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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 SEPTEMBER 30, 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, Massachusetts 01752

(Address of principal executive offices)(Zip Code)

(508) 597-6300

(Registrants telephone number, including area code)

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

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

As of October 29, 2007, there were 58,217,994 shares of the issuer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 1: FINANCIAL STATEMENTS                                      |  | 1   
|                                                                  | 
|ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION |  | 14  
|                                                                  | 
|ITEM 3. CONTROLS AND PROCEDURES                                   |  | 26  



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##### Table of Contents

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 September 30, 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 of Part I of
our originally filed Quarterly Report on Form 10-QSB for the quarter ended September 30, 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 November 14, 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

|ITEM 1: | FINANCIAL STATEMENTS
|------- | --------------------

Medical Solutions
Management Inc.

(Formerly China Media Networks International, Inc.)

Consolidated Balance Sheet (unaudited)

September 30, 2006



|                                                                                      |  |                                  |            |  
|------------------------------------------------------------------------------------- |  | -------------------------------- | ---------- | -
|                                                                                      |  | As ofSeptember 30,2006(restated) |           
|Assets                                                                                |  |                                  |            |  
|Current Assets                                                                        |  |                                  |            |  
|Cash & cash equivalents                                                               |  | $                                | 646,558    |  
|Accounts receivable, net                                                              |  |                                  | 275,820    |  
|Inventory                                                                             |  |                                  | 123,716    |  
|Prepaid expenses                                                                      |  |                                  | 41,906     |  
|                                                                                      |  |                                  |            |  
|Total current assets                                                                  |  |                                  | 1,088,000  |  
|Property & equipment (net)                                                            |  |                                  | 102,546    |  
|                                                                                      |  |                                  |            |  
|Total assets                                                                          |  | $                                | 1,190,546  |  
|Liabilities & Stockholders Deficiency                                                |  |                                  |            |  
|Current Liabilities:                                                                  |  |                                  |            |  
|Accounts payable                                                                      |  | $                                | 188,800    |  
|Accrued expenses                                                                      |  |                                  | 201,346    |  
|Demand notes                                                                          |  |                                  | 0          |  
|Advances from related parties                                                         |  |                                  | 0          |  
|Convertible notes payable                                                             |  |                                  | 25,000     |  
|                                                                                      |  |                                  |            |  
|Total current liabilities                                                             |  |                                  | 415,146    |  
|Convertible notes payablelong term (net)                                             |  |                                  | 889,892    |  
|                                                                                      |  |                                  |            |  
|Total long-term liabilities                                                           |  |                                  | 889,892    |  
|                                                                                      |  |                                  |            |  
|Total Liabilities                                                                     |  |                                  | 1,305,038  |  
|Stockholders Deficiency                                                              |  |                                  |            |  
|                                                                                      | 
|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                                                                   |  |                                  | (3,685,264 | )
|                                                                                      |  |                                  |            |  
|Total Stockholders Deficiency                                                        |  |                                  | (114,492   | )
|                                                                                      |  |                                  |            |  
|Total Liabilities & Deficiency                                                        |  | $                                | 1,190,546  |  

See Notes to Unaudited Interim Financial Statements.



1



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##### Table of Contents

Medical Solutions Management Inc.

(Formerly China Media Networks International, Inc.)

Consolidated Statement of
Operations from January 1, 2006 to September 30, 2006 (unaudited)

and the comparative period for Fiscal Year 2005



|                                                   |  |                                             |            |   |                                         |   |            |                                              |  |   |                                 |   |  |   |            |  
|-------------------------------------------------- |  | ------------------------------------------- | ---------- | - | --------------------------------------- | - | ---------- | -------------------------------------------- |  | - | ------------------------------- | - |  | - | ---------- | -
|                                                   |  | Nine MonthsEndedSeptember 30,2006(restated) |            |   | Feb 1, 2005(inception) toOctober 1,2005 |   |            | Three MonthsEndedSeptember 30,2006(restated) |  |   | Three MonthsEndedOctober 1,2005 |  
|Revenue:                                           |  |                                             |            |   |                                         |   |            |                                              |  |   |                                 |   |  |   |            |  
|Sales of Medical Products                          |  | $                                           | 595,553    |   |                                         | $ | 250,515    |                                              |  | $ | 239,517                         |   |  | $ | 113,780    |  
|Service Revenue                                    |  |                                             | 90,151     |   |                                         |   | 36,631     |                                              |  |   | 39,021                          |   |  |   | 25,466     |  
|                                                   |  |                                             |            |   |                                         |   |            |                                              |  |   |                                 |   |  |   |            |  
|Total revenue                                      |  |                                             | 685,704    |   |                                         |   | 287,146    |                                              |  | $ | 278,538                         |   |  | $ | 139,246    |  
|                                                   |  |                                             |            |   |                                         |   |            |                                              |  |   |                                 |   |  |   |            |  
|Cost of Sales:                                     |  |                                             |            |   |                                         |   |            |                                              |  |   |                                 |   |  |   |            |  
|Cost of Medical Products                           |  |                                             | 445,027    |   |                                         |   | 168,101    |                                              |  |   | 156,385                         |   |  |   | 80,637     |  
|                                                   |  |                                             |            |   |                                         |   |            |                                              |  |   |                                 |   |  |   |            |  
|Costs Applicable to Sales & Revenue                |  |                                             | 544,834    |   |                                         |   | 202,543    |                                              |  |   | 205,648                         |   |  |   | 100,256    |  
|                                                   |  |                                             |            |   |                                         |   |            |                                              |  |   |                                 |   |  |   |            |  
|Gross Profit                                       |  |                                             | 140,870    |   |                                         |   | 84,603     |                                              |  |   | 72,890                          |   |  |   | 38,990     |  
|                                                   |  |                                             | 20.5       | % |                                         |   | 29.5       | %                                            |  |   | 26.2                            | % |  |   | 28.0       | %
|Selling, General & Administrative Expenses         |  |                                             | 2,139,893  |   |                                         |   | 406,809    |                                              |  |   | 814,938                         |   |  |   | 202,935    |  
|                                                   |  |                                             |            |   |                                         |   |            |                                              |  |   |                                 |   |  |   |            |  
|Total Operating Expenses                           |  |                                             | 2,139,893  |   |                                         |   | 406,809    |                                              |  |   | 814,938                         |   |  |   | 202,935    |  
|                                                   |  |                                             |            |   |                                         |   |            |                                              |  |   |                                 |   |  |   |            |  
|(Loss) Before Other Income                         |  |                                             | (1,999,023 | ) |                                         |   | (322,206   | )                                            |  |   | (742,048                        | ) |  |   | (163,945   | )
|Other Income (Expense)                             |  |                                             |            |   |                                         |   |            |                                              |  |   |                                 |   |  |   |            |  
|Interest Income                                    |  |                                             | 12,943     |   |                                         |   | 12         |                                              |  |   | 9,429                           |   |  |   | 0          |  
|                                                   |  |                                             |            |   |                                         |   |            |                                              |  |   |                                 |   |  |   |            |  
|Other Income                                       |  |                                             | 0          |   |                                         |   | 0          |                                              |  |   | 0                               |   |  |   | 0          |  
|                                                   |  |                                             |            |   |                                         |   |            |                                              |  |   |                                 |   |  |   |            |  
|Interest (expense), net                            |  |                                             | (920,042   | ) |                                         |   | 0          |                                              |  |   | (128,070                        | ) |  |   | 0          |  
|                                                   |  |                                             |            |   |                                         |   |            |                                              |  |   |                                 |   |  |   |            |  
|(Loss) Before Income Taxes                         |  |                                             | (2,906,122 | ) |                                         |   | (322,194   | )                                            |  |   | (860,689                        | ) |  |   | (163,945   | )
|                                                   |  |                                             |            |   |                                         |   |            |                                              |  |   |                                 |   |  |   |            |  
|Income Taxes                                       |  |                                             | 669        |   |                                         |   | 0          |                                              |  |   | 0                               |   |  |   | 0          |  
|                                                   |  |                                             |            |   |                                         |   |            |                                              |  |   |                                 |   |  |   |            |  
|Net Loss available to common shareholders          |  | $                                           | (2,906,791 | ) |                                         | $ | (322,194   | )                                            |  | $ | (860,689                        | ) |  | $ | (163,945   | )
|                                                   |  |                                             |            |   |                                         |   |            |                                              |  |   |                                 |   |  |   |            |  
|Basic and Diluted Net Loss Per Common Share        |  | $                                           | (0.14      | ) |                                         | $ | (0.02      | )                                            |  | $ | (0.04                           | ) |  | $ | (0.01      | )
|Weighted Average Common Shares Outstanding (Basic) |  |                                             | 20,663,215 |   |                                         |   | 16,414,419 |                                              |  |   | 20,446,729                      |   |  |   | 16,414,419 |  

See Notes to Unaudited Interim Financial Statements.



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Medical Solutions Management Inc.

(Formerly China Media Networks International, Inc.)

Consolidated Statement of
Cash Flows from January 1, 2006 to September 30, 2006 (unaudited)

and the comparative period for Fiscal Year 2005



|                                                                                               |  |                                             |            |   |                                              |   |          |  
|---------------------------------------------------------------------------------------------- |  | ------------------------------------------- | ---------- | - | -------------------------------------------- | - | -------- | -
|                                                                                               |  | Nine MonthsEndedSeptember 30,2006(restated) |            |   | Feb 1, 2005(inception)to EndedOctober 1,2005 |  
|Cash Flows from Operating Activities:                                                          |  |                                             |            |   |                                              |   |          |  
|Net Income                                                                                     |  | $                                           | (2,906,791 | ) |                                              | $ | (322,194 | )
|Adjustments required to reconcile net loss to cash flows from operating activities:            |  |                                             |            |   |                                              |   |          |  
|Increase in allowance for doubtful accounts                                                    |  |                                             | 69,557     |   |                                              |   |          |  
|Depreciation & Amortization                                                                    |  |                                             | 27,790     |   |                                              |   | 3,549    |  
|Non-cash interest expense                                                                      |  |                                             | 889,892    |   |                                              |   |          |  
|Stock and options issued for services                                                          |  |                                             | 102,581    |   |                                              |   |          |  
|Changes in Operating Assets & Liabilities                                                      |  |                                             |            |   |                                              |   |          |  
|Accounts receivable                                                                            |  |                                             | (219,021   | ) |                                              |   | (137,563 | )
|Inventory                                                                                      |  |                                             | (14,678    | ) |                                              |   | (124,733 | )
|Prepaid expenses                                                                               |  |                                             | (14,387    | ) |                                              |   | (21,263  | )
|Accounts payable                                                                               |  |                                             | (129,191   | ) |                                              |   | 142,750  |  
|Accrued expenses                                                                               |  |                                             | 168,746    |   |                                              |   | 51,995   |  
|Loan payable                                                                                   |  |                                             |            |   |                                              |   |          |  
|                                                                                               |  |                                             |            |   |                                              |   |          |  
|Net cash used by operating activities                                                          |  |                                             | (2,025,502 | ) |                                              |   | (407,459 | )
|                                                                                               |  |                                             |            |   |                                              |   |          |  
|Cash Flows from Investing Activities:                                                          |  |                                             |            |   |                                              |   |          |  
|Purchase of Equipment                                                                          |  |                                             | (27,679    | ) |                                              |   | (33,723  | )
|                                                                                               |  |                                             |            |   |                                              |   |          |  
|Net cash used by investing activities                                                          |  |                                             | (27,679    | ) |                                              |   | (33,723  | )
|                                                                                               |  |                                             |            |   |                                              |   |          |  
|Cash Flows from Financing Activities:                                                          |  |                                             |            |   |                                              |   |          |  
|Convertible notes payable                                                                      |  |                                             | 2,000,000  |   |                                              |   | 0        |  
|Proceeds from common stock offering                                                            |  |                                             | 0          |   |                                              |   | 445,414  |  
|Purchase of treasury stock                                                                     |  |                                             | 0          |   |                                              |   | 0        |  
|Payment of offering costs                                                                      |  |                                             | 0          |   |                                              |   | 0        |  
|Borrowings from related parties                                                                |  |                                             | 0          |   |                                              |   | 34,517   |  
|Payment of related party debt                                                                  |  |                                             | 0          |   |                                              |   | 0        |  
|                                                                                               |  |                                             |            |   |                                              |   |          |  
|Net cash used by financing activities                                                          |  |                                             | 2,000,000  |   |                                              |   | 479,931  |  
|                                                                                               |  |                                             |            |   |                                              |   |          |  
|Net Change In Cash                                                                             |  |                                             | (53,181    | ) |                                              |   | 38,749   |  
|Cash-Beginning                                                                                 |  |                                             | 699,740    |   |                                              |   | 0        |  
|                                                                                               |  |                                             |            |   |                                              |   |          |  
|Cash-Ending                                                                                    |  | $                                           | 646,558    |   |                                              | $ | 38,749   |  
|                                                                                               |  |                                             |            |   |                                              |   |          |  
|See Notes to Interim Financial Statements.                                                     |  |                                             |            |   |                                              |   |          |  
|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        |  
|                                                                                               |  |                                             |            |   |                                              |   | 0        |  

See Notes to Unaudited Interim Financial Statements.



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MEDICAL SOLUTIONS MANAGEMENT INC.

NOTES TO UNAUDITED INTERIM FINANCIALS 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 nine-month periods ended September 30, 2006 and 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/A and
therefore do not include some information and notes necessary to conform to 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 replaced APB Opinion No. 20 Accounting Changes, and FASB Statement No. 3 Reporting Accounting Changes in Interim Financial
Statements, and changed 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. We do not believe that adoption of SFAS 154 will have a material impact on our financial statements.

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).



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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;
| | - |  | -----------------------------------------------------------------------------------------------------------------



| |  |  | 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;
| | - |  | ---------------------------------------------------------------------------------------------



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##### Table of Contents

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 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. They 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;
| | - |  | -------------------------------------------------



| |  |  | 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.



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##### Table of Contents

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 $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.



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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 determined the fir value of the warrants using the Black-Scholes pricing model. In computng 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 |  |   | (108,785  | )
|Amortization of discount through 2007 |  |   | (587,366  | )
|Amortization of discount through 2008 |  |   | (413,957  | )
|                                      |  |   |           |  
|Current carrying value                |  | $ | 889,892   |  

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 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.



8



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##### Table of Contents

5. 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.

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 September 30, 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 nine-month period ended September 30, 2006 was $87,581, which represents the expense associated with the issuance of the
warrant to FP Associates (none during the nine-month period ended October 1, 2005).

The following table summarizes the status of the
Companys aggregate options as of September 30, 2006, including the issuance by the Company of the warrant to FP Associates:



|                         |  |                     |   |          |                               |                     |                                |      |        |         |                               |   |     
|------------------------ |  | ------------------- | - | -------- | ----------------------------- | ------------------- | ------------------------------ | ---- | ------ | ------- | ----------------------------- | - | ----
|                         |  | Options Outstanding |   | Weighted |                               | Options Exercisable
|Range of exercise prices |  | Shares              |   |          | Weightedaverage exerciseprice |                     | Averageremaining life inmonths |      | Shares |         | Weightedaverage 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 Management, Inc., our wholly-owned subsidiary, to be converted to substantially equivalent
options in our Company pursuant to the 2006 Equity Incentive Plan.
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6. Managements Plan

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in the notes to the
unaudited financial statements, the Companys losses have resulted in an accumulated deficit of $2,918,065 for the nine month period ending September 30, 2006, and operating activities consumed $2,025,502 in cash. These conditions raise
substantial doubt about our ability to continue as a going concern. Managements plans in regard to these matters are described in the notes. The financial statements do not include any adjustments that might result from the outcome of this
uncertainty.

Our two main objectives for the next 12 months are to continue our ability to finance the Company and to focus on expanding
revenue in key locations across the country. We expect that our current cash availability will support current operations through the beginning of December 2006. Our current monthly cash burn rate is approximately $250,000. 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.



9



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Our plan for organic growth includes increasing our sales force in key locations across the country. In
fiscal year 2006 and 2007, we plan to build our sales force from our current level, 5 sales people, to 10 sales people. During the third quarter of 2006 we added one regional sales manager in the Southeast and one regional sales manager will begin
at the start of the fourth quarter on the West Coast. The plan includes support programs for the sales efforts including marketing, communications and program literature.

We have increased our resources in accounting and administration by recently hiring a staff accountant as well as a purchasing professional in the second quarter. We plan to add one to three additional employees to
assist with our service administration. During the nine months ended September 30, 2006, we hired five additional customer support specialists, one field representative and one regional operations manager 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 and 2007.

We do not
anticipate devoting our resources to research and development in fiscal year 2006 or 2007 at the current time.

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.

7. Restatement of Financial Statements

2005

In connection with the filing of a registration statement on Form SB-2, 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 stock, 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, there are no shares of Series A Preferred Stock presently outstanding.

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. (n/k/a Medical Solutions Management
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
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



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##### Table of Contents

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 increased 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 tables below set forth the schedule of journal entries:



|                                                                                                                                                                                                                                                                                                                                         |  |         |  |        
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------- |  | -------
|Adjustment 1                                                                                                                                                                                                                                                                                                                             |  |         |  |        
|Common stock subscriptions receivable                                                                                                                                                                                                                                                                                                    |  | 13,222  |  |        
|Additional paid-in capital to establish subscription receivable account as a component of paid-in capital                                                                                                                                                                                                                                |  |         |  | 13,222 
|                                                                                                                                                                                                                                                                                                                                         |  |        
|Adjustment 2                                                                                                                                                                                                                                                                                                                             |  |         |  |        
|Preferred stock                                                                                                                                                                                                                                                                                                                          |  | 353,445 |  |        
|Additional paid-in capital 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 |  |         |  | 353,445

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
September 30, 2006 were not affected by the Restatement.

2006

Restated 2006 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. That adjustment related to events or transactions in the second and third fiscal quarters of 2006.
The relative fair values of the beneficial conversion feature and the warrants were recalculated at $791,972 and $1,208,028 respectively.

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 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.

The Company used the Black-Scholes option pricing model in valuing the detachable warrants. The inputs for the valuation analysis of the warrants
include the market value of the Companys common stock, the estimated volatility of the Companys common stock, the exercise price of the warrants and the risk free interest rate. The key inputs for the valuation analysis at were a
volatility of 75%, common stock value of $3.00 and a risk free interest rate of 5.25%. In accordance with EITF 98-5, the company recorded the warrants as a debt discount with offsetting charges to additional paid-in capital for their relative fair
value of $1,208,028.



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The adjustments had no impact on the statement of cash flows of either interim period.

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 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.

Adjustment 3:The relative fair value of the discount ascribed to the warrants increased from $820,144 to $1,208,028. The increase
in discount required recalculation of the accretion of the carrying value and resultant amortization of the loan discount over the two year period of the loan. As a result, interest expense for the three-month period and interim period to
September 30, 2006 was increased by $16,898, the difference of the previously recognized amortized discount arising of $81,022 and the recalculated amortization of $97,920, the recalculated beneficial conversion feature.



12



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##### Table of Contents

We have also revised the disclosure table to reference the adjustments by number as follows:

Medical Solutions Management Inc.

Recalculated Consolidated Balance Sheet



|                                                                                      |  |                |            |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   |            |  
|------------------------------------------------------------------------------------- |  | -------------- | ---------- | - | ------------------------------ | -------- | - | ------------------------------------------------------------------------------ | ---------- | - | ---------------------------------------------------------------------------- | -------- | - | ------------------------------------ | ------- | - | -------------- | - | ---------- | -
|                                                                                      |  |                |            |   | Adjustment 1                   |          |   | Adjustment 2                                                                   |            |   | Adjustment 3                                                                 |          |   |                                      |        
|                                                                                      |  | Sept. 30, 2006 |            |   | unwind andcancel treasurystock |          |   | unwind originalentry ascribingvalues towarrants andbeneficialconversionfeature |            |   | recalculation ofrelative fairvalue ofwarrants andbeneficialconversionfeature |          |   | Amortizationof relateddiscount (net) |         |   | Sept. 30, 2006 |  
|                                                                                      |  | (as filed)     |            |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   | (restated)     |  
|Assets                                                                                |  |                |            |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   |            |  
|Current Assets                                                                        |  |                |            |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   |            |  
|Cash & cash equivalents                                                               |  | $              | 646,558    |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                | $ | 646,558    |  
|Accounts receivable, net                                                              |  |                | 275,820    |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   | 275,820    |  
|Inventory                                                                             |  |                | 123,716    |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   | 123,716    |  
|Prepaid expenses                                                                      |  |                | 41,906     |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   | 41,906     |  
|Due from affiliated entities                                                          |  |                | 0          |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   | 0          |  
|                                                                                      |  |                |            |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   |            |  
|Total current assets                                                                  |  |                | 1,088,000  |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   | 1,088,000  |  
|                                                                                      |  |                |            |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   |            |  
|Property & equipment (net)                                                            |  |                | 102,546    |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   | 102,546    |  
|                                                                                      |  |                |            |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   |            |  
|total assets                                                                          |  | $              | 1,190,546  |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                | $ | 1,190,546  |  
|                                                                                      |  |                |            |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   |            |  
|Liabilities & Stockholders Deficiency                                                |  |                |            |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   |            |  
|Current Liabilities:                                                                  |  |                |            |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   |            |  
|Accounts payable                                                                      |  | $              | 188,800    |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                | $ | 188,800    |  
|Accrued expenses                                                                      |  |                | 201,346    |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   | 201,346    |  
|Convertible notes payable                                                             |  |                | 25,000     |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   | 25,000     |  
|                                                                                      |  |                |            |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   |            |  
|Total current liabilities                                                             |  |                | 415,146    |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   | 415,146    |  
|                                                                                      |  |                |            |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   |            |  
|Convertible note payable                                                              |  |                | 1,260,878  |   |                                |          |   |                                                                                | (1,179,856 | ) |                                                                              | 791,972  |   |                                      | 16,898  |   |                |   | 889,892    |  
|                                                                                      |  |                |            |   |                                |         
|Stockholders Deficiency:                                                             |  |                |            |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   |            |  
|Common stock-100,000,000 authorized $0.0001 par value 20,446,729 issued & outstanding |  |                | 2,044      |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   | 2,044      |  
|Additional paid in capital                                                            |  |                | 4,107,343  |   |                                | (898,327 | ) |                                                                                |            |   |                                                                              | 359,712  |   |                                      |         |   |                |   | 3,568,728  |  
|Treasury stock                                                                        |  |                | (898,327   | ) |                                | 898,327  |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   | 0          |  
|Accumulated Deficit                                                                   |  |                | (3,696,538 | ) |                                |          |   |                                                                                | 820,144    |   |                                                                              | (791,972 | ) |                                      | (16,898 | ) |                |   | (3,685,264 | )
|                                                                                      |  |                |            |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   |            |  
|Total Stockholders Deficiency                                                        |  |                | (485,478   | ) |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   | (114,492   | )
|                                                                                      |  |                |            |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   |            |  
|total Liabilities & Stockholder Deficiency                                            |  | $              | 1,190,546  |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                | $ | 1,190,546  |  
|                                                                                      |  |                |            |   |                                |          |   |                                                                                |            |   |                                                                              |          |   |                                      |         |   |                |   |            |  

The adjustments had no impact on the statement of cash flows of either interim period.

8. Subsequent Events

None.



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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. from China Media Networks International, Inc. On
December 30, 2005, a merger transaction was consummated among Medical Solutions Management Inc. (f/k/a China Media Networks International, Inc.), 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, CMNW Acquisition Corporation ceased to exist, and OrthoSupply Management, Inc. continued as the surviving
corporation and wholly-owned subsidiary of Medical Solutions Management Inc. OrthoSupply Management, Inc. acts as our operating company and we are the parent holding company, and sole stockholder, of OrthoSupply Management, Inc.

OrthoSupply Management, Inc. has generated revenue from its operations since February 2005. In May and June 2006, we completed debt financings that
raised aggregate gross proceeds of $2,000,000, which we intend to use for working capital purposes. 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.

Three Months Ended September 30, 2006 Compared to Three Months Ended
October 1, 2005

Net Revenue. Set forth below are the net revenues.



|                          |  |                    |         |                |   |          |  |           |         |  |      
|------------------------- |  | ------------------ | ------- | -------------- | - | -------- |  | --------- | ------- |  | -----
|                          |  | Three Months Ended |         |                |   |         
|                          |  | September 30,2006  |         | October 1,2005 |   | Increase |  | %Increase
|Sales of Medical Products |  |                    | 239,517 |                |   | 113,780  |  |           | 125,737 |  | 110.5
|Service Revenue           |  |                    | 39,021  |                |   | 25,466   |  |           | 13,555  |  | 53.2 
|Total Revenue             |  | $                  | 278,538 |                | $ | 139,246  |  | $         | 139,292 |  | 100.1

Net revenues increased in the three months ended September 30, 2006 primarily due to the
increase in the number of clinics operating from 7 in 2005 to 30 in 2006. Expansion into new regions throughout the United States has been the driving factor for the increase in clinics as we continue to grow our operations. A total of 12
clinics were added during the three months ended September 30, 2006. Three of these new clinics were added in the new Southeast region. Four of the new clinics were added during the last week of the third quarter; therefore the revenue impact
of these clinics will not be realized until the fourth quarter.



14



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##### Table of Contents

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



|                               |  |                    |         |             |       |   |                |   |             |  |      |          |  |           |         |  |       |  
|------------------------------ |  | ------------------ | ------- | ----------- | ----- | - | -------------- | - | ----------- |  | ---- | -------- |  | --------- | ------- |  | ----- | -
|                               |  | Three Months Ended |         |             |       |   |                |  
|                               |  | September 30,2006  |         | % ofRevenue |       |   | October 1,2005 |   | % ofRevenue |  |      | Increase |  | %Increase |        
|Cost of Medical Products       |  |                    | 156,385 |             | 65.3  |   |                |   | 80,637      |  | 70.9 |          |  |           | 75,748  |  | 93.9  |  
|Cost of service                |  |                    | 49,263  |             | 126.2 |   |                |   | 19,619      |  | 77.0 |          |  |           | 29644   |  | 151.1 |  
|Costs of Products and Services |  | $                  | 205,648 |             | 73.8  | % |                | $ | 100,256     |  | 71.9 | %        |  | $         | 105,392 |  | 105.1 | %

The percentage represents the costs associated with the medical supplies and services we supply to
our customers. Cost of sales increased primarily due to the increased sales from the additional operating clinics and the addition of field operations staff compared to the comparative period 2005. Cost of sales as a percentage of revenue stayed
consistent with the figures for the comparative period in 2005.

Operating Expenses. Set forth below are the operating
expenses.



|                             |  |                    |         |             |          |   |                |   |             |  |       |   |  |   |         |  |         |  
|---------------------------- |  | ------------------ | ------- | ----------- | -------- | - | -------------- | - | ----------- |  | ----- | - |  | - | ------- |  | ------- | -
|                             |  | Three Months Ended |         |             | Increase |   | %Increase      |  
|                             |  | September 30,2006  |         | % ofRevenue |          |   | October 1,2005 |   | % ofRevenue |  |       |  
|Salaries and benefits        |  | $                  | 256,507 |             | 92.1     | % |                | $ | 147,632     |  | 106.0 | % |  | $ | 108,875 |  | 73.7    | %
|Legal, consulting, insurance |  |                    | 262,536 |             | 94.3     |   |                |   | 13,460      |  | 9.7   |   |  |   | 249,076 |  | 1,855.2 |  
|All Other                    |  |                    | 295,895 |             | 106.2    |   |                |   | 41,843      |  | 30.0  |   |  |   | 254,052 |  | 607.2   |  
|                             |  |                    |         |             |          |   |                |   |             |  |       |   |  |   |         |  |         |  
|Operating Expenses           |  | $                  | 814,938 |             | 292.6    | % |                | $ | 202,935     |  | 145.7 | % |  | $ | 612,003 |  | 301.6   | %

Salaries and Benefits Expense.

Salaries and benefits expense increased due to an increase in sales, administrative and service staff as we continue to grow up our operation. Total
employees for the three months ended September 30, 2005 was 23, compared to 6 in comparative period in 2005. We expect to continue to add additional sales and service support staff as we expand our operation.

Legal, Consulting & Insurance Expenses.

Legal expense increased dramatically to $193,795 for the three months ended September 30, 2006 compared to $0 for the comparative period in 2005. These expenses are primarily related to services rendered
surrounding the completion of the June 2006 debt financing, associated registration of securities with the SEC, and general counsel for operations. Consulting expense has also increased due to various independent contractor agreements primarily for
sales related services. Insurance expense has also increased to support the various requirements set forth by industry standards and growth of the current business.

All Other Expenses

Recruitment fees of $37,800, rent of $12,742 and $29,077 of printing expenses
related to the forms for new clinics added, marketing program expense of $12,955 as well as general expenses to support a growing operation are the driving factors for the increase in expenses from 2005 to the comparative period in 2006.

Net Loss. Set forth below is the Net loss.



|         |  |                    |          |   |                    |        |   |                     |   |          |             |  |        |   |  |   |          |   |  |        |  
|-------- |  | ------------------ | -------- | - | ------------------ | ------ | - | ------------------- | - | -------- | ----------- |  | ------ | - |  | - | -------- | - |  | ------ | -
|         |  | Three Months Ended |          |   | Increase(Decrease) |        |   | %Increase(Decrease) |  
|         |  | September 30,2006  |          |   | % ofRevenue        |        |   | October 1,2005      |   |          | % ofRevenue |  |        |  
|Net Loss |  | $                  | (860,689 | ) |                    | (309.0 | ) |                     | $ | (163,945 | )           |  | (117.7 | ) |  | $ | (696,744 | ) |  | (414.7 | )



15



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##### Table of Contents

The Net loss for the three months ended September 30, 2006 was attributable to selling and
administrative costs as we continue to grow our operations, by introducing new clinics, building a national sales force and hiring organized support for future clinics. Interest expense of $97,920 was recognized due to the amortization of the
discount arising from the relative fair value assigned to the equity component associated with the senior secured convertible debenture sold to Vicis Capital Master Fund on June 28, 2006. An additional $30,150 of accrued interest expense was
recognized at the stated rate of 6% debenture financing consummated in June 2006.

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 September 30, 2006, we reserved 14.4% of revenues, or $39,975. The reserve amount is based on the sum
of accounts receivable greater than 120 days. We have added an additional reserve for new business entered into during the month of September 2006. This reserve is based on projected receipts for this new line of business. For the month of September
2006, the reserve records amounted to $7,965. No reserve was recorded for the comparative 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 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 are made at that time. For the three months ended September 30, 2006, we have provided $7,670 for a reserve, as a result of our most recent experience and higher volume. Our reserve formula, modified during
the second quarter of 2006 to account for this experience, is calculated by reserving 25% of the inventory value for operating clinics in the period ended September 30, 2006. No reserve was recorded for the comparable period in 2005.

Nine Months Ended September 30, 2006 Compared to Nine Months Ended October 1, 2005

Net Revenue. Set forth below are the net revenues.



|                          |  |                   |         |                |   |           |  |   |         |  |      
|------------------------- |  | ----------------- | ------- | -------------- | - | --------- |  | - | ------- |  | -----
|                          |  | Nine Months Ended |         | Increase       |   | %Increase
|                          |  | September 30,2006 |         | October 1,2005 |   |          
|Sales of Medical Products |  |                   | 595,553 |                |   | 250,515   |  |   | 345,038 |  | 137.7
|Service Revenue           |  |                   | 90,151  |                |   | 36,631    |  |   | 53,520  |  | 146.1
|Total Revenue             |  | $                 | 685,704 |                | $ | 287,146   |  | $ | 398,558 |  | 138.8

Expansion into new regions of the United States and an overall increase in operating clinics of 23
from the comparative period in 2005 is the driving factor in the increase in net revenue. A total of 19 clinics have been added during the nine months ended September 30, 2006.

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



|                               |  |                   |         |             |          |   |                |   |             |  |      |   |  |   |         |  |       |  
|------------------------------ |  | ----------------- | ------- | ----------- | -------- | - | -------------- | - | ----------- |  | ---- | - |  | - | ------- |  | ----- | -
|                               |  | Nine Months Ended |         |             | Increase |   | %Increase      |  
|                               |  | September 30,2006 |         | % ofRevenue |          |   | October 1,2005 |   | % ofRevenue |  |      |  
|Cost of Medical Products       |  | $                 | 445,027 |             | 74.7     |   |                | $ | 168,101     |  | 67.1 |   |  |   | 276,926 |  | 164.7 |  
|Cost Of service                |  |                   | 99,807  |             | 110.7    |   |                |   | 34,442      |  | 94.0 |   |  |   | 65,365  |  | 189.8 |  
|Costs of Products and Services |  | $                 | 544,834 |             | 79.5     | % |                | $ | 205,542     |  | 70.5 | % |  | $ | 339,292 |  | 165.1 | %

Cost of sales increased primarily due to the increased sales from an increase in operating clinics
from the comparative period in 2005. Cost of sales as a percentage of revenue increased slightly due to the addition of field operations staff and the recognition of a reserve for obsolete inventories, both of which were not present in the
comparative period in 2005. These expenses result in $99,807 and $42,190 of additional expense from 2005, respectively.



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##### Table of Contents

Operating Expenses. Set forth below are the operating expenses.



|                             |  |                   |           |             |          |   |                |   |             |  |       |   |  |   |           |  |         |  
|---------------------------- |  | ----------------- | --------- | ----------- | -------- | - | -------------- | - | ----------- |  | ----- | - |  | - | --------- |  | ------- | -
|                             |  | Nine Months Ended |           |             | Increase |   | %Increase      |  
|                             |  | September 30,2006 |           | % ofRevenue |          |   | October 1,2005 |   | % ofRevenue |  |       |  
|Salaries and benefits        |  | $                 | 687,593   |             | 100.2    | % |                | $ | 255,677     |  | 89.0  | % |  | $ | 431,916   |  | 168.9   | %
|Legal, consulting, insurance |  |                   | 807,097   |             | 117.7    |   |                |   | 29,700      |  | 10.3  |   |  |   | 777,397   |  | 2,617.5 |  
|All Other                    |  |                   | 645,203   |             | 94.1     |   |                |   | 121,432     |  | 42.3  |   |  |   | 523,771   |  | 431.3   |  
|                             |  |                   |           |             |          |   |                |   |             |  |       |   |  |   |           |  |         |  
|Operating Expenses           |  | $                 | 2,139,893 |             | 312.0    | % |                | $ | 406,809     |  | 141.6 | % |  | $ | 1,733,084 |  | 426.0   | %

Salaries and Benefits Expense.

Salaries and benefits expense increased due to an increase in sales, administrative and service staff as we continue to grow up our operation. Total
employees for the comparative period in 2005 were 6, compared to 23 in 2006. We expect to continue to add additional sales and service support staff as we expand our operation. We anticipate hiring additional support staff in 2007 based on increase
in clinics participating in the program. Our initial estimates are to hire additional support personnel as dictated by the clinic profiles.

Legal, Consulting & Insurance Expenses.

Legal expense increased dramatically to $538,576 for the period ended
September 30, 2006 compared to $0 for the comparative period in 2005. These expenses are primarily related to services rendered surrounding the various capital/debt financings, associated registration of our securities with the SEC, 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
and potential acquisitions. Insurance expenses have also increased to $52,542 in 2006 compared to $13,055 in 2005, to support the growth of the business in 2006.

All Other Expenses

Recruitment fees of $61,280, rent of $55,114 and $63,000 of expenses related to
the debt financing in June 2006, increases in travel expenses as well as general expenses to support a growing operation are the driving factors for the increase in other expenses from 2005 to the comparative period in 2006. Billing service
fees have also increased from $11,724 in 2005 to $40,648 for the nine months ended September 30, 2006, again resulting from the increase in operating clinics for the comparative periods.

Net Loss. Set forth below is the net loss.



|         |  |                   |            |   |                    |        |   |                     |   |          |             |  |        |   |  |   |            |   |  |        |  
|-------- |  | ----------------- | ---------- | - | ------------------ | ------ | - | ------------------- | - | -------- | ----------- |  | ------ | - |  | - | ---------- | - |  | ------ | -
|         |  | Nine Months Ended |            |   | Increase(Decrease) |        |   | %Increase(Decrease) |  
|         |  | September 30,2006 |            |   | % ofRevenue        |        |   | October 1,2005      |   |          | % ofRevenue |  |        |  
|Net Loss |  | $                 | (2,906,791 | ) |                    | (425.6 | ) |                     | $ | (322,194 | )           |  | (112.2 | ) |  | $ | (2,584,597 | ) |  | (805.7 | )

This loss was attributable to selling and administrative costs as we continued to grow our
operations, introducing new clinics, building a national sales force and hiring organized support for future clinics. A one time aggregate charge of $791,972 for interest expense was realized in June 2006 due to the discount arising from the
computed beneficial conversion feature associated with the senior secured convertible debenture sold to Vicis Capital Master Fund 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. An additional $97,920
of interest expense resulting from the amortization of the discount on the debenture has also been recognized through the nine months ending September 30, 2006.



17



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##### Table of Contents

Liquidity and Capital Resources

Cash used in operations during the nine months ended September 30, 2006 was $2,025,502, compared to $372,942 in the comparative period 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 only ($53,181). Comparatively, borrowings from related parties in the amount of $445,414
in 2005, resulted in a net change in cash of $38,748 for the comparative period in 2005. As of September 30, 2006 we had $1,190,546 in total assets, compared to $352,482 in 2005, of which $646,558, $38,748 in 2005, was in cash and cash
equivalents, and our total liabilities were $1,676,024, compared to $229,262 in 2005. We expect that our current cash availability will support current operations through the beginning of December 2006 based on our current cash burn rate of $250,000
per month. 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 nine months ended September 30, 2006, we reserved 12% of revenues, or $81,585. The reserve amount is based on the sum of accounts receivable greater than 120 days. We have added an additional reserve for new
business entered into during the month of September 2006, this reserve is based on projected receipts for this new line of business. For the month of September 2006, the reserve records amounted to $7,965. No reserve was recorded for the comparative
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 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 are made at that time. For the nine months ended
September 30, 2006, we have provided $42,338 for a reserve, as a result of our most recent experience and higher volume . Our reserve formula, modified during the second quarter of 2006 to account for this experience,, is calculated by
reserving 25% of the inventory value for operating clinics in the period ended September 30, 2006. No reserve was recorded for the comparable period in 2005.

Plan of Operations

The accompanying financial statements have been prepared assuming that the Company will continue
as a going concern. As discussed in the notes to the unaudited financial statements, the Companys losses have resulted in an accumulated deficit of $2,918,065 for the nine month period ending September 30, 2006, and operating activities
consumed $2,025,502 in cash. These conditions raise substantial doubt about our ability to continue as a going concern. Managements plans in regard to these matters are described in the notes. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.

Our main objectives for the next 12 months are to continue our ability
to finance the Company and to focus 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 beginning of December 2006, based on our current monthly burn rate of approximately $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. For the remainder of fiscal year 2006
and into fiscal year 2007, we plan to build our sales force from our current level of 5 sales people to 10 regional sales people. During the third quarter we added one regional sales manager in the Southeast and one regional sales manager will begin
at the start of the fourth quarter on the West Coast. The plan includes support programs for the sales efforts including marketing, communications and program literature.



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##### Table of Contents

We have increased our resources in administration by recently hiring a staff accountant as well as a
purchasing professional during the second quarter. We also plan to add one to three additional employees to assist with our service administration. During the nine months ended September 30, 2006, we hired five additional customer support
specialists, one field representative and one regional operations manager 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 and 2007.

We do not anticipate devoting our resources to research and development in fiscal year 2006 and 2007 at the current time.

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. Beginning in the fourth quarter of 2006, we will be entering into agreements to expand our support for clinics servicing workers
compensation claims.

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.

Principles of
Consolidation: The September 30, 2006 financial statements include the accounts of Medical Solutions Management Inc. and its wholly-owned subsidiary OrthoSupply Management, Inc. All significant inter-company balances and
transactions have been eliminated in consolidation.

Use of Estimates: The preparation of financial statements in conformity
with generally accepted accounting principles requires our management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates.

Cash
and Cash Equivalents: For financial statement presentation purposes, we consider those short-term, highly liquid investments with original maturities of three months or less to be cash or cash equivalents.

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,



19



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##### Table of Contents

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.

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.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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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 September 30, 2006.

Financial instruments that potentially subject us to concentrations of market/credit risk consist principally of cash and cash equivalents
and trade accounts receivable. We invest cash through a high credit-quality financial institution, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts.

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. After
all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on our best estimate, we believe the allowance for doubtful accounts of $81,585 is adequate as presented. Historically, we have not
experienced significant losses related to receivables from individual customers or groups of customers in any particular industry or geographic area.

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.

Under EITF Issue No. 00-19 contracts are initially classified as
equity or as either assets or liabilities, in the following situations:



| |  |  | Equity
| | - |  | ------



| |  |  | Contracts that require physical settlement or net-share settlement; and
| | - |  | -----------------------------------------------------------------------



| |  |  | Contracts that give the company a choice of net-cash settlement or settlement in its own shares (physical settlement or net-share settlement), assuming that all the
criteria for equity classification have been met.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Assets or Liabilities
| | - |  | ---------------------



| |  |  | Contracts that require net-cash settlement (including a requirement to net-cash settle the contract if an event occurs and if that event is outside the control of
the company); and
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Contracts that give the counterparty a choice of net-cash settlement or settlement in shares (physical settlement or net-share settlement).
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------

All contracts are initially measured at fair value and subsequently accounted for based on the current classification.
Contracts initially classified as equity do not recognize subsequent changes in fair value as long as the contracts continue to be classified as equity. For contracts classified as assets or liabilities, the Company reports changes in fair value in
earnings and discloses these changes in the financial statements as long as the contracts remain classified as assets or liabilities. If contracts classified as assets or liabilities are ultimately settled in shares, any previously reported gains or
losses on those contracts continue to be included in earnings. The classification of a contract is reassessed at each balance sheet date.



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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 additional investment rights, initially be recorded at fair value as an asset or liability and subsequent changes in fair value be
reflected in the statement of operations. The recorded value of the liability for such derivatives can fluctuate significantly based on fluctuations in the market value of the underlying common stock of the issuer of the derivative instruments, as
well as in the volatility of the stock price during the term used for observation and the remaining term.

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.

Property and Equipment: Property and equipment are recorded at cost. Depreciation is computed using the straight line balance method over
the estimated useful lives of the assets, generally 5 years. Expenditures for renewals and betterments are capitalized. Expenditures for minor items, repairs and maintenance are charged to operations as incurred. Gain or loss upon sale or retirement
due to obsolescence is reflected in the operating results in the period the event takes place.

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.

We amortize the
costs of other intangibles, if applicable, (excluding goodwill) over their estimated useful lives unless such lives are deemed indefinite. Amortizable intangible assets are tested for impairment based on undiscounted cash flows and, if impaired,
written down to fair value based on either discounted cash flows or appraised values. Intangible assets with indefinite lives are tested for impairment, at least annually, and written down to fair value as required.

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.

Deferred income taxes are recorded in accordance with SFAS No. 109, Accounting for Income Taxes , or SFAS 109. Under SFAS
No. 109, deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax basis of assets and liabilities using the tax rates and laws in effect when the differences are expected to reverse.
SFAS 109 provides for the recognition of deferred tax assets if realization of such assets is more likely than not to occur. Realization of our net deferred tax assets is dependent upon our generating sufficient taxable income in future years in
appropriate tax jurisdictions to realize benefit from the reversal of temporary differences and from net operating loss, or NOL, carryforwards. We have determined it more likely than not that these timing differences will not materialize and have
provided a valuation allowance against substantially all of our net deferred tax asset. Management will continue to evaluate the realizability of the deferred tax asset and its related valuation allowance. If our assessment of the deferred tax
assets or the corresponding valuation allowance were to change, we would record the related adjustment to income during the period in which we make the determination. Our tax rate may also vary based on our results and the mix of income or loss in
domestic and foreign tax jurisdictions in which we operate.



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In addition, the calculation of our tax liabilities involves dealing with uncertainties in the
application of complex tax regulations. We recognize liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and to the extent to which, additional taxes will be due. If we ultimately
determine that payment of these amounts is unnecessary, we will reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary. We will record an additional charge in our provision
for taxes in the period in which we determine that the recorded tax liability is less than we expect the ultimate assessment to be.

Stock-Based Compensation Plans: We account for stock-based compensation using the intrinsic value method prescribed in Accounting Principles Board, or APB, Opinion No. 25, Accounting for Stock Issued to
Employees , or APB 25, and related interpretations. Under APB 25, compensation cost is measured as the excess, if any, of the closing market price of our stock at the date of grant over the exercise price of the option granted. We
recognize compensation cost for stock options, if any, ratably over the vesting period. Generally, we grant options with an exercise price equal to the closing market price of our stock on the grant date. Accordingly, we have not recognized any
compensation expense for our stock option grants. We provide additional pro forma disclosures as required under SFAS No. 123, Accounting for Stock-Based Compensation , or SFAS 123, as amended by SFAS No. 148, Accounting for Stock-Based Compensation-Transition and Disclosure an Amendment of FASB Statement No. 123 , or SFAS 148, using the Black-Scholes pricing model. We charge the value of the equity instrument to earnings and in accordance
with FASB Interpretation No. 28, Accounting for Stock Appreciation Rights and Other Variable Stock Option or Award Plansan interpretation of APB Opinions No. 15 and 25 . In computing fair value we used the
following assumptions:



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

Earnings per Common Share: Basic earnings per share is 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 assumes 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.

Recent Accounting Pronouncements

In December 2004, the FASB issued SFAS No. 123 (revised 2004) Share-Based Payment 123(R). SFAS No. 123(R) revises FASB
Statement No. 123 Accounting for Stock-Based Compensation, and supersedes APB Opinion No. 25, and its related implementation guidance. This Statement eliminates the ability to account for share-based compensation using the
intrinsic value method under APB Opinion No. 25. SFAS No. 123(R) focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions. SFAS No. 123(R) requires a public
entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee
is required to provide service in exchange for the award, known as the requisite service period, which is usually the vesting period. SFAS No. 123(R) is effective for companies filing under Regulation S-B as of the beginning of the first
interim or annual reporting period that begins after December 15, 2005, which for us is our first quarter of the year ending December 31, 2006. We adopted SFAS No. 123(R) beginning January 1, 2006 . Accordingly, the provisions of
SFAS No. 123(R) apply to new awards and to awards modified, repurchased, or cancelled after the effective date. Additionally, compensation cost for the portion of awards for which the requisite service has not



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been rendered that are outstanding as of the effective date must be recognized as the requisite service is rendered on or after the required effective date.
These new accounting rules will lead to a decrease in reported earnings. Although our adoption of SFAS No. 123(R) could have a material impact on our financial position and results of operations, we are still evaluating the potential impact
from adopting this statement.

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 our
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. We are currently in the process of evaluating the effect that the adoption of this pronouncement may have on our 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 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.

In September 2004, the EITF reached a consensus regarding Issue No. 04-1, Accounting for Preexisting Relationships Between the Parties to
a Business Combination (EITF 04-1). EITF 04-1 requires an acquirer in a business combination to evaluate any preexisting relationship with the acquiree to determine if the business combination in effect contains a settlement of the
preexisting relationship. A business combination between parties with a preexisting relationship should be viewed as a multiple element transaction. EITF 04-1 is effective for business combinations after October 13, 2004, but requires goodwill
resulting from prior business combinations involving parties with a preexisting relationship to be tested for impairment by applying the guidance in the consensus. We will apply EITF 04-1 to acquisitions subsequent to the effective date and in our
future goodwill impairment testing.

In November 2004, the Financial Accounting Standards Board (FASB) issued Statement of Financial
Accounting Standards (SFAS) No. 151, Inventory Costsan amendment of ARB No. 43, Chapter 4, which clarifies the accounting for abnormal amounts of idle facility expense, freight, handling costs and wasted material. SFAS
No. 151 is effective for inventory costs incurred during fiscal years beginning after June 15, 2005. We do not believe the adoption of SFAS No. 151 will have a material impact on our financial statements.



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In December 2004, the FASB issued SFAS No. 153, Exchanges of Nonmonetary Assetsan
amendment of APB Opinion No. 29, which is effective for us July 1, 2005. In the past, we were frequently required to measure the value of assets exchanged in non-monetary transactions by using the net book value of the asset
relinquished. Under SFAS No. 153, we will measure assets exchanged at fair value, as long as the transaction has commercial substance and the fair value of the assets exchanged is determinable within reasonable limits. A non-monetary exchange
has commercial substance if the future cash flows of the entity are expected to change significantly as a result of the exchange. The adoption of SFAS No. 153 is not anticipated to have a material effect on our consolidated financial position,
results of operations or cash flows.

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. We do not believe that adoption of SFAS 154 will have a material 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 September 30,
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 investing in upgrading our accounting and information technology systems, hiring additional permanent employees in accounting, purchasing and field operations,
establishing additional training programs and/or engaging outside expert consultants. Our plan is to continue to strengthen our organization and internal controls and it may include hiring additional management and support personnel. 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



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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.

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 Form 10-QSB/A 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 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)                                                                       
|            | 
|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/A for the
year ended December 31, 2006 filed on April 17, 2007)             
|            | 
|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/A for the year
ended December 31, 2006 filed on April 17, 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/A for the year
ended December 31, 2006 filed on April 17, 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/A for
the year ended December 31, 2006 filed on April 17, 2007)
|            | 
|10.5        |  | DME Supply and Related Services Agreement dated August 1, 2006 by and between the Registrant and Paul Weitzer of Boston Sports and Shoulder (incorporated by reference to the Form 10-KSB for
the year ended December 31, 2006 filed on April 17, 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)