UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-QSB

(Mark One)

x Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2005

¨ Transition report under Section 13 or 15(d) of the Exchange Act

Commission file number: 33-55254-36

E Med Future, Inc.

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

Nevada	87-0485314
(State of incorporation)	(I.R.S. Employer Identification No.)

794 Morrison Road, Suite 911, Columbus, OH 43230

(Address of principal executive offices)

877-855-1319	www.NeedleZap.com
(Issuer’s telephone number)	(Issuer’s website)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 34,013,415 shares of common stock, $0.001 par value per share, as of August 1, 2005

Transitional Small Business Disclosure Format (check one):    Yes  ¨    No  x

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION	1
Item 1. Financial Statements	1
Item 2. Management’s Discussion and Analysis	1
Our Products	1
Recent Events	2
Looking Ahead	2
Our History	2
Results of Operations	3
Second Quarter of 2005 Compared to 2004	3
Net Sales	3
Costs and Expenses	3
Net Loss	4
First Six Months of 2005 Compared to 2004	4
Net Sales	4
Costs and Expenses	4
Net Loss	4
Financial Condition and Liquidity	4
Off-Balance Sheet Arrangements	5
Forward Looking Statements	5
How to Learn More About E Med	6
Item 3. Controls and Procedures	6
PART II — OTHER INFORMATION	7
Item 1. Legal Proceedings	7
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	7
Item 3. Defaults Upon Senior Securities	7
Item 4. Submission of Matters to a Vote of Security Holders	7
Item 5. Other Information	7
Item 6. Exhibits	7
SIGNATURES	8
June 30, 2005 Financial Statements	F-1

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

Our June 30, 2005 unaudited consolidated financial statements follow this quarterly report beginning on page F-1.

Item 2. Management’s Discussion and Analysis

Headquartered in Columbus, Ohio, E Med Future, Inc. manufactures and markets products designed to reduce accidental hypodermic needlestick injuries. Our primary product, NeedleZap®, completely disintegrates the sharp portion of the needle. According to the American Nursing Association, there are an estimated one million accidental needlesticks reported in the United States in the healthcare industry alone. We believe the applications for the product are far reaching, and include healthcare professionals, law enforcement and correctional personnel, veterinarians, military, clinical researchers, hospitality, and sanitation workers. NeedleZap® is designed to work within the parameters of recent OSHA needlestick mandates which require employers to take advantage of new technologies to prevent needlesticks in the workplace.

Our Products

Our primary product is NeedleZap®, a revolutionary safety device intended to help reduce accidental needlestick injuries by disintegrating the sharp portion of a hypodermic needle. When a hypodermic needle is inserted into the unit, the patented electrode system disintegrates the needle in approximately two seconds at 2200° F.

In July 2003, we announced the beginning of clinical testing and market evaluation of the first extensions to the NeedleZap® product line which include a dental parking station and butterfly needle burner. We are presently in the process of obtaining patent protection for these new products. Because the Company lacks sufficient funds to expedite the development of these products, both products remain in the development phase. We anticipate that both products will involve supplements to our existing FDA pre-market approval; therefore, introduction and timing of these products into the marketplace will be contingent on FDA approval.

The dental parking station is intended to provide a safer, temporary resting place for a hypodermic syringe. During a procedure, dentists often reuse a hypodermic needle on the same patient when additional anesthesia is required. Since the needle is not destroyed immediately after the initial use, dentists generally recap the needle or leave the needle exposed, increasing the risk of an accidental needlestick injury. The NeedleZap® unit sits directly on the dental parking station enabling the dentist to recap, or disintegrate, the hypodermic needle easily with one hand at the end of the procedure, and significantly reducing the risk of a needlestick injury.

The butterfly needle burner is intended to accommodate needles not secured to a hypodermic syringe. Butterfly needles are used primarily for IV’s and kidney dialysis. Since the original NeedleZap® unit was intended to disintegrate hypodermic needles held by a syringe, the butterfly needle burner necessitated design modifications, including a change to the housing and repositioning of the electrode system.

1

On December 30, 2003, we acquired Medical Safety Technologies, Inc. from UTEK Corporation. Medical Safety Technologies, or MSTI, holds the worldwide exclusive license to a patented invention, known as the “Safe Receptacle for Sharps,” that is designed to aid in the safe transport of sterile and used sharp medical instruments. This Emory University invention was developed to help reduce the possibility of needlestick injuries by maintaining medical instruments in an angled, accessible position while encasing their sharp edges. We are enthusiastic about adding the Safe Receptacle for Sharps device to our product line and believe that it is a complimentary technology to our NeedleZap® product. By expanding our future product line, we hope to bring added value to the sales and distribution channel we are building. However, we are not presently pursuing the sharps receptacle as management believes resources should be conserved for marketing the currently approved product.

Recent Events

On July 21, 2005, Robert J. Ochsendorf and John J. Perez stepped down from our board of directors to focus on other business interests. Ronald L. Alexander and Donald Sullivan were immediately appointed to fill the vacancies in the board resulting from the departure of Messrs. Ochsendorf and Perez. Mr. Alexander was an original investor in E Med when the company was founded in 2000. He currently owns and operates several businesses, including funeral homes and a hospital bed sale and rental company. Mr. Sullivan has served as our CFO since November 2004.

Looking Ahead

We incurred net losses the last four years while we obtained FDA approval for our NeedleZap® product, applied for patent protection, entered into distribution relationships and test marketed the product. We have not had significant sales volume to date. We made significant progress in expanding our distribution network in 2004, adding distribution partners in the United States and throughout the world. Although 2004 sales were disappointing, we believe that we have now obtained significant experience in how to market our products effectively and we anticipate an increase in sales in 2005. To date, sales in the third quarter have been positive. Of course, we cannot guarantee that sales will increase or that we will be able to attain profitability.

Our History

The Company was formed under the laws of the State of Nevada on March 14, 1990, but until 2003 we were a shell company with no significant operations other than seeking to identify an existing business to acquire. Trading in our stock was dependant on our acquisition of an operating business. On April 4, 2003, we participated in a merger in which we acquired E Med Future, Inc., our operating subsidiary. In connection with the transaction, we issued 19,850,000 unregistered shares of our common stock (95% of our outstanding shares) to the former stockholders of E Med Future.

Pursuant to the terms of the merger agreement, we changed our corporate name from “Micro-Economics, Inc.” to “E Med Future, Inc.” In addition, our original directors and officers resigned and were replaced by a new board and management team. Our shares began trading on the Over-the-Counter Bulletin Board under the symbol “EMDF.OB” on April 17, 2003. For additional information about the merger, please see the Current Report on Form 8-K dated April 4, 2003 that we filed with the SEC on April 11, 2003.

2

In December 2001, we filed a pre-market approval application, or PMA, with The Center for Devices and Radiological Health (CDRH) of the Food and Drug Administration (FDA) for NeedleZap®. On the basis of counsel’s advice, we determined that NeedleZap® was not regulated by the CDRH as a medical device in veterinarian or law enforcement applications. Therefore, we opted to market NeedleZap® in the United States to veterinarians and law enforcement professionals. Revenues generated from these sales would offset the costly and lengthy FDA approval process and provide funding for promotion, tooling, parts and the overall operations.

In July 2002, we received an approvable letter from the FDA stating that NeedleZap® met all the requirements for the safety and effectiveness data testing for a Class III medical device. The approvable letter was subject to an FDA inspection that found the manufacturing facilities, methods and controls in compliance with the applicable requirements of FDA quality system regulation. During the manufacturing inspectional phase in August 2002, the FDA requested that we suspend all sales to veterinarian and law enforcement markets until the product was fully approved. We voluntarily complied with the FDA’s request and suspended all sales in U.S. markets and issued a recall for all units sold in the United States. In April 2004, we had recovered all devices that were sold prior to FDA approval and the FDA issued a letter terminating the recall in July 2004.

On March 14, 2003, the FDA issued a final approval order letter for NeedleZap®. Final labeling was submitted and approved on March 19, 2003, clearing the way to market NeedleZap® in the United States in healthcare facilities and treatment settings.

Results of Operations

We are a development stage company and did not have full approval to market and sell our products until March 2003. Initial sales in 2003 caused us to be optimistic that our revenues and profits would increase in subsequent years. However, our 2004 results did not meet expectations due to lower than anticipated sales by our distributors. Sales by our distributors in the first six months of 2005 did not meet expectations and delivery of units to two international customers scheduled for the first six months were delayed due to requirements for payment prior to shipment.

Second Quarter of 2005 Compared to 2004

Net Sales

We had net sales of $6,610 in the quarter ended June 30, 2005, compared with $60,154 for the same period in 2004, a decrease of $53,544 or 89.0%. This decrease is primarily attributable to decreased domestic and international sales due to our new marketing program for domestic sales not being fully implemented in the second quarter and delays in shipping international orders due to our requiring payment in advance of shipment.

Costs and Expenses

Operating costs and expenses decreased $22,756, or 10.9%, to $185,742 in the second quarter of 2005 from $208,498 in 2004. As a percentage of net sales, cost of goods sold decreased to 38.4% in 2005 from 207.8% in 2004 due to decreased manufacturing and FDA compliance costs in 2005.

3

Other expenses decreased $7,054, or 35.7%, to $12,688 in 2005 from $19,742 in 2004, due to a decrease in interest expense resulting from lower balances outstanding on our interest bearing debt in 2005.

Net Loss

In the second quarter of 2005, our net loss increased to $191,820, or $0.01 a share, from a net loss of $168,086 in 2004 as a result of decreased sales only partially offset by lower costs.

First Six Months of 2005 Compared to 2004

Net Sales

We had net sales of $19,530 in the six months ended June 30, 2005, compared with $189,180 for the same period in 2004, a decrease of $169,650 or 89.7%. This decrease is attributable our new marketing program not being fully implemented in 2005. To date sales have been positive for the third quarter.

Costs and Expenses

Operating costs and expenses increased $576,657, or 124.6%, in the first six months of 2005 to $1,039,316 from $462,659 in 2004. The first six months of 2005 were impacted by $627,900 of stock based compensation that was not present in 2004. During January 2005, we issued 4,830,000 shares of common stock for consulting services. Stock based compensation was recorded in the amount of $0.39 per share, or $1,883,700 in total, for these services. In July 2005, we hired a qualified valuation consultant to perform a valuation of the Company stock. Pursuant to this valuation, the shares of stock were revalued at $0.13 per share and the stock based compensation charge was reduced to $627,900. As a percentage of net sales, cost of goods sold decreased to 87.0% in 2005 from 106.1% in 2004 due to decreased manufacturing and FDA compliance related costs in 2005.

Other expenses increased $3,638, or 16.9%, to $25,118 in 2005 from $21,480 in 2004 due to an increase in interest expense resulting from higher balances outstanding on our interest bearing debt in 2005.

Net Loss

In the first half of 2005, our net loss increased to $1,044,904, or $0.03 a share, from a net loss of $294,959 in 2004 as a result of an increase in stock based compensation expense in 2005 and decreased sales without a corresponding decrease in operating costs.

Financial Condition and Liquidity

We had no available cash on June 30, 2005, compared to $2,810 at the end of the second quarter of 2004. Cash used in operations decreased 85.2% to $26,660 in the second quarter of 2005 from $312,964 in 2004, primarily caused by an increase in accounts payable and accrued expenses in 2005 and reductions in accounts receivable and inventory.

4

On November 12, 2002, we entered into a credit facility with KeyBank (NA). The facility provides us with a working capital line-of-credit of up to $150,000 and currently bears interest at 4.5%. The credit facility is secured by all of E Med’s assets and must be paid back in full on demand. We presently have drawn $149,098 on the facility.

On April 1, 2004, we entered into a loan agreement with a private investor in the amount of $750,000. The convertible promissory note bears interest at 7.5% payable quarterly with the principal due in five years and is secured by all of our assets. The note is convertible at the holder’s option into 1.5 million shares of our unregistered common stock, subject to adjustment for dilutive issuances. In connection with the loan, we also agreed to pay the lender a $3.00 royalty on each of the next 1.0 million NeedleZap® units sold, with maximum total royalty payments of $5.0 million. The loan agreement was amended effective December 31, 2004 to reduce the loan amount to $548,000. Payment of interest and royalties was deferred until January 1, 2006, provided we provide monthly sales reports to the lender when due. In addition, if we arrange an increase in bank financing, the lender agreed to subordinate its security interests to the secured interests of the banking institution up to a maximum of $500,000.

Our primary need for capital is to fund operations and the development of new products. Historically, our capital requirements have been met by a combination of loans from stockholders and other investors, our line of credit with Key Bank, and funds from operations. Now that our distributors have had sufficient ramp-up time, we expect increased sales to meet our capital needs. In addition, we are developing new NeedleZap® products to help generate additional revenues. However, sales may not be adequate to meet our cash needs, which would negatively impact our operations and development of new and ancillary products.

Off-Balance Sheet Arrangements

We do not have any material off-balance sheet arrangements.

Forward Looking Statements

Some of the statements that we make in this report, including statements about our confidence in E Med’s prospects and strategies and our expectations about E Med’s sales expansion, are forward-looking statements within the meaning of § 21E of the Securities Exchange Act. Some of these forward-looking statements can be identified by words like “believe,” “expect,” “will,” “should,” “intend,” “plan,” or similar terms; others can be determined by context. Statements contained in this report that are not historical facts are forward-looking statements. These statements are necessarily estimates reflecting our best judgment based upon current information, and involve a number of risks and uncertainties. Many factors could affect the accuracy of these forward-looking statements, causing our actual results to differ significantly from those anticipated in these statements. While it is impossible to identify all applicable risks and uncertainties, they include:

• our ability to execute our business plan;

• our ability to successfully market and sell our products;

• our financial resources are limited and we are dependant on increasing sales to generate cash for operations and pay our liabilities as they come due;

5

• our ability to gain and retain market share from our competitors, many of whom have greater financial and other resources than we do;

• the introduction of competing products by other companies;

• our ability to protect our patents, copyrights and other intellectual property rights;

• pressure on pricing from our competitors or customers;

• continued availability of components for our products and stability in the cost of these components;

• our reliance on subcontractors to manufacture our products;

• our reliance on independent distributors to market and sell our products;

• our ability to continue to comply with rules and regulations governing our products; and

• our ability to comply with SEC regulations and filing requirements applicable to us as a public company.

You should not place undue reliance on our forward-looking statements, which reflect our analysis only as of the date of this report. The risks and uncertainties listed above and elsewhere in this report and other documents that we file with the Securities and Exchange Commission, including our annual report on Form 10-KSB, quarterly reports on Form 10-QSB, and any current reports on Form 8-K, must be carefully considered by any investor or potential investor in E Med.

How to Learn More About E Med

We file annual, quarterly and special reports and other information with the SEC. Our SEC filings are available to the public over the internet at the SEC’s web site at SEC.gov. You may also read and copy any document we file at the SEC’s public reference room at 450 Fifth Street, N.W., Washington, D.C. 20549. You may obtain information on the operation of the SEC’s public reference room in Washington, D.C. by calling the SEC at 1-800-SEC-0330. To learn more about E Med you can also contact us directly at the address or phone number listed below or visit our website at NeedleZap.com.

E Med Future, Inc.

794 Morrison Road

Suite 911

Columbus, Ohio 43230

Phone: 877- 855-1319

Email: info@NeedleZap.com

Item 3. Controls and Procedures

D. Dane Donohue, our president and chief executive officer, and Donald Sullivan, our chief financial officer, have reviewed E Med’s disclosure controls and procedures as of June 30, 2005. Based upon their review, they believe that our disclosure controls and procedures are effective in ensuring that material information related to E Med is communicated to them by others within the company responsible for reporting this information.

6

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

We are currently involved in a lawsuit with TransGlobal Medical Sales & Services, LLC relating to a distribution and marketing agreement we entered into with TransGlobal in April 2004. The case is presently in the discovery phase. For additional information about the suit, please reference Item 3 of our December 31, 2004 Form 10-KSB that we filed with the SEC on April 15, 2005.

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

Not applicable.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Submission of Matters to a Vote of Security Holders

Not applicable.

Item 5. Other Information

Not applicable.

Item 6. Exhibits

31.1	CEO’s Rule 13a-14(a)/15d-14(a) Certification Pursuant to § 302 of the Sarbanes-Oxley Act of 2002
31.2	CFO’s Rule 13a-14(a)/15d-14(a) Certification Pursuant to § 302 of the Sarbanes-Oxley Act of 2002
32	Rule 13a-14(b)/15d-14(b) Certification Pursuant to § 906 of the Sarbanes-Oxley Act of 2002

7

SIGNATURES

In accordance with the requirements of the Exchange Act, E Med Future, Inc. caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	E MED FUTURE, INC.
Date: August 15, 2005	/s/ Donald Sullivan
	By Donald Sullivan, Chief Financial Officer

8

E MED FUTURE, INC.

Formerly Micro-Economics, Inc.

(A Development Stage Company)

CONSOLIDATED BALANCE SHEETS

	June 30, 2005			December 31, 2004
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash				$	2,810
Accounts receivable, net of allowance for doubtful account of $64,744 and $67,744, respectively	$	6,760			2,511
Inventory		486,622			488,153
Prepaid expenses		8,400			17,713
Current portion of prepaid compensation		440,000			440,000
Total Current Assets		941,782			951,187
PREPAID CONSULTING COMPENSATION		91,667			311,667
EQUIPMENT, net of depreciation of $72,363 and $60,932, respectively		156,356			167,787
PATENTS AND LICENSES
Patents, net of amortization $53,008 and $46,772, respectively		134,080			140,316
Total Assets	$	1,323,885		$	1,570,957
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Bank overdraft	$	2,417
Notes payable to bank		149,098		$	141,098
Current portion of long-term debt		1,828			1,828
Notes payable to related parties		39,025			25,000
Accounts payable		272,250			206,611
Accounts payable to related party		37,198			25,376
Accrued expenses		124,144			55,523
Customer deposits		100,000			100,000
Total Current Liabilities		725,960			555,436
LONG-TERM DEBT
Convertible promissory note payable		548,000			548,000
Note payable, less current portion		2,108			2,700
Total Long-Term Debt		550,108			550,700
STOCKHOLDERS’ EQUITY
Common stock, $0.001 par value, 50,000,000 shares authorized, 34,013,415 and 29,183,415 issued and outstanding at June 30, 2005 and December 31, 2004, respectively		34,013			29,183
Paid-in-capital		3,425,137			2,802,067
Deficit accumulated during development stage		(3,411,333	)		(2,366,429	)
Total Stockholders’ Equity		47,817			464,821
Total Liabilities and Stockholders’ Equity	$	1,323,885		$	1,570,957

See accompanying notes to consolidated financial statements.

F-1

E MED FUTURE, INC.

Formerly Micro-Economics, Inc.

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended June 30, 2005			Three Months Ended June 30, 2004			Six Months Ended June 30, 2005			Six Months Ended June 30, 2004			Period March 14, 1990 (Inception) to June 30, 2005
NET SALES	$	6,610		$	60,154		$	19,530		$	189,180		$	819,522
COSTS AND EXPENSES-
Cost of goods sold		2,541			124,991			16,998			200,720			558,228
Selling, general and administrative		174,367			75,837			376,401			246,601			1,770,113
Research and development								350						9,783
Stock based compensation								627,900						1,520,233
Impairment of goodwill														188,500
Depreciation and amortization		8,834			7,670			17,667			15,338			125,372
Total Costs and Expenses		185,742			208,498			1,039,316			462,659			4,172,229
NET OPERATING LOSS		(179,132	)		(148,344	)		(1,019,786	)		(273,479	)		(3,352,707	)
OTHER INCOME (EXPENSE)
Interest and other income														23
Interest expense		(12,688	)		(19,742	)		(25,118	)		(21,480	)		(58,649	)
Total Other Expenses		(12,688	)		(19,742	)		(25,118	)		(21,480	)		(58,626	)
NET LOSS	$	(191,820	)	$	(168,086	)	$	(1,044,904	)	$	(294,959	)	$	(3,411,333	)
NET LOSS PER COMMON SHARE -
(Basic and diluted)	$	(0.01	)	$	(0.01	)	$	(0.03	)	$	(0.01	)	$	(0.66	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING		34,013,415			26,134,000			33,639,824			26,134,000			5,199,760

See accompanying notes to consolidated financial statements.

F-2

E MED FUTURE, INC.

Formerly Micro-Economics, Inc.

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended June 30,						Period March 14, 1990 (Inception) to June 30, 2005
	2005			2004
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(1,044,904	)	$	(294,959	)	$	(3,411,333	)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization		17,667			15,338			125,372
Stock based compensation		627,900						1,520,233
Research and development costs								8,808
Start-up costs								19,177
Amortization of prepaid expense					14,025			30,600
Amortization of prepaid compensation		220,000						220,000
Impairment of goodwill								188,500
Changes in operating assets and liabilities:
Accounts receivable		(4,249	)		(66,324	)		(6,760	)
Inventory		1,531			(1,102	)		(335,607	)
Prepaid expenses		9,313			(4,074	)		(8,400	)
Accounts payable		65,639			(7,253	)		272,250
Accounts payable to related party		11,822			(57,447	)		37,198
Accrued expenses		68,621			88,832			124,144
Customer deposits								100,000
Net Cash Used in Operating Activities		(26,660	)		(312,964	)		(1,115,818	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment					(12,839	)		(94,806	)
Net Cash Used in Investing Activities					(12,839	)		(94,806	)
CASH FLOWS FROM FINANCING ACTIVITIES
Bank overdraft		2,417						2,417
Initial capitalization								1,666
Cash acquired in acquisition								200,000
Notes payable to bank		8,000						149,098
Notes payable		(592	)		5,115			3,936
Convertible promissory note payable					175,000			548,000
Notes payable to related party		14,025			(54,101	)		305,507
Net Cash Provided by Financing Activities		23,850			126,014			1,210,624
NET DECREASE IN CASH		(2,810	)		(199,789	)
CASH BEGINNING OF YEAR		2,810			204,443
CASH END OF PERIOD				$	4,654

See accompanying notes to consolidated financial statements.

F-3

E MED FUTURE, INC.

Formerly Micro-Economics, Inc.

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

	Six Months Ended June 30,				Period March 14, 1990 (Inception) to June 30, 2005
	2005		2004
Supplemental Disclosure of Cash Flows Information:
Interest paid	$	13,881	$	1,811	$	37,663
Supplemental Schedule of Non-Cash Operating and
Financing Activities:
NeedleZap Partnership Contribution of Assets to Company
Inventory					$	151,015
Equipment						133,912
Patent						187,089
Issuance of common stock for consulting services	$	627,900				1,520,233
Issuance of 1,250,000 shares valued at $0.3108 per share to acquire MSTI and allocation of purchase price to license						188,500
Issuance of common stock in payment of loan						266,484
Issuance of convertible debentures to acquire inventory			$	375,000		375,000

See accompanying notes to consolidated financial statements.

F-4

E MED FUTURE, INC.

Formerly Micro-Economics, Inc.

(A Development Stage Company)

NOTES TO CONDENSED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information. 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 adjustments (consisting of normal recurring accruals) considered necessary in order to make the financial statements not misleading have been included. Results for the six months ended June 30, 2005 are not necessarily indicative of the results that may be expected for the year ending December 31, 2005. For further information, refer to the financial statements and footnotes thereto included in the E Med Future, Inc., formerly Micro-Economics, Inc., annual report on Form 10-KSB for the year ended December 31, 2004.

NOTE 2 - ISSUANCE OF COMMON STOCK

During January 2005, the Company issued 4,830,000 shares of common stock, pursuant to Form S-8 at a value of $0.39 per share for consulting services. Stock based compensation was recorded in the amount of $1,883,700 for these services. In July 2005, the Company hired a qualified valuation consultant to perform a valuation of the company stock. Pursuant to this valuation, the shares of stock were revalued at $0.13 per share and the stock based compensation has been adjusted to $627,900.

NOTE 3 - GOING CONCERN

As indicated in the accompanying financial statements, the Company had net operating losses of $4,667,133 since inception and is considered a company in the development stage. Management’s plans include the raising of capital through short term financing to fund future operations and the generating of revenue through its business. Failure to raise capital, keep its products and manufacturing facilities in FDA compliance, and generate sales revenues could result in the Company having to curtail or cease operations. Additionally, even if the Company does raise sufficient capital to support its operating expenses and generate revenues, there can be no assurances that the revenue will be sufficient to enable it to develop business to a level where it will generate profits and cash flows from operations. These matters raise substantial doubt about the Company’s ability to continue as a going concern. However, the accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.

NOTE 4 - SUBSEQUENT EVENT

In July 2005, the Company terminated its license and distribution agreement, entered into September 2004, with ITD Development Solutions, Inc. (ITD), whereby the Company had granted ITD the exclusive right to manufacture, distribute and sell the NeedleZap unit in Pakistan and the United Arab Emirates. In connection with this agreement the Company entered into a two year consulting agreement with ITD president Patrick Downs for 2,000,000 shares of the Company’s common stock valued at $880,000. At June 30, 2005, the unamortized balance is $531,667. The Company is attempting to recover shares of its common stock representing the unamortized balance.

F-5