----

----

|  United      StatesSecurities      and Exchange CommissionWashington,      D.C. 20549  |
|--------------------------------------------------------------------------------------------------|
|                                                                                             |   |   |
|                                                                                             | Form      10-K/A(Amendment      No. 2) |   |
|                                                                                             |   |   |
|  [x]                                                                                        |  ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |   |
|                                                                                             |   |   |
|                                                                                             | For      the fiscal year ended December 31,      2008 |   |
|                                                                                             |   |   |
|                                                                                             |   |   |
| [  ]                                                                                   | TRANSITION      REPORT UNDER SECTION 13 OR 15(d) OF THESECURITIES      EXCHANGE ACT OF 1934For      the transition period from ...........to...............  |   |
|                                                                                             | Commission      File Number: 1-31771 |   |
|                                                                                             |   |   |
|                                                                                             |  MEDLINK      INTERNATIONAL, INC. |   |
|                                                                                             | (Exact      name of registrant as specified in its charter)  |   |
|                                                                                             |   |   |
| Delaware                                                                                         |   | 41-1311718 |
| (State      of other jurisdiction of incorporation or organization)                              |   | (IRS      Employer Identification No.) |
|                                                                                             |   |   |
|                                                                                             | 1 Roebling Court, Ronkonkoma, NY      11779(Address      of principal executive offices) |   |
|                                                                                             |   |   |
|                                                                                             | 631-342-8800(Issuer’s      telephone number) |   |
|                                                                                             |   |   |

| Large      accelerated filer o | Accelerated      filer o              |
|--------------------------------|---------------------------------------|
| Non-accelerated      filer o   | Smaller      reporting company þ |

| Class                                       | Shares      Outstanding as of December 31, 2008 |
|---------------------------------------------|-------------------------------------------------|
| Class      A Common Stock, $0.001 par value | 26,947,333                                      |
| Class      B Common Stock, $0.001 par value | 5,361,876                                       |

----

|              |                                                                                                                         | Page   |
|-------------------|------------------------------------------------------------------------------------------------------------------------------|--------|
| Part      I  |                                                                                                                         |   |
| Item      1.      | Business      Overview                                                                                                       | 4      |
| Item      1A.     | Risk      Factors                                                                                                            | 19     |
| Item      1B.     | Unresolved Staff    Comments                                                                                                 | 41     |
| Item      2.      | Properties                                                                                                                   | 41     |
| Item      3.      | Legal      Proceedings                                                                                                       | 41     |
| Item      4.      | Submission      of Matter to a Vote of Security Holders                                                                      | 41     |
|              |                                                                                                                         |   |
| Part      II      |                                                                                                                         |   |
| Item      5       | Market for      Registrant’s Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities | 41     |
| Item      6       | Selected      Financial Data                                                                                                 | 45     |
| Item      7       | Management’s Discussion and Analysis of Financial      Condition and Results of Operation                              | 45     |
| Item      7A.     | Quantitative and Qualitative Disclosures About      Market Risk                                                              | 61     |
| Item      8.      | Financial      Statements and Supplementary Data                                                                             | 62     |
| Item      9       | Changes in      and Disagreements With Accountants on Accounting and Financial      Disclosures                              | 92     |
| Item9AT.          | Controls      and Procedures                                                                                                 | 92     |
| Part      III     |                                                                                                                         |   |
| Item      10.     | Directors, Executive Officers and Corporate      Governance                                                             | 95     |
| Item      11.     | Executive      Compensation                                                                                                  | 97     |
| Item      12.     | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters                     | 98     |
| Item      13.     | Certain      Relationships and Related Transactions, and Director      Independence                                          | 99     |
| Item      14.     | Principal      Accounting Fees and Services                                                                                  | 99     |
| PART      IV      |                                                                                                                         |   |
| Item      15.     | Exhibits      , Financial Statement Schedules                                                                                | 100    |
|              | Signatures                                                                                                                   | 101    |

----

----

Item

----

----

----

| ·   | Currently,      out of the estimated 600,000 physicians in the U.S., only 15-20% are      estimated to have employed EHRs for their  practice. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | This      market is expected to grow significantly in the next several years as      legislation and federal directives drive EHR adoption among      physicians. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The      Bush Administration mandated that physicians switch all patient records to      electronic form by 2014.  The mandate has received bi-partisan      support from Congress and PresidentObama; |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Medicare      Electronic Medication and Safety Protection Act provides financial      incentives for physicians to use e-prescribing systems that have current      year CCHIT certification; |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Medicare      Prescription Drug, Improvement, and Modernization Act of 2003 permits      hospitals and other organizations to provide e-prescribing and EHR      software, information technology and training services to physicians;      and |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Private      and public initiatives for healthcare IT adoption have currently made      available more than $700 million.  The majority of subsidies and      grants require current year CCHITcertification. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | -   More      than $20 billion was provided for the adoption of healthcare IT in early      2009 |
|--------|-----------------------------------------------------------------------------------------------------------------|

| ·   | The      Company has received endorsements from one of the largest medical      associations in the U.S. as well as four New York based medical      societies. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |  The      Company continues to form valuable strategic partnerships with imaging      centers, laboratories, RHIO’s and other facilities through the integration      of their systems with the Company’sEHR. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company’s value-added partners provide a “captive” base of physicians as      customers for the Company’sproducts. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company has a focused sales and marketing effort underway to leverage this      prime access opportunity to reach these  physicians. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      primary barrier to EHR adoption among physicians is cost.  The      Company offers an attractive value proposition through MedLink EHR and EHR      Lite.  EHR Lite provides physicians with basic EMR functionality      at no upfront cost to the physician, creating a sticking point for later      full EHR conversion. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company’s EHR is priced below competing products with similar      services. |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | Quick      deployment of the Company’s EHR, makes the product very attractive to      physicians and counterparties. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company’s EHR was one of 8 products which received full certification in      October, 2008. |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | This      certification creates a tremendous competitive advantage for the Company      in its targeted customer base, the small to medium sized physician office      marketplace, as financial incentives are available to providers who use a      2008 CCHIT certified EHR product. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | 2%      in fiscal year 2009 and 2010 |
|--------------------|--------------------------------------|

| ·   | 1%      in 2011 and 2012 |
|--------------------|--------------------------|

| ·   | 0.5%      in 2013 |
|--------------------|-------------------|

| ·   | 1%      payment cut in 2012 |
|--------------------|-----------------------------|

| ·   | 1.5%      payment cut in 2013 |
|--------------------|-------------------------------|

| ·   | 2%      in subsequent years |
|--------------------|-----------------------------|

----

1

----

----

----

----

----

|                                                           |   |   |    |        |    | Less      than |   |    |    |   |
|----------------------------------------------------------------|--------|--------|---------|-------------|---------|----------------|--------|---------|---------|--------|
|                                                           |   | Total  |    | 1      year |    | 1-3      years |
|                                                           |   |   |    |        |    |           |   |    |    |   |
|      Operating      lease obligations |   | $      | 850,992 |        | $  |  129,500  |   |  $ | 460,032 |   |

----

----

----

----

----

Item 

----

----

----

----

----

----

|         | • |   | the      performance of our software and our ability to promptly and efficiently      address software performance shortcomings or warranty    issues;           |
|--------------|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    | • |   | the      cost, timeliness and outcomes of our software development and      implementation efforts, including expansion of our development center in      India; |
|    | • |   | the      timing, size and complexity of our software sales and      implementations;                                                                             |
|    | • |   | healthcare      industry conditions and the overall demand for healthcare information      technology;                                                           |
|    | • |   | variations      in periodic software license revenues;                                                                                                           |
|    | • |   | the      financial condition of our clients and potential  clients;                                                                                              |
|         | • |   | market      acceptance of new services, software and software enhancements introduced      by us or our competitors;                                             |
|         | • |   | client      decisions regarding renewal or termination of their    contracts;                                                                                    |
|    | • |   | software      and price competition;                                                                                                                             |
|    | • |   | investment      required to support our international expansionefforts;                                                                                          |
|    | • |   | personnel      changes and other organizational changes and related    expenses;                                                                                 |
|    | • |   | significant      judgments and estimates made by management in the application of generally      accepted accounting principles;                                 |
|    | • |   | healthcare      reform measures and healthcare regulation in general;                                                                                            |
|    | • |   | lower      investment returns due to recent disruptions in U.S. and international      financial markets; and                                                    |
|    | • |   | fluctuations      in general economic and financial market conditions, including interest      rates.                                                            |

----

----

----

|         | • |   | The      anticipated benefits from the acquisition may not be achieved, including      as a result of loss of customers or personnel of the    target.                                                                                                                                                                      |
|--------------|---------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    | • |   | The      identification, acquisition and integration of acquired businesses require      substantial attention from management. The diversion of management’s      attention and any difficulties encountered in the transition process could      hurt our business.                                                 |
|    | • |   | The      identification, acquisition and integration of acquired businesses      requires significant investment, including to harmonize product and      service offerings, expand management capabilities and market presence, and      improve or increase development efforts and software features and      functions. |
|    | • |   | In      future acquisitions, we could issue additional shares of our common stock,      incur additional indebtedness or pay consideration in excess of book      value, which could dilute future earnings.                                                                                                                |
|    | • |   | Acquisitions      also expose us to the risk of assumed known and unknown      liabilities.                                                                                                                                                                                                                                 |
|    | • |   | New      business acquisitions generate significant intangible assets that result      in substantial related amortization charges to us and possible      impairments.                                                                                                                                                     |

----

----

----

|   | • |   | extend      the reach of our products and services to a larger number of physicians      and hospitals and to other participants in the healthcare      industry; |
|--------|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • |   | develop      and deploy new products and services;                                                                                                                |
|   | • |   | further      enhance the MedLink brand; and                                                                                                                       |
|   | • |   | generate      additional revenue and cash flows.                                                                                                                  |

|   | • |   | harm      to our reputation;                                           |
|--------|---------|--------|------------------------------------------------------------------------|
|   | • |   | lost      sales;                                                       |
|   | • |   | delays      in commercial release;                                     |
|   | • |   | product      liability claims;                                         |
|   | • |   | delays      in or loss of market acceptance of our solutions;          |
|   | • |   | license      terminations or renegotiations; and                       |
|   | • |   | unexpected      expenses and diversion of resources to remedy  errors. |

----

|         | • |   | breadth      and depth of services;      |
|--------------|---------|--------|------------------------------------------|
|    | • |   | reputation;                              |
|    | • |   | reliability,      accuracy and security; |
|    | • |   | client      service;                     |
|    | • |   | price;      and                          |
|    | • |   | industry      expertise and experience.  |

----

----

|   | • |   | Patient      Information. As part of the operation of our business, our      customers provide to us patient-identifiable medical information related      to the prescription drugs that they prescribe and other aspects of patient      treatment. Government and industry legislation and rulemaking, especially      the Health Insurance Portability and Accountability Act of 1996 (HIPAA),      and standards and requirements published by industry groups such as the      Joint Commission on Accreditation of Healthcare Organizations, require the      use of  standard transactions, standard identifiers, security      and other standards and requirements for the transmission of certain      electronic health information. National standards and procedures under      HIPAA include the “Standards for Electronic      Transactions and Code Sets” (the Transaction Standards); the “Security Standards”      (the Security Standards); and the “Standards for Privacy of      Individually Identifiable Health Information” (the Privacy      Standards). The Transaction Standards require the use of specified data      coding, formatting and content in all specified “Health Care Transactions”      conducted electronically. The Security Standards require the adoption of      specified types of security for healthcare information. The Privacy      Standards grant a number of rights to individuals as to their identifiable      confidential medical information (called Protected Health Information) and      restrict the use and disclosure of Protected Health Information by Covered      Entities, defined as “health care providers, health care payers, and      health care clearinghouses.” Generally, the HIPAA standards directly      affect Covered Entities. We have reviewed our activities and believe that      we are a Covered Entity to the extent that we maintain a “group health      plan” for the benefit of our employees. Such a plan, even if not a      separate legal entity from us as its sponsor, is included in the HIPAA      definition of Covered Entities. We have taken steps we believe to be      appropriate and required to bring our group health plan into compliance      with HIPAA. We do not believe that we are a Covered Entity as a health      care provider or as a health care clearinghouse; however, the definition      of a health care clearinghouse is broad and we cannot offer any assurance      that we could not be considered a health care clearinghouse under HIPAA or      that, if we are determined to be a healthcare clearinghouse; the      consequences would not be adverse to our business, financial condition and      results of operations. In addition, the Privacy and Security Standards      affect third parties that create, access, or receive Protected Health      Information in order to perform a function or activity on behalf of a      Covered Entity. Such third parties are called “Business Associates.”      Covered Entities must have a written “Business Associate Agreement” with      such third parties, containing specified written satisfactory assurances,      consistent with the Privacy and Security standards, that the third party      will safeguard Protected Health Information that it creates or accesses      and will fulfill other material obligations to support the Covered      Entity’s own HIPAA compliance. Most of our customers are Covered Entities,      and we function in many of our relationships as a Business Associate of      those customers. We would face liability under our Business Associate      Agreements if we do not comply with our Business Associate obligations. In      addition, the federal agencies with enforcement authority have taken the      position that a Covered Entity can be subject to HIPAA civil penalties and      sanctions for a breach of a Business Associate Agreement. The penalties      for a violation of HIPAA by a Covered Entity are significant and could      have an adverse impact upon our business, financial condition and results      of operations, if such penalties ever were imposed. Additionally, Covered      Entities will be required to adopt a unique standard National Provider      Identifier (NPI) for use in filing and processing health care claims and      other transactions. Subject to the discussion set forth above, we believe      that the principal effects of HIPAA are, first, to require that our      systems be capable of being operated by our customers in a manner that is      compliant with the various HIPAA standards and, second, to require us to      enter into and comply with Business Associate Agreements with our Covered      Entity customers. For most Covered Entities, the deadlines for compliance      with the Privacy Standards and the Transaction Standards occurred in 2003.      Covered Entities, with the exception of small health plans (as that term      is defined by the Privacy Standards), were required to be in compliance      with the Security Standards by April 20, 2005 and to use NPIs in      standard transactions no later than the compliance dates, which are      May 23, 2007 for all but small health plans and one year later for      small health plans. We have policies and procedures that we believe assure      compliance with all federal and state confidentiality requirements for the      handling of Protected Health Information that we receive and with our      obligations under Business Associate Agreements. In particular, we believe      that our systems and products are capable of being used by our customers      in compliance with the Transaction Standards and Security Standards and      are, or will be, capable of being used by our customers in compliance with      the NPI requirements. If, however, we do not follow those procedures and      policies, or they are not sufficient to prevent the unauthorized      disclosure of Protected Health Information, we could be subject to      liability, fines and lawsuits, termination of our customer contracts or      our operations could be shut down. Moreover, because all HIPAA Standards      are subject to change or interpretation and because certain other HIPAA      Standards, not discussed above, are not yet published, we cannot predict      the full future impact of HIPAA on our business and operations. In the      event that the HIPAA standards and compliance requirements change or are      interpreted in a way that requires any material change to the way in which      we do business, our business, financial condition and results of      operations could be adversely affected. Additionally, certain state laws      are not preempted by HIPAA and may impose independent obligations upon our      customers or us. Additional legislation governing the acquisition, storage      and transmission or other dissemination of health record information and      other personal information, including social security numbers, has been      proposed at both the state and federal level. Such legislation may require      holders of such information to implement additional security, reporting or      other measures that may require substantial expenditures and may impose      liability for a failure to comply with such requirements. In many cases,      such proposed state legislation includes provisions that are not preempted      by HIPAA. There can be no assurance that changes to state or federal laws      will not materially restrict the ability of providers to submit      information from patient records using our products and      services. |
|--------|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|    | • |   | Electronic      Prescribing. The use of our software by physicians to perform a      variety of functions, including electronic prescribing, electronic routing      of prescriptions to pharmacies and dispensing, is governed by state and      federal law, including fraud and abuse laws. States have differing      prescription format requirements, which we have programmed into our      software. Many existing laws and regulations, when enacted, did not      anticipate methods of e-commerce now being developed. While federal law      and the laws of many states permit the electronic transmission of      prescription orders, the laws of several states neither specifically      permit nor specifically prohibit the practice. Given the rapid growth of      electronic transactions in healthcare, and particularly the growth of the      Internet, we expect the remaining states to directly address these areas      with regulation in the near future. In addition, on November 7, 2005,      the Department of Health and Human Services published its final      “E-Prescribing and the Prescription Drug Program” regulations      (E-Prescribing Regulations). These regulations are required by the      Medicare Prescription Drug, Improvement, and Modernization Act of 2003      (MMA) and became effective beginning on January 1, 2006. The      E-Prescribing Regulations consist of detailed standards and requirements,      in addition to the HIPAA standards discussed above, for prescription and      other information transmitted electronically in connection with a drug      benefit covered by the MMA’s Prescription Drug Benefit. These standards      cover not only transactions between prescribers and dispensers for      prescriptions but also electronic eligibility and benefits inquiries and      drug formulary and benefit coverage information. The standards apply to      prescription drug plans participating in the MMA’s Prescription Drug      Benefit. Aspects of our clinical products are affected by such regulation      because of the need of our customers to comply, as discussed above.      Compliance with these regulations could be burdensome, time-consuming and      expensive. We also could become subject to future legislation and      regulations concerning the development and marketing of healthcare      software systems. For example, regulatory authorities such as the U.S.      Department of Health and Human Services’ Center for Medicare and Medicaid      Services may impose functionality standards with regard to electronic      prescribing and EHR technologies. These could increase the cost and time      necessary to market new services and could affect us in other respects not      presently foreseeable. |
|--------------|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         | • |   | Electronic      Health Records.      A number of important federal and state laws govern the use and      content of electronic health record systems, including fraud and abuse      laws that may affect the donation of such technology. As a company that      provides EHR systems to a variety of providers of healthcare, our systems      and services must be designed in a manner that facilitates our customers’      compliance with these laws. Because this is a topic of increasing state      and federal regulation, we must continue to monitor legislative and      regulatory developments that might affect our business practices as they      relate to EHR systems. We cannot predict the content or effect of possible      future regulation on our businesspractices.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

----

----

|   | - | difficulty      in integrating the acquired operations and retaining acquired      personnel; |
|--------|---|-----------------------------------------------------------------------------------------------|

|   | - | diversion      of management's attention and disruption of the Company’s ongoing      business; and |
|--------|---|-----------------------------------------------------------------------------------------------------------|

----

----

|   | - | control      of the market for the security by one or a few broker-dealers that are      often related to the promoter orissuer; |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------|

|   | - | manipulation      of prices through prearranged matching of purchases and sales and false      and misleading press releases; |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------|

|   | - | “boiler      room” practices involving high pressure sales tactics and unrealistic      price projections by inexperienced sales  persons; |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | excessive      and undisclosed bid-ask differentials and markups by selling      broker-dealers; and |
|--------|---|------------------------------------------------------------------------------------------------------|

|   | - | the      wholesale dumping of the same securities by promoters and broker-dealers      after prices have been manipulated to a desired level, along with the      inevitable collapse of those prices with consequent investor      losses. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

Item

Item 

Item 

----

| Period                | High  | Low   |
|-----------------------|-------|-------|
| 1st      Quarter 2007 | $0.97 | $0.27 |
| 2nd      Quarter 2007 | $2.04 | $0.72 |
| 3rd      Quarter 2007 | $1.50 | $0.86 |
| 4th      Quarter 2007 | $1.74 | $1.01 |
| 1st      Quarter 2008 | $1.50 | $0.71 |
| 2nd      Quarter 2008 | $1.25 | $0.71 |
| 3rd      Quarter 2008 | $1.76 | $0.50 |
| 4th      Quarter 2008 | $2.00 | $0.65 |
| 1st      Quarter 2009 | $1.00 | $0.35 |

----

| Plan      category                                                  | Number      of securities to be issued upon exercise of outstanding options, warrants      and rights | Weighted      average exercise price of outstanding options, warrants and      rights | Number      of securities remaining available for future issuance |
|---------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|-------------------------------------------------------------------|
|                                                                | (a)                                                                                                   | (b)                                                                                   | (c)                                                               |
| Equity      compensation plans approved by security holders         |                                                                                                  |                                                                                  |                                                              |
| Equity      compensation plans not approved by security holders (1) | 2,000,000      (2,)                                                                                   | $0.415                                                                                | 2,000,000      (1)7,603,013      (1)                              |
| Total                                                               | 2,000,000                                                                                             |                                                                                  | 9,603,013                                                         |

----

| Jameson      Rose      |   |   | 800,000   |
|------------------------|--------|--------|-----------|
| Ray      Vuono         |   |   | 960,000   |
| Dr.      Michael Carvo |   |   | 0         |
| Konrad      Kim        |   |   | 240,000   |
| Totals                 |   |   | 2,000,000 |

|            | Salary    | Salary    | Salary    |
|-----------------|-----------|-----------|-----------|
|            | 2008      | 2009      | 2010      |
| Ray      Vuono  | 1,376,400 | 1,651,680 | 1,982,016 |
| James      Rose | 1,164,707 | 1,397,648 | 1,677,177 |
| Konrad      Kim | 338,824   | 406,585   | 487,907   |
| Totals          | 2,879,931 | 3,455,913 | 4,147,100 |

|            | Options   | Options   | Options   |
|-----------------|-----------|-----------|-----------|
|            | 2008      | 2009      | 2010      |
| Ray      Vuono  | 480,000   | 480,000   | 480,000   |
| James      Rose | 400,000   | 400,000   | 400,000   |
| Konrad      Kim | 120,000   | 120,000   | 120,000   |
| Totals          | 1,000,000 | 1,000,000 | 1,000,000 |

----

Item

Item

----

----

----

----

----

----

| ·   | Currently,      out of the estimated 600,000 physicians in the U.S., only 15-20% are      estimated to have employed EHRs for their  practice. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | This      market is expected to grow significantly in the next several years as      legislation and federal directives drive EHR adoption among      physicians. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | The      Bush Administration mandated that physicians switch all patient records to      electronic form by 2014.  The mandate has received bi-partisan      support from Congress and PresidentObama; |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Medicare      Electronic Medication and Safety Protection Act provides financial      incentives for physicians to use e-prescribing systems that have current      year CCHIT certification; |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Medicare      Prescription Drug, Improvement, and Modernization Act of 2003 permits      hospitals and other organizations to provide e-prescribing and EHR      software, information technology and training services to physicians;      and |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Private      and public initiatives for healthcare IT adoption have currently made      available more than $700 million.  The majority of subsidies and      grants require current year CCHITcertification. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | -   More      than $20 billion was provided for the adoption of healthcare IT in early      2009 |
|--------|-----------------------------------------------------------------------------------------------------------------|

| ·   | The      Company has received endorsements from one of the largest medical      associations in the U.S. as well as four New York based medical      societies. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |  The      Company continues to form valuable strategic partnerships with imaging      centers, laboratories, RHIO’s and other facilities through the integration      of their systems with the Company’sEHR. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company’s value-added partners provide a “captive” base of physicians as      customers for the Company’sproducts. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company has a focused sales and marketing effort underway to leverage this      prime access opportunity to reach these  physicians. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      primary barrier to EHR adoption among physicians is cost.  The      Company offers an attractive value proposition through MedLink EHR and EHR      Lite.  EHR Lite provides physicians with basic EMR functionality      at no upfront cost to the physician, creating a sticking point for later      full EHR conversion. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company’s EHR is priced below competing products with similar      services. |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | Quick      deployment of the Company’s EHR, makes the product very attractive to      physicians and counterparties. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company’s EHR was one of 8 products which received full certification in      October, 2008. |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | This      certification creates a tremendous competitive advantage for the Company      in its targeted customer base, the small to medium sized physician office      marketplace, as financial incentives are available to providers who use a      2008 CCHIT certified EHR product. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | 2%      in fiscal year 2009 and 2010 |
|--------------------|--------------------------------------|

| ·   | 1%      in 2011 and 2012 |
|--------------------|--------------------------|

| ·   | 0.5%      in 2013 |
|--------------------|-------------------|

| ·   | 1%      payment cut in 2012 |
|--------------------|-----------------------------|

| ·   | 1.5%      payment cut in 2013 |
|--------------------|-------------------------------|

| ·   | 2%      in subsequent years |
|--------------------|-----------------------------|

----

2

----

----

----

----

----

|                                                           |   |   |    |        |    | Less      than |   |    |    |   |
|----------------------------------------------------------------|--------|--------|---------|-------------|---------|----------------|--------|---------|---------|--------|
|                                                           |   | Total  |    | 1      year |    | 1-3      years |
|                                                           |   |   |    |        |    |           |   |    |    |   |
|      Operating      lease obligations |   | $      | 850,992 |        | $  |  129,500  |   |  $ | 460,032 |   |

----

----

| 1)   | In      evaluating the collectability of our accounts receivable, we assess a      number of factors, including a specific client’s ability to meet its      financial obligations to us, as well as general factors such as the length      of time the receivables are past due and historical collection experience.      Based on these assessments, we record a reserve for specific account      balances as well as a reserve based on our historical experience for bad      debt to reduce the related receivables to the amount we ultimately expect      to collect from clients. If circumstances related to specific clients      change, or economic conditions deteriorate such that our past collection      experience is no longer relevant, our estimate of the recoverability of      our accounts receivable could be further reduced from the levels provided      for in the Consolidated FinancialStatements. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Item 

----

Item 

|                                                                                                               | Page      No. |
|--------------------------------------------------------------------------------------------------------------------|---------------|
| Report of      Independent Registered Public Accounting Firm                                                       | 56            |
|                                                                                                               |          |
| Financial      Statements                                                                                          |          |
| Consolidated Balance Sheets at December 31, 2008      and 2007                                                     | 57            |
| Consolidated Statements of Operations for the      years ended December 31, 2008 and 2007                          | 58            |
| Consolidated Statements of Stockholders' Equity      (Deficit) for the years ended December 31, 2008 and      2007 | 59            |
| Consolidated Statements of Cash Flows for the      years ended December 31, 2008 and 2007                          | 60            |
| Notes      to Consolidated Financial Statements                                                                    | 63       |

----

|                                                                                                                                 |   | For      the years ended |        |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|-------------|
|                                                                                                                                 |   | December      31,        |        |
|                                                                                                                                 |   | 2008(restated)           |        |   | 2007(restated) |   |
| ASSETS                                                                                                                               |   |                     |        |   |   |   |
| CURRENT      ASSETS:                                                                                                                 |   |                     |        |   |   |   |
| Cash                                                                                                                                 |   |                     |        |   |   | 2,762 |   |
| Accounts      Receivable                                                                                                             |   |                     | 20,731      |   |   |   |   |   |
| Due      from related party                                                                                                          |   |                     | -           |   |   |   | 39,372 |   |
| Inventory                                                                                                                            |   |                     | 2,818       |   |   |   |   |   |
| Deposits                                                                                                                             |   |                     | 9,165       |   |   |   |   |   |
| Total      current assets                                                                                                            |   |                     | 32,714      |   |   |   | 42,134 |   |
|                                                                                                                                 |   |                     |        |   |   |   |   |   |
| Office      equipment (at cost) net of accumulated depreciation                                                                      |   |                     | 179,025     |   |   |   | 133,559 |   |
| Intangible      asset (at cost), net of accumulated amortization                                                                     |   |                     | 40,450      |   |   |   | 41,538 |   |
| Goodwill                                                                                                                             |   |                     | 1,252,129   |   |   |   | 1,252,129 |   |
| Security      deposit                                                                                                                |   |                     | 20,438      |   |   |   | 5,400 |   |
| Other      assets                                                                                                                    |   |                     | 5,400       |   |   |   |   |   |
|                                                                                                                                 |   |                     |        |   |   |   |   |   |
| TOTAL ASSETS:                                                                                                                        |   | $                        | 1,530,156   |   |   | $ | 1,474,760 |   |
|                                                                                                                                 |   |                     |        |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS'      EQUITY                                                                                            |   |                     |        |   |   |   |   |   |
| CURRENT      LIABILITIES:                                                                                                            |   |                     |        |   |   |   |   |   |
| Accounts      payable and accrued expenses                                                                                           |   |                     | 403,277     |   |   |   | 427,683 |   |
| Bank      overdraft                                                                                                                  |   |                     | 26,834      |   |   |   | - |   |
| Deferred      revenue                                                                                                                |   |                     | 70,384      |   |   |   | 64,884 |   |
| Current      portion of capitalized lease payable                                                                                    |   |                     | 5,500       |   |   |   | 5,50 |   |
| Note      payable                                                                                                                    |   |                     | 701,145     |   |   |   | 623,437 |   |
| Due      to related party                                                                                                            |   |                     | 1,002,988   |   |   |   | 533,922 |   |
| TOTAL      CURRENT LIABILITIES                                                                                                       |   |                     | 2,210,138   |   |   |   | 1,658,176 |   |
|                                                                                                                                 |   |                     |        |   |   |   |   |   |
| Stockholders'      deficit:                                                                                                          |   |                     |        |   |   |   |   |   |
| Common      stock Class A $.001 par value; authorized 150,000,000 shares; 26,947,333      and 20,371,822 shares issued, respectively |   |                     | 26,947      |   |   |   | 20,372 |   |
| Common      stock B Class B $.001 par value; authorized 50,000,000; 5,361,876 issued      and outstanding                            |   |                     | 5,362       |   |   |   | 5,362 |   |
| Subscription      receivable                                                                                                         |   |                     | (300,000    | ) |   |   | (100,000 | ) |
| Additional      paid-in capital                                                                                                      |   |                     | 17,371,500  |   |   |   | 13,349,010 |   |
| Accumulated      deficit                                                                                                             |   |                     | (17,653,240 | ) |   |   | (13,287,741 | ) |
| Deferred      charges                                                                                                                |   |                     | -           |   |   |   | (40,138 | ) |
| Treasury      stock                                                                                                                  |   |                     | (130,551    | ) |   |   | (130,551 | ) |
| Total      stockholders' deficit                                                                                                     |   |                     | (679,982    | ) |   |   | (183,416 | ) |
| TOTAL STOCKHOLDERS’ LIABILITIES AND STOCKHOLDER      EQUITY                                                                    |   | $                        | 1,530,156   |   |   | $ | 1,474,760 |   |

----

|                                                               |   | For      the years ended |       |
|--------------------------------------------------------------------|--------|--------------------------|------------|
|                                                               |   | December      31,        |       |
|                                                               |   | 2008                     |       |   | 2007 |   |
| Sales                                                              |   | $                        | 480,609    |   |   | $ | 280,022 |   |
| Cost      of Revenues                                              |   |                     | 18,935     |   |   |   | - |   |
| Gross      Profit                                                  |   |                     | 461,674    |   |   |   | 280,022 |   |
|                                                               |   |                     |       |   |   |   |   |   |
| Operating      expenses                                            |   |                     |       |   |   |   |   |   |
| General      and administrative                                    |   |                     | 1,576,824  |   |   |   | 2,764,048 |   |
| Consulting      expense                                            |   |                     | 1,300,427  |   |   |   | - |   |
| Compensation      expense                                          |   |                     | 1,927,749  |   |   |   | - |   |
| Depreciation      and amortization                                 |   |                     | 22,443     |   |   |   | - |   |
| Total      Operating expenses                                      |   |                     | 4,827,443  |   |   |   | 2,809,908 |   |
|                                                               |   |                     |       |   |   |   |   |   |
| Operating      loss before minority interest                       |   |                     | (4,365,769 | ) |   |   | (2,518,886 | ) |
|                                                               |   |                     |       |   |   |   |   |   |
| Minority      Interest                                             |   |                     | -          |   |   |   | 56,507 |   |
| Net      Loss                                                      |   | $                        | (4,365,769 | ) |   | $ | (2,462,829 | ) |
|                                                               |   |                     |       |   |   |   |   |   |
| Basic      and diluted loss per share (Class A)                    |   | $                        | (.15       | ) |   |   | (.12 | ) |
|                                                               |   |                     |       |   |   |   |   |   |
| Basic      and diluted loss per share (Class B)                    |   | $                        | (.81       | ) |   |   | (.46 | ) |
|                                                               |   |                     |       |   |   |   |   |   |
| Weighted      average number of basic shares outstanding (Class A) |   |                     | 29,863,620 |   |   |   | 21,268,394 |   |
|                                                               |   |                     |       |   |   |   |   |   |
| Weighted      average number of basic shares outstanding (Class B) |   |                     | 5,361876   |   |   |   | 5,361876 |   |
|                                                               |   |                     |       |   |   |   |   |   |

----

|                                                                                   | Common Stock     | Additional    |                    |                |             |            |             |
|----------------------------------------------------------------------------------------|------------------|---------------|-------------------------|---------------------|------------------|-----------------|------------------|
|                                                                                   | Number      of   |          | Paid-in                 |                | Surplus          | Deferred        | Treasury         |   |
|                                                                                   | Shares           | Amount        | Capital(restated)  | (Deficit)           | Receivables      | Charges         | Stock            | Total(restated) |
| Balance      at Dec 31, 2006                                                           | 16,646,822       | $16,647       | $10,730,165             | $(10,824,642)       | $(19,783)        | $(159,538)      | $(130,551)       | $(387,702) |
| Share      issued for employment  services                                   | 2,400,000        | 2,400         | 324,000                 | 0                   | 0                | 0               | 0                | 326,400 |
| Stock      based compensation                                                          | 0                | 0             | 400,000                 | 0                   | 0                | 0               | 0                | 400,000 |
| Repayment      of receivables                                                          | 0                | 0             | 0                       | 0                   | 19,783           | 0               | 0                | 19,783 |
| Shares      issued in connection with the exercise of shareholders’      options |  1,480,000  |  1,480   |  250,120           |  0             |  0          |  0         |  0          |  251,600 |
| Shares      issued for consulting services                                             | 50,000           | 50            | 45,725                  | 0                   | 0                | 0               | 0                | 45,775 |
| Shares      sold in 2007                                                               | 4,956,876        | 4,957         | 1,122,874               | 0                   | (100,000)        | 0               | 0                | 1,027,831 |
| Options      issued for consultants service                                            | 0                | 0             | 176,326                 | 0                   | 0                | 0               | 0                | 176,326 |
| Deferred      charges                                                                  | 0                | 0             | 0                       | 0                   | 0                | 119,400         | 0                | 119,400 |
| Shares      issued in Anywhere MD acquisition                                          |  200,000    |  200     |  299,800           |  0             |  0          |  0         |  0          |  300,000 |
|                                                                                   |             |          |                    |                |             |            |             |   |
| Net      loss for the year ended     Dec      31, 2007        |  0          |  0       |  0                 |  (2,462,829)   |  0          |  0         |  0          |  (2,462,829) |
|  Balance      at Dec 31, 2007                                                     |  25,733,698 |  $25,734 |  $13,349,010       |  $(13,287,471) |  $(100,000) |  $(40,138) |  $(130,551) |  $(183,416) |
| Share      issued for employment  services                                   | 2,879,999        | 2,880         | 388,800                 | 0                   | 0                | 0               | 0                | 391,680 |
| Shares      issued for consultants services                                            | 2,407,000        | 2,407         | 2,426,813               | 0                   | 0                | 0               | 0                | 2,429,220 |
| Shares      issued for payables                                                        | 43,930           | 44            | 43,886                  | 0                   | 0                | 0               | 0                | 43,930 |
| Shares      issued to settle loan payable                                              | 560,000          | 560           | 279,440                 | 0                   | 0                | 0               | 0                | 280,000 |
| Stock      based compensation                                                          | 0                | 0             | 533,345                 | 0                   | 0                | 0               | 0                | 533,345 |
| Shares      issued in lieu of rent                                                     | 55,000           | 55            | 28,652                  | 0                   | 0                | 0               | 0                | 28,707 |
| Shares      issued for legal fee’s                                               | 100,000          | 100           | 112,083                 | 0                   | 0                | 0               | 0                | 112,183 |
| Shares      issued in connection with the exercise of shareholders’      options | 117,989          | 118           | (118)                   | 0                   | 0                | 0               | 0                | 0 |
| Shares      sold in 2008                                                               | 411,593          | 411           | 209,589                 | 0                   | (200,000)        | 0               | 0                | 10,000 |
| Net      deficit acquired in Anywhere   MD                              | 0                | 0             | 0                       | 0                   | 0                | 40,138          | 0                | 40,138 |
| Net      loss for the year endedDec      31, 2008                                      |  0          |  0       |  0                 |  (4,365,769)   |  0          |  0         |  0          |  (4,365,769) |
|  Balance      at Dec 31, 2008                                                     |  32,309,209 |  $32,310 |  $17,371,500       |  $(17,653,240) |  $(300,000) |  $0        |  $(130,551) |  $(679,982) |

----

|                                                                                |   | For      the years ended |       |
|-------------------------------------------------------------------------------------|--------|--------------------------|------------|
|                                                                                |   | December      31,        |       |
|                                                                                |   | 2008(restated)           |       |   | 2007(restated) |   |
| Cash      flows from operating activities:                                          |   |                     |       |   |   |   |
| Net      loss                                                                       |   | $                        | (4,365,769 | ) |   | $ | (2,462,829 | ) |
| Adjustments      to reconcile net loss  to net cash                       |   |                     |       |   |   |   |   |   |
| used      in operating activities:                                                  |   |                     |       |   |   |   |   |   |
|      Minority      interest                                |   |                     | -          |   |   |   | (113,290 | ) |
|      Depreciation                                          |   |                     | 22,443     |   |   |   | 34,860 |   |
|      Increase      in deferred charges                     |   |                     | 40,138     |   |   |   | - |   |
|      Amortization                                          |   |                     | 1,088      |   |   |   | - |   |
|      Amortization      of deferred charges                 |   |                     | -          |   |   |   | 132,163 |   |
|          Issuance      of common stock |   |                     | 210,000    |   |   |   | - |   |
|      Share      based compensation                         |   |                     | 533,345    |   |   |   | 400,000 |   |
|      Issuance      of common stock for salary              |   |                     | 391,680    |   |   |   | - |   |
| Issuance      of common shares for consulting and other servicesrendered            |   |                     | 2,429,220  |   |   |   | 819,884 |   |
| Issuance      of common stock for relief of loans                                   |   |                     | 323,930    |   |   |   | - |   |
| Issuance      of common stock for rent                                              |   |                     | 28,707     |   |   |   | - |   |
| Issuance      of common stock for legal fees                                        |   |                     | 112,183    |   |   |   | - |   |
| Inventory                                                                           |   |                     | (2,818     | ) |   |   | - |   |
| Deposits                                                                            |   |                     | (9,165     | ) |   |   | (12,583 | ) |
| Increase      in deferred revenue                                                   |   |                     | 5,500      |   |   |   | 64,884 |   |
| Accounts      receivable                                                            |   |                     | (15,731    | ) |   |   | (39,372 | ) |
| Other      assets                                                                   |   |                     | (20,438    | ) |   |   |   |   |
| Accrued      expense and other current liabilities                                  |   |                     | (24,406    | ) |   |   | (37,537 | ) |
|                                                                                |   |                     |       |   |   |   |   |   |
| Net      cash used in operating activities                                          |   |                     | (345,093   | ) |   |   | (1,213,820 | ) |
|                                                                                |   |                     |       |   |   |   |   |   |
| Cash      flows from investing activities:                                          |   |                     |       |   |   |   |   |   |
| Purchase      of fixed assets                                                       |   |                     | (67,909    | ) |   |   | (111,685 | ) |
| Purchase      of intangible asset                                                   |   |                     | -          |   |   |   | (41,812 | ) |
| Cash      acquired in Med-Link acquisition                                          |   |                     | -          |   |   |   | 274 |   |
|                                                                                |   |                     |       |   |   |   |   |   |
| Net      cash used in investing activities                                          |   |                     | (67,909    | ) |   |   | (153,223 | ) |

----

|                                                                                                  |   | For      the years ended |      |
|-------------------------------------------------------------------------------------------------------|--------|--------------------------|-----------|
|                                                                                                  |   | December      31,        |      |
|                                                                                                  |   | 2008(restated)           |      |   | 2007(restated) |   |
|   Cash      flows from financing activities:                                                |   |                     |      |   |   |   |
| Proceeds      from related party loans                                                                |   |                     | -         |   |   |   |   |
| Repayment      of loans                                                                               |   |                     | -         |   |   |   | (251,563 | ) |
| Increase      in lease payable                                                                        |   |                     | (2,750    | ) |   |   | (5,500 | ) |
| Proceeds      from loan payable                                                                       |   |                     | 77,708    |   |   |   | - |   |
| Proceeds      from sale of stock                                                                      |   |                     | -         |   |   |   | 1,027,831 |   |
| Proceeds      from subscription receivable                                                            |   |                     | (200,000  | ) |   |   |   |   |
| Advances      from (to) officer/shareholders                                                          |   |                     | 508,448   |   |   |   | 599,037 |   |
|                                                                                                  |   |                     |      |   |   |   |   |   |
| Net      cash provided by (financing activities                                                       |   |                     | 383,406   |   |   |   | 1,369,805 |   |
|                                                                                                  |   |                     |      |   |   |   |   |   |
| NET      INCREASE (DECREASE) IN CASH                                                                  |   |                     | (29,596   | ) |   |   | 2,762 |   |
|                                                                                                  |   |                     |      |   |   |   |   |   |
| CASH      AT BEGINNING OF YEAR                                                                        |   |                     | 2,762     |   |   |   | - |   |
|                                                                                                  |   |                     |      |   |   |   |   |   |
| CASH      AT END OF PERIOD                                                                            |   | $                        | (26,834   | ) |   | $ | 2,762 |   |
|                                                                                                  |   |                     |      |   |   |   |   |   |
| Supplemental      disclosure of cash flow information:                                                |   |                     |      |   |   |   |   |   |
| Cash      paid during the year for interest                                                           |   | $                        | -         |   |   | $ | - |   |
| Cash      paid for taxes                                                                              |   | $                        | -         |   |   | $ | - |   |
|                                                                                                  |   |                     |      |   |   |   |   |   |
| Supplemental      disclosure of non-cash financing activities                                         |   |                     |      |   |   |   |   |   |
| Issuance      of common stock                                                                         |   | $                        | 210,000   |   |   | $ | - |   |
| Share      based compensation                                                                         |   | $                        | 533,345   |   |   | $ | - |   |
| Issuance      of common stock for salary                                                              |   | $                        | 391,680   |   |   | $ | - |   |
| Issuance      of common shares for consulting and other    services      rendered |   | $                        | 2,429,220 |   |   | $ | - |   |
| Issuance      of common stock for relief of loans                                                     |   | $                        | 323,930   |   |   | $ | - |   |
| Issuance      of common stock for rent                                                                |   | $                        | 28,707    |   |   | $ | - |   |
| Issuance      of common stock for legal fees                                                          |   | $                        | 112,183   |   |   | $ | - |   |

----

|                                                               | For the years ended |
|--------------------------------------------------------------------|---------------------|
|                                                               | December 31,        |
|                                                               | 2008                | 2007 |
| Supplemental      disclosures of cash flows      information: |                |   |
|   Cash      paid during the year for:                    |                |   |
| Interest                                                           | $0                  | $0 |
| Income      Taxes                                                  | $0                  | $1,700 |
|                                                               |                |   |

----

----

----

----

----

----

----

----

----

| ·   | 62.5%      of the operating activity of Anywhere from the period of May 14, 2007      through December 29, 2007 |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | 100%      of the operating activity of Anywhere from the period of December 30, 2007      through December 31, 2007. |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| ·   | On      May 14, 2007, the Company 100% of the purchase price of $975,000 to      goodwill. |
|--------------------|--------------------------------------------------------------------------------------------|

----

| ·   | On      December 30, 2007 the Company purchased all of the assets and assumed      certain liabilities of Anywhere MD in exchange for 200,000 shares of the      Company’s common stock.  Such shares were valued at $1.50, which      was the fair market value as of December 30, 2007, less expenses of      approximately $23,000. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                               | Estimated      Useful | 2008     | 2007     |
|------------------------------------|-----------------------|----------|----------|
|                               | life      (years)     | Amount   | Amount   |
| Furniture      and fixtures        | 5                     | $32,174  | 13,320   |
| Leasehold      improvements        | 3                     | 10,423   | 10,423   |
| Equipment                          | 5                     | 245,955  | 196,900  |
|                               |                  | 288,552  | 260,643  |
| Less      accumulated depreciation |                  | 109,527  | 87,084   |
|                               |                  |     |     |
|                               |                  | $179,025 | $133,559 |

----

|                                                                                                                                                                                             |   |                | 2008                          |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|-------------------------------|
| Notes      payable to a finance company, due in monthly installments of $540,      including principal, sales tax & interest at 8.5% through 2009,      collateralized by certain equipment. |   |    $ |     5,500 |
| Less      current portion                                                                                                                                                                        |   |                | (5.500)                       |
| Long      – term debt                                                                                                                                                                      |   | $                   |  0                       |
|                                                                                                                                                                                             |   |                |                          |

----

| a)   | Share      Based Employment Compensation |
|----------------|------------------------------------------|

| Stock-based      compensation:                                                      |   | 2008      | 2007      |
|-------------------------------------------------------------------------------------|--------|-----------|-----------|
| MedLink      Employee, officers and directors stock-based compensation      expense | $      | 391,608   | 326,400   |
| Total      stock-based compensation                                                 |   | 2,879,000 | 2,400,000 |

----

| Consultant      stock-based compensation:        |   | 2008      | 2007   |
|--------------------------------------------------|--------|-----------|--------|
| Consultant      stock-based compensation expense | $      | 2,429,220 | 45,775 |
| Total      stock-based compensation              |   | 2,407,000 | 50,000 |

----

----

|                                           |      | Weighted      Average | Weighted      AverageRemaining | Aggregate      Intrinsic |
|------------------------------------------------|-----------|-----------------------|--------------------------------|--------------------------|
|                                           | Shares    | Exercise      Price   | Contractuallife      in years  | Value                    |
| Options      outstanding as of January 1, 2007 | 1,490,000 | $0.17                 |                           |                     |
| Granted                                        | 1,540,000 | $0.31                 |                           |                     |
| Canceled/Forfeited                             |      |                  |                           |                     |
| Exercised                                      | 1,480,000 | $0.17                 |                           |                     |
| Options      outstanding at December 31, 2007  | 1,550,000 | $0.31                 | 6.4                            | $1,844,500               |
| Granted                                        | 1,000,000 | $0.85                 |                           |                     |
| Canceled/Forfeited                             | 87,011    | $0.31                 |                           |                     |
| Exercised                                      | 117,989   | $0.31                 |                           |                     |
| Option      outstanding at December 31, 2008   | 2,345,000 | $0.54                 | 7.6                            | $1,031,150               |

| Outstanding      Options |           |                  | Exercisable      Options |
|--------------------------|----------------|-----------------------|--------------------------|
|                     | Number      of | Average               | Average                  | Number      of | Average |
|                     | Options        | Remaining             | Exercise                 | Options | Exercise |
| Exercise      Price      | Outstanding    | Contractual      Life | Price                    | Outstanding | Price |
| $0.30                    | 1,335,000      | 6.3                   | $0.30                    | 1,350,000 | $0.30 |
| $0.85                    | 10,000         | 0.85                  | $0.85                    | 10,000 | $0.85 |
| $0.85                    | 1,000,000      | 9.2                   | $0.85                    |   |   |

----

|                                               |   | 2008   |       |   | 2007   |   |
|----------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Current:                                           |   |   |       |   |   |   |
| Federal      and state                             |   | $      | 0          |   |   | $      | 0 |   |
| Deferred:                                          |   |   |       |   |   |   |   |   |
| Federal      and state                             |   | $      | (1,746,308 | )      |   | $      | (1,510,967 | ) |
| Benefit      from the operating loss carry forward |   | $      | 1,746,308  |   |   | $      | 1,510,967 |   |
|                                               |   |   |       |   |   |   |   |   |
| Benefit      for income taxes, net                 |   | $      | 0          |   |   | $      | 0 |   |

|                                   |   | 2008   |   |   | 2007   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|
|                                   |   |   |   |   |   |   |
| Statutory      federal income tax rate |   |   | 34.0   | %      |   |   | 34.0 | % |
| State      income taxes                |   |   | 6.0    | %      |   |   | 6.0 | % |
| Valuation      allowance               |   |   | (40.0  | )%     |   |   | (40.0 | )% |
| Effective      tax rate                |   |   | (0.0   | )%     |   |   | (0.0 | )% |

----

| Increase      in Goodwill                                           |   | $      | 277,129     |
|---------------------------------------------------------------------|--------|--------|-------------|
| Increase      in Total Assets                                       |   |   | 277,129     |
| Increase      in Additional Paid in Capital                         |   |   | 277,129     |
| Increase      in Total Stockholders’ Deficit                  |   |   | 277,129     |
| Reduction      in Issuance of Common Stock in Operating Activities  |   |   | (1,027,841) |
| Increase      in Proceeds from sale of stock in Financing Activates |   |   | 1,027,841   |

----

|                                                                                                             |   | Previously |        |   | Net    |   |    | Restated |   |
|------------------------------------------------------------------------------------------------------------------|--------|------------|-------------|--------|--------|--------|---------|----------|--------|
|  Balance Sheet as of December      31, 2007                                                            |   | Reported   |        |   | Change |   |    |     |   |
|                                                                                                             |   | 2007       |        |   |   |   |    | 2007     |   |
| ASSETS                                                                                                           |   |       |        |   |   |   |    |     |   |
| CURRENT      ASSETS:                                                                                             |   |       |        |   |   |   |    |     |   |
| Cash                                                                                                             |   |       | 2,762       |   |   |   | -       |     |   |   | 2,762 |   |
| Due      from related party                                                                                      |   |       | 39,372      |   |   |   | -       |     |   |   | 39,372 |   |
| TOTAL      CURRENT ASSETS:                                                                                       |   |       | 42,134      |   |   |   | -       |     |   |   | 42,134 |   |
| Office      equipment (at cost) net of accumulated depreciation                                                  |   |       | 133,559     |   |   |   | -       |     |   |   | 133,559 |   |
| Intangible      asset (at cost), net of accumulated amortization                                                 |   |       | 41,538      |   |   |   | -       |     |   |   | 41,538 |   |
| Goodwill                                                                                                         |   |       | 975,000     |   |   |   | 277,129 | (A)      |   |   | 1,252,129 |   |
| Security      deposit                                                                                            |   |       | 5,400       |   |   |   | -       |     |   |   | 5,400 |   |
| Other      assets                                                                                                |   |       |        |   |   |   | -       |     |   |   | - |   |
| TOTAL      ASSETS:                                                                                               |   |       | 1,197,631   |   |   |   | 277,129 |     |   |   | 1,474,760 |   |
|                                                                                                             |   |       |        |   |   |   |    |     |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS'      EQUITY                                                                        |   |       |        |   |   |   |    |     |   |   |   |   |
| CURRENT      LIABILITIES:                                                                                        |   |       |        |   |   |   |    |     |   |   |   |   |
| Accounts      payable and accrued expenses                                                                       |   |       | 427,683     |   |   |   | -       |     |   |   | 427,683 |   |
| Bank      overdraft                                                                                              |   |       | -           |   |   |   |    |     |   |   | - |   |
| Deferred      revenue                                                                                            |   |       | 64,884      |   |   |   | -       |     |   |   | 64,884 |   |
| Current      portion of capitalized lease payable                                                                |   |       | 5,500       |   |   |   |    |     |   |   | 5,500 |   |
| Note      payable                                                                                                |   |       | 623,437     |   |   |   | -       |     |   |   | 623,437 |   |
| Due      to related party                                                                                        |   |       | 533,922     |   |   |   | -       |     |   |   | 533,922 |   |
| Lease      Payable                                                                                               |   |       | 2,750       |   |   |   | -       |     |   |   | 2,750 |   |
| TOTAL      CURRENT LIABILITIES                                                                                   |   |       | 1,658,176   |   |   |   |    |     |   |   | 1,658,176 |   |
|                                                                                                             |   |       |        |   |   |   |    |     |   |   |   |   |
| STOCKHOLDERS'      DEFICIT:                                                                                      |   |       |        |   |   |   |    |     |   |   |   |   |
| Common      stock Class A $.001 par value; authorized 150,000,000 shares; 20,371,822      issued and outstanding |   |       | 20,372      |   |   |   | -       |     |   |   | 20,372 |   |
| Common      stock B Class B $.001 par value; authorized 50,000,000; 5,361,876 issued      and outstanding        |   |       | 5,362       |   |   |   | -       |     |   |   | 5,362 |   |
| Subscription      receivable                                                                                     |   |       | (100,000    | )      |   |   | -       |     |   |   | (100,000 | ) |
| Additional      paid-in capital                                                                                  |   |       | 13,071,881  |   |   |   | 277,129 | (B)      |   |   | 13,349,010 |   |
| Accumulated      deficit                                                                                         |   |       | (13,287,471 | )      |   |   |    |     |   |   | (13,287,471 | ) |
| Deferred      charges                                                                                            |   |       | (40,138     | )      |   |   | -       |     |   |   | (40,138 | ) |
| Treasury      stock                                                                                              |   |       | (130,551    | )      |   |   | -       |     |   |   | (130,551 | ) |
| Total      stockholders' deficit                                                                                 |   |       | (460,545    | )      |   |   | 277,129 |     |   |   | (183,416 | ) |
| TOTAL      STOCKHOLDERS' LIABILITIES AND STOCKHOLDER EQUITY                                                      |   |       | 1,197,631   |   |   |   | 277,129 |     |   |   | 1,474,760 |   |

----

| Consolidated      Statements of Cash Flows as of December 31, 2007                     |   | Previously |       |   | Net    |   |       | Restated |   |
|----------------------------------------------------------------------------------------|--------|------------|------------|--------|--------|--------|------------|----------|--------|
|                                                                                   |   | Reported   |       |   | Change |   |       |     |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                             |   |       |       |   |   |   |       |     |   |
| Net      loss                                                                          |   |       | (2,462,829 | )      |   |   | -          |     |   |   | (2,462,829 | ) |
| Adjustments      to reconcile net loss  to net cash used in operating      : |   |       |       |   |   |   |       |     |   |   |   |   |
|      Minority      interest                                   |   |       | (113,290   | )      |   |   | -          |     |   |   | (113,290 | ) |
|      Depreciation                                             |   |       | 34,860     |   |   |   | -          |     |   |   | 34,860 |   |
|      Amortization                                             |   |       | -          |   |   |   | -          |     |   |   | 0 |   |
|      Amortization      of deferred charges                    |   |       | 132,163    |   |   |   | -          |     |   |   | 132,163 |   |
|          Issuance      of common stock    |   |       | 1,027,831  |   |   |   | (1,027,831 | )(B)     |   |   | - |   |
|      Share      based compensation                            |   |       | 400,000    |   |   |   | -          |     |   |   | 400,000 |   |
|      Issuance      of common stock for salary                 |   |       | -          |   |   |   | -          |     |   |   | - |   |
| Issuance      of common shares for consulting and other servicesrendered               |   |       | 819,884    |   |   |   | -          |     |   |   | 819,884 |   |
| Deposits                                                                               |   |       | (12,583    | )      |   |   | -          |     |   |   | (12,583 | ) |
| Increase      in deferred revenue                                                      |   |       | 64,884     |   |   |   | -          |     |   |   | 64,884 |   |
| Accounts      receivable                                                               |   |       | (39,372    | )      |   |   | -          |     |   |   | (39,372 | ) |
| Other      assets                                                                      |   |       |       |   |   |   | -          |     |   |   |   |   |
| Accrued      expense and other current liabilities                                     |   |       | (37,537    | )      |   |   |       |     |   |   | (37,537 | ) |
|                                                                                   |   |       |       |   |   |   |       |     |   |   |   |   |
| NET      CASH USED IN OPERATING ACTIVITIES                                             |   |       | (185,989   | )      |   |   | 1,027,831  | (C)      |   |   | (1,213,820 | ) |
|                                                                                   |   |       |       |   |   |   |       |     |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES                                              |   |       |       |   |   |   |       |     |   |   |   |   |
| Purchase      of fixed assets                                                          |   |       | (111,685   | )      |   |   | -          |     |   |   | (111,685 | ) |
| Purchase      of intangible asset                                                      |   |       | (41,812    | )      |   |   |       |     |   |   | (41,812 | ) |
| Cash      acquired in Med-Link acquisition                                             |   |       | 274        |   |   |   | -          |     |   |   | 274 |   |
| Net      cash used in investing activities:                                            |   |       | (153,223   | )      |   |   | -          |     |   |   | (153,223 | ) |
|                                                                                   |   |       |       |   |   |   |       |     |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                             |   |       |       |   |   |   |       |     |   |   |   |   |
| Proceeds      from related party loans                                                 |   |       |       |   |   |   |       |     |   |   |   |   |
| Repayment      of loans                                                                |   |       | (251,563   | )      |   |   |       |     |   |   | (251,563 | ) |
| Increase      in lease payable                                                         |   |       | (5,500     | )      |   |   |       |     |   |   | (5,500 | ) |
| Proceeds      from loan payable                                                        |   |       | -          |   |   |   | -          |     |   |   | - |   |
| Proceeds      from sale of stock                                                       |   |       |       |   |   |   | 1,027,831  | (C)      |   |   | 1,027,831 |   |
| Proceeds      from subscription receivable                                             |   |       |       |   |   |   |       |     |   |   |   |   |
| Advances      from (to) officer/shareholders                                           |   |       | 599,037    |   |   |   |       |     |   |   | 599,037 |   |
| Net      cash provided by financing:                                                   |   |       | 341,974    |   |   |   | 1,027,831  | (C)      |   |   | 1,369,805 |   |
| NET      INCREASE (DECREASE) IN CASH                                                   |   |       | 2,762      |   |   |   |       |     |   |   | 2,762 |   |
| CASH      AT BEGINNING OF YEAR                                                         |   |       | -          |   |   |   |       |     |   |   | - |   |
| CASH      AT END OF PERIOD                                                             |   |       | 2,762      |   |   |   |       |     |   |   | 2,762 |   |
| Supplemental      disclosure of cash flow information:                                 |   |       | -          |   |   |   | -          |     |   |   | - |   |
|                                                                                   |   |       |       |   |   |   |       |     |   |   |   |   |
| Supplemental      disclosure of non-cash financing activities                          |   |       | -          |   |   |   | -          |     |   |   | - |   |

----

| Increase      in Goodwill                          |   | $      | 277,129 |
|----------------------------------------------------|--------|--------|---------|
| Increase      in Total Assets                      |   |   | 277,129 |
| Increase      in Additional Paid in Capital        |   |   | 277,129 |
| Increase      in Total Stockholders’ Deficit |   |   | 277,129 |

----

|                                                                                                                                                                                                                |   | Previously |        |   | Net    |   |    | Restated |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|-------------|--------|--------|--------|---------|----------|--------|
|  Balance Sheet      as of December 31, 2008                                                                                                                                                                    |   | Reported   |        |   | Change |   |    |     |   |
| ASSETS                                                                                                                                                                                                              |   |       |        |   |   |   |    |     |   |
| CURRENT      ASSETS:                                                                                                                                                                                                |   |       |        |   |   |   |    |     |   |
| Cash                                                                                                                                                                                                                |   |       |        |   |   | -      |    |     |   |   |
| Accounts      Receivable                                                                                                                                                                                            |   |       | 20,731      |   |   |   | -       |     |   |   | 20,731 |   |
| Inventory                                                                                                                                                                                                           |   |       | 2,818       |   |   |   | -       |     |   |   | 2,818 |   |
| Deposits                                                                                                                                                                                                            |   |       | 9,165       |   |   |   | -       |     |   |   | 9,165 |   |
| TOTAL      CURRENT ASSETS                                                                                                                                                                                           |   |       | 32,714      |   |   |   | -       |     |   |   | 32,714 |   |
| Office      equipment (at cost) net of accumulated depreciation                                                                                                                                                     |   |       | 179,025     |   |   |   | -       |     |   |   | 179,025 |   |
| Intangible      asset (at cost), net of accumulated amortization                                                                                                                                                    |   |       | 40,450      |   |   |   | -       |     |   |   | 40,450 |   |
| Goodwill                                                                                                                                                                                                            |   |       | 975,000     |   |   |   | 277,129 | (A)      |   |   | 1,252,129 |   |
| Security      deposit                                                                                                                                                                                               |   |       | 20,438      |   |   |   | -       |     |   |   | 20,438 |   |
| Other      assets                                                                                                                                                                                                   |   |       | 5,400       |   |   |   | -       |     |   |   | 5,400 |   |
| TOTAL      ASSETS:                                                                                                                                                                                                  |   |       | 1,253,027   |   |   |   | 277,129 |     |   |   | 1,530,156 |   |
|       MEDLINK      INTERNATIONAL, INC.NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS (restated)Note 12      -  RESTATEMENT OF FINANCIAL INFORMATION      (continued)  |   |       |        |   |   |   |    |     |   |   |   |   |
|                                                                                                                                                                                                                |   | Previously |        |   | Net    |   |    | Restated |   |
|   Balance Sheet      as of December 31, 2008                                                                                                                                                              |   | Reported   |        |   | Change |   |    |     |   |   |
| LIABILITIES AND STOCKHOLDERS'      EQUITY                                                                                                                                                                           |   |       |        |   |   |   |    |     |   |   |   |   |
| CURRENT      LIABILITIES:                                                                                                                                                                                           |   |       |        |   |   |   |    |     |   |   |   |   |
| Accounts      payable and accrued expenses                                                                                                                                                                          |   |       | 403,277     |   |   |   | -       |     |   |   | 403,277 |   |
| Bank      overdraft                                                                                                                                                                                                 |   |       | 26,834      |   |   |   | -       |     |   |   | 26,834 |   |
| Deferred      revenue                                                                                                                                                                                               |   |       | 70,384      |   |   |   | -       |     |   |   | 70,384 |   |
| Current      portion of capitalized lease payable                                                                                                                                                                   |   |       | 5,500       |   |   |   | -       |     |   |   | 5,500 |   |
| Note      payable                                                                                                                                                                                                   |   |       | 701,145     |   |   |   | -       |     |   |   | 701,145 |   |
| Due      to related party                                                                                                                                                                                           |   |       | 1,002,88    |   |   |   | -       |     |   |   | 1,002,988 |   |
| TOTAL      CURRENT LIABILITIES                                                                                                                                                                                      |   |       | 2,210,128   |   |   |   | -       |     |   |   | 2,210,138 |   |
|                                                                                                                                                                                                                |   |       |        |   |   |   |    |     |   |   |   |   |
| STOCKHOLDERS'      DEFICIT:                                                                                                                                                                                         |   |       |        |   |   |   |    |     |   |   |   |   |
| Common      stock Class A $.001 par value; authorized 150,000,000 shares; 26,947,333      shares issued and outstanding                                                                                             |   |       | 26,947      |   |   |   | -       |     |   |   | 26,947 |   |
| Common      stock B Class B $.001 par value; authorized 50,000,000; 5,361,876 issued      and outstanding                                                                                                           |   |       | 5,362       |   |   |   | -       |     |   |   | 5,362 |   |
| Subscription      receivable                                                                                                                                                                                        |   |       | (300,000    | )      |   |   | -       |     |   |   | (300,000 | ) |
| Additional      paid-in capital                                                                                                                                                                                     |   |       | 17,094,371  |   |   |   | 277,129 | (B)      |   |   | 17,371,500 |   |
| Accumulated      deficit                                                                                                                                                                                            |   |       | (17,653,240 | )      |   |   | -       |     |   |   | (17,653,240 | ) |
| Deferred      charges                                                                                                                                                                                               |   |       |        |   |   |   | -       |     |   |   | - |   |
| Treasury      stock                                                                                                                                                                                                 |   |       | (130,551    | )      |   |   | -       |     |   |   | (130,551 | ) |
| TOTAL      STOCKHOLDERS' DEFICIT                                                                                                                                                                                    |   |       | (957,111    | )      |   |   | 277,129 |     |   |   | (679,982 | ) |
| TOTAL      STOCKHOLDERS' LIABILITIES AND STOCKHOLDER EQUITY                                                                                                                                                         |   |       | 1,253,017   |   |   |   | 277,129 |     |   |   | 1,530,156 |   |

----

| Year      ended December 31, |    |
|------------------------------|---------|
| 2009                         | $54,990 |
| 2010                         | $54,990 |
| 2011                         | $54,990 |
| 2012                         | $36,660 |

| Year      ended December 31, |    |
|------------------------------|---------|
| 2009                         | $64,750 |
| 2010                         | $80,780 |
| 2011                         | $84,486 |
| 2012                         | $88,184 |
| 2013                         | $91,880 |
| 2014                         | $15,416 |

----

Item

Item

----

|   | · | Weakness: The Company’s      board of directors has yet to pass a formal resolution to put in place a      strategic plan and framework in order to comply with the regulations      placed on issuers concerning internalcontrols. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Weakness: The Company      lacks a comprehensive Code of Ethics that is applicable to the entire      Company including officers, employees, and  directors. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Weakness: The Company      lacks a guideline that specifically states the objective and core      functions of the Company so that there is no ambiguity to all members of      the organization as to what type of business transactions the Company      should be conducting. This guideline should also be reviewed on regular      basis by management and the Board of Directors in order to address the      ever changing business environment and the demands of the      market. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  | Weakness: The Company      accounting department is currently understaffed and lacks personnel with      expertise in US GAAP and SEC reporting  standards. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |  | Weakness: The Company      does not have an internal audit function and  department. |
|--------|----------|--------------------------------------------------------------------------------------|

|   |  | Weakness: The Company      does not have a standardized and unified Enterprise Resource Planning      Software (ERP). The Company’s accounting systems are disparate and      sometimes manual in nature which makes them neither scalable nor efficient      for financial reporting purposes and management decision making      needs. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Item      10.Directors, Executive      Officers, and CorporateGovernance |
|--------|--------------------------------------------------------------------------|

| Name                   | Age | Position                                                          | Director      or Officer Since |
|------------------------|-----|-------------------------------------------------------------------|--------------------------------|
| Ray      Vuono         | 43  | Chief      Executive Officer, President and Chairman of the Board | January      1, 2004           |
| Konrad      Kim        | 37  | Chief      Technology Officer and Director                        | October      1, 2000           |
| Dr.      Michael Carvo | 56  | Director                                                          | January      1, 2002           |
| James      Rose        | 30  | Chief      Financial Officer and Executive Vice President         | January      1, 2004           |

----

----

| Item      11. | Executive      Compensation |
|---------------|-----------------------------|

| SUMMARY COMPENSATION      TABLE  |
|----------------------------------|
|                             | Long      Term Compensation |   |
|                             | Annual      Compensation | Awards | Payouts |   |
| Name      and Principal Position | Year | Salary      ($) | Bonus      ($) | Other      Annual Compensation ($) | Restricted      Stock Award(s) (#) | Securities      Underlying Options/SARs (#) | LTIP      Payouts ($) | All      Other Compensation ($) |
| Ray      Vuono, CEO (1)          | 2008 | $4,290 | $0 | $0 | 1,376,471 | 480,000 | - | - |
|                             | 2007 | $10,725 | $0 | $0 | 1,147,059 | 480,000 | - | - |
|                             | 2006 | $0 | $0 | $0 | 955,483 | 480,000 | - | - |
|                             |   |   |   |   |   |   | - | - |
| Jameson      Rose, CFO (2)       | 2008 | $4,290 | $0 | $0 | 1,164,705 | 400,000 | - | - |
|                             | 2007 | $10,725 | $0 | $0 | 970,588 | 400,000 | - | - |
|                             | 2006 | $0 | $0 | $0 | 808,824 | 400,000 | - | - |
|                             |   |   |   |   |   |   | - | - |
| Konrad      Kim, CTO (3)         | 2008 | $4,290 | $0 | $0 | 338,823 | 120,000 | - | - |
|                             | 2007 | $10,725 | $0 | $0 | 282,353 | 120,000 | - | - |
|                             | 2006 | $0 | $0 | $0 | 235,295 | 120,000 | - | - |

|   | (1) | Mr.      Vuono received minimal cash payments at the minimum wage rate to qualify      for the Company’s health benefits during the year ended December, 31, 2007      and 2008, but did receive 2,523,530 shares of common stock as payment in      those years, in lieu of salary. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Mr.      Rose received minimal cash payments at the minimum wage rate to qualify      for the Company’s health benefits during the year ended December, 31, 2007      and 2008, but did receive 2,135,293 shares of common stock as payment in      those years, in lieu of salary. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Mr.      Kim received minimal cash payments at the minimum wage rate to qualify for      the Company’s health benefits during the year ended December, 31, 2007 and      2008, but did receive 621,176 shares of common stock as payment in those      years, in lieu of salary. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item      12. | Security Ownership of      Certain Beneficial Owners and Management and Related Stockholder      Matters |
|---------------|----------------------------------------------------------------------------------------------------------|

| Title      of Class | Name      and Address of Beneficial Owner | Amount      and Nature of Beneficial Ownership | Percent      of Class |
|---------------------|-------------------------------------------|------------------------------------------------|-----------------------|
|                |                                      |                                           |                  |
| $.001      par (1)  | Ray      Vuono                            | 7,306,813                                      | 21.87%                |
| value      per      | 1      Roebling Court                     |                                           |                  |
| share               | Ronkonkoma,      New York 11779           |                                           |                  |
| common              |                                      |                                           |                  |
|                |                                      |                                           |                  |
| $.001      par (2)  | Jameson      Rose                         | 6,298,797                                      | 18.85%                |
| value      per      | 1      Roebling Court                     |                                           |                  |
| share               | Ronkonkoma,      New York 11779           |                                           |                  |
| common              |                                      |                                           |                  |
|                |                                      |                                           |                  |
| $.001      par      | Jerry      Bermensolo                     | 4,144,778                                      | 12.41%                |
| value      per      | 1087      W. River St, Suite 280          |                                           |                  |
| share               | Boise,      ID 83702                      |                                           |                  |
| common              |                                      |                                           |                  |
|                |                                      |                                           |                  |
|                |                                      |                                           |                  |
| $.001      par (3)  | Konrad      Kim                           | 1,823,055                                      | 5.46%                 |
| value      per      | 1      Roebling Court                     |                                           |                  |
| share               | Ronkonkoma,      New York 11779           |                                           |                  |
| common              |                                      |                                           |                  |
|                |                                      |                                           |                  |
| $.001      par      | Dr.      Michael Carvo, Director          | 472,676                                        | 1.41%                 |
|                | 1      Roebling Court                     |                                           |                  |
| share               | Ronkonkoma,      New York 11779           |                                           |                  |
| common              |                                      |                                           |                  |
|                |                                      |                                           |                  |
|                |                                      |                                           |                  |
|                |                                      | 15,901,341                                     | 47.60%                |

----

Item

|   | Board      Determination of Independence |
|--------|------------------------------------------|

|   |   |
|--------|--------|

Item

|                        | 2008    | 2007    |
|-----------------------------|---------|---------|
|                        |    |    |
| Audit      Related Fees     | $35,000 | $37,500 |
| Tax      Fees               | $2,965  | $2,965  |
| All      Other Fees         |    |    |
| Out-of-Pocket      Expenses |    |    |
| Total                       | $37,965 | $40,465 |

----

Item

| 31.2 | Certification      of Jameson Rose pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as      adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002; (Filed      herewith) |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Name                                                | Percentage Ownership |
|-----------------------------------------------------|----------------------|
|                                                |                 |
| KRad      Konsulting, LLC                           | 100%                 |
|                                                |                 |
| MedLink      USA, Inc.                              | 100%                 |
|                                                |                 |
| Western      Media Acquisition Corp.                | 100%                 |
| (Formerly      Western Media Sports Holdings, Inc.) |                 |
|                                                |                 |
| Western      Media Publishing Corporation           | 100%                 |
|                                                |                 |
| MedLink      VPN, Inc.                              | 100%                 |
|                                                |                 |
| Norika      USA, Inc.                               | 100%                 |
|                                                |                 |
| MedLink      FE, Inc.                               | 100%                 |
|                                                |                 |
| MedLink      India Software, Ltd.                   | 100%                 |

----

----