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|  United StatesSecurities and Exchange CommissionWashington, D.C. 20549  |
|-----------------------------------------------------------------------------------|
|                                                                              |   |   |
|                                                                              | Form 10-K/A(Amendment No. 1) |   |
|                                                                              |   |   |
|  [x]                                                                         |  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |   |
|                                                                              |   |   |
|                                                                              | For the fiscal year ended December 31, 2010 |   |
|                                                                              |   |   |
| [  ]                                                                    | 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, 2010 |
|----------------------------------------|--------------------------------------------|
| Class A Common Stock, $0.001 par value | 42,233,190                                 |
| Class B Common Stock, $0.001 par value | 5,361,876                                  |

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|           |                                                                                                               |   |   |
|----------------|--------------------------------------------------------------------------------------------------------------------|--------|--------|
| Part I         |                                                                                                               | Page   |   |
| Item 1.        | Business Overview                                                                                                  | 4      |
| Item 1A.       | Risk Factors                                                                                                       | 14     |
| Item 1B.       | Unresolved Staff Comments                                                                                          | 44     |
| Item 2.        | Properties                                                                                                         | 44     |
| Item 3.        | Legal Proceedings                                                                                                  | 45     |
| Item 4.        | Submission of Matter to a Vote of Security Holders                                                                 | 45     |
|  Part II  |                                                                                                               |   |
| Item 5         | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 45     |
| Item 6         | Selected Financial Data                                                                                            | 48     |
| Item 7         | Management’s Discussion and Analysis of Financial Condition and Results of Operation                         | 49     |
| Item 7A.       | Quantitative and Qualitative Disclosures About Market Risk                                                         | 64     |
| Item 8.        | Financial Statements and Supplementary Data                                                                        | 65     |
| Item 9         | Changes in and Disagreements With Accountants on Accounting and Financial Disclosures                              | 83     |
| Item9AT.       | Controls and Procedures                                                                                            | 84     |
|  Part III |                                                                                                               |   |
| Item 10.       | Directors, Executive Officers and Corporate Governance                                                             | 87     |
| Item 11.       | Executive Compensation                                                                                             | 89     |
| Item 12.       | Security Ownership of Certain Beneficial Owners and Management and Related  Stockholder Matters          | 90     |
| Item 13.       | Certain Relationships and Related Transactions, and Director Independence                                          | 91     |
| Item 14.       | Principal Accounting Fees and Services                                                                             | 91     |
|  PART IV  |                                                                                                               |   |
| Item 15.       | Exhibits , Financial Statement Schedules                                                                           | 92     |
|           | Signatures                                                                                                         | 93     |

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|                        |   |                                |       |
|-----------------------------|--------|-------------------------------------|------------|
| Quarterly Interest Payments |   | Quarterly Interest Amount |       |
| March 1, 2011               |   | $                                   | 33,218.86  |   |
| June 1, 2011                |   | $                                   | 31,164.09  |   |
| September 1, 2011           |   | $                                   | 31,164.09  |   |
| December 1, 2011            |   | $                                   | 30,821.63  |   |
| March 1, 2012               |   | $                                   | 30,821.63  |   |
| May 26, 2012                |   | $                                   | 28,766.85  |   |
| Total Interest Payments     |   | $                                   | 185,957.14 |   |

----

| Payment Due Date |   | Interest Payment |       |   | Principal Payment |   |
|------------------|--------|------------------|------------|--------|-------------------|--------|
| 3/1/2011         |   | $                | 33,218.86  |   |              |   |   |
| 6/1/2011         |   | $                | 31,164.09  |   |              |   |   |
| 9/1/2011         |   | $                | 31,164.09  |   |              | $      | 69,444.44 |   |
| 10/1/2011        |   |             |       |   |              | $      | 69,444.44 |   |
| 11/1/2011        |   |             |       |   |              | $      | 69,444.44 |   |
| 12/1/2011        |   | $                | 30,821.63  |   |              | $      | 69,444.44 |   |
| 1/1/2012         |   |             |       |   |              | $      | 69,444.44 |   |
| 2/1/2012         |   |             |       |   |              | $      | 69,444.44 |   |
| 3/1/2012         |   | $                | 30,821.63  |   |              | $      | 69,444.44 |   |
| 4/1/2012         |   |             |       |   |              | $      | 69,444.44 |   |
| 5/1/2012         |   |             |       |   |              | $      | 69,444.44 |   |
| 5/24/2012        |   | $                | 28,766.85  |   |              |   | 625,000.00 |   |
|  2011 Total |   | $                | 126,368.66 |   |              | $      | 277,778.78 |   |
| 2012 Total       |   | $                | 59,588.48  |   |              | $      | 972,222.22 |   |
| Total            |   | $                | 185,957.14 |   |              | $      | 1,250,000 |   |

----

|                                                      |   |   |    |   | Less than |   |    |   |   |   |
|-----------------------------------------------------------|--------|--------|---------|--------|-----------|--------|---------|--------|--------|--------|
|                                                      | Total  |   | 1 year  |   | 1-3 years |
|      Operating lease obligations |   | $      | 651,608 |   |      | $      | 145,697 |   |   | $      | 474,118 |   |

| www.medlinkus.com  | www.isuiteehr.com      | www.medlinkpacs.com | www.medappz.com      |
|--------------------|------------------------|---------------------|----------------------|
| www.medlinkvpn.com | www.medlinkix.com      | www.medlinkphr.com  | www.medlinktv.com    |
| www.krad.com       | www.mymedlinkchart.com | www.petmedchart.com | www.medlinkchart.com |

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|   | •  | difficulties in identifying and acquiring products, technologies, or businesses that will help our business;                       |
|--------|---------------|------------------------------------------------------------------------------------------------------------------------------------|
|   | •  | difficulties in integrating operations, technologies, services, and personnel;                                                     |
|   | •  | diversion of financial and managerial resources from existing operations;                                                          |
|   | •  | the risk of entering new markets in which we have little to no experience;                                                         |
|   | •  | risks related to the assumption of known and unknown liabilities;                                                                  |
|   | •  | the risk of write-offs and the amortization of expenses related intangible assets and                                         |
|   | •  | delays in client purchases due to uncertainty and the inability to maintain relationships with clients of the acquired businesses. |

| • |   | 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.                                                                                                                                           |

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|         | •  | interruption of client access to our system for any reason;                                                                  |
|--------------|---------------|------------------------------------------------------------------------------------------------------------------------------|
|         | •  | our failure to provide services in a timely or high-quality manner;                                                          |
|         | •  | failure of our clients to adopt or maintain effective business practices;                                                    |
|         | •  | actions by third-party payers of medical claims to reduce reimbursement;                                                     |
|    | •  | government regulations and government or other payer actions reducing or delaying reimbursement; and                    |
|         | •  | reduction of client revenue resulting from increased competition or other changes in the marketplace for physician services. |

|    | • |   | 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 expansion efforts;                                                                               |
|    | • |   | 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.                                                  |

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|    | • |   | 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.                                                                                                        |

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|   | •  | incur additional indebtedness;                                                              |
|--------|---------------|---------------------------------------------------------------------------------------------|
|   | •  | create liens;                                                                               |
|   | •  | make investments;                                                                           |
|   | •  | sell assets;                                                                                |
|   | •  | pay dividends or make distributions on and, in certain cases, repurchase our stock; or |
|   | •  | consolidate or merge with other entities.                                                   |

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|    | • |   | managing a significantly larger company;                                                                                                                                            |
|--------------|---------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    | • |   | the possibility of faulty assumptions underlying expectations regarding the integration process;                                                                                    |
|         |    |   |                                                                                                                                                                                |   |
|    | • |   | creating uniform standards, controls, procedures, policies and information systems and minimizing the costs associated with such matters;                                           |
|    | • |   | integrating information, purchasing, accounting, finance, sales, billing, payroll and regulatory compliance systems;                                                                |
|    | • |   | preserving customer, supplier, research and development, distribution, marketing, promotion and other important relationships;                                                      |
|    | • |   | commercializing products under development and increasing revenues from existing marketed products;                                                                                 |
|    | • |   | coordinating geographically separated organizations, systems and facilities, including complexities associated with managing the combined businesses with separate locations;       |
|         |    |   |                                                                                                                                                                                |
|    | • |   | integrating personnel from different companies while maintaining focus on providing consistent, high-quality products and customer service and attractive to prospective customers; |
|    | • |   | integrating complex technologies, solutions and products from different companies in a manner that is seamless to customers; and                                                    |
|    | • |   | performance shortfalls as a result of the diversion of management’s attention to the transaction.                                                                             |

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|    | • |   | actual or anticipated variations in our quarterly operating results;                                                 |
|--------------|---------|--------|----------------------------------------------------------------------------------------------------------------------|
|    | • |   | announcements of technological innovations or new services or products by our competitors or us;                     |
|    | • |   | changes in financial estimates by securities analysts;                                                               |
|    | • |   | conditions and trends in the electronic healthcare information, Internet, e-commerce and pharmaceutical markets; and |
|    | • |   | general market conditions and other factors.                                                                         |

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|         | •  |   | requiring us to apply a substantial portion of our cash flow from operations to payments on our debt, reducing the availability of cash flow to fund working capital, capital expenditures and other general corporate purposes; |
|--------------|---------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    | •       |   | increasing our vulnerability to adverse general economic and industry conditions;                                                                                                                                                |
|    | •       |   | limiting our flexibility in planning for, or reacting to, changes in business and the industry in which we operate;                                                                                                              |
|    | •       |   | placing us at a competitive disadvantage compared to competitors that have less debt; and                                                                                                                                        |
|    | •       |   | limiting our ability to borrow additional funds on terms that are satisfactory or at all.                                                                                                                                        |

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

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

|   | - |  limitations on the Company’s ability to incorporate acquired technology and rights into its product   offerings and maintain uniform standards, controls, procedures and policies. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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| Period           |   | High |   |   | Low    |   |
|------------------|--------|------|--------|--------|--------|--------|
| 1st Quarter 2009 |   | $    | 1.00   |   |   | $      | 0.35 |   |
| 2nd Quarter 2009 |   | $    | 0.90   |   |   | $      | 0.45 |   |
| 3rd Quarter 2009 |   | $    | 1.00   |   |   | $      | 0.53 |   |
| 4th Quarter 2009 |   | $    | 0.65   |   |   | $      | 0.43 |   |
| 1st Quarter 2010 |   | $    | 1.67   |   |   | $      | 0.35 |   |
| 2nd Quarter 2010 |   | $    | 1.50   |   |   | $      | 1.05 |   |
| 3rd Quarter 2010 |   | $    | 1.26   |   |   | $      | 0.90 |   |
| 4th Quarter 2010 |   | $    | 1.37   |   |   | $      | 0.80 |   |
| 1st Quarter 2011 |   | $    | 1.05   |   |   | $      | 0.82 |   |

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| 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     |                                                                                        |   | 0          |                                                                        |   |   | 0                                                            |   |   |   | 0 |   |
|                             |                                                                                        |   |       |                                                                        |   |
| Equity compensation plans not    |                                                                                        |   | 1,152,964  | (1,2)                                                                       |   | $      | .030                                                         |   |   |   |   |   |
| approved by security holders (1) |                                                                                        |   | 1,000,000  | (1)                                                                         |   | $      | 0.85                                                         |   |   |   |   |   |
|                             |                                                                                        |   | 8,000,000  | (3)                                                                         |   | $      | 0.44                                                         |   |   |   | 12,000,000 | (3) |
|                             |                                                                                        |   | 800,000    | (4)                                                                         |   | $      | 0.56                                                         |   |   |   |   |   |
| Total                            |                                                                                        |   | 10,952,964 |                                                                        |   |   |                                                         |   |   |   | 16,000,000 |   |

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| Name         | No. of Options |
|--------------|----------------|
| Ray Vuono    | 4,752,964      |
| Jameson Rose | 3,800,000      |
| Konrad Kim   | 1,240,000      |
| Total        | 9,792,964      |

|       | Options   |
|------------|-----------|
|       | 2010      | 2011 | 2012 | 2013 |
| Ray Vuono  | 2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 |
| James Rose | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 |
| Konrad Kim | 500,000   | 500,000 | 500,000 | 500,000 |
| Totals     | 4,000,000 | 4,000,000 | 4,000,000 | 4,000,000 |

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| ·   | Donation agreement with Baptist Health South Florida Hospital |
|--------------------|---------------------------------------------------------------|

| ·   | 2011/2012 ONC/ATCB Certification of ISuite EHR 4.0 |
|--------------------|----------------------------------------------------|

| ·   | CCHIT 2011 Ambulatory EHR Certification, with 5 star usability rating |
|--------------------|-----------------------------------------------------------------------|

| ·   | Selection by the New York Regional Extension Center |
|--------------------|-----------------------------------------------------|

| ·   | One of only 4 vendors to become “Qualified” by CMS |
|--------------------|----------------------------------------------------------------|

| ·   | Launch of MedLink IX and MedLink Lab |
|--------------------|--------------------------------------|

| ·   | Purchase of MedAppz |
|--------------------|---------------------|

| ·   | White label of Secure EMR, by Inmediata Health Group and penetration of Puerto Rican market. |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | Expansion into Florida market with opening of Naples, FL sales and support office. |
|--------------------|------------------------------------------------------------------------------------|

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| www.medlinkus.com  | www.isuiteehr.com      | www.medlinkpacs.com | www.medappz.com      |
|--------------------|------------------------|---------------------|----------------------|
| www.medlinkvpn.com | www.medlinkix.com      | www.medlinkphr.com  | www.medlinktv.com    |
| www.krad.com       | www.mymedlinkchart.com | www.petmedchart.com | www.medlinkchart.com |

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|                        |   |                                |       |
|-----------------------------|--------|-------------------------------------|------------|
| Quarterly Interest Payments |   | Quarterly Interest Amount |       |
| March 1, 2011               |   | $                                   | 33,218.86  |   |
| June 1, 2011                |   | $                                   | 31,164.09  |   |
| September 1, 2011           |   | $                                   | 31,164.09  |   |
| December 1, 2011            |   | $                                   | 30,821.63  |   |
| March 1, 2012               |   | $                                   | 30,821.63  |   |
| May 26, 2012                |   | $                                   | 28,766.85  |   |
| Total Interest Payments     |   | $                                   | 185,957.14 |   |

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| Payment Due Date |   | Interest Payment |       |   | Principal Payment |   |
|------------------|--------|------------------|------------|--------|-------------------|--------|
| 3/1/2011         |   | $                | 33,218.86  |   |              |   |   |
| 6/1/2011         |   | $                | 31,164.09  |   |              |   |   |
| 9/1/2011         |   | $                | 31,164.09  |   |              | $      | 69,444.44 |   |
| 10/1/2011        |   |             |       |   |              | $      | 69,444.44 |   |
| 11/1/2011        |   |             |       |   |              | $      | 69,444.44 |   |
| 12/1/2011        |   | $                | 30,821.63  |   |              | $      | 69,444.44 |   |
| 1/1/2012         |   |             |       |   |              | $      | 69,444.44 |   |
| 2/1/2012         |   |             |       |   |              | $      | 69,444.44 |   |
| 3/1/2012         |   | $                | 30,821.63  |   |              | $      | 69,444.44 |   |
| 4/1/2012         |   |             |       |   |              | $      | 69,444.44 |   |
| 5/1/2012         |   |             |       |   |              | $      | 69,444.44 |   |
| 5/24/2012        |   | $                | 28,766.85  |   |              |   | 625,000.00 |   |
|  2011 Total |   | $                | 126,368.66 |   |              | $      | 277,778.78 |   |
| 2012 Total       |   | $                | 59,588.48  |   |              | $      | 972,222.22 |   |
| Total            |   | $                | 185,957.14 |   |              | $      | 1,250,000 |   |

|                                                      |   |   |    |   | Less than |   |   |   |   |   |
|-----------------------------------------------------------|--------|--------|---------|--------|-----------|--------|--------|--------|--------|--------|
|                                                      | Total  |   | 1 year  |   | 1-3 years |
|      Operating lease obligations |   | $      | 360,746 |   |      | $      | 80,780 |   |   | $      | 253,450 |   |

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|   Part I:  Financial Statements                                                            | Page No.       |
|----------------------------------------------------------------------------------------------------------------|----------------|
|                                                                                                           |           |
| Financial Statements                                                                                           |           |
|  Consolidated Balance Sheets at December 31, 2010 and 2009                                                |  66       |
|  Consolidated Statements of Operations For the years ended December 31, 2010 and 2009                     |  67       |
|  Consolidated Statements of Stockholders' Equity (Deficit) for the Years Ended December 31, 2010 and 2009 |  68       |
|  Consolidated Statements of Cash Flows for the years ended December 31, 2010 and 2009                     |  69       |
|  Notes to Consolidated Financial Statements                                                               |  70  |

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| MEDLINK INTERNATIONAL INC.CONSOLIDATED BALANCE SHEETSFOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009                        |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                       |   | For the years ended |   |
|                                                                                                                       |   | December 31, |   |
|                                                                                                                       |   | 2010(unaudited) |   |   | 2009(Audited) |   |
| ASSETS                                                                                                                     |   |   |   |   |   |   |
| Current assets:                                                                                                            |   |   |   |   |   |   |
| Cash                                                                                                                       |   |   | 657,294 |   |   |   | 4,843 |   |
| Accounts Receivable                                                                                                        |   |   | 4,367,286 |   |   |   | 289,346 |   |
| Assets from discontinued operations                                                                                        |   |   |   |   |   |   | - |   |
| Total Current Assets                                                                                                       |   |   | 5,024,580 |   |   |   | 294,189 |   |
|  Office equipment (at cost), net of accumulated depreciation                                                          |   |   | 41,107 |   |   |   | 186,205 |   |
| Intangible asset (at cost), net of accumulated amortization                                                                |   |   | 2,247,355 |   |   |   | 10,937 |   |
| Goodwill                                                                                                                   |   |   | 1,476,832 |   |   |   | - |   |
| Security deposit                                                                                                           |   |   | 18,950 |   |   |   | 12,950 |   |
| Other assets                                                                                                               |   |   | 1,756,292 |   |   |   | - |   |
|  Total Assets:                                                                                                        |   | $ | 10,565,116 |   |   | $ | 504,281 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                       |   |   |   |   |   |   |   |   |
| Current liabilities:                                                                                                       |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                                                                      |   |   | 518,501 |   |   |   | 145,044 |   |
| Bank overdraft                                                                                                             |   |   |   |   |   |   | - |   |
| Note payable                                                                                                               |   |   | 2,609,022 |   |   |   |   |   |
| Due to related party                                                                                                       |   |   | 861,463 |   |   |   | 1,002,430 |   |
| Liabilities from discontinued operations                                                                                   |   |   | 804,141 |   |   |   | 804,132 |   |
| Total Current Liabilities                                                                                                  |   |   | 4,793,127 |   |   |   | 1,951,606 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
| Stockholders' deficit:                                                                                                     |   |   |   |   |   |   |   |   |
| Common stock Class A $.001 par value; authorized 150,000,000 shares; 42,223,190 and 31,567,236 shares issued, respectively |   |   | 42,223 |   |   |   | 31,567 |   |
| Common stock B Class B $.001 par value; authorized 50,000,000; 5,361,876 issued and outstanding                            |   |   | 5,362 |   |   |   | 5,362 |   |
| Subscription receivable                                                                                                    |   |   | - |   |   |   | - |   |
| Additional paid-in capital                                                                                                 |   |   | 27,099,323 |   |   |   | 20,093,341 |   |
| Accumulated deficit                                                                                                        |   |   | (21,244,369 | ) |   |   | (21,447,044 | ) |
| Treasury stock                                                                                                             |   |   | (130,551 | ) |   |   | (130,551 | ) |
| Total Stockholders' Equity                                                                                                 |   |   | 5,771,989 |   |   |   | (1,447,325 | ) |
|  Total liabilities and stockholders’ equity                                                                     |   | $ | 10,565,115 |   |   | $ | 504,281 |   |

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| MEDLINK INTERNATIONAL INC.CONSOLIDATED STATEMENTS OF OPERATIONSFOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 |
|---------------------------------------------------------------------------------------------------------------|

|                                                          |   | For the years ended |       |
|---------------------------------------------------------------|--------|---------------------|------------|
|                                                          |   | December 31,        |       |
|                                                          |   | 2010(unaudited)     |       |   | 2009(Audited) |   |
| Sales                                                         |   | $                   | 5,997,450  |   |   |   | 520,473 |   |
| Cost of Revenues                                              |   |                | (820,949   | ) |   |   | - |   |
| Gross Profit                                                  |   |                | 5,176,500  |   |   |   | 520,473 |   |
|                                                          |   |                |       |   |   |   |   |   |
| Operating expenses                                            |   |                |       |   |   |   |   |   |
| General and administrative                                    |   |                | 972,843    |   |   |   | 334,883 |   |
| Consulting expense                                            |   |                | 1,584,651  |   |   |   | 1,030,488 |   |
| Compensation expense                                          |   |                | 1,725,145  |   |   |   | 904,396 |   |
| Loss on impairment of intangible asset                        |   |                | -          |   |   |   | 1,843,974 |   |
| Interest Expense                                              |   |                | 505,375    |   |   |   | - |   |
| Depreciation and amortization                                 |   |                | 185,812    |   |   |   | 66,290 |   |
| Total Operating expenses                                      |   |                | 4,973,825  |   |   |   | 4,180,031 |   |
| Income (loss) from continuing operations                      |   | $                   | 202,675    |   |   |   | (3,659,558 | ) |
|  Discontinued operations:                                |   |                |       |   |   |   |   |   |
| Income (loss) from discontinued operations                    |   |                | -          |   |   |   | 47,361 |   |
| Loss from disposal of discontinued operations                 |   |                | -          |   |   |   | (181,607 | ) |
| Loss from discontinued operations                             |   |                | -          |   |   |   | (134,246 | ) |
|  Net Loss                                                |   | $                   | 202,675    |   |   |   | (3,793,804 | ) |
|                                                          |   |                |       |   |   |   |   |   |
| Basic and diluted loss per share (Class A)                    |   | $                   | 0.01       |   |   |   | (.12 | ) |
|                                                          |   |                |       |   |   |   |   |   |
| Basic and diluted loss per share (Class B)                    |   | $                   | 0.04       |   |   |   | (.71 | ) |
|                                                          |   |                |       |   |   |   |   |   |
| Weighted average number of basic shares outstanding (Class A) |   |                | 36,991,765 |   |   |   | 31,567,236 |   |
|                                                          |   |                |       |   |   |   |   |   |
| Weighted average number of basic shares outstanding (Class B) |   |                | 5,361,876  |   |   |   | 5,361,876 |   |
|                                                          |   |                |       |   |   |   |   |   |

----

| MEDLINK INTERNATIONAL INC.CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICITFOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 (unaudited) |
|--------------------------------------------------------------------------------------------------------------------------------------|

|                                         | Common Stock  | Additional |            | Surplus       | Deferred    | Treasury | Total         |
|----------------------------------------------|---------------|------------|-----------------|---------------|-------------|----------|---------------|
|                                         | No. of Shares | Amount     | Paid-in Capital | (Deficit)     | Receivables | Charges  | Stock         | (Audited) |
| Balance at December 31, 2008                 | 32,309,209    | 32,310     | 17,371,500      | $(17,653,240) | $(300,000)  | -        | $(130,551)    | $(679,982) |
| Cancellation of subscription receivable      | -             |       | (300,000)       |          | 300,000     |     |          | - |
| Stock Option Based Compensation              | -             |       | 728,091         |          |        |     |          | 728,091 |
| Exercise of Stock Options                    | 207,036       | 207        | 61,904          |          |        |     |     | 62,111 |
| Shares issued for consulting services        | 2,346,281     | 2,346      | 1,016,351       |          |        |     |          | 1,018,697 |
| Shares issued for employment services        | 2,000,000     | 2,000      | 1,018,000       |          |        |     |          | 1,020,000 |
| Shares sold in 2009                          | 186,586       | 187        | 104,813         |          |        |     |          | 105,000 |
| Cancellation of related party liabilities    | -             | -          | 227,563         |          |        |     |          | 227,563 |
| Reduction of paid in capital from subsidiary | -             | -          | (135,000)       |          |        |     |          | (135,000) |
| Cancellation of shares                       | (120,000)     | (120)      | 120             |          |        |     |          | - |
| Net loss for the year ended Dec 31, 2009     | -             | -          | -               | (3,793,804)   | -           | -        | -             | (3,793,804) |
| Balance at December 31, 2009                 | 36,929,112    | $36,929    | $20,093,341     | $(21,447,044) | -           | -        | $(130,551)    | $(1,447,324) |

| Stock Option Based Compensation               |       |    | 380,435     |          |   |   |       | 380,435    |   |
|-----------------------------------------------|------------|---------|-------------|---------------|--------|--------|------------|------------|--------|
| Shares issued for consulting services         | 4,995,000  | 4,995   | 2,509,755   |          |   |   |       | 2,514,750  |   |
| Preferred shares issued                       | 1,701,333  | 1,701   | 763,999     |          |   |   |       | 765,600    |   |
| Shares issued in connection with Acquisitions | 2,252,120  | 2,252   | 2,078,725   |          |   |   |       | 2,080,977  |   |
| Shares issued for employment services         | 20,000     | 20      | 21,980      |          |   |   |       | 22,000     |   |
| Shares issued in financing activities         | 1,687,501  | 1,688   | 1,251,118   |          |   |   |       | 1,252,875  |   |
| Net Gain for the year ended Dec 31, 2010      | -          | -       | -           | 202,675       | -      | -      | -          | 202,675    |   |
| Balance at December 31, 2009                  | 47,585,066 | $47,585 | $27,099,323 | $(21,224,369) | -      | -      | $(130,551) | $5,771,987 |   |
|                                          |       |    |        |          |   |   |       |       |

----

| MEDLINK INTERNATIONAL INC.CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009              |                                  |
|----------------------------------------------------------------------------------------------------------------------------|---------------------------------------|
|                                                                                                                       | For the years ended December 31, |
|                                                                                                                       | 2010 (unaudited)                      | 2009 (audited) |
| Cash flows from operating activities:                                                                                      |                                  |   |
| Net gain/(loss)                                                                                                            | $202,675                              | $(3,793,804) |
| Income (loss) from discontinued operations                                                                                 | -                                     | 47,361 |
| Gain/(loss) from continuing operations                                                                                     | 202,675                               | $(3,841,165) |
| Adjustments to reconcile net gain to net cash used in operating activities                                                 |                                  |   |
|      Impairment of goodwill                                                                       | -                                     | 904,396 |
|      Depreciation                                                                                 | 185,812                               | 65,202 |
|      Increase in deferred charges                                                                 |                                  |   |
| Amortization                                                                                                               |                                  | 1,088 |
| Amortization of deferred charges                                                                                           | -                                     | - |
|  Issuance of common stock                                                                                             |                                  |   |
|      Share based compensation                                                                     | 402,435                               | 728,091 |
|      Issuance of common stock for salary                                                          | 22,000                                | 1,020,000 |
|          Issuance of common stock for acquisitions                            | 1,640,977                             | - |
|      Issuance of common stock for financing                                                       | 252,876                               |   |
| Issuance of common shares for consulting and other services                                                                | 2,395,750                             | 1,018,697 |
| Issuance of common stock for legal fees                                                                                    | 119,000                               |   |
| Conversion of options in lieu of payment of related party loan                                                             |                                  | 62,111 |
| Related party payables reclassified to additional paid in capital                                                          |                                  | 227,563 |
|  Changes in operating assets and liabilities                                                                          |                                  |   |
| Accounts receivables                                                                                                       | (4,077,940)                           | (268,615) |
| Security deposit                                                                                                           | (6,000)                               | (7,550) |
| Other assets                                                                                                               | (1,316,292)                           | - |
| Intangible assets                                                                                                          | (1,871,762)                           |   |
| Accounts Payable and accrued liabilities                                                                                   | 373,919                               | (258,234) |
| Net cash used in continuing operating activities                                                                           | (6,898,075)                           | (301,055) |
| Net cash provided by discontinued operations                                                                               |                                  | 301,778 |
| Net cash used in operating activities                                                                                      | (1,698,550)                           | 723 |
|  Cash flows from investing activities:                                                                                |                                  |   |
| Purchase of fixed assets                                                                                                   | (137,340)                             | (73,470) |
| Purchase of intangible assets                                                                                              | (268,028)                             |   |
| Goodwill                                                                                                                   | (1,476,832)                           |   |
| Net cash used in investing activities                                                                                      | (1,882,200)                           | (73,470) |
| Cash flows from financing activities:                                                                                      |                                  |   |
| Proceeds from sale of stock                                                                                                | 1,765,600                             | 105,000 |
| Proceeds from loan payable                                                                                                 | 2,609,022                             | - |
| Advances from (to) officer/shareholders                                                                                    | (141,121)                             | (576) |
| Net cash provided by financing activities                                                                                  | 4,233,201                             | 104,424 |
| NET INCREASE (DECREASE) IN CASH                                                                                            | 652,451                               | 31,677 |
| CASH AT BEGINNING OF YEAR                                                                                                  | 4,843                                 | (26,834) |
| CASH AT END OF PERIOD                                                                                                      | $657,294                              | $4,843 |
| MEDLINK INTERNATIONAL, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 |                                  |
|                                                                                                                       | For the years ended                   |   |   |
|                                                                                                                       | December 31,                          |   |   |
|                                                                                                                       | 2010(unaudited)                       | 2009(Audited) |   |   |
|  Supplemental disclosure of cash flow information:                                                                    |                                  |   |   |   |
| Cash paid during the year for interest                                                                                     | -                                     | - |   |   |
| Cash paid for taxes                                                                                                        | -                                     | - |   |   |
| Supplemental disclosure of non-cash financing activities                                                                   |                                  |   |   |   |
| Share based compensation                                                                                                   | 402,435                               | 728,091 |   |   |
| Issuance of common stock for salary                                                                                        | 22,000                                | 1,020,000 |   |   |
| Issuance of common shares for consulting and other services                                                                | 2,514,750                             | 1,018,697 |   |   |
| Conversion of options in lieu of payment of related party loan                                                             | -                                     | 62,111 |   |   |
| Issuance of common stock for legal fees                                                                                    | 119,000                               | - |   |   |
| Related party accounts payable reclassified to add. paid in capital                                                        |                                  | 227,563 |   |   |

|                                                | For the years ended |
|-----------------------------------------------------|---------------------|
|                                                | December 31,        |
|                                                | 2010(unaudited)     | 2009(Audited) |
| Supplemental disclosures of cash flows information: |                |   |
|   Cash paid during the year for:          |                |   |
| Interest                                            | $0                  | $0 |
| Income Taxes                                        | $0                  | $1,700 |
|                                                |                |   |

----

| MEDLINK INTERNATIONAL, INC.NOTES TO CONSOLIDATED STATEMENTS |
|-------------------------------------------------------------|

----

| MEDLINK INTERNATIONAL, INC.NOTES TO CONSOLIDATED STATEMENTS |
|-------------------------------------------------------------|

----

| MEDLINK INTERNATIONAL, INC.NOTES TO CONSOLIDATED STATEMENTS |
|-------------------------------------------------------------|

----

| MEDLINK INTERNATIONAL, INC.NOTES TO CONSOLIDATED STATEMENTS |
|-------------------------------------------------------------|

----

| MEDLINK INTERNATIONAL, INC.NOTES TO CONSOLIDATED STATEMENTS |
|-------------------------------------------------------------|

|                          |   | Estimated Useful |   |   | 2010   |   |    | 2009   |   |
|-------------------------------|--------|------------------|--------|--------|--------|--------|---------|--------|--------|
|                          |   | life (years)     |   |   | Amount |   |    | Amount |   |
| Furniture and fixtures        |   |             | 5      |   |   |   | 85,128  |   |   | $ | 85,128 |   |
| Leasehold improvements        |   |             | 3      |   |   |   | 13,666  |   |   |   | 11,073 |   |
| Equipment                     |   |             | 5      |   |   |   | 341,380 |   |   |   | 270,042 |   |
|                          |   |             |   |   |   |   | 440,174 |   |   |   | 366,243 |   |
| Less accumulated depreciation |   |             |   |   |   |   | 235,824 |   |   |   | 118,215 |   |
|                          |   |             |   |   |   | $      | 204,350 |   |   | $ | 170,337 |   |

----

| MEDLINK INTERNATIONAL, INC.NOTES TO CONSOLIDATED STATEMENTS |
|-------------------------------------------------------------|

----

| MEDLINK INTERNATIONAL, INC.NOTES TO CONSOLIDATED STATEMENTS |
|-------------------------------------------------------------|

|                        |   |                                |       |
|-----------------------------|--------|-------------------------------------|------------|
| Quarterly Interest Payments |   | Quarterly Interest Amount |       |
| March 1, 2011               |   | $                                   | 33,218.86  |   |
| June 1, 2011                |   | $                                   | 31,164.09  |   |
| September 1, 2011           |   | $                                   | 31,164.09  |   |
| December 1, 2011            |   | $                                   | 30,821.63  |   |
| March 1, 2012               |   | $                                   | 30,821.63  |   |
| May 26, 2012                |   | $                                   | 28,766.85  |   |
| Total Interest Payments     |   | $                                   | 185,957.14 |   |

----

|  MEDLINK INTERNATIONAL, INC.NOTES TO CONSOLIDATED STATEMENTS |
|-------------------------------------------------------------------|

| Payment Due Date |   | Interest Payment |       |   | Principal Payment |   |
|------------------|--------|------------------|------------|--------|-------------------|--------|
| 3/1/2011         |   | $                | 33,218.86  |   |              |   |   |
| 6/1/2011         |   | $                | 31,164.09  |   |              |   |   |
| 9/1/2011         |   | $                | 31,164.09  |   |              | $      | 69,444.44 |   |
| 10/1/2011        |   |             |       |   |              | $      | 69,444.44 |   |
| 11/1/2011        |   |             |       |   |              | $      | 69,444.44 |   |
| 12/1/2011        |   | $                | 30,821.63  |   |              | $      | 69,444.44 |   |
| 1/1/2012         |   |             |       |   |              | $      | 69,444.44 |   |
| 2/1/2012         |   |             |       |   |              | $      | 69,444.44 |   |
| 3/1/2012         |   | $                | 30,821.63  |   |              | $      | 69,444.44 |   |
| 4/1/2012         |   |             |       |   |              | $      | 69,444.44 |   |
| 5/1/2012         |   |             |       |   |              | $      | 69,444.44 |   |
| 5/24/2012        |   | $                | 28,766.85  |   |              |   | 625,000.00 |   |
|  2011 Total |   | $                | 126,368.66 |   |              | $      | 277,778.78 |   |
| 2012 Total       |   | $                | 59,588.48  |   |              | $      | 972,222.22 |   |
| Total            |   | $                | 185,957.14 |   |              | $      | 1,250,000 |   |

| 2011   |   | $ | 145,697 |   |
|--------|--------|---|---------|--------|
| 2012   |   | $ | 160,648 |   |
| 2013   |   | $ | 167,773 |   |
| 2014   |   | $ | 94,738  |   |
| 2015   |   | $ | 82,751  |   |
| Total: |   | $ | 651,608 |   |

----

| MEDLINK INTERNATIONAL, INC.NOTES TO CONSOLIDATED STATEMENTS |
|-------------------------------------------------------------|

| Year ended December 31, |   |   |   |
|-------------------------|--------|--------|--------|
| 2011                    |   | $      | 84,486 |   |
| 2012                    |   | $      | 88,184 |   |
| 2013                    |   | $      | 91,880 |   |
| 2014                    |   | $      | 15,416 |   |

| Year ended December 31, |   |   |   |
|-------------------------|--------|--------|--------|
| 2011                    |   | $      | 62,211 |   |
| 2012                    |   | $      | 72,464 |   |
| 2013                    |   | $      | 75,893 |   |
| 2014                    |   | $      | 79,322 |   |
| 2015                    |   | $      | 82,751 |   |

----

| MEDLINK INTERNATIONAL, INC.NOTES TO CONSOLIDATED STATEMENTS |
|-------------------------------------------------------------|

| Stock-based compensation:                                                 |   | 2010   |   |   | 2009   |   |
|---------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| MedLink Employee, officers and directors stock-based compensation expense |   | $      | 22,000 |   |   |   | 1,020,000 |   |
| Total stock-based compensation                                            |   |   | 20,000 |   |   |   | 2,000,000 |   |

----

| MEDLINK INTERNATIONAL, INC.NOTES TO CONSOLIDATED STATEMENTS |
|-------------------------------------------------------------|

| Consultant stock-based compensation:        |   | 2010      | 2009      |
|---------------------------------------------|--------|-----------|-----------|
| Consultant stock-based compensation expense | $      | 1,637,329 | 1,030,488 |
| Total stock-based compensation              |   | 4,920,000 | 2,346,281 |

----

| MEDLINK INTERNATIONAL, INC.NOTES TO CONSOLIDATED STATEMENTS |
|-------------------------------------------------------------|

|                                     |       | Weighted Average | Weighted AverageRemaining | Aggregate                              |
|------------------------------------------|------------|------------------|---------------------------|----------------------------------------|
|                                     | Shares     | Exercise Price   | Contractuallife in years  | Intrinsic    Value |
| Options outstanding at December 31, 2008 | 2,155,000  | $0.55            | 5.9                       | $1,031,150                             |
| Granted                                  | 4,200,000  | $0.51            | 5                         | $2,142,000                             |
| Canceled/Forfeited                       | -          | -                | -                         | -                                      |
| Exercised                                | 207,036    | $0.30            |                      | $(62,111)                              |
| Option outstanding at December 31, 2009  | 6,147,,964 | $0.53            |                      | $3,111,039                             |
| Granted                                  | 9,049,857  | $0.99            | 4                         | $0.00                                  |
| Canceled/Forfeited                       | -          | -                | -                         | -                                      |
| Exercised                                | -          | -                | -                         | -                                      |
| Option outstanding at December 31, 2010  | 15,402,821 | $0.80            | 4                         | $3,080,564                             |

----

| MEDLINK INTERNATIONAL, INC.NOTES TO CONSOLIDATED STATEMENTS |
|-------------------------------------------------------------|

| 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               | 1,360,000   | 4.2              | $0.30               | 1,360,000 | $0.30 |
| $0.85               | 1,000,000   | 8.2              | $0.85               | $1,000,000 | $0.85 |
| $0.51               | 4,200,000   | 5                | $0.51               | 4,200,000 | $0.51 |
| $0.37               | 4,000,000   | 7                | $0.37               | - | - |
| $1.05               | 1,701,333   | 1                | $1.05               | 1,701,333 | $1.05 |
| $0.60               | 100,000     | 3                | $0.60               | - | - |
| $1.26               | 100,000     | 3                | $1.26               | - | - |
| $1.50               | 645,000     | 3                | $1.50               | 645,000 | $1.50 |
| $2.00               | 645,000     | 3                | $2.00               | 645,000 | $2.00 |
| $1.50               | 809,262     | 5                | $1.50               | 809,262 | $1.50 |
| $2.00               | 645,000     | 5                | $2.00               | 645,000 | $2.00 |

|                                          |   | 2010   |   |   | 2009   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|
| Current:                                      |   |   |   |   |   |   |
| Federal and state                             |   | $      | 81,070 |   |   | $      | 0 |   |
| Deferred:                                     |   |   |   |   |   |   |   |   |
| Federal and state                             |   | $      | 81,070 |   |   | $      | (1,746,308 | ) |
| Benefit from the operating loss carry forward |   | $      | 81,070 |   |   | $      | 1,746,308 |   |
| Benefit for income taxes, net                 |   | $      | 0      |   |   | $      | 0 |   |

|                              |   | 2010   |   |   | 2009   |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|
| 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 | )% |

----

| MEDLINK INTERNATIONAL, INC.NOTES TO CONSOLIDATED STATEMENTS |
|-------------------------------------------------------------|

----

----

|   |   | 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 internal controls.Implementation Plan: The board of directors intends to pass a resolution to adopt the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Framework which provides for a structure to establish a control environment, risk assessment, control activities, information and communication, and monitoring of effective internal controls. The board also intends that the Chief Executive Officer shall be made to take ultimate ownership of establishing an effective internal control system.  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | Weakness: The Company lacks a comprehensive Code of Ethics that is applicable to the entire Company including officers, employees, and directors.Implementation Plan: The Company intends to adopt a formal Code of Ethics that will communicated to all personnel at all levels of the organization, and that senior management will be held to a standard that they will be responsible to encourage an environment that promotes ethical behavior and discourages both the necessity of, and the opportunities to act unethically.  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | 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.Implementation Plan: Management intends to prepare a guideline that the board of directors will review and adopt.  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | Weakness: The Company accounting department is currently understaffed and lacks personnel with expertise in US GAAP and SEC reporting standards.Implementation Plan: The Company is currently in the hiring process for staff accountants to fulfill the demands and rigors of being a US public reporting company. The Company will also provide training to existing employees on the requirements of US GAAP and SEC Reporting standards.  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | Weakness: The Company does not have an internal audit function and department.Implementation Plan: The Company will establish an internal audit 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.Implementation Plan: The Company reviewed its current ERP systems and consider the need to either purchase a new package or revise the functionality and deployment of its current systems.  As of December 31, 2010, the Company had begun the implementation of an ERP systems that will meet the growing needs of the Company.   The Company expects that a system will be fully implemented by the end of the 2nd quarter of 2011.  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Item 10.Directors, Executive Officers, and Corporate Governance |
|--------|-----------------------------------------------------------------|

| Name              | Age | Position                                                     | Director or Officer Since |
|-------------------|-----|--------------------------------------------------------------|---------------------------|
| Ray Vuono         | 45  | Chief Executive Officer, President and Chairman of the Board | January 1, 2004           |
| Konrad Kim        | 39  | Chief Technology Officer and Director                        | October 1, 2000           |
| Dr. Michael Carvo | 58  | Director                                                     | January 1, 2002           |
| James Rose        | 32  | 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)          | 2010 | $150,000 | $0 | $0 | - | 2,000,000 |   |   |
|                        | 2009 | $0 | $0 | $0 | 955,882 | 2,000,000 | - | - |
| Jameson Rose, CFO (2)       | 2010 | $135,000 | $0 | $0 | - | 1,500,000 |   |   |
|                        | 2009 | $0 | $0 | $0 | 808,824 | 1,500,000 |   |   |
| Konrad Kim, CTO (3)         | 2010 | $65,000 | $0 | $0 | - | 500,000 |   |   |
|                        | 2009 | $0 | $0 | $0 | 235,294 | 500,000 | - | - |

----

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

|  Title of Class                        |  Name & Address of Beneficial Owner              | Amount and Nature of Beneficial Ownership |  Percent of Class |
|---------------------------------------------|-----------------------------------------------------------|-------------------------------------------|------------------------|
| $.001 par value per shareClass A common (1) | James Rose1 Roebling CourtRonkonkoma, NY 11779            | 8,242,941                                 | 14.30%                 |
| $.001 par value per shareClass A common (2) | Steven Antebi10550 Fontenelle WayLos Angeles, CA 90077    | 6,302,666                                 | 10.94%                 |
| $.001 par value per shareClass A common     | Calstam Group Trust1225 Franklin AveGarden City, NY 11530 | 5,913,560                                 | 10.26%                 |
| $.001 par value per shareClass A common(3)  | Ray Vuono1 Roebling CourtRonkonkoma, NY 11779             | 4,752,964                                 | 8.25%                  |
| $.001 par value per shareClass A common     | Jerry Bermensolo1087 W. River St, Suite 280Boise ID 83702 | 3,169,778                                 | 5.50%                  |
| $.001 par value per shareClass A common(4)  | Konrad Kim1 Roebling CourtRonkonkoma, NY 11779            | 2,351,764                                 | 4.08%                  |
| $.001 par value per shareClass A common     | Dr. Michael Carvo1 Roebling CourtRonkonkoma, NY 11779     | 472,676                                   | 0.82%                  |
| All officer and directors as a group        | 15,820,345                                                | 27.44%                                    |

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

|                   |   | 2010   |   |   | 2009   |   |
|------------------------|--------|--------|--------|--------|--------|--------|
| Audit Related Fees     |   | $      | 54,500 |   |   | $      | 36,000 |   |
| Tax Fees               |   | $      | 3,500  |   |   | $      | 1,500 |   |
| All Other Fees         |   |   |   |   |   |   |   |   |
| Out of Pocket Expenses |   |   |   |   |   |   |   |   |
| Total:                 |   | $      | 58,000 |   |   | $      | 37,500 |   |

----

| SEC Ref. No. |   | Title of Document                                                                                                                                                                       |
|--------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1          |   | Amended of Articles of Incorporation (1)                                                                                                                                                |
| 3.2          |   | Bylaws (1)                                                                                                                                                                              |
| 21.1         |   | Subsidiaries of the Registrant (Filed herewith)                                                                                                                                         |
| 23.1         |   | Consent of Independent Auditor (Filed herewith)                                                                                                                                         |
| 31.1         |   | Certification of Ray Vuono 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)               |
| 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) |
| 32.1         |   | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Filed herewith)                                                |
| 32.2         |   | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (Filed herewith)                                                |

----

| By:    | /s/ RAY VUONO                    |
|--------|----------------------------------|
|   | Ray VuonoChief Executive Officer |

|            | Signature                 |   | Title                                                                                 |
|-----------------|---------------------------|--------|---------------------------------------------------------------------------------------|
|   By: |   /s/ RAY VUONO |   |  Chairman of the Board and Chief Executive Officer (Principal Executive Officer) |   |
|            | Ray Vuono                 |   |                                                                                  |   |
|            |                      |   |                                                                                  |   |
| By:             | /s/ JAMESON ROSE          |   | Chief Financial Officer (Principal Financial Officer)                                 |   |
|            | Jameson Rose              |   |                                                                                  |   |
|            |                      |   |                                                                                  |   |
| By:             | /s/ MICHAEL CARVO         |   | Director                                                                              |   |
|            | Michael Carvo             |   |                                                                                  |   |
|            |                      |   |                                                                                  |   |
| By:             | /s/ KONRAD KIM            |   | Director                                                                              |   |
|            | Konrad Kim                |   |                                                                                  |   |

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