10-Q

 

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 September 30, 2011

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

For the transition period from ____________  to____________

Commission file number 0-7473

Amexdrug Corporation
(Exact name of registrant as specified in its charter)
NEVADA	95-2251025
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer identification No.)
7251 Condor Street
Commerce, California 90040
(Address of principal executive offices)
Registrant's telephone number: (323) 725-3100

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 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 [ X ]  No [  ]

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

Large accelerated filer [  ]	Accelerated filer [  ]
Non-accelerated filer   [  ] (Do not check if a smaller reporting company)	Smaller reporting company [ X ]

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

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: As of November 9, 2011, there were 8,457,109 shares of the issuer’s common stock issued and outstanding, and an additional 13,372 shares held as treasury shares.

AMEXDRUG CORPORATION

FORM 10-Q

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION

		Page
Item 1.	Financial Statements (Unaudited)	3
	Consolidated Balance Sheets — As of September 30, 2011 (Unaudited) and December 31, 2010 (Audited)	5
	Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2011 and 2010 (Unaudited)	6
	Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2011 and 2010 (Unaudited)	7
	Notes to Consolidated Financial Statements (Unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and  Results of Operations	10
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	15
Item 4.	Controls and Procedures	15
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	15
Item 1A	Risk Factors	15
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	15
Item 3.	Defaults Upon Senior Securities	16
Item 4.	(Removed and Reserved)	16
Item 5.	Other Information	16
Item 6.	Exhibits	16

2

PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements.

The consolidated balance sheets of Amexdrug Corporation, a Nevada corporation, and subsidiaries as of September 30, 2011 (unaudited) and December 31, 2010 (audited), the related unaudited consolidated statements of operations for the three and nine month periods ended September 30, 2011 and September 30, 2010, the related unaudited consolidated statements of cash flows for the nine month periods ended September 30, 2011 and September 30, 2010, and the notes to the unaudited consolidated financial statements follow.  The consolidated financial statements have been prepared by Amexdrug’s management, and are condensed; therefore they do not include all information and notes to the financial statements necessary for a complete presentation of the financial position, results of operations and cash flows, in conformity with accounting principles generally accepted in the United States of America, and should be read in conjunction with the annual consolidated financial statements included in Amexdrug’s annual report on Form 10-K for the year ended December 31, 2010.

The accompanying consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to present fairly the results of operations and financial position of Amexdrug Corporation consolidated with BioRx Pharmaceuticals, Inc., Allied Med, Inc., and Dermagen, Inc., and its wholly owned subsidiaries, and all such adjustments are of a normal recurring nature.  The names “Amexdrug”, “we”, “our” and “us” used in this report refer to Amexdrug Corporation.

Operating results for the quarter ended September 30, 2011, are not necessarily indicative of the results that can be expected for the year ending December 31, 2011.

3

AMEXDRUG CORPORATION AND SUBSIDIARIES

INDEX TO FINANCIAL STATEMENTS

	Page
Consolidated Balance Sheets – September 30, 2011(Unaudited) and December 31, 2010 (Audited)	5
Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30, 2011 and 2010	6
Consolidated Statements of Cash Flows (Unaudited) for the Nine Months  Ended September 30, 2011 and 2010	7
Notes to Consolidated Financial Statements	8

4

AMEXDRUG CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	September 30, 2011			December 31,  2010
	(Unaudited)
Assets
Current Assets
Cash and cash equivalents	$	141,542		$	443,703
Investment		3,407			7,649
Accounts receivable, net of allowance of $37,000 and 37,000, respectively		781,128			473,983
Prepaid expenses		-			8,079
Inventory		357,667			304,186
Deferred tax asset		35,086			53,140
Advances officer		12,987			3,918
Total Current Assets		1,331,817			1,294,658
Property and Equipment, at cost
Office and computer equipment		225,615			197,295
Leasehold improvements		15,700			15,700
		241,315			212,995
Less accumulated depreciation		(203,010	)		(199,364	)
Net Property and Equipment		38,305			13,631
Other Assets
Other deposits		28,212			14,462
Intangibles
Customer base, net of accumulated amortization of $18,259		-			-
Trademark, net of accumulated amortization of $711 and $629, respectively		815			1,021
Goodwill		17,765			17,765
Total Other Assets		46,792			33,248
Total Assets	$	1,416,914		$	1,341,537
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable	$	379,621		$	534,337
Accrued liabilities		25,562			29,776
Deferred operating lease liability		11,955			-
Corporate tax payable		126,731			108,304
Notes payable related parties		108,023			108,023
Business lines		197,434			310,590
Total Current Liabilities		849,326			1,091,030
Shareholders' Equity
Common stock, $0.001 par value; 50,000,000 authorized common shares  8,470,481 shares issued and outstanding		8,471			8,471
Additional paid in capital		83,345			83,345
Treasury stock		(12,545	)		(11,441	)
Retained earnings/(accumulated deficit)		488,317			170,132
Total Shareholders' Equity		567,588			250,507
Total Liabilities and Shareholders' Equity	$	1,416,914		$	1,341,537

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

5

AMEXDRUG CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended						Nine Months Ended
	September 30, 2011			September 30, 2010			September 30, 2011			September 30, 2010
Sales	$	3,100,218		$	2,934,779		$	9,562,015		$	8,622,365
Cost of Goods Sold		2,776,937			2,677,962			8,486,052			7,860,284
Gross Profit		323,281			256,817			1,075,963			762,081
Operating Expenses
Selling, general and administrative expense		186,425			153,915			528,064			426,422
Research and development		-			-			-			-
Total Operating Expenses		186,425			153,915			528,064			426,422
Income  before depreciation expense		136,856			102,902			547,899			335,659
Depreciation and amortization expense		1,681			1,767			3,852			6,983
Income before Other Income/(Expenses)		135,175			101,135			544,047			328,676
Other Income/(Expenses)
Interest and other income		2			1			5			1,667
Penalty		-			-			(4,098	)		-
Realized gain/(loss)		-			-			-			(1,740	)
Unrealized gain/(loss)		(2,244	)		199			(3,136	)		(173	)
Interest expense		(6,831	)		(7,013	)		(20,899	)		(20,048	)
Total Other Income/(Expenses)		(9,073	)		(6,813	)		(28,128	)		(20,294	)
Income before Provision for Income Taxes		126,102			94,322			515,919			308,382
Income tax expense		(43,581	)		(39,804	)		(197,734	)		(105,321	)
Net Income	$	82,521		$	54,518		$	318,185		$	203,061
BASIC AND DILUTED INCOME PER SHARE	$	0.01		$	0.01		$	0.04		$	0.02
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
BASIC AND DILUTED		8,470,481			8,470,481			8,470,481			8,470,481

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

6

AMEXDRUG CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine Months Ended
	September 30,  2011			September 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	318,185		$	203,061
Adjustment to reconcile net income to net cash provided (used) in operating activities
Depreciation and amortization		3,852			6,983
Allowance for doubtful accounts		-			(1,400	)
Unrealized (gain)/loss on investment		3,136			173
Realized loss on sale of investment		-			1,740
Change in Assets and Liabilities
(Increase) Decrease in:
Accounts receivable		(307,145	)		(24,435	)
Inventory		(53,480	)		(170,823	)
Prepaid expenses		8,079			-
Other receivable		-			14,109
Deferred tax asset		18,054			(12,648	)
Other assets		(13,750	)		(2,304	)
Increase (Decrease) in:
Accounts payable and accrued liabilities		(158,930	)		57,733
Deferred operating lease liability		11,955			-
Corporate income tax payable		18,427			104,951
NET CASH PROVIDED/(USED) IN OPERATING ACTIVITIES		(151,617	)		177,140
Net CASH FLOWS USED IN INVESTING ACTIVITIES:
Proceeds from the sale of investment		-			1,515
Sale/(Purchase) of investments		1,104			(3,038	)
Purchase of fixed assets		(28,319	)		(4,039	)
NET CASH USED IN INVESTING ACTIVITIES		(27,215	)		(5,562	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Advances to officer		(9,069	)		(2,647	)
Purchase of treasury stock		(1,104	)		(1,550	)
Proceeds/(Payments) from credit line		(113,156	)		14,799
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES		(123,329	)		10,602
NET INCREASE/(DECREASE) IN CASH		(302,161	)		182,180
CASH, BEGINNING OF PERIOD		443,703			121,182
CASH, END OF PERIOD	$	141,542		$	303,362
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	$	16,910		$	13,607
Income taxes	$	52,948		$	800

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

7

AMEXDRUG CORPORATION AND SUBSIDIARIES

NOTES TO FINANCIAL STATEMENTS-UNAUDITED

SEPTEMBER 30, 2011

1.    BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 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 the opinion of management, all normal recurring adjustments considered necessary for a fair presentation have been included.  Operating results for the nine months ended September 30, 2011 are not necessarily indicative of the results that may be expected for the year ending December 31, 2011.  For further information refer to the financial statements and footnotes thereto included in the Company's Form 10-K for the year ended December 31, 2010.

2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of significant accounting policies of AmexDrug Corporation is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.

Income per Share Calculations

Income per Share dictates the calculation of basic earnings per share and diluted earnings per share. Basic earnings per share are computed by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The Company’s diluted income per share is the same as the basic income per share for the nine months ended September 30, 2011, because there are no outstanding dilutive instruments.

3. CAPITAL STOCK

During the nine months ended September 30, 2011, the Company issued no shares of common stock.

4. INCOME TAXES

The Company files income tax returns in the U.S. Federal jurisdiction, and the state of California. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2009.

The Company accounts for uncertainty in tax positions by recognition in the financial statements.

The Company's policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.

5. BUSINESS SEGMENT INFORMATION

Beginning in 2005, the Company has operations in two segments of its business, namely: Distribution and Health and Beauty Products. Distribution consists of the wholesale pharmaceutical distribution and resale of brand and generic pharmaceutical products, over-the-counter drugs and non-drug products and health and beauty products. Health and Beauty Products consist of the manufacture and distribution of primarily health and beauty products.

8

AMEXDRUG CORPORATION AND SUBSIDIARIES

NOTES TO FINANCIAL STATEMENTS-UNAUDITED

SEPTEMBER 30, 2011

5. BUSINESS SEGMENT INFORMATION (Continued)

The following tables describe information regarding the operations and assets of these reportable business segments:

			Health and
			Beauty
	Distributions		Products		Total
For the period ended September 30, 2011
Sales to external customers	$	8,459,446	$	1,102,569	$	9,562,015
Depreciation and amortization		2,430		1,422		3,852
Segment income (loss) before taxes		500,012		15,907		515,919
Segment assets		829,809		587,105		1,416,914
For the period ended September 30, 2010
Sales to external customers	$	7,856,799	$	765,566	$	8,622,365
Depreciation and amortization		3,616		3,367		6,983
Segment income (loss) before taxes		176,535		131,847		308,382
Segment assets		663,982		513,426		1,177,408

6.    SUBSEQUENT EVENT

Management has evaluated subsequent events according to the requirements of ASC TOPIC 855, and has determined there are no subsequent events to be reported.

7.    COMMITMENTS AND CONTINGENCIES

Operating Leases

The Company moved to a new facility and signed a new operating lease for three years as of March 1, 2011. The monthly lease payments per month are $7,600. There are future minimum rental payments required under the operating leases for the facility.  The lease of the facility expires in 2014.

9

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

Overview

Amexdrug Corporation is located at 7251 Condor Street, Commerce, California 90040.  Its phone number is (323) 725-3100.  Its fax number is (323) 725-3133. Its website is www.amexdrug.com.  Shares of Amexdrug common stock are traded on the OTC Bulletin Board under the symbol AXRX.OB.  The President of Amexdrug has had experience working in the pharmaceutical industry for the past 29 years.

Amexdrug Corporation, through its wholly-owned subsidiaries, BioRx Pharmaceuticals, Inc., Allied Med, Inc., Dermagen, Inc. and Royal Health Care, Inc., is a pharmaceutical and cosmeceutical company specializing in the research and development, manufacturing and distribution of pharmaceutical drugs, cosmetics and distribution of prescription and over-the-counter drugs, private manufacturing and labeling and a quality control laboratory. At Amexdrug Corporation, it is our anticipation to give our clientele the opportunity to purchase cost effective products while attempting to maximize the return of investments to our shareholders.

Amexdrug Corporation distributes its products through its subsidiaries, BioRx Pharmaceuticals, Inc., Allied Med, Inc., Dermagen, Inc. and Royal Health Care, Inc. primarily to independent pharmacies and secondarily to small-sized pharmacy chains, alternative care facilities and other wholesalers and retailers in the state of California.

BioRx Pharmaceuticals, Inc. is a proud member of the National Association of Chain Drug Stores (NACDS). BioRx Pharmaceuticals, Inc. has developed numerous unique innovative products in the industry under the name Sponix.

      Our team of professionals fully pledges the effectiveness of our distinct products.

      At this time, we have certain distribution channels with suppliers and customers whom we know and trust, such as Amazon, and hundreds of independent pharmacies. Of the estimated 100,000 retailers (drug stores and food mass), our goal is to have 20,000 stores carry our products in 2011.

      References in this report to "we," "our," "us," the "company" and "Amexdrug" refer to Amexdrug Corporation and also to our subsidiaries, BioRx Pharmaceuticals, Inc., Allied Med, Inc., Dermagen, Inc. and Royal Health Care.

      Amexdrug currently has 50,000,000 shares of authorized common stock $.001 par value, of which 8,457,109 are issued and outstanding as of September 30, 2011, with an additional 13,372 shares held as treasury shares.

BioRx Pharmaceuticals

On November 8, 2004, Amexdrug formed a new subsidiary, BioRx Pharmaceuticals, Inc. as a Nevada corporation.  BioRx Pharmaceuticals, Inc. is committed to offer over the counter (OTC) products that are recommended with trust and faith by physicians, primarily podiatrists and dermatologists.  The focus and mission of BioRx Pharmaceuticals, Inc. is to create, develop and manufacture products to help ease pain and restore and maintain the overall well-being of our customers.  We strive for high performance and quality.  Our commitment is to offer natural and OTC products that are recommended with confidence by doctors and pharmacists and that the customer can use with pleasure.  Our compliance program is diligently followed through the Company. BioRx Pharmaceuticals, Inc. maintains high ethics for animal welfare and our products are never tested on animals.  All products are made in the USA.

A total of fourteen innovative health and wellness products have been for sale by BioRx Pharmaceuticals, Inc. These over-the-counter and natural products are effective for treatment of fungus, arthritis, sunburn protection and for healthy feet and nails. BioRx Pharmaceuticals is planning to sell these products to national chain drugstores, sport chain stores, natural food markets and other mass markets. These products will be marketed under the name of Sponix, and will be sold under the name of BioRx Pharmaceuticals.

10

Allied Med, Inc.

On December 31, 2001, Amexdrug acquired all of the issued and outstanding common shares of Allied Med, Inc., an Oregon corporation, in a share exchange in a related party transaction.

Allied Med, Inc., was formed as an Oregon corporation in October 1997 to operate in the pharmaceutical wholesale business of selling a full line of brand name and generic pharmaceutical products, over-the-counter (OTC) drug and non-drug products and health and beauty products to independent and chain pharmacies, alternative care facilities and other wholesalers. At Allied Med our sincere interest is our customers' needs. Our competitive discount pricing allows our customers an advantage.

Amexdrug assumed the operations of Allied Med, and Amexdrug has been building on the wholesale pharmaceutical operations of Allied Med.

The accompanying financial information includes the operations of Allied Med for all periods presented and the operations of Amexdrug Corporation from April 25, 2000.

Dermagen, Inc.

Amexdrug completed its purchase of Dermagen, Inc. on October 7, 2005.  Dermagen, Inc. is now an operating subsidiary of Amexdrug.  The acquisition of Dermagen, Inc. is not considered to be an acquisition of an significant amount of assets which would require audited financial statements of Dermagen, Inc.

Dermagen, Inc. is a growing manufacturing company specializing in the manufacturing and distribution of certain pharmaceuticals, medical devices, health and beauty products.  Dermagen, Inc. has a U.S.-FDA registered and state FDA approved manufacturing facility licensed to develop high margin skin and novel health and beauty products for niche markets.  Dermagen’s competitive advantage is in its superior product research and development.

Royal Health Care Company

In October 2003, Allied Med, Inc. acquired 100% of the assets of Royal Health Care Company.  Royal Health Care Company is a health and beauty company which has sold specially manufactured facial and body creams, arthritic pain relief medications and an exclusive patented hair care product to pharmacies, beauty salons, beauty supply stores and other fine shops. Royal Health Care Company uses the highest quality ingredients for the finest quality products. Each product has been formulated with the essential ingredients and plant extracts to achieve optimum potential and quality.  Royal Health Care Company products are manufactured by Dermagen, Inc. in an FDA approved manufacturing facility.

The Royal Health Care Company assets acquired include the “Royal Health Care Company” name, logo, and related trademarks, all formulas to products manufactured for sale under the Royal Health Care Company name, and the Royal Health Care Company list of customers.  These intellectual property rights were acquired without cost from a company in which Jack Amin’s wife is a principal shareholder.  Mr. Amin is the CEO and Chairman of Amexdrug Corporation and Allied Med, Inc.  Management believes this acquisition will provide the Company with an opportunity to increase the number of products sold by the Company, and expand the Company’s customer base.

On October 28, 2004, Amexdrug formed a new subsidiary, Royal Health Care, Inc. as a Nevada corporation.  Royal Health Care, Inc. was formed to manufacture and sell health and beauty products.

11

Lease Agreements and Certain Other Contracts

The Company has one written lease agreement covering the property leased to the Company in Fullerton, California, and one lease agreement covering the property leased to the Company in Commerce, California. The Company's loan agreement with Nora Amin is verbal. The Company does not have written contracts with its major suppliers or buyers. The Company has a written line of credit agreement with National Bank of California. Copies of the Company's written lease agreements and material contracts have been filed as exhibits to certain of its quarterly and annual reports. See the Exhibit Index for a description of these agreements and for information on where copies can be found.

Business Segments

Since 2005, Amexdrug has had operations in two segments of its business, namely:  Distribution and Health and Beauty Products.  Distribution consists of the wholesale pharmaceutical distribution and resale of brand and generic pharmaceutical products, over-the-counter drugs and non-drug products and health and beauty products.  Health and Beauty Products consist of the manufacture and distribution of primarily health and beauty products. Manufacturing includes expertise in research and development for health care industry products, including pharmacy supplies.

Results of Operations

For the Three Months Ended September 30, 2011.

Revenues.

For the three months ended September 30, 2011, Amexdrug reported sales of $3,100,218, comprised of $2,747,163 of sales from the Company’s pharmaceutical wholesale business of selling brand name and generic pharmaceutical products and over the counter(OTC) health and beauty products, and $353,055 of sales of health and beauty products manufactured by the Company.  This is $165,439more than the $2,934,779 of sales reported for the three months ended September 30, 2010, which was comprised primarily of $2,661,325 sales from the Company’s pharmaceutical wholesale distribution business of selling brand name and generic pharmaceutical products and over the counter (OTC) health and beauty products, and $273,454 of sales of health and beauty products manufactured by the Company.  During the three month period ended September 30, 2011, Amexdrug experienced an increase in total sales due, in part, to increased marketing efforts of the Company, as well as having an increased number of products to sell.

Costs of Goods Sold.

Cost of goods sold for the three months ended September 30, 2011 was $2,776,937 an increase of $98,975from the $2,677,962 cost of goods sold for the three months ended September 30, 2010.

Gross Profit.

During the three months ended September 30, 2011 gross profit increased by $66,464to $323,381 or 10.4%of sales, from the $256,817, or 8.8% of sales recorded for the three months ended September 30, 2010.  The increase in gross profit margin is attributable to an increase in sales as well as an increased percentage of sales with higher gross margin products sold in the three month period ended September 30, 2011.

Expenses.

Total operating expenses, consisting entirely of selling, general and administrative expenses, for the three months ended September 30, 2011 were $186,425, an increase of $32,510 from the total operating expenses of $153,915 recorded for the three months ended September 30, 2010.  The increase in selling, general and administrative expense is primarily attributed to increased commissions payable on the increased sales, increased amounts paid for outside services and increased officer compensation.

12

Net Income.

During the three months ended September 30, 2011, Amexdrug earned net income of $82,521, as compared to the net income of $54,518 earned in the three months ended September 30, 2010.  Amexdrug’s $28,003 increase in net income during the three month period ended September 30, 2011 is attributable largely an increase in sales of higher gross margin products in the later period.

For the Nine Months Ended September 30, 2011.

Revenues.

For the nine months ended September 30, 2011, Amexdrug reported sales of $9,562,015, comprised of $8,459,446 of sales from the Company’s pharmaceutical wholesale business of selling brand name and generic pharmaceutical products and over the counter (OTC) health and beauty products, and $1,102,569 of sales of health and beauty products manufactured by the Company.  This is $939,650more than the $8,622,365 of sales reported for the nine months ended September 30, 2010 which was comprised primarily of $7,856,799 of sales from the Company’s pharmaceutical wholesale distribution business of selling brand name and generic pharmaceutical products and over the counter (OTC) health and beauty products, and $765,566 of sales of health and beauty products manufactured by the Company.  During the nine month period ended September 30, 2011, Amexdrug experienced an increase in total sales due, in part, to increased marketing efforts of the Company, as well as having an increased number of products to sell.

Costs of Goods Sold.

Cost of goods sold for the nine months ended September 30, 2011 was $8,486,052, an increase of $625,768from the $7,860,284 cost of goods sold for the nine months ended September 30, 2010.

Gross Profit.

During the nine months ended September 30, 2011 gross profit increased by $313,882 to $1,075,963, or 11.3%of sales, from the $762,081, or 8.8% of sales recorded for the nine months ended September 30, 2010.  The increase in gross profit margin is attributable to an increase in sales as well as an increased percentage of sales with higher gross margin products sold in the first nine months of 2011.

Expenses.

Total operating expenses, consisting entirely of selling, general and administrative expense, for the nine months ended September 30, 2011 were $528,064, an increase of $101,642 from the total operating expenses of $426,422 recorded for the nine months ended September 30, 2010.  The increase in selling, general and administrative expense is primarily attributed to increased commissions payable on the increased sales, increased amounts paid for outside services and increased officer compensation.

Net Income.

During the nine months ended September 30, 2011, Amexdrug earned net income of $318,185, an increase of $115,124 from the net income of $203,061 experienced in the nine months ended September 30, 2010. Amexdrug's increase in net income during the nine month period ended September 30, 2011 is attributable largely to the increase of sales of higher gross margin products sold and a resulting increase in gross profits earned in the later period, partially offset by an increase in operating expenses in the later period.

13

Liquidity and Capital Resources – September 30, 2011

As of September 30, 2011, Amexdrug reported total current assets of $1,331,817, comprised of cash and cash equivalents of $141,542, accounts receivable of $781,128, inventory of $357,667, a deferred tax asset of $35,086, investment of $3,407 and advances officer of $12,987. Total assets as of September 30, 2011 were $1,416,914 which included total current assets, plus net property and equipment of $38,305, other deposits of $28,212, Trademark of  $815, and goodwill of $17,765.

Amexdrug’s liabilities as of September 30, 2011 consisted primarily of accounts payable of $379,621, notes payables to related parties of $108,023, business line of credit of $197,434, corporate tax payable of $126,731 and accrued liabilities of $25,562.

During the nine months ended September 30, 2011, Amexdrug used $151,617 cash in operating activities compared to $177,140cash generated in operating activities in the nine months ended September 30, 2010.  The primary adjustments to reconcile net income to net cash used in operating activities during the nine months ended September 30, 2011 were as follows:  an increase in accounts receivable of $307,145, an increase in inventory of $53,480, and a decrease in accounts payable and accrued liabilities of $158,930.  Amexdrug had $141,542in cash and cash equivalents at September 30, 2011.  Operations have primarily been funded through cash generated from operations.  Management does not anticipate that Amexdrug will need to seek additional financing during the next twelve months.

Stock Repurchases

Between approximately June 2007 and September 30, 2011, Amexdrug repurchased a total of 13,372 shares of its common stock at prices ranging from a low of $0.20 per share to a high of $3.03 per share. These shares are held by Amexdrug as treasury shares. Amexdrug anticipates that it may make additional small purchases of its shares throughout the remainder of 2011.

Inflation

In the opinion of management, inflation has not and will not have a material effect on our operations in the immediate future. Management will continue to monitor inflation and evaluate the possible future effects of inflation on our business and operations.

Capital Expenditures

The Company expended $0 and $0 on capital expenditures during the three month periods ended September 30, 2011 and 2010, respectively.  The Company has no current plans for any significant capital expenditures.

Critical Accounting Policies

In the notes to the audited consolidated financial statements for the year ended December 31, 2010, included in the Company’s Annual Report on Form 10-K, the Company discusses those accounting policies that are considered to be significant in determining the results of operations and its financial position. The Company believes that the accounting principles utilized by it conform to accounting principles generally accepted in the United States of America.

The preparation of financial statements requires Company management to make significant estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. By their nature, these judgments are subject to an inherent degree of uncertainty. On an on-going basis, the Company evaluates estimates. The Company bases its estimates on historical experience and other facts and circumstances that are believed to be reasonable, and the results form the basis for making judgments about the carrying value of assets and liabilities.  The actual results may differ from these estimates under different assumptions or conditions.

14

Forward-looking statements

This document includes various forward-looking statements with respect to future operations of Amexdrug that are subject to risks and uncertainties.  Forward-looking statements include information concerning expectations of future results of operations and such statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “estimates” or similar expressions.  For those statements, Amexdrug claims the protection of the safe harbor for forward-looking statements contained in the Private Litigation Reform Act of 1995.  Actual results may vary materially.

Item 3.         Quantitative and Qualitative Disclosures About Market Risk.

A “smaller reporting company” (as defined by Item 10 of the Regulation S-K) is not required to provide the information required by this Item.

Item 4.         Controls and Procedures.

Under the supervision and with the participation of management, our principal executive officer and principal financial officer evaluated the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (“Exchange Act”), as of September 30, 2011.  Based on this evaluation, our principal executive officer and our principal financial officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective and adequately designed to ensure that the information required to be disclosed by us in the reports we submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the applicable rules and forms and that such information was accumulated and communicated to our chief executive officer and chief financial officer, in a manner that allowed for timely decisions regarding required disclosure.

During the last fiscal quarter ended September 30, 2011, there has been no change in internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

ANY FORWARD-LOOKING STATEMENTS INCLUDED IN THIS FORM 10-Q REPORT REFLECT MANAGEMENT’S BEST JUDGMENT BASED ON FACTORS CURRENTLY KNOWN AND INVOLVE RISKS AND UNCERTAINTIES.  ACTUAL RESULTS MAY VARY MATERIALLY.

PART II - OTHER INFORMATION

Item 1.         Legal Proceedings.

Amexdrug is not presently a party to any material pending legal proceedings.  To the best of Amexdrug’s knowledge, no governmental authority or other party has threatened or is contemplating the filing of any material legal proceeding against Amexdrug.

Item 1A.      Risk Factors.

A “smaller reporting company” (as defined by Item 10 of the Regulation S-K) is not required to provide the information required by this Item.

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

              During the three month period ended September 30, 2011, the Company did not issue any shares of its unregistered common stock.  For a description of any sales of shares of the Company’s unregistered stock made in the past three years, please refer to the Company’s Annual Reports on Form 10-KSB or Form 10-K, and the Company’s Quarterly Reports on Form 10-QSB or Form 10-Q filed since December 31, 2007.

15

Item 3.         Defaults Upon Senior Securities.

None; not applicable.

Item 4.         (Removed and Reserved).

Item 5.         Other Information.

None; not applicable.

Item 6.         Exhibits.

(a) Exhibits.

The following exhibits are filed as part of this report.

EXHIBIT INDEX

Exhibit		Exhibit
Number	Description	Location
2.1	Agreement and Plan of Merger (to change domicile from California)	*
2.2	Agreement and Plan of Reorganization	**
3.1	Articles of Incorporation	***
3.2	By-Laws	***
10.1	Promissory Note with National Bank of California dated June 23, 2008	*****
10.2	Change in Terms Agreementwith National Bank of  California dated June 9, 2009	*****
10.3	Change in Terms Agreementwith National Bank of  California dated March 3, 2009	******
10.4	Subordination Agreement between Nora Y. Amin, National Bank of California, Amexdrug and its subsidiaries dated June 9, 2009	******
10.5	Business Loan Agreementbetween National Bank of  California, Amexdrug and its subsidiaries dated June 23, 2008	******
10.6	Commercial SecurityAgreementbetween National Bank of California, Amexdrug and its subsidiaries dated June 23, 2008	******
10.7	Commercial Guaranteebetween National Bank of  California, Jack N. Amin, Amexdrug and its Subsidiaries	******

16

10.8	Commercial Guaranteebetween National Bank of  California, Nora Y. Amin, Amexdrug and its  subsidiaries	******
10.9	Lease Agreement between Fullerton Business Lessee, dated March 1, 2011 (Units I & J)	*******
10.10	Guaranty of Lease by Jack Amin (Units I & J)	*******
10.11	Lease Agreement between Condor Associates, LLC, Lessor, and Allied Med, Inc., Lessee, dated February 22, 2011	*******
10.12	Guaranty of Lease by Jack Amin and Nora Amin	*******
14.1	Code of Ethics	****
21.1	List of Subsidiaries of Amexdrug Corporation	******
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes- Oxley Act of 2002	This Filing
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	This Filing
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	This Filing
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	This Filing
101.INS	XBRL Instance Document	********
101.PRE	XBRL Taxonomy Extension  Presentation Linkbase	********
101.LAB	XBRL Taxonomy Extension Label Linkbase	********
101.DEF	XBRL Taxonomy Extension Definition Linkbase	********
101.CAL	XBRL Taxonomy Extension Calculation Linkbase	********
101.SCH	XBRL Taxonomy Extension Schema	********

17

	Summaries of all exhibits contained within this report are modified in their entirety by reference to these Exhibits.
*	Exhibit 2.1 is incorporated by reference from Amexdrug’s Form 8-K Current Report filed December 21, 2001 as Exhibit No. 10.01.
**	Exhibit 2.2 is incorporated by reference from Amexdrug’s Form 8-K Current Report filed January 15, 2002 as Exhibit No. 10.01.
***	Exhibit 3.1 and 3.2 are incorporated by reference  from Amexdrug’s Form 10-KSB for the year ended December 31, 2001 filed on April 1, 2002.
****	Exhibit 14.1 is incorporated by reference from Amexdrug’s Form 10-K for the year ended December 31, 2008 filed April 13, 2009
*****	Exhibits 10.1 and 10.2 are incorporated by reference From Amexdrug’s Form 10-Q for the period ended June 30, 2009 filed August 14, 2009
******	Exhibits 10.3 through 10.8 and 21.1 are incorporated by reference from Amexdrug’s Form 10-Q/A for the period ended June 30, 2009 filed September 18, 2009
*******	Exhibits 10.9 through 10.12 are incorporated by reference from Amexdrug’s Form 10-K for the year ended December 31, 2010 filed March 31, 2011
******	Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed “furnished” and not “filed” or part of a registration statement or prospectus for purposes of Sections 11 and 12 of the Securities Act of 1933, or deemed “furnished” and not “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, and otherwise  is not subject to liability under these sections.

18

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.

	AMEXDRUG CORPORATION
Date: November 14, 2011	By: /s/ Jack Amin
	Jack Amin
	Director, President, Chief Executive Officer,
	Chief Financial Officer and Chief Accounting
	Officer

19

EX-31.1

EXHIBIT 31.1

SECTION 302

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Jack Amin, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Amexdrug Corporation,

2. Based on my knowledge, this quarterly 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. The registrant’s other certifying officer(s) and I are 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 we 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 control over financial reporting, or caused such internal control 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 conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)   disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our 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 control 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 control over financial reporting.

Date:  November 14, 2011	/s/ Jack Amin
	Jack Amin, Chief Executive Officer

EX-31.2

EXHIBIT 31.2

SECTION 302

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Jack Amin, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Amexdrug Corporation,

2. Based on my knowledge, this quarterly 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 quarterly 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. The registrant’s other certifying officer(s) and I are 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 we 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 control over financial reporting, or caused such internal control 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 conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our 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 control 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 control over financial reporting.

Date:  November 14, 2011	/s/ Jack Amin
	Jack Amin, Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Amexdrug Corporation (the “Company”) on Form 10-Q for the period ending September 30, 2011, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Jack Amin, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

(1)	the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

_/s/ Jack Amin___________________

Jack Amin

Chief Executive Officer

November 14, 2011

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.  The foregoing certifications are accompanying the Company's Form 10-Q solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code) and are not being filed as part of the Form 10-Q or as a separate disclosure document.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Amexdrug Corporation (the “Company”) on Form 10-Q for the period ending September 30, 2011, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Jack Amin, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

(1)	the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

_/s/ Jack Amin___________________

Jack Amin

Chief Financial Officer

November 14, 2011

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.  The foregoing certifications are accompanying the Company's Form 10-Q solely pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code) and are not being filed as part of the Form 10-Q or as a separate disclosure document.

XML

Balance Sheet Parenthetical (USD $)	Sep. 30, 2011	Dec. 31, 2010
Allowance for doubtful accounts receivable	$ 37,000	$ 37,000
Amortization of customer relationships	18,259	18,259
Accumulated amortization - trademarks	$ 711	$ 629
Common stock par value	$ 0.001	$ 0.001
Common stock shares authorized	50,000,000	50,000,000
Common stock shares issued	8,470,481	8,470,481
Common stock shares outstanding	8,470,481	8,470,481

XML

Statement of Operations (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Sales	$ 3,100,218	$ 2,934,779	$ 9,562,015	$ 8,622,365
Cost of Goods Sold	2,776,937	2,677,962	8,486,052	7,860,284
Gross Profit	323,281	256,817	1,075,963	762,081
Operating Expenses
Selling, general and administrative expense	186,425	153,915	528,064	426,422
Research and development
Total Operating Expenses	186,425	153,915	528,064	426,422
Income before depreciation expense	136,856	102,902	547,899	335,659
Depreciation and amortization expense	1,681	1,767	3,852	6,983
Income before Other Income/(Expenses)	135,175	101,135	544,047	328,676
Other Income/(Expenses)
Interest and other income	2	1	5	1,667
Penalty			(4,098)
Realized gain/(loss)				(1,740)
Unrealized gain/(loss)	(2,244)	199	(3,136)	(173)
Interest expense	(6,831)	(7,013)	(20,899)	(20,048)
Total Other Income/(Expenses)	(9,073)	(6,813)	(28,128)	(20,294)
Income before Provision for Income Taxes	126,102	94,322	515,919	308,382
Income tax expense	(43,581)	(39,804)	(197,734)	(105,321)
Net Income	$ 82,521	$ 54,518	$ 318,185	$ 203,061
BASIC AND DILUTED INCOME PER SHARE	$ 0.01	$ 0.01	$ 0.04	$ 0.02
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING BASIC	8,470,481	8,470,481	8,470,481	8,470,481
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING DILUTED	8,470,481	8,470,481	8,470,481	8,470,481

XML

Document and Entity Information	3 Months Ended
	Sep. 30, 2011	Nov. 09, 2011
Document and Entity Information
Entity Registrant Name	AMEXDRUG CORP
Document Type	10-Q
Document Period End Date	Sep. 30, 2011
Amendment Flag	false
Entity Central Index Key	0000045621
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		8,457,109
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q3

XML

Commitments and Contingencies

3 Months Ended

Sep. 30, 2011

Commitment and Contingencies

Commitments and Contingencies Disclosure [Text Block]

7.     COMMITMENTS AND CONTINGENCIES

Operating Leases

The Company moved to a new facility and signed a new operating lease for three years as of March 1, 2011. The monthly lease payments per month are $7,600. There are future minimum rental payments required under the operating leases for the facility.  The lease of the facility expires in 2014.

XML

Capital Stock

3 Months Ended

Sep. 30, 2011

Equity

Stockholders' Equity Note Disclosure [Text Block]

3.    CAPITAL STOCK

During the nine months ended September 30, 2011, the Company issued no shares of common stock.

XML

Basis of Presentation

3 Months Ended

Sep. 30, 2011

Organization, Consolidation and Presentation of Financial Statements

Basis of Accounting [Text Block]

1.     Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 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 the opinion of management, all normal recurring adjustments considered necessary for a fair presentation have been included.  Operating results for the nine months ended September 30, 2011 are not necessarily indicative of the results that may be expected for the year ending December 31, 2011.  For further information refer to the financial statements and footnotes thereto included in the Company's Form 10-K for the year ended December 31, 2010.

XML

Income Taxes

3 Months Ended

Sep. 30, 2011

Income Taxes

Income Tax Disclosure [Text Block]

4.    INCOME TAXES

The Company files income tax returns in the U.S. Federal jurisdiction, and the state of California. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2009.

The Company accounts for uncertainty in tax positions by recognition in the financial statements.

The Company's policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses.

XML

Business Segment Information

3 Months Ended

Sep. 30, 2011

Segment Reporting

Segment Reporting Disclosure [Text Block]

5.     BUSINESS SEGMENT INFORMATION

Beginning in 2005, the Company has operations in two segments of its business, namely: Distribution and Health and Beauty Products. Distribution consists of the wholesale pharmaceutical distribution and resale of brand and generic pharmaceutical products, over-the-counter drugs and non-drug products and health and beauty products. Health and Beauty Products consist of the manufacture and distribution of primarily health and beauty products.

The following tables describe information regarding the operations and assets of these reportable business segments:

  

			Health and
			Beauty
	Distributions		Products		Total
For the period ended September 30, 2011
Sales to external customers	$	8,459,446	$	1,102,569	$	9,562,015
Depreciation and amortization		2,430		1,422		3,852
Segment income (loss) before taxes		500,012		15,907		515,919
Segment assets		829,809		587,105		1,416,914
For the period ended September 30, 2010
Sales to external customers	$	7,856,799	$	765,566	$	8,622,365
Depreciation and amortization		3,616		3,367		6,983
Segment income (loss) before taxes		176,535		131,847		308,382
Segment assets		663,982		513,426		1,177,408

XML

Subsequent Events

3 Months Ended

Sep. 30, 2011

Subsequent Events

Subsequent Events [Text Block]

6.     SUBSEQUENT EVENT

Management has evaluated subsequent events according to the requirements of ASC TOPIC 855, and has determined there are no subsequent events to be reported.

XML

Statement of Cash-flows (USD $)	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Net income	$ 318,185	$ 203,061
Depreciation and amortization	3,852	6,983
Allowance for doubtful accounts		(1,400)
Unrealized (gain)/loss on investment	3,136	173
Realized loss on sale of investment		1,740
Change in accounts receivable	(307,145)	(24,435)
Change in inventory	(53,480)	(170,823)
Change in prepaid expenses	8,079
Change in other receivable		14,109
Change in deferred tax asset	18,054	(12,648)
Change in other assets	(13,750)	(2,304)
Change in accounts payable and accrued liabilities	(158,930)	57,733
Change in deferred operating lease liability	11,955
Change in corporate income tax payable	18,427	104,951
NET CASH PROVIDED/(USED) IN OPERATING ACTIVITIES	(151,617)	177,140
Net CASH FLOWS USED IN INVESTING ACTIVITIES:
Proceeds from the sale of investment		1,515
Sale/(Purchase) of investments	1,104	(3,038)
Purchase of fixed assets	(28,319)	(4,039)
NET CASH USED IN INVESTING ACTIVITIES	(27,215)	(5,562)
CASH FLOWS FROM FINANCING ACTIVITIES:
Advances to officer	(9,069)	(2,647)
Purchase of treasury stock	(1,104)	(1,550)
Proceeds/(Payments) from credit line	(113,156)	14,799
NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES	(123,329)	10,602
NET INCREASE/(DECREASE) IN CASH	(302,161)	182,180
CASH, BEGINNING OF PERIOD	443,703	121,182
CASH, END OF PERIOD	141,542	303,362
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	16,910	13,607
Income taxes	$ 52,948	$ 800

XML

Summary of Significant Accounting Policies

3 Months Ended

Sep. 30, 2011

Accounting Policies

Significant Accounting Policies [Text Block]

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of significant accounting policies of AmexDrug Corporation is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.

Income per Share Calculations

Income per Share dictates the calculation of basic earnings per share and diluted earnings per share. Basic earnings per share are computed by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The Company’s diluted income per share is the same as the basic income per share for the nine months ended September 30, 2011, because there are no outstanding dilutive instruments.

XML

Balance Sheet (USD $)	Sep. 30, 2011	Dec. 31, 2010
Cash and cash equivalents	$ 141,542	$ 443,703
Investment	3,407	7,649
Accounts receivable, net of allowance of $37,000 and 37,000, respectively	781,128	473,983
Prepaid expenses		8,079
Inventory	357,667	304,186
Deferred tax asset	35,086	53,140
Other receivable
Advances officer	12,987	3,918
Total Current Assets	1,331,817	1,294,658
Office and computer equipment	225,615	197,295
Leasehold improvements	15,700	15,700
Property and Equipment, gross	241,315	212,995
Less accumulated depreciation	(203,010)	(199,364)
Net Property and Equipment	38,305	13,631
Other deposits	28,212	14,462
Customer base, net of accumulated amortization of $18,259
Trademark, net of accumulated amortization of $711 and $629, respectively	815	1,021
Goodwill	17,765	17,765
Total Other Assets	46,792	33,248
Total Assets	1,416,914	1,341,537
Accounts payable	379,621	534,337
Accrued liabilities	25,562	29,776
Deferred operating lease liability	11,955
Corporate tax payable	126,731	108,304
Notes payable related parties	108,023	108,023
Business lines	197,434	310,590
Total Current Liabilities	849,326	1,091,030
Common stock, $0.001 par value; 50,000,000 authorized common shares 8,470,481 shares issued and outstanding	8,471	8,471
Additional paid in capital	83,345	83,345
Treasury stock	(12,545)	(11,441)
Retained earnings/(accumulated deficit)	488,317	170,132
Total Shareholders' Equity	567,588	250,507
Total Liabilities and Shareholders' Equity	$ 1,416,914	$ 1,341,537