. Orders placed from the physician's EMR system will be picked up and delivered to the Lab so the order can be processed. MedLink Connect allows for EHR users to export to other Practice Management systems for billing purposes. MedLink Connect also interfaces the physician's Practice Management System to the MedLink Lab portal. The patient's demographic and insurance information is bridged over into the system to complete an order with the most current information. This reduces billing errors and saves process time when claims are submitted to the insurance company.

MedLink Patient Portal - MedLink Patient Portal gives hospitals and laboratories the ability for their patients to access result reports online once reviewed and released by the physician. Patients can easily review results online without having to contact their physician to get the report faxed or mailed. Results over time can be graphed or charted to view and monitor progress. MedLink Patient Portal helps cut cost for the hospital or lab on postage and paper costs.

MedLink LabTestPortal.com - LabTestPortal.com is a Direct to Consumer (DTC) laboratory testing service that allows for consumers to purchase laboratory testing without the need to visit their primary care physician. LabTestPortal.com has a vast network of physicians covering 47 states that will provide the oversight need to allow for consumers to manage their own healthcare. There are more than 2,500 phlebotomy centers across the USA to allow for easy access for sample collection. Results are ready for review within 24 hours of sample collection for your own discrete viewing. A free Personal Health Record (PHR) service is provided to all customers who purchase lab testing. Please visit www.labtestportal.com for more information.

The Company continues to experience rapid growth, and has focused on building an experienced management team to help manage the company through this exciting period in its growth. The health information technology market continues to grow rapidly with double digit annual growth rates. With the Company’s primary target market less than 20% penetrated, MedLink is poised for continued success and growth through the sale and maintenance of its EHR and clinical laboratory product offerings. Significant 2010 highlights to date included:

MedLink sells and supports a proprietary electronic health record (“EHR”) application, including practice management for physician practices. MedLink’s flagship offering is the CCHIT Certified 08 Ambulatory MedLink TotalOffice EHR, a healthcare information enterprise system that provides physician practices with an entire practice management, clinical decision support and EHR solution. MedLink also offers the MedLink Lab Portal, an online ordering and results platform that is integrated with laboratory information systems allowing referring providers of clinical laboratories to order and receive lab results through an online interface. MedLink’s Lab Portal offering provides users with a clear path towards the achievement of ‘meaningful use’. Through the adoption of MedLink’s TotalOffice EHR, physicians may receive a subsidy towards the purchase of the TotalOffice EHR under a Stark anti-kickback exemption from Labs, Hospitals or other physician service providers. The MedLink TotalOffice EHR is only one of seven EHR’s to be qualified by CMS, which provides the Company with a significant competitive advantage as physicians adopting EHR technology to achieve ‘meaningful use’ will qualify for the $44,000 to $64,000 federal subsidy per provider, available to physicians who utilize a ‘Qualified’ EHR and achieve meaningful use through direct reporting to CMS. The Company also offers medical providers with complete revenue cycle management services, hardware and network infrastructure and use of the TotalOffice EHR, all for a fixed fee determined by the practice’s annual billing revenue through MedLink Billing.

MedLink’s business strategy is to build critical mass and develop a national presence among small to medium sized physician practices (1 to 10 physicians) by increasing market penetration of the MedLink Lab Portal and TotalOffice EHR. The small physician practice market segment remains largely unpenetrated for EHRs, with less than 10% of practices in the market having yet to adopt EHR technology. With more than $19 billion in federal incentives and mandates to adopt by 2014, more than 160,000 practices in MedLink key demographic market are expected to adopt EHR in the next 3 years. As part of its growth strategy, MedLink is working with a number of Regional Health Information Networks (“RHIOs”) and is partnering with RHIO’s, radiology centers, hospitals, laboratories and revenue cycle management companies that subsidize the overall cost of the MedLink TotalOffice EHR up to 85% for qualifying practices. MedLink’s strategic partnerships and growing network of value added resellers provides a framework for physician adoption and a captive audience to target a focused sales and marketing plan.

In July, MedLink announced the acquisition of LabTestPortal.com, a direct-to-consumer laboratory testing platform. The acquisition provides MedLink with an entry into the direct-to-consumer laboratory testing market which has gained significant traction in the more than $50 billion U.S. laboratory testing market. LabTestPortal is a service provider that delivers direct-to-consumer secure and confidential laboratory testing to consumers, that eliminates the need to see a primary care physician and receive insurance approval for maintenance and advanced lab tests. Through a Personal Heath Record portal, consumers are able to track their lab testing results as well as store vital healthcare documents and information and receive results in most cases in less than 48 hours and is available to consumers in all 50 states.

In August, MedLink announced the acquisition of Health Informatics a provider of cutting edge clinical data digitization technology that simplifies and streamlines the adoption of Electronic Health Records. The Health Informatics Digital Pen in conjunction with MD Form Manager is the flagship offering of the Company. The Digital Pen looks and feels like a normal ball point pen, however, the Digital Pen contains an integrated infrared digital camera, an advanced image microprocessor and a mobile communications device for wireless connection. The camera records the precise location of ink strokes as it moves over a uniquely constructed grid of microscopic dot patterns. These dots provides the pen with exact co-ordinates of its position, which through MD Form Manager are designed to interface directly with the MedLink EHR to collect discrete data elements that electronically populate the patient chart. The solution provides Doctors and their staff with the traditional documentation approach of pen and paper, but the advanced ability of digitally documenting and capturing the data required to provide ‘meaningful use’ and other quality data reports.

MedLink is focused on organic growth, but also is exploring synergistic acquisition opportunities that will enhance the Company’s market share and product offerings. In addition to the acquisition of LabTestPortal and Health Informatics, the Company is exploring two potential acquisition opportunities of two of its EHR competitors, in line with the Company’s acquisition strategy. Each of the opportunities presents MedLink with product offerings that will complement the Company’s current product offering.

During the second quarter, the Company launched the MedLink Lab Portal, which provides a web based clinical laboratory ordering, and results platform that is provided to the referring providers of clinical and hospital labs. The Company charges an upfront License fee, an Integration fee to the Laboratory Information System, as well as a monthly maintenance fee per provider, paid by the Laboratory for each enrolled referring provider that accesses the portal to order and retrieve lab results. The lab outreach portal is a natural extension for the Company and its suite of EHR products with the communication of lab results being a key component in Providers achieving ‘meaningful use’. During the 2nd quarter of 2010, three regional clinical laboratories signed with MedLink to utilize the MedLink Lab Portal as well a Laboratory Services company that operates and manages Hospitals Labs nationwide.

In January of 2010, MedLink successfully completed the CMS PQRI testing program and achieved “Qualified” vendor status by CMS along with only 6 other EHR vendors for direct PQRI reporting from an EHR, creating a significant market differentiator for MedLink. MedLink’s ability to report directly to CMS should positively influence physicians when deciding among competing EHR vendors to select MedLink. This is another example of how MedLink differentiates itself and puts its technology in the same league as industry leaders such as Allscripts, Epic and NextGen. The CMS Project is significant because of the focus on healthcare cost reduction through technology and preventative care. MedLink will give physicians who use MedLink’s products the ability to directly report Quality Measures directly to CMS. This connection allows those physicians to save time and collect money available for such programs much more efficiently. This is a clear differentiator and will be used as part of MedLink’s marketing across the country.

MedLink was also recently selected by Interboro RHIO after an exhaustive 1 year RFI and selection process. Selection by Interboro is a testament to the MedLink TotalOffice EHR as MedLink was selected above the industry’s market leaders. The Interboro RHIO is a clinical data exchange (“CDE”) serving the County of Queens, northern Brooklyn and surrounding communities which will serve as a hub for the communication of patient information between healthcare providers within the community. Under the contract, the Interboro RHIO will subsidize providers 85% of the cost to purchase and implement the MedLink TotalOffice EHR. Providers that receive the Interboro subsidy will receive: the MedLink TotalOffice License, implementation and customization, three days of on-site implementation assistance, ten months maintenance and support, on-site health IT adoption and support assistance and Interboro RHIO connectivity through 2011. There are an estimated 7,000 physicians who could be eligible for the program in the Interboro RHIO service area. A 5 physician practice, for example, under the Interboro RHIO program subsidy would receive the MedLink TotalOffice EHR and related HIT services of a total cost of $75,830, of which the Interboro RHIO would subsidize $63,946, resulting in a cost to the practice of just $11,885 or less than $2,400 per physician.

During the 1st quarter of 2010, MedLink introduced the RHIO financial sustainability Model and signed the SunCoast RHIO in Florida during the second quarter as the first participant. These types of programs will add to the exposure of the MedLink products in the various RHIO areas. The Company has received increased interest from RHIO’s across the country since the announcement of the Sun Coast RHIO and plans to utilize the RHIO financial sustainability model as a key driver for EHR adoption and the sharing of clinical information data through the MedLink Data Aggregator.

RHIO participation represents a key component of MedLink’s growth strategy. MedLink is particularly well positioned in dealing with RHIOs as it is the lowest cost option among competitive offerings and as such, allows the RHIOs to apply their dollars across more physicians. MedLink is positioned to take advantage of these RHIO opportunities as a result of its development process and its adherence to the various standards for handling and transmitting data with networks such as the National Health Information Network and the State Health Information Network of NY. MedLink has already provided data to organizations in various manners and in doing so, has differentiated itself from a technology standpoint which has resulted in various projects becoming available to it in 2010.

The Company signed an agreement with the New York City Department of Health (NYC DOH), the nation’s leading municipality in healthcare IT. The NYC DOH has a number of initiatives underway to promote the adoption of EHRs in order to collect patient data. As a normal part of its business strategy, MedLink has been in active discussions with the NYC DOH to participate in these initiatives and to promote the installation of TotalOffice EHRs as one means for the NYC DOH to accomplish their objectives. MedLink and NYC DOH finalized an agreement in late December 2009 to work together on a number of initiatives, including:

MedLink Data Aggregator: MedLink has developed a software application in which it can aggregate data from smaller EHR systems and deliver the data to the NYC DOH for quality reporting requirements. Under the terms of the agreement the MedLink Data Aggregator will be the exclusive gateway for other healthcare IT vendors and systems to deliver patient information to NYC DOH, which will establish MedLink as one of the largest clinical patient database in the country.

MedLink’s TotalOffice EHR is well-positioned to be a beneficiary of the recently enacted stimulus bill, the American Recovery and Reinvestment Act of 2009 (“ARRA”), which provides incentives for office-based physicians and other providers to adopt electronic health records. Physicians can qualify under either the Medicare or Medicaid provision of ARRA. The Medicare provision includes incentives of up to $44,000 per physician over a 5-year period. The Medicaid provision includes incentives of up to $64,000 per physician over a 6-year period. The funds become available for office-based physicians on January 1, 2011. In order to qualify for incentives, physicians must demonstrate “meaningful use” of a certified EHR. “Meaningful use” is not yet defined, but will likely be defined as measurable results that demonstrate quality, safety and efficiency improvements. The certification requirements, also not yet defined, are likely to be based on the standards adopted by CCHIT and framed around the PQRI data submitted directly to the Centers of Medicare and Medicaid Services (“CMS”).

The Company's revenues from continuing operations for the period ending September 30, 2010 and 2009 were $3,452,253 and $129,543, respectively. The increase in revenue is primarily attributable to expanded sales of the MedLink TotalOffice EHR, the MedLink Lab Portal and integration fees with labs and radiology centers due to increased demand for the company’s products attributable to the more than $30 billion allocated under the HITECH act incentivizing physicians to adopt health information technology over the next 4 years.

The Company had net profit of $2,162,141 and $12,308 for the three month period ending September 30, 2010 and 2009, respectively. The increase in profitability is primarily attributable to increase sales of the MedLink Total Office EHR, MedLink Lab Portal, and Lab and Radiology Integrations fee’s through contracts that were mostly still being negotiated in the same period a year ago.

The Company's revenues from continuing operations for the period ending September 30, 2010 and 2009 were $5,656,617 and $389,514, respectively. The increase in revenue is primarily attributable to expanded sales of the MedLink TotalOffice EHR, the MedLink Lab Portal and integration fees with labs and radiology centers due to increased demand for the company’s products attributable to the more than $30 billion allocated under the HITECH act incentivizing physicians to adopt health information technology over the next 4 years.

The Company had net profit/(loss) of $2,162,141 and ($570,328) for the nine month period ending September 30, 2010 and 2009, respectively. The increase in profitability is primarily attributable to increase sales of the MedLink Total Office EHR, MedLink Lab Portal, and Lab and Radiology Integrations fee’s through contracts that were mostly still being negotiated in the same period a year ago.

At September 30, 2010, the Company had a working capital balance of $2,012,174. While the Company believes that continued revenues that will be earned from the sales of the MedLink EHR, MedLink Lab Portal, and related integration fees from labs and imaging centers as well as recurring revenue from the maintenance and support of its applications will be sufficient to sustain the Company's operations, there can be no guarantee that this will be the case and that the Company will not have to raise additional capital from investors.

The Company expects to experience significant growth over the next several years. As a result of the recent federal stimulus bill, over the next two to five years, an increasing number of physicians will be adopting EHR technology. There will be billions of dollars in public and private initiatives available to facilitate a rapid movement toward adoption. The federal initiative funds will be available to vendors, such as MedLink, who have demonstrated “meaningful use” (such as under CMS PQRI reporting), complied with state EHR requirements and interoperability requirements (such as with NY RHIOs) and have current year CCHIT certification. As part of its ongoing business strategy, MedLink continues to raise additional capital to execute on its business opportunities.

We believe there are several accounting policies that are critical to the understanding of our historical and future performance as these policies affect the reported amount of revenues and expenses and other significant areas and involve management’s most difficult, subjective or complex judgments and estimates. On an ongoing basis, management evaluates and adjusts its estimates and judgments, if necessary. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingencies. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be materially different from those estimates. These critical accounting policies relate to revenue recognition, allowance for doubtful accounts, capitalized software development costs, stock-based compensation and income taxes. Please refer to Note 1 of the audited Consolidated Financial Statements for further discussion of our significant accounting policies.

The preparation of financial statements and related disclosures requires management to make judgments, assumptions and estimates that affect the amounts in the Consolidated Financial Statements and accompanying notes. Note 1 to the Consolidated Annual Report on Form 10-K for the year ended December 31, 2009 describes the significant accounting policies and methods used in the preparation of the Consolidated Financial Statements. Estimates are used for, but not limited to, goodwill impairment and long-lived asset impairments. The following critical accounting policies are impacted significantly by judgments, assumptions and estimates used in the preparation of the Consolidated Financial Statements.

Revenues are derived from licensing of computer software and professional services (including implementation, integration, and training) and the sale of computer hardware. We evaluate revenue recognition on a contract-by-contract basis as the terms of each arrangement vary. The evaluation of our contractual arrangements often requires judgments and estimates that affect the timing of revenue recognized in our statements of operations. Specifically, we may be required to make judgments about:

•	whether the fees associated with our software and services are fixed or determinable;
•	whether collection of our fees is considered probable;
•	whether professional services are essential to the functionality of the related software;
•	whether we have the ability to make reasonably dependable estimates in the application of the percentage-of-completion method; and
•	whether we have verifiable objective evidence of fair value for our software and services.

In evaluating the collectability of our accounts receivable, we assess a number of factors, including a specific client’s ability to meet its financial obligations to us, as well as general factors such as the length of time the receivables are past due and historical collection experience. Based on these assessments, we record a reserve for specific account balances as well as a reserve based on our historical experience for bad debt to reduce the related receivables to the amount we ultimately expect to collect from clients. If circumstances related to specific clients change, or economic conditions deteriorate such that our past collection experience is no longer relevant, our estimate of the recoverability of our accounts receivable could be further reduced from the levels provided for in the Consolidated Financial Statements.

ASC Topic 350, formerly SFAS No. 142, “Goodwill and Other Intangible Assets,” classifies intangible assets into three categories: (1) intangible assets with definite lives subject to amortization; (2) intangible assets with indefinite lives not subject to amortization; and (3) goodwill. For intangible assets with definite lives, tests for impairment must be performed if conditions exist that indicate the carrying value may not be recoverable. For intangible assets with indefinite lives and goodwill, tests for impairment must be performed at least annually or more frequently if events or circumstances indicate that assets might be impaired. Our acquired technology and other intangible assets determined to have definite lives are amortized over their useful lives. In accordance with ASC Topic 350, if conditions exist that indicate the carrying value may not be recoverable; we review such intangible assets with definite lives for impairment. Such conditions may include an economic downturn in a market or a change in the assessment of future operations. Goodwill is not amortized. We perform tests for impairment of goodwill annually, or more frequently if events or circumstances indicate it might be impaired. We have only one reporting unit for which all goodwill is assigned. Impairment tests for goodwill include comparing the fair value of the company compared to the comparable carrying value, including goodwill.

ASC Topic 715, formerly SFAS 123 (“SFAS 123(R)”) requires compensation costs related to share-based payment transactions to be recognized in the statement of operations. With limited exceptions, the amount of compensation cost is measured based on the grant-date fair value of the equity or liability instruments issued. In addition, liability awards will be re-measured each reporting period. Compensation cost will be recognized over the period that an employee provides service in exchange for the award. In 2010, the Company used the black-scholes option pricing model for estimating the fair value of the options granted under the company’s incentive plan.

ASC Topic 350, formerly FSP FAS 142-3, “Determination of the Useful Life of Intangible Assets,” is used to improve the consistency between the useful life of a recognized intangible asset under SFAS 142 and the period of the expected cash flows used to measure the fair value of the asset under FASB 141 (revised 2007) “Business Combinations” and other U.S. generally accepted accounting principles. The Company is currently evaluating the potential impact of FSP FAS 142-3 on its consolidated financial statements.

The information in this annual report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such Act provides a “safe harbor” for forward-looking statements to encourage companies to provide prospective information about their businesses so long as they identify these statements as forward looking and provide meaningful cautionary statements identifying important factors that could cause actual results to differ from the projected results. All statements other than those statements of historical fact made in this report are forward looking. In particular, the statements herein regarding industry prospects and future results of operations or financial position are forward-looking statements. Forward-looking statements reflect management’s current expectations and are inherently uncertain. Our actual results may differ significantly from management’s expectations.

The following discussion and analysis should be read in conjunction with the Consolidated Financial Statements of MedLink International, Inc., contained herein and in the Company’s annual report for the year ended December 31, 2009 as filed on Form 10-K/A. This discussion should not be construed to imply that the results discussed herein will necessarily continue into the future, or that any conclusion reached herein will necessarily be indicative of actual operating results in the future. Such discussion represents only the best present assessment of our management.

As required by Rule 13a-15 of the Securities Exchange Act of 1934, our principal executive officer and principal financial officers evaluated our company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this report. Based on this evaluation, these officers concluded that as of the end of the period covered by this report, these disclosure controls and procedures were not effective. The conclusion that our disclosure controls and procedures were not effective was due to the presence of the following material weaknesses in internal control over financial reporting which are indicative of many small companies with small staff: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both United States Generally Accepted Accounting Principles and the Securities and Exchange Commission guidelines. Management anticipates that such disclosure controls and procedures will not be effective until the material weaknesses are remediated.

We plan to take steps to enhance and improve the design of our internal controls over financial reporting. During the period covered by this quarterly report on Form 10-Q, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we plan to implement the following changes during our fiscal year ending December 31, 2010: (i) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and (ii) adopt sufficient written policies and procedures for accounting and financial reporting. The remediation efforts set out above are largely dependent upon our securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner.

Because of the inherent limitations in all control systems, no evaluation of internal control over financial reporting can provide absolute assurance that all control issues, if any, within our company have been detected and may not prevent or detect misstatements. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Notwithstanding the existence of the material weakness described above, management has concluded that the consolidated financial statements in this Form 10-Q fairly present, in all material respects, the Company’s financial position, results of operations and cash flows for the periods and dates presented.

Since the date of the most recent evaluation of the Company’s internal controls by the Chief Executive Officer and Chief Financial Officer, there have been no changes in the Company’s internal controls or other factors for the period covered by the subject Form 10-Q that materially affected or were likely to materially affect the Company’s internal control over financial reporting.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed by our company in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the Securities and Exchange Commission. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by our company in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer to allow timely decisions regarding required disclosure.

No.	Description of Exhibit
31.1	Certification of MedLink International, Inc. Chief Executive Officer, Ray Vuono, required by Rule 13a-14(a) or Rule 15d-14(a), dated November 22, 2010.*
31.2	Certification of MedLink International, Inc. Principal Financial Officer, James Rose, required by Rule 13a-14(a) or Rule 15d-14(a), dated November 22, 2010.*
32.1	Certification of MedLink International, Inc. Chief Executive Officer, Ray Vuono, required by Rule 13a-14(a) or Rule 15d-14(a), dated November 22, 2010.*
32.2	Certification of MedLink International, Inc. Principal Financial Officer, James Rose, required by Rule 13a-14(a) or Rule 15d-14(a), dated November 22, 2010.*
* Filed herewith.

Item		Page
Part I.	Explanatory Note FINANCIAL INFORMATION

Item 1.	Financial Statements (unaudited)

	Condensed Consolidated Balance Sheets at September 30, 2010 (unaudited) and December 31, 2009 (audited)	3

	Condensed Consolidated Statements of Operations for the Three months and Nine months ended September 30, 2010 and 2009 (unaudited)	4

	Condensed Consolidated Statements of Cash Flows for the Nine months ended September 30, 2010 and 2009 (unaudited)	5

	Notes to Condensed Consolidated Financial Statements (unaudited)	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	22

Item 4.	Controls & Procedures	22

Part II.	OTHER INFORMATION

Item 1.	Legal Proceedings	23

Item 1A.	Risk Factors	23

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23

Item 3.	Default Upon Senior Securities	23

Item 4.	Submission of Matters To a Vote of Security Holders	23

Item 5.	Other Information	23

Item 6.	Exhibits	23

	SIGNATURES	24

Ex. 31.1	Section 302 Certification of Chief Executive Officer
Ex. 31.2	Section 302 Certification Chief Financial Officer
Ex. 32.1	Section 906 Certification Chief Executive Officer
Ex. 32.2	Section 906 Certification of Chief Financial Officer

	Estimated Useful Life (years)	Amount
Furniture and fixtures	5	$25,823
Leasehold improvements	3	13,666
Equipment	5	409,498
		717,672
Less accumulated depreciation		185,701
		$532,061

Operating lease obligations	Total	Less Than 1 Year	1-3 Years
Operating lease obligations	$346,370	$40,154	$290,800

Supplemental disclosure of cash flow information:
Cash paid during the year for interest	$	-	$	-
Cash paid for taxes	$	-	$	-

Supplemental disclosure of non-cash financing activities:
Share based compensation	$	321,852	$	646,044

Issuance of common shares for consulting and other services rendered	$	1,509,250	$	-