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 Quarter Ended September 30, 2009
 
  ̈           TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
 SECURITIES
EXCHANGE ACT OF 1934
 
 For
the transition period from  to
 
 Commission
File Number  000-53373
 
 RxBids
 (Exact
name of registrant as specified in its charter)
 
 Nevada
                20-1226081(State
      or other jurisdiction of
                (I.R.S.
      Employer Identification No.)incorporation
      or organization)
 
 9050
W. Warm Springs Rd #12-2129, Las Vegas, Nevada 89148
 (Address
of principal executive offices)
 
 (702)
540-2222
 (Registrant's
telephone number, including area code)
 
 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 past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
 Yes  x   No   ̈
 
 Indicate by check mark whether the
registrant 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   ̈
 
 Indicate by check mark whether the
registrant is a large accelerated filer, an accelerated filer, a non-accelerated
filer, or a smaller reporting company
 
 Large
      accelerated filer   ̈
                
                Accelerated
      filer
                 ̈Non-accelerated
      filer     ̈
                
                Smaller
      reporting company
                x(Do
      not check if a smaller reporting company)
 
 Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).
 Yes   ̈   Nox
 
 APPLICABLE
ONLY TO CORPORATE ISSUERS
 
 Indicate the number of shares
outstanding of each of the issuer's classes of common equity, as of the latest
practicable date.
 
 Class
                Outstanding as of November 11, 2008Common
      Stock, $.01 par value
                5,274,400
  
  TABLE
OF CONTENTS
 
 Heading
                  
                  PagePART  I
      — FINANCIAL INFORMATIONItem
      1.
                  Financial
      Statements
                  3Item
      2.
                  Management's
      Discussion and Analysis of Financial Condition and Results of
      Operations
                  11Item
      3.
                  Quantitative
      and Qualitative Disclosures About Market Risk
                  13Item 4(T).
                  Controls
      and Procedures
                  13PART
      II — OTHER INFORMATIONItem
      1.
                  Legal
      Proceedings
                  14Item 1A.
                  Risk
      Factors
                  14Item
      2
                  Unregistered
      Sales of Equity Securities and Use of Proceeds
                  14Item
      3.
                  Defaults
      Upon Senior Securities
                  14Item
      4.
                  Submission
      of Matters to a Vote of Securities Holders
                  14Item
      5.
                  Other
      Information
                  14Item
      6.
                  Exhibits
                  14Signatures
                  15
  2
  PART  I   —   FINANCIAL
INFORMATION
 
 Item
1.         Financial
Statements
 
 The accompanying unaudited balance
sheet of RxBids at September 30, 2009 and related unaudited statements of
operations, stockholders' equity (deficit) and cash flows for the three and nine
months ended September 30, 2009 and 2008 and the period from June 18, 2004 (date
of inception) through September 30, 2009, have been prepared by management in
conformity with United States generally accepted accounting
principles.  In the opinion of management, all adjustments considered
necessary for a fair presentation of the results of operations and financial
position have been included and all such adjustments are of a normal recurring
nature.  It is suggested that these financial statements be read in
conjunction with the financial statements and notes thereto included in the
RxBids December 31, 2008 audited financial statements.  Operating
results for the period ended September 30, 2009, are not necessarily indicative
of the results that can be expected for the fiscal year ending December 31, 2009
or any other subsequent period.
  3
  RxBIDS
 (A
Development Stage Company)
 
 FINANCIAL
STATEMENTS
 
 September
30, 2009 and December 31, 2008
 
 RXBIDS
 (A
Development Stage Company)
 Balance
Sheets
 
 September 30,
                        
                        
                        December 31,2009
                        
                        
                        2008(Unaudited)ASSETSCURRENT
      ASSETSCash
      and cash equivalents
                        
                        $
                        785
                        
                        
                        $
                        678Total
      Current Assets
                        
                        
                        785
                        
                        
                        
                        678EQUIPMENT,
      NET
                        
                        
                        -
                        
                        
                        
                        88TOTAL
      ASSETS
                        
                        $
                        785
                        
                        
                        $
                        766LIABILITIES AND STOCKHOLDERS' EQUITY
      (DEFICIT)CURRENT
      LIABILITIESAccounts
      payable and accrued expenses
                        
                        $
                        29,283
                        
                        
                        $
                        26,301Payable
      - related party
                        
                        
                        64,116
                        
                        
                        
                        40,532Total
      Current Liabilities
                        
                        
                        93,399
                        
                        
                        
                        66,833STOCKHOLDERS'
      EQUITY (DEFICIT)Common
      stock; 20,000,000 shares authorized at $0.01 par value, 5,274,400 shares
      issued and outstanding
                        
                        
                        52,744
                        
                        
                        
                        52,744Additional
      paid-in capital
                        
                        
                        502,488
                        
                        
                        
                        502,488Deficit
      accumulated during the development stage
                        
                        
                        (647,846
                        )
                        
                        
                        (621,299
                        )Total
      Stockholders' Equity (Deficit)
                        
                        
                        (92,614
                        )
                        
                        
                        (66,067
                        )TOTAL
      LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
                        
                        $
                        785
                        
                        
                        $
                        766
 
 The
accompanying notes are an integral part of these financial
statements.
  4
  RXBIDS
 (A
Development Stage Company)
 Statements
of Operations
 (Unaudited)
 
 From Inception onJune 18,For the Three Months Ended
                    
                    
                    For the Nine Months Ended
                    
                    
                    2004 ThroughSeptember 30,
                    
                    
                    September 30,
                    
                    
                    September 30,2009
                    
                    
                    2008
                    
                    
                    2009
                    
                    
                    2008
                    
                    
                    2009REVENUES
                    
                    $
                    272
                    
                    
                    $
                    105
                    
                    
                    $
                    272
                    
                    
                    $
                    352
                    
                    
                    $
                    1,036COST
      OF SALES
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    
                    
                    
                    
                    -
                    
                    
                    
                    -GROSS
      MARGIN
                    
                    
                    272
                    
                    
                    
                    105
                    
                    
                    
                    272
                    
                    
                    
                    352
                    
                    
                    
                    1,036OPERATING
      EXPENSESDepreciation
      expense
                    
                    
                    -
                    
                    
                    
                    55
                    
                    
                    
                    88
                    
                    
                    
                    165
                    
                    
                    
                    1,100Sales
      and marketing
                    
                    
                    2,172
                    
                    
                    
                    3,500
                    
                    
                    
                    6,068
                    
                    
                    
                    8,600
                    
                    
                    
                    43,250Research
      and development
                    
                    
                    -
                    
                    
                    
                    4,579
                    
                    
                    
                    -
                    
                    
                    
                    35,579
                    
                    
                    
                    155,325Consulting
      fees
                    
                    
                    2,463
                    
                    
                    
                    
                    
                    
                    
                    14,454
                    
                    
                    
                    50,000
                    
                    
                    
                    143,954General
      and administrative
                    
                    
                    1,361
                    
                    
                    
                    25,751
                    
                    
                    
                    5,253
                    
                    
                    
                    106,938
                    
                    
                    
                    303,442Total
      Operating Expenses
                    
                    
                    5,996
                    
                    
                    
                    33,885
                    
                    
                    
                    25,863
                    
                    
                    
                    201,282
                    
                    
                    
                    647,071INCOME
      FROM OPERATIONS
                    
                    
                    (5,724
                    )
                    
                    
                    (33,780
                    )
                    
                    
                    (25,591
                    )
                    
                    
                    (200,930
                    )
                    
                    
                    (646,035
                    )OTHER
      INCOME (EXPENSE)Interest
      Income (Expense)
                    
                    
                    (580
                    )
                    
                    
                    -
                    
                    
                    
                    (956
                    )
                    
                    
                    -
                    
                    
                    
                    (1,811
                    )Total
      Other Income (Expense)
                    
                    
                    (580
                    )
                    
                    
                    -
                    
                    
                    
                    (956
                    )
                    
                    
                    -
                    
                    
                    
                    (1,811
                    )LOSS
      BEFORE INCOME TAXES
                    
                    
                    (6,304
                    )
                    
                    
                    (33,780
                    )
                    
                    
                    (26,547
                    )
                    
                    
                    (200,930
                    )
                    
                    
                    (647,846
                    )INCOME
      TAX EXPENSE
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -
                    
                    
                    
                    -NET
      LOSS
                    
                    $
                    (6,304
                    )
                    
                    $
                    (33,780
                    )
                    
                    $
                    (26,547
                    )
                    
                    $
                    (200,930
                    )
                    
                    $
                    (647,846
                    )BASIC
      LOSS PER SHARE
                    
                    $
                    (0.00
                    )
                    
                    $
                    (0.01
                    )
                    
                    $
                    (0.01
                    )
                    
                    $
                    (0.04
                    )WEIGHTED
      AVERAGE NUMBER OF SHARES OUTSTANDING
                    
                    
                    5,274,400
                    
                    
                    
                    5,274,400
                    
                    
                    
                    5,274,400
                    
                    
                    
                    5,034,400
 
 The
accompanying notes are an integral part of these financial
statements
  5
  RXBIDS
 (A
Development Stage Company)
 Statements
of Stockholders' Equity (Deficit)
 
 DeficitAccumulatedAdditional
                      
                      
                      Stock
                      
                      
                      During the
                      
                      
                      TotalCommon Stock
                      
                      
                      Paid-In
                      
                      
                      Subscriptions
                      
                      
                      Development
                      
                      
                      Stockholders'Shares
                      
                      
                      Amount
                      
                      
                      Capital
                      
                      
                      Receivable
                      
                      
                      Stage
                      
                      
                      DeficitBalance,
      June 18, 2004
                      
                      
                      -
                      
                      
                      $
                      -
                      
                      
                      $
                      -
                      
                      
                      $
                      -
                      
                      
                      $
                      -
                      
                      
                      $
                      -Net
      loss from inception through December 31, 2004
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      (61,907
                      )
                      
                      
                      (61,907
                      )Balance,
      December 31, 2004
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      (61,907
                      )
                      
                      
                      (61,907
                      )Net
      loss for the year ended December 31, 2005
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      (28,321
                      )
                      
                      
                      (28,321
                      )Balance,
      December 31, 2005
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      (90,228
                      )
                      
                      
                      (90,228
                      )Issuance
      of common stock for cash and debt at $0.07 per share
                      
                      
                      4,480,000
                      
                      
                      
                      44,800
                      
                      
                      
                      311,832
                      
                      
                      
                      (24,000
                      )
                      
                      
                      -
                      
                      
                      
                      332,632Net
      loss for the year ended December 31, 2006
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      (52,007
                      )
                      
                      
                      (52,007
                      )Balance,
      December 31, 2006
                      
                      
                      4,480,000
                      
                      
                      
                      44,800
                      
                      
                      
                      311,832
                      
                      
                      
                      (24,000
                      )
                      
                      
                      (142,235
                      )
                      
                      
                      190,397Cash
      received for stock subscriptions receivable
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      24,000
                      
                      
                      
                      -
                      
                      
                      
                      24,000Issuance
      of common stock for cash at $0.25 per share
                      
                      
                      414,400
                      
                      
                      
                      4,144
                      
                      
                      
                      99,456
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      103,600Net
      loss for the year ended December 31, 2007
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      (238,813
                      )
                      
                      
                      (238,813
                      )Balance,
      December 31, 2007
                      
                      
                      4,894,400
                      
                      
                      
                      48,944
                      
                      
                      
                      411,288
                      
                      
                      
                      -
                      
                      
                      
                      (381,048
                      )
                      
                      
                      79,184Issuance
      of common stock for cash at $0.25 per share
                      
                      
                      180,000
                      
                      
                      
                      1,800
                      
                      
                      
                      43,200
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      45,000Issuance
      of common stock for services at $0.25 per share
                      
                      
                      200,000
                      
                      
                      
                      2,000
                      
                      
                      
                      48,000
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      50,000Net
      loss for the year ended December 31, 2008
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      (240,251
                      )
                      
                      
                      (240,251
                      )Balance,
      December 31, 2008
                      
                      
                      5,274,400
                      
                      
                      
                      52,744
                      
                      
                      
                      502,488
                      
                      
                      
                      -
                      
                      
                      
                      (621,299
                      )
                      
                      
                      (66,067
                      )Net
      loss for the nine months ended September 30, 2009
    (unaudited)
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      (26,547
                      )
                      
                      
                      (26,547
                      )Balance
      September 30, 2009 (unaudited)
                      
                      
                      5,274,400
                      
                      
                      $
                      52,744
                      
                      
                      $
                      502,488
                      
                      
                      $
                      -
                      
                      
                      $
                      (647,846
                      )
                      
                      $
                      (92,614
                      )
 
 The
accompanying notes are an integral part of these financial
statements.
  6
  RXBIDS
 (A
Development Stage Company)
 Statements
of Cash Flows
 (Unaudited)
 
 From Inception onJune 18, 2004For the Nine Months Ended
                        
                        
                        ThroughSeptember 30,
                        
                        
                        September 30,2009
                        
                        
                        2008
                        
                        
                        2009OPERATING
      ACTIVITIESNet
      loss
                        
                        $
                        (26,547
                        )
                        
                        $
                        (200,930
                        )
                        
                        $
                        (647,846
                        )Adjustments
      to reconcile net loss to net cash used by operating
      activities:Common
      stock issued for services
                        
                        
                        -
                        
                        
                        
                        50,000
                        
                        
                        
                        50,000Depreciation
      and amortization
                        
                        
                        88
                        
                        
                        
                        165
                        
                        
                        
                        1,100Changes
      in operating assets and liabilities:Change
      in accounts receivable
                        
                        
                        -
                        
                        
                        
                        133
                        
                        
                        
                        -Change
      in accounts payable
                        
                        
                        2,982
                        
                        
                        
                        26,662
                        
                        
                        
                        29,283Net
      Cash Used in Operating Activities
                        
                        
                        (23,477
                        )
                        
                        
                        (123,970
                        )
                        
                        
                        (567,463
                        )INVESTING
      ACTIVITIESPurchase
      of property and equipment
                        
                        
                        -
                        
                        
                        
                        -
                        
                        
                        
                        (1,100
                        )Net
      Cash Used in Investing Activities
                        
                        
                        -
                        
                        
                        
                        -
                        
                        
                        
                        (1,100
                        )FINANCING
      ACTIVITIESProceeds
      from related party loans
                        
                        
                        23,584
                        
                        
                        
                        -
                        
                        
                        
                        396,748Proceeds
      from common stock issued
                        
                        
                        -
                        
                        
                        
                        45,000
                        
                        
                        
                        172,600Net
      Cash Provided by Financing Activities
                        
                        
                        23,584
                        
                        
                        
                        45,000
                        
                        
                        
                        569,348NET
      DECREASE IN CASH
                        
                        
                        107
                        
                        
                        
                        (78,970
                        )
                        
                        
                        785CASH
      AT BEGINNING OF PERIOD
                        
                        
                        678
                        
                        
                        
                        82,977
                        
                        
                        
                        -CASH
      AT END OF PERIOD
                        
                        $
                        785
                        
                        
                        $
                        4,007
                        
                        
                        $
                        785SUPPLEMENTAL
      DISCLOSURES OF CASH FLOW INFORMATIONCASH
      PAID FOR:Interest
                        
                        $
                        -
                        
                        
                        $
                        -
                        
                        
                        $
                        -Income
      Taxes
                        
                        $
                        -
                        
                        
                        $
                        -
                        
                        
                        $
                        -NON-CASH
      FINANCING ACTIVITIES:Common
      stock issued for services
                        
                        $
                        -
                        
                        
                        $
                        50,000
                        
                        
                        $
                        50,000Common
      stock issued for debt
                        
                        $
                        -
                        
                        
                        $
                        -
                        
                        
                        $
                        332,632
 
 The
accompanying notes are an integral part of these financial
statements.
  7
  RXBIDS
 (A
Development Stage Company)
 Notes to
Financial Statements
 September
30, 2009 and December 31, 2008
 
 NOTE 1 -
CONDENSED FINANCIAL STATEMENTS
 
 The
accompanying financial statements have been prepared by the Company without
audit.  In the opinion of management, all adjustments (which include
only normal recurring adjustments) necessary to present fairly the financial
position, results of operations, and cash flows at September 30, 2009, and for
all periods presented herein, have been made.
 
 Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with accounting principles generally accepted in the
United States of America have been condensed or omitted.  It is
suggested that these condensed financial statements be read in conjunction with
the financial statements and notes thereto included in the Company's December
31, 2008 audited financial statements.  The results of operations for
the period ended September 30, 2009 is not necessarily indicative of the
operating results for the full years.
 
 NOTE 2 -
GOING CONCERN
 
 The
Company's financial statements are prepared using generally accepted accounting
principles in the United States of America applicable to a going concern which
contemplates the realization of assets and liquidation of liabilities in the
normal course of business. The Company has not yet established an ongoing source
of revenues sufficient to cover its operating costs and allow it to continue as
a going concern. The ability of the Company to continue as a going concern is
dependent on the Company obtaining adequate capital to fund operating losses
until it becomes profitable. If the Company is unable to obtain adequate
capital, it could be forced to cease operations.
 
 In order
to continue as a going concern, the Company will need, among other things,
additional capital resources. Management's plan is to obtain such resources for
the Company by obtaining capital from management and significant shareholders
sufficient to meet its minimal operating expenses and seeking equity and/or debt
financing. However management cannot provide any assurances that the Company
will be successful in accomplishing any of its plans.
 
 The
ability of the Company to continue as a going concern is dependent upon its
ability to successfully accomplish the plans described in the preceding
paragraph and eventually secure other sources of financing and attain profitable
operations. The accompanying financial statements do not include any adjustments
that might be necessary if the Company is unable to continue as a going
concern.
 
 NOTE 3 –
SIGNIFICANT ACCOUNTING POLICIES
 
 Use of
Estimates
 
 The
preparation of financial statements in conformity with generally accepted
accounting principles 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 and
the reported amounts of revenues and expenses during the reporting
period.  Actual results could differ from those
estimates.
  8
  RXBIDS
 (A
Development Stage Company)
 Notes to
Financial Statements
 September
30, 2009 and December 31, 2008
 
 NOTE 3 –
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
 Recently Adopted Accounting
Pronouncements
 
 Effective
June 30, 2009, the Company adopted a new accounting standard issued by the FASB
related to the disclosure requirements of the fair value of the financial
instruments. This standard expands the disclosure requirements of fair value
(including the methods and significant assumptions used to estimate fair value)
of certain financial instruments to interim period financial statements that
were previously only required to be disclosed in financial statements for annual
periods. In accordance with this standard, the disclosure requirements have been
applied on a prospective basis and did not have a material impact on the
Company’s financial statements.
 
 On
September 30, 2009, the Company adopted changes issued by the
Financial Accounting Standards Board (FASB) to the authoritative hierarchy of
GAAP.  These changes establish the FASB Accounting Standards
Codification (Codification) as the source of authoritative accounting principles
recognized by the FASB to be applied by nongovernmental entities in the
preparation of financial statements in conformity with GAAP.  Rules
and interpretive releases of the Securities and Exchange Commission (SEC) under
authority of federal securities laws are also sources of authoritative GAAP for
SEC registrants.  The FASB will no longer issue new standards in the
form of Statements, FASB Staff Positions, or Emerging Issues Task Force
Abstracts; instead the FASB will issue Accounting Standards
Updates.  Accounting Standards Updates will not be authoritative in
their own right as they will only serve to update the
Codification.  These changes and the Codification itself do not change
GAAP.  Other than the manner in which new accounting guidance is
referenced, the adoption of these changes had no impact on the Financial
Statements.
 
 Recently Issued Accounting
Standards
 
 In August
2009, the FASB issued an amendment to the accounting standards related to the
measurement of liabilities that are recognized or disclosed at fair value on a
recurring basis. This standard clarifies how a company should measure the fair
value of liabilities and that restrictions preventing the transfer of a
liability should not be considered as a factor in the measurement of liabilities
within the scope of this standard. This standard is effective for the Company on
October 1, 2009. The Company does not expect the impact of its adoption to be
material to its financial statements.
 
 In
October 2009, the FASB issued an amendment to the accounting standards related
to the accounting for revenue in arrangements with multiple deliverables
including how the arrangement consideration is allocated among delivered and
undelivered items of the arrangement. Among the amendments, this standard
eliminated the use of the residual method for allocating arrangement
considerations and requires an entity to allocate the overall consideration to
each deliverable based on an estimated selling price of each individual
deliverable in the arrangement in the absence of having vendor-specific
objective evidence or other third party evidence of fair value of the
undelivered items. This standard also provides further guidance on how to
determine a separate unit of accounting in a multiple-deliverable revenue
arrangement and expands the disclosure requirements about the judgments made in
applying the estimated selling price method and how those judgments affect the
timing or amount of revenue recognition. This standard, for which the Company is
currently assessing the impact, will become effective for the Company on January
1, 2011.
  9
  RXBIDS
 (A
Development Stage Company)
 Notes to
Financial Statements
 September
30, 2009 and December 31, 2008
 
 In
October 2009, the FASB issued an amendment to the accounting standards related
to certain revenue arrangements that include software elements. This standard
clarifies the existing accounting guidance such that tangible products that
contain both software and non-software components that function together to
deliver the product’s essential functionality, shall be excluded from the scope
of the software revenue recognition accounting standards. Accordingly, sales of
these products may fall within the scope of other revenue recognition standards
or may now be within the scope of this standard and may require an allocation of
the arrangement consideration for each element of the arrangement. This
standard, for which the Company is currently assessing the impact, will become
effective for the Company on January 1, 2011.
 
 NOTE 4 –
RELATED PARTY PAYABLES
 
 As of
September 30, 2009, the Company has received cash advances from its principal
shareholder of $64,116. The advances are non interest bearing, unsecured and due
upon demand. Imputed interest was not considered to be material.
 
 NOTE 5 –
SUBSEQUENT EVENT
 
 There
were no subsequent events from the end of the quarter to November 13,
2009.
  10
  Item
2.        Management's Discussion and
Analysis of Financial Condition and Results of Operations
 
 The following information should be
read in conjunction with the financial statements and notes thereto appearing
elsewhere in this Form 10-Q.
 
 Liquidity
and Capital Resources
 
 In December 2007, we realized gross
proceeds of $103,600 from the public offering of our common stock.  We
have used these proceeds to develop our website and to commence advertising to
promote and market our medical prescription auction service.  At September 30, 2009, we had
available cash of $785 compared to $678 at December 31,
2008.  Management believes we must secure additional funds to
adequately sustain operations during the remainder of fiscal 2009.  If
during this period we have not begun to realize sufficient revenues to fund
ongoing operations, we will have to consider new sources of
financing.  We do not currently have any arrangements or plans for
future financing and there is no assurance that we will be able to secure
financing on favorable terms or at all.
 
 At September 30, 2009, we had total
current assets of $785 in cash and total current liabilities of $93,399,
consisting of accounts payable and accrued expenses of $29,283 and a payable to
related party of $64,116.  At December 31, 2008, we had total current
assets of $678 in cash and total current liabilities of $66,833, consisting of
accounts payable and accrued expenses of $26,301 and a payable to related party
of $40,532.  Working capital at September 30, 2009 was a
negative $92,614 compared to $66,155 at December 31, 2008.  This
decrease in working capital for the first nine months of 2009 is primarily
due to the 58% increase in the payable to related party, which represents
additional borrowing during the period.  There was also an 11%
increase in accounts payable and accrued expenses.  At September 30, 2009, we had total
assets of $785 and a stockholders’ deficit of $92,614, compared to total assets
of $766 and a stockholders' deficit of $66,067 at December 31,
2008.
 
 Net cash used by operating activities
was $23,477 for the first nine months of 2009 compared to
$123,970 for the comparable 2008 period.  This result is primarily
attributed to the decreased net loss from $200,939 for the 2008 period, compared
to $26,547 for the 2009 period.  Also during the first nine months of 2009, we realized
$23,584 in proceeds from related party loans.
 
 Results
of Operations
 
 We realized $272 in revenues for the
three-month period (“third quarter”) ended September 30, 2009 compared to
revenues of $105 for the third quarter of 2008.  Total operating
expenses for the third quarter of 2009 were $5,996, an 83% decrease from $33,885
for the third quarter of 2008.  The decrease is primarily attributed
to the 95% decrease in general and administrative expenses, from $25,751 in 2008
to $1,361 in 2009, due to the elimination of website and business development
expenses.  The decrease was also due to research and development
expenses of $4,579 in the third quarter in 2008 compared to $0 in 2009,
reflecting the decreased in research and development activity in
2009.  The decrease in expenses was partially offset by consulting
fees of $2,463 for the third quarter of 2009 compared to $0 for the 2008
period.  Our net loss was $6,304 for the third quarter of 2009
compared to $33,780 for the third quarter of 2008.
  11
  We realized $272 in revenues for the
nine months ended September 30, 2009 compared to
$352 for the 2008 period.  Total operating expenses for the first
nine months of 2009
decreased 87% to $25,863 from $201,282 for the comparable 2008 period, primarily
attributed to the 95% decrease in general and administrative expenses, from
$106,938 in 2008 to $5,253 in 2009, due to the elimination of website and
business development expenses.  Contributing to the decrease was the
decrease in research and development expenses from $35,579 for the first nine months of 2008 to $0 in
2009, and the 71% decrease in consulting fees from $50,000 in the first nine months of 2008 to $14,454
for the 2009 period.  Our net loss was $26,547 for the first nine months of 2009 compared to
$200,930 for the 2008 period.
 
 In the opinion of management, inflation
has not and will not have a material effect on our operations in the immediate
future.  Management will continue to monitor inflation and evaluate
the possible future effects of inflation on our business and
operations.
 
 Net
Operating Loss
 
 The Company has accumulated
approximately $621,299 of net operating loss carryforward at December 31,
2008.  This loss carryforward may be offset against future taxable
income through the year 2028.  The use of these losses to reduce
future income taxes will depend on the generation of sufficient taxable income
prior to the expiration of the net operating loss carryforwards.  In
the event of certain changes in control, there will be an annual limitation on
the amount of net operating loss carryforwards that can be used.  No
tax benefit has been reported in the financial statements for the year ended
December 31, 2008 or nine-month period ended September 30, 2009 because it
has been fully offset by a valuation allowance.
 
 Inflation
 
 In the opinion of management, inflation
has not and will not have a material effect on our operations in the immediate
future.  Management will continue to monitor inflation and evaluate
the possible future effects of inflation on our business and
operations.
 
 Off-balance
Sheet Arrangements
 
 We have no off-balance sheet
arrangements.
 
 Forward-Looking
and Cautionary Statements
 
 This report includes "forward-looking
statements" that may relate to such matters as anticipated financial
performance, future revenues or earnings, business prospects, projected
ventures, new products and services, anticipated market performance and similar
matters.
 
 When used in this report, the words
"may," "will," expect," anticipate," "continue," "estimate," "project,"
"intend," and similar expressions are intended to identify forward-looking
statements regarding events, conditions, and financial trends that may affect
our future plans of operations, business strategy, operating results, and
financial position.
 
 We caution readers that a variety of
factors could cause our actual results to differ materially from the anticipated
results or other matters expressed in forward-looking statements. These risks
and uncertainties, many of which are beyond our control, include:
 ●      the
sufficiency of existing capital resources and the ability to raise additional
capital to fund cash requirements for future operations;
  12
  ●      the
ability to successfully operate our website and generate a sufficient number of
consumers and pharmacies to purchase their medications from RxBIDS.com and the
ability to broaden our pharmaceutical network;
 
 ●      volatility
of the stock market, particularly within the online medical prescription sector;
and
 
 ●      general
economic conditions.
 
 Although we believe the expectations
reflected in these forward-looking statements are reasonable, such expectations
cannot guarantee future results, levels of activity, performance or
achievements.
 
 Item
3.         Quantitative and
Qualitative Disclosures About Market Risk.
 
 This item is not required for a smaller
reporting company.
 
 Item
4(T).    Controls and Procedures.
 
 Evaluation of Disclosure Controls
and Procedures.  Disclosure controls and procedures (as defined
in Rules  13a-15(e) and 15d-15(e) under the Securities Exchange Act of
1934) are designed to ensure that information required to be disclosed in
reports filed or submitted under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in SEC rules and
forms.  Disclosure and control procedures are also designed to ensure
that such information is accumulated and communicated to management, including
the chief executive officer and principal accounting officer, to allow timely
decisions regarding required disclosures.
 
 As of the end of the period covered by
this quarterly report, we carried out an evaluation, under the supervision and
with the participation of management, including our chief executive officer and
principal accounting officer, of the effectiveness of the design and operation
of our disclosure controls and procedures.  In designing and
evaluating the disclosure controls and procedures, management recognizes that
there are inherent limitations to the effectiveness of any system of disclosure
controls and procedures, including the possibility of human error and the
circumvention or overriding of the controls and
procedures.  Accordingly, even effective disclosure controls and
procedures can only provide reasonable assurance of achieving their desired
control objectives.  Additionally, in evaluating and implementing
possible controls and procedures, management is required to apply its reasonable
judgment.  Based on the evaluation described above, our management,
including our principal executive officer and principal accounting officer, have
concluded that, as of September
30, 2009, our disclosure controls and procedures were
effective.
  13
  Changes in Internal Control Over
Financial Reporting.  Management has evaluated whether any
change in our internal control over financial reporting occurred during the
third quarter of fiscal 2009. Based on its evaluation, management, including the
chief executive officer and principal accounting officer, has concluded that
there has been no change in our internal control over financial reporting during
the third quarter of fiscal 2009 that has materially affected, or is reasonably
likely to materially affect, our internal control over financial
reporting.
 
 PART  II   —   OTHER
INFORMATION
 
 Item
1.         Legal
Proceedings
 
 There are no material pending legal
proceedings to which we are a party or to which any of our property is subject
and, to the best of our knowledge, no such actions against us are contemplated
or threatened.
 
 Item
1A.      Risk Factors
 
 This item is not required for a smaller
reporting company.
 
 Item
2.         Unregistered Sales of
Equity Securities and Use of Proceeds
 
 This Item is not
applicable.
 
 Item
3.         Defaults Upon Senior
Securities
 
 This Item is not
applicable.
 
 Item
4.         Submission of Matters to
a Vote of Security Holders
 
 This Item is not
applicable.
 
 Item
5.         Other
Information
 
 This Item is not
applicable.
 
 Item
6.         Exhibits
 
 Exhibit 31.1
                Certification
      of C.E.O. and Principal Accounting Officer Pursuant to Section 302 of the
      Sarbanes-Oxley Act of 2002.
 
 Exhibit 32.1
                Certification
      of C.E.O. and Principal Accounting Officer Pursuant to 18 U.S.C. Section
      1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
      2002.
  14
  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.
 
 RxBidsDate:  November
      16, 2009
                By:
                /S/ Mack
      BradleyMack
      BradleyPresident,
      C.E.O. and Director(Acting
      Principal Accounting Officer)
  15