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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 September 30, 2005



| ̈ | 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, OH 43230

(Address of principal executive offices)



|                            |  |                   
|--------------------------- |  | ------------------
|877-855-1319                |  | 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: 34,013,415 shares of common stock, $0.001 par value per share, as of November 1, 2005.



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
|                                        |  |                                                                     |  | Recent Events                              |  | 2
|                                        |  |                                                                     |  | Looking Ahead                              |  | 2
|                                        |  |                                                                     |  | Our History                                |  | 2
|                                        |  |                                                                     |  | Results of Operations                      |  | 3
|                                        |  |                                                                     |  | Third Quarter of 2005 Compared to 2004     |  | 4
|                                        |  |                                                                     |  | Net Sales                                  |  | 4
|                                        |  |                                                                     |  | Costs and Expenses                         |  | 4
|                                        |  |                                                                     |  | Net Loss                                   |  | 4
|                                        |  |                                                                     |  | First Nine Months of 2005 Compared to 2004 |  | 4
|                                        |  |                                                                     |  | Net Sales                                  |  | 4
|                                        |  |                                                                     |  | Costs and Expenses                         |  | 4
|                                        |  |                                                                     |  | Net Loss                                   |  | 5
|                                        |  |                                                                     |  | Financial Condition and Liquidity          |  | 5
|                                        |  |                                                                     |  | Off-Balance Sheet Arrangements             |  | 5
|                                        |  |                                                                     |  | Forward Looking Statements                 |  | 5
|                                        |  |                                                                     |  | How to Learn More About E Med              |  | 6
|                                        |  | Item 3.
Controls and Procedures                                     |  | 7                                         
|PART II  OTHER INFORMATION             |  | 8                                                                  
|                                        |  | Item 1.
Legal Proceedings                                           |  | 8                                         
|                                        |  | Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds |  | 8                                         
|                                        |  | 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                                                                  
|September 30, 2005 Financial Statements |  | F-1                                                                



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##### Table of Contents

PART I  FINANCIAL INFORMATION



Item 1. Financial Statements



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



Item 2. Managements Discussion and Analysis



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



Our Products



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



In July
2003, we announced the beginning of clinical testing and market evaluation of the first extensions to the NeedleZap® product line which include a dental parking station and butterfly needle burner. We are presently in the process of obtaining
patent protection for these new products. Because 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 FDA approval.



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



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



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



Recent Events



On July 21, 2005, Robert J.
Ochsendorf and John J. Perez stepped down from our board of directors to focus on other business interests. Ronald L. Alexander and Donald Sullivan were immediately appointed to fill the vacancies in the board resulting from the departure of Messrs.
Ochsendorf and Perez. Mr. Alexander was an original investor in E Med when the company was founded in 2000. He currently owns and operates several businesses, including funeral homes and a hospital bed sale and rental company. At the request of
the newly appointed members of the board, D. Dane Donohue resigned as president, CEO and a director on September 12, 2005. Mr. Donohue is a co-founder of E Med and remains a significant stockholder. Looking forward, Mr. Donohue plans
to vigorously participate in the global distribution of our NeedleZap® product through one of the companys current distributors, Safe Medical Solutions, LLC. Donald Sullivan, who has served as our CFO since November 2004, was immediately
appointed interim CEO. The remaining board members are actively searching for candidates to fill the vacancy caused by Mr. Donohues resignation.



Looking Ahead



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



Our History



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



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



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



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



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



Results of Operations



We are a development stage
company and did not have full approval to market and sell our products until March 2003. Initial sales in 2003 caused us to be optimistic that our revenues and profits would increase in subsequent years. However, our 2004 results did not meet
expectations due to lower than anticipated sales by our distributors and sales by our distributors in the first six months of 2005 continued to be disappointing. Additionally, delivery of units to two international customers scheduled for the first
six months of 2005 was delayed due to our requirement that payment be made prior to shipment. However, sales in the third quarter of 2005 exceeded the sales for the previous four quarters combined, with international customers accounted for more
than half of our third quarter sales.



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Third Quarter of 2005 Compared to 2004



Net Sales



We had net sales of $52,442 in the
quarter ended September 30, 2005, compared with $9,690 for the same period in 2004, an increase of $42,752 or 441.2%. This increase is primarily attributable to increased domestic and international sales due to our new marketing program for
domestic sales being implemented in the third quarter and shipment of international orders that were delayed in the second quarter due to our requiring payment in advance of shipment.



Costs and Expenses



Operating costs and expenses
decreased $27,807, or 17.1%, to $134,535 in the third quarter of 2005 from $162,342 in 2004. As a percentage of net sales, cost of goods sold decreased to 67.0% in 2005 from 694.0% in 2004 due to increased sales and decreased manufacturing and FDA
compliance costs in 2005.



Other expenses increased $7,897, or 151.1%, to
$13,123 in 2005 from $5,226 in 2004, due to an increase in interest expense resulting from higher balances outstanding on our interest bearing debt in 2005.



Net Loss



In the third quarter of 2005, our net
loss decreased to $95,216 from a net loss of $157,878 in 2004 as a result of increased sales and reduced operating expenses.



First Nine Months of 2005 Compared to 2004



Net Sales



We had net sales of $71,972 in the
nine months ended September 30, 2005, compared with $198,970 for the same period in 2004, a decrease of $126,998, or 63.8%. This decrease is attributable to our new marketing program not being fully implemented until September 2005 and
anticipated sales to existing distributors not materializing. To date sales have been positive for the fourth quarter.



Costs and Expenses



Operating costs and expenses
increased $550,351, or 88.1%, in the first nine months of 2005 to $1,175,352 from $625,001 in 2004. The first nine months of 2005 were impacted by $627,900 of stock based compensation that was not present in 2004. During January 2005, we issued
4,830,000 shares of common stock for consulting services. Stock based compensation was recorded in the amount of $0.39 per share, or $1,883,700 in total, for these services. In July 2005, we hired a qualified valuation consultant to perform a
valuation of the Company stock. Pursuant to this valuation, the shares of stock were revalued at $0.13 per share and the stock based compensation charge was reduced to $627,900. As a percentage of net sales, cost of goods sold decreased to 72.4% in
2005 from 134.7% in 2004 due to decreased manufacturing and FDA compliance related costs in 2005.



Other expenses increased $11,535, or 43.2%, to $38,241 in 2005 from $26,706 in 2004 due to an increase in interest expense resulting from higher balances outstanding on our interest bearing debt in 2005.



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Net Loss



In the first nine months of 2005, our
net loss increased to $1,141,621, or $0.03 a share, from a net loss of $452,837 in 2004 primarily as a result of an increase in stock based compensation expense in 2005 in addition to decreased sales without a corresponding decrease in operating
costs.



Financial Condition and Liquidity



We had
available cash on September 30, 2005 of $2,278 compared to $2,978 at the end of the third quarter of 2004. Cash used in operations decreased 94.2% to $17,540 in the first nine months of 2005 from $302,302 in 2004, primarily caused by an
increase in accounts payable and accrued expenses and a reduction in inventory in 2005.



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



On April 1, 2004, we entered into a loan agreement with a private investor in the amount of $750,000. The convertible promissory note bears interest at 7.5% payable quarterly with the principal due in five years
and is secured by all of our assets. The note is convertible at the holders option into 1.5 million shares of our unregistered common stock, subject to adjustment for dilutive issuances. In connection with the loan, we also agreed to pay
the lender a $3.00 royalty on each of the 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.



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



Off-Balance Sheet Arrangements



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



Forward Looking Statements



Some of the
statements that we make in this report, including statements about our confidence in E Meds prospects and strategies and our expectations about E Meds sales expansion, are



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



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



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



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



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



| |  | the introduction of competing products by other companies;
|- |  | ----------------------------------------------------------



| |  | our ability to protect our patents, copyrights and other intellectual property rights;
|- |  | --------------------------------------------------------------------------------------



| |  | pressure on pricing from our competitors or customers;
|- |  | ------------------------------------------------------



| |  | continued availability of components for our products and stability in the cost of these components;
|- |  | ----------------------------------------------------------------------------------------------------



| |  | our reliance on subcontractors to manufacture our products;
|- |  | -----------------------------------------------------------



| |  | our reliance on independent distributors to market and sell our products;
|- |  | -------------------------------------------------------------------------



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



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



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



How to Learn More About E Med



We file annual,
quarterly and special reports and other information with the SEC. Our SEC filings are available to the public over the internet at the SECs web site at SEC.gov. You may also read and copy any document we file at the SECs public reference
room at 450 Fifth Street, N.W., Washington, D.C. 20549. You may obtain information on the operation of the SECs public reference room in Washington, D.C. by calling the SEC at 1-800-SEC-0330. To learn



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more about E Med you can also contact us directly at the address or phone number listed below or visit our website at
NeedleZap.com.



E Med Future, Inc.

794 Morrison Road

Suite 911

Columbus, Ohio 43230

Phone: 877- 855-1319

Email: info@NeedleZap.com



Item 3. Controls and Procedures



Donald
Sullivan, our chief financial officer and interim president and chief executive officer, has reviewed E Meds disclosure controls and procedures as of September 30, 2005. 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 September 30, 2005 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



We are currently
involved in a lawsuit with TransGlobal Medical Sales & Services, LLC relating to a distribution and marketing agreement we entered into with TransGlobal in April 2004. Discovery and depositions in the case have been completed and our
request for summary judgment is currently pending. The trial is presently scheduled for December 8, 2005. For additional information about the suit, please reference Item 3 of our December 31, 2004 Form 10-KSB that we filed with the
SEC on April 15, 2005.



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



Not applicable.



Item 3. Defaults Upon Senior Securities



Not applicable.



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



Not applicable.



Item 5. Other Information



Not applicable.



Item 6. Exhibits



|   |  |                                                                                                                                                                       
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|31 |  | 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: November 21, 2005 |  | /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



|                                                                                                                                                                         |  |                   |            |   |                  |   |            |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ----------------- | ---------- | - | ---------------- | - | ---------- | -
|                                                                                                                                                                         |  | September 30,2005 |            |   | December 31,2004 |  
|                                                                                                                                                                         |  | (Unaudited)       |            |   |                  |  
|ASSETS                                                                                                                                                                   |  |                   |            |   |                  |   |            |  
|                                                                                                                                                                         |  |                  
|CURRENT ASSETS                                                                                                                                                           |  |                   |            |   |                  |   |            |  
|Cash                                                                                                                                                                     |  | $                 | 2,278      |   |                  | $ | 2,810      |  
|Accounts receivable, net of allowance for doubtful account of $64,744 and $67,744, respectively                                                                          |  |                   | 6,910      |   |                  |   | 2,511      |  
|Inventory                                                                                                                                                                |  |                   | 455,012    |   |                  |   | 488,153    |  
|Prepaid expenses                                                                                                                                                         |  |                   | 8,400      |   |                  |   | 17,713     |  
|Current portion of prepaid compensation                                                                                                                                  |  |                   |            |   |                  |   | 440,000    |  
|                                                                                                                                                                         |  |                   |            |   |                  |   |            |  
|Total Current Assets                                                                                                                                                     |  |                   | 472,600    |   |                  |   | 951,187    |  
|PREPAID CONSULTING COMPENSATION                                                                                                                                          |  |                   | 495,000    |   |                  |   | 311,667    |  
|EQUIPMENT, net of depreciation of $78,078 and $60,932, respectively                                                                                                      |  |                   | 150,641    |   |                  |   | 167,787    |  
|PATENTS, net of amortization of $56,126 and $46,772, respectively                                                                                                        |  |                   | 130,962    |   |                  |   | 140,316    |  
|                                                                                                                                                                         |  |                   |            |   |                  |   |            |  
|Total Assets                                                                                                                                                             |  | $                 | 1,249,203  |   |                  | $ | 1,570,957  |  
|                                                                                                                                                                         |  |                   |            |   |                  |   |            |  
|LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)                                                                                                                           |  |                   |            |   |                  |   |            |  
|                                                                                                                                                                         |  |                  
|CURRENT LIABILITIES                                                                                                                                                      |  |                   |            |   |                  |   |            |  
|Notes payable to bank                                                                                                                                                    |  | $                 | 149,098    |   |                  | $ | 141,098    |  
|Current portion of long-term debt                                                                                                                                        |  |                   | 1,828      |   |                  |   | 1,828      |  
|Notes payable to related parties                                                                                                                                         |  |                   | 35,225     |   |                  |   | 25,000     |  
|Accounts payable                                                                                                                                                         |  |                   | 278,380    |   |                  |   | 206,611    |  
|Accounts payable to related party                                                                                                                                        |  |                   | 39,216     |   |                  |   | 25,376     |  
|Accrued expenses                                                                                                                                                         |  |                   | 144,873    |   |                  |   | 55,523     |  
|Customer deposits                                                                                                                                                        |  |                   | 100,000    |   |                  |   | 100,000    |  
|                                                                                                                                                                         |  |                   |            |   |                  |   |            |  
|Total Current Liabilities                                                                                                                                                |  |                   | 748,620    |   |                  |   | 555,436    |  
|LONG-TERM DEBT                                                                                                                                                           |  |                   |            |   |                  |   |            |  
|Convertible promissory note payable                                                                                                                                      |  |                   | 548,000    |   |                  |   | 548,000    |  
|Note payable, less current portion                                                                                                                                       |  |                   | 1,483      |   |                  |   | 2,700      |  
|                                                                                                                                                                         |  |                   |            |   |                  |   |            |  
|Total Long-Term Debt                                                                                                                                                     |  |                   | 549,483    |   |                  |   | 550,700    |  
|STOCKHOLDERS EQUITY (DEFICIT)                                                                                                                                           |  |                   |            |   |                  |   |            |  
|Common stock $0.001, par value, 50,000,000 shares authorized, 34,013,415 and 29,183,415 issued and outstanding at September 30, 2005 and
December 31, 2004, respectively |  |                   | 34,013     |   |                  |   | 29,183     |  
|Paid-in-capital                                                                                                                                                          |  |                   | 3,425,137  |   |                  |   | 2,802,067  |  
|Deficit accumulated during development stage                                                                                                                             |  |                   | (3,508,050 | ) |                  |   | (2,366,429 | )
|                                                                                                                                                                         |  |                   |            |   |                  |   |            |  
|Total Stockholders Equity (Deficit)                                                                                                                                     |  |                   | (48,900    | ) |                  |   | 464,821    |  
|                                                                                                                                                                         |  |                   |            |   |                  |   |            |  
|Total Liabilities and Stockholders Equity                                                                                                                               |  | $                 | 1,249,203  |   |                  | $ | 1,570,957  |  
|                                                                                                                                                                         |  |                   |            |   |                  |   |            |  



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



|                                           |  |                                    |            |   |                                    |   |            |                                  |  |   |                                   |   |  |                                                     |            |   |  |   |            |  
|------------------------------------------ |  | ---------------------------------- | ---------- | - | ---------------------------------- | - | ---------- | -------------------------------- |  | - | --------------------------------- | - |  | --------------------------------------------------- | ---------- | - |  | - | ---------- | -
|                                           |  | Three MonthsEndedSeptember 30,2005 |            |   | Three MonthsEndedSeptember 30,2004 |   |            | Nine MonthsEndedSeptember 302005 |  |   | Nine MonthsEndedSeptember 30,2004 |   |  | PeriodMarch 14, 1990(Inception) toSeptember 30,2005 |           
|                                           |  | (Unaudited)                        |            |   | (Unaudited)                        |   |            | (Unaudited)                      |  |   | (Unaudited)                       |   |  | (Unaudited)                                         |           
|NET SALES                                  |  | $                                  | 52,442     |   |                                    | $ | 9,690      |                                  |  | $ | 71,972                            |   |  | $                                                   | 198,870    |   |  | $ | 871,964    |  
|COSTS AND EXPENSES-                        |  |                                    |            |   |                                    |   |            |                                  |  |   |                                   |   |  |                                                     |            |   |  |   |            |  
|Cost of goods sold                         |  |                                    | 35,132     |   |                                    |   | 67,250     |                                  |  |   | 52,130                            |   |  |                                                     | 267,970    |   |  |   | 593,360    |  
|Selling, general and administrative        |  |                                    | 90,125     |   |                                    |   | 85,822     |                                  |  |   | 468,026                           |   |  |                                                     | 332,423    |   |  |   | 1,861,739  |  
|Research and development                   |  |                                    | 445        |   |                                    |   | 550        |                                  |  |   | 796                               |   |  |                                                     | 550        |   |  |   | 10,228     |  
|Stock based compensation                   |  |                                    |            |   |                                    |   |            |                                  |  |   | 627,900                           |   |  |                                                     |            |   |  |   | 1,520,233  |  
|Impairment of goodwill                     |  |                                    |            |   |                                    |   |            |                                  |  |   |                                   |   |  |                                                     |            |   |  |   | 188,500    |  
|Depreciation and amortization              |  |                                    | 8,833      |   |                                    |   | 8,720      |                                  |  |   | 26,500                            |   |  |                                                     | 24,058     |   |  |   | 134,205    |  
|                                           |  |                                    |            |   |                                    |   |            |                                  |  |   |                                   |   |  |                                                     |            |   |  |   |            |  
|Total Costs and Expenses                   |  |                                    | 134,535    |   |                                    |   | 162,342    |                                  |  |   | 1,175,352                         |   |  |                                                     | 625,001    |   |  |   | 4,308,265  |  
|                                           |  |                                    |            |   |                                    |   |            |                                  |  |   |                                   |   |  |                                                     |            |   |  |   |            |  
|NET OPERATING (LOSS)                       |  |                                    | (82,093    | ) |                                    |   | (152,652   | )                                |  |   | (1,103,380                        | ) |  |                                                     | (426,131   | ) |  |   | (3,436,301 | )
|OTHER INCOME (EXPENSE)                     |  |                                    |            |   |                                    |   |            |                                  |  |   |                                   |   |  |                                                     |            |   |  |   |            |  
|Interest and other income                  |  |                                    |            |   |                                    |   |            |                                  |  |   |                                   |   |  |                                                     |            |   |  |   | 23         |  
|Interest expense                           |  |                                    | (13,123    | ) |                                    |   | (5,226     | )                                |  |   | (38,241                           | ) |  |                                                     | (26,706    | ) |  |   | (71,772    | )
|                                           |  |                                    |            |   |                                    |   |            |                                  |  |   |                                   |   |  |                                                     |            |   |  |   |            |  
|Total Other Expenses                       |  |                                    | (13,123    | ) |                                    |   | (5,226     | )                                |  |   | (38,241                           | ) |  |                                                     | (26,706    | ) |  |   | (71,749    | )
|                                           |  |                                    |            |   |                                    |   |            |                                  |  |   |                                   |   |  |                                                     |            |   |  |   |            |  
|NET (LOSS)                                 |  | $                                  | (95,216    | ) |                                    | $ | (157,878   | )                                |  | $ | (1,141,621                        | ) |  | $                                                   | (452,837   | ) |  | $ | (3,508,050 | )
|                                           |  |                                    |            |   |                                    |   |            |                                  |  |   |                                   |   |  |                                                     |            |   |  |   |            |  
|NET (LOSS) PER COMMON SHARE -              |  |                                    |            |   |                                    |   |            |                                  |  |   |                                   |   |  |                                                     |            |   |  |   |            |  
|(Basic and diluted)                        |  | $                                  |            |   |                                    | $ | (0.01      | )                                |  | $ | (0.03                             | ) |  | $                                                   | (0.02      | ) |  | $ | (0.67      | )
|                                           |  |                                    |            |   |                                    |   |            |                                  |  |   |                                   |   |  |                                                     |            |   |  |   |            |  
|WEIGHTED AVERAGE COMMON SHARES OUTSTANDING |  |                                    | 34,013,415 |   |                                    |   | 27,209,502 |                                  |  |   | 33,765,723                        |   |  |                                                     | 26,389,295 |   |  |   | 5,697,854  |  
|                                           |  |                                    |            |   |                                    |   |            |                                  |  |   |                                   |   |  |                                                     |            |   |  |   |            |  



See accompanying notes
to consolidated financial statements.



F-2



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##### Table of Contents

E MED FUTURE, INC. AND SUBSIDIARY

Formerly Micro-Economics, Inc.

(A Development Stage Company)



CONSOLIDATED STATEMENTS OF CASH FLOWS



|                                                                         |  |                                |            |   |                                                      |   |          |             |  |   |            |  
|------------------------------------------------------------------------ |  | ------------------------------ | ---------- | - | ---------------------------------------------------- | - | -------- | ----------- |  | - | ---------- | -
|                                                                         |  | Nine Months EndedSeptember 30, |            |   | PeriodMarch 14, 1990(Inception) toSeptember 30, 2005 |  
|                                                                         |  | 2005                           |            |   | 2004                                                 |   |         
|                                                                         |  | (Unaudited)                    |            |   | (Unaudited)                                          |   |          | (Unaudited) | 
|CASH FLOWS FROM OPERATING ACTIVITIES                                     |  |                                |            |   |                                                      |   |          |             |  |   |            |  
|Net loss                                                                 |  | $                              | (1,141,621 | ) |                                                      | $ | (452,837 | )           |  | $ | (3,508,050 | )
|Adjustments to reconcile net loss to net cash from operating activities: |  |                                |            |   |                                                      |   |          |             |  |   |            |  
|Depreciation and amortization                                            |  |                                | 26,500     |   |                                                      |   | 24,058   |             |  |   | 134,205    |  
|Stock based compensation                                                 |  |                                | 627,900    |   |                                                      |   |          |             |  |   | 1,520,233  |  
|Research and development costs                                           |  |                                |            |   |                                                      |   |          |             |  |   | 8,808      |  
|Start-up costs                                                           |  |                                |            |   |                                                      |   |          |             |  |   | 19,177     |  
|Amortization of prepaid expense                                          |  |                                |            |   |                                                      |   | 32,358   |             |  |   | 30,600     |  
|Amortization of prepaid compensation                                     |  |                                | 256,667    |   |                                                      |   |          |             |  |   | 256,667    |  
|Impairment of goodwill                                                   |  |                                |            |   |                                                      |   |          |             |  |   | 188,500    |  
|Changes in operating assets and liabilities:                             |  |                                |            |   |                                                      |   |          |             |  |   |            |  
|Accounts receivable                                                      |  |                                | (4,399     | ) |                                                      |   | (50,090  | )           |  |   | (6,910     | )
|Inventory                                                                |  |                                | 33,141     |   |                                                      |   | (121,902 | )           |  |   | (303,997   | )
|Prepaid expenses                                                         |  |                                | 9,313      |   |                                                      |   | (8,474   | )           |  |   | (8,400     | )
|Accounts payable                                                         |  |                                | 71,769     |   |                                                      |   | 187,473  |             |  |   | 278,380    |  
|Accounts payable to related party                                        |  |                                | 13,840     |   |                                                      |   | (47,099  | )           |  |   | 39,216     |  
|Accrued expenses                                                         |  |                                | 89,350     |   |                                                      |   | 134,211  |             |  |   | 144,873    |  
|Customer deposits                                                        |  |                                |            |   |                                                      |   |          |             |  |   | 100,000    |  
|                                                                         |  |                                |            |   |                                                      |   |          |             |  |   |            |  
|Net Cash Used in Operating Activities                                    |  |                                | (17,540    | ) |                                                      |   | (302,302 | )           |  |   | (1,106,698 | )
|                                                                         |  |                                |            |   |                                                      |   |          |             |  |   |            |  
|CASH FLOWS FROM INVESTING ACTIVITIES                                     |  |                                |            |   |                                                      |   |          |             |  |   |            |  
|Purchases of property and equipment                                      |  |                                |            |   |                                                      |   | (56,858  | )           |  |   | (94,806    | )
|                                                                         |  |                                |            |   |                                                      |   |          |             |  |   |            |  
|Net Cash Used in Investing Activities                                    |  |                                |            |   |                                                      |   | (56,858  | )           |  |   | (94,806    | )
|                                                                         |  |                                |            |   |                                                      |   |          |             |  |   |            |  
|CASH FLOWS FROM FINANCING ACTIVITIES                                     |  |                                |            |   |                                                      |   |          |             |  |   |            |  
|Bank overdraft                                                           |  |                                |            |   |                                                      |   |          |             |  |   |            |  
|Initial capitalization                                                   |  |                                |            |   |                                                      |   |          |             |  |   | 1,666      |  
|Cash acquired in acquisition                                             |  |                                |            |   |                                                      |   |          |             |  |   | 200,000    |  
|Notes payable to bank                                                    |  |                                | 8,000      |   |                                                      |   |          |             |  |   | 149,098    |  
|Notes payable                                                            |  |                                | (1,217     | ) |                                                      |   | 4,696    |             |  |   | 3,311      |  
|Convertible promissory note payable                                      |  |                                |            |   |                                                      |   | 175,000  |             |  |   | 548,000    |  
|Notes payable to related party                                           |  |                                | 10,225     |   |                                                      |   | (22,001  | )           |  |   | 301,707    |  
|                                                                         |  |                                |            |   |                                                      |   |          |             |  |   |            |  
|Net Cash Provided by Financing Activities                                |  |                                | 17,008     |   |                                                      |   | 157,695  |             |  |   | 1,203,782  |  
|                                                                         |  |                                |            |   |                                                      |   |          |             |  |   |            |  
|NET INCREASE (DECREASE) IN CASH                                          |  |                                | (532       | ) |                                                      |   | (201,465 | )           |  |   | 2,278      |  
|CASH, BEGINNING OF YEAR                                                  |  |                                | 2,810      |   |                                                      |   | 204,443  |             |  |   |            |  
|                                                                         |  |                                |            |   |                                                      |   |          |             |  |   |            |  
|CASH, END OF PERIOD                                                      |  | $                              | 2,278      |   |                                                      | $ | 2,978    |             |  | $ | 2,278      |  
|                                                                         |  |                                |            |   |                                                      |   |          |             |  |   |            |  



See accompanying notes
to consolidated financial statements.



F-3



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##### Table of Contents

E MED FUTURE, INC. AND SUBSIDIARY

Formerly Micro-Economics, Inc.

(A Development Stage Company)



CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)



|                                                                                                                     |  |                                |         |                                                       |   |             |  |   |          
|-------------------------------------------------------------------------------------------------------------------- |  | ------------------------------ | ------- | ----------------------------------------------------- | - | ----------- |  | - | ---------
|                                                                                                                     |  | Nine Months EndedSeptember 30, |         | PeriodMarch 14, 1990(Inception) to September 30, 2005
|                                                                                                                     |  | 2005                           |         | 2004                                                  |  
|                                                                                                                     |  | (Unaudited)                    |         | (Unaudited)                                           |   | (Unaudited)
|Supplemental Disclosure of Cash Flows Information:                                                                   |  |                                |         |                                                       |   |             |  |   |          
|Interest paid                                                                                                        |  | $                              | 16,729  |                                                       | $ | 8,433       |  | $ | 40,511   
|                                                                                                                     |  |                                |        
|Supplemental Schedule of Non-Cash Operating and Financing Activities:                                                |  |                                |         |                                                       |   |             |  |   |          
|NeedleZap Partnership Contribution of Assets to Company                                                              |  |                                |         |                                                       |   |             |  |   |          
|Inventory                                                                                                            |  |                                |         |                                                       |   |             |  |   | 151,015  
|Equipment                                                                                                            |  |                                |         |                                                       |   |             |  |   | 133,912  
|Patent                                                                                                               |  |                                |         |                                                       |   |             |  |   | 187,089  
|Issuance of common stock for consulting services                                                                     |  |                                | 627,900 |                                                       |   |             |  |   | 1,520,233
|Issuance of 1,250,000 shares valued at $0.3108 per share to acquire MSTI and allocation of purchase price to license |  |                                |         |                                                       |   |             |  |   | 188,500  
|Issuance of common stock in payment of loan                                                                          |  |                                |         |                                                       |   | 266,484     |  |   | 266,484  
|Issuance of 2,000,000 shares at $0.44 per share for consulting agreement                                             |  |                                |         |                                                       |   | 880,000     |  |   | 880,000  



See accompanying notes
to consolidated financial statements.



F-4



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##### Table of Contents

E MED FUTURE, INC. AND SUBSIDIARY

Formerly Micro-Economics, Inc.

(A Development Stage Company)



NOTES TO CONDENSED FINANCIAL STATEMENTS



NOTE 1 - BASIS OF PRESENTATION



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



NOTE 2 - ISSUANCE OF COMMON STOCK



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



NOTE 3 - GOING CONCERN



As indicated in the accompanying financial statements, the Company had
net operating losses of $3,508,050 since inception and is considered a company in the development stage. Managements plans include raising capital through short term financing to fund future operations and generating revenue through its
business. Failure to raise capital, keep its products and manufacturing facilities in FDA compliance, and generate sales revenues could result in the Company having to curtail or cease operations. Additionally, even if the Company does raise
sufficient capital to support its operating expenses and generate revenues, there can be no assurances that the revenue will be sufficient to enable it to develop business to a level where it will generate profits and cash flows from operations.
These matters raise substantial doubt about the Companys ability to continue as a going concern. However, the accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and
satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the
Company be unable to continue as a going concern.



NOTE 4 -TERMINATION OF LICENSE AND DISTRIBUTION AGREEMENT



In July 2005, the Company terminated its license and distribution agreement, entered into September 2004, with ITD Development Solutions, Inc. (ITD), whereby the Company had granted ITD the exclusive right to manufacture, distribute and
sell the NeedleZap unit in Pakistan and the United Arab Emirates. In connection with this agreement, the Company entered into a two year consulting agreement with ITD president Patrick Downs for 2,000,000 shares of the Companys common stock
valued at $880,000. At September 30, 2005, the unamortized balance is $495,000. The Company is trying to recover shares of its common stock representing the unamortized balance. In the opinion of management, it is likely that the shares will be
recovered. Once recovered, the shares will be retired against the unamortized balance capitalized on the Balance Sheet. Therefore at September 30, 2005, the Company has not established a reserve against the unamortized balance because, in the
opinion of management, a loss is not probable in accordance with Statement of Accounting Standards No. 5. If the Company is unable to recover the shares, the unamortized balance of $495,000 will be written off in the statement of operations.



F-5