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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



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FORM 10-QSB



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(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, 2007



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

Commission file number: 33-55254-36



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E Med Future, Inc.

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



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

794 Morrison Road, Suite 911, Columbus, Ohio 43230

(Address of principal executive offices)



|                            |  |                   
|--------------------------- |  | ------------------
|330-674-1363                |  | www.NeedleZap.com 
|(Issuers telephone number) |  | (Issuers website)



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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 ̈

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

State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date: 42,513,415 shares of common stock,
$0.001 par value per share, as of August 10, 2007.

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



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TABLE OF CONTENTS



|                                                                    |  |    
|------------------------------------------------------------------- |  | ---
|PART I  FINANCIAL INFORMATION                                      |  | 1  
|Item 1. Financial Statements                                        |  | 1  
|Item 2. Managements Discussion and Analysis                        |  | 1  
|Our Products                                                        |  | 1  
|Looking Ahead                                                       |  | 2  
|Our History                                                         |  | 2  
|Results of Operations                                               |  | 3  
|Net Sales                                                           |  | 3  
|Costs and Expenses                                                  |  | 3  
|Net Loss                                                            |  | 3  
|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                             |  | 8  
|Item 4. Submission of Matters to a Vote of Security Holders         |  | 8  
|Item 5. Other Information                                           |  | 8  
|Item 6. Exhibits                                                    |  | 8  
|SIGNATURES                                                          |  | 9  
|FINANCIAL STATEMENTS                                                |  | F-1



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PART I  FINANCIAL INFORMATION



|Item 1. | Financial Statements
|------- | --------------------

Our June 30, 2007 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 OSHA needlestick mandates that require employers to take advantage of new technologies to prevent needlesticks in the workplace.

Our Products

Our primary product is the 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 we lack 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 obtaining this 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 sets 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



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butterfly needle burner necessitated design modifications, including a change to the housing and repositioning of the electrode system.

On December 30, 2003, we acquired Medical Safety Technologies, Inc. from UTEK Corporation (AMEX:UTK), an
innovative technology transfer company dedicated to building bridges between university developed technologies and commercial organizations. 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 believe the Safe Receptacle for Sharps device is complimentary 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

From July 9 through July 25, 2007, a Food and Drug Administration investigator conducted an inspection of our operations. At the conclusion of the inspection an FDA Form 483 was issued to the company listing observations of the
inspector, which we responded to on August 7, 2007. The observations included deficiencies in our operating procedures, which will require correction. We voluntarily suspended shipment of our products until the required corrections are
completed and the FDA re-inspects our operations to assure we are in compliance. We anticipate compliance will be achieved and shipments resume during the fourth quarter of 2007.

Looking Ahead

We have incurred net losses while we obtained FDA
approval and patent protection for our NeedleZap® product and entered into distribution relationships. We have not had significant sales volume in prior years and sales in 2006 were less
than projected. However, our sales to date in 2007 exceed the total sales in all of 2006 and firm orders exceed 2006 sales volumes substantially. Of course, we cannot guarantee that sales will increase or that we will be able to attain
profitability. We are currently in receivership and our future is uncertain.

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 then 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 resigned and were replaced by Robert J. Ochsendorf, D. Dane Donohue and Juan J. Perez. Our shares began trading on the OTC Bulletin Board under the symbol EMDF.OB on April 17, 2003. For



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additional information about the merger, please see the Report on Form 8-K dated April 4, 2003 that we filed with the SEC on April 11, 2003.

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. We were disappointed when our results did not meet expectations due to lower than anticipated sales. However, sales in the
first half of 2007 exceeded sales for all of 2006 and customer interest has been positive. We believe 2007 has the potential to produce the highest annual sales in the history of the Company.

Second Quarter of 2007 Compared to 2006

Net Sales

We had net sales of $17,546 in the quarter ended June 30, 2007, compared with $25,962 for the same period in
2006, a decrease of $8,416, or 32.4%. This decrease is primarily attributable to sales and shipments to international customers, which have been delayed until later in the year.

Costs and Expenses

Operating costs and expenses decreased $11,436, or 12.4%, in the second quarter of 2007 to $80,656 from
$92,092 in 2006. Operating costs and expenses for the second quarter of 2007 were lower despite increased legal and accounting fees in connection with the receivership in 2007 compared to 2006. As a percentage of net sales, cost of goods sold
decreased to 46.0% in 2007 from 49.7% in 2006 due to a reduction in warranty costs and a reduced cost basis versus historical cost of inventory sold attributable to a reduction in valuation required by ARB No. 43, Chapter 4, for the year ended
December 31, 2005.

Other expenses increased $1,384, or 9.8%, to $15,455 in 2007 compared to $14,071 in 2006 due to a higher interest rate on our line
of credit.

Net Loss

In the second quarter of 2007, our net loss decreased to $78,565 from a net loss of $80,201 in 2006 as a result of
higher profit margins and continuing cost cutting measures by management.

First Six Months of 2007 Compared to 2006

Net Sales

We had net sales of $122,171 for the six months ended
June 30, 2007, compared with $35,304 for the same period in 2006, an increase of $86,867, or 246.0%. This increase is primarily attributable to sales and shipments to international customers during the first quarter, which have been anticipated
for the past year.

Costs and Expenses

Operating costs
and expenses increased $52,472, or 38.5%, in the second quarter of 2007 to $188,782 from $136,310 in 2006. Operating costs and expenses for the first half of 2007 were higher due to increased legal and accounting fees and cost of goods sold in 2007
compared to 2006. As a percentage of net sales, cost of goods sold decreased to 34.7% in 2007 from 62.1%



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in 2006 due to a reduction in warranty costs and a reduced cost basis versus historical cost of inventory sold attributable to a reduction in valuation
required by ARB No. 43, Chapter 4, for the year ended December 31, 2005.

Other expenses remained relatively flat at $28,992 in 2007 compared to
$27,859 in 2006.

Net Loss

In the first six months of
2007, our net loss decreased to $95,603 from a net loss of $128,865 in 2006 as a result of higher profit margins and sales.

Financial Condition and Liquidity

We had cash available of $36,565 on June 30, 2007, compared to $8,947 in cash
available at the end of 2006. The increase is primarily the result of inventory reduction from increased sales. Cash provided by operations increased 305.2% to $55,320 in the first of 2007 from $13,654 in 2006, primarily due to decreased inventory
and increases in accounts payable and accrued liabilities.

On November 12, 2002, we entered into a credit facility with Key Bank (NA). The facility
provides us with a working capital line-of-credit of up to $150,000 and currently bears interest at 11.75%. 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 $121,396 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 first 1.0 million and $2.00 on the second 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. We have not paid royalties to the lender and are currently in default under the loan. The lender has instituted suit in connection with this loan and Martin Management
Services, Inc. was appointed as receiver for the Company on November 22, 2006. Martin Management intends to operate E Med for the benefit of its creditors.

From September 2004 to June 2006, Ronald L. Alexander, one of our directors, loaned E Med a total of $136,120. On June 15, 2006, we issued Mr. Alexander 3.5 million unregistered shares in partial satisfaction of this loan. On
June 28, 2006, a private investor purchased 1.5 million shares of our unregistered shares for $45,000, or $0.03 a share. On June 15, 2006, we issued 3.5 million unregistered shares to Donald Sullivan, our CFO, interim CEO and a
director, for payment of accrued wages from January 1, 2005 through May 31, 2006.

Our primary need for capital is to fund operations and the
development of new products. More recently we have been forced to expend significant funds to defend the company from various



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legal actions. 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. Although sales continue to be disappointing, we believe increased sales may eventually meet our capital needs in the long-term. However, current sales are not adequate to meet our cash needs, and without
additional loans or equity infusions we will not be able to continue our operations.

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 continue operating as a going concern and emerge from receivership;
| | - |  | ----------------------------------------------------------------------------------



| |  |  | our ability to execute our business plan;
| | - |  | -----------------------------------------



| |  |  | our ability to successfully market and sell our products;
| | - |  | ---------------------------------------------------------



| |  |  | our ability to continue to comply with rules and regulations governing our products;
| | - |  | ------------------------------------------------------------------------------------



| |  |  | 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 financial resources are limited and we are dependant on increasing sales to generate cash for operations; and
| | - |  | -----------------------------------------------------------------------------------------------------------------



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



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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: 330-674-1363

Email: info@NeedleZap.com



|Item 3. | Controls and Procedures
|------- | -----------------------

Donald Sullivan, our chief financial
officer and interim president and chief executive officer, has reviewed E Meds disclosure controls and procedures as of June 30, 2007. Based upon his review, he believes that our disclosure controls and procedures are effective in
ensuring that material information related to E Med is communicated to him by others within the company responsible for reporting this information. There were no changes in our internal controls over financial reporting during the fiscal quarter
ended June 30, 2007 that have materially affected or are reasonably likely to affect, our internal controls over financial reporting.



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PART II  OTHER INFORMATION



|Item 1. | Legal Proceedings
|------- | -----------------

On August 6, 2006, Complete Investment
Management (CIM) filed an action against E Med and Kenneth A. Jackson titled Complete Investment, Ltd. v. E Med Future, Inc. and Kenneth A. Jackson d/b/a PR Market Research in the Common Pleas Court of Franklin County, Ohio. CIM
sought the appointment of a receiver and the repayment of a loan made by CIM to E Med in the amount of $548,000. Martin Management Services, Inc. was appointed as receiver for the Company on November 22, 2006. Martin Management intends to
operate E Med for the benefit of its creditors. Martin Management has filed cross-claims on E Meds behalf against defendant Jackson, and has also filed third party complaints against Safe Medical Solutions, LLC (Safe Med) and IMET
Corporation, both of which are owned by Jackson. These claims principally charge that each has improperly interfered with the business and assets of E Med. On June 22, 2007, the court granted a preliminary injunction against Jackson and third
party defendant Safe Med, prohibiting each from holding themselves out to the public as having any legal rights in the patent or trademark of NeedleZap. This injunction did preserve Jacksons right to pursue his cancellation of the trademark
action before the TTAB, as discussed below, and permit him to continue to sell the NeedleZap product.

On July 31, 2006, Safe Med filed a suit against
E Med titled Safe Medical Solutions, LLC v. E Med Future, Inc. in the Common Pleas Court of Franklin County, Ohio. The suit names E Med, Donald Sullivan, our CFO and interim CEO, Curtis Sheely, a former employee of Safe Med formerly employed
by E Med, and Daniel Clevenger as defendants. Safe Med claimed that E Med was interfering with its business by contacting its customers. It claimed damages and sought an immediate temporary restraining order, which was not issued. We do not believe
Safe Meds claims against E Med have any merit. This action has been stayed by the appointment of the receiver. Safe Meds motion to consolidate this case with the receivership has been denied.

On July 1, 2006, Kenneth Jackson filed a petition for cancellation of the registration of the NeedleZap trademark in the United States Patent and Trademark Office
before the Trademark Trial and Appeal Board, or TTAB. The petition claimed that the trademark was being used so as to misrepresent the source of goods or services on or in connection with which the mark is used. E Med is the holder of the trademark
by assignment of the registration. On December 18, 2006 we filed a motion to suspend the cancellation proceeding in the TTAB pending resolution of the CIM case filed August 6, 2006, as noted above. On June 14, 2007 the TTAB granted
our motion suspending the cancellation proceeding pending final disposition of the civil action.

For additional information about these suits, please
reference Item 3 of our December 31, 2006 Form 10-KSB that we filed with the SEC on April 17, 2007.



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

Not
applicable.



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|Item 3. | Defaults Upon Senior Securities
|------- | -------------------------------

Complete Investment Management
(CIM) has loaned E Med a total of $548,000. E Med is in default of its payment obligations and CIM has instituted suit in connection with this loan. We hope to arrive at a mutually agreeable settlement with CIM. In connection with this
suit, Martin Management Services, Inc. was appointed as receiver for the Company on November 22, 2006. Martin Management intends to operate E Med for the benefit of its creditors.



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

Not
applicable.



|Item 5. | Other Information
|------- | -----------------

Not applicable.



|Item 6. | Exhibits
|------- | --------



|   |  |                                                                                                                                                                       
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|31 |  | Chief Financial Officer and Interim President and Chief Executive Officer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                                                                            



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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 20, 2007 |  |                    |  | /s/ Donald Sullivan                                                            
|                      |  |                    |  | By Donald Sullivan, Chief Financial Officer and
interim Chief Executive Officer



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E MED FUTURE, INC. AND SUBSIDIARY

Formerly Micro-Economics, Inc.

(A Development Stage Company)

CONSOLIDATED BALANCE SHEETS



|                                                                                                                                             |  |               |            |   |                  |   |            |  
|-------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------- | ---------- | - | ---------------- | - | ---------- | -
|                                                                                                                                             |  | June 30, 2007 |            |   | December 31,2006 |  
|                                                                                                                                             |  | (Unaudited)   |            |   |                  |  
|ASSETS                                                                                                                                       |  |               |            |   |                  |   |            |  
|CURRENT ASSETS                                                                                                                               |  |               |            |   |                  |   |            |  
|Cash                                                                                                                                         |  | $             | 36,565     |   |                  | $ | 8,947      |  
|Accounts receivable                                                                                                                          |  |               | 495        |   |                  |   | 358        |  
|Inventory                                                                                                                                    |  |               | 61,575     |   |                  |   | 82,711     |  
|Deposit                                                                                                                                      |  |               | 4,575      |   |                  |   | 4,575      |  
|                                                                                                                                             |  |               |            |   |                  |   |            |  
|Total Current Assets                                                                                                                         |  |               | 103,210    |   |                  |   | 96,591     |  
|EQUIPMENT, net of accumulated depreciation of $6,677 and $5,699, respectively                                                                |  |               | 10,183     |   |                  |   | 11,162     |  
|                                                                                                                                             |  |               |            |   |                  |   |            |  
|Total Assets                                                                                                                                 |  | $             | 113,393    |   |                  | $ | 107,753    |  
|                                                                                                                                             |  |               |            |   |                  |   |            |  
|LIABILITIES AND STOCKHOLDERS DEFICIT                                                                                                        |  |               |            |   |                  |   |            |  
|CURRENT LIABILITIES                                                                                                                          |  |               |            |   |                  |   |            |  
|Notes payable to bank                                                                                                                        |  | $             | 121,396    |   |                  | $ | 149,098    |  
|Current portion of notes payable                                                                                                             |  |               | 1,089      |   |                  |   | 1,089      |  
|Notes payable to related party                                                                                                               |  |               | 68,120     |   |                  |   | 68,120     |  
|Accounts payable                                                                                                                             |  |               | 291,783    |   |                  |   | 250,311    |  
|Accounts payable to related party                                                                                                            |  |               | 39,216     |   |                  |   | 41,369     |  
|Accrued expenses                                                                                                                             |  |               | 329,695    |   |                  |   | 240,069    |  
|Customer deposits                                                                                                                            |  |               | 75,000     |   |                  |   | 75,000     |  
|                                                                                                                                             |  |               |            |   |                  |   |            |  
|Total Current Liabilities                                                                                                                    |  |               | 926,299    |   |                  |   | 825,056    |  
|LONG TERM DEBT                                                                                                                              |  |               |            |   |                  |   |            |  
|Convertible promissory note payable                                                                                                          |  |               | 548,000    |   |                  |   | 548,000    |  
|STOCKHOLDERS DEFICIT                                                                                                                        |  |               |            |   |                  |   |            |  
|Common stock $0.001 par value, 50,000,000 authorized, 42,513,415 issued and outstanding at June 30, 2007 and December 31, 2006,
respectively |  |               | 42,513     |   |                  |   | 42,513     |  
|Paid-in Capital                                                                                                                              |  |               | 3,476,637  |   |                  |   | 3,476,637  |  
|Deficit accumulated during development stage                                                                                                 |  |               | (4,880,056 | ) |                  |   | (4,784,453 | )
|                                                                                                                                             |  |               |            |   |                  |   |            |  
|Total Stockholders Deficit                                                                                                                  |  |               | (1,360,906 | ) |                  |   | (1,265,303 | )
|                                                                                                                                             |  |               |            |   |                  |   |            |  
|Total Liabilities and Stockholders Deficit                                                                                                  |  | $             | 113,393    |   |                  | $ | 107,753    |  
|                                                                                                                                             |  |               |            |   |                  |   |            |  

See accompanying notes to consolidated financial statements.



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E MED FUTURE, INC. AND SUBSIDIARY

Formerly Micro-Economics, Inc.

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)



|                                              |  |                    |            |   |                  |   |            |                                                 |  |   |               |   |  |   |            |   |  |   |            |  
|--------------------------------------------- |  | ------------------ | ---------- | - | ---------------- | - | ---------- | ----------------------------------------------- |  | - | ------------- | - |  | - | ---------- | - |  | - | ---------- | -
|                                              |  | Three Months Ended |            |   | Six Months Ended |   |            | PeriodMarch 14, 1990(Inception) toJune 30, 2007 | 
|                                              |  | June 30, 2007      |            |   | June 30, 2006    |   |            | June 30, 2007                                   |  |   | June 30, 2006 |   | 
|NET SALES                                     |  | $                  | 17,546     |   |                  | $ | 25,962     |                                                 |  | $ | 122,171       |   |  | $ | 35,304     |   |  | $ | 1,125,021  |  
|COSTS AND EXPENSES                            |  |                    |            |   |                  |   |            |                                                 |  |   |               |   |  |   |            |   |  |   |            |  
|Cost of goods sold                            |  |                    | 8,072      |   |                  |   | 12,892     |                                                 |  |   | 42,353        |   |  |   | 21,923     |   |  |   | 1,045,841  |  
|Selling, general and administrative           |  |                    | 72,180     |   |                  |   | 77,228     |                                                 |  |   | 145,450       |   |  |   | 111,642    |   |  |   | 2,057,927  |  
|Impairment of long lived assets               |  |                    |            |   |                  |   |            |                                                 |  |   |               |   |  |   |            |   |  |   | 273,844    |  
|Research and development                      |  |                    |            |   |                  |   | 1,200      |                                                 |  |   |               |   |  |   | 1,200      |   |  |   | 16,747     |  
|Consulting expense                            |  |                    |            |   |                  |   |            |                                                 |  |   |               |   |  |   |            |   |  |   | 2,112,400  |  
|Impairment of goodwill                        |  |                    |            |   |                  |   |            |                                                 |  |   |               |   |  |   |            |   |  |   | 188,500    |  
|Depreciation and amortization                 |  |                    | 404        |   |                  |   | 772        |                                                 |  |   | 979           |   |  |   | 1,545      |   |  |   | 146,971    |  
|                                              |  |                    |            |   |                  |   |            |                                                 |  |   |               |   |  |   |            |   |  |   |            |  
|Total Costs and Expenses                      |  |                    | 80,656     |   |                  |   | 92,092     |                                                 |  |   | 188,782       |   |  |   | 136,310    |   |  |   | 5,842,230  |  
|                                              |  |                    |            |   |                  |   |            |                                                 |  |   |               |   |  |   |            |   |  |   |            |  
|NET OPERATING LOSS                            |  |                    | (63,110    | ) |                  |   | (66,130    | )                                               |  |   | (66,611       | ) |  |   | (101,006   | ) |  |   | (4,717,209 | )
|OTHER INCOME (EXPENSE)                        |  |                    |            |   |                  |   |            |                                                 |  |   |               |   |  |   |            |   |  |   |            |  
|Interest and other income                     |  |                    |            |   |                  |   |            |                                                 |  |   |               |   |  |   |            |   |  |   | 5,865      |  
|Interest expense                              |  |                    | (15,455    | ) |                  |   | (14,071    | )                                               |  |   | (28,992       | ) |  |   | (27,859    | ) |  |   | (168,712   | )
|                                              |  |                    |            |   |                  |   |            |                                                 |  |   |               |   |  |   |            |   |  |   |            |  
|Total Other Income (Expense)                  |  |                    | (15,455    | ) |                  |   | (14,071    | )                                               |  |   | (28,992       | ) |  |   | (27,859    | ) |  |   | (162,847   | )
|                                              |  |                    |            |   |                  |   |            |                                                 |  |   |               |   |  |   |            |   |  |   |            |  
|NET LOSS                                      |  | $                  | (78,565    | ) |                  | $ | (80,201    | )                                               |  | $ | (95,603       | ) |  | $ | (128,865   | ) |  | $ | (4,880,056 | )
|                                              |  |                    |            |   |                  |   |            |                                                 |  |   |               |   |  |   |            |   |  |   |            |  
|NET LOSS PER COMMON SHARE (Basic and diluted) |  | $                  | (0.01      | ) |                  | $ | (0.01      | )                                               |  | $ | (0.01         | ) |  | $ | (0.01      | ) |  | $ | (0.54      | )
|                                              |  |                    |            |   |                  |   |            |                                                 |  |   |               |   |  |   |            |   |  |   |            |  
|WEIGHTED AVERAGE SHARES OUTSTANDING           |  |                    | 42,513,415 |   |                  |   | 33,960,637 |                                                 |  |   | 42,513,415    |   |  |   | 33,362,026 |   |  |   | 9,087,267  |  
|                                              |  |                    |            |   |                  |   |            |                                                 |  |   |               |   |  |   |            |   |  |   |            |  

See accompanying notes to consolidated financial statements.



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##### Table of Contents

E MED FUTURE, INC.

Formerly Micro-Economics, Inc.

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)



|                                                                               |  |                           |         |   |                                                  |   |          |   |  |   |            |  
|------------------------------------------------------------------------------ |  | ------------------------- | ------- | - | ------------------------------------------------ | - | -------- | - |  | - | ---------- | -
|                                                                               |  | Six Months Ended June 30, |         |   | Period March 14, 1994(Inception) toJune 30, 2007 |  
|                                                                               |  | 2007                      |         |   | 2006                                             |   |         
|CASH FLOWS FROM OPERATING ACTIVITIES                                           |  |                           |         |   |                                                  |   |          |   |  |   |            |  
|Net loss                                                                       |  | $                         | (95,603 | ) |                                                  | $ | (128,866 | ) |  | $ | (4,880,056 | )
|Adjustments to reconcile net loss to net cash flows from operating activities: |  |                           |         |   |                                                  |   |          |   |  |   |            |  
|Depreciation and amortization                                                  |  |                           | 979     |   |                                                  |   | 1,545    |   |  |   | 146,971    |  
|Consulting expense                                                             |  |                           |         |   |                                                  |   | 25,500   |   |  |   | 2,112,400  |  
|Research and development                                                       |  |                           |         |   |                                                  |   |          |   |  |   | 8,808      |  
|Start-up costs                                                                 |  |                           |         |   |                                                  |   |          |   |  |   | 19,177     |  
|Amortization of prepaid expenses                                               |  |                           |         |   |                                                  |   |          |   |  |   | 39,913     |  
|Loss on inventory obsolescence                                                 |  |                           |         |   |                                                  |   |          |   |  |   | 225,110    |  
|Impairment of long lived assets                                                |  |                           |         |   |                                                  |   |          |   |  |   | 273,844    |  
|Impairment of goodwill                                                         |  |                           |         |   |                                                  |   |          |   |  |   | 188,500    |  
|Changes in operating assets and liabilities:                                   |  |                           |         |   |                                                  |   |          |   |  |   |            |  
|Accounts receivable                                                            |  |                           | (137    | ) |                                                  |   | 8,649    |   |  |   | (495       | )
|Inventory                                                                      |  |                           | 21,136  |   |                                                  |   | 7,996    |   |  |   | (135,670   | )
|Prepaid expenses                                                               |  |                           |         |   |                                                  |   |          |   |  |   | (9,312     | )
|Deposits                                                                       |  |                           |         |   |                                                  |   |          |   |  |   | (4,575     | )
|Accounts payable                                                               |  |                           | 51,714  |   |                                                  |   | (32,063  | ) |  |   | 303,780    |  
|Accounts payable to related party                                              |  |                           | (2,153  | ) |                                                  |   | (15,739  | ) |  |   | 39,216     |  
|Accrued expenses                                                               |  |                           | 79,384  |   |                                                  |   | 71,632   |   |  |   | 399,695    |  
|Customer deposits                                                              |  |                           |         |   |                                                  |   | 75,000   |   |  |   | 75,000     |  
|                                                                               |  |                           |         |   |                                                  |   |          |   |  |   |            |  
|Net cash provided by (used in) operating activities                            |  |                           | 55,320  |   |                                                  |   | 13,654   |   |  |   | (1,197,694 | )
|                                                                               |  |                           |         |   |                                                  |   |          |   |  |   |            |  
|CASH FLOWS FROM INVESTING ACTIVITIES                                           |  |                           |         |   |                                                  |   |          |   |  |   |            |  
|Purchases of property and equipment                                            |  |                           |        |   |                                                  |   | (4,280   | ) |  |   | (94,806    | )
|                                                                               |  |                           |         |   |                                                  |   |          |   |  |   |            |  
|Net cash used in investing activities                                          |  |                           |        |   |                                                  |   | (4,280   | ) |  |   | (94,806    | )
|                                                                               |  |                           |         |   |                                                  |   |          |   |  |   |            |  
|CASH FLOWS FROM FINANCING ACTIVITIES                                           |  |                           |         |   |                                                  |   |          |   |  |   |            |  
|Proceeds from issuance of common stock                                         |  |                           |         |   |                                                  |   | 45,000   |   |  |   | 45,000     |  
|Initial capitalization                                                         |  |                           |         |   |                                                  |   |          |   |  |   | 1,666      |  
|Cash acquired in acquisition                                                   |  |                           |         |   |                                                  |   |          |   |  |   | 200,000    |  
|Notes payable                                                                  |  |                           | (27,702 | ) |                                                  |   | (820     | ) |  |   | 122,485    |  
|Convertible promissory notes payable                                           |  |                           |         |   |                                                  |   |          |   |  |   | 548,000    |  
|Notes payable to related party                                                 |  |                           |         |   |                                                  |   | 29,425   |   |  |   | 411,914    |  
|                                                                               |  |                           |         |   |                                                  |   |          |   |  |   |            |  
|Net cash provided by financing activities                                      |  |                           | (27,702 | ) |                                                  |   | 73,605   |   |  |   | 1,329,065  |  
|                                                                               |  |                           |         |   |                                                  |   |          |   |  |   |            |  
|NET INCREASE IN CASH                                                           |  |                           | 27,618  |   |                                                  |   | 82,979   |   |  |   | 36,565     |  
|CASH, BEGINNING OF PERIOD                                                      |  |                           | 8,947   |   |                                                  |   | (365     | ) |  |   |            |  
|                                                                               |  |                           |         |   |                                                  |   |          |   |  |   |            |  
|CASH, END OF PERIOD                                                            |  | $                         | 36,565  |   |                                                  | $ | 82,614   |   |  | $ | 36,565     |  
|                                                                               |  |                           |         |   |                                                  |   |          |   |  |   |            |  

See accompanying notes to consolidated financial statements.



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##### Table of Contents

E MED FUTURE, INC. AND SUBSIDIARY

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF CASH FLOWS
(CONTINUED)

(UNAUDITED)



|                                                                                                                     |  |                          |       |                                                  |   |        |  |   |          
|-------------------------------------------------------------------------------------------------------------------- |  | ------------------------ | ----- | ------------------------------------------------ | - | ------ |  | - | ---------
|                                                                                                                     |  | Six Months EndedJune 30, |       | Period March 14, 1994(Inception) toJune 30, 2007
|                                                                                                                     |  | 2007                     |       | 2006                                             |  
|Supplemental Disclosure of Cash Flow Information:                                                                    |  |                          |       |                                                  |   |        |  |   |          
|Interest paid                                                                                                        |  | $                        | 7,298 |                                                  | $ | 14,071 |  | $ | 53,505   
|Supplemental Schedule of Non-Cash Investing and Financing Activities:                                                |  |                          |       |                                                  |   |        |  |   |          
|Needlezap Partnership Contribution of Assets to Company                                                              |  |                          |       |                                                  |   |        |  |   |          
|Inventory                                                                                                            |  |                          |       |                                                  |   |        |  |   | 151,015  
|Equipment                                                                                                            |  |                          |       |                                                  |   |        |  |   | 133,912  
|Patent                                                                                                               |  |                          |       |                                                  |   |        |  |   | 189,089  
|Issuance of 7,500,000 shares valued at $0.03 to acquire Trademark                                                    |  |                          |       |                                                  |   |        |  |   | 22,500   
|Issuance of common stock for consulting services and compensation                                                    |  |                          |       |                                                  |   | 25,500 |  |   | 2,259,067
|Loss on inventory obsolescence                                                                                       |  |                          |       |                                                  |   |        |  |   | 225,110  
|Impairment of long lived assets                                                                                      |  |                          |       |                                                  |   |        |  |   | 273,844  
|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                                                                          |  |                          |       |                                                  |   | 70,000 |  |   | 336,484  
|Issuance of common stock in payment of accounts payable                                                              |  |                          |       |                                                  |   |        |  |   | 12,000   
|Issuance of common stock in payment of accrued wages                                                                 |  |                          |       |                                                  |   |        |  |   | 70,000   
|Settlement of notes payable with fixed assets                                                                        |  |                          |       |                                                  |   |        |  |   | 7,310    

See accompanying notes to consolidated financial statements.



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##### Table of Contents

E MED FUTURE, INC.

Formerly Micro-Economics, Inc.

(A Development Stage Company)

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2007

NOTE A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 three and six months ended June 30, 2007 are not necessarily indicative of the results that may be expected
for the year ending December 31, 2007. 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, 2006.

NOTE BGOING CONCERN

As indicated in the accompanying financial statements, the Company incurred a net loss of $95,603 for the six months ended June 30, 2007, and has a negative working capital of $823,089 and Stockholders Deficit of $1,360,906 at
June 30, 2007, 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 CCONCENTRATION

Approximately 84% of the Companys sales for the six months ended June 30, 2007 were with two customers.

NOTE
DCONVERTIBLE PROMISSORY NOTE PAYABLE

On November 22, 2006, Martin Management Services, Inc. (Martin Management) was
appointed as receiver for the Company by the Franklin County, Ohio Common Pleas Court in the action filed on August 6, 2006 by Complete Investment Management, Ltd. (CIM). CIM has sought the repayment of a loan made by CIM to the
Company in the amount of $548,000. The Company is in default in its payments to CIM due to declining revenue and cash flow. Martin Management has been operating the Company for the benefit of its creditors.



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##### Table of Contents

E MED FUTURE, INC.

Formerly Micro-Economics, Inc.

(A Development Stage Company)

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2007

NOTE ESUBSEQUENT EVENT

From July 9 through July 25, 2007, a Food and Drug Administration investigator conducted an inspection of the Companys operations. At the
conclusion of the inspection an FDA Form 483 was issued to the Company listing observations of the inspector, which the Company responded to on August 7, 2007. The observations included deficiencies in the Companys operating procedures,
which will require correction. The Company voluntarily suspended shipment of our products until the required corrections are completed and the FDA re-inspects our operations to assure that the Company is in compliance. The Company anticipates
compliance will be achieved and shipments resume during the fourth quarter of 2007.



F-6