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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



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FORM 10-QSB/A

(Amendment No. 1)



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(Mark One)

|x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------

FOR THE QUARTERLY PERIOD ENDED JULY 1, 2006



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

FOR THE TRANSITION PERIOD
FROM            TO

COMMISSION FILE NUMBER: 000-13858



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MEDICAL SOLUTIONS MANAGEMENT INC.

(EXACT NAME OF REGISTRANT AS SPECIFIED IN
ITS CHARTER)



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|                         |  |                                     
|------------------------ |  | ------------------------------------
|Nevada                   |  | 86-0214815                          
|(State of Incorporation) |  | (I.R.S. Employer Identification No.)

237 Cedar Hill Street, Marlborough, MA 01752

(Address of principal executive offices)(Zip Code)

(508) 597-6300

(Registrants telephone number, including area code)

China Media Networks International, Inc.

(Former name, former address and former fiscal year, if changed since last report)



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

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

Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date. As of October 29,
2007, there were 58,217,994 shares of the registrants common stock issued and outstanding.

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



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##### Table of Contents

Table of Contents



|                                                                  |  |     
|----------------------------------------------------------------- |  | ----
|                                                                  |  | Page
|PART I    FINANCIAL INFORMATION                                   |  | 1   
|                                                                  | 
|ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION |  | 15  
|ITEM 3. CONTROLS AND PROCEDURES                                   |  | 24  



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Explanatory Notes

Medical Solutions Management Inc. is filing this Amendment No. 1 on Form 10-QSB/A to its Form 10-QSB for the quarter ended July 1, 2006, to reflect certain comments received from the Staff of the
Securities and Exchange Commission in connection with its review of our registration Statement on Form SB-2 (File No. 333-136392) and to correct inadvertent errors in accounting.

The information contained in this Amendment No. 1, including the financial statements and the notes hereto, amends only Items 1, 2 and 3 of Part I
of our originally filed Quarterly Report on Form 10-QSB for the quarter ended July 1, 2006 and no other items in our originally filed Form 10-QSB are amended hereby. In accordance with Rule 12b-15 of the Securities and Exchange Act of 1934, the
complete text of those items in which amended language appears is set forth herein, including those portions of the text that have not been amended from that set forth in the original Form 10-QSB. Except for the aforementioned adjustments, this
Form 10-QSB/A does not materially modify or update other disclosures in the original Form 10-QSB, including the nature and character of such disclosure to reflect events occurring after August 15, 2006, the filing date of the original Form
10-QSB. Accordingly this Form 10-QSB/A should be read in conjunction with our filings made with the Securities and Exchange Commission. Currently dated certifications from the our principal executive officer and principal accounting and finance
officer have been included as exhibits to this Amendment No. 1.

Unless the context otherwise requires, in this quarterly report on
Form 10-QSB/A the term MSMI refers Medical Solutions Management Inc. and the term OrthoSupply refers to MSMIs wholly-owned subsidiary, OrthoSupply Management, Inc. The terms the Company, we,
us or our refer to MSMI and OrthoSupply collectively. The term Securities Act refers to the Securities Act of 1933, as amended, the term Exchange Act refers to the Securities Exchange Act of 1934, as
amended, and the term SEC refers to the Securities and Exchange Commission.

Note on Forward-Looking Information

Except for historical facts, the statements in this quarterly report on Form 10-QSB/A are forward-looking statements. Forward-looking statements are
merely our current predictions of future events. These statements are inherently uncertain, and actual events could differ materially from our predictions. Important factors that could cause actual events to vary from our predictions include those
discussed under the headings Risk Factors, Managements Discussion and Analysis or Plan of Operations and Business in our Annual Report on Form 10-KSB/A for fiscal year ended December 31,
2005. We assume no obligation to update our forward-looking statements to reflect new information or developments. We urge readers to review carefully the risk factors described in the Annual Report on Form 10-KSB/A for fiscal year ended
December 31, 2005 and the other documents that we file with the SEC. You can read these documents at www.sec.gov



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##### Table of Contents

PART I FINANCIAL INFORMATION

Medical Solutions Management Inc.

(Formerly China Media Networks International, Inc.)

Consolidated Balance Sheet

(unaudited)

July 1, 2006



|                                                                                      |  |                              |            |  
|------------------------------------------------------------------------------------- |  | ---------------------------- | ---------- | -
|                                                                                      |  | As of July 1, 2006(restated) |           
|Assets                                                                                |  |                              |            |  
|Current Assets                                                                        |  |                              |            |  
|Cash & cash equivalents                                                               |  | $                            | 1,426,221  |  
|Accounts receivable, net                                                              |  |                              | 189,285    |  
|Inventory                                                                             |  |                              | 103,048    |  
|Prepaid expenses                                                                      |  |                              | 39,886     |  
|                                                                                      |  |                              |            |  
|Total current assets                                                                  |  |                              | 1,758,440  |  
|Property & equipment (net)                                                            |  |                              | 91,386     |  
|                                                                                      |  |                              |            |  
|Total assets                                                                          |  | $                            | 1,849,826  |  
|Liabilities & Stockholders Equity                                                    |  |                              |            |  
|Current Liabilities:                                                                  |  |                              |            |  
|Accounts payable                                                                      |  | $                            | 114,372    |  
|Accrued expenses                                                                      |  |                              | 172,284    |  
|Demand notes                                                                          |  |                              | 0          |  
|Advances from related parties                                                         |  |                              | 0          |  
|Convertible notes payable                                                             |  |                              | 25,000     |  
|                                                                                      |  |                              |            |  
|Total current liabilities                                                             |  |                              | 311,656    |  
|Convertible notes payablelong term (net)                                             |  |                              | 791,972    |  
|Total long-term liabilities                                                           |  |                              | 791,972    |  
|                                                                                      |  |                              |            |  
|Total Liabilities                                                                     |  |                              | 1,103,628  |  
|Stockholders Equity:                                                                 |  |                              |            |  
|                                                                                      |  |                              | 0          |  
|Common stock-100,000,000 authorized $0.0001 par value 20,446,729 issued & outstanding |  |                              | 2,044      |  
|Additional paid in capital                                                            |  |                              | 3,568,728  |  
|Accumulated Deficit                                                                   |  |                              | (2,824,574 | )
|                                                                                      |  |                              |            |  
|Total Stockholders Equity                                                            |  |                              | 746,198    |  
|                                                                                      |  |                              |            |  
|Total Liabilities & Equity                                                            |  | $                            | 1,849,826  |  

See Notes to Interim Financial Statements.



1



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##### Table of Contents

Medical Solutions Management Inc.

Consolidated Statement of Operations

(Unaudited)



|                                                   |  |                            |            |   |                            |   |            |                            |  |   |                                        |   |  |   |            |  
|-------------------------------------------------- |  | -------------------------- | ---------- | - | -------------------------- | - | ---------- | -------------------------- |  | - | -------------------------------------- | - |  | - | ---------- | -
|                                                   |  | 3 MonthsEnded July 1, 2006 |            |   | 3 MonthsEnded July 2, 2005 |   |            | 6 MonthsEnded July 1, 2006 |  |   | Feb 1, 2005(inception) to July 2, 2005 |  
|                                                   |  |                            |           
|                                                   |  | (restated)                 |            |   |                            |   |            | (restated)                 |  |   |                                        |  
|Revenue:                                           |  |                            |            |   |                            |   |            |                            |  |   |                                        |   |  |   |            |  
|Sales of medical products                          |  | $                          | 230,242    |   |                            | $ | 117,098    |                            |  | $ | 356,035                                |   |  | $ | 136,723    |  
|Service revenues                                   |  |                            | 23,260     |   |                            |   | 9,947      |                            |  |   | 51,130                                 |   |  |   | 11,166     |  
|                                                   |  |                            |            |   |                            |   |            |                            |  |   |                                        |   |  |   |            |  
|Total revenue                                      |  | $                          | 253,502    |   |                            | $ | 127,045    |                            |  | $ | 407,165                                |   |  | $ | 147,889    |  
|                                                   |  |                            |            |   |                            |   |            |                            |  |   |                                        |   |  |   |            |  
|Cost of Sales:                                     |  |                            |            |   |                            |   |            |                            |  |   |                                        |   |  |   |            |  
|Cost of tangible goods sold                        |  |                            | 197699     |   |                            |   | 56,524     |                            |  |   | 288,641                                |   |  |   | 87,463     |  
|Cost of services                                   |  |                            | 31,563     |   |                            |   | 13,343     |                            |  |   | 50,544                                 |   |  |   | 14,824     |  
|                                                   |  |                            |            |   |                            |   |            |                            |  |   |                                        |   |  |   |            |  
|Costs Applicable to Sales & Revenue                |  |                            | 229,262    |   |                            |   | 69,867     |                            |  |   | 339,185                                |   |  |   | 102,287    |  
|                                                   |  |                            |            |   |                            |   |            |                            |  |   |                                        |   |  |   |            |  
|Gross Profit                                       |  |                            | 24,240     |   |                            |   | 57,178     |                            |  |   | 67,980                                 |   |  |   | 45,602     |  
|                                                   |  |                            | 9.6        | % |                            |   | 45.0       | %                          |  |   | 16.7                                   | % |  |   | 30.8       | %
|                                                   |  |                            |            |  
|Selling, General & Administrative Expenses         |  |                            | 830,979    |   |                            |   | 162,431    |                            |  |   | 1,324,954                              |   |  |   | 203,862    |  
|                                                   |  |                            |            |   |                            |   |            |                            |  |   |                                        |   |  |   |            |  
|Total Operating Expenses                           |  |                            | 830,979    |   |                            |   | 162,431    |                            |  |   | 1,324,954                              |   |  |   | 203,862    |  
|                                                   |  |                            |            |   |                            |   |            |                            |  |   |                                        |   |  |   |            |  
|(Loss) Before Other Income                         |  |                            | (806,739   | ) |                            |   | (105,253   | )                          |  |   | (1,256,974                             | ) |  |   | (158,260   | )
|                                                   |  |                            |            |  
|Other Income (Expense)                             |  |                            |            |   |                            |   |            |                            |  |   |                                        |   |  |   |            |  
|Interest Income                                    |  |                            | 1,505      |   |                            |   | 0          |                            |  |   | 3,514                                  |   |  |   | 0          |  
|Interest (expense), net                            |  |                            | (791,972   | ) |                            |   | 0          |                            |  |   | (791,972                               | ) |  |   | 0          |  
|                                                   |  |                            |            |   |                            |   |            |                            |  |   |                                        |   |  |   |            |  
|(Loss) Before Income Taxes                         |  |                            | (1,597,206 | ) |                            |   | (105,253   | )                          |  |   | (2,045,432                             | ) |  |   | (158,260   | )
|                                                   |  |                            |            |   |                            |   |            |                            |  |   |                                        |   |  |   |            |  
|Income Taxes                                       |  |                            | 0          |   |                            |   | 0          |                            |  |   | 669                                    |   |  |   | 0          |  
|                                                   |  |                            |            |   |                            |   |            |                            |  |   |                                        |   |  |   |            |  
|Net Loss available to common shareholders          |  | $                          | (1,597,206 | ) |                            | $ | (105,253   | )                          |  | $ | (2,046,101                             | ) |  | $ | (158,260   | )
|                                                   |  |                            |            |   |                            |   |            |                            |  |   |                                        |   |  |   |            |  
|Basic and Diluted Net Loss Per Common Share        |  | $                          | (0.07      | ) |                            |   | Nil        |                            |  | $ | (0.10                                  | ) |  |   | Nil        |  
|                                                   |  |                            |            |   |                            |   |            |                            |  |   |                                        |   |  |   |            |  
|Weighted Average Common Shares Outstanding (Basic) |  |                            | 21,769,622 |   |                            |   | 16,414,419 |                            |  |   | 20,773,253                             |   |  |   | 16,414,419 |  

See Notes to Interim Financial Statements.



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Consolidated Statement of Cash Flows from January 1, 2006 to July 1, 2006

(unaudited)



|                                                                                               |  |                                        |            |   |                                        |   |          |  
|---------------------------------------------------------------------------------------------- |  | -------------------------------------- | ---------- | - | -------------------------------------- | - | -------- | -
|                                                                                               |  | Six MonthsEnded July 1, 2006(restated) |            |   | Feb 1, 2005 (inception) toJuly 2, 2005 |  
|Cash Flows from Operating Activities:                                                          |  |                                        |            |   |                                        |   |          |  
|Net Income                                                                                     |  | $                                      | (2,046,101 | ) |                                        | $ | (158,250 | )
|Adjustments required to reconcile net loss to cash flows from operating activities:            |  |                                        |            |   |                                        |   |          |  
|Increase in allowance for doubtful accounts                                                    |  |                                        | 21,616     |   |                                        |   |          |  
|Depreciation, Amortization & Bad Debts                                                         |  |                                        | 17,683     |   |                                        |   | 1,820    |  
|Non-cash interest expense                                                                      |  |                                        | 791,972    |   |                                        |   | 0        |  
|Stock issued for services                                                                      |  |                                        | 102,581    |   |                                        |   | 0        |  
|Changes in Operating Assets & Liabilities                                                      |  |                                        |            |   |                                        |   |          |  
|Accounts receivable                                                                            |  |                                        | (84,545    | ) |                                        |   | (95,097  | )
|Inventory                                                                                      |  |                                        | 5,989      |   |                                        |   | (64,569  | )
|Prepaid expenses                                                                               |  |                                        | (12,367    | ) |                                        |   | 0        |  
|Accounts payable                                                                               |  |                                        | (203,619   | ) |                                        |   | 59,675   |  
|Accrued expenses                                                                               |  |                                        | 139,684    |   |                                        |   | 19,605   |  
|                                                                                               |  |                                        |            |   |                                        |   |          |  
|Net cash used by operating activities                                                          |  |                                        | (1,267,107 | ) |                                        |   | (236,816 | )
|                                                                                               |  |                                        |            |   |                                        |   |          |  
|Cash Flows from Investing Activities:                                                          |  |                                        |            |   |                                        |   |          |  
|Purchase of Equipment                                                                          |  |                                        | (6,412     | ) |                                        |   | (15,090  | )
|                                                                                               |  |                                        |            |   |                                        |   |          |  
|Net cash used by investing activities                                                          |  |                                        | (6,412     | ) |                                        |   | (15,090  | )
|                                                                                               |  |                                        |            |   |                                        |   |          |  
|Cash Flows from Financing Activities:                                                          |  |                                        |            |   |                                        |   |          |  
|Convertible notes payable                                                                      |  |                                        | 2,000,000  |   |                                        |   | 0        |  
|Borrowings from related parties                                                                |  |                                        | 0          |   |                                        |   | 255,181  |  
|Payment of related party debt                                                                  |  |                                        | 0          |   |                                        |   | 0        |  
|                                                                                               |  |                                        |            |   |                                        |   |          |  
|Net cash used by financing activities                                                          |  |                                        | 2,000,000  |   |                                        |   | 255,181  |  
|                                                                                               |  |                                        |            |   |                                        |   |          |  
|Net Change In Cash                                                                             |  |                                        | 726,481    |   |                                        |   | 3,275    |  
|Cash-Beginning                                                                                 |  |                                        | 699,740    |   |                                        |   | 0        |  
|                                                                                               |  |                                        |            |   |                                        |   |          |  
|Cash-Ending                                                                                    |  | $                                      | 1,426,221  |   |                                        | $ | 3,275    |  
|                                                                                               |  |                                        |            |   |                                        |   |          |  
|Supplemental disclosure of non-cash transactions:                                              |  |                                        |            |   |                                        |   |          |  
|Value of common stock warrants issued for services                                             |  |                                        | 87,581     |   |                                        |   | 0        |  
|Value of common stock warrants issued for interest expenses                                    |  |                                        | 1,208,028  |   |                                        |   | 0        |  
|Value of discount to convertible debenture arising from computed beneficial conversion feature |  |                                        | 791,972    |   |                                        |   | 0        |  

See Notes to Interim Financial Statements.



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MEDICAL SOLUTIONS MANAGEMENT INC.

(Formerly China Media Networks International, Inc.)

NOTES TO UNAUDITED
FINANCIAL STATEMENTS

1. Basis of Presentation

The Financial Statements presented herein have been prepared by us in accordance with the accounting policies described in our Annual Report on Form 10-KSB/A for fiscal year ended December 31, 2005 and should be
read in conjunction with the Notes to Consolidated Financial Statements which appear in that report.

The preparation of these financial
statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of
contingent assets and liabilities. On an on going basis, we evaluate our estimates, including those related intangible assets, income taxes, insurance obligations and contingencies and litigation. We base our estimates on historical experience and
on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other resources.
Actual results may differ from these estimates under different assumptions or conditions.

In the opinion of management, the information
furnished in this Form 10-QSB/A reflects all adjustments necessary for a fair statement of the financial position and results of operations and cash flows as of and for the three-month and six-month periods ended July 1, 2006 and July 2,
2005. All such adjustments are of a normal recurring nature. The Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-QSB and therefore do not include some information and notes necessary to conform
with annual reporting requirements.

2. Earnings/Loss Per Share

Basic earnings per share are computed by dividing income available to common shareholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. Diluted earnings
per share assume that any dilutive convertible securities outstanding were converted, with related preferred stock dividend requirements and outstanding common shares adjusted accordingly. It also assumes that outstanding common shares were
increased by shares issuable upon exercise of those stock options for which market price exceeds the exercise price, less shares which could have been purchased by us with the related proceeds. In periods of losses, diluted loss per share is
computed on the same basis as basic loss per share as the inclusion of any other potential shares outstanding would be anti-dilutive.

3. New Accounting
Standards

In May 2005, the FASB issued SFAS No. 154, Accounting Changes and Error Corrections, which replaces APB
Opinion No. 20 Accounting Changes, and FASB Statement No. 3 Reporting Accounting Changes in Interim Financial Statements, and changes the requirements for the accounting for and reporting of a change in accounting
principle. This Statement requires retrospective application to prior periods financial statements of changes in accounting principle, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the
change. This Statement is effective for accounting changes and corrections of errors made in fiscal years beginning after December 15, 2005. Early adoption is permitted for accounting changes and corrections of errors made in fiscal years
beginning after the date this Statement is issued. We do not believe that adoption of SFAS 154 will have a material impact on our financial statements.



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4. Convertible Note Payable

On June 28, 2006, the Company issued a $2.0 million convertible promissory note. The note bears interest at 6% per annum until paid or converted. Interest is payable quarterly commencing
September 30, 2006. The convertible note matures on June 27, 2008. The conversion rate is approximately $0.21 per share (subject to certain anti-dilution provisions).

The convertible debt securities were issued with a non-detachable conversion feature and 16,000,000 detachable warrants. The Company evaluates and
accounts for such securities in accordance with EITF Issue Nos. 98-5, 00-19, 00-27, 05-02, 05-04 and 05-08, and SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities as amended.

In accordance SFAS No. 133, the Company evaluates the holders conversion right provision, interest rate adjustment provision, liquidated
damages clause, cash premium option (if applicable), and the redemption option (collectively, the debt features) contained in the terms governing the note to determine whether they are or are not clearly and closely related to the characteristics of
the note. Accordingly, if the features qualify as embedded derivative instruments at issuance and, furthermore if they do or do not qualify for any scope exception within SFAS No. 133 (paragraphs 12-32), then they are required by SFAS
No. 133 to be accounted for separately from the debt instrument and recorded as derivative financial instruments.

The note is
convertible at the option of the holder at any time and from time to time into common stock of the Company at a conversion price of $0.207016 per share, subject to certain anti-dilution adjustments. Pursuant to the terms of the note, the conversion
price will be reset (the Reset Provision) in the event the Company issues shares, convertible securities or options entitling the recipient to subscribe for or purchase shares at a price per share less than the fixed conversion price
then in effect. Due to the conversion reset feature the Companys debt does not meet the definition of conventional convertible debt. However, the Company evaluated its obligations related to the embedded conversion feature under the criteria
of paragraphs 12-32 of EITF 00-19 including the reset provision. Because any issuance of additional shares or other securities or options at a price per share less than the fixed conversion price, which may trigger the reset provision, is a
contingent future event and that it is under the Companys control, the Company has concluded that the reset provision does not qualify as a derivative instrument, and that under the criteria of EITF 00-19 the Company believes that the embedded
conversion feature contained in the Warrants and Debenture are equity instruments indexed to the companys common stock that meets the requirements of equity classification.

The note contains customary negative covenants for loans of this type, including limitations on the Companys ability to incur indebtedness, issue
securities, make loans and investments, make capital expenditures, dispose of assets and enter into mergers and acquisition transactions. Events of default under the note are described below and include breaches of the Companys obligations
under the note and other agreements relating to the transaction, certain defaults under any other indebtedness of at least $250,000 and certain bankruptcy events. Upon an event of default, all outstanding principal plus all accrued and unpaid
interest become immediately due and payable. As of June 30, 2006, the Company is not in default on any of its debt covenants.

Material Events that would cause default under the note include:



| |  |  | failure to pay principal or any premium on any note when due;
| | - |  | -------------------------------------------------------------



| |  |  | failure to pay any interest, late fees or liquidated damages on any note after a period of ten business days;
| | - |  | -------------------------------------------------------------------------------------------------------------



| |  |  | failure to perform other covenants under any note that is not cured by thirty-five days after notice;
| | - |  | -----------------------------------------------------------------------------------------------------



| |  |  | any representation or warranty under the financing documents that is untrue or incorrect in any material respect;
| | - |  | -----------------------------------------------------------------------------------------------------------------



5



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| |  |  | certain events such as bankruptcy or assignment for the benefit of creditors of the Company or any of its subsidiaries;
| | - |  | -----------------------------------------------------------------------------------------------------------------------



| |  |  | any default by the Company or its subsidiaries under any instrument in excess of $250,000 that results in such obligation becoming due and payable prior to
maturity;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the Company becoming party to a change of control transaction;
| | - |  | --------------------------------------------------------------



| |  |  | failure to maintain the required reservation of additional shares of authorized common stock;
| | - |  | ---------------------------------------------------------------------------------------------

In connection with the issuance of the convertible note, on June 28, 2006, the Company entered into a Securities Purchase Agreement (the
SPA) with Vicis Capital Master Fund (the Purchaser). This SPA affirmed that the financing was a private placement to accredited investors and is exempt from registration pursuant to Section 4(2) of the Securities Act of
1933, as amended. Pursuant to the SPA, the Purchaser purchased a senior secured convertible note (Note) in aggregate the principal amount of which was $2,000,000 and warrants (Warrants) to purchase an aggregate of 16,000,000
shares of the Companys common stock. The Company also entered into a Security Agreement dated June 28, 2006 with the Purchaser (the Security Agreement), pursuant to which the Note is secured by substantially all of the assets
of the Company, including its intellectual property.

Interest on the Note is payable, in cash, at maturity and accrues at 6%. The entire
principal amount of the Note is payable on its maturity date of June 28, 2008, subject to earlier conversion, acceleration or redemption. At the option of the Company, interest payable upon conversion of all or a portion of the converted
principal amount may be settled either in cash or in registered common stock (at a conversion price equal to the then current debt conversion price of the common stock).

The 16,000,000 warrants permit the purchasers to purchase 8,000,000 shares of common stock at an exercise price of $0.375 per share and to purchase 8,000,000 shares of common stock at an exercise price of $0.345 per
share and are exercisable from June 28, 2006 until June 27, 2011. These instruments contain anti-dilution provisions similar to the convertible debt and are required to be reduced to an exercise price not less than amounts received for new
issues of common stock or rates granted to newly issued convertible securities, or exercise prices of options in an equity financing.

In
connection with issuance of the note and warrants, we entered into an Amended and Restated Investor Rights Agreement (the Investor Rights Agreement) with the Purchaser under which the Company is obligated to register with the SEC the
shares of its common stock underlying the Note and Warrants. Under the Investor Rights Agreement, the Company is required to file a registration statement within thirty days of the closing of the sale of the notes and to have the registration
statement declared effective by the SEC within 120 days of that filing. Additionally, the Company is required to keep the registration statement effective at all times until all of the shares registered have been sold or may be resold pursuant to
Rule 144(k) under the Securities Act of 1933. If the Company does not satisfy these registration obligations, it would constitute an event of default under the Investor Rights Agreement, and the Company would have to pay each holder of the Notes or
Warrants an amount in cash or unregistered stock, as partial liquidated damages, as provided in the Investor Rights Agreement, as discussed further below.

The registration statement was filed with the SEC in August 2006, and it is currently under review by the staff of the SEC. The registration statement will need to be updated to maintain effectiveness pursuant to the
rules and regulations promulgated by the SEC.

The Investor Rights Agreement provides for liquidated damages for failure to register or
maintain an effective registration statement for the shares underlying the notes and warrants. If we fail to have the registration statement declared effective within the specified period, we would be required to pay liquidated damages to the
investor(s) until:



| |  |  | the registration statement is declared effective;
| | - |  | -------------------------------------------------



6



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| |  |  | effectiveness is maintained for a prescribed period; or
| | - |  | -------------------------------------------------------



| |  |  | the Purchasers are no longer incurring damages for the Companys failure to register the securities (e.g., if the securities become freely transferable after a
holding period under Rule 144(k) of the Securities Act of 1933).
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Liquidated damages are paid in cash or unregistered
shares, at our discretion and the amount is determined by a formula in the Investor Rights Agreement. The liquidated damages are 1% per month of the aggregate purchase price paid by the holder of the note and are capped at 16%. As of
June 30, 2006, the maximum penalty that could be payable in the event of a breach of the Investor Rights Agreement are shares with an underlying market value of $320,000.

In accordance with EITF Issue 05-04, the Company believes that the effect of the liquidated damages should be treated under the first view (View A),
which states that a registration rights agreement should be treated as a combined unit together with the underlying financial instruments, warrants and derivative debenture and evaluated as a single instrument under EITF Issue 00-19 and SFAS
No. 133. We concluded that this view is the most appropriate for the transaction. Accordingly, the Investor Rights Agreement and the financial instruments to which it pertains (the warrants and the convertible note) were considered a combined
instrument and accounted for accordingly.

The values ascribed to the Note, the conversion feature of the Note, other potential embedded
derivative features, and detachable warrants follow the guidance of EITF Issue No. 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Companys Own Stock; SFAS No. 150, Accounting for
Certain Financial Instruments with Characteristics of both Liabilities and Equity; and EITF Issue No. 00-27, Application of Issue No. 98-5 to Certain Convertible Instruments. The Company evaluated the impact of the Investor Rights
Agreement on the embedded conversion feature and the Warrants and determined their effect based on EITF Issue No. 00-19. In accordance with EITF Issue No. 00-19, a transaction which includes a potential for net-cash settlement, including liquidated
damages, requires that derivative financial instruments, including warrants and the embedded conversion feature, be bifurcated, and initially recorded at fair value as an asset or liability and subsequent changes in fair value be reflected in the
statement of operations. Because the liquidated damages may be settled in shares at our discretion, the Company applied the criteria in EITF 00-19 and determined that the related instruments were equity instruments.

In addition, because the conversion option is indexed to the Companys capital stock and a separate instrument with the same terms would be
classified in stockholders equity in the statement of financial position, the written option is not considered to be a derivative instrument for the issuer under SFAS 133 paragraph 11(a) and, accordingly, was not separated from the host
contract.

In accordance with the FASB Emerging Issues Task Force (EITF) Issue No. 98-5 Accounting for Convertible
Securities with Beneficial Conversion Features or Contingently Adjustable Conversion Ratios and EITF Issue No. 00-27 Application of Issue No. 98-5 to Certain Convertible Instruments, the Company determined that the Note
contains an embedded beneficial conversion feature resulting in a discount to the carrying amount of the notes equal to:

(i) the difference between the stated conversion rate and the market price of the Companys common stock on the date of issuance; multiplied by

(ii) the number of shares into which the Notes are convertible;

(iii) limited to the remaining allocable proceeds after first stripping out the relative fair value of the warrants

This debenture was considered to have an embedded beneficial conversion feature because the effective conversion price was less than the quoted market price at the time
of the issuance. The Company allocated the proceeds of the debt between the warrants and the debt based on relative fair values which amounted to



7



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$1,208,028 and $791,972 respectively. The beneficial conversion feature of $791,972 was recorded separately based on the intrinsic value method per EITF
98-5. The intrinsic value of the beneficial conversion feature exceeds the proceeds allocable to the convertible debt therefore, the amount of the discount assigned to the beneficial conversion feature was limited to the amount of the proceeds
allocable to the convertible debt.

Per EITF Issue No. 98-5 and EITF Issue No. 00-27, upon issuance the Company recorded a
$791,972 discount to the convertible notes.

For convertible debt securities, any
recorded discount resulting from the allocation of proceeds to the beneficial conversion feature should be recognized as interest expense over the minimum period from the date of issuance to the date at which the debt holder can realize that return
(that is, through the date of earliest conversion ) using the effective yield method. Because the debt holder can realize the benefit of conversion immediately, the Company has recorded the entire discount as interest expense in the period in which
the Note was issued.

Discount arising from the allocation of a portion of the proceeds to the equity component based upon relative fair
value resulted in a discount of $1,208,028. The Company accounted for the warrants using the Black-Scholes pricing model. In computing fair value the Company used the following assumptions.



|     |  |              |   |  |               |   |  |                    |   |  |             
|---- |  | ------------ | - |  | ------------- | - |  | ------------------ | - |  | ------------
|Year |  | InterestRate |   |  | DividendYield |   |  | ExpectedVolatility |   |  | ExpectedLife
|2006 |  | 5.25         | % |  | 0.0           | % |  | 75.0               | % |  | 60 mos.     

This discount will be amortized to interest expense over the term of the note using the effective
yield method. A schedule of accretion of the carrying value of the note and corresponding amortization of discount is as follows:



|                                      |  |   |           |  
|------------------------------------- |  | - | --------- | -
|Face amount of note                   |  | $ | 2,000,000 |  
|Amortization of discount through 2006 |  |   | (206,705  | )
|Amortization of discount through 2007 |  |   | (587,366  | )
|Amortization of discount through 2008 |  |   | (413,957  | )
|                                      |  |   |           |  
|Current carrying value                |  | $ | 791,972   |  

The impact of other related, recently issued, pronouncements are summarized as follows:

EITF Issue 04-8, The Effect of Contingently Convertible Instruments on Diluted Earnings per Share. The EITF reached a
consensus that contingently convertible instruments, such as contingently convertible debt, contingently convertible preferred stock, and other such securities should be included in diluted earnings per share (if dilutive) regardless of whether the
market price trigger has been met. The consensus became effective for reporting periods ending after December 15, 2004. The adoption of this pronouncement does not currently have an effect on the Companys financial statements because the
inclusion of common stock equivalents in earnings per share is anti-dilutive.

In September 2005, the FASB ratified the Emerging
Issues Task Forces (EITF) Issue No. 05-7, Accounting for Modifications to Conversion Options Embedded in Debt Instruments and Related Issues, which addresses whether a modification to a conversion option that
changes its fair value affects the recognition of interest expense for the associated debt instrument after the modification and whether a borrower should recognize a beneficial conversion feature not a debt extinguishment if a debt modification
increases the intrinsic value of the debt (for example, the modification reduces the conversion price of the debt). In September 2005, the FASB also ratified the EITFs Issue No. 05-8, Income Tax Consequences of Issuing
Convertible Debt with a Beneficial Conversion Feature, which discusses whether the issuance of convertible debt with a beneficial conversion feature results in a basis difference arising from the intrinsic value of the beneficial conversion
feature on the commitment date (which is treated as recorded in the shareholders equity for book purposes, but



8



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as a liability for income tax purposes), and, if so, whether that basis difference is a temporary difference under FASB Statement No. 109,
Accounting for Income Taxes. The Company is currently in the process of evaluating the effect that the adoption of this pronouncement may have on its financial statements.

In September 2005, the FASB also ratified the EITFs Issue No. 05-8, Income Tax Consequences of Issuing Convertible Debt with a
Beneficial Conversion Feature, which discusses whether the issuance of convertible debt with a beneficial conversion feature results in a basis difference arising from the intrinsic value of the beneficial conversion feature on the commitment
date (which is treated recorded in the shareholders equity for book purposes, but as a liability for income tax purposes), and, if so, whether that basis difference is a temporary difference under FASB Statement No. 109, Accounting
for Income Taxes. The Company currently carries an allowance for all deferred taxes and, therefore the Company does not believe the adoption of this pronouncement will have any impact on its financial statements.

5. Stockholders Equity

Recent Sales of Unregistered
Securities

Pursuant to the Exchange Agreement among the Registrant, Vicis, Midtown Partners & Co., LLC and Nite Capital L.P.,
dated as of April 13, 2006, such shareholders assigned, exchanged and converted their right, title and interest to shares of the Registrants then outstanding Series A Preferred Stock and, in exchange thereof and upon such conversion, the
Registrant issued such shareholders shares of the Registrants common stock, as set forth below, and, as a result, there are no shares of Series A Preferred Stock presently outstanding.



|                            |  |                                                                             |  |                                        
|--------------------------- |  | --------------------------------------------------------------------------- |  | ---------------------------------------
|Shareholder                 |  | Number of Shares of SeriesA Preferred StockAssigned, Exchanged andConverted |  | Number of Shares of Common Stock Issued
|Vicis Capital Master Fund   |  | 1,500,000                                                                   |  | 2,000,000                              
|Midtown Partners & Co., LLC |  | 90,000                                                                      |  | 120,000                                
|Nite Capital L.P.           |  | 110,000                                                                     |  | 220,000                                

On May 3, 2006, the Registrant entered into a Securities Purchase Agreement with Vicis,
pursuant to which the Registrant sold a convertible note in the original principal amount of $300,000 and 300,000 shares of the Registrants common stock, in exchange for $300,000. Vicis surrendered the note as partial consideration for the 6%
senior secured convertible debenture described above.

On June 28, 2006, the Registrant consummated a Securities Purchase and Exchange
Agreement with Vicis Capital Master Fund, or Vicis. Pursuant to this agreement, the Registrant sold to Vicis a 6% senior secured convertible debenture in the original principal amount of $2,000,000, a warrant to purchase 8,000,000 shares of the
Registrants common stock, exercisable for five years at a price of $0.345 per share, and a warrant to purchase 8,000,000 shares of the Registrants common stock, exercisable for five years at price of $0.375 per share. As consideration
there of, Vicis paid the Registrant $1,700,000 cash less $60,000 for incurred expenses and surrendered a convertible note in the principal amount of $300,000 previously sold to Vicis on May 3, 2006 and 1,994,419 shares of the Registrants
common stock.

On June 28, 2006, the Registrant issued to FP Associates a warrant to purchase 300,000 shares of the Registrants
common stock, exercisable for five years at a price of $0.01 per share, in consideration for services rendered to the Registrant. The Registrant relied upon Rule 506 of Regulation D of the Securities Act of 1933, as amended, for the issuance of the
debenture and warrants to Vicis and the warrant to FP Associates.



9



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6. Stock-Based Compensation-Adoption of SFAS 123R

On January 1, 2006, the Company adopted the provisions of Statement of Financial Accounting Standards (SFAS) 123R, Share-Based
Payment (SFAS 123(R)), which requires that companies measure and recognize compensation expense at an amount equal to the fair value of share-based payments granted under compensation arrangements. Prior to January 1, 2006,
the Company accounted for its stock-based compensation plans under the recognition and measurement principles of Accounting Principles Board (APB) Opinion 25, Accounting for Stock Issued to Employees, and related
interpretations, and recognized no compensation expense for stock option grants since all options granted had an exercise price equal to the market value of the underlying common stock on the date of grant.

The Company adopted SFAS 123(R) using the modified prospective method, which results in no restatement of prior period amounts. Under this
method, the provisions of SFAS 123(R) apply to all awards granted or modified after the date of adoption. In addition, compensation expense must be recognized for any unvested stock option awards outstanding as of the date of adoption on a
straight-line basis over the remaining vesting period. The Company calculates the fair value of options using a Black-Scholes option pricing model.

Solely for purposes of the following discussion in this Note 6, the issuance by the Company to FP Associates of a warrant to purchase 300,000 shares of the Companys common stock is deemed to be a grant of a stock option since the
issuance was made in consideration of services rendered to the Company. Accordingly, for the six months ended July 1, 2006, the Companys compensation expense related to stock option grants was $87,581, which represents the expense
associated with the issuance of the warrant to FP Associates. A summary of assumptions is as follows:



|     |  |              |   |  |               |   |  |                    |   |  |              
|---- |  | ------------ | - |  | ------------- | - |  | ------------------ | - |  | -------------
|Year |  | InterestRate |   |  | DividendYield |   |  | ExpectedVolatility |   |  | Expected Life
|2006 |  | 5.0          | % |  | 0.0           | % |  | 30.0               | % |  | 60 mos.      
|2005 |  | 4.0          | % |  | 0.0           | % |  | 50.0               | % |  | 60 mos.      

SFAS 123(R) also requires the benefits of tax deductions in excess of recognized compensation
expense to be reported in the Statement of Cash Flows as a financing cash inflow rather than an operating cash inflow. In addition, SFAS 123(R) required a modification to the Companys calculation of the dilutive effect of stock option awards
on earnings per share. For companies that adopt SFAS 123(R) using the modified prospective method, disclosure of pro forma information for periods prior to adoption must continue to be made.

As of July 1, 2006, there was no unrecognized compensation cost related to non-vested options granted under the plan. The total fair value of shares
issued and vested during the six-month period ended July 1, 2006 was $87,581, which represents the expense associated with the issuance of the warrant to FP Associates (none during the six-month period ended July 1, 2005).

The following table summarizes the status of the Companys aggregate options as of July 1, 2006, including the issuance by the Company of the
warrant to FP Associates:



|                         |  |                     |   |                                       |                                 |                     |  |        |  |                                |  |   |     
|------------------------ |  | ------------------- | - | ------------------------------------- | ------------------------------- | ------------------- |  | ------ |  | ------------------------------ |  | - | ----
|                         |  | Options Outstanding |   | Weightedaverageremaininglife inmonths |                                 | Options Exercisable
|Range of exercise prices |  | Shares              |   |                                       | weighted average exercise price |                     |  | Shares |  | weighted average exerciseprice
|$ .01-$ .74              |  | 900,000             | * |                                       | $                               | 0.01                |  | 39.6   |  | 900,000                        |  | $ | 0.01

---

|* | Includes options to purchase an aggregate 600,000 shares of common stock of OrthoSupply to be converted to substantially equivalent options in MSMI under its 2006 Equity Incentive
Plan.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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7. Managements Plan

There is substantial doubt about the Companys ability to continue as a going concern. The Companys main objectives for the next 12 months are continuing its ability to finance the Company and focusing on
expanding revenue in key locations across the country. The Company expects that our current cash availability will support current operations through the end of 2006. The Companys projected monthly cash burn rate is $250,000 The Company
anticipates that it will need to complete additional financing to support current working capital needs and potential acquisitions. Through these financings, the Company hopes to expand the business organically and acquisitively.

Our plan for organic growth includes increasing our sales force in key locations across the country. In fiscal year 2006, we plan to build our sales
force from our current level, 4 sales people, to 10 sales people. The plan includes support programs for the sales efforts including marketing, communications and program literature.

We also plan to increase our resources in administration, and to add one to three additional employees to assist with our service administration. During
the first six months of 2006, we hired two additional customer support specialists and two field representative in order to carry out our current service model. We expect to hire additional field support resources to support the growth in new
clinics during 2006. We also hired an employee to focus on the Companys purchasing activity to further support its growth, and provide greater internal control.

We do not anticipate devoting our resources to research and development in fiscal year 2006.

We continue
to pursue opportunities that will add to our current product and service offerings in an effort to fulfill the current demands in place, as well as, drive the continuous improvement of the billing and inventory processes that support the clinics.

8. Restatement of Financial Statements

2005

In connection with the filing of a registration statement on Form SB-2 to register shares of our common stock, we received a
comment letter from the staff of the Securities and Exchange Commission asking for additional information regarding our Preferred Stock. Upon review, we have determined that we have accounted for our Preferred Stock in error. Previously, we
classified the Preferred Stock as a component of stockholders equity, however, we have subsequently determined the provision in the certificate of designation allowing the holders of a majority of the issued and outstanding shares of Series A
Preferred Stock to elect, upon a change in control of the Company, to cause the Company to redeem all or a portion of the issued and outstanding shares of Series A Preferred Stock, at a per share price equal to $1.00 plus accrued dividends to be not
solely within our control. United States S.E.C. Reg. S-X Rule 5-02(28) requires public companies to report such redeemable preferred stock outside stockholders equity. We also changed the carrying value from stated redemption value to fair
value measured initially at the gross proceed less direct offering costs incurred. Such costs totaled $353,445. These costs were previously reported as a reduction of additional paid-in capital. Accordingly we have reduced previously stated total
stockholders equity by the carrying value of the preferred or $1,346,555. These changes also increased additional paid-in capital by the amount of the preferred offering costs of $353,445. Pursuant to the Exchange Agreement among the
Registrant, Vicis, Midtown Partners & Co., LLC and Nite Capital L.P., dated as of April 13, 2006, such shareholders assigned, exchanged and converted their right, title and interest to shares of the Registrants then outstanding
Series A Preferred Stock and, in exchange thereof and upon such conversion, the Registrant issued such shareholders shares of the Registrants common stock. As a result here are no shares of Series A Preferred Stock presently outstanding.



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We have also determined our previous accounting for the reverse merger was in error. For financial
reporting purposes, Ortho Supply Management, Inc. was treated as the acquiring company and the transaction should have been accounted for as a recapitalization. At the date of recapitalization, December 31, 2005, China Media Networks
International, Inc. was a public shell company, defined as an inactive, publicly-quoted company with nominal assets and liabilities. The restated Statement of Stockholders Equity in compliance with U.S. GAAP eliminates all references to China
Media Networks International, Inc. prior to the recapitalization and replaces it with a reporting of the chronological transactions of the deemed accounting acquiror, Ortho Supply Management, Inc. Because OrthoSupply Management, Inc. began business
in 2005, there are no transactions for all periods preceding 2005. The restated treatment of the acquisition as a recapitalization had no impact on previously stated stockholders equity accounts but the chronological issuance of shares of
OrthoSupply Management, Inc. differed from the chronological issuance of shares of China Media Networks International, Inc. The change in reporting resulted in the weighted average shares outstanding during 2005 to increase from 503,142 to
16,414,419. We have restated our Balance Sheet as of April 1, 2006 and March 31, 2005 and the Statements of Operations and Shareholders Deficit for the period then ended to correctly reflect these items.

The table below sets forth the individual restatement adjustments.



|                                                                                                                                                                                                                  |  |         |  |        
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------- |  | -------
|Adjustment 1                                                                                                                                                                                                      |  |         |  |        
|Common stock subscriptions receivable                                                                                                                                                                             |  | 13,222  |  |        
|Additional paid-in capital                                                                                                                                                                                        |  |         |  | 13,222 
|to establish subscription receivable account as a component of paid-in capital                                                                                                                                    |  |         |  |        
|                                                                                                                                                                                                                  |  |        
|Adjustment 2                                                                                                                                                                                                      |  |         |  |        
|Preferred stock                                                                                                                                                                                                   |  | 353,445 |  |        
|Additional paid-in capital                                                                                                                                                                                        |  |         |  | 353,445
|to reclassify Preferred stock offering expenses as a reduction in the carrying value of the                                                                                                                       |  |         |  |        
|Preferred instead of a reduction of common stock additional paid-in capital and adjust the carrying value of the preferred from redemption value to fair value estimated as proceeds net of direct
offering costs |  |         |  |        

Schedule of adjustments and impact on amounts previously reported and the revised balances:



|                             |  |             |   |  |              |   |  |              |   |  |           |  
|---------------------------- |  | ----------- | - |  | ------------ | - |  | ------------ | - |  | --------- | -
|                             |  | As reported |   |  | Adjustment 1 |   |  | Adjustment 2 |   |  | Restated  |  
|Balance Sheet:               |  |             |   |  |              |   |  |              |   |  |           |  
|Redeemable preferred stock   |  | 1,700,000   |   |  |              |   |  | (353,445     | ) |  | 1,346,555 |  
|Common stock                 |  | 1,974       |   |  |              |   |  |              |   |  | 1,974     |  
|Additional paid-in capital   |  | (233,784    | ) |  | 13,222       |   |  | 353,445      |   |  | 132,883   |  
|Subscriptions receivable     |  | 0           |   |  | (13,222      | ) |  |              |   |  | (13,222   | )
|Accumulated deficit          |  | (778,474    | ) |  |              |   |  |              |   |  | (778,474  | )
|Total Shareholder Deficiency |  | 689,716     |   |  |              |   |  | (1,346,555   | ) |  | (656,839  | )

The Companys Financial Position, Results of Operations, and Statement of Cash Flows through
July 1, 2006 were not affected by the Restatement

2006

Restatement of Interim Financial Statements as a Result of Fourth Quarter Adjustments

The Company
recorded certain adjustments in the fourth quarter related to the allocation of proceeds between the convertible notes payable and related warrants. Those adjustments related to events or transactions in the second fiscal quarter of 2006.

Adjustment 1: The Company also determined that the allocation of a reduction in the conversion price of the debt as issued was not
adequately substantiated and reversed our original entry of $898,327 that reflected the



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incremental beneficial conversion feature attributable to the return and retirement of 1,694,419 shares of our common stock. The transaction was revalued at
$508,000 (the deemed fair value of the stock) at the date of the transaction and had no effect on paid-in capital.

Adjustment 2: The
relative fair values of the beneficial conversion feature and the warrants were recalculated at $791,972 and $1,208,028 respectively. The Company formerly valued each allocated component at $820,144. As a result, interest expense for the three-month
period and interim period to June 30, 2006 was reduced by $28,712, the difference of the previously recognized discount arising from the beneficial conversion feature of $820,144 and $791,972, the recalculated beneficial conversion feature.

We have also revised the disclosure table to reference the adjustments by number.



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Medical Solutions Management Inc.

Recalculated Restated Consolidated Balance Sheet



|                                                                                      |  |               |            |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   |            |  
|------------------------------------------------------------------------------------- |  | ------------- | ---------- | - | ----------------------------- | -------- | - | ----------------------------------------------------------------------------- | ---------- | - | ----------------------------------------------------------------------------- | -------- | - | ------------------------------ | - | ------------- | - | ---------- | -
|                                                                                      |  |               |            |   | Adjustment 1                  |          |   | Adjustment 2                                                                  |            |   |                                                                              
|                                                                                      |  | June 30, 2006 |            |   | unwind andcanceltreasurystock |          |   | unwindoriginal entryascribingvalues towarrants
andbeneficialconversionfeature |            |   | recalculation of relative fairvalue ofwarrants andbeneficialconversionfeature |          |   | Amortizationof relateddiscount |   | June 30, 2006 |  
|                                                                                      |  |               |            |   |                              
|                                                                                      |  | (as filed)    |            |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   | (restated)    |  
|Assets                                                                                |  |               |            |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   |            |  
|Current Assets                                                                        |  |               |            |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   |            |  
|Cash & cash equivalents                                                               |  | $             | 1,426,221  |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               | $ | 1,426,221  |  
|Accounts receivable, net                                                              |  |               | 189,285    |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   | 189,285    |  
|Inventory                                                                             |  |               | 103,048    |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   | 103,048    |  
|Prepaid expenses                                                                      |  |               | 39,886     |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   | 39,886     |  
|Due from affiliated entities                                                          |  |               | 0          |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   | 0          |  
|                                                                                      |  |               |            |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   |            |  
|Total current assets                                                                  |  |               | 1,758,440  |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   | 1,758,440  |  
|                                                                                      |  |               |            |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   |            |  
|Property & equipment (net)                                                            |  |               | 91,386     |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   | 91,386     |  
|                                                                                      |  |               |            |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   |            |  
|Total Assets                                                                          |  | $             | 1,849,826  |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               | $ | 1,849,826  |  
|                                                                                      |  |               |            |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   |            |  
|Liabilities & Stockholders Equity                                                    |  |               |            |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   |            |  
|Current Liabilities:                                                                  |  |               |            |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   |            |  
|Accounts payable                                                                      |  | $             | 114,372    |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               | $ | 114,372    |  
|Accrued expenses                                                                      |  |               | 172,284    |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   | 172,284    |  
|Convertible notes payable                                                             |  |               | 25,000     |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   | 25,000     |  
|                                                                                      |  |               |            |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   |            |  
|Total current liabilities                                                             |  |               | 311,656    |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   | 311,656    |  
|                                                                                      |  |               |            |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   |            |  
|Convertible notes payable                                                             |  |               | 1,179,856  |   |                               |          |   |                                                                               | (1,179,856 | ) |                                                                               | 791,972  |   |                                | 0 |               |   | 791,972    |  
|                                                                                      |  |               |            |   |                               |         
|Stockholder Equity:                                                                  |  |               |            |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   |            |  
|Common stock-100,000,000 authorized $0.0001 par value 20,446,729 issued & outstanding |  |               | 2,045      |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   | 2,045      |  
|Additional paid in capital                                                            |  |               | 4,107,343  |   |                               | (898,327 | ) |                                                                               |            |   |                                                                               | 359,712  |   |                                |   |               |   | 3,568,728  |  
|Treasury stock                                                                        |  |               | (898,327   | ) |                               | 898,327  |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   | 0          |  
|Accumulated Deficit                                                                   |  |               | (2,852,746 | ) |                               |          |   |                                                                               | 820,144    |   |                                                                               | (791,972 | ) |                                | 0 |               |   | (2,824,574 | )
|                                                                                      |  |               |            |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   |            |  
|Total Stockholders Equity                                                            |  |               | 358,314    |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   | 746,198    |  
|                                                                                      |  |               |            |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   |            |  
|Total Liabilities & Equity                                                            |  | $             | 1,849,826  |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               | $ | 1,849,826  |  
|                                                                                      |  |               |            |   |                               |          |   |                                                                               |            |   |                                                                               |          |   |                                |   |               |   |            |  

9. Subsequent Events

On July 31, 2006, we changed our name to Medical Solutions Management Inc. from China Media Networks International, Inc. for the primary reason to better clarify the identity of the
Company and to reflect the Companys evolution to a provider of medical devices. In connection with our name change, we filed a Schedule 14C Information Statement with the Securities and Exchange Commission and delivered such statement to our
stockholders.



14



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##### Table of Contents

|ITEM 2. | MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
|------- | ----------------------------------------------------------

The following discussion and analysis of our financial condition and plan of operations should be read in conjunction with the financial statements and the related notes. This discussion contains forward-looking
statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Our actual results and the timing of certain events could differ materially from those anticipated in these
forward-looking statements as a result of certain factors, including those set forth in Annual Report on Form 10-KSB/A for the fiscal year ended December 31, 2005 under Risk Factors, Managements Discussion and Analysis
or Plan of Operations and Business.

Background

On July 31, 2006, we changed our name to Medical Solutions Management Inc., (referred to herein as MSMI), from China
Media Networks International, Inc. On December 30, 2005, MSMI consummated a merger transaction with its then wholly-owned subsidiary, CMNW Acquisition Corporation, OrthoSupply Management, Inc., Thunderbird Global Corporation and Mark L.
Baum. Pursuant to the merger, CMNW Acquisition Corporation merged with and into OrthoSupply Management, Inc., CMNW Acquisition Corporation ceased to exist, and OrthoSupply Management, Inc. continued as the surviving corporation and wholly-owned
subsidiary of MSMI. OrthoSupply Management, Inc. acts as our operating company and MSMI is the parent holding company, and sole stockholder, of OrthoSupply Management, Inc.

OrthoSupply Management, Inc., our wholly-owned subsidiary, has generated revenue from its operations since February 2005. The discussion below focuses
upon OrthoSupply Management, Inc.s financial condition, results of operations and liquidity and capital resources.

Our Business

We are a provider of orthopedic and podiatric durable medical equipment, specializing in the provision of products and services
using our turnkey program. Through our turnkey program, we enable orthopedic and podiatric practices to dispense an array of durable medical equipment directly to their patients during office visits. The system, which is transportable to other types
of medical practices, also provides billing services, inventory management and insurance verifications.

Results of Operations

We operate our business on a calendar year basis, with our fiscal year ending on December 31
and each quarter ending on the 13thcalendar week.

Three Months Ended July 1, 2006 Compared to Three Months Ended July 2, 2005

Net Revenue. Set
forth below are the net revenues.



|                          |  |                    |         |              |   |           |  |   |         |  |      
|------------------------- |  | ------------------ | ------- | ------------ | - | --------- |  | - | ------- |  | -----
|                          |  | Three Months Ended |         | Increase     |   | %Increase
|                          |  | July 1, 2006       |         | July 2, 2005 |   |          
|Sales of Medical Products |  | $                  | 230,242 |              | $ | 117,098   |  | $ | 113,144 |  | 96.6 
|Service Revenue           |  | $                  | 23,260  |              | $ | 9,947     |  | $ | 13,313  |  | 133.8
|                          |  |                    |         |              |   |           |  |   |         |  |      
|Total Revenue             |  | $                  | 253,502 |              | $ | 127,045   |  | $ | 126,457 |  | 99.5 

Net revenues increased primarily due to the number of clinics operating increasing from 5 in 2005
to 18 in 2006. Expansion into new regions throughout the United States has been driving the factor for the increase in clinics as we continue to ramp up our operations. A total of 4 clinics were added during the period ended July 1, 2006.



15



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##### Table of Contents

Cost of Sales. Set forth below are the cost of sales.



|                                      |  |                    |         |             |       |              |   |              |  |       |  |   |         |  |      
|------------------------------------- |  | ------------------ | ------- | ----------- | ----- | ------------ | - | ------------ |  | ----- |  | - | ------- |  | -----
|                                      |  | Three Months Ended |         | Increase    |       | %Increase   
|                                      |  | July 1, 2006       |         | % ofRevenue |       | July 2, 2005 |   | % of Revenue |  |      
|Costs of Tangible Goods Sold          |  | $                  | 197,699 |             | 85.8  |              | $ | 56,524       |  | 50.0  |  | $ | 141,175 |  | 249.8
|Costs of Services                     |  | $                  | 31,563  |             | 135.7 |              | $ | 13,343       |  | 100.2 |  | $ | 18,220  |  | 136.6
|                                      |  |                    |         |             |       |              |   |              |  |       |  |   |         |  |      
|Costs Applicable to Sales and Revenue |  | $                  | 229,262 |             | 90.4  |              | $ | 69,867       |  | 54.9  |  | $ | 159,395 |  | 228.1

Cost of sales increased primarily due to the increased sales from the additional operating clinics
compared to 2005. Cost of sales as a percentage of revenue increased due to the addition of field operations staff and the recognition of a reserve for obsolete inventories, both of which were not present in 2005.

Operating Expenses. Set forth below are the operating expenses.



|                             |  |                    |         |          |       |           |   |         |  |       |  |   |         |  |        
|---------------------------- |  | ------------------ | ------- | -------- | ----- | --------- | - | ------- |  | ----- |  | - | ------- |  | -------
|                             |  | Three Months Ended |         | Increase |       | %Increase
|                             |  | July 1,            |         | % of     |       | July 2,   |   | % of    |  |      
|Salaries & benefits          |  |                    | 233,016 |          | 91.9  |           |   | 104,971 |  | 82.6  |  |   | 128,045 |  | 121.9  
|Legal, consulting, insurance |  |                    | 356,419 |          | 140.6 |           |   | 16,240  |  | 12.8  |  |   | 340,179 |  | 2,094.7
|All Other                    |  |                    | 223,637 |          | 88.2  |           |   | 41,220  |  | 32.4  |  |   | 182,417 |  | 442.5  
|                             |  |                    |         |          |       |           |   |         |  |       |  |   |         |  |        
|Operating Expenses           |  | $                  | 813,072 |          | 320.7 |           | $ | 162,431 |  | 127.8 |  | $ | 650,641 |  | 400.5  

Salaries & Benefits Expense.

Salaries and benefits expense increased due to an increase in sales, administrative and service staff as we continue to ramp up our operation. Total
employees for the comparable period in 2005 were 5, compared to 15 in 2006. We expect to continue to add additional sales and service support staff as we expand our operation.

Legal, Consulting & Insurance Expenses.

Legal expense has increased dramatically to $186,612 for the period ended July 1, 2006 compared to $0 for the comparable period in 2005. These expenses are primarily related to services rendered surrounding the
various capital raises, securities exchange agreements and general counsel for operations. Consulting expense has also increased due to various independent contractor agreements, such as the $87,581 recognized for the valuation of warrants issued to
FP Associates, for services rendered for financing arrangements to potential acquisitions. Insurance expenses have also increased to support the various requirements set forth by industry standards and investment agreements.

All Other Expenses

Recruitment fees
of $23,480, rent of $38,792 and $60,000 of expenses related to the convertible debenture financing as well as general expenses to support a growing operation are the driving factors for the increase in expenses from 2005 to 2006.

Net Loss. Set forth below is the net loss.



|         |  |                    |            |   |                    |        |   |                     |   |          |             |  |       |   |  |   |            |   |  |          |  
|-------- |  | ------------------ | ---------- | - | ------------------ | ------ | - | ------------------- | - | -------- | ----------- |  | ----- | - |  | - | ---------- | - |  | -------- | -
|         |  | Three Months Ended |            |   | Increase(Decrease) |        |   | %Increase(Decrease) |  
|         |  | July 1, 2006       |            |   | % ofRevenue        |        |   | July 2, 2005        |   |          | % ofRevenue |  |       |  
|Net Loss |  | $                  | (1,597,206 | ) |                    | (641.1 | ) |                     | $ | (105,253 | )           |  | (82.8 | ) |  | $ | (1,491,953 | ) |  | (1,444.2 | )



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##### Table of Contents

This loss was attributable to selling and administrative costs as MSMI continues to ramp up its
operations, introducing new clinics, building a national sales force and hiring organized support for future clinics. A one time lump sum of $791,972 for interest expense was realized in June due to the discount arising from the computed beneficial
conversion feature associated with the senior secured convertible debenture sold to Vicis on June 28, 2006. We are required to expense the entire amount due to the conversion feature of the debenture being convertible immediately at the
discretion of the note holder. We also recognized $1,208,028 of a discount to the debenture which will be amortized using the effective interest method over the two year period of the note.

Our reserve for doubtful accounts. Our reserve amount is based upon estimated losses for customers who were billed directly for
products and services. For the three months ended July 1, 2006, we reserved 8.5% of revenues, or $21,616. The reserve amount is based on the sum of accounts receivable greater than 120 days. No reserve was recorded for the comparable period in
2005. We have not written off any accounts receivable to date.

Our reserve for excess or obsolete inventories. We provide
reserves for estimated excess, obsolete and shrink for durable medical equipment inventory maintained at clinics. Determining a clinics specific inventory levels and product mix can be difficult, particularly during the start-up phase of a
clinic, and until proper controls at the clinic can be established. Physical inventory counts are performed at clinic sites each month and reconciled to book value on a quarterly basis. Adjustments to book value are made at that time. For the three
months ended July 1, 2006, we have provided $33,720 for a reserve, as a result of our most recent experience and higher volume of returned inventory. Our reserve formula, modified during the second quarter of 2006, reflected this experience. As
a result, we decided to increase the reserve and it is calculated by reserving 25% of the inventory value for operating clinics in the period ended July 1, 2006. No reserve was recorded for the comparable period in 2005.

Six Months Ended July 1, 2006 Compared to Six Months Ended July 2, 2005

Net Revenue. Set forth below are the net revenues.



|                          |  |                  |         |              |   |           |  |   |         |  |      
|------------------------- |  | ---------------- | ------- | ------------ | - | --------- |  | - | ------- |  | -----
|                          |  | Six Months Ended |         | Increase     |   | %Increase
|                          |  | July 1, 2006     |         | July 2, 2005 |   |          
|Sales of Medical Products |  | $                | 356,035 |              | $ | 136,723   |  | $ | 219,312 |  | 160.4
|Service Revenue           |  | $                | 51,130  |              | $ | 11,166    |  | $ | 39,964  |  | 357,9
|                          |  |                  |         |              |   |           |  |   |         |  |      
|Total Revenue             |  | $                | 407,165 |              | $ | 147,889   |  | $ | 259,276 |  | 175.3

Expansion into new regions of the United States and an overall increase in operating clinics of 14
from 2005 is the driving factor in the increase in net revenue. A total of 7 clinics have been added during the six months ended July 1, 2006.

Cost of Sales. Set forth below are the cost of sales.



|                                      |  |                  |         |             |      |             |   |             |  |       |  |   |         |  |      
|------------------------------------- |  | ---------------- | ------- | ----------- | ---- | ----------- | - | ----------- |  | ----- |  | - | ------- |  | -----
|                                      |  | Six Months Ended |         | Increase    |      | %Increase  
|                                      |  | July 1,2006      |         | % ofRevenue |      | July 2,2005 |   | % ofRevenue |  |      
|Costs of Tangible Goods Sold          |  | $                | 288,641 |             | 81.1 |             | $ | 87,463      |  | 64.0  |  |   | 201,178 |  | 230.0
|Costs of Services                     |  | $                | 50,544  |             | 98.8 |             | $ | 14,824      |  | 132.8 |  |   | 35,720  |  | 241.0
|                                      |  |                  |         |             |      |             |   |             |  |       |  |   |         |  |      
|Costs Applicable to Sales and Revenue |  | $                | 339,185 |             | 83.3 |             | $ | 102,287     |  | 69.1  |  | $ | 236,898 |  | 231.6

Cost of sales increased primarily due to the increased sales from an increase in operating clinics
from 2005. Cost of sales as a percentage of revenue increased due to the addition of field operations staff and the recognition of a reserve for obsolete inventories, both of which were not present in 2005. These expenses result in $50,544 and
$34,520 of additional expense from 2005, respectively.



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##### Table of Contents

Operating Expenses. Set forth below are the operating expenses.



|                             |  |                  |           |             |       |             |   |             |  |       |  |   |           |  |        
|---------------------------- |  | ---------------- | --------- | ----------- | ----- | ----------- | - | ----------- |  | ----- |  | - | --------- |  | -------
|                             |  | Six Months Ended |           | Increase    |       | %Increase  
|                             |  | July 1, 2006     |           | % ofRevenue |       | July 2,2005 |   | % ofRevenue |  |      
|Salaries & benefits          |  |                  | 469,556   |             | 115.3 |             |   | 108,045     |  | 73.0  |  |   | 361,511   |  | 334.6  
|Legal, consulting, insurance |  |                  | 544,561   |             | 133.7 |             |   | 16,240      |  | 10.9  |  |   | 528,321   |  | 3,253.2
|All Other                    |  |                  | 310,837   |             | 76.3  |             |   | 79,577      |  | 53.8  |  |   | 231,260   |  | 290.6  
|                             |  |                  |           |             |       |             |   |             |  |       |  |   |           |  |        
|Operating Expenses           |  | $                | 1,324,954 |             | 325.4 |             | $ | 203,862     |  | 137.8 |  | $ | 1,121,092 |  | 549.9  

Salaries & Benefits Expense.

Salaries & benefits expense increased due to an increase in sales, administrative and service staff as we continue to ramp up our operation.
Total employees for the comparable period in 2005 were 5, compared to 15 in 2006. We expect to continue to add additional sales and service support staff as we expand our operation.

Legal, Consulting & Insurance Expenses.

Legal expense has increased dramatically to $344,781 for the period ended July 1, 2006 compared to $0 for the comparable period in 2005. These expenses are primarily related to services rendered surrounding the
various capital raises, securities exchange agreements and general counsel for operations. Consulting expense has also increased due to various independent contractor agreements, such as the $87,581 recognized for the valuation of warrants issued to
FP Associates, for services rendered for financing arrangements to potential acquisitions. Insurance expenses have also increased to $34,639 in 2006 compared to $5,741 in 2005, to support the various requirements set forth by industry standards and
investment agreements.

All Other Expenses

Recruitment fees of $23,480, rent of $38,792 and $60,000 of expenses related to the convertible debenture financing as well as general expenses to support a growing operation are the driving factors for the increase
in other expenses from 2005 to 2006. Billing service fees have also increased from $11,724 in 2005 to $30,777 in 2006, again resulting from the increase in operating clinics for the comparable periods.

Net Loss. Set forth below is the net loss.



|         |  |                  |            |   |                    |        |   |                     |   |          |             |  |        |   |  |   |            |   |  |          |  
|-------- |  | ---------------- | ---------- | - | ------------------ | ------ | - | ------------------- | - | -------- | ----------- |  | ------ | - |  | - | ---------- | - |  | -------- | -
|         |  | Six Months Ended |            |   | Increase(Decrease) |        |   | %Increase(Decrease) |  
|         |  | July 1, 2006     |            |   | % ofRevenue        |        |   | July 2, 2005        |   |          | % ofRevenue |  |        |  
|Net Loss |  | $                | (2,046,101 | ) |                    | (509.4 | ) |                     | $ | (158,250 | )           |  | (106.9 | ) |  | $ | (1,887,851 | ) |  | (1,210.7 | )

This loss was attributable to selling and administrative costs as MSMI continues to ramp up its
operations, introducing new clinics, building a national sales force and hiring organized support for future clinics. A one time lump sum of $791,972 for interest expense was realized in June due to the discount arising from the computed beneficial
conversion feature associated with the senior secured convertible debenture sold to Vicis on June 28, 2006. We are required to expense the entire amount due to the conversion feature of the debenture being convertible immediately at the
discretion of the note holder. We also recognized $1,208,028 of a discount to the debenture which will be amortized using the effective interest method over the two year period of the note.



18



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##### Table of Contents

Liquidity and Capital Resources

Cash used in operations during the first six months ended July 1, 2006 was $1,267,107, compared to $197,559 in 2005; however, financing activities
from the $2,000,000 senior convertible debenture consummated on June 28, 2006, resulted in an overall net change in cash of $726,481. Comparatively, borrowings from related parties in the amount of $215,924 in 2005, resulted in a net change in
cash of $3,275 for the comparable period in 2005. As of July 1, 2006 we had $1,849,826 in total assets, compared to $176,211 in 2005, of which $1,426,221, $3,275 in 2005, was in cash and cash equivalents, and our total liabilities were
$1,491,512, compared to $96,147 in 2005. Our projected monthly cash burn rate is $250,000. We expect that our current cash availability will support current operations through the end of 2006. We anticipate that we will need to complete additional
financing to support current working capital needs and potential acquisitions. Through these financings, we hope to expand the business organically and acquisitively.

Our reserve for doubtful accounts. Our reserve amount is based upon estimated losses for customers who were billed directly for products and services. For the first six months ended July 1,
2006, we reserved 8% of revenues, or $33,644. The reserve amount is based on the sum of accounts receivable greater than 120 days. No reserve was recorded for the comparable period in 2005. We have not written off any accounts receivable to date.

Our reserve for excess or obsolete inventories. We provide reserves for estimated excess, obsolete and shrink for durable
medical equipment inventory maintained at clinics. Determining a clinics specific inventory levels and product mix can be difficult, particularly during the start-up phase of a clinic, and until proper controls at the clinic can be established .
Physical inventory counts are performed at clinic sites each month and reconciled to book value on a quarterly basis. Adjustments to book value are made at that time. For the six months ended July 1, 2006, we have provided $34,688 for a
reserve, as a result of our most recent experience and higher volume of inventory returns. Our reserve formula, modified during the second quarter of 2006 to reflected this experience, is calculated by reserving 25% of the inventory value for
operating clinics in the period ended July 1, 2006. No reserve was recorded for the comparable period in 2005.

Plan of Operations

There is substantial doubt about the Companys ability to continue as a going concern. Our main objectives for the next 12
months are to continuing our ability to finance the Company and focusing on expanding revenue in key locations across the country. We are currently pursuing additional follow-on financing to support current working capital needs and potential
acquisitions. We expect that our current cash availability will support current operations through the end of 2006. Our projected monthly cash burn rate is $250,000. Through these financings, we hope to expand the business organically and
acquisitively.

Our plan for organic growth includes increasing our sales force in key locations across the country. In fiscal year 2006,
we plan to build our sales force from our current level of 4 sales people to 10 regional sales people. The plan includes support programs for the sales efforts including marketing, communications and program literature.

We also plan to increase our resources in administration, and to add one to three additional employees to assist with our service administration. During
the first six months of 2006, we hired two additional customer support specialists and two field representative in order to carry out our current service model. We expect to hire additional field support resources to support the growth in new
clinics during 2006. We also hired an employee to focus on the Companys purchasing activity to further support its growth, and provide greater internal control.

We do not anticipate devoting our resources to research and development in fiscal year 2006.

We continue
to pursue opportunities that will add to our current product and service offerings in an effort to fulfill the current demands in place, as well as, drive the continuous improvement of the billing and inventory processes that support the clinics.



19



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##### Table of Contents

Critical Accounting Policies and Estimates

Our discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements, which have been
prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities,
revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related to contractual allowances, doubtful accounts, inventories, rebates, product returns,
warranty obligations, income taxes, intangibles and investments. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for
making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated
financial statements, and this discussion and analysis of our financial condition and results of operations

Revenue Recognition:Our principal sources of revenues are from the sale of medical products and from providing related management services. Our revenue recognition policies are in compliance with Staff Accounting Bulletin (SAB) No. 104, Revenue
Recognition, SAB No. 101, Revenue Recognition in Financial Statements, EITF Issue No. 00-21, Revenue Arrangements with Multiple Deliverables, and EITF Issue No. 99-19, Reporting Revenue Gross as a
Principal versus Net as an Agent. Revenue is recognized when persuasive evidence of an agreement with the customer exists, products are shipped or title passes pursuant to the terms of the agreement with the customer, the amount due from the
customer is fixed or determinable, collectibility is reasonably assured, and there are no significant future performance obligations. Service revenues are recognized at the time of performance and usually billed monthly. Revenues from separate
service maintenance agreements are recognized ratably over the term of the agreements.

These policies require management, at the time of
the transaction, to assess whether the amounts due are fixed or determinable, collection is reasonably assured, and no future performance obligations exist. These assessments are based on the terms of the agreement with the customer, past history
and creditworthiness of the customer. If management determines that collection is not reasonably assured or future performance obligations exist, revenue recognition is deferred until these conditions are satisfied.

Our sources of revenue are generated from the sale of products and services.

Sales of products-sales of durable medical equipment, or DME, primarily to orthopedic and podiatry clinical practices:



| |  |  | Direct Purchase Model-Under this arrangement the clinic places an order with the Company, which then places the actual DME product order to one of its suppliers.
Title to the product is transferred to the Company upon shipment from the supplier. The Company bills the clinic upon confirmation of receipt and acceptance of the delivered products. Upon billing, the Companys performance obligation is
considered fulfilled and, accordingly, revenue is recognized at that time.
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Purchase as Dispensed Model- Under the purchase as dispensed model, the order and shipping process, payment terms, and pricing is the same as described
above. However, in this model, the product remains the property of the Company upon delivery to the clinic. The product is considered as the Companys inventory held at the clinic site until it is dispensed to a patient. Once dispensed, it
becomes billable to the clinic. Upon billing, the Companys performance obligation is considered fulfilled and, accordingly, revenue is recognized at that time.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

We have evaluated the gross sales reporting criteria set forth in paragraphs 7-14 of EITF 99-19 and determined all our sales of goods and products are
required to be reported on a gross basis.



20



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##### Table of Contents

Sales of services-sales of third party billing and collection services and Physician Extenders
services



| |  |  | Billing and Collection services model-The Company also provides certain clinics with third party billing and collection services. Under this program, the Company
provides clinics with patient agreements which are filled in with DME product information dispensed to a patient along with proper coding. The Company periodically receives this information from the clinic and inputs it into an electronic billing
system for transmittal, on behalf of the clinic, to the appropriate third party payers. The Company charges a fee for this service equal to a fixed percentage of the amounts actually collected by the clinic. The service fee revenue is recognized, on
a net basis, upon collection of the third party billings and is invoiced to clinics on a monthly basis. We have evaluated the net sales reporting criteria set forth in paragraph 16 of EITF 99-19 and determined all our billing and collection services
are required to be reported on a net basis. Billing and collection contract terms are for one to two years with termination subject to thirty days notice for cause, and 90 to 120 day notice without cause.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Physician Extenders (PE) services model- PEs are generally Certified Athletic Trainers. These health care professionals are employed by the Company but work
on site at one or more clinics. They assist the clinic in DME dispensing, inventory management, injury evaluation, prevention and rehabilitation. The Company charges a contractually agreed upon flat fee to the clinic for this service. The fee is
invoiced monthly. Related fee revenue is recognized at the end of each month that the service has been provided and costs are included in cost of sales. Contract terms are generally the same as those of Billing and Collecting services.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In accordance with EITF Issue 00-10, Accounting for Shipping and Handling Fees and Costs, we included all
shipping and handling billings to customers in revenues, and freight costs incurred for product shipments have been included in cost of products sold.

Fair Value of Financial Instruments:Our financial instruments consist of cash and cash equivalents, trade accounts receivable, accounts payable, accrued expenses, and long and short-term borrowings. The
fair value of these instruments approximates their recorded value. We do not have financial instruments with off-balance sheet risk. The fair value estimates were based on market information available to management as of July 1, 2006.

A concentration of credit risk may exist with respect to trade receivables. We perform ongoing credit evaluations of customers and
generally do not require collateral from our customers. We review accounts receivable on a regular basis to determine if any such amounts may be potentially uncollectible. We establish a general reserve based on a range of percentages applied to
accounts receivable aging categories. These percentages are based on historical collection and write-off experience. We include any balances that are determined to be uncollectible, along with the general reserve, in the overall allowance for
doubtful accounts.

Valuation of Long-Lived Assets:We review the recoverability of our long-lived assets, including
buildings, equipment and intangible assets, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on our ability to recover the
carrying value of the asset from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset, an impairment loss is recognized for
the difference between estimated fair value and carrying value. Our primary measure of fair value is based on discounted cash flows. The measurement of impairment requires management to make estimates of these cash flows related to long-lived
assets, as well as other fair value determinations.

Accounting for Obligations and Instruments Potentially to be Settled in
the Companys own Stock: We account for obligations and instruments potentially to be settled in the Companys stock in accordance with EITF Issue No. 00-19, Accounting for Derivative Financial Instruments Indexed
To, and Potentially Settled In a Companys Own Stock. This issue addresses the initial balance sheet classification and measurement of contracts that are indexed to, and potentially settled in, the Companys own stock. We account
for warrants



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issued in connection with financing arrangements in accordance with EITF Issue No. 00-19, Accounting for Derivative Financial Instruments Indexed
to, and Potentially Settled in, a Companys Own Stock. Pursuant to EITF Issue No. 00-19, an evaluation of specifically identified conditions is made to determine whether the fair value of warrants issued is required to be classified
as a derivative liability. The fair value of warrants classified as derivative liabilities is adjusted for changes in fair value at each reporting period, and the corresponding noncash gain or loss is recorded in current period earnings.

Warrant Derivative Liabilities: We account for warrants issued in connection with financing arrangements in accordance with EITF Issue
No. 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Companys Own Stock. Pursuant to EITF Issue No. 00-19, an evaluation of specifically identified conditions is made to determine whether the
fair value of warrants issued is required to be classified as a derivative liability. The fair value of warrants classified as derivative liabilities is adjusted for changes in fair value at each reporting period, and the corresponding non-cash gain
or loss is recorded in current period earnings.

Income Taxes:We must make certain estimates and judgments in determining
income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial
statement purposes.

Recent Accounting Pronouncements

On December 16, 2004, the Financial Accounting Standards Board (FASB) issued FASB Statement No. 123 (revised 2004), Share-Based Payment, which is a revision of FASB Statement No. 123, Accounting for
Stock-Based Compensation. Statement 123(R) supersedes APB Opinion No. 25, Accounting for Stock Issued to employees, and amends FASB Statement No. 95, Statement of Cash Flows. The approach to accounting for share-based payments in Statement
123(R) is similar to the approach described in Statement 123. However, Statement 123(R) requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair
values and no longer allows pro forma disclosure as an alternative to financial statement recognition. We were required to adopt Statement 123(R) at the beginning of our quarter January 1, 2006.

EITF Issue 04-8, The Effect of Contingently Convertible Instruments on Diluted Earnings per Share. The EITF reached a consensus that
contingently convertible instruments, such as contingently convertible debt, contingently convertible preferred stock, and other such securities should be included in diluted earnings per share (if dilutive) regardless of whether the market price
trigger has been met. The consensus became effective for reporting periods ending after December 15, 2004. The adoption of this pronouncement does not currently have an effect on the Companys financial statements because the inclusion of
common stock equivalents in earnings per share is anti-dilutive.

In September 2005, the FASB ratified the Emerging Issues Task
Forces (EITF) Issue No. 05-7, Accounting for Modifications to Conversion Options Embedded in Debt Instruments and Related Issues, which addresses whether a modification to a conversion option that changes its fair
value affects the recognition of interest expense for the associated debt instrument after the modification and whether a borrower should recognize a beneficial conversion feature not a debt extinguishment if a debt modification increases the
intrinsic value of the debt (for example, the modification reduces the conversion price of the debt). In September 2005, the FASB also ratified the EITFs Issue No. 05-8, Income Tax Consequences of Issuing Convertible Debt with
a Beneficial Conversion Feature, which discusses whether the issuance of convertible debt with a beneficial conversion feature results in a basis difference arising from the intrinsic value of the beneficial conversion feature on the
commitment date (which is treated recorded in the shareholders equity for book purposes, but as a liability for income tax purposes), and, if so, whether that basis difference is a temporary difference under FASB Statement No. 109,
Accounting for Income Taxes. The Company is currently in the process of evaluating the effect that the adoption of this pronouncement may have on its financial statements.



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In September 2005, the FASB also ratified the EITFs Issue No. 05-8, Income Tax
Consequences of Issuing Convertible Debt with a Beneficial Conversion Feature, which discusses whether the issuance of convertible debt with a beneficial conversion feature results in a basis difference arising from the intrinsic value of the
beneficial conversion feature on the commitment date (which is treated recorded in the shareholders equity for book purposes, but as a liability for income tax purposes), and, if so, whether that basis difference is a temporary difference
under FASB Statement No. 109, Accounting for Income Taxes. We currently carry an allowance for all deferred taxes and, therefore we do not believe the adoption of this pronouncement will have any impact on our financial
statements.

Off Balance Sheet Arrangements

We do not have any off balance sheet arrangements.



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|ITEM 3. | CONTROLS AND PROCEDURES
|------- | -----------------------

Evaluation of
disclosure controls and procedures. As required by Rule 13a-15 under the Exchange Act, as of the end of the period covered by this report, we carried out an evaluation under the supervision and with the participation of our management, including
our President and Treasurer (our acting principal executive officer and principal accounting and finance officer), of the effectiveness of the design and operation of our disclosure controls and procedures. In designing and evaluating our disclosure
controls and procedures, we and our management recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and our management necessarily
was required to apply its judgment in evaluating and implementing possible controls and procedures. The effectiveness of our disclosure controls and procedures and our internal control over financial reporting is subject to various inherent
limitations, including cost limitations, judgments used in decision making, assumptions about the likelihood of future events, the soundness of our systems, the possibility of human error, and the risk of fraud. Moreover, projections of any
evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions and the risk that the degree of compliance with policies or procedures may deteriorate over time. Because of
these limitations, there can be no assurance that any system of disclosure controls and procedures or internal control over financial reporting will be successful in preventing all errors or fraud or in making all material information known in a
timely manner to the appropriate levels of management.

The Company became aware of the material weakness in connection with the receipt of
comments from the Staff on the Securities and Exchange received by the Company on August 31, 2006 and November 3, 2006 with respect to the Companys Registration Statement on Form SB-2, filed by the Company on August 8, 2006
(File No. File No. 333-136392). A control deficiency exists when the design or operation of a control does not allow management or employees, in the ordinary course of performing their assigned functions, to prevent or detect misstatements on a
timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Companys ability to initiate, authorize, record, process, or report external financial data reliably in
accordance with GAAP, such that there is a more than remote likelihood that a misstatement of the Companys annual or interim financial statements that is more than inconsequential will not be prevented or detected. A material weakness is a
control deficiency, or combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected.

Based upon an evaluation conducted for the period ended July 1, 2006, our President and Treasurer (our acting principal executive officer and
principal accounting and finance officer) has concluded that as of the end of the period covered by this report, we have identified the following material weaknesses:



| |  |  | Reliance upon independent financial reporting consultants for review of critical accounting areas and disclosures and material non-standard transactions.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | A limited number of on-site accounting personnel which results in a lack of segregation of duties necessary for a good system of internal control.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------

Managements review of our internal controls is on-going and will take whatever measures necessary to reduce the
material deficiencies noted. Implementation of our remediation plan has included, upgrading information technology and accounting systems, and hiring of a purchasing professional to add expertise and greater control. Our plan may also include hiring
additional permanent employees, establishing additional training programs and/or engaging outside expert consultants. The effectiveness of the steps we have taken to date and the steps we are still in the process of completing is subject to
continued management review, and we may make additional changes to our internal controls and procedures. Although we have undertaken the foregoing initiatives, we cannot assure you that we will not in the future identify further material weaknesses
in our internal control over financial reporting that we have not discovered to date. We will continue to review and document our disclosure controls and procedures, including our internal controls and procedures for financial reporting, on an
ongoing basis, and may from time to time make changes aimed at enhancing their effectiveness and to ensure that our systems evolve with our business.



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Based on the evaluation of our disclosure controls and procedures as set forth above as of the end of the
period covered by this report, our President (our principal executive officer) and Chief Financial Officer (our principal accounting and finance officer) concluded that, as of such date, our disclosure controls and procedures were not effective at
the reasonable assurance level.

Changes in internal control over financial reporting. There was no change in our internal control
over financial reporting that occurred during the period covered by this report on Form 10-QSB/A that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.



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MEDICAL SOLUTIONS MANAGEMENT INC.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this Amendment No. 1 to the report to be signed on its behalf by the undersigned thereunto duly authorized.



|                       |  |                                   |  |                              
|---------------------- |  | --------------------------------- |  | -----------------------------
|                       |  | MEDICAL SOLUTIONS MANAGEMENT INC.
|                       |  |                                  
|Date: November 2, 2007 |  | By:                               |  | /s/    BRIAN
LESPERANCE      
|                       |  |                                   |  | Brian Lesperance             
|                       |  |                                   |  | President and Treasurer      
|                       |  |                                   |  | (principal executive officer)



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EXHIBIT LIST



|            |  |                                                                                                                                                                                                                                                                                                                                 
|----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                                                                                                                                                     
|            | 
|3.1         |  | Amended and Restated Articles of Incorporation of the Registrant (incorporated by reference to Appendix A to the Registrants Definitive Information Statement on Schedule 14C filed on July
11, 2006)                                                                                                                          
|            | 
|3.2         |  | Amended and Restated Bylaws of the Registrant (incorporated by reference to Appendix C from the Registrants Definitive Information Statement on Schedule 14C filed on July 11,
2006)                                                                                                                                           
|            | 
|3.3         |  | Employment Agreement dated as of May 1, 2006, by and between the Registrant and Robert G. Coffill, Jr. (incorporated by reference to Exhibit 10.2 to the Registrants Registration Statement
on Form SB-2 filed on August 8, 2006)                                                                                              
|            | 
|3.4         |  | Employment Agreement dated as of June 12, 2006, by and between the Registrant and Ross Fine (incorporated by reference to Exhibit 10.4 to the Registrants Registration Statement on Form
SB-2 filed on August 8, 2006)                                                                                                         
|            | 
|3.5         |  | Medical Solutions Management Inc. 2006 Equity Incentive Plan (incorporated by reference to Appendix C to the Registrants Definitive Information Statement on Schedule 14C filed on July 11,
2006)                                                                                                                              
|            | 
|3.6         |  | Independent Contractor Agreement, effective as of April 1, 2006, by and between the Registrant and FP Associates (incorporated by reference to Exhibit 10.9 to the Registrants Registration
Statement on Form SB-2 filed on August 8, 2006)                                                                                    
|            | 
|3.7         |  | Exchange Agreement dated as of April 13, 2006, by and among the Registrant, Vicis Capital Master Fund, Midtown Partners & Co., LLC and Nite Capital L.P. (incorporated by reference to
Exhibit 10.8 to the Registration Statement filed on April 14, 2006)                                                                      
|            | 
|3.8         |  | Securities Purchase Agreement dated as of May 3, 2006, by and between the Registrant and Vice Capital Master Fund (incorporated by reference to Exhibit 10.11 to the Registrants
Registration Statement on Form SB-2 filed on August 8, 2006)                                                                                  
|            | 
|3.9         |  | Securities Purchase and Exchange Agreement dated as of June 28, 2006 by and between the Registrant and Vicis Capital Master Fund (incorporated by reference to Exhibit 10.12 to the
Registrants Registration Statement on Form SB-2 filed on August 8, 2006)                                                                   
|            | 
|3.10        |  | Amended and Restated Investor Rights Agreement dated as of June 28, 2006 by and among the Registrant, John Hallal, Patricia Jenkins, FP Associates, Vicis Capital Master Fund and Nite Capital
L.P. (incorporated by reference to Exhibit 10.13 to the Registrants Registration Statement on Form SB-2 filed on August 8, 2006)
|            | 
|4.1         |  | 6% Convertible Senior Secured Debenture due June 28, 2008 by the Registrant in favor Vicis Capital Master Fund (incorporated by reference to the Form 10-KSB for the year ended December 31, 2006
filed on April 16, 2007)                                                                                                      
|            | 
|4.2         |  | Form of CS Warrant to Purchase Shares of Common Stock (incorporated by reference to the Form 10-KSB for the year ended December 31, 2006 filed on April 16, 2007)                                                                                                                                                               
|            | 
|4.3         |  | Convertible Promissory Note dated May 3, 2006 for $300,000 by the Registrant in favor of Vicis Capital Master Fund (incorporated by reference to the Form 10-KSB for the year ended
December 31, 2006 filed on April 16, 2007)                                                                                                  
|            | 
|10.1        |  | DME Supply and Related Services Agreement dated February 1, 2005 by and between the Registrant and Steadman Hawkins Clinic-Denver (incorporated by reference to the Form 10-KSB for the year ended
December 31, 2006 filed on April 16, 2007)                                                                                   



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|            |  |                                                                                                                                                                                                                                                           
|----------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                                                                               
|            | 
|10.2        |  | DME Supply and Related Services Agreement dated May 5, 2005 by and between the Registrant and Berkshire Orthopaedic Associates, Inc. (incorporated by reference to the Form 10-KSB for the
year ended December 31, 2006 filed on April 16, 2007)          
|            | 
|10.3        |  | DME Supply and Related Services Agreement dated July 5, 2005 by and between the Registrant and Nassau Orthopaedic Surgeons, P.C. (incorporated by reference to the Form 10-KSB for the year ended
December 31, 2006 filed on April 16, 2007)              
|            | 
|10.4        |  | DME Supply and Related Services Agreement dated January 2006 by and between the Registrant and The Orthopaedic Excellence of Long Island, P.C. (incorporated by reference to the Form 10-KSB
for the year ended December 31, 2006 filed on April 16, 2007)
|            | 
|31.1        |  | Certification of principal executive officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (filed herewith)                                                                                                                                   
|            | 
|31.2        |  | Certification of principal accounting and finance officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (filed herewith)                                                                                                                      
|            | 
|32.1        |  | Certification of principal executive officer and principal accounting and finance officer pursuant to Section 906 of the Sarbanes Oxley Act of 2002 (filed herewith)