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EX-32.1 - CERTIFICATION - HEALTHMED SERVICES LTD | exhibit32-1.htm |
EX-31.1 - CERTIFICATION - HEALTHMED SERVICES LTD | exhibit31-1.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2009
or
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 333-152-439
HEALTHMED SERVICES LTD.
(Exact name of registrant as specified in its charter)
Nevada | N/A |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
1905 South Eastern Avenue, Las Vegas, Nevada | 89104 |
(Address of principal executive offices) | (Zip Code) |
480.229.3668
(Registrants telephone number,
including area code)
N/A
(Former name, former address
and former fiscal year, if changed since last report)
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.
[X] YES [ ] NO
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer,
or a small
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
[X] YES [ ] NO
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant has filed all documents and reports
required to be filed by Sections 12, 13 or 15(d) of the
Exchange Act after
the distribution of securities under a plan confirmed by a court.
[ ] YES [ ] NO
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the
issuers classes of common stock, as of the latest practicable
date.
6,070,000 common shares issued and outstanding as of November 12, 2009
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
These financial statements have been prepared by Healthmed Services Ltd. without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted in accordance with such SEC rules and regulations. In the opinion of management, the accompanying statements contain all adjustments necessary to present fairly the financial position of our company as of September 30, 2009, and our results of operations, and our cash flows for the nine month period ended September 30, 2009.
The results for these interim periods are not necessarily indicative of the results for the entire year. The accompanying financial statements should be read in conjunction with the financial statements and the notes thereto filed as a part of our companys Form 10-K.
HEALTHMED SERVICES LTD
(Development Stage Company)
Balance Sheets
September | December | |||||
30, | 31, | |||||
2009 | 2008 | |||||
(Unaudited) | (Audited) | |||||
ASSETS | ||||||
Current Assets | ||||||
Cash | $ | 1,982 | $ | 2,906 | ||
Total Assets | $ | 1,982 | $ | 2,906 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Liabilities | ||||||
Accounts Payable | $ | - | $ | - | ||
Total Liabilities | - | - | ||||
Stockholders' Equity | ||||||
Common Stock, authorized | ||||||
25,000,000 shares, par value | ||||||
$0.001, issued and outstanding on | ||||||
June 30, 2009 and December 31, | ||||||
2008 is 6,070,000 and 6,070,000 | ||||||
respectively | 6,072 | 6,072 | ||||
Paid in Capital | 178,778 | 163,778 | ||||
Subscriptions Receivable | - | - | ||||
Deficit Accumulated During the | ||||||
Development Stage | (182,868 | ) | (166,944 | ) | ||
Total Stockholders' Equity | 1,982 | 2,906 | ||||
Total Liabilities and Stockholders' Equity | $ | 1,982 | $ | 2,906 |
The accompanying notes are an integral part of these statements
F-1
HEALTHMED SERVICES LTD
(Development Stage Company)
Statements of Operations
(Unaudited)
September 14, | |||||||||||||||
2000 | |||||||||||||||
Nine Months Ended | Three Months Ended | (Inception) | |||||||||||||
September 30, | September 30, | to Sept. 30, | |||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | |||||||||||
Revenue | $ | - | $ | - | $ | - | $ | - | $ | - | |||||
Expenses | |||||||||||||||
General and Administrative | 6,344 | 3,642 | 683 | 2,231 | 35,361 | ||||||||||
Professional Fees | 9,580 | 16,800 | 2,680 | 3,150 | 50,480 | ||||||||||
Consulting Fees | - | 8,427 | - | 7,177 | 97,027 | ||||||||||
Total Expenses | 15,924 | 28,869 | 3,363 | 12,558 | 182,868 | ||||||||||
Net (Loss) Before Taxes | (15,924 | ) | (28,869 | ) | (3,363 | ) | (12,558 | ) | (182,868 | ) | |||||
Provision for Income Tax | - | - | - | - | - | ||||||||||
Net (Loss) | $ | (15,924 | ) | $ | (28,869 | ) | $ | (3,363 | ) | $ | (12,558 | ) | $ | (182,868 | ) |
Basic and Diluted | |||||||||||||||
(Loss) per Share | a | a | a | a | |||||||||||
Weighted Average | |||||||||||||||
Number of Shares | 6,070,000 | 6,070,000 | 6,070,000 | 6,070,000 |
a = Less than ($0.01) per share
The accompanying notes are an integral part of these notes
F-2
HEALTHMED SERVICES LTD
(Development Stage Company)
Statements of Stockholders Equity
(Unaudited)
September 14, 2000 Inception to September 30, 2009
Deficit | ||||||||||||||||||||
Accumulated | ||||||||||||||||||||
During the | ||||||||||||||||||||
Price | Common Stock | Paid in | Subscriptions | Development | Total | |||||||||||||||
Per Share | Shares | Amount | Capital | Receivable | Stage | Equity | ||||||||||||||
Balance, September 14, 2000 | - | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||
Contributed Capital | 100 | |||||||||||||||||||
Net (Loss) | (1,411 | ) | (1,411 | ) | ||||||||||||||||
Balance, December 31, 2000 | - | - | 100 | - | (1,411 | ) | (1,411 | ) | ||||||||||||
Net (Loss) | (200 | ) | (200 | ) | ||||||||||||||||
Balance, December 31, 2001 | - | - | 100 | - | (1,611 | ) | (1,611 | ) | ||||||||||||
Net (Loss) | (400 | ) | (400 | ) | ||||||||||||||||
Balance, December 31, 2002 | - | - | 100 | - | (2,011 | ) | (1,911 | ) | ||||||||||||
Common Shares issued to | ||||||||||||||||||||
founders for cash April 20, 2003 | $0.002 | 3,000,000 | 3,000 | 4,000 | 7,000 | |||||||||||||||
Common Shares issued for | ||||||||||||||||||||
cash in private placement | ||||||||||||||||||||
October 1, 2003 | $0.017 | 1,500,000 | 1,500 | 23,500 | 25,000 | |||||||||||||||
Net (Loss) | (29,936 | ) | (29,936 | ) | ||||||||||||||||
Balance, December 31, 2003 | 4,500,000 | 4,500 | 27,600 | - | (31,947 | ) | 153 | |||||||||||||
Common Shares issued for | ||||||||||||||||||||
cash in private placement | ||||||||||||||||||||
on November 3, 2004 | $0.20 | 22,500 | 23 | 4,477 | 4,500 | |||||||||||||||
on November 4, 2004 | $0.20 | 22,500 | 23 | 4,477 | 4,500 | |||||||||||||||
on December 27, 2004 | $0.20 | 125,000 | 125 | 24,875 | 25,000 | |||||||||||||||
Common Shares issued for service | $0.20 | 12,500 | 13 | 2,487 | 2,500 | |||||||||||||||
Contributed Capital | 6,250 | 6,250 |
F-3
HEALTHMED SERVICES LTD
(Development Stage Company)
Statements of Stockholders Equity
(Unaudited)
September 14, 2000 Inception to September 30, 2009
Deficit | |||||||||||||||||||||
Accumulated | |||||||||||||||||||||
During the | |||||||||||||||||||||
Price | Common Stock | Paid in | Subscriptions | Development | Total | ||||||||||||||||
Per Share | Shares | Amount | Capital | Receivable | Stage | Equity | |||||||||||||||
Net (Loss) | (22,571 | ) | (22,571 | ) | |||||||||||||||||
Balance, December 31, 2004 | 4,682,500 | 4,684 | 70,166 | - | (54,518 | ) | 20,332 | ||||||||||||||
Common Shares Subscribed | |||||||||||||||||||||
in 504 offering | $ | 0.04 | 1,088,500 | 1,089 | 42,451 | (43,540 | ) | - | |||||||||||||
Contributed Capital | 25,000 | 25,000 | |||||||||||||||||||
Net (Loss) | (39,199 | ) | (39,199 | ) | |||||||||||||||||
Balance, December 31, 2005 | 5,771,000 | 5,773 | 137,617 | (43,540 | ) | (93,717 | ) | 6,133 | |||||||||||||
Common Shares Issued and Cash | |||||||||||||||||||||
received in 504 offering net of | |||||||||||||||||||||
$5,500 offering costs | $ | 0.04 | 299,000 | 299 | 6,161 | 43,540 | 50,000 | ||||||||||||||
Net (Loss) | (29,095 | ) | (29,095 | ) | |||||||||||||||||
Balance, December 31, 2006 | 6,070,000 | 6,072 | 143,778 | - | (122,812 | ) | 27,038 | ||||||||||||||
Net (Loss) | (10,518 | ) | (10,518 | ) | |||||||||||||||||
Balance, December 31, 2007 | 6,070,000 | 6,072 | 143,778 | - | (133,330 | ) | 16,520 | ||||||||||||||
Contributed Capital | 20,000 | 20,000 | |||||||||||||||||||
Net (Loss) | (33,614 | ) | (33,614 | ) | |||||||||||||||||
Balance, December 31, 2008 | 6,070,000 | 6,072 | 163,778 | - | (166,944 | ) | 2,906 | ||||||||||||||
Contributed Capital | 15,000 | 15,000 | |||||||||||||||||||
Net (Loss) | (15,924 | ) | (15,924 | ) | |||||||||||||||||
Balance, September 30, 2009 | 6,070,000 | $ | 6,072 | $ | 178,778 | $ | - | $ | (182,868 | ) | $ | 1,982 |
On October 2, 2003 the Company executed a 3 to 1 forward stock split and on October 15, 2005 executed a 1:2 reverse stock split. These splits have been retroactively applied to this schedule including the impact on price per share.
The accompanying notes are an integral part of these statements
F-4
HEALTHMED SERVICES LTD
Statements of Cash Flows
(Unaudited)
September 14, | |||||||||||||||
2000 | |||||||||||||||
Nine Months Ended | Three Months Ended | (Inception) | |||||||||||||
September 30, | September 30, | to Sept 30, | |||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | |||||||||||
Operating Activities | |||||||||||||||
Net (Loss) | $ | (15,924 | ) | $ | (28,869 | ) | $ | (3,363 | ) | $ | (12,558 | ) | $ | (182,868 | ) |
Increase in Accounts Payable | |||||||||||||||
Decrease in Accounts Payable | - | - | - | - | - | ||||||||||
Decrease in Loans Payable | - | - | - | - | - | ||||||||||
Net Cash (Used) by Operating Activities | (15,924 | ) | (28,869 | ) | (3,363 | ) | (12,558 | ) | (182,868 | ) | |||||
Financing Activities | |||||||||||||||
Proceeds from contributed Capital | 15,000 | 10,000 | - | 10,000 | 60,000 | ||||||||||
Proceeds from sale of Common Stock | - | - | - | - | 124,850 | ||||||||||
Cash Provided by Financing Activities | 15,000 | 20,000 | - | 10,000 | 184,850 | ||||||||||
Net Increase in Cash | (924 | ) | (8,869 | ) | (3,363 | ) | (2,558 | ) | 1,982 | ||||||
Cash, Beginning of Period | 2,906 | 16,520 | 5,345 | 10,209 | - | ||||||||||
Cash, End of Period | $ | 1,982 | $ | 7,651 | $ | 1,982 | $ | 7,651 | $ | 1,982 | |||||
Supplemental Information: | |||||||||||||||
Interest Paid | $ | - | $ | - | $ | - | $ | - | $ | - | |||||
Income Taxes Paid | $ | - | $ | - | $ | - | $ | - | $ | - |
The accompanying notes are an integral part of these statements
F-5
Healthmed Services, LTD.
(A Development Stage
Company)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
(September 30,
2009 and December 31, 2008)
NOTE 1. GENERAL ORGANIZATION AND BUSINESS
Healthmed Services, LTD (The Company) was incorporated on September 14, 2000 as Telemax Communications, Inc, under the laws of the State of Nevada. On July 14, 2003 the Company changed its name to Healthmed Services. The Company has no operations and in accordance with Financial Accounting Standards Board Accounting Standards Codification (FASB ASC) is considered to be in the development stage.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES
Accounting Basis
These financial statements are prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America.
Cash and Cash Equivalents
For the purpose of the statement of cash flows, cash equivalents include all highly liquid investments with maturity of three months or less.
Cash Balances
The Company maintains its cash in institutions insured by the Federal Deposit Insurance Corporation (FDIC). This government corporation insured balances up to $100,000 through October 13, 2008. As of October 14, 2008 all non-interest bearing transaction deposit accounts at an FDIC-insured institution, including all personal and business checking deposit accounts that do not earn interest, are fully insured for the entire amount in the deposit account. This unlimited insurance coverage is temporary and will remain in effect for participating institutions until December 31, 2009.
All other deposit accounts at FDIC-insured institutions are insured up to at least $250,000 per depositor until December 31, 2009. On January 1, 2010, FDIC deposit insurance for all deposit accounts, except for certain retirement accounts, will return to at least $100,000 per depositor. Insurance coverage for certain retirement accounts, which include all IRA deposit accounts, will remain at $250,000 per depositor.
Earnings (Loss) per Share
The basic earnings (loss) per share are calculated by dividing the Companys net income available to common shareholders by the weighted average number of common shares outstanding during the year. The diluted earnings (loss) per share are calculated by dividing the Companys net income (loss) available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted as of the first of the year for any potentially dilutive debt or equity. There are no diluted shares outstanding.
Advertising Costs
The Companys policy regarding advertising is to expense advertising when incurred. The Company had not incurred any advertising expense as of December 31, 2008.
F-6
Dividends
The Company has not adopted any policy regarding payment of dividends. No dividends have been paid during the period shown.
Income Taxes
The Company provides for income taxes as required by the Income Taxes topic of the FASB ASC requires the use of an asset and liability approach in accounting for income taxes.
The Income Taxes topic 740 of the FASB ASC requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. No provision for income taxes is included in the statement due to its immaterial amount, net of the allowance account, based on the likelihood of the Company to utilize the loss carry-forward
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Net Income Per Common Share
Net income (loss) per common share is computed based on the weighted average number of common shares outstanding and common stock equivalents, if not anti-dilutive. The Company has not issued any potentially dilutive common shares.
Revenue and Cost Recognition
The Company has no current source of revenue; therefore the Company has not yet adopted any policy regarding the recognition of revenue or cost.
F-7
NOTE 3. INCOME TAXES:
The Company provides for income taxes under Income Taxes topic 740 of the FASB ASC which requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect currently.
The Income Taxes topic 740 of the FASB ASC requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. In the Companys opinion, it is uncertain whether they will generate sufficient taxable income in the future to fully utilize the net deferred tax asset. Accordingly, a valuation allowance equal to the deferred tax asset has been recorded. The total deferred tax asset is $40,231 which is calculated by multiplying a 22% estimated tax rate by the cumulative NOL of $182,868. The total valuation allowance is a comparable $40,231. Details for the Period ended September 30, 2009 and the Year ended December 31, 2008 follow:
September | December | |||||
30, | 31, | |||||
2009 | 2008 | |||||
Deferred Tax Asset | $ | 3,503 | $ | 7,395 | ||
Valuation Allowance | (3,503 | ) | (7,395 | ) | ||
Current Taxes Payable | - | - | ||||
Income Tax Expense | $ | - | $ | - |
Below is a chart showing the estimated corporate federal net operating loss (NOL) and the year in which it will expire.
Year | Amount | Expiration | |||||||
2000 | $ | 1,805 | 2020 | ||||||
2001 | 92 | 2021 | |||||||
2002 | 114 | 2022 | |||||||
2003 | 29,936 | 2023 | |||||||
2004 | 22,571 | 2024 | |||||||
2005 | 39,199 | 2025 | |||||||
2006 | 29,095 | 2026 | |||||||
2007 | 10,518 | 2027 | |||||||
2008 | 33,614 | 2028 | |||||||
YTD 2009 | 8,053 | 2029 | |||||||
Total | $ | 174,997 |
The Company has filed no income tax returns since inception.
F-8
NOTE 4. STOCKHOLDERS EQUITY
Common Stock
On December 5, 2002 the company received $100 contributed capital from its founder.
On April 20, 2003, the Company issued 2,000,000 pre-split shares of its $0.001 par value common stock for $7,000 cash to the founders of the Company.
On September 22, 2003, the Company completed an unregistered private offering under the Securities Act of 1933, as amended. Relying upon the exemption from registration afforded by sections 4(2) and 3(b) and regulation D promulgated there under. The Company sold 1,000,000 shares of its $0.001 par value common stock at a price of $0.025 per share for $25,000 cash.
On October 1, 2003, the Company executed a 3 to 1 forward stock split. The Outstanding shares increased from 3,000,000 shares to 9,000,000 shares. The statement of stockholders equity retroactively reflects the impact of this split.
On November 3, November 4 and December 27, 2004 the company issued 45,000 shares, 45,000 shares and 250,000 shares respectively of its $0.001 par value common stock at $0.10 per share for $34,000 cash. These shares were also issued in an unregistered private offering as described above.
On November 3, 2004 the company issued 25,000 shares for consulting services valued at $2,500. During the year 2004 the Company also received $6,250 cash in contributed capital from its founder. On March 11, 2005 the Company received $25,000 cash in contributed capital from its founder.
On October 15, 2005 the company executed a 1:2 reverse stock split leaving a balance of 4,682,500 shares outstanding prior to the 504 offering. The Statement of Stockholders Equity retroactively reflects the impact of this split.
During November and December 2005 the company received subscriptions for 1,088,500 common shares of stock for $43,540 subscriptions receivable in a Regulation 504 offering.
On January 25, 2006 the Company issued an additional 299,000 common shares at $0.04 per share in a Regulation 504 offering. The Company received $50,000 cash (net of $5,500 offering costs) that included receipt for payment of the $43,540 subscriptions receivable and an additional $6,460.
On June 16, 2008 the Company received $10,000 cash in contributed capital from its founder.
On August 21, 2008 the Company received $10,000 cash in contributed capital from its founder.
On February 18, 2009 and March 16, 2009 the Company received $5,000 and $10,000 cash in contributed capital from its founder.
NOTE 5. RELATED PARTY TRANSACTIONS
The officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities that become available. They may face a conflict in selecting between the Company and other business interests. The Company has not formulated a policy for the resolution of such conflicts.
F-9
NOTE 6. GOING CONCERN
The accompanying financial statements have been prepared assuming that the company will continue as a going concern. As discussed in the notes to the financial statements, the Company has no established source of revenue. This raises substantial doubt about the Companys ability to continue as a going concern. Without realization of additional capital, it would be unlikely for the Company to continue as a going concern. The financial statements do not include any adjustments that might result from this uncertainty.
The Companys activities to date have been supported by equity financing. It has sustained losses in all previous reporting periods with an inception to date loss of $182,868. Management continues to seek funding from its shareholders and other qualified investors to pursue its business plan. In the alternative, the Company may be amenable to a sale, merger or other acquisition in the event such transaction is deemed by management to be in the best interests of the shareholders.
NOTE 7. RECENT ACCOUNTING PRONOUNCEMENTS THAT AFFECT THE COMPANY
The adoption of these accounting standards had the following impact on the Companys statements of income and financial condition:
-
FASB ASC Topic 855, Subsequent Events. In May 2009, the FASB issued FASB ASC Topic 855, which establish general standards of accounting and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. In particular, this Statement sets forth : (i) the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, (ii) the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements, (iii) the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. This FASB ASC Topic should be applied to the accounting and disclosure of subsequent events. This FASB ASC Topic does not apply to subsequent events or transactions that are within the scope of other applicable accounting standards that provide different guidance on the accounting treatment for subsequent events or transactions. This FASB ASC Topic was effective for interim and annual periods ending after June 15, 2009, which was June 30, 2009 for the Corporation. The adoption of this Topic did not have a material impact on the Companys financial statements and disclosures.
-
FASB ASC Topic 105, The FASB Accounting Standard Codification and the Hierarchy of Generally Accepted Accounting Principles. In June 2009, the FASB issued FASB ASC Topic 105, which became the source of authoritative GAAP recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. On the effective date of this FASB ASC Topic, the Codification will supersede all then-existing non-SEC accounting and reporting standards. All other non-SEC accounting literature not included in the Codification will become non-authoritative. This FASB ASC Topic identify the sources of accounting principles and the framework for selecting the principles used in preparing the financial statements of nongovernmental entities that are presented in conformity with GAAP. Also, arranged these sources of GAAP in a hierarchy for users to apply accordingly. In other words, the GAAP hierarchy will be modified to include only two levels of GAAP: authoritative and non-authoritative. This FASB ASC Topic is effective for financial statements issued for interim and annual periods ending after September 15, 2009. The adoption of this topic did not have a material impact on the Companys disclosure of the financial statements
-
FASB ASC Topic 320, Recognition and Presentation of Other-Than-Temporary Impairments. In April 2009, the FASB issued FASB ASC Topic 320 amends the other-than-temporary impairment guidance in GAAP for debt securities to make the guidance more operational and to improve the presentation and disclosure of other-than-temporary impairments on debt and equity securities in the financial statements. This FASB ASC Topic does not amend existing recognition and measurement guidance related to other-than-temporary impairments of equity securities. The FASB ASC Topic
shall be effective for interim and annual reporting periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. Earlier adoption for periods ending before March 15, 2009, is not permitted. This FASB ASC Topic does not require disclosures for earlier periods presented for comparative purposes at initial adoption. In periods after initial adoption, this FASB ASC Topic requires comparative disclosures only for periods ending after initial adoption. The adoption of this Topic did not have a material impact on the Companys financial statements and disclosures.
The Company is evaluating the impact that the following recently issued accounting pronouncements may have on its financial statements and disclosures.
-
FASB ASC Topic 860, Accounting for Transfer of Financial Asset., In June 2009, the FASB issued additional guidance under FASB ASC Topic 860, Accounting for Transfer and Servicing of Financial Assets and Extinguishment of Liabilities", which improves the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferors continuing involvement, if any, in transferred financial assets. The Board undertook this project to address (i) practices that have developed since the issuance of FASB ASC Topic 860, that are not consistent with the original intent and key requirements of that statement and (ii) concerns of financial statement users that many of the financial assets (and related obligations) that have been derecognized should continue to be reported in the financial statements of transferors. This additional guidance requires that a transferor recognize and initially measure at fair value all assets obtained (including a transferors beneficial interest) and liabilities incurred as a result of a transfer of financial assets accounted for as a sale. Enhanced disclosures are required to provide financial statement users with greater transparency about transfers of financial assets and a transferors continuing involvement with transferred financial assets. This additional guidance must be applied as of the beginning of each reporting entitys first annual reporting period that begins after November 15, 2009, for interim periods within that first annual reporting period and for interim and annual reporting periods thereafter. Earlier application is prohibited. This additional guidance must be applied to transfers occurring on or after the effective date.
-
FASB ASC Topic 810, Variables Interest Entities. In June 2009, the FASB issued FASB ASC Topic 810, which requires an enterprise to perform an analysis to determine whether the enterprises variable interest or interests give it a controlling financial interest in a variable interest entity. This analysis identifies the primary beneficiary of a variable interest entity as the enterprise that has both of the following characteristics: (i)The power to direct the activities of a variable interest entity that most significantly impact the entitys economic performance and (ii)The obligation to absorb losses of the entity that could potentially be significant to the variable interest entity or the right to receive benefits from the entity that could potentially be significant to the variable interest entity. Additionally, an enterprise is required to assess whether it has an implicit financial responsibility to ensure that a variable interest entity operates as designed when determining whether it has the power to direct the activities of the variable interest entity that most significantly impact the entitys economic performance. This FASB Topic requires ongoing reassessments of whether an enterprise is the primary beneficiary of a variable interest entity and eliminate the quantitative approach previously required for determining the primary beneficiary of a variable interest entity, which was based on determining which enterprise absorbs the majority of the entitys expected losses, receives a majority of the entitys expected residual returns, or both. This FASB ASC Topic shall be effective as of the beginning of each reporting entitys first annual reporting period that begins after November 15, 2009, for interim periods within that first annual reporting period, and for interim and annual reporting periods thereafter. Earlier application is prohibited.
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FASB ASC Topic 820, Fair Value measurement and Disclosures, an Accounting Standard Update. In September 2009, the FASB issued this Update to amendments to Subtopic 82010, Fair Value Measurements and Disclosures. Overall, for the fair value measurement of investments in certain entities that calculates net asset value per share (or its equivalent). The amendments in this Update
-
permit, as a practical expedient, a reporting entity to measure the fair value
of an investment that is within the scope of the amendments in this Update on
the basis of the net asset value per share of the investment (or its equivalent)
if the net asset value of the investment (or its equivalent) is calculated in
a manner consistent with the measurement principles of Topic 946 as of the reporting
entitys measurement date, including measurement of all or substantially
all of the underlying investments of the investee in accordance with Topic 820.
The amendments in this Update also require disclosures by major category of
investment about the attributes of investments within the scope of the amendments
in this Update, such as the nature of any restrictions on the investors
ability to redeem its investments at the measurement date, any unfunded commitments
(for example, a contractual commitment by the investor to invest a specified
amount of additional capital at a future date to fund investments that will
be made by the investee), and the investment strategies of the investees. The
major category of investment is required to be determined on the basis of the
nature and risks of the investment in a manner consistent with the guidance
for major security types in GAAP on investments in debt and equity securities
in paragraph 320-10-50-lB. The disclosures are required for all investments
within the scope of the amendments in this Update regardless of whether the
fair value of the investment is measured using the practical expedient. The
amendments in this Update apply to all reporting entities that hold an investment
that is required or permitted to be measured or disclosed at fair value on a
recurring or non recurring basis and, as of the reporting entitys measurement
date, if the investment meets certain criteria The amendments in this Update
are effective for the interim and annual periods ending after December 15, 2009.
Early application is permitted in financial statements for earlier interim and
annual periods that have not been issued.
- FASB ASC Topic 740, Income Taxes, an Accounting Standard Update. In September 2009, the FASB issued this Update to address the need for additional implementation guidance on accounting for uncertainty in income taxes. The guidance answers the following questions: (i) Is the income tax paid by the entity attributable to the entity or its owners? (ii) What constitutes a tax position for a pass-through entity or a tax-exempt not-for-profit entity? (iii) How should accounting for uncertainty in income taxes be applied when a group of related entities comprise both taxable and nontaxable entities? In addition, this Updated decided to eliminate the disclosures required by paragraph 740-10- 50-15(a) through (b) for nonpublic entities. The implementation guidance will apply to financial statements of nongovernmental entities that are presented in conformity with GAAP. The disclosure amendments will apply only to nonpublic entities as defined in Section 740-10-20. For entities that are currently applying the standards for accounting for uncertainty in income taxes, the guidance and disclosure amendments are effective for financial statements issued for interim and annual periods ending after September 15, 2009.
NOTE 8 SUBSEQUENT EVENTS REVIEW
The Company has evaluated all subsequent events through November 12, 2009, the date this Quarterly Report on Form 10-Q was filed with the SEC. No recognized or unrecognized events require disclosure as significant subsequent events.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
FORWARD-LOOKING STATEMENTS
This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.
Our unaudited financial statements are stated in United States dollars and are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.
In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars. All references to "common stock" refer to the common shares in our capital stock.
As used in this quarterly report, the terms "we", "us", "our", "our company" and Healthmed mean Healthmed Services Ltd., unless otherwise stated.
General Overview
We were incorporated in the State of Nevada on September 14, 2000 under the name "Telemax Communications, Inc.. On July 14, 2003, we changed our name to "Healthmed Services, Ltd.". We are a development stage company and have not yet generated or realized any revenues from our business operations. We have never been bankrupt, been under the control of a receiver or similar proceedings with respect to ourselves.
Our offices are currently located at 1905 South Eastern Avenue, Las Vegas, Nevada 89104. Our telephone number is 480.229.3668.
Our primary business objective is to use communications technology to provide individuals, companies and health-provider organizations with round-the-clock telephone and web-based access to medical advice, information, products and services. We intend to provide outsourced services to clients via our internet-based information and medical advice website and our proposed HealthMed North American call center, and will support our business partners around the globe by supplying the tools, technology and know-how required for the successful operation of a Health Information Center.
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Results of Operations
Three month Summary ending September 30, 2009 and 2008
Three Months Ended | |||||||
September 30 | |||||||
2009 | 2008 | ||||||
Revenue | $ | Nil | $ | Nil | |||
Expenses | $ | 3,363 | $ | 12,558 | |||
Net (Loss) | $ | (3,363 | ) | $ | (12,558 | ) |
Expenses
Our total expenses for the three month periods ended September 30, 2009 and September 30, 2008 are outlined in the table below:
Three Months Ended | |||||||
September 30 | |||||||
2009 | 2008 | ||||||
General and administrative | $ | 683 | $ | 2,231 | |||
Professional fees | $ | 2,680 | $ | 3,150 | |||
Consulting fees | $ | Nil | $ | 7,177 |
Expenses for the three months ended September 30, 2009, decreased by 73.22% as compared to the comparative period in 2008 primarily as a result of a decrease in our professional fees.
Results of Operations
Nine month Summary ending September 30, 2009 and 2008
Nine Months Ended | |||||||
September 30 | |||||||
2009 | 2008 | ||||||
Revenue | $ | Nil | $ | Nil | |||
Expenses | $ | 15,924 | $ | 28,869 | |||
Net (Loss) | $ | (15,924 | ) | $ | (28,869 | ) |
Expenses
Our total expenses for the nine month periods ended September 30, 2009 and September 30, 2008 are outlined in the table below:
Nine Months Ended | |||||||
September 30 | |||||||
2009 | 2008 | ||||||
General and administrative | $ | 6,344 | $ | 3,642 | |||
Professional fees | $ | 9,580 | $ | 16,800 | |||
Consulting fees | $ | Nil | $ | 8,427 |
Expenses for the nine months ended September 30, 2009, decreased by 44.84% as compared to the comparative period in 2008 primarily as a result of a decrease in our professional fees.
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Revenue
We have not earned any revenues since our inception and we do not anticipate earning revenues in the upcoming quarter.
Equity Compensation
We currently do not have any stock option or equity compensation plans or arrangements.
Liquidity and Financial Condition
Working Capital
At | At | ||||||||
September 30, | December 31, | Increase/ | |||||||
2009 | 2008 | Decrease | |||||||
Current Assets | $ | 1,982 | $ | 2,906 | $ | (924 | ) | ||
Current Liabilities | $ | 0 | $ | 0 | $ | - | |||
Working Capital (deficit) | $ | 1,982 | $ | 2,906 | $ | (924 | ) |
Cash Flows | ||||||
Nine months Ended | Nine months Ended | |||||
September 30, | September 30, | |||||
2009 | 2008 | |||||
Net Cash (Used) by Operating Activities | $ | (15,924 | ) | $ | (28,869 | ) |
Net Cash Provided by Investing Activities | $ | 0 | $ | 0 | ||
Net Cash Provided by Financing Activities | $ | 15,000 | $ | 20,000 | ||
Net Increase in Cash During the Period | $ | (924 | ) | $ | (8,869 | ) |
We estimate that we will spend approximately $5,000 on general and administrative expenses, $15,000 on website development and $5,000 on travel over the next 12 months.
We will require additional funds to fund our budgeted expenses over the next 12 months. These funds may be raised through equity financing, debt financing, or other sources, which may result in further dilution in the equity ownership of our shares. There is still no assurance that we will be able to maintain operations at a level sufficient for an investor to obtain a return on his investment in our common stock. Further, we may continue to be unprofitable. We need to raise additional funds in the immediate future in order to proceed with our budgeted expenses.
Specifically, we estimate our operating expenses and working capital requirements for the next 12 months to be as follows:
Estimated Funding Required During the Next 12 Months | |
Expense | Amount |
General and administrative | $5,000 |
Website Development | $15,000 |
Travel | $5,000 |
Total | $25,000 |
Cash on hand, September 30, 2009, estimated |
$1,982 |
We are not aware of any known trends, demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in our liquidity increasing or decreasing in any material way.
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Future Financings
We will require additional financing in order to enable us to proceed with our plan of operations, as discussed above, including approximately $25,000 over the next 12 months to pay for our ongoing expenses. These expenses include general and administrative, website and travel expenses. These cash requirements are in excess of our current cash and working capital resources. Accordingly, we will require additional financing in order to continue operations and to repay our liabilities. There is no assurance that any party will advance additional funds to us in order to enable us to sustain our plan of operations or to repay our liabilities.
We anticipate continuing to rely on equity sales of our common stock in order to continue to fund our business operations. Issuances of additional shares will result in dilution to our existing stockholders. There is no assurance that we will achieve any additional sales of our equity securities or arrange for debt or other financing to fund our planned business activities.
We presently do not have any arrangements for additional financing for the expansion of our exploration operations, and no potential lines of credit or sources of financing are currently available for the purpose of proceeding with our plan of operations.
Contractual Obligations
As a smaller reporting company, we are not required to provide tabular disclosure obligations.
Going Concern
The accompanying financial statements have been prepared assuming that the company will continue as a going concern. As discussed in the notes to the financial statements, the Company has no established source of revenue. This raises substantial doubt about the Companys ability to continue as a going concern. Without realization of additional capital, it would be unlikely for the Company to continue as a going concern. The financial statements do not include any adjustments that might result from this uncertainty.
The Companys activities to date have been supported by equity financing. It has sustained losses in all previous reporting periods with an inception to date loss of $182,868. Management continues to seek funding from its shareholders and other qualified investors to pursue its business plan. In the alternative, the Company may be amenable to a sale, merger or other acquisition in the event such transaction is deemed by management to be in the best interests of the shareholders.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.
Critical Accounting Policies
The discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with the accounting principles generally accepted in the United States of America. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by managements application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our financial statements is critical to an understanding of our financial statements.
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Cash and Cash Equivalents
For the purpose of the statement of cash flows, cash equivalents include all highly liquid investments with maturity of three months or less.
Cash Balances
The Company maintains its cash in institutions insured by the Federal Deposit Insurance Corporation (FDIC). This government corporation insured balances up to $100,000 through October 13, 2008. As of October 14, 2008 all non-interest bearing transaction deposit accounts at an FDIC-insured institution, including all personal and business checking deposit accounts that do not earn interest, are fully insured for the entire amount in the deposit account. This unlimited insurance coverage is temporary and will remain in effect for participating institutions until December 31, 2009.
All other deposit accounts at FDIC-insured institutions are insured up to at least $250,000 per depositor until December 31, 2009. On January 1, 2010, FDIC deposit insurance for all deposit accounts, except for certain retirement accounts, will return to at least $100,000 per depositor. Insurance coverage for certain retirement accounts, which include all IRA deposit accounts, will remain at $250,000 per depositor.
Earnings (Loss) per Share
The basic earnings (loss) per share are calculated by dividing the Companys net income available to common shareholders by the weighted average number of common shares outstanding during the year. The diluted earnings (loss) per share are calculated by dividing the Companys net income (loss) available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted as of the first of the year for any potentially dilutive debt or equity. There are no diluted shares outstanding.
Advertising Costs
The Companys policy regarding advertising is to expense advertising when incurred. The Company had not incurred any advertising expense as of December 31, 2008.
Dividends
The Company has not adopted any policy regarding payment of dividends. No dividends have been paid during the period shown.
Income Taxes
The Company provides for income taxes as required by the Income Taxes topic of the FASB ASC requires the use of an asset and liability approach in accounting for income taxes.
The Income Taxes topic 740 of the FASB ASC requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. No provision for income taxes is included in the statement due to its immaterial amount, net of the allowance account, based on the likelihood of the Company to utilize the loss carry-forward
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
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Net Income Per Common Share
Net income (loss) per common share is computed based on the weighted average number of common shares outstanding and common stock equivalents, if not anti-dilutive. The Company has not issued any potentially dilutive common shares.
Revenue and Cost Recognition
The Company has no current source of revenue; therefore the Company has not yet adopted any policy regarding the recognition of revenue or cost.
Recent Accounting Pronouncements
The adoption of these accounting standards had the following impact on the Companys statements of income and financial condition:
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FASB ASC Topic 855, Subsequent Events. In May 2009, the FASB issued FASB ASC Topic 855, which establish general standards of accounting and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. In particular, this Statement sets forth : (i) the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, (ii) the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements, (iii) the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. This FASB ASC Topic should be applied to the accounting and disclosure of subsequent events. This FASB ASC Topic does not apply to subsequent events or transactions that are within the scope of other applicable accounting standards that provide different guidance on the accounting treatment for subsequent events or transactions. This FASB ASC Topic was effective for interim and annual periods ending after June 15, 2009, which was June 30, 2009 for the Corporation. The adoption of this Topic did not have a material impact on the Companys financial statements and disclosures.
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FASB ASC Topic 105, The FASB Accounting Standard Codification and the Hierarchy of Generally Accepted Accounting Principles. In June 2009, the FASB issued FASB ASC Topic 105, which became the source of authoritative GAAP recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. On the effective date of this FASB ASC Topic, the Codification will supersede all then-existing non-SEC accounting and reporting standards. All other non-SEC accounting literature not included in the Codification will become non-authoritative. This FASB ASC Topic identify the sources of accounting principles and the framework for selecting the principles used in preparing the financial statements of nongovernmental entities that are presented in conformity with GAAP. Also, arranged these sources of GAAP in a hierarchy for users to apply accordingly. In other words, the GAAP hierarchy will be modified to include only two levels of GAAP: authoritative and non-authoritative. This FASB ASC Topic is effective for financial statements issued for interim and annual periods ending after September 15, 2009. The adoption of this topic did not have a material impact on the Companys disclosure of the financial statements
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FASB ASC Topic 320, Recognition and Presentation of Other-Than-Temporary Impairments. In April 2009, the FASB issued FASB ASC Topic 320 amends the other-than-temporary impairment guidance in GAAP for debt securities to make the guidance more operational and to improve the presentation and disclosure of other-than-temporary impairments on debt and equity securities in the financial statements. This FASB ASC Topic does not amend existing recognition and measurement guidance related to other-than-temporary impairments of equity securities. The FASB ASC Topic shall be effective for interim and annual reporting periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. Earlier adoption for periods ending before March 15, 2009, is not permitted. This FASB ASC Topic does not require disclosures for earlier periods presented for comparative purposes at initial adoption. In periods after initial adoption, this
9
FASB ASC Topic requires comparative disclosures only for periods ending after initial adoption. The adoption of this Topic did not have a material impact on the Companys financial statements and disclosures.
The Company is evaluating the impact that the following recently issued accounting pronouncements may have on its financial statements and disclosures.
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FASB ASC Topic 860, Accounting for Transfer of Financial Asset., In June 2009, the FASB issued additional guidance under FASB ASC Topic 860, Accounting for Transfer and Servicing of Financial Assets and Extinguishment of Liabilities", which improves the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferors continuing involvement, if any, in transferred financial assets. The Board undertook this project to address (i) practices that have developed since the issuance of FASB ASC Topic 860, that are not consistent with the original intent and key requirements of that statement and (ii) concerns of financial statement users that many of the financial assets (and related obligations) that have been derecognized should continue to be reported in the financial statements of transferors. This additional guidance requires that a transferor recognize and initially measure at fair value all assets obtained (including a transferors beneficial interest) and liabilities incurred as a result of a transfer of financial assets accounted for as a sale. Enhanced disclosures are required to provide financial statement users with greater transparency about transfers of financial assets and a transferors continuing involvement with transferred financial assets. This additional guidance must be applied as of the beginning of each reporting entitys first annual reporting period that begins after November 15, 2009, for interim periods within that first annual reporting period and for interim and annual reporting periods thereafter. Earlier application is prohibited. This additional guidance must be applied to transfers occurring on or after the effective date.
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FASB ASC Topic 810, Variables Interest Entities. In June 2009, the FASB issued FASB ASC Topic 810, which requires an enterprise to perform an analysis to determine whether the enterprises variable interest or interests give it a controlling financial interest in a variable interest entity. This analysis identifies the primary beneficiary of a variable interest entity as the enterprise that has both of the following characteristics: (i)The power to direct the activities of a variable interest entity that most significantly impact the entitys economic performance and (ii)The obligation to absorb losses of the entity that could potentially be significant to the variable interest entity or the right to receive benefits from the entity that could potentially be significant to the variable interest entity. Additionally, an enterprise is required to assess whether it has an implicit financial responsibility to ensure that a variable interest entity operates as designed when determining whether it has the power to direct the activities of the variable interest entity that most significantly impact the entitys economic performance. This FASB Topic requires ongoing reassessments of whether an enterprise is the primary beneficiary of a variable interest entity and eliminate the quantitative approach previously required for determining the primary beneficiary of a variable interest entity, which was based on determining which enterprise absorbs the majority of the entitys expected losses, receives a majority of the entitys expected residual returns, or both. This FASB ASC Topic shall be effective as of the beginning of each reporting entitys first annual reporting period that begins after November 15, 2009, for interim periods within that first annual reporting period, and for interim and annual reporting periods thereafter. Earlier application is prohibited.
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FASB ASC Topic 820, Fair Value measurement and Disclosures, an Accounting Standard Update. In September 2009, the FASB issued this Update to amendments to Subtopic 82010, Fair Value Measurements and Disclosures. Overall, for the fair value measurement of investments in certain entities that calculates net asset value per share (or its equivalent). The amendments in this Update permit, as a practical expedient, a reporting entity to measure the fair value of an investment that is within the scope of the amendments in this Update on the basis of the net asset value per share of the investment (or its equivalent) if the net asset value of the investment (or its equivalent) is calculated in a manner consistent with the measurement principles of Topic 946 as of the reporting entitys measurement date, including measurement of all or substantially all of the underlying investments of
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the investee in accordance with Topic 820. The amendments in this Update also
require disclosures by major category of investment about the attributes of
investments within the scope of the amendments in this Update, such as the nature
of any restrictions on the investors ability to redeem its investments
at the measurement date, any unfunded commitments (for example, a contractual
commitment by the investor to invest a specified amount of additional capital
at a future date to fund investments that will be made by the investee), and
the investment strategies of the investees. The major category of investment
is required to be determined on the basis of the nature and risks of the investment
in a manner consistent with the guidance for major security types in GAAP on
investments in debt and equity securities in paragraph 320-10-50-lB. The disclosures
are required for all investments within the scope of the amendments in this
Update regardless of whether the fair value of the investment is measured using
the practical expedient. The amendments in this Update apply to all reporting
entities that hold an investment that is required or permitted to be measured
or disclosed at fair value on a recurring or non recurring basis and, as of
the reporting entitys measurement date, if the investment meets certain
criteria The amendments in this Update are effective for the interim and annual
periods ending after December 15, 2009. Early application is permitted in financial
statements for earlier interim and annual periods that have not been issued.
- FASB ASC Topic 740, Income Taxes, an Accounting Standard Update. In September 2009, the FASB issued this Update to address the need for additional implementation guidance on accounting for uncertainty in income taxes. The guidance answers the following questions: (i) Is the income tax paid by the entity attributable to the entity or its owners? (ii) What constitutes a tax position for a pass-through entity or a tax-exempt not-for-profit entity? (iii) How should accounting for uncertainty in income taxes be applied when a group of related entities comprise both taxable and nontaxable entities? In addition, this Updated decided to eliminate the disclosures required by paragraph 740-10- 50-15(a) through (b) for nonpublic entities. The implementation guidance will apply to financial statements of nongovernmental entities that are presented in conformity with GAAP. The disclosure amendments will apply only to nonpublic entities as defined in Section 740-10-20. For entities that are currently applying the standards for accounting for uncertainty in income taxes, the guidance and disclosure amendments are effective for financial statements issued for interim and annual periods ending after September 15, 2009. [NTD this doesnt look finished]
Item 3. Quantitative Disclosures About Market Risks
As a smaller reporting company, we are not required to provide the information required by this Item.
Item 4T. Controls and Procedures.
Managements Report on Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our president (who is acting as our principal executive officer, principal financial officer and principle accounting officer) to allow for timely decisions regarding required disclosure.
As of September 30, 2009, the end of our quarter covered by this report, we carried out an evaluation, under the supervision and with the participation of our president (who is acting as our principal executive officer, principal financial officer and principle accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our president (who is acting as our principal executive officer, principal financial officer and principle accounting officer) concluded that our disclosure controls and procedures were effective as of the end of the period covered by this quarterly report.
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Changes in Internal Control over Financial Reporting
There have been no changes in our internal controls over financial reporting that occurred during our quarter ended September 30, 2009 that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
We know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.
Item 1A. Risk Factors
Our business operations are subject to a number of risks and uncertainties, including, but not limited to those set forth below:
We have no operating history and have maintained losses since inception, which we expect to continue into the future.
We were incorporated on September 14, 2000, and have very limited operations. We have not realized any revenues to date. Our website, although operational, requires additional work prior to us being able to generate revenue. We have no operating history at all upon which an evaluation of our future success or failure can be made. Our net loss from inception to September 30, 2009 is $(182,868). Based upon our proposed plans, we expect to incur operating losses in future periods. This will happen because there are substantial costs and expenses associated with the development, testing and marketing of our website. We currently believe we are at least 12-18 months away from generating our first revenues. We may fail to generate revenues in the future. If we cannot attract a significant number of users, we will not be able to generate any significant revenues or income. Failure to generate revenues will cause us to go out of business because we will not have the money to pay our ongoing expenses.
In particular, additional capital may be required in the event that:
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the actual expenditures required to be made are at or above the higher range of our estimated expenditures;
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we incur unexpected costs in completing the development of our product or encounter any unexpected technical or other difficulties;
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we incur delays and additional expenses as a result of technology failure;
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we are unable to create a substantial market for our website; or
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we incur any significant unanticipated expenses.
The occurrence of any of the aforementioned events could adversely affect our ability to meet our business plans and achieve a profitable level of operations.
If our estimates related to expenditures are erroneous our business will fail and you will lose your entire investment.
Our success is dependent in part upon the accuracy of our management's estimates of expenditures, which are currently budgeted at $25,000 for the next 12 months. If such estimates are erroneous or inaccurate we may not be able to carry out our business plan, which could, in a worst-case scenario, result in the failure of our business and you losing your entire investment.
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If we do not obtain additional financing, our business will fail.
Our current operating funds are less than necessary to our plan of operations over the next 12 months, and therefore we will need to obtain additional financing in order to complete our business plan. We currently do not have any operations and we have no income. As well, we will not receive any funds from this registration.
We will require additional financing to sustain our business operations if we are not successful in earning revenues. We do not currently have any arrangements for financing and may not be able to find such financing if required.
If we are unable to complete the development of our website we will not be able to generate revenues and you will lose your entire investment.
We have not completed the development of our website and we have no contracts or licenses for the sale or use of our website. The success of our business will depend on its completion and the acceptance of our website by our potential customers. Achieving such acceptance will require significant marketing investment. Our website, once developed and tested, may not be accepted by our customers at sufficient levels to support our operations and build our business. If the proposed website that we will develop is not accepted at sufficient levels, our business will fail.
Our website, when developed, may contain defects that will make it more difficult for us to establish and maintain customers.
Despite testing during development, our website may contain undetected design faults and software errors, or "bugs," that are discovered only after it has been installed and used by customers. Any such default or error could cause delays in delivering our website or require design modifications. These could adversely affect our competitive position and cause us to lose potential customers or opportunities. In addition, our website has yet to gain widespread acceptance in the market, any delays would likely have a more detrimental impact on our business than if we were a more established company.
Because we have two directors, deadlocks may occur in our Boards decision making process, which may delay or prevent critical decisions from being made.
Since we currently only have an even number of directors, deadlocks may occur when such directors disagree on a particular decision or course of action. Our Articles and By-Laws do not contain any mechanisms for resolving potential deadlocks. While our directors are under a duty to act in the best interest of our company, any deadlocks may impede the further development of our business in that such deadlocks may delay or prevent critical decisions regarding our development.
Trading on the OTC Bulletin Board may be volatile and sporadic, which could depress the market price of our common stock and make it difficult for our stockholders to resell their shares.
Our common stock is quoted on the OTC Bulletin Board service of the Financial Industry Regulatory Authority. Trading in stock quoted on the OTC Bulletin Board is often thin and characterized by wide fluctuations in trading prices, due to many factors that may have little to do with our operations or business prospects. This volatility could depress the market price of our common stock for reasons unrelated to operating performance. Moreover, the OTC Bulletin Board is not a stock exchange, and trading of securities on the OTC Bulletin Board is often more sporadic than the trading of securities listed on a quotation system like NASDAQ or a stock exchange like Amex. Accordingly, shareholders may have difficulty reselling any of their shares.
Our stock is a penny stock. Trading of our stock may be restricted by the SECs penny stock regulations and FINRAs sales practice requirements, which may limit a stockholders ability to buy and sell our stock.
Our stock is a penny stock. The Securities and Exchange Commission has adopted Rule 15g-9 which generally defines penny stock to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. Our securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and accredited investors. The term accredited investor refers generally to institutions with
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assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC which provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customers account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customers confirmation. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchasers written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities. We believe that the penny stock rules discourage investor interest in, and limit the marketability of, our common stock.
In addition to the penny stock rules promulgated by the Securities and Exchange Commission, the Financial Industry Regulatory Authority has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customers financial status, tax status, investment objectives and other information. Under interpretations of these rules, the Financial Industry Regulatory Authority believes that there is a high probability that speculative low-priced securities will not be suitable for at least some customers. The Financial Industry Regulatory Authority requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
Item 5. Other Information
On January 15, 2009, Roy Shapiro resigned as a director of our company.
Item 6. Exhibits.
Exhibits required by Item 601 of Regulation S-K
Exhibit | Description |
Number | |
(3) | Articles of Incorporation and By-laws |
3.1 |
Articles of Incorporation (incorporated by reference from our Registration Statement on Form S-1 filed on July 21, 2008) |
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Exhibit | Description |
Number | |
3.2 | Certificate of Amendment (incorporated by reference from our Registration Statement on Form S-1 filed on July 21, 2008) |
3.3 | Bylaws (incorporated by reference from our Registration Statement on Form S-1 filed on July 21, 2008) |
(31) | Rule 13a-14(d)/15d-14(d) Certifications |
31.1* | Section 302 Certification of Principal Executive Officer and Principal Financial Officer. |
(32) | Section 1350 Certifications |
32.1* | Section 906 Certification of Principal Executive Officer and Principal Financial Officer. |
* Filed herewith
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
HEALTHMED SERVICES LTD. | |
(Registrant) | |
Dated: November 16, 2009 | |
/s/ Georgios Polyhronopoulos | |
Georgios Polyhronopoulos | |
President, Secretary, Treasurer and Director | |
(Principal Executive Officer, Principal | |
Accounting Officer and Principal Financial | |
Officer) |
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