UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


WASHINGTON,
D.C. 20549







FORM
10-Q







(Mark
One)


x
            QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934




For
the quarterly period ended June 30, 2010




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




For
the transition period from 
to





Commission
File Number 333-144596





MEDICAL DESIGN STUDIOS,
INC.


(Exact
Name of Registrant as Specified in Its Charter)





Nevada
            
            26-0482524(State
      or Other Jurisdiction of
              Incorporation
      or Organization)
            
            (I.R.S.
      Employer
              Identification
      No.)7231
      South Rome Street, Aurora, Colorado
            
            80016(Address
      of Principal Executive Offices)
            
            (Zip
      Code)




(303)
      956-7197(Registrant’s
      Telephone Number, Including Area Code)_________________________________________________________
              (Former
      Name, Former Address and Former Fiscal Year,
              if
      Changed Since Last Report)





Indicate  by
check mark whether the registrant: (1) has filed all reports required to
be  filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12  months (or  for
such  shorter  period  that  the  registrant  was
required to file such reports), and  (2) has  been subject
to such filing requirements for the past 90 days.


Yes x    No  ̈





Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files).


Yes  ̈    No  ̈ (not
required)





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting
company.  See the definitions of “large accelerated filer,”
“accelerated filer” and “smaller reporting company” in Rule 12b-2 of the
Exchange Act. (Check one):






Large accelerated
      filer o
            Accelerated
      filer  oNon-accelerated
      filer o
            Smaller reporting
      company  x




Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).


Yes x    No o




As of
August 13, 2010, 7,142,858 shares of the issuer’s common stock were
outstanding.







MEDICAL
DESIGN STUDIOS, INC.





FORM
10-Q




June
30, 2010




INDEX




PagePART I-- FINANCIAL
      INFORMATIONItem
      1.
            Financial
      Statements
            2Item
      2.
            Management’s
      Discussion and Analysis of Financial Condition and Results of
      Operations
            17Item
      3.
            Quantitative
      and Qualitative Disclosures About Market Risk
            22Item
      4.
            Controls
      and Procedures
            23PART II-- OTHER
      INFORMATION




Item
      1.
            Legal
      Proceedings
            24Item
      1A.
            Risk
      Factors
            24Item
      2.
            Unregistered
      Sales of Equity Securities and Use of Proceeds
            24Item
      3.
            Defaults
      Upon Senior Securities
            24Item
      4.
            Reserved
            24Item
      5.
            Other
      Information
            24Item
      6.
            Exhibits
            24Signatures
            25





1


PART
I - FINANCIAL INFORMATION
 
 ITEM
1. FINANCIAL STATEMENTS
 
 MEDICAL
DESIGN STUDIOS, INC.
 Balance
Sheets
 
 ASSETSJune
      30,
                2010
              
              
              December
      31,
                2009Current
      Assets:
              
              (Unaudited)Cash
              
              $
              2,075
              
              
              $
              -Assets
      of discontinued operations
              
              
              22,245
              
              
              
              9,125Total
      current assets
              
              
              24,320
              
              
              
              9,125Assets
      of discontinued operations – equipment, net
              
              
              5,909
              
              
              
              9,323TOTAL
      ASSETS
              
              $
              30,229
              
              
              $
              18,448LIABILITIES
      AND STOCKHOLDERS’ EQUITYCurrent
      LiabilitiesAccrued
      expenses
              
              $
              1,938
              
              
              $
              17,561Stockholders’
      Equity:Preferred
      stock: $0.001 par value; 1,000,000 shares authorized; no shares issued or
      outstanding
              
              
              -
              
              
              
              -Common
      stock: $0.001 par value; 74,000,000 shares authorized; 7,142,946 shares
      issued and outstanding
              
              
              7,143
              
              
              
              7,143Additional
      paid-in capital
              
              
              114,812
              
              
              
              87,312Accumulated
      deficit
              
              
              (93,664
              )
              
              
              (93,568
              )Total
      stockholders’ equity
              
              
              28,291
              
              
              
              887TOTAL
      LIABILITIES AND STOCKHOLDERS’ EQUITY
              
              $
              30,229
              
              
              $
              18,448
  See
      accompanying notes to financial
statements.
  2
  MEDICAL
DESIGN STUDIOS, INC.
 
 Statements
of Operations
 
 (Unaudited)
 
 Three
      Months Ended
                June
      30,2010
              
              
              2009Revenue
              
              $
              -
              
              
              $
              -Operating
      Expenses:Selling,
      general and administrative
              
              
              839
              
              
              
              -Professional
      fees
              
              
              3,718
              
              
              
              -Total
      operating expenses
              
              
              4,557
              
              
              
              -Loss
      from continuing operationsbefore
      income taxes
              
              
              (4,557
              )
              
              
              -Provision
      for income taxes
              
              
              -
              
              
              
              -Loss
      from continuing operations
              
              
              (4,557
              )
              
              
              -Discontinued
      operationsIncome
      from discontinuedoperations
              
              
              5,893
              
              
              
              10,355Income
      from discontinuedoperations
              
              
              5,893
              
              
              
              10,355Net
      income
              
              $
              1,336
              
              
              $
              10,355Net
      income (loss) per share - basic and dilutedContinuing
      operations
              
              $
              (0.00
              )
              
              $
              0.00Discontinued
      operations
              
              
              0.00
              
              
              
              0.00$
              0.00
              
              
              $
              0.00Weighted
      average number of common shares outstanding – basic and
      diluted
              
              
              7,142,946
              
              
              
              7,142,946
  See
      accompanying notes to the financial
statements.
 
 3
  MEDICAL
DESIGN STUDIOS, INC.
 
 Statements
of Operations
 
 (Unaudited)
 
 Six
      Months Ended
                June
      30,2010
              
              
              2009Revenue
              
              $
              -
              
              
              $
              -Operating
      Expenses:Selling,
      general and administrative
              
              
              839
              
              
              
              -Professional
      fees
              
              
              5,218Total
      operating expenses
              
              
              6,057
              
              
              
              -Loss
      from continuing operationsbefore
      income taxes
              
              
              (6,057
              )
              
              
              -Provision
      for income taxes
              
              
              -
              
              
              
              -Loss
      from continuing operations
              
              
              (6,057
              )
              
              
              -Discontinued
      operationsIncome
      from discontinuedoperations
              
              
              5,961
              
              
              
              10,763Income
      from discontinuedoperations
              
              
              5,961
              
              
              
              10,763Net
      income (loss)
              
              $
              (96
              )
              
              $
              10,763Net
      income (loss) per share – basic and dilutedContinuing
      operations
              
              $
              (0.00
              )
              
              $
              0.00Discontinued
      operations
              
              
              0.00
              
              
              
              0.00$
              (0.00
              )
              
              $
              0.00Weighted
      average number of common shares outstanding – basic and
      diluted
              
              
              7,142,946
              
              
              
              7,142,946
  See
      accompanying notes to the financial
statements.
 
 4
  MEDICAL
DESIGN STUDIOS, INC.
 
 Statements
of Cash Flows
 
 (Unaudited)
 
 Six
      Months Ended
                June
      30,2010
              
              
              2009CASH
      FLOWS FROM OPERATING ACTIVITIES:Net
      income (loss)
              
              $
              (96
              )
              
              $
              10,763Depreciation
              
              
              3,414
              
              
              
              3,541Recovery
      of bad debt
              
              
              -
              
              
              
              (10,000
              )Adjustments
      to reconcile net income (loss) to net cash used in operating
      activities:Increase
      in accounts receivable
              
              
              (13,120
              )
              
              
              (6,650
              )Increase
      (decrease) in accrued expenses
              
              
              (15,623
              )
              
              
              2,346Net
      Cash Used in Operating Activities
              
              
              (25,425
              )
              
              
              -CASH
      FLOWS FROM INVESTING ACTIVITIESCash
      included in assets of discontinued operations
              
              
              (100
              )
              
              
              (39,766
              )Net
      Cash Used in Investing Activities
              
              
              (100
              )
              
              
              (39,766
              )CASH
      FLOWS FROM FINANCING ACTIVITIESContribution
      to capital
              
              
              27,500
              
              
              
              35,000Net
      Cash Provided by Financing Activities
              
              
              27,500
              
              
              
              35,000CHANGE
      IN CASH
              
              
              1,975
              
              
              
              (4,766
              )CASH
      AT BEGINNING OF PERIOD
              
              
              100
              
              
              
              4,766CASH
      AT END OF PERIOD
              
              $
              2,075
              
              
              $
              -See
      accompanying notes to the financial statements.
 
 5
  MEDICAL
DESIGN STUDIOS, INC.
 
 June
30, 2010 and 2009
 
 Notes
to Financial Statements
 
 (Unaudited)
 
 NOTE
1 ORGANIZATION
 
 Medical
Design Studios, Inc. (“MDS” or the “Company”) was founded as an unincorporated
business in January 2004 and became a C corporation in the State of Nevada on
February 1, 2005. The Company is a digital medical illustrator and animator
providing digital displays and enhancements to companies that assist attorneys
to prepare or enhance exhibits for trials involving medical issues. The Company
applied 505-10-S99-3 of the FASB Accounting Standards Codification, by
reclassifying all of the Company’s undistributed earnings and losses to
additional paid-in capital as of December 31, 2004 and the Company was inactive
for the month ended January 2005.  The accompanying financial
statements have been prepared as if the Company had its corporate capital
structure as of the first date of the first period presented.
 
 The
acquisition of Medical Design Studios (“Predecessor”) by Medical Design Studios,
Inc. (“MDS”) has been accounted for as a reverse acquisition for financial
accounting purposes. The reverse merger is deemed a capital transaction and the
net assets of Predecessor (the accounting acquirer) are carried forward to MDS
(the legal acquirer and the reporting entity) at their carrying value before the
combination. The acquisition process utilizes the capital structure of MDS and
the assets and liabilities of Predecessor which are recorded at historical cost.
Since MDS had no operations prior to the reverse merger, the financial
statements of Predecessor and MDS are being combined for the period from January
1, 2004 through February 1, 2005. The equity of MDS is the historical equity of
Predecessor retroactively restated to reflect the number of shares issued by MDS
in the transaction.
 
 On March 14, 2008, Justin N. Craig, the
Company’s President and Chief Executive Officer, privately sold 6,528,572 shares
of the Company’s common stock, constituting 91.4% of the Company’s outstanding
shares and all of the shares owned beneficially by him, to Vision Opportunity
Master Fund, Ltd. Certain other of the Company’s stockholders also sold shares
of the Company’s common stock to Vision Opportunity Master Fund. As a result of
these privately-negotiated sales, a change in control occurred from Mr. Craig to
Vision Opportunity Master Fund.
  On March 17, 2008, pursuant to prior
approvals by stockholders owning in excess of a majority of the voting power of
the Company’s outstanding shares, the Company effected a 2-for-1 reverse stock
split of the Company’s outstanding shares of common stock.
  6
  After giving effect to the
privately-negotiated transactions described above, Vision Opportunity Master
Fund owns 6,742,858 shares of the Company’s common stock, or 94.4% of the
Company’s outstanding shares. Vision Opportunity Master Fund purchased these
shares for approximately $670,000 in cash, inclusive of related acquisition
costs. The source of the funding for the cash payment was the general working
capital of Vision Opportunity Master Fund.
  The terms of the purchase and sale
transactions were as a result of arm’s-length negotiations between the parties.
None of the parties had any relationship with one another prior to this
transaction.
  The Company’s officers and directors,
and the business focus of the company, were not changed in connection with the
purchase and sale transactions.
 
 NOTE
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
 Basis
of Presentation
 
 The
accompanying unaudited interim consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in the
United States of America (“U.S. GAAP”) for interim financial information
and with the rules and regulations of the United States Securities and Exchange
Commission (“SEC”) to Form 10 and Article 8 of Regulation S-X.
 Accordingly, they do not include all of the information and footnotes
required by U.S. GAAP for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. The results of operations
realized during an interim period are not necessarily indicative of results to
be expected for a full year. These financial statements should be read in
conjunction with the financial statements of the Company for the year
ended December 31, 2009 and notes thereto contained in the Company’s Annual
Report Form 10-K as filed with the SEC on March 31, 2010.
 
 Use
of estimates
 
 The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements as well as the reported amount of revenues and expenses during the
reporting period. Actual results could differ from these estimates.
 
 Reclassifications
 
 Certain
amounts in the prior period financial statements have been reclassified to
conform to the current period presentation. These reclassifications had no
effect on reported losses.
  7
 
 Cash
Equivalents
  The
Company considers all highly liquid investments with maturities of three months
or less at the time of purchase to be cash equivalents.
 
 Accounts
Receivable and Allowance for Doubtful Accounts
 
 Accounts
receivable are recorded at cost. The Company considers the need for an allowance
for doubtful accounts related to its accounts receivables that are deemed to
have a high risk of collectability. Management reviews its accounts receivables
on a monthly basis to determine if any receivables will potentially be
uncollectible. Management analyzes historical collection trends and changes in
its customer payment patterns, customer concentration, and credit worthiness
when evaluating the adequacy of its allowance for doubtful accounts. The Company
includes any receivables balances that are determined to be uncollectible, along
with a general reserve, in its overall allowance for doubtful
accounts.
 
 Equipment
 
 Equipment,
which consists of computers and video equipment, is stated at cost less
accumulated depreciation. Depreciation is calculated on the straight-line basis
over the estimated useful life of three (3) to five (5) years. Depreciation
expense for the periods ended June 30, 2010 and 2009 was $3,414 and $3,541,
respectively.
 
 Impairment
of long-lived assets
  The
Company has adopted paragraph 360-10-35-17 of the FASB Accounting Standards
Codification for its long-lived assets. The Company’s long-lived assets, which
include equipment, are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be
recoverable.
  The
Company assesses the recoverability of its long-lived assets by comparing the
projected undiscounted net cash flows associated with the related long-lived
asset or group of long-lived assets over their remaining estimated useful lives
against their respective carrying amounts. Impairment, if any, is based on the
excess of the carrying amount over the fair value of those assets. Fair value is
generally determined using the asset’s expected future discounted cash flows or
market value, if readily determinable. If long-lived assets are determined to be
recoverable, but the newly determined remaining estimated useful lives are
shorter than originally estimated, the net book values of the long-lived assets
are depreciated over the newly determined remaining estimated useful
lives.
  The
Company determined that there were no impairments of long-lived assets as of
June 30, 2010 or 2009.
  8
 
 Fair
Value of Financial Instruments
 
 The
Company follows paragraph 825-10-50-10 of the FASB Accounting Standards
Codification for disclosures about fair value of its financial instruments and
has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification
(“Paragraph 820-10-35-37”) to measure the fair value of its financial
instruments.  Paragraph 820-10-35-37 establishes a framework for
measuring fair value in accounting principles generally accepted in the United
States of America (U.S. GAAP), and expands disclosures about fair value
measurements. To increase consistency and comparability in fair value
measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair
value hierarchy which prioritizes the inputs to valuation techniques used to
measure fair value into three (3) broad levels.  The fair value
hierarchy gives the highest priority to quoted prices (unadjusted) in active
markets for identical assets or liabilities and the lowest priority to
unobservable inputs.  The three (3) levels of fair value hierarchy
defined by Paragraph 820-10-35-37 are described below:
 
 Level
      1
              
              Quoted
      market prices available in active markets for identical assets or
      liabilities as of the reporting date.Level
      2
              
              Pricing
      inputs other than quoted prices in active markets included in Level 1,
      which are either directly or indirectly observable as of the reporting
      date.Level
      3
              
              Pricing
      inputs that are generally observable inputs and not corroborated by market
      data.
 
 The
carrying amounts of the Company’s financial assets and liabilities, such as cash
and accrued expenses, approximate their fair values because of the short
maturity of these instruments.
 
 The
Company does not have any assets or liabilities measured at fair value on a
recurring or a non-recurring basis, consequently, the Company did not have any
fair value adjustments for assets and liabilities measured at fair value at June
30, 2010 or December 31, 2009, nor gains or losses are reported in the statement
of operations that are attributable to the change in unrealized gains or losses
relating to those assets and liabilities still held at the reporting date for
the interim period ended June 30, 2010 or 2009.
 
 Revenue
Recognition
 
 The
Company applies paragraph 605-10-S99-1 of the FASB Accounting Standards
Codification for revenue recognition.  The Company recognizes revenue
when it is realized or realizable and earned.  The Company considers
revenue realized or realizable and earned when all of the following criteria are
met: (i) persuasive evidence of an arrangement exists, (ii) the product has been
shipped or the services have been rendered to the customer, (iii) the sales
price is fixed or determinable, and (iv) collectability is reasonably
assured.
  9
 
 Income
Taxes
 
 The
Company accounts for income taxes under Section 740-10-30 of the FASB Accounting
Standards Codification.  Deferred income tax assets and liabilities
are determined based upon differences between the financial reporting and tax
bases of assets and liabilities and are measured using the enacted tax rates and
laws that will be in effect when the differences are expected to
reverse.  Deferred tax assets are reduced by a valuation allowance to
the extent management concludes it is more likely than not that the assets will
not be realized.  Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years in
which those temporary differences are expected to be recovered or settled. The
effect on deferred tax assets and liabilities of a change in tax rates is
recognized in the statements of operations in the period that includes the
enactment date.
 
 The
Company adopted section 740-10-25 of the FASB Accounting Standards Codification
(“Section 740-10-25”).  Section 740-10-25 addresses the determination
of whether tax benefits claimed or expected to be claimed on a tax return should
be recorded in the financial statements.  Under Section 740-10-25, the
Company may recognize the tax benefit from an uncertain tax position only if it
is more likely than not that the tax position will be sustained on examination
by the taxing authorities, based on the technical merits of the
position.  The tax benefits recognized in the financial statements
from such a position should be measured based on the largest benefit that has a
greater than fifty percent (50%) likelihood of being realized upon ultimate
settlement.  Section 740-10-25 also provides guidance on
de-recognition, classification, interest and penalties on income taxes,
accounting in interim periods and requires increased disclosures.  The
Company had no material adjustments to its liabilities for unrecognized income
tax benefits according to the provisions of Section 740-10-25.
 
 Net
income (loss) per common share
 
 Net
income per common share is computed pursuant to section 260-10-45 of the FASB
Accounting Standards Codification.  Basic net income (loss) per common
share is computed by dividing net income (loss) by the weighted average number
of shares of common stock outstanding during the period. Diluted net income
(loss) per common share is computed by dividing net income (loss) by the
weighted average number of shares of common stock and potentially outstanding
shares of common stock during each period. There were no potentially dilutive
shares outstanding as of June 30, 2010 or 2009.
 
 Commitments
and contingencies
 
 The
Company follows subtopic 450-20 of the FASB Accounting Standards Codification to
report accounting for contingencies.  Liabilities for loss
contingencies arising from claims, assessments, litigation, fines and penalties
and other sources are recorded when it is probable that a liability has been
incurred and the amount of the assessment can be reasonably
estimated.
  10
 
 Cash
flows reporting
 
 The
Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards
Codification for cash flows reporting, classifies cash receipts and payments
according to whether they stem from operating, investing, or financing
activities and provides definitions of each category, and uses the indirect or
reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-25
of the FASB Accounting Standards Codification to report net cash flow from
operating activities by adjusting net income to reconcile it to net cash flow
from operating activities by removing the effects of (a) all deferrals of past
operating cash receipts and payments and all accruals of expected future
operating cash receipts and payments and (b) all items that are included in net
income that do not affect operating cash receipts and payments.
 
 Subsequent
events
 
 The
Company follows the guidance in Section 855-10-50 of the FASB Accounting
Standards Codification for the disclosure of subsequent events.The Company will evaluate subsequent events through the
date when the financial statements were issued.  Pursuant to ASU
2010-09 of the FASB Accounting Standards Codification, the Company as an SEC
filer considers its financial statements issued when they are widely distributed
to users, such as through filing them on EDGAR.
 
 Recently
issued accounting standards
 
 In
January 2010, the FASB issued the FASB Accounting Standards Update No.
2010-01 “Equity Topic 505 –
Accounting for Distributions to Shareholders with Components of Stock and
Cash”, which clarifies that the stock portion of a distribution to
shareholders that allows them to elect to receive cash or stock with a potential
limitation on the total amount of cash that all shareholders can elect to
receive in the aggregate is considered a share issuance that is reflected in EPS
prospectively and is not a stock dividend for purposes of applying Topics 505
and 260 (Equity and Earnings Per Share (“EPS”)).  Those distributions
should be accounted for and included in EPS calculations in accordance with
paragraphs 480-10-25- 14 and 260-10-45-45 through 45-47 of the FASB Accounting
Standards codification.  The amendments in this Update also provide a
technical correction to the Accounting Standards Codification.  The
correction moves guidance that was previously included in the Overview and
Background Section to the definition of a stock dividend in the Master
Glossary.  That guidance indicates that a stock dividend takes nothing
from the property of the corporation and adds nothing to the interests of the
stockholders.  It also indicates that the proportional interest of
each shareholder remains the same, and is a key factor to consider in
determining whether a distribution is a stock dividend.
 
 In
January 2010, the FASB issued the FASB Accounting Standards Update No.
2010-02 “Consolidation Topic
810 – Accounting and Reporting for Decreases in Ownership of a Subsidiary – a
Scope Clarification”, which provides amendments to Subtopic 810-10 and
related guidance within U.S. GAAP to clarify that the scope of the decrease in
ownership provisions of the Subtopic and related guidance applies to the
following:
  11
  1.
              A
      subsidiary or group of assets that is a business or nonprofit
      activity
 2.
              A
      subsidiary that is a business or nonprofit activity that is transferred to
      an equity method investee or joint
venture
 3.
              An
      exchange of a group of assets that constitutes a business or nonprofit
      activity for a noncontrolling interest in an entity (including an equity
      method investee or joint venture).
  The
amendments in this Update also clarify that the decrease in ownership guidance
in Subtopic 810-10 does not apply to the following transactions even if they
involve businesses:
  1.
              Sales
      of in substance real estate.  Entities should apply the sale of
      real estate guidance in Subtopics 360-20 (Property, Plant, and Equipment)
      and 976-605 (Retail/Land) to such
transactions.
 2.
              Conveyances
      of oil and gas mineral rights.  Entities should apply the
      mineral property conveyance and related transactions guidance in Subtopic
      932-360 (Oil and Gas-Property, Plant, and Equipment) to such
      transactions.
  If a
decrease in ownership occurs in a subsidiary that is not a business or nonprofit
activity, an entity first needs to consider whether the substance of the
transaction causing the decrease in ownership is addressed in other U.S. GAAP,
such as transfers of financial assets, revenue recognition, exchanges of
nonmonetary assets, sales of in substance real estate, or conveyances of oil and
gas mineral rights, and apply that guidance as applicable. If no other guidance
exists, an entity should apply the guidance in Subtopic 810-10.
 
 In
January 2010, the FASB issued the FASB Accounting Standards Update No.
2010-06 “Fair Value
Measurements and Disclosures (Topic 820) Improving Disclosures about Fair Value
Measurements”, which provides amendments to Subtopic 820-10 that require
new disclosures as follows:
  1.
              Transfers
      in and out of Levels 1 and 2. A reporting entity should disclose
      separately the amounts of significant transfers in and out of Level 1 and
      Level 2 fair value measurements and describe the reasons for the
      transfers.
 2.
              Activity
      in Level 3 fair value measurements. In the reconciliation for fair value
      measurements using significant unobservable inputs (Level 3), a reporting
      entity should present separately information about purchases, sales,
      issuances, and settlements (that is, on a gross basis rather than as one
      net number).
 
 This
Update provides amendments to Subtopic 820-10 that clarify existing disclosures
as follows:
  1.
              Level
      of disaggregation. A reporting entity should provide fair value
      measurement disclosures for each class of assets and liabilities. A class
      is often a subset of assets or liabilities within a line item in the
      statement of financial position. A reporting entity needs to use judgment
      in determining the appropriate classes of assets and
      liabilities.
 2.
              Disclosures
      about inputs and valuation techniques. A reporting entity should provide
      disclosures about the valuation techniques and inputs used to measure fair
      value for both recurring and nonrecurring fair value measurements. Those
      disclosures are required for fair value measurements that fall in either
      Level 2 or Level 3.
  12
  This
Update also includes conforming amendments to the guidance on employers'
disclosures about postretirement benefit plan assets (Subtopic 715-20). The
conforming amendments to Subtopic 715-20 change the terminology from major categoriesof assets to
classesof assets and
provide a cross reference to the guidance in Subtopic 820-10 on how to determine
appropriate classes to present fair value disclosures. The new disclosures and
clarifications of existing disclosures are effective for interim and annual
reporting periods beginning after December 15, 2009, except for the disclosures
about purchases, sales, issuances, and settlements in the roll forward of
activity in Level 3 fair value measurements. Those disclosures are effective for
fiscal years beginning after December 15, 2010, and for interim periods within
those fiscal years.
 
 In
February 2010, the FASB issued the FASB Accounting Standards Update No.
2010-09 “Subsequent Events
(Topic 855) Amendments to Certain Recognition and Disclosure
Requirements”, which provides amendments to Subtopic 855-10 as
follows:
 
 1.
              An
      entity that either (a) is an SEC filer or(b) is a conduit bond obligor for
      conduit debt securities that are traded in a public market (a domestic or
      foreign stock exchange or an over-the-counter market, including local or
      regional markets) is required to evaluate subsequent events through the
      date that the financial statements are issued. If an entity meets neither
      of those criteria, then it should evaluate subsequent events through the
      date the financial statements are available to be
  issued.
 2.
              An
      entity that is an SEC filer is not required to disclose the date through
      which subsequent events have been evaluated. This change alleviates
      potential conflicts between Subtopic 855-10 and the SEC's
      requirements.
 3.
              The
      scope of the reissuance disclosure requirements is refined to include
      revised financial statements only. The term revised financial statementsis added to the glossary of Topic 855. Revised financial statements
      include financial statements revised either as a result of correction of
      an error or retrospective application of U.S. generally accepted
      accounting principles.
 
 All of
the amendments in this Update are effective upon issuance of the final Update,
except for the use of the issued date for conduit debt obligors. That amendment
is effective for interim or annual periods ending after June 15,
2010.
 
 In
April 2010, the FASB issued the FASB Accounting Standards Update No.
2010-17 “Revenue Recognition —
Milestone Method (Topic 605) Milestone Method of Revenue Recognition”,
which provides guidance on the criteria that should be met for determining
whether the milestone method of revenue recognition is appropriate. A vendor can
recognize consideration that is contingent upon achievement of a milestone in
its entirety as revenue in the period in which the milestone is achieved only if
the milestone meets all criteria to be considered substantive.
  13
 
 Determining
whether a milestone is substantive is a matter of judgment made at the inception
of the arrangement. The following criteria must be met for a milestone to be
considered substantive. The consideration earned by achieving the milestone
should:
 
 1.
              Be
      commensurate with either of the
following:
 a.
              The
      vendor's performance to achieve the
milestone
 b.
              The
      enhancement of the value of the item delivered as a result of a specific
      outcome resulting from the vendor's performance to achieve the
      milestone
 2.
              Relate
      solely to past performance
 3.
              Be
      reasonable relative to all deliverables and payment terms in the
      arrangement.
 
 A
milestone should be considered substantive in its entirety. An individual
milestone may not be bifurcated. An arrangement may include more than one
milestone, and each milestone should be evaluated separately to determine
whether the milestone is substantive. Accordingly, an arrangement may contain
both substantive and nonsubstantive milestones.
 
 A
vendor's decision to use the milestone method of revenue recognition for
transactions within the scope of the amendments in this Update is a policy
election. Other proportional revenue recognition methods also may be applied as
long as the application of those other methods does not result in the
recognition of consideration in its entirety in the period the milestone is
achieved.
 
 A vendor
that is affected by the amendments in this Update is required to provide all of
the following disclosures:
 
 1.
              A
      description of the overall
arrangement
 2.
              A
      description of each milestone and related contingent
      consideration
 3.
              A
      determination of whether each milestone is considered
      substantive
 4.
              The
      factors that the entity considered in determining whether the milestone or
      milestones are substantive
 5.
              The
      amount of consideration recognized during the period for the milestone or
      milestones.
 
 The
amendments in this Update are effective on a prospective basis for milestones
achieved in fiscal years, and interim periods within those years, beginning on
or after June 15, 2010. Early adoption is permitted. If a vendor elects early
adoption and the period of adoption is not the beginning of the entity's fiscal
year, the entity should apply the amendments retrospectively from the beginning
of the year of adoption. Additionally, a vendor electing early adoption should
disclose the following information at a minimum for all previously reported
interim periods in the fiscal year of adoption:
  14
 
 1.
              Revenue
 2.
              Income
      before income taxes
 3.
              Net
      income
 4.
              Earnings
      per share
 5.
              The
      effect of the change for the captions
presented.
 
 A vendor
may elect, but is not required, to adopt the amendments in this Update
retrospectively for all prior periods.
  Management
does not believe that any other recently issued, but not yet effective
accounting pronouncements, if adopted, would have a material effect on the
accompanying financial statements.
 
 NOTE
3 GOING CONCERN
 
 The
accompanying financial statements have been prepared on a going concern basis
which contemplates the realization of assets and satisfaction of liabilities in
the normal course of business. At June 30, 2010, the Company has an accumulated
deficit of $93,664and had a net loss of $96
and cash used in operations of $25,425 for the period ended June 30, 2010,
respectively.
 
 These
factors raise substantial doubt about the Company’s ability to continue as a
going concern and are dependent upon its ability to achieve profitable
operations or obtain adequate financing. The financial statements do not include
any adjustments related to the recoverability and classification of recorded
asset amounts or the amounts and classification of liabilities that might be
necessary should the Company be unable to continue in existence.
 
 While the
Company is attempting to expand operations and produce additional revenues, the
Company’s cash position may not be significant enough to support the Company’s
daily operations. There are no assurances that it will complete the engagements
successfully or that these engagements will be extended or new engagements will
be obtained.
 
 NOTE
4 STOCKHOLDERS’ DEFICIT
 
 During the three months ended June 30,
2010, the majority shareholder contributed $16,500 to the Company for working
capital. During the six months ended June 30, 2010, the majority shareholder
contributed $27,500 to the Company for working capital.
  15
 
 NOTE
5 CONCENTRATION OF RISK
 
 For the
three months ended June 30, 2010, three unrelated customers Visual Advantage
(37.70%), Legal Wizard (19.30%), and Trial Exhibits, Inc. (37.45%) comprised
94.45% of total revenues.
 
 For the
three months ended June 30, 2009, three unrelated customers Legal Wizard
(25.88%), Trial Exhibits, Inc. (30.20%) and The Dancel Group (27.88%), comprised
83.96% of total revenues.
 
 NOTE
6 RELATED PARTY TRANSACTIONS
 
 The
Company’s office space which serves as its principal address is provided to it
by its President. The Company paid rent of $2,400 in each of 2010 and 2009 for
use of these facilities. There is no written lease agreement.
 
 NOTE
7 SUBSEQUENT EVENTS
 
 The
Company has evaluated all events that occurred after the balance sheet date
through the date when the financial statements were issued. The management
of the Company determined that there are reportable subsequent events to be
disclosed as follows:
 
 On July
5, 2010, Medical Design Studios, Inc. (the "Company") transferred to a
newly-formed company controlled by Justin N. Craig, the
Company’s President, Chief Executive Officer, Chief Financial Officer and
Chairman (the "Buyer"), certain operating assets associated with the continuing
operations of the Company's digital medical illustration and animation business,
subject to related liabilities (the "Business").  Pursuant to the
terms of an Agreement of Transfer with the Buyer (the "Transfer Agreement"), the
Company transferred the Business to the Buyer for a cash purchase price of
$100.00 and other good and valuable consideration including the assumption by
the Buyer of all liabilities and debts of the Company which relate to or arise
out of the operations of the Business and the indemnification by the Buyer of
all losses, liabilities, claims, damages, costs and expenses that may be
suffered by the Company at any time which arise out of the operations of the
Business.  The transfer of the Business pursuant to the Transfer Agreement
was approved by the board of directors of the Company and the holder of 94.4% of
the Company’s outstanding shares of common stock.  The purchase price
for the transfer was determined as a result of arm’s-length negotiation between
the parties.
 
 The
financial statements for the quarter ended June 30, 2010 give effect to the
discontinuance of the operating entity.
  16
  ITEM
2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
  Safe
Harbor Statement under the Private Securities Litigation Reform Act of
1995




Information
set forth herein contains “forward-looking statements” which can be identified
by the use of forward-looking terminology such as “believes,” “expects,” “may,”
“should” or “anticipates” or the negative thereof or other variations thereon or
comparable terminology, or by discussions of strategy. We cannot assure you that
the future results covered by the forward-looking statements will be achieved.
We caution readers that important factors may affect our actual results and
could cause such results to differ materially from forward-looking statements
made by or on behalf of us.  These factors include our lack of
historically profitable operations, dependence on key personnel, the success of
our business, our ability to manage anticipated growth and other factors
identified in our filings with the U.S. Securities and Exchange Commission,
press releases and/or other public communications.




The
following discussion and analysis provides information which our management
believes to be relevant to an assessment and understanding of our results of
operations and financial condition. This discussion should be read together with
our financial statements and the notes to financial statements, which are
included in this report. Because of the nature of a relatively new and growing
company such as ours, the reported results will not necessarily reflect the
future.




Operations




We were
founded as an unincorporated business in January 2004 and became a C corporation
in the State of Nevada on February 1, 2005.  As of June 30, 2010, we
had one employee, Justin N. Craig, our founder and President. Mr. Craig devotes
his full time to our business.




We are a
digital medical illustrator and animator providing digital displays and
enhancements to companies that assist attorneys to prepare or enhance exhibits
for trials involving medical issues. Approximately 85% of our work is ultimately
used by plaintiff counsel and 15% is used by defense counsel.




Our
customers are almost always companies that assist attorneys to prepare or
enhance a wide range of exhibits for trials. We perform the digital medical
imaging that is needed by these companies. There are a limited number of these
companies.




Customers
typically hear of our services by word of mouth. They continue with us and
expand or decrease the amount of work that they send to us based on the quality
and timing of our output. We retain rights to the digital images that we
produce. These digital images form a library for us. Some of these digital
images can be sold to users who need generic types of images for their purposes.
This enables us to generate revenue without doing additional work. The longer
that we are in operation, the larger our library becomes.




17




Recent
Developments




On July
5, 2010, we transferred to a newly-formed company, which we refer to herein as
the “Buyer,” controlled by Justin N. Craig, our President, Chief Executive
Officer, Chief Financial Officer and Chairman, certain operating assets
associated with the continuing operations of our digital medical illustration
and animation business, subject to related liabilities, which we refer to herein
as the “Business.”  Pursuant to the terms of an Agreement of Transfer
with the Buyer, we transferred the Business to the Buyer for a cash purchase
price of $100.00 and other good and valuable consideration including the
assumption by the Buyer of all of our liabilities and debts which relate to or
arise out of the operations of the Business and the indemnification by the Buyer
of all losses, liabilities, claims, damages, costs and expenses that may be
suffered by us at any time which arise out of the operations of the
Business.  The transfer of the Business was approved by our board of
directors and the holder of 94.4% of our outstanding shares of common
stock.  The purchase price for the transfer of the Business was
determined as a result of arm’s-length negotiation between the
parties.




Comparison
of the Six Months ended June 30, 2010 and 2009




A summary of operations
follows:




2010
            
            
            2009Revenue
            
            $
            -
            
            
            $
            -Operating
      Expenses:Selling,
      general and administrative
            
            
            839
            
            
            
            -Compensation
            
            
            5,218
            
            
            
            -Total
      operating expenses
            
            
            6,057
            
            
            
            -Income
      (loss) from operations
            
            
            (6,057
            )
            
            
            -Discontinued
      operationsIncome
      from discontinuedoperations
            
            
            5,961
            
            
            
            10,763Income
      from discontinuedoperations
            
            
            5,961
            
            
            
            10,763Income
      (loss) before income taxes
            
            $
            (96
            )
            
            $
            10,763




Revenue – For the three
months ended June 30, 2010, three unrelated customers Visual Advantage (37.70%),
Legal Wizard (19.30%), and Trial Exhibits, Inc. (37.45%) comprised 94.45% of
total revenues. For the three months ended June 30, 2009, three unrelated
customers Legal Wizard (25.88%), Trial Exhibits, Inc. (30.20%) and The Dancel
Group (27.88%), comprised 83.96% of total revenues.  This trend of
relying on a very limited number of customers is likely to continue for the
foreseeable future.




Compensationrelates entirely
to Justin N. Craig.




18




Other




As a
corporate policy, we will not incur any cash obligations that we cannot
satisfy with known resources, of which there are currently none except as
described in “Liquidity” below.  We believe that the perception that
many people have of a public company make it more likely that they will accept
restricted securities from a public company as consideration for indebtedness to
them than they would from a private company.  We have not performed
any studies of this matter.  Our conclusion is based on our own
observations.  However, there can be no assurances that we will be
successful in any of those efforts even if we are a public
entity.  Additionally, issuance of restricted shares would necessarily
dilute the percentage of ownership interest of our stockholders.




Liquidity




On
January 21, 2010 and March 4, 2010, our majority shareholder, Vision Opportunity
Master Fund, Ltd., contributed $11,000 to our capital to support our working
capital needs.




Private
capital, if sought, will be sought from former business associates of our
founder or private investors referred to us by those business associates. To
date, we have not sought any funding source and have not authorized any person
or entity to seek out funding on our behalf. If a market for our shares ever
develops, of which there can be no assurances, we may use restricted shares of
our common stock to compensate employees/consultants and independent contractors
wherever possible.  We believe that operations are generating sufficient
cash to continue operations for the next 12 months provided that our costs of
being a public company remain equal to or below the maximum estimate provided
below.




19




We have
become a public company and, by doing so, have incurred and will continue to
incur additional significant expenses for legal, accounting and related
services. Since we became a public entity, subject to the reporting requirements
of the Securities Exchange Act of 1934, we are incurring ongoing expenses
associated with professional fees for accounting, legal and a host of other
expenses for annual reports and proxy statements. These obligations will reduce
our ability and resources to fund other aspects of our business. We will reduce
the compensation levels paid to management if there is insufficient cash
generated from operations to satisfy these costs.




There are
no current plans to seek private investment.  We do not have any
current plans to raise funds through the sale of securities.  We hope
to be able to use our status as a public company to enable us to use non-cash
means of settling obligations and compensate persons and/or firms providing
services or products to us, although there can be no assurances that we will be
successful in any of those efforts.  We believe that the perception
that many people have of a public company make it more likely that they will
accept restricted securities from a public company as consideration for
indebtedness to them than they would from a private company.  We have
not performed any studies of this matter.  Our conclusion is based on
our own beliefs. Issuing shares of our common stock to such persons instead of
paying cash to them would increase our chances to expand our
business.  Having shares of our common stock may also give persons a
greater feeling of identity with us which may result in
referrals.  However, these actions, if successful, will result in
dilution of the ownership interests of existing shareholders, may further dilute
common stock book value, and that dilution may be material. Such issuances may
also serve to enhance existing management’s ability to maintain control because
the shares may be issued to parties or entities committed to supporting existing
management.




As part
of our plan to augment our financial resources and consider attractive business
opportunities, our principal stockholders have entered into discussions with
unnamed, unaffiliated third parties with respect to a potential merger
transaction which could result in the discontinuance of our current operations,
change of control/ownership and new management.  There can be no
assurance that a merger or other significant transaction will be consummated
with any such third parties or, if consummated, that we or our stockholders
would realize any benefits from it.




Off-Balance
Sheet Arrangements




We have
no off-balance sheet arrangements, obligations under any guarantee contracts or
contingent obligations. We also have no other commitments, other than the costs
of being a public company that will increase our operating costs or cash
requirements in the future.




Seasonality




We have
not noted a significant seasonal impact in our business.




20




Recently-Issued
Accounting Pronouncements




In June
2003, the U.S. Securities and Exchange Commission adopted final rules under
Section 404 of the Sarbanes-Oxley Act of 2002, as amended by SEC Release No.
33-9072 on October 13, 2009. Commencing with our annual report for the year
ended December 31, 2010, we will be required to include a report of management
on our internal control over financial reporting. The internal control report
must include a statement.




·
            of
      management’s responsibility for establishing and maintaining adequate
      internal control over our financial
reporting;




·
            of
      management’s assessment of the effectiveness of our internal control over
      financial reporting as of year end;
and




·
            of
      the framework used by management to evaluate the effectiveness of our
      internal control over financial
reporting.




Furthermore,
in the following fiscal year, management is required to file the registered
accounting firm’s attestation report separately on our internal control over
financial reporting on whether it believes that we have maintained, in all
material respects, effective internal control over financial
reporting.




In
August 2009, the FASB issued the FASB Accounting Standards Update No.
2009-04 “Accounting for
Redeemable Equity Instruments - Amendment to Section 480-10-S99” which
represents an update to section 480-10-S99, distinguishing liabilities from
equity, per EITF Topic D-98, Classification and Measurement of
Redeemable Securities.  The Company does not expect the
adoption of this update to have a material impact on its consolidated financial
position, results of operations or cash flows.




In
August 2009, the FASB issued the FASB Accounting Standards Update No.
2009-05 “Fair Value
Measurement and Disclosures Topic 820 – Measuring Liabilities at Fair
Value”, which provides amendments to subtopic 820-10, Fair Value
Measurements and Disclosures – Overall, for the fair value measurement of
liabilities.  This Update provides clarification that in circumstances
in which a quoted price in an active market for the identical liability is not
available, a reporting entity is required to measure fair value using one or
more of the following techniques: 1. A valuation technique that uses: a. The
quoted price of the identical liability when traded as an asset b. Quoted prices
for similar liabilities or similar liabilities when traded as assets. 2. Another
valuation technique that is consistent with the principles of topic 820; two
examples would be an income approach, such as a present value technique, or a
market approach, such as a technique that is based on the amount at the
measurement date that the reporting entity would pay to transfer the identical
liability or would receive to enter into the identical liability. The amendments
in this Update also clarify that when estimating the fair value of a liability,
a reporting entity is not required to include a separate input or adjustment to
other inputs relating to the existence of a restriction that prevents the
transfer of the liability. The amendments in this Update also clarify that both
a quoted price in an active market for the identical liability when traded as an
asset in an active market when no adjustments to the quoted price of the asset
are required are Level 1 fair value measurements.  The Company does
not expect the adoption of this update to have a material impact on its
consolidated financial position, results of operations or cash
flows.




21




In
September 2009, the FASB issued the FASB Accounting Standards Update No.
2009-09 “Accounting for
Investments-Equity Method and Joint Ventures and Accounting for Equity-Based
Payments to Non-Employees”.  This Update represents a
correction to Section 323-10-S99-4, Accounting by an Investor for
Stock-Based Compensation Granted to Employees of an Equity Method
Investee. Additionally, it adds observer commentAccounting Recognition for Certain
Transactions Involving Equity Instruments Granted to Other Than Employees
to the Codification. The Company does not expect the adoption to have a material
impact on its consolidated financial position, results of operations or cash
flows.




In
January 2010, the FASB issued the FASB Accounting Standards Update No. 2010-01
“Equity Topic 505 – Accounting
for Distributions to Shareholders with Components of Stock and Cash”,
which clarifies that the stock portion of a distribution to shareholders that
allows them to elect to receive cash or stock with a potential limitation on the
total amount of cash that all shareholders can elect to receive in the aggregate
is considered a share issuance that is reflected in EPS prospectively and is not
a stock dividend for purposes of applying Topics 505 and 260 (Equity and
Earnings Per Share (“EPS”)).  Those distributions should be accounted
for and included in EPS calculations in accordance with paragraphs 480-10-25- 14
and 260-10-45-45 through 45-47 of the FASB Accounting Standards
codification.  The amendments in this Update also provide a technical
correction to the Accounting Standards Codification.  The correction
moves guidance that was previously included in the Overview and Background
Section to the definition of a stock dividend in the Master
Glossary.  That guidance indicates that a stock dividend takes nothing
from the property of the corporation and adds nothing to the interests of the
stockholders.  It also indicates that the proportional interest of
each shareholder remains the same, and is a key factor to consider in
determining whether a distribution is a stock dividend.




Management
does not believe that any other recently issued, but not yet effective
accounting pronouncements, if adopted, would have a material effect on the
accompanying consolidated financial statements.




Critical
Accounting Policies




The
preparation of financial statements and related notes requires us to make
judgments, estimates, and assumptions that affect the reported amounts of
assets, liabilities, revenue and expenses, and related disclosure of contingent
assets and liabilities.




An
accounting policy is considered to be critical if it requires an accounting
estimate to be made based on assumptions about matters that are highly uncertain
at the time the estimate is made, and if different estimates that reasonably
could have been used, or changes in the accounting estimates that are reasonably
likely to occur periodically, could materially impact the financial
statements.




Financial
Reporting Release No. 60 requires all companies to include a discussion of
critical accounting policies or methods used in the preparation of financial
statements.  There are no critical policies or decisions that rely on
judgments that are based on assumptions about matters that are highly uncertain
at the time the estimate is made.




ITEM
3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK




Not
required




22




ITEM
4. CONTROLS AND PROCEDURES




(a)           Evaluation
of Disclosure Controls and Procedures.




An
evaluation was carried out under the supervision and with the participation of
the our management, including our Chief Executive Officer (“CEO”) and Chief
Financial Officer (“CFO”) (in this case the same person), of the effectiveness
of our disclosure controls and procedures as of June 30, 2010.  Based
on that evaluation, our CEO/CFO has concluded that our disclosure controls and
procedures are ineffective to provide reasonable assurance that: (i) information
required to be disclosed by us in reports that we file or submit under the
Securities Exchange Act of 1934 is accumulated and communicated to our
management, including our CEO/CFO, as appropriate to allow timely decisions
regarding required disclosure by us; and (ii) information required to be
disclosed by us in reports that we file or submit under the Securities Exchange
Act of 1934 is recorded, processed, summarized and reported within the time
periods specified in Securities and Exchange Commission rules and
forms.




(b)           Changes
in Internal Controls.




During
the quarter ended June 30, 2010, there were no changes in our internal control
over financial reporting that have materially affected, or are reasonably likely
to materially affect, our internal control over financial
reporting.




23





PART
      II - OTHER INFORMATIONITEM
      1.
            LEGAL
      PROCEEDINGSNoneITEM
      1A.
            RISK
      FACTORSNot
      requiredITEM
      2.
            UNREGISTERED
      SALES OF EQUITY SECURITIES AND USE OF PROCEEDSNoneITEM
      3.
            DEFAULTS
      UPON SENIOR SECURITIESNoneITEM
      4.
            RESERVEDITEM
      5.
            OTHER
      INFORMATIONNoneITEM
      6.
            EXHIBITS





Exhibit
              Number
            
            Description31.1
            
            Section
      302 Certification of Chief Executive Officer and Chief Financial
      Officer.32.1
            
            Certification
      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of
      the Sarbanes-Oxley Act of 2002 – Chief Executive Officer and Chief
      Financial Officer.





24


SIGNATURES





Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.




Medical Design Studios,
      Inc.Date:
      August 16, 2010
              By:
              /s/
      Justin N. CraigJustin
      N. CraigPresident
      and Chief Financial Officer(principal
      executive officer andprincipal
      financial
      and
                accounting
      officer)
  25