|                            |                                 |
|---------------------------------|--------------------------------------|
|                            |                                 |
| Minnesota                  | 41-1430130                           |
| (State or other jurisdiction of | (I.R.S. Employer Identification No.) |
| incorporation or organization)  |                                 |

----

|                                 |                                                                                                                    |   |
|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------|--------|
| PART I – FINANCIAL INFORMATION | Page                                                                                                                    |
|                                 |                                                                                                                    |   |
| Item 1.                              | Financial Statements                                                                                                    |   |
|                                 | Condensed Consolidated Balance Sheets – March 31, 2013 (unaudited) and June 30, 2012                              | 3      |
|                                 | Condensed Consolidated Statements of Operations – Three and Nine Months Ended March 31, 2013 and 2012 (unaudited) | 34     |
|                                 | Condensed Consolidated Statements of Cash Flows - Nine Months Ended March 31, 2013 and 2012 (unaudited)                 | 5      |
|                                 | Notes to Condensed Consolidated Financial Statements (unaudited)                                                        | 6      |
| Item 2.                              | Management’s Discussion and Analysis of Financial Condition and Results of Operations                             | 17     |
| Item 3.                              | Quantitative and Qualitative Disclosures about Market Risk                                                              | 25     |
| Item 4.                              | Controls and Procedures                                                                                                 | 25     |
|                                 |                                                                                                                    |   |
| PART II – OTHER INFORMATION    |                                                                                                                    |
|                                 |                                                                                                                    |
| Item 1.                              | Legal Proceedings                                                                                                       | 26     |
| Item 1A.                             | Risk Factors                                                                                                            | 26     |
| Item 2.                              | Unregistered Sales of Equity Securities and Use of Proceeds                                                             | 26     |
| Item 3.                              | Defaults upon Senior Securities                                                                                         | 27     |
| Item 4.                              | Mine Safety Disclosures                                                                                                 | 27     |
| Item 5                               | Other Information                                                                                                       | 28     |
| Item 6.                              | Exhibits                                                                                                                | 28     |

----

| CAPITAL GROUP HOLDINGS, INC.          |
|---------------------------------------|
| CONDENSED CONSOLIDATED BALANCE SHEETS |

|                                                                                        |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  | March 31, 2013                                                                                                                                                                 |                                                                                                                                                                      | June 30, 2012                                                                                                                                                             |
|---------------------------------------------------------------------------------------------|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                        |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  | (unaudited)                                                                                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |
| ASSETS                                                                                      |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  |                                                                                                                                                                           |                                                                                                                                                                      |                                                                                                                                                                      |
| Current Assets:                                                                             |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  |                                                                                                                                                                           |                                                                                                                                                                      |
|    Cash and cash equivalents                                                 |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |  $                       817,289                                  |                                                                                                                                                                                                                                  |  $                 8,452                                                             |
|    Accounts receivable, net of allowance for doubtful accounts and discounts |                 |                           560,015 |   |                             -                                                             |
|    Inventory supplies                                                        |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                             21,105                                                        |                                                                                                                                                                           |                             - |
|    Prepaid expenses                                                          |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                           333,477                                                                   |                                                                                                                                                                           |                             - |
|    Other assets                                                              |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                             15,000                                                        |                                                                                                                                                                           |                     7,500                                             |
|                                                                                        |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  |                                                                                                                                                                           |                                                                                                                                                                      |                                                                                                                                                                      |
|                                                                                        | Total current assets |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                        1,746,886                                                                                   |                                                                                                                                                                           |                   15,952                                                        |
|                                                                                        |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  |                                                                                                                                                                           |                                                                                                                                                                      |                                                                                                                                                                      |
|    Property and equipment, net of depreciation                               |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                           993,070 |                                                                                                                                                                                      |                     7,842                                                                                                         |
|    Prepaid expenses                                                          |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                           302,694                                                                   |                                                                                                                                                                           |                             - |
|    Intangible assets, net of amortization                                    |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                        4,570,784                 |                                                                                                                                                                                      |                             -                                                             |
|    Trade name                                                                |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                           300,000                                                                   |                                                                                                                                                                           |                             - |
|    Goodwill                                                                  |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  |                        5,546,909                            |                                                                                                                                                                      |                             - |
|    Note receivable                                                           |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                       - |                                                                                                                                                                           |                   10,000                                                        |
|    Deposits                                                                  |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  |                             83,203 |                                                                                                                                                                      |                             - |
|                                                                                        |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  |                                                                                                                                                                           |                                                                                                                                                                      |                                                                                                                                                                      |
| TOTAL ASSETS                                                                                |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |  $                  13,543,546                                                                                                         |                                                                                                                                                                           |  $               33,794                                                                   |
|                                                                                        |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  |                                                                                                                                                                           |                                                                                                                                                                      |                                                                                                                                                                      |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)                                           |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |
| Current Liabilites:                                                                         |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  |                                                                                                                                                                           |                                                                                                                                                                      |
|    Accounts payable                                                          |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |  $                       644,319                                                                              |                                                                                                                                                                           |  $             181,004                                                                              |
|    Accounts payable to related party                                         |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                               4,165 |                                                                                                                                                                                                                                  |                     4,165                                                  |
|    Accrued expenses and payroll                                              |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                        1,416,218                                       |                                                                                                                                                                                                                                  |                 943,871                                                                        |
|    Notes payable and line of credit - current portion                        |                 |                                                                                                                                                                |   |                        1,169,660                                                                                   |                                                                                                                                                                |                             -                 |
|    Convertible notes payable, net of discounts and warrants                  |                 |                                                                                                                                                                |   |                                       - |                                                                                                                                                                |                     4,944                                                             |
|    Financing leases, current                                                 |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                               3,029 |                                                                                                                                                                                                                                  |                             -      |
|    Deferred taxes                                                            |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                             92,450                                                        |                                                                                                                                                                           |                             - |
| Total current liabilities                                                                   |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                        3,329,841                                                                                   |                                                                                                                                                                           |              1,133,984                                                                                   |
|                                                                                        |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  |                                                                                                                                                                           |                                                                                                                                                                      |                                                                                                                                                                      |
| Long-Term Liabilities:                                                                      |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  |                                                                                                                                                                           |                                                                                                                                                                      |
|    Notes payable                                                             |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                             51,889                                                        |                                                                                                                                                                           |                             - |
|    Deferred income taxes                                                     |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                           138,579                                                                   |                                                                                                                                                                           |                             - |
|    Marketing advance                                                         |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                       - |                                                                                                                                                                           |                 190,000                                                                   |
|                                                                                        |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  |                                                                                                                                                                           |                                                                                                                                                                      |                                                                                                                                                                      |
| TOTAL LIABILITIES                                                                           |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                        3,520,309                                                                                   |                                                                                                                                                                           |              1,323,984                                                                                   |
|                                                                                        |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  |                                                                                                                                                                           |                                                                                                                                                                      |                                                                                                                                                                      |
| CONTINGENCIES                                                                               |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                       - |                                                                                                                                                                           |                             - |
|                                                                                        |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  |                                                                                                                                                                           |                                                                                                                                                                      |                                                                                                                                                                      |
| STOCKHOLDERS' EQUITY (DEFICIENCY)                                                           |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  |
|    Common stock, $0.01 par value, 300,000,000 shares authorized              |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |
|   86,600,221 and 56,131,121 shares issued and outstanding as of March 31, 2013    |                 |                                                                                                                                                                |   |
|       and June 30, 2012, respectively                         |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                           866,002                       |                                                                                                                                                                                                                                  |                 561,311                                                                        |
|    Additional paid-in capital                                                |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                      22,305,306                                                  |                                                                                                                                                                                                                                  |              9,318,200                                                                                        |
|    Common stock subscribed                                                   |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                             80,000            |                                                                                                                                                                                                                                  |                 260,700                                                                        |
|    Accumulated deficit                                                       |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                     (13,228,071)                                                                                                  |                                                                                                                                                                           |          (11,430,401)                                                                                                        |
|                                                                                        |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  |                                                                                                                                                                           |                                                                                                                                                                      |                                                                                                                                                                      |
| Total stockholders' equity (deficiency)                                                     |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                      10,023,237                            |                                                                                                                                                                                      |            (1,290,190)                                                                                                                                                         |
|                                                                                        |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  |                                                                                                                                                                           |                                                                                                                                                                      |                                                                                                                                                                      |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)                                     |                 |  $                  13,543,546                                       |   |  $               33,794                                                                                                                               |
|                                                                                        |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |                                                                                                                                                                |                                                                                                                                                                                      |                                                                                                                                                                                                                                  |                                                                                                                                                                           |                                                                                                                                                                      |                                                                                                                                                                      |
| See accompanying notes to condensed consolidated financial statements                       |                 |                                                                                                                                                                |   |                                                                                                                                                                                                                                  |

----

| CAPITAL GROUP HOLDINGS, INC.                                      |
|-------------------------------------------------------------------|
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)  |

|                                                                  |                                                                                                                                         | Three Months Ended                                                                                                                                                                     |                                                                                                                             |                                                                                                                                                                  | Nine Months Ended                                                                                                                            |                                                                                                       |                                                                                                                |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|
|                                                                  |                                                                                                                                         | 3/31/2013                                                                                                                                                                              |                                                                                                                             | 3/31/2012                                                                                                                                                             |                                                                                                                                         | 3/31/2013                                                                                                  |                                                                                                                | 3/31/2012 |
|                                                                  |                                                                                                                                         |                                                                                                                                                                                   |                                                                                                                             |                                                                                                                                                                  |                                                                                                                                         |                                                                                                       |                                                                                                                |   |
| Revenues                                                              |                                                                                                                                         |  $                2,084,381                                                                            |                                                                                                                             |  $                           - |                                                                                                                                         |  $               4,328,835 |                                                                                                                |  $                           - |
|                                                                  |                                                                                                                                         |                                                                                                                                                                                   |                                                                                                                             |                                                                                                                                                                  |                                                                                                                                         |                                                                                                       |                                                                                                                |   |
| Cost of Revenues                                                      |                                                                                                                                         | 1,391,261                                                                                                                                                                              |                                                                                                                             |                            -   |                                                                                                                                         | 3,044,947                                                                                                  |                                                                                                                |                            - |
| Gross profit                                                          |                                                                                                                                         |                   693,120                                                                    |                                                                                                                             |                            -   |                                                                                                                                         | 1,283,888                                                                                                  |                                                                                                                |                            - |
| Expenses:                                                             |                                                                                                                                         |                                                                                                                                                                                   |                                                                                                                             |                                                                                                                                                                  |                                                                                                                                         |                                                                                                       |                                                                                                                |   |
| General and administrative                                            |                                                                                                                                         |                   960,858                                                                    |                                                                                                                             | 145,949                                                                                                                                                               |                                                                                                                                         | 2,644,381                                                                                                  |                                                                                                                | 444,980 |
| Amortization of intangible                                            |                                                                                                                                         |                      158,171                                                  |                                                                                                                             |                            -   |                                                                                                                                         | 287,550                                                                                                    |                                                                                                                |                            - |
| Depreciation expense                                                  |                                                                                                                                         |                     66,335                                                         |                                                                                                                             |                            -   |                                                                                                                                         | 124,461                                                                                                    |                                                                                                                |                            - |
| Total operating expense                                               |                                                                                                                                         |                   1,185,364                                                                  |                                                                                                                             | 145,949                                                                                                                                                               |                                                                                                                                         | 3,056,392                                                                                                  |                                                                                                                | 444,980 |
| Operating income (loss)                                               |                                                                                                                                         |                    (492,244)                                                            |                                                                                                                             | (145,949)                                                                                                                                                             |                                                                                                                                         | (1,772,504)                                                                                                |                                                                                                                | (444,980) |
| Other Income and (Expense)                                            |                                                                                                                                         |                                                                                                                                                                                   |                                                                                                                             |                                                                                                                                                                  |                                                                                                                                         |                                                                                                       |                                                                                                                |   |
| Interest income                                                       |                                                                                                                                         |                               28 |                                                                                                                             | -                                                                                                                                                                     |                                                                                                                                         | 41                                                                                                         |                                                                                                                | 632 |
| Interest expense                                                      |                                                                                                                                         |                      (13,252)                                                 |                                                                                                                             | (3,243)                                                                                                                                                               |                                                                                                                                         | (25,207)                                                                                                   |                                                                                                                | (20,663) |
| Other                                                                 |                                                                                                                                         |  -                                                                                                                                                                                |                                                                                                                             | -                                                                                                                                                                     |                                                                                                                                         | -                                                                                                          |                                                                                                                | - |
| Total other income (expense)                                          |                                                                                                                                         |                      (13,224)                                                 |                                                                                                                             | (3,243)                                                                                                                                                               |                                                                                                                                         | (25,166)                                                                                                   |                                                                                                                | (20,031) |
| Income (loss) before income taxes                                     |                    (505,468)                  |                                                                                                                                                                                   | (149,192)                                                                                                                        |                                                                                                                                                                  | (1,797,670)                                                                                                                                  |                                                                                                       | (465,011)                                                                                                           |
| Provision for taxes                                                   |                                                                                                                                         |  -                                                                                                                                                                                |                                                                                                                             | -                                                                                                                                                                     |                                                                                                                                         | -                                                                                                          |                                                                                                                | - |
| Net income (loss)                                                     |                                                                                                                                         | $                (505,468)                                                                             |                                                                                                                             |  $              (149,192)                                                                  |                                                                                                                                         |  $             (1,797,670)           |                                                                                                                |  $           (465,011) |
| Net loss per share, basic and diluted                                 |  $                      (0.01) |                                                                                                                                                                                   |  $                    (0.00) |                                                                                                                                                                  |  $                      (0.02) |                                                                                                       |  $                 (0.01) |
| Weighted average common shares outstanding - basic and diluted        |                 85,742,720                                   |                                                                                                                                                                                   | 55,947,791                                                                                                                       |                                                                                                                                                                  |                 77,902,029                                   |                                                                                                       | 55,767,683                                                                                                          |
|                                                                  |                                                                                                                                         |                                                                                                                                                                                   |                                                                                                                             |                                                                                                                                                                  |                                                                                                                                         |                                                                                                       |                                                                                                                |   |
| See accompanying notes to condensed consolidated financial statements |                                                                                                                                         |                                                                                                                                                                                   |                                                                                                                             |                                                                                                                                                                  |

----

|                                                                  |                                                               |   |                                                                                                          | For The Nine Months Ended 3/31/2013                                                                                                                                       | For The nine Months Ended 3/31/2012                                                                                                                                                         |
|-----------------------------------------------------------------------|--------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES                      |                                                               |   |                (203,193)           |                   (226,757)                                                     |
|                                                                  |                                                               |   |                                                                                                          |                                                                                                                                                                      |                                                                                                                                                                                        |
| CASH FLOWS FROM INVESTING ACTIVITIES                                  |                                                               |   |                                                                                                          |                                                                                                                                                                      |
|                                                                  | Cash acquired with purchased business                              |   |                                                                                                          |                  563,728                                                             |                                - |
|                                                                  | Purchase of property and equipment                                 |   |                                                                                                          |                (347,485)                                                                       |                                - |
|                                                                  | Payment of note receivable                                         |   |                                                                                                          |                             - |                     (10,000)                                                            |
|                                                                  | Proceeds from sale of property and equipment                       |   |                                                                                                          |                             - |                           437                             |
| CASH  PROVIDED (USED) BY INVESTING ACTIVITIES               |                                                               |   |                  216,243 |                       (9,563)                               |
|                                                                  |                                                               |   |                                                                                                          |                                                                                                                                                                      |                                                                                                                                                                                        |
| CASH FLOWS FROM FINANCING ACTIVITIES                                  |                                                               |   |                                                                                                          |                                                                                                                                                                      |
|                                                                  | Borrowings                                                         |   |                                                                                                          |                  806,719                                                             |                        3,498                                             |
|                                                                  | Payments on notes payable                                          |   |                                                                                                          |                  (21,113)                                                            |                                - |
|                                                                  | Payments on capital lease                                          |   |                                                                                                          |                  (44,819)                                                            |                                - |
|                                                                  | Loans to Shareholders                                              |   |                                                                                                          |                  (15,000)                                                            |                                - |
|                                                                  | Issuance of Common Stock and collection on subscription receivable |   |                                                                                                          |                    70,000                                                  |                      90,000                                                        |
|                                                                  | Proceeds from stock subscribed                                     |   |                                                                                                          |                             - |                    142,700                                                                   |
| CASH PROVIDED BY FINANCING ACTIVITIES                                 |                                                               |   |                  795,787 |                    236,198                                                 |
| NET CHANGE IN CASH                                                    |                                                               |   |                  808,837 |                          (122)               |
| CASH BALANCES                                                         |                                                               |   |                                                                                                          |                                                                                                                                                                      |
|                                                                  | Beginning of period                                                |   |                                                                                                          |                      8,452                                       |                           339                             |
|                                                                  | End of period                                                      |   |                                                                                                          |  $              817,289                                                                        |  $                       217                                        |
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND                     |                                                               |   |                                                                                                          |                                                                                                                                                                      |
|                                                                  | FINANCING ACTIVITIES                                               |   |                                                                                                          |                                                                                                                                                                      |                                                                                                                                                                                        |
|                                                                  | Stock issued for director's fees                                   |   |                                                                                                          |  $                90,000                                                             |  $                            -            |
|                                                                  | Stock issued in conjunction with consulting contracts net of       |   |                                                                                                          |                                                                                                                                                                      |                                                                                                                                                                                        |
|                                                                  |    unamortized expenses of $536,027                 |   |                                                                                                          |  $              135,570                                                                        |  $                            -            |
|                                                                  | Purchase of Alliance Urgent Care, P.L.L.C from MCS Ventures I      |   |                                                                                                          |                                                                                                                                                                      |                                                                                                                                                                                        |
|                                                                  |    through VII, P.C. for stock                      |   |                                                                                                          |  $         12,000,000                                                                                                   |  $                            -            |
|                                                                  | Common stock issued for conversion of note and accrued interest    |   |                                                                                                          |  $                  5,600                                                  |  $                            -            |
|                                                                  | Shares issued for subscription receivable                          |   |                                                                                                          |  $                19,243                                                             |  $                            -            |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                     |                                                               |   |                                                                                                          |                                                                                                                                                                      |
| CASH PAID DURING THE PERIOD FOR:                                      |                                                               |   |                                                                                                          |                                                                                                                                                                      |
|                                                                  | Interest                                                           |   |                                                                                                          |  $                  9,499                                                  |  $                            -            |
|                                                                  | Income taxes                                                       |   |                                                                                                          |  $                         -            |  $                            -            |
|                                                                  |                                                               |   |                                                                                                          |                                                                                                                                                                      |                                                                                                                                                                                        |
| See accompanying notes to condensed consolidated financial statements |                                                               |   |                                                                                                          |                                                                                                                                                                      |

----

| Goodwill                           |               |                                                    |                                                    |  $  5,546,909                                 |
|------------------------------------|--------------------|---------------------------------------------------------|---------------------------------------------------------|--------------------------------------------------------------|
| Trade Name                         |               |                                                    |         300,000 |
| Customer Related Intangibles       |               |      1,900,000                 |
| Process Related Intangibles        |               |      2,900,000                 |
| Liabilities Assumed                |               |                                                    |       (860,000)           |
| Deferred Income Tax                |               |       (231,109)           |
| Cash                               |               |                                                    |                                                    |         562,800      |
| Receivables                        |               |                                                    |         573,100 |
| Other Receivables                  |               |                                                    |         105,000 |
| Prepaid Expenses                   |               |                                                    |         219,700 |
| Property and Equipment             |               |         667,200 |
| Deposits                           |               |                                                    |                                                    |          65,700 |
| Note Receivable - Capital Group    |               |         250,700 |
|                               |               |                                                    |                                                    |                                                         |
| Total Value of Common Stock Issued |  $ 12,000,000 |

|                          |   |                                                                      |   | March 31, 2013                                                                                                |   | June 30, 2012                                                      |
|-------------------------------|--------|---------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|
|                          |   |                                                                      |   |                                                                                                          |   |                                                               |
| Medical and Office Equipment  |   |  $        649,168            |   |  $       18,472                                                       |
| Tennant Improvements          |   |            527,891 |   |                   - |
| Less Accumulated Depreciation |   |           (183,989)     |   |         (10,630)                                                      |
|                          |   |                                                                      |   |                                                                                                          |   |                                                               |
|                          |   |                                                                      |   |  $        993,070                                                |   |  $         7,842 |
|                          |   |                                                                      |   |                                                                                                          |   |                                                               |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                      |    | March 31, 2013                                                                                                                                                            |    | June 30, 2012                                                                                                                                                             |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                      |    |                                                                                                                                                                      |    |                                                                                                                                                                      |
| Line of credit with Wells Fargo Bank (discussed below)                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                      | $       |                   943,619                                                       |  $ |                             - |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                      |    |                                                                                                                                                                      |    |                                                                                                                                                                      |
| Financing lease to a bank. interest at 8% per annum. with monthly payments of $3,050. Matures on April 30, 2013. Collateralized by                                                                                                                                                                                                                                                                                                                                                                                |                       3,029                                 |    |                             - |
| equipment, inventory and receivables of Alliance Urgent Care. The Note is personally guaranteed by Michael Blumhoff, M D. The Sellers under indemnification provisions of the Asset Purchase Agreement.  Company assumed liability for any guarantees of Sellers under indemnification provisions of the Asset Purchase Agreement.                                                                                                                                                                      |                             - |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                      |    |                                                                                                                                                                      |    |                                                                                                                                                                      |
| Promissory note, 8% per annum  due on October 17, 2013.  The note has a contingent beneficial conversion feature, which will be                                                                                                                                                                                                                                                                                                                                                               |                   117,750                                                       |    |                                                                                                                                                                      |
| effective in July 2013 if the note is not paid prior to that time. During the six month period after the effective date of the note,  prior to the beneficial conversion date the Company has the right to pay off any unpaid principal and interest at premiums of115%, 120%, 130% and 135% , if the note is paid off within 30, 90, 120 and 180 days, respectively from the date of issue.  The note contains certain other covenant and restrictions on the Company and is unsecured. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                      |    |                                                                                                                                                                      |    |                                                                                                                                                                      |
| Promissory note due on June 30, 2013 with interest at 10% per annum. Note has a contingent conversion feature, which becomes                                                                                                                                                                                                                                                                                                                                                                                      |                     75,000                                            |    |                                                                                                                                                                      |
| effective if the note is not paid at maturity. The conversion is based upon the average five day closing trading value prior todate of conversion.  The note is unsecured.                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                      |    |                                                                                                                                                                      |    |                                                                                                                                                                      |
| Note payable to a bank. Interest at 4.95% per annum, with monthly payments of $2,835. Matures on November 1, 2015, collateralized                                                                                                                                                                                                                                                                                                                                                                                 |                     85,180                                            |    |                             - |
| by equipment, inventory and receivables of Alliance Urgent Care. The Note is personally guaranteed by Michael Blumhoff, MD. The Company assumed liability for any guarantees of Sellers under indemnification provisions of the Asset Purchase Agreement.                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                      |    |                1,224,578                                                                       |    |                             - |
| Less: current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                      |    |               (1,172,689)                                                                           |    |                             - |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                      |  $ |                     51,889                                            |  $ |                             - |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                      |    |                                                                                                                                                                      |    |                                                                                                                                                                      |

|                              |   |                                                                              |                                                                                        |                                                      | 2013                                                                           |   | 2012                                                      |
|-----------------------------------|--------|-----------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|-----------------------------------------------------------|--------------------------------------------------------------------------------|--------|-----------------------------------------------------------|
| Common Stock Subscribed           |   |                                                                              |               766,667 |                                                      |                                                                           |
| Warrants to purchase common stock |   |             1,962,214 |                                                                                        |         2,562,214 |
| Convertible promissory notes      |   |                                                                              |                                                                                        |                                                      |             20,000 |
| Share price guarantee-short term  |   |           18,267,925            |                                                                                        |                                                      |
| Share price guarantee-long term   |   |                                                                              |         133,900,000                                 |                                                      |                                                                           |
|                              |   |                                                                              |                                                                                        |                                                      |         154,896,806                    |   |         2,582,214 |

|                             |   | Shares Under Warrants                                                                                                     | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life                                                                                     |  Aggregate Intrinsic Value |
|----------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------|
|                             |   |                                                                                                                      |                            |                                                                                                                            |                            |   |   |   |   |   |
| Outstanding as of June 30, 2012  |   |    2,562,214                                                                                               |                            |  $             0.25                                       |                            |   |   | 1.25 Years |   |   |
| Granted                          |   |                     - |                            |                      - |                            |   |   |   |   |   |
| Expired                          |   |                     - |                            |                      - |                            |   |   |   |   |   |
| Exercised                        |   |                     - |                            |                      - |                            |   |   |   |   |   |
| Outstanding as of March 31, 2013 |   |    1,962,214                                                                                               |                            |  $             0.25                                       |                            |   |   | 4.49 Months |   |  $                            - |
| Exercisable as of March 31, 2013 |   |    1,962,214                                                                                               |                            |  $             0.25                                       |                            |   |   | 4.49 Months |   |  $                            - |

| For the year ended June 30, | Amount                                                                    |
|-----------------------------|---------------------------------------------------------------------------|
| 2014                        |  $        671,434            |
| 2015                        |            705,567 |
| 2016                        |            717,507 |
| 2017                        |            740,281 |
| 2018                        |            760,723 |
| Thereafter                  |         2,078,293                 |
|                        |  $     5,673,805                            |

| Operating and Capital Leases |   |
|------------------------------|--------|
| Federal Expiration           |   | Amount |
| 2027                         |   |   | $24,000 |
| 2028                         |   |   | 812,000 |
| 2029                         |   |   | 262,000 |
| 2030                         |   |   | 1,068,000 |
| 2031                         |   |   | 3,897,000 |
| 2032                         |   |   | 318,000 |
| 2033                         |   |   | 1,797,000 |
|                         | Total  |   | $8,178,000 |

----

| ·   | our current lack of working capital; |
|--------------------|--------------------------------------|

| ·   | inability to raise additional financing; |
|--------------------|------------------------------------------|

| ·   | the fact that our accounting policies and methods are fundamental to how we report our financial condition and results of operations, and they may require our management to make estimates about matters that are inherently uncertain; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | deterioration in general or regional economic conditions; |
|--------------------|-----------------------------------------------------------|

| ·   | adverse state or federal legislation or regulation that increases the costs of compliance, or adverse findings by a regulator with respect to existing operations; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | inability to efficiently manage our operations; |
|--------------------|-------------------------------------------------|

| ·   | inability to achieve future sales levels or other operating results; and |
|--------------------|--------------------------------------------------------------------------|

| ·   | the unavailability of funds for capital expenditures. |
|--------------------|-------------------------------------------------------|

| ·   | Immediate access to consultations 24/7/365 |
|--------------------|--------------------------------------------|

| ·   | Treatment for non-emergency ailments (cold & flu, allergies, sinus problems, bronchitis, etc.) |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | Telephonic or live video consultations over a broadband connection |
|--------------------|--------------------------------------------------------------------|

| ·   | Highly secure HIPAA compliant electronic health record (EHR) storage and retrieval |
|--------------------|------------------------------------------------------------------------------------|

| ·   | 24-hour customer service agents |
|--------------------|---------------------------------|

| ·   | Integration with Urgent Care charting software |
|--------------------|------------------------------------------------|

| ·   | Increasing ER volume and declining number of ERs |
|--------------------|--------------------------------------------------|

| ·   | Growing costs and lesser access |
|--------------------|---------------------------------|

| ·   | Health reform adding millions of newly insured Americans to the system |
|--------------------|------------------------------------------------------------------------|

| ·   | Aging population requiring more healthcare Industry conditions are favorable: |
|--------------------|-------------------------------------------------------------------------------|

| ·   | Clear value to both patients and payors – better quality of care, lower costs, greater access |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | Industry is fragmented |
|--------------------|------------------------|

| ·   | Lack of customer focus in the industry |
|--------------------|----------------------------------------|

| ·   | Large and relatively untapped parts of Southwest |
|--------------------|--------------------------------------------------|

----

| Statements                                                                                                                                                     |    |   |       |        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|------------|-------------|
|                                                                                                                                                           |    |   |       |        |
| Condensed Consolidated Balance Sheets at March 31, 2013 and June 30, 2012.                                                                                     |    |   |
|                                                                                                                                                           |    |   |       |        |
| Condensed Consolidated Statements of Operations (Unaudited) for the three and nine months ending March 31, 2013 and 2012.                                      |
|                                                                                                                                                           |    |   |       |        |
| Condensed Consolidated Statements of Cash Flows (Unaudited) for the nine months ending March 31, 2012 and 2011.                                                |
|                                                                                                                                                           |    |   |       |        |
| Notes to Condensed Consolidated Financial Statements.                                                                                                          |    |   |       |        |
|                                                                                                                                                           |    |   |       |        |
| Schedules                                                                                                                                                      |    |   |       |        |
|                                                                                                                                                           |    |   |       |        |
| All schedules are omitted because they are not applicable or the required information is shown in the Financial Statements or notes thereto.                   |
|                                                                                                                                                           |    |   |       |        |
|                                                                                                                                                           | Exhibit | Form   | Filing     | Filed with  |
| Exhibits                                                                                                                                                       | #       | Type   | Date       | This Report |
|                                                                                                                                                           |    |   |       |        |
| Amended and Restated Articles of Incorporation filed with the Minnesota Secretary of State on September 19, 2007.                                              | 3.1     | 8-K    | 10/4/2007  |        |
|                                                                                                                                                           |    |   |       |        |
| Bylaws                                                                                                                                                         | 3.3     | 10-SB  | 12/14/2006 |        |
|                                                                                                                                                           |    |   |       |        |
| Tailor made Business Solutions, PPL Consulting Agreement                                                                                                       | 10.1    |   |       | X           |
|                                                                                                                                                           |    |   |       |        |
| Certification of Principal Executive Officer pursuant to Rule 13a-14 and Rule 15d-14(a), promulgated under the Securities and Exchange Act of 1934, as amended | 31.1    |   |       | X           |
|                                                                                                                                                           |    |   |       |        |
| Certification of Principal Financial Officer pursuant to Rule 13a-14 and Rule 15d 14(a), promulgated under the Securities and Exchange Act of 1934, as amended | 31.2    |   |       | X           |
|                                                                                                                                                           |    |   |       |        |
| Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                         | 32.1    |   |       | X           |
|                                                                                                                                                           |    |   |       |        |
| XBRL Instance Document                                                                                                                                         | 101.INS |   |       | X           |
|                                                                                                                                                           |    |   |       |        |
| XBRL Taxonomy Extension Schema Document                                                                                                                        | 101.SCH |   |       | X           |
|                                                                                                                                                           |    |   |       |        |
| XBRL Taxonomy Extension Calculation Linkbase Document                                                                                                          | 101.CAL |   |       | X           |
|                                                                                                                                                           |    |   |       |        |
| XBRL Taxonomy Extension Definition Linkbase Document                                                                                                           | 101.DEF |   |       | X           |
|                                                                                                                                                           |    |   |       |        |
| XBRL Taxonomy Extension Label Linkbase Document                                                                                                                | 101.LAB |   |       | X           |
|                                                                                                                                                           |    |   |       |        |
| XBRL Taxonomy Extension Presentation Linkbase Document                                                                                                         | 101.PRE |   |       | X           |

----

| Name                             |   | Title                                                              |   | Date         |
|----------------------------------|--------|--------------------------------------------------------------------|--------|--------------|
|                             |   |                                                               |   |         |
| /s/ Erik J. CooperErik J. Cooper |   | ChairmanPresidentChief Executive Officer                           |   | May 20, 2013 |
|                             |   |                                                               |   |         |
| /s/ Thomas MeolaThomas Meola     |   | DirectorActing Chief Financial OfficerPrincipal Accounting Officer |   | May 20, 2013 |