UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549



|ý |  | QUARTERLY REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE          
|- |  | -----------------------------------------------------------------
|  |  | SECURITIES EXCHANGE ACT OF
1934                                  
|  |  |                                                                  
|  |  | For the quarterly period ended June 30, 2011                     
|  |  |                                                                  
|  |  | OR                                                               
|  |  |                                                                  
|o |  | 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:  000-51134



MMRGLOBAL, INC. (Exact name of Registrant as Specified in Its Charter)

|DELAWARE                                                                                                                              |  | 33-0892797                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------
|(State or Other Jurisdiction of 
                                                                      Incorporation or Organization) |  | (I.R.S. Employer 
                                                                      Identification No.)
|                                                                                                                                      |  |                                                                                                            
|4401 WILSHIRE BLVD., SUITE 200
LOS ANGELES, CA                                                                                        |  | 90010                                                                                                      
|(Address of Principal Executive Offices)                                                                                              |  | (Zip Code)                                                                                                 

(310) 476-7002

(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  o

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 during the preceding 12 months (or for
such shorter period that the registrant was required to submit and post such files).

Yes x
         No  o

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.

Large accelerated filer o
                  Accelerated filer  o
      

Non-accelerated filer  o
  (Do not check if a smaller reporting company)                 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 o
         No  x

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable
date:  As of July 21, 2011, the issuer had 295,233,273 shares of common stock outstanding.




TABLE OF CONTENTS

|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  | Page
|---------- |  | -------------------------------------------------------------------------------------------------------------------------- |  |  |  |  |  |  |  |  |  |  | ----
|Part I.    |  | FINANCIAL INFORMATION                                                                                                      |  |  |  |  |  |  |  |  |  |  | 1   
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Item 1.    |  | Consolidated Financial Statements                                                                                          |  |  |  |  |  |  |  |  |  |  | 1   
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|           |  | Consolidated Balance Sheets at June 30, 2011 (unaudited) and December 31, 2010                                             |  |  |  |  |  |  |  |  |  |  | 1   
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|           |  | Consolidated Statements of Operations - Three and Six Months Ended June 30, 2011 (unaudited) and June 30, 2010 (unaudited) |  |  |  |  |  |  |  |  |  |  | 2   
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|           |  | Consolidated Statements of Cash Flows - Six Months Ended June 30, 2011 (unaudited) and June 30, 2010 (unaudited)           |  |  |  |  |  |  |  |  |  |  | 3   
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|           |  | Notes to Consolidated Financial Statements (unaudited)                                                                     |  |  |  |  |  |  |  |  |  |  | 4   
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Item 2.    |  | Management's Discussion and Analysis of Financial Condition and Results of Operations                                      |  |  |  |  |  |  |  |  |  |  | 23  
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Item 3.    |  | Quantitative and Qualitative Disclosures About Market Risk                                                                 |  |  |  |  |  |  |  |  |  |  | 31  
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Item 4.    |  | Controls and Procedures                                                                                                    |  |  |  |  |  |  |  |  |  |  | 31  
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Part II.   |  | OTHER INFORMATION                                                                                                          |  |  |  |  |  |  |  |  |  |  | 32  
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Item 1.    |  | Legal Proceedings                                                                                                          |  |  |  |  |  |  |  |  |  |  | 32  
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Item 2.    |  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                |  |  |  |  |  |  |  |  |  |  | 33  
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Item 6.    |  | Exhibits                                                                                                                   |  |  |  |  |  |  |  |  |  |  | 35  
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Signatures |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  | 36  

i

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PART I - FINANCIAL INFORMATION

Item 1.  Consolidated Financial Statements

MMRGLOBAL, INC. 
                                 CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                                           |  |   | June 30,     |  |   | December 31,
|------------------------------------------------------------------------------------------ |  | - | ------------ |  | - | ------------
|                                                                                           |  |   | 2011         |  |   | 2010        
|                                                                                           |  |   | (Unaudited)  |  |   |             
|ASSETS                                                                                    
|                                                                                           |  |   |              |  |   |             
|Current assets:                                                                            |  |   |              |  |   |             
|Cash and cash equivalents                                                                  |  | $ | 273,837      |  | $ | 363,689     
|Accounts receivable, less allowances of $19,200 in 2011 and in 2010                        |  |   | 465,898      |  |   | 436,740     
|Inventory                                                                                  |  |   | 55,556       |  |   | 84,261      
|Prepaid expenses and other current assets                                                  |  |   | 322,863      |  |   | 370,483     
|Total current assets                                                                       |  |   | 1,118,154    |  |   | 1,255,173   
|                                                                                           |  |   |              |  |   |             
|Long-term investments                                                                      |  |   |              |  |   |             
|Investment in equity securities, at cost                                                   |  |   | 56,000       |  |   | 56,000      
|Total long-term investments                                                                |  |   | 56,000       |  |   | 56,000      
|                                                                                           |  |   |              |  |   |             
|Property and equipment, net                                                                |  |   | 38,874       |  |   | 42,931      
|Deposits                                                                                   |  |   | 3,370        |  |   | 3,870       
|Intangible assets, net                                                                     |  |   | 1,030,012    |  |   | 870,433     
|Total assets                                                                               |  | $ | 2,246,410    |  | $ | 2,228,407   
|                                                                                           |  |   |              |  |   |             
|LIABILITIES AND STOCKHOLDERS' DEFICIT                                                     
|                                                                                           |  |   |              |  |   |             
|Current liabilities:                                                                       |  |   |              |  |   |             
|Line of credit, related party                                                              |  | $ | 965,313      |  | $ | 984,842     
|Related party payables                                                                     |  |   | 500,989      |  |   | 1,254,681   
|Compensation payable                                                                       |  |   | 60,297       |  |   | 11,979      
|Severance liability                                                                        |  |   | 620,613      |  |   | 620,613     
|Accounts payable and accrued expenses                                                      |  |   | 2,788,290    |  |   | 2,610,521   
|Deferred revenue                                                                           |  |   | 180,595      |  |   | 123,228     
|Warrant liability                                                                          |  |   | -            |  |   | 88,997      
|Convertible notes payable, net of discounts                                                |  |   | 823,524      |  |   | 605,887     
|Notes payable, current portion                                                             |  |   | 325,343      |  |   | 325,343     
|Capital leases payable, current portion                                                    |  |   | 6,997        |  |   | 11,125      
|Total current liabilities                                                                  |  |   | 6,271,961    |  |   | 6,637,216   
|                                                                                           |  |   |              |  |   |             
|Notes payable, less current portion                                                        |  |   | -            |  |   | -           
|Total liabilities                                                                          |  |   | 6,271,961    |  |   | 6,637,216   
|                                                                                           |  |   |              |  |   |             
|Commitments and contingencies (See Note 5)                                                 |  |   |              |  |   |             
|                                                                                           |  |   |              |  |   |             
|Stockholders' deficit:                                                                     |  |   |              |  |   |             
|Preferred stock - $0.001 per value, 5,000,000 shares authorized, 0 issued and outstanding. |  |   | -            |  |   | -           
|Common stock, $0.001 par value, 650,000,000 shares authorized, 293,454,717                 |  |   |              |  |   |             
|and 238,893,492 shares issued and outstanding as of June 30, 2011 and                      |  |   |              |  |   |             
|December 31, 2010, respectively                                                            |  |   | 293,509      |  |   | 238,889     
|Additional paid-in capital                                                                 |  |   | 39,136,650   |  |   | 34,700,650  
|Accumulated deficit                                                                        |  |   | (43,455,710) |  |   | (39,348,348)
|Total stockholders' deficit                                                                |  |   | (4,025,551)  |  |   | (4,408,809) 
|Total liabilities and stockholders' deficit                                                |  | $ | 2,246,410    |  | $ | 2,228,407   

The accompanying notes are an integral part of these condensed consolidated financial statements

1

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MMRGLOBAL, INC.  
                                      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

|                                                     |  |  |   | Three Months Ended |  |   | Six Months Ended
|---------------------------------------------------- |  |  | - | ------------------ |  | - | ----------------
|                                                     |  |  |   | June 30,           |  |   | June 30,        
|                                                     |  |  |   | 2011               |  |   | 2010            
|                                                     |  |  |   | (Unaudited)        |  |   | (Unaudited)     
|                                                     |  |  |   |                    |  |   |                 
|Revenues                                             |  |  |   |                    |  |   |                 
|Subscriber                                           |  |  | $ | 64,637             |  | $ | 87,346          
|MMR Pro                                              |  |  |   | 101,000            |  |   | 108,636         
|License Fees-Biotech                                 |  |  |   | -                  |  |   | 115             
|Total revenues                                       |  |  |   | 165,637            |  |   | 196,097         
|Cost of revenues                                     |  |  |   | 78,331             |  |   | 160,376         
|Gross profit                                         |  |  |   | 87,306             |  |   | 35,721          
|General and administrative expenses                  |  |  |   | 1,053,986          |  |   | 1,154,998       
|Sales and marketing expenses                         |  |  |   | 658,653            |  |   | 598,871         
|Technology development                               |  |  |   | 78,602             |  |   | 64,085          
|Loss from operations                                 |  |  |   | (1,703,935)        |  |   | (1,782,233)     
|Change in valuation of derivative liabilities        |  |  |   | 51,199             |  |   | (3,961,083)     
|Interest and other finance charges, net              |  |  |   | (724,410)          |  |   | (2,121,322)     
|Net loss                                             |  |  | $ | (2,377,146)        |  | $ | (7,864,638)     
|                                                     |  |  |   |                    |  |   |                 
|Net loss available to common shareholders per share: |  |  |   |                    |  |   |                 
|Basic and Diluted                                    |  |  | $ | (0.01)             |  | $ | (0.04)          
|                                                     |  |  |   |                    |  |   |                 
|Weighted average common shares outstanding:          |  |  |   |                    |  |   |                 
|Basic and Diluted                                    |  |  |   | 267,576,023        |  |   | 212,834,956     

The accompanying notes are an integral part of these condensed consolidated financial statements

2

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MMRGLOBAL, INC. 
                             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                        |  |  |  |   | Six Months Ended June 30,
|--------------------------------------------------------------------------------------- |  |  |  | - | -------------------------
|                                                                                        |  |  |  |   | 2011                     
|                                                                                        |  |  |  |   | (Unaudited)              
|Operating activities:                                                                   |  |  |  |   |                          
|Net loss                                                                                |  |  |  | $ | (4,107,538)              
|Adjustments to reconcile net loss to net cash                                           |  |  |  |   |                          
|used in operating activities:                                                           |  |  |  |   |                          
|Depreciation and amortization                                                           |  |  |  |   | 98,487                   
|Change in valuation of derivative liabilities                                           |  |  |  |   | (126,795)                
|Warrants issued for services                                                            |  |  |  |   | 326,796                  
|Stock-based compensation                                                                |  |  |  |   | 721,829                  
|Common stock issued for services                                                        |  |  |  |   | 267,630                  
|Amortization of loan discount - Convertible Debt and RHL Group                          |  |  |  |   | 1,088,206                
|Gain on sale of shares                                                                  |  |  |  |   | -                        
|Subtotal - Non-cash adjustments                                                         |  |  |  |   | 2,376,152                
|Effect of changes in:                                                                   |  |  |  |   |                          
|Accounts receivable                                                                     |  |  |  |   | (29,158)                 
|Inventory                                                                               |  |  |  |   | 28,705                   
|Prepaid expenses and other current assets                                               |  |  |  |   | 47,620                   
|Deposits                                                                                |  |  |  |   | 500                      
|Accounts payable and accrued expenses                                                   |  |  |  |   | 177,769                  
|Related party payables                                                                  |  |  |  |   | 144,508                  
|Compensation & severance payable                                                        |  |  |  |   | 48,318                   
|Deferred revenue                                                                        |  |  |  |   | 57,367                   
|Subtotal - net change in operating assets & liabilities                                 |  |  |  |   | 475,629                  
|Net cash used in operating activities                                                   |  |  |  |   | (1,255,757)              
|                                                                                        |  |  |  |   |                          
|Investing activities:                                                                   |  |  |  |   |                          
|Purchase of property and equipment                                                      |  |  |  |   | (7,779)                  
|Filing of Biotech Patents                                                               |  |  |  |   | (93,037)                 
|Costs of continuing MMRPro and Website Development                                      |  |  |  |   | (153,191)                
|Net cash used in investing activities                                                   |  |  |  |   | (254,008)                
|                                                                                        |  |  |  |   |                          
|Financing activities:                                                                   |  |  |  |   |                          
|Net proceeds from convertible notes                                                     |  |  |  |   | 831,436                  
|Net proceeds from warrant exercises                                                     |  |  |  |   | 104,280                  
|Proceeds from (repayment of) equity line of credit                                      |  |  |  |   | 442,822                  
|Payments of capital lease                                                               |  |  |  |   | (4,128)                  
|Proceeds from stock option exercises                                                    |  |  |  |   | 45,503                   
|Net cash provided by financing activities                                               |  |  |  |   | 1,419,913                
|Net increase (decrease) in cash                                                         |  |  |  |   | (89,852)                 
|Cash, beginning of period                                                               |  |  |  |   | 363,689                  
|Cash, end of period                                                                     |  |  |  | $ | 273,837                  
|                                                                                        |  |  |  |   |                          
|Supplemental disclosures of cash flow information:                                      |  |  |  |   |                          
|Cash paid for interest                                                                  |  |  |  | $ | 10,319                   
|Cash paid for income taxes                                                              |  |  |  | $ | 2,865                    
|Supplemental disclosure of non-cash investing and financing activities:                 |  |  |  |   |                          
|Payment of payables through issuance of notes payable                                   |  |  |  | $ | 24,387                   
|Conversion of convertible notes payable into common stock                               |  |  |  | $ | 792,386                  
|Payment of accounts payable and related party payables through issuance of common stock |  |  |  | $ | 1,051,908                

The accompanying notes are an integral part of these condensed consolidated financial statements

3

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MMRGLOBAL, INC. 
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
June 30, 2011

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION

MMRGlobal, Inc. ("MMRGlobal," the "Company," "we,"
"our," or "us"), through its wholly-owned operating subsidiary, MyMedicalRecords, Inc. ("MMR"),
provides secure and easy-to-use online Personal Health Records ("PHRs") and electronic safe deposit box storage solutions,
serving consumers, healthcare professionals, employers, insurance companies, financial institutions, and professional
organizations and affinity groups. MMR is an integrated service provider on Google Health and on July 22, 2011 signed an
agreement with Microsoft to begin the process of integrating with Microsoft's Healthvault.

The MyMedicalRecords PHR enables individuals and families to access their medical records and other important
documents, such as birth certificates, passports, insurance policies and wills, anytime from anywhere using the Internet. The
MyMedicalRecords PHR is built on proprietary, patented technologies to allow documents, images and voicemail messages to
be transmitted and stored in the system using a variety of methods, including fax, phone, or file upload without relying on any
specific electronic medical record platform to populate a user's account. Our professional offering, MMRPro, is a document
management and imaging system designed to give a physicians' office an easy and cost-effective entry level solution to digitize
paper-based medical records and share them with patients in real time through an integrated patient portal located at
MMRPatientView.com.  MMR has become an Independent Software Vendor Partner with Kodak to deliver an integrated
turnkey entry level EMR solution for healthcare professionals.

On January 27, 2009, Favrille, Inc., or Favrille, conducted a reverse merger with MMR, which we refer to as the Merger.
Pursuant to the terms of the Merger, all of the outstanding common and preferred stock of MMR was cancelled and the former
stockholders of MMR received an aggregate of 79,812,116 shares of Favrille common stock.  On February 9, 2009,
MMR changed its corporate name to MMR Information Systems, Inc., or MMRIS after completion of the reverse merger with
Favrille.  Effective June 15, 2010, MMRIS changed its corporate name to MMRGlobal, Inc. upon stockholder approval at our
annual stockholder meeting. The name change to MMRGlobal more accurately reflects our global business imprint.  In
addition, MMRGlobal assumed the obligations of MMR under its outstanding stock options and warrants, which, pursuant to
the terms of the Merger, represented the right to receive an aggregate 12,787,080 shares of MMRGlobal common stock at the
effective time of the Merger. In connection with the Merger, MMR became our wholly-owned subsidiary, with the former
stockholders of MMR collectively owning shares of our common and preferred stock representing approximately 60.3% of the
voting power of our outstanding capital stock.

For accounting purposes, we treated the Merger as a reverse acquisition with MMR being the
accounting acquirer. Accordingly, the historical financial results prior to the Merger are those of MMR. We include the results of
operations for Favrille in our consolidated financial results beginning on January 27, 2009.

MMR was incorporated in Delaware in 2005, MMRGlobal was incorporated in Delaware in 2000
and both are headquartered in Los Angeles, CA.

Principles of Consolidation

The consolidated financial statements include the accounts of MMRGlobal, and its wholly-owned
subsidiary MMR. We eliminated all intercompany transactions and balances upon consolidation.

Basis of Presentation

We have prepared MMRGlobal's accompanying consolidated unaudited financial statements in
accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial
statements and with instructions to Form 10-Q pursuant to the rules and regulations of Securities and Exchange Act of 1934,
as amended, or the Exchange Act and Article 8-03 of Regulation S-X promulgated under the Exchange Act. Accordingly, these
financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In
the opinion of our management, we have included all adjustments considered necessary (consisting of normal recurring
adjustments) for a fair presentation. Operating results for the three and six months ended June 30, 2011 are not indicative of
the results that may be expected for the fiscal year ending December 31, 2011. You should read these unaudited condensed
consolidated financial statements in conjunction with the audited financial statements and the notes thereto included in our
annual report on Form 10-K for the year ended December 31, 2010.

4

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Management's Plan

As of June 30, 2011, our current liabilities exceeded our current assets by $5.2 million. Furthermore, during the six
months ended June 30, 2011, we incurred losses of $4.1 million.

At June 30, 2011 and December 31, 2010, we had $273,837 and $363,689, respectively, in cash and cash equivalents.
Historically, we issued capital stock, sold debt and equity securities and received funds from The RHL Group, Inc. (a significant
stockholder that is wholly-owned by our Chairman, Chief Executive Officer and President) to operate our business. Although
we received additional funding from The RHL Group pursuant to the Fifth Amended and Restated Note dated April 29, 2011,
we will still be required to obtain additional financing in order to meet installment payment obligations resulting from settlement
payments with various creditors, which we refer to as the Creditor Plan and the previously existing obligations under the
subordinated secured indebtedness to The RHL Group, which had a balance of $1,391,587 at June 30, 2011. As a result of the
above, we express uncertainty about our ability to continue as a going concern.

Our management intends to continue to utilize our available line of credit with The RHL Group (see Note 3), if necessary to
address our uncertainty to continue as a going concern. At June 30, 2011, we had approximately $1,608,000 remaining as
available under The RHL Group line of credit. Additionally, we already began and plan to continue to utilize portions of our
standby equity line facility with Dutchess Opportunity Fund, II, L.P. Furthermore, we plan to continue to sell additional debt and
equity securities, continue to settle our existing liabilities through issuance of equity securities, explore other debt financing
arrangements, continue to increase our existing subscriber and affiliate customer base and sell MMRPro products to obtain
additional cash flow over the next twelve months. We cannot assure you that funds from these sources will be available when
needed or, if available, will be on terms favorable to us or to our stockholders. If we raise additional funds by issuing equity
securities, the percentage ownership of our stockholders will be reduced, stockholders may experience additional dilution, or
such equity securities may provide for rights, preferences or privileges senior to those of the holders of our common stock.

If we are unable to utilize our available line of credit with The RHL Group, our standby equity line with Dutchess, or obtain
suitable alternative debt financing, our ability to execute our business plan and continue as a going concern may be adversely
affected.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) MANAGEMENT'S USE OF ESTIMATES

Our preparation of financial statements in accordance with GAAP requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of net revenue and expenses during each reporting period. On an ongoing basis, our
management evaluates its estimates, including those related to revenue recognition, allowances for doubtful accounts, the
valuation of deferred income taxes, tax contingencies, long-lived and intangible assets, derivative liabilities and stock-based
compensation. Management bases these estimates on historical experience and on various other factors that management
believes to be reasonable under the circumstances.  You should be aware that actual results could differ from those
estimates.

(b) CASH AND CASH EQUIVALENTS

We consider cash equivalents to be only those investments that are highly liquid, readily
convertible to cash and with maturities of 90

days or less at the purchase date. We maintain our cash in bank deposit accounts that, at times, may exceed federally
insured limits. We have not experienced any losses in such accounts and believe that we are not exposed to any significant
credit or deposit risk on our cash. We had cash and cash equivalents of $273,837 and $363,689 as of June 30, 2011 and
December 31, 2010, respectively.

(c) TRADE AND OTHER RECEIVABLES

Receivables represent claims against third parties that will be settled in cash. The carrying value
of receivables, net of an allowance for doubtful accounts, if any, represents their estimated net realizable value. We estimate
the allowance for doubtful accounts, if any, based on historical collection trends, type of customer, the age of outstanding
receivables and existing economic conditions. If events or changes in circumstances indicate that specific receivable balances
may be impaired, we give further consideration to the collectability of those balances and the allowance is adjusted
accordingly. We write off past due receivable balances when collection efforts have been unsuccessful in collecting the amount
due.

5

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(d) INVENTORIES

We state inventories at the lower of standard cost (which approximates cost determined on a first-in, first-out basis) or
market.  We write down the value of inventories for estimated excess and obsolete inventories based upon assumptions about
future demand and market conditions.  Inventories consist of finished goods.  Inventory reserves, once established, are only
reversed upon sale or disposition of related inventories.

(e) FAIR VALUE OF FINANCIAL INSTRUMENTS

ASC 820-10, Fair Value Measurements and Disclosures, requires entities to disclose the
fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is
practicable to estimate fair value. ASC 820-10 defines the fair value of a financial instrument as the amount at which the
instrument could be exchanged in a current transaction between willing parties. As of June 30, 2011 and December 31, 2010,
the carrying value of accounts receivable, deposits, related party payables, compensation payable, severance liabilities, and
accounts payable and accrued expenses approximates fair value due to the short-term nature of such instruments.  The
carrying value of short-term debt approximates fair value as the related interest rates approximate rates currently available to
us.



We utilize ASC 820-10 for valuing financial assets and liabilities measured on a recurring basis.
ASC 820-10 defines fair value, establishes a framework for measuring fair value and generally accepted accounting principles,
and expands disclosures about fair value measurements. This standard applies in situations where other accounting
pronouncements either permit or require fair value measurements. ASC 820-10 does not require any new fair value
measurements.

Accounting guidance also establishes a fair value hierarchy which requires an entity to maximize
the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The standard describes three levels of inputs that may be used to measure fair value:

| | Level  1: | Quoted prices in active markets for identical or similar assets and liabilities.                                                                                                                             
| | --------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Level  2: | Quoted prices for identical or similar assets and liabilities in markets that are not active or observable
inputs other than quoted prices in active markets for identical or similar assets and liabilities.
| | Level  3: | Unobservable inputs that are supported by little or no market activity and that are significant to the fair
value of the assets or liabilities.                                                              

In determining the appropriate fair value of the warrant liability, we used Level 3 inputs for our valuation methodology. We
applied the Black-Scholes model to value the warrant liability. See Note 7 for the inputs used in the Black-Scholes option
valuation model.

(f) PROPERTY AND EQUIPMENT

We state property and equipment at cost. We state equipment under capital leases at the present value of the minimum
lease payments. We calculate depreciation using the straight-line method, based upon the following estimated useful
lives:

Furniture and Fixtures: 5 Years

Computer Equipment: 5 Years

When we retire or dispose of items, we charge or credit income for the difference between the net book value of the asset
and the proceeds realized thereon.

We charge expenditures for maintenance and repairs to operations as incurred while we capitalize renewals and
betterments.

We have pledged as collateral all property and equipment, along with all other of our assets, for a line of credit from The
RHL Group, a related party (see Note 3 - Related Party Note Payable).

6

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(g) INTANGIBLE ASSETS

Intangible assets are comprised of website and software development costs, domain names and
patents.  We account for website and software development costs in accordance with ASC 350-50, Website Development
Costs, and ASC 985-20, Costs of Software to Be Sold, Leased or Marketed.  Pursuant to ASC 350-50 and 985-20,
we capitalize internally developed website and software costs when the website or software under development has reached
technological feasibility. We amortize these costs, typically over an estimated life of five years, using the larger of the amount
calculated using the straight-line method or the amount calculated using the ratio between current period gross revenues and
the total of current period gross revenues and estimated future gross revenues. At each balance sheet date, we evaluate the
unamortized capitalized website and software costs compared to the net realizable value. We then write off the amount by
which the unamortized capitalized website costs exceed its net realizable value.  During the six months ended June 30, 2011
and 2010, there were no impairment charges recorded.

We account for domain names and patents in accordance with ASC 350-30, General
Intangibles Other than Goodwill.  We capitalize patent costs representing legal fees associated with filing patent
applications and amortize them on a straight-line basis.  We are in the process of evaluating our patents' estimated useful life
and will begin amortizing the patents when they are brought to the market or otherwise commercialized.  We amortize
identifiable intangible assets over their estimated useful lives as follows:

Website and Software Development Costs: 5 Years

Domain Name: 5 Years

(h) IMPAIRMENT OF LONG-LIVED ASSETS AND INTANGIBLES

We account for long-lived assets, which include property and equipment and identifiable
intangible assets with finite useful lives (subject to amortization), in accordance with ASC 350-30.  ASC 350-30 requires that
we review long-lived assets for impairment whenever events or changes in circumstances indicate that we may not recover the
carrying amount of an asset. We measure recoverability by comparing the carrying amount of an asset to the expected future
undiscounted net cash flows generated by the asset. If we determine that the asset may not be recoverable, or if the carrying
amount of an asset exceeds its estimated future undiscounted cash flows, we recognize an impairment charge to the extent of
the difference between the fair value and the asset's carrying amount.  We had no impairment charges during the six months
ended June 30, 2011 and 2010.

(i) REVENUE RECOGNITION

We generate our revenues from services, which are comprised of providing electronic access to
consumer medical records and other vital documents, providing document imaging and storage solutions to professionals in
the medical field as well as the legal, banking and other fields giving them the ability to share documents with patients and
clients, and the licensing of our services and biotechnology assets. We recognize revenue only when the price is fixed or
determinable, persuasive evidence of an arrangement exists, the service is performed, and we reasonably are assured of
collectability of the resulting receivable.

Our subscriber revenues consist of annual and monthly recurring retail subscriptions and usage-based fees, which are
primarily paid in advance by credit card, and corporate accounts that are based on either an access-fee or actual number of
users, and in each case billed in advance at the beginning of each month of service. We defer the portions of annual recurring
subscription fees collected in advance and recognize them on a straight line basis over the subscription period.

We grant exclusive licenses for the sale and marketing of our services in international territories
in consideration of an up-front license fee and an ongoing royalty. The royalty fee is usually a percentage of revenue earned by
the licensee and there usually are certain minimum guarantees. We defer the recognition of license fee revenues received in
advance from international licensees for the grant of the license and recognized then over the period covered by the
agreement. We defer the recognition of minimum guaranteed royalty payments received in advance and recognize them over
the period to which the royalty relates. We include all such revenues under "License Fees." In those cases where a license
agreement contains multiple deliverables, we account for the agreement in accordance with ASC 605-25, Revenue
Recognition - Multiple-Element Arrangements.

We recognize revenue on sales of our MMRPro system in accordance with ASC 605-25, Revenue Recognition,
Multiple-Element Arrangements. We have also adopted Accounting Standards Update ("ASU") 2009-13,
"Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements, a consensus of the FASB Emerging
Issues Task Force" effective January 1, 2010.

7

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Our multiple-deliverable arrangements consist solely of our MMRPro product. Significant deliverables within these
arrangements include sophisticated scanning equipment, various licenses to use third party software, a license to use our
proprietary MMRPro application software, dedicated telephone lines, secure online storage and warranties.

We determined all elements to be separate units of accounting as they have standalone value to the customers and/or
they are sold by other vendors on a standalone basis. Delivery of the hardware, software licenses and certain software
elements of these arrangements occur at the inception of the agreement. We deliver installation and training at the inception of
the agreement. We provide telephone lines and online secure storage over the three year term of the agreement. We include
warranties in the arrangements, however the third party product manufacturer, and not us, is obligated to fulfill such warranties.
The contracts are paid in advance and are not refundable.

We allocate the revenue derived from these arrangements among all the deliverables. We base such allocation on the
relative selling price of each deliverable. With the exception of our proprietary MMRPro application software, we use third party
evidence to set the selling prices used for this allocation. In all such cases, third parties sell the same or very similar products.
For the MMRPro application software, we estimate the selling price based on recent discussions regarding licensure of that
particular application on a standalone basis. To date, we have not licensed this software on a standalone basis.

We recognize the allocated revenue for each deliverable in accordance with SEC Staff Accounting Bulletin
("SAB") No. 104, Topic 13: Revenue Recognition. Under this guidance, we recognize revenue when
persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and
determinable and collectability is reasonably assured. This results in us recognizing revenue for the hardware, certain software
and the warranties upon delivery to the customer, for the installation and training upon completion of these services, and
ratably over the contract period for the software licenses, telephone lines and online secure storage.

Revenue from the licensing of our biotech assets may include non-refundable license and up-front fees, non-refundable
milestone payments that are triggered upon achievement of a specific event and future royalties or lump-sum payments on
sales of related products.  For agreements that provide for milestone payments, such as the Celgene Agreement, we adopted
ASC 605-28-25, Revenue Recognition, Milestone Method.

(j) INCOME TAXES AND UNCERTAIN TAX POSITIONS

We account for income taxes in accordance with ASC 740-10, Income Taxes.  We
recognize deferred tax assets and liabilities to reflect the estimated future tax effects, calculated at the tax rate expected to be
in effect at the time of realization. We record a valuation allowance related to a deferred tax asset when it is more likely than
not that some portion of the deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the
effects of the changes in tax laws and rates of the date of enactment.

ASC 740-10 prescribes a recognition threshold that a tax position is required to meet before
being recognized in the financial statements and provides guidance on recognition, measurement, classification, interest and
penalties, accounting in interim periods, disclosure and transition issues. We classify  interest and penalties as a component of
interest and other expenses. To date, we have not been assessed, nor have we paid, any interest or penalties.

We measure and record uncertain tax positions by establishing a threshold for the financial statement recognition and
measurement of a tax position taken or expected to be taken in a tax return.  Only tax positions meeting the more-likely-than-
not recognition threshold at the effective date may be recognized or continue to be recognized.

(k) ADVERTISING

We expense advertising costs as we incur them.  Advertising expense for the three and six
months ended June 30, 2011 amounted to $27,468 and $74,623, respectively, while advertising expenses for the three and six
months ended June 30, 2010 amounted to $100,000.

(l) SHARE-BASED COMPENSATION

We account for share-based compensation in accordance with ASC 718-20, Awards
Classified as Equity.  We apply ASC 718-20 in accounting for stock-based awards issued to employees under the
recognition of compensation expense related to the fair value of employee share-based awards, including stock options and
restricted stock. Determining the fair value of options at the grant date requires judgment, including estimating the expected
term that stock options will be outstanding prior to exercise, the associated volatility and the expected dividends. Judgment is
required in estimating the amount of share-based awards expected to be forfeited prior to vesting. If actual forfeitures differ
significantly from these estimates, share-based compensation expense could be materially impacted.

8

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We account for options and warrants issued to non-employees in accordance with ASC 505-50,
Equity-Based Payments to Non-Employees. We treat options and warrants issued to non-employees the same as those
issued to employees with the exception of determination of the measurement date. The measurement date is the earlier of (1)
the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date
at which the counterparty's performance is complete. Options and warrants granted to consultants are valued at their
respective measurement dates, and recognized as expense based on the portion of the total consulting services provided
during the applicable period. As further consulting services are provided in future periods, we will revalue the associated
options and warrants and recognize additional expense based on their then current values.

We estimate the fair value of each stock option on the date of grant using the Black-Scholes
option pricing model. We determine assumptions relative to volatility and anticipated forfeitures at the time of grant.  We valued
grants of stock options and warrants during the three and six months ended June 30, 2011 and 2010 using the following
assumptions.

|                        |  | June 30, 2011     |  | June 30, 2010    
|----------------------- |  | ----------------- |  | -----------------
|                        |  | (Unaudited)       |  | (Unaudited)      
|                        |  |                   |  |                  
|Expected life in years  |  | 5 - 10 Years      |  | 5 - 10 Years     
|Stock price volatility  |  | 147.89% - 147.89% |  | 111.85% - 128.82%
|Risk free interest rate |  | 0.56% - 3.36%     |  | 2.38% - 3.87%    
|Expected dividends      |  | None              |  | None             
|Forfeiture rate         |  | 0%                |  | 0%               

We base the assumptions used in the Black-Scholes models upon the following data: (1) our use of the contractual life of
the underlying non-employee warrants as the expected life; the expected life of the employee options used in this calculation is
the period of time the options are expected to be outstanding and has been determined based on historical exercise
experience; (2) Beginning in 2011, the volatility rate was calculated based on historical trading data of the underlying shares
since January 1, 2009; (3) We base the risk free interest rate on published U.S. Treasury Department interest rates for the
expected terms of the underlying options or warrants; (4) We base expected dividends on historical dividend data and
expected future dividend activity; and (5) We base the expected forfeiture rate on historical forfeiture activity and assumptions
regarding future forfeitures based on the composition of current grantees.

(m) NET INCOME/LOSS PER SHARE

We apply the guidance of ASC 260-10, Earnings Per Share for calculating the basic and diluted loss per share. We
calculate basic loss per share by dividing the net loss attributable to common stockholders by the weighted average number of
common shares outstanding. We compute diluted loss per share similar to basic loss per share except that the denominator is
increased to include the number of additional common shares that would have been outstanding if the potential shares had
been issued and if the additional shares were dilutive. We exclude common equivalent shares from the computation of net loss
per share if their effect is anti-dilutive.

We excluded all potential common shares from the computation of diluted net loss per common share for the three and six
months ended June 30, 2011 and 2010 because they were anti-dilutive due to our net loss position. Stock options and
warrants excluded from the computation totaled 90,509,649 shares for the three and six months ended June 30, 2011 and
76,047,221 shares for the three and six months ended June 30, 2010.

(n) RESEARCH, DEVELOPMENT AND ENGINEERING

We expense research, development and engineering costs as incurred and presented as technology development in the
accompanying consolidated statements of operations.  We capitalize and amortize costs for software development relating to
our website incurred subsequent to establishing technological feasibility, in the form of a working model, over their estimated
useful lives.

9

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(o) CONCENTRATIONS

For the three months ended June 30, 2011, our four largest customers (PCS International at $79,574, Coverdell at
$18,509, Medicalert at $11,379, and E-Mail Frequency at $11,070) accounted for approximately 75.1% of our total revenue.

For the six months ended June 30, 2011, our four largest customers (Celgene at $500,000, PCS International at $79,574,
Coverdell at $36,459, and Medicalert at $21,879) accounted for approximately 86.5% of our total revenue.

For the three months ended June 30, 2010, the Company's four largest customers accounted for approximately 68.2% of
the Company's total revenue.

For the six months ended June 30, 2010, these same four customers accounted for approximately 69.6% of the
Company's total revenue.

(p) RECENT ACCOUNTING PRONOUNCEMENTS

In October 2009, the FASB issued ASU No. 2009-13, Multiple-Deliverable Revenue
Arrangements - a consensus of the FASB Emerging Issues Task Force, that provides amendments to the criteria for
separating consideration in multiple-deliverable arrangements. As a result of these amendments, multiple-deliverable revenue
arrangements will be separated in more circumstances than under existing U.S. GAAP. The ASU does this by establishing a
selling price hierarchy for determining the selling price of a deliverable. The selling price used for each deliverable will be
based on vendor-specific objective evidence if available, third-party evidence if vendor-specific objective evidence is not
available, or estimated selling price if neither vendor-specific objective evidence nor third-party evidence is available. A vendor
will be required to determine its best estimate of selling price in a manner that is consistent with that used to determine the
price to sell the deliverable on a standalone basis. This ASU also eliminates the residual method of allocation and will require
that arrangement consideration be allocated at the inception of the arrangement to all deliverables using the relative selling
price method, which allocates any discount in the overall arrangement proportionally to each deliverable based on its relative
selling price. Expanded disclosures of qualitative and quantitative information regarding application of the multiple-deliverable
revenue arrangement guidance are also required under the ASU. The ASU does not apply to arrangements for which industry
specific allocation and measurement guidance exists, such as long-term construction contracts and software
transactions.  The ASU is effective beginning January 1, 2011. The adoption of this standard didn't
have a material impact on our financial statements.

In January 2010, the FASB issued ASU No. 2010-6, "Improving Disclosures About Fair Value Measurements,"
that amends existing disclosure requirements under ASC 820 by adding required disclosures about items transferring into and
out of levels 1 and 2 in the fair value hierarchy; adding separate disclosures about purchases, sales, issuances, and
settlements relative to level 3 measurements; and clarifying, among other things, the existing fair value disclosures about the
level of disaggregation. This ASU became effective during the first quarter of 2010, except for the requirement to provide level
3 activities of purchases, sales, issuances, and settlements on a gross basis, which becomes effective beginning the first
quarter of 2011.  The adoption of this standard didn't have a material impact on our financial statements.

10

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NOTE 3 - RELATED PARTY NOTE PAYABLE

On July 31, 2007, MMR entered into a promissory note agreement and a security agreement with The
RHL Group, a corporation wholly owned by Robert H. Lorsch, our Chairman, Chief Executive Officer and President, to borrow
up to $100,000 under a revolving line of credit. This agreement was subsequently superseded by an amended and restated
promissory note on August 23, 2007 under the terms of which the line amount was increased to $1 million.  Following the
Merger, on April 29, 2009, we agreed to restructure MMR's secured credit facility with The RHL Group and entered into a
Secured Credit Restructuring Agreement, or the Restructuring Agreement, with MMR, The RHL Group and Mr. Lorsch. We
issued The RHL Group a Third Amended and Restated Note and we agreed to guaranty MMR's obligations under the Third
Amended Note. On April 29, 2010, we, The RHL Group and Robert H. Lorsch entered into a Fourth Amended and Restated
Secured Promissory Note, or the Fourth Amended Note, and we agreed to guaranty MMR's obligations under the Fourth
Amended Note (the "Guaranty"). The Fourth Amended Note amends and restates the April 29, 2009 Third Amended and
Restated Secured Promissory Note Agreement. The Fourth Amended Note matures April 29, 2011, and bears interest at the
lesser of 10% or the highest rate then permitted by law, and is secured by the Security Agreement. The reserve credit line of
the Fourth Amended Noted remained at $3,000,000. In connection with the Fourth Amended Note, The RHL Group received a
$200,000 loan origination fee ("Fee") that was due and payable immediately. On October 29, 2010, the Fourth Amended Note
was renewed for an additional six-month term and the RHL Group received an additional $200,000 loan origination fee.  On
May 24, 2011, we entered into a Fifth Amended and Restated Promissory Note, or the Fifth Amended Note. The Fifth
Amended Note amended and restated that certain Fourth Amended and Restated Promissory Note by extending the maturity
date of the Existing Note for one year to April 29, 2012.

The RHL Group Note payable had a balance of $1,391,587 at June 30, 2011.  The components of the
RHL Group Note payable and the related balance sheet presentation as of June 30, 2011 are as follows: $1,266,587, which
are included in the Line of Credit, Related Party; and $125,000, which is related to deferred salary and consulting expenses
included in Related Party Payables.

Total interest expense on this note for the three months ended June 30, 2011 and 2010 amounted to $34,441 and
$30,656, respectively. Total interest expense on this note for the six months ended June 30, 2011 and 2010 amounted to
$66,069 and $66,959, respectively. The unpaid interest balance as of June 30, 2011 and December 31, 2010 was $24,577 and
$10,262, respectively.

In conjunction with the loan agreement noted above, we were required to maintain certain financial covenants, including
the requirement that we have at least $200,000 in cash in our bank accounts or such other amount as necessary to maintain
operations through the subsequent thirty (30) days and timely pay any obligations due respecting payroll and all associated
payroll taxes on and after June 30, 2011. As of June 30, 2011, we were in compliance with our financial covenants under the
terms of the Fifth Amended Note.

NOTE 4 - INCOME TAXES

Under ASC 740-270, Income Taxes - Interim Reporting, we are required to adjust our effective tax rate each
quarter to be consistent with the estimated annual effective tax rate. We are also required to record the tax impact of certain
discrete items, unusual or infrequently occurring, including changes in judgment about valuation allowances and effects of
changes in tax laws or rates, in the interim period in which they occur. In addition, we exclude jurisdictions with a projected loss
for the year or a year-to-date loss where we cannot recognize a tax benefit from our estimated annual effective tax rate. The
impact of such an exclusion could result in a higher or lower effective tax rate during a particular quarter, based upon the mix
and timing of actual earnings versus annual projections.

In accordance with ASC 740, Income Taxes, we have performed an analysis of our previous tax filings and
determined that there we did not take any positions that we considered uncertain. Therefore, we did not have any
unrecognized tax benefits as of June 30, 2011.

11

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MMR, in its capacity as the operating company taking over our income tax positions in addition to its own positions after
January 27, 2009 (see Note 1), has estimated its annual effective tax rate to be zero.  MMR has based this on an expectation
that the combined entity will generate net operating losses in 2011, and it is not likely that those losses will be recovered using
future taxable income. Therefore, no provision for income tax has been recorded as of and for the three and nine months
ended June 30, 2011.

NOTE 5 - COMMITMENTS AND CONTINGENCIES

Leases

We lease certain facilities and equipment under non-cancelable capital and operating leases, which expire at various dates
through 2013.  Effective September 1, 2010, we entered into a lease agreement to lease office space in Los Angeles,
California. The lease requires a monthly payment of $5,500 commencing in September 2010. Effective November 1, 2010, the
Company entered into a lease agreement to lease additional space adjacent to the current office space in Los Angeles,
California.  The lease requires an additional monthly payment of $3,193 commencing in November 2010.  Both leases expire
on August 31, 2013 unless renewed.  Total rent expense for the three months ended June 30, 2011 and 2010 was $32,079
and $32,405, respectively.    Total rent expense for the six months ended June 30, 2011 and 2010 was $49,465 and $49,630,
respectively.  Future minimum lease payments as of June 30, 2011, under non-cancelable operating leases (with initial or
remaining lease terms in excess of one year) and future minimum capital lease payments are as follows:

|Year Ending                  |  |   | Operating |  |   | Capital
|---------------------------- |  | - | --------- |  | - | -------
|December 31,                 |  |   | Leases    |  |   | Leases 
|                             |  |   |           |  |   |        
|2011 (remainder of)          |  | $ | 52,158    |  | $ | 7,125  
|2012                         |  |   | 104,316   |  |   | -      
|2013                         |  |   | 69,544    |  |   | -      
|Total minimum lease payments |  | $ | 226,018   |  |   | 7,125  
|Less interest portion        |  |   |           |  |   | (128)  
|                             |  |   |           |  | $ | 6,997  

Guarantee provided by Robert H. Lorsch

On August 17, 2009, Robert H. Lorsch, our Chief Executive Officer and President, agreed to guarantee $282,641 in
payments due to a vendor for services rendered to us.  On August 17, 2009, in consideration of a personal guaranty given by
Mr. Lorsch, we granted Mr. Lorsch (i) a warrant to purchase up to 706,605 shares of our common stock, at an exercise price of
$0.13 per share, which was the closing price of our common stock on the date immediately preceding the date of grant, and (ii)
141,321 shares of our common stock. On June 11, 2010, we settled our liability with this vendor in exchange for 1,680,677
shares of our common stock, which resulted in a cancellation of the aforementioned guarantee.

On May 6, 2011, the RHL Group agreed to guarantee up to $250,000 in payments to a vendor for future services to be
rendered.  In consideration of this guarantee, the RHL Group is entitled to (i) a warrant to purchase 650,000 shares of our
common stock, at an exercise price of $0.46 per share, which was the closing price of our common stock on the date of the
transaction, and (ii) 125,000 shares of our common stock priced as of the same date. In the event that the RHL Group has to
perform on this guarantee, interest on any outstanding balance paid to the vendor by the RHL Group will be added to the
balance of the Line of Credit.  Additionally, any balances due to this vendor at any given time will reduce the amount available
under the Line of Credit. As of this date the shares have not been issued. .

Litigation Matters

From time to time, we are involved in various legal proceedings generally incidental to our business. While the result of
any litigation contains an element of uncertainty, our management presently believes that the outcome of any known, pending
or threatened legal proceeding or claim, individually or combined, will not have a material adverse effect on our financial
statements.

12

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On April 30, 2010, we filed a petition in the New York Supreme Court against the Lymphoma Research Foundation, or
LRF, a California nonprofit corporation, to enforce our rights to certain intellectual property and biotechnology assets acquired
as a part of the reverse Merger with Favrille.  LRF has claimed ownership of some of these assets, including samples and data
which were transferred to LRF in the summer of 2008.  Also on April 30, 2010, LRF filed a declaratory relief action in the New
York Supreme Court asserting its rights over the aforementioned samples and data.  We answered LRF's action and filed
counterclaims on July 6, 2010.  Although the Company and LRF have met in mediation, the litigation is ongoing.  Since then,
LRF filed a motion for summary judgment with the New York Court, seeking a determination that it was the sole owner of the
assets, and MMR filed papers in opposition of the motion. On September 21, 2010, the New York Court denied LRF's motion
on the ground that the parties had not yet had an opportunity to conduct discovery and that LRF's motion was premature.  In
November 2010, LRF and MMR settled the litigation over the biotech assets, which gave the Company exclusive control of
certain data and tissue samples created during trials of Favrille, Inc.'s FavIdTM vaccine.

The Company is planning on filing a lawsuit against a certain former officer of pre-merger Favrille, and other potential
defendants that the Company believes may have misappropriated some of Favrille's intellectual and personal property.
Information leading to the decision to file the lawsuit was discovered as a result of the filing of a lawsuit by The RHL Group,
Inc., a creditor of The Company.  The RHL Group lawsuit was filed against Dan Gold, a former officer and director of Favrille,
and other defendants for wrongful acts relating to the misappropriation of Favrille's intellectual and personal property. The RHL
Group case is currently pending in San Diego, California.  The Company's board of directors has consented to having the
same law firm represent both the RHL Group, Inc. and The Company in this matter.

At this time the potential recovery for damages is unknown, however we believe damages could be
significant.  There is no attorneys' fees provision, so if the lawsuit ends unfavorably, we will only be liable for our attorneys'
fees incurred by The Company for its representation.

On July 31, 2011, Ropers, Majeski, Kohn and Bentley (Ropers), a national firm with offices in San Francisco, Redwood
City, San Jose, Los Angeles, New York and Boston, filed a civil complaint on behalf of MyMedicalRecords.com (MMR) in the
Superior Court For the State of California, County of Los Angeles.  Named as defendants in that case are Taylor Armstrong,
Russell Armstrong and a corporation known as NuWay Digital Systems.  Among other things, the Complaint alleges that Taylor
Armstrong and her husband Russell Armstrong  breached a 2007 settlement agreement between themselves and MMR.  The
settlement agreement entitles MMR to liquidated damages of $1,000,000 for the first such breach and $250,000 for each
ensuing breach.  To date, three breaches have been alleged.  Ropers continues to investigate and will amend the Complaint in
the event that additional breaches are uncovered.

NOTE 6 - STOCKHOLDERS' DEFICIT

Preferred Stock

MMR has 5,000,000 shares of its preferred stock authorized. As of June 30, 2011 and December 31, 2010, there were no
shares of MMR preferred stock issued and outstanding.

Common Stock

As of June 30, 2011, we are authorized to issue 650,000,000 shares of common stock.  Pursuant to the Merger
Agreement, we agreed to issue (or reserve for issuance) 92,599,196 shares of our common stock to the stockholders of MMR
and the holders of options and warrants to acquire MMR common stock at the time of the Merger.

On August 5, 2010, the Company filed a Form S-1 related to the offer and resale of up to 60,000,000 shares of our
common stock, by the selling stockholder, Dutchess Opportunity Fund, II, LP, or Dutchess. Dutchess has agreed to purchase
all 60,000,000 shares pursuant to the investment agreement dated September 15, 2009, as amended on May 7, 2010, or the
Investment Agreement, between Dutchess and the Company, and an additional 230,800 shares were issued to Dutchess in
partial consideration for the preparation of the documents for its investment. Subject to the terms and conditions of the
Investment Agreement, the Company has the right to put up to $10.0 million in shares of our common stock to Dutchess.

As of June 30, 2011, the total shares of our common stock issued and outstanding amounted to 293,454,717.

13

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NOTE 7 - EQUITY ISSUANCES

Stock Option Activity

On January 21, 2010, our Board of Directors approved an increase to the number of shares authorized for issuance under
our 2001 Equity Incentive Plan, or the Plan, from 12,000,000 to 27,000,000 shares as we determined that the number of
shares remaining under the Plan was not adequate to retain our key directors, executives and managers. Our stockholders
approved the increase to the Plan on June 15, 2010.

A summary of option activity for the six months ended June 30, 2011 is presented below.  Fair value of options granted for
the six months ended June 30, 2011 was $60,044.  Options granted by MMR prior to the date of the Merger of January 27,
2009 have been retroactively restated to reflect the conversion ratio of MMR to MMRGlobal shares.

|                                         |  |             |   |           |  | Weighted-   |   |          
|---------------------------------------- |  | ----------- | - | --------- |  | ----------- | - | ---------
|                                         |  |             |   |           |  | Average     |   |          
|                                         |  |             |   | Weighted- |  | Remaining   |   |          
|                                         |  |             |   | Average   |  | Contractual |   | Aggregate
|                                         |  |             |   | Exercise  |  | Life        |   | Intrinsic
|                                         |  | Options     |   | Price     |  | (Years)     |   | Value    
|Outstanding at December 31, 2010         |  | 41,752,121  | $ | 0.12      |  | 6.72        | $ | 30,071   
|Granted                                  |  | 800,000     |   | 0.08      |  |             |   |          
|Exercised                                |  | (433,360)   |   | 0.10      |  |             |   |          
|Cancelled                                |  | (2,304,604) |   | 0.17      |  |             |   |          
|Outstanding at June 30, 2011 (unaudited) |  | 39,814,157  |   | 0.12      |  |             | $ | -        
|                                         |  |             |   |           |  |             |   |          
|                                         |  |             |   |           |  |             |   |          
|Vested and expected to vest              |  |             |   |           |  |             |   |          
|at June 30, 2011 (Unaudited)             |  | 39,814,157  | $ | 0.12      |  | 6.38        | $ | -        
|                                         |  |             |   |           |  |             |   |          
|Exercisable at June 30, 2011 (Unaudited) |  | 23,015,876  | $ | 0.13      |  | 4.84        | $ | -        

The aggregate intrinsic value in the table above is before applicable income taxes and is calculated based on the
difference between the exercise price of the options and the quoted price of the common stock as of the reporting date.

Total stock option expense recorded for the three months ended June 30, 2011 and 2010 amounted to $305,819 and
$306,585, respectively.  Total stock option expense recorded for the six months ended June 30, 2011 and 2010 amounted to
$721,829 and  $962,525, respectively.

The following table summarizes information about stock options outstanding and exercisable at June 30, 2011.

|  |             |  | Options Outstanding |  | Options Exercisable
|- | ----------- |  | ------------------- |  | -------------------
|  |             |  |                     |  |                    
|  |             |  |                     |  |                    
|  | Exercise    |  | Number              |  |                    
|  | Price       |  | of Shares           |  |                    
|  |             |  |                     |  |                    
|$ | 0.05 - 0.09 |  | 1,200,000           |  |                    
|  | 0.10 - 0.15 |  | 35,165,405          |  |                    
|  | > 0.15      |  | 3,448,752           |  |                    
|  |             |  | 39,814,157          |  |                    

14

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Warrants

On November 7, 2007, in conjunction with the registered direct offering of an aggregate of 7.4 million shares, we
issued warrants to purchase, in the aggregate, up to 4.4 million shares of our common stock at an exercise price of $2.77 per
share. These warrants were exercisable as of the date of grant through November 7, 2012. We valued the warrants
using a Black-Scholes pricing model. ASC 815-40, Contracts in Entity's Own Equity, requires freestanding contracts
that are settled in a company's own stock, including common stock warrants, to be designated as an equity instrument, asset
or liability. A contract designated as an asset or a liability must be carried at fair value until exercised or expired, with any
changes in fair value recorded in the results of operations. We applied ASC 815-40 to account for the liability as a derivative
(please see our Annual Report on Form 10-K for the year ended December 31, 2008, filed on April 15, 2009, for a more
detailed discussion).  The valuation of these warrants amounted to $0 and $88,997 as of June 30, 2011 and December 31,
2010, respectively.

Immediately prior to the Merger, we issued warrants to acquire in the aggregate 9,999,992 shares of our common stock at
an average exercise price of $0.12 per share, which expire on January 26, 2014, to certain former officers, former directors
and their affiliates who were willing to take such equity as partial or full payment for outstanding liabilities. These warrants
vested immediately and were valued on the date of grant using the Black-Scholes option pricing model.  As this transaction
occurred immediately prior to the Merger, the resulting gain on the issuance of warrants was reflected in our statement of
operations. There is no impact of this transaction recorded on the accompanying consolidated statement of operations for the
three and six months ended June 30, 2011.

On January 4, 2011, we granted a warrant to purchase up to 180,000 shares of our common stock to a third-party as
payment for services.  This warrant has an exercise price of $0.10 per share, with a contractual life  through January 4, 2016.
From the vesting commencement date, this warrant vests in 6 monthly installments.  This warrant had an aggregate value of
$14,604, of which $7,302 and $12,170 were recorded as operating expenses during the three and six months ended June 30,
2011, respectively.

On February 15, 2011, we granted a warrant to purchase up to 250,000 shares of our common stock to a third-party as
payment for services.  This warrant had an exercise price of $0.10 per share, with a contractual life through February 15, 2013.
This warrant vests annually over two years and has an aggregate value of $13,464 of which $1,683 was recorded as operating
expenses during the three and six months ended June 30, 2011.

On March 3, 2011, we granted a warrant to purchase up to 500,000 shares of our common stock to a third-party.  This
warrant had an exercise price of $0.10 per share, with a contractual life through March 3, 2013. 35% of the right to purchase
shares under the warrant vested after 30 days from the vesting commencement date.  Additional 35% of the right to purchase
shares under the warrant vested after 60 days from the vesting commencement date.  The remaining 30% will vest after 90
days from the vesting commencement date.  This warrant had an aggregate value of $22,821, which was recorded as
operating expenses during the three and six months ended June 30, 2011.

On April 15, 2011 the Company issued warrants to purchase 938,616 shares of common stock in connection to the
issuance of 6% Convertible Promissory Notes with an unrelated third-party for a principal amount of $156,436.  The term of the
warrants is five years and the exercise price is the lesser of (i) the product of fifty percent (50%) multiplied by the arithmetic
average of the volume-weighted average trading price of the Common Stock for the ten (10) consecutive trading days ending
on the day that is three (3) trading days prior to the applicable exercise date, or (ii) $0.02. This warrant had a bifurcated value
of $29,612 and accounted for as a discount on debt.  Such discount will be amortized and recorded as interest expense over
the life of the notes or at conversion.

On May 20, 2011 the Company issued warrants to purchase an aggregate of 2,710,000 shares of common stock in
connection to the issuance of Convertible Promissory Notes with five unrelated third-parties for a principal amount totaling
$540,000. The term of the warrants is three years and the exercise price is the product of fifty percent (50%) multiplied by the
arithmetic average of the volume-weighted average trading price of the common stock for the ten (10) consecutive trading days
ending on the day that is three (3) trading days prior to the investment date.  The aggregated value of these warrants
amounted to $39,668.  On the date of investment, all the aforementioned parties converted their promissory notes and
exercised the attached warrants.  As a result of the warrant exercise, the $39,668 discount was recorded as interest expense
during the three and six months ended June 30, 2011 with an offset to additional paid in capital.

15

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On May 24, 2011 the Company issued warrants to purchase 500,000 shares of common stock in connection to the
issuance of 8% Convertible Promissory Notes with an unrelated third-party for a principal amount totaling $100,000.  The term
of the warrants is three years and the exercise price is the lesser of (i) the product of fifty percent (50%) multiplied by the
arithmetic average of the volume-weighted average trading price of the Common Stock for the ten (10) consecutive trading
days ending on the day that is three (3) trading days prior to the applicable investment date, or (ii) $0.022.  This warrant had a
bifurcated value of $6,667 and accounted for as a discount on debt.  Such discount will be amortized and recorded as interest
expense over the life of the notes or at conversion.

On May 24, 2011 the Company granted 2,796,566 warrants to purchase shares of our common stock to The RHL Group in
connection with the Fifth Amended Note (see Note 3).  This warrant had an exercise price of $0.051 per share, with a
contractual life through May 24, 2016.  This warrant vested upon commencement and has an aggregate value of $105,442,
which was recorded as interest expenses during the three and six months ended June 30, 2011.

On May 26, 2011 we granted a warrant to purchase 1,000,000 shares of our common stock to a third-party as payment for
services.  This warrant had an exercise price of $0.051 per share, with a contractual life through May 26, 2012.  This warrant
will vest upon the closing of a transaction between the Company and a third-party introduced to the Company by such third-party
service provider and has an aggregate value of $20,907.

On May 26, 2011 we granted a warrant to purchase 1,000,000 shares of our common stock to a third-party as payment for
services.  This warrant had an exercise price of $0.051 per share, with a contractual life through May 26, 2012.  This warrant
vested at commencement and had an aggregate value of $20,907, which was recorded as operating expenses during the
three and six months ended June 30, 2011.

On June 1, 2011 we granted a warrant to purchase 75,000 shares of our common stock to a third-party as payment for
services.  This warrant had an exercise price of $0.06 per share, with a contractual life through June 1, 2012.  This warrant
vested at commencement and had an aggregate value of $1,048, which was recorded as operating expenses during the three
and six months ended June 30, 2011.

On June 1, 2011 we granted a warrant to purchase 1,000,000 shares of our common stock to a third-party as payment for
services.  This warrant had an exercise price of $0.06 per share, with a contractual life through June 1, 2012.  This warrant
vested at commencement and had an aggregate value of $13,975, which was recorded as operating expenses during the
three and six months ended June 30, 2011.

On June 10, 2011 we granted a warrant to purchase 1,000,000 shares of our common stock to a third-party as payment for
services.  This warrant had an exercise price of $0.055 per share, with a contractual life through June 10, 2013.  This warrant
will vest upon the holder generating at least $100,000 in gross revenue from the licensing agreement using the technology of
the Company and had an aggregate value of $31,294.

On June 10, 2011 we granted a warrant to purchase 500,000 shares of our common stock to a third-party as payment for
services.  The first tranche of 250,000 shares had an exercise price of $0.055 per share, and will vest when a licensee
generates at least $100,000 in gross revenue from the licensing agreement using the technology of the Company, or in one
year, whichever occurs first.  The second tranche of 250,000 shares had an exercise price of $0.125 per share, and will vest in
one year after the vesting of the first tranche.  This warrant had a contractual life through June 10, 2016 and had an aggregate
value of $20,102, of which $846 was recorded as operating expenses during the three and six months ended June 30,
2011.

On June 16, 2011 the Company issued a warrant to purchase 140,000 shares of common stock in connection to the
issuance of Convertible Promissory Notes with an unrelated third-party for a principal amount of $35,000. The term of the
warrant was three years and the exercise price was the lesser of (i) the product of fifty percent (50%) multiplied by the
arithmetic average of the volume-weighted average trading price of the Common Stock for the ten (10) consecutive trading
days ending on the day that is three (3) trading days prior to the applicable investment date, or (ii) $0.022.  This warrant had a
bifurcated value of $2,197.  On the date of investment, the holder converted the promissory notes and exercised the attached
warrants.  As a result of the warrant exercise, the $2,197 discount was recorded to interest expense during the three and six
months ended June 30, 2011 with an offset to additional paid in capital.

16

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A summary of the activity of the Company's warrants for the six months ended June 30, 2011 is presented below:

|                                         |             |   | Weighted Avg. 
|---------------------------------------- | ----------- | - | --------------
|                                         | Shares      |   | Exercise Price
|Outstanding at December 31, 2010         | 46,889,598  | $ | 0.35          
|Granted                                  | 12,590,182  |   | 0.05          
|Exercised                                | (4,690,000) |   | 0.06          
|Cancelled                                | (4,094,288) |   | 3.88          
|Outstanding at June 30, 2011 (Unaudited) | 50,695,492  |   | 0.37          

The following summarizes the total warrants outstanding and exercisable as of June 30, 2011.

|              | Warrants Outstanding |  | Warrants Exercisable
|------------- | -------------------- |  | --------------------
|              | Warrants             |  | Weighted Avg        
|Ranges        | Outstanding          |  | Remaining Life      
|              |                      |  |                     
|$0.05 - $0.25 | 43,829,236           |  | 3.02                
|$.026 - $2.50 | 2,166,346            |  | 1.84                
|>  $2.50      | 4,699,910            |  | 1.34                
|              | 50,695,492           |  |                     

The weighted average fair value of warrants granted during the three and six months ended June 30, 2011 amounted to
$0.03 per warrant.

Shares Issued for Services or Reduction to Liabilities

During the six months ended June 30, 2011, we issued 17,091,481 shares of common stock with a value of
$1,051,908 to non-employees and charged to the appropriate accounts for the following reasons:

|                          |  |  | Six-Months Ended June 30, 2011
|------------------------- |  |  | ------------------------------
|Purpose                   |  |  | Shares                        
|                          |  |  |                               
|Services provided         |  |  | 4,476,850                     
|Reduction of payables     |  |  | 11,864,631                    
|Capital contribution fund |  |  | -                             
|Prepaids and other assets |  |  | 750,000                       
|                          |  |  |                               
|Totals                    |  |  | 17,091,481                    

The 17,091,481 shares were not contractually restricted; however, as they were unregistered, they are restricted from sale
until the requirements of Rule 144 under the Securities Act, as amended, permit such sale. All such shares were issued at the
trading closing price on the date of issuance or a higher agreed upon price and such value was calculated therefrom.

Derivative Liabilities

On July 16, 2009, we entered into a 12% Convertible Promissory Note with an unrelated third-party for a principal amount
totaling $30,000. Subsequently, we entered into identical 12% Convertible Promissory Notes with four other unrelated third-parties
for an additional $530,000.  In addition, we granted a total of 3,110,000 warrants to purchase shares of our common
stock in connection with these convertible notes at an exercise price equal to the lesser of (i) the product of 50% multiplied by
the arithmetic VWAP of the common stock for the 10 consecutive trading days ending on the day that is 3 Trading Days prior to
the applicable exercise date or (ii) $0.15.  At the time, this resulted in the possibility that we may not have had enough
authorized shares to settle these obligations using common stock. Instead, there was the possibility, although remote, that we
may have needed to settle one or more of these contracts with cash. Consequently certain non-employee options and warrants
were accounted for as derivative liabilities as of July 16, 2009.

17

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The event giving rise to this condition was the first convertible note the Company entered into on July 16, 2009. The
condition was remedied on May 5, 2010 when all convertible notes were converted into common stock and all warrants
granted in connection with the convertible notes were exercised. On May 5, 2010, we valued these contracts again using the
Black-Scholes option valuation model and we recorded the difference between the value at December 31, 2009 of $1,534,824
and the value at May 5, 2010 of $7,448,516, as a loss on change in value of derivatives for the year ended December 31, 2010
of $5,843,735. On May 5, 2010, we reclassified the value of the derivative liabilities back into equity.

We did not designate any of the derivatives liabilities as hedging instruments.

The following is a reconciliation of all derivative liabilities:

|Value at December 31, 2010                                                        | $ | 88,997   
|--------------------------------------------------------------------------------- | - | ---------
|Change in value of derivative liability                                           |   | (114,358)
|Establishment of derivative liability for change in value of derivative liability |   | 147,057  
|Reclassification back to equity                                                   |   | (121,696)
|Value at June 30, 2011                                                            | $ | -        

The inputs used for the Black-Scholes option valuation model were as follows.

|                        | June 30, 2011     |  | December 31, 2010
|----------------------- | ----------------- |  | -----------------
|                        | (Unaudited)       |  |                  
|                        |                   |  |                  
|Expected life in years  | 0 - 5 Years       |  | 5 - 10 Years     
|Stock price volatility  | 147.89% - 148.34% |  | 111.85% - 128.94%
|Risk free interest rate | 0.03% - 2.14%     |  | 2.38% - 3.87%    
|Expected dividends      | None              |  | None             
|Forfeiture rate         | 0%                |  | 0%               

NOTE 8 - NOTES PAYABLE

Notes payable consisted of the following.

|                                                                                                                                                                                                                                     |  |   | June 30,    |  |   | December 31,
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | - | ----------- |  | - | ------------
|                                                                                                                                                                                                                                     |  |   | 2011        |  |   | 2010        
|                                                                                                                                                                                                                                     |  |   | (Unaudited) |  |   |             
|                                                                                                                                                                                                                                     |  |   |             |  |   |             
|Promissory notes payable due to the former officers of MMRGlobal as part of severance packages, due in fullon August 31, 2009 with no stated interest                                                                                |  | $ | 76,783      |  | $ | 76,783      
|                                                                                                                                                                                                                                     |  |   |             |  |   |             
|Promissory notes payable due to the two remaining officers of MMRGlobal pursuant to the Resignation and Post-Merger
Employment Arrangement, due in full on August 31, 2009 with no stated interest                                   |  |   | 25,444      |  |   | 25,444      
|                                                                                                                                                                                                                                     |  |   |             |  |   |             
|Promissory notes payable due to vendors relating to settlement of certain outstanding accounts payable,
payable in 18 equal monthly installments commencing on July 27, 2009 and ending on January 27, 2011, with no stated interest |  |   | 223,116     |  |   | 223,116     
|                                                                                                                                                                                                                                     |  |   |             |  |   |             
|Current portion                                                                                                                                                                                                                      |  |   | 325,343     |  |   | 325,343     
|Less: current portion                                                                                                                                                                                                                |  |   | 325,343     |  |   | 325,343     
|Notes payable, less current portion                                                                                                                                                                                                  |  | $ | -           |  | $ | -           

18

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NOTE 9 - CONVERTIBLE PROMISSORY NOTES

On April 15, 2011, the Company issued a Restated Convertible Promissory Note to an unrelated third-party with a
principal amount of $167,387 which included a 7% closing discount in the amount of $10,951.  This Note replaced and
terminated a promissory note originally issued to another unrelated third-party on July 26, 2010 for $150,000 plus accrued
interest of $6,436. The Restated Note is convertible at the option of the holder into common stock at a variable conversion
price of seventy percent (70%) multiplied by the lower of the arithmetic average of the volume-weighted average trading price
(VWAP) of the Common Stock for the ten (10) consecutive trading days ending on the date of the applicable conversion date,
or the closing bid on the applicable conversion date.  As of June 30, 2011, the conversion price was to be permanently fixed
based on the calculation stated above with June 30, 2011 being the 10th day.  The whole note was ratably
converted on April 15, May 16, and June 22 into 5,392,679 shares of common stock.  The Company recognized $147,057 as
interest expense related to these conversions.  In addition, the Note was treated as derivative due to the variable nature of the
conversion price for the period from April 15 through June 30.  As a result, the Company also recognized a loss of $37,798 as
a change in derivative liability for the three and six months ended June 30, 2011.

On April 15, 2011 the Company entered into 6% Convertible Promissory Note with an unrelated third-party for a principal
amount of $156,436. The Note is convertible at the option of the holder into shares of common stock at a conversion price of
seventy percent (70%) multiplied by the arithmetic average of the VWAP of the Common Stock for the ten (10) consecutive
trading days ending on the day that is three (3) trading days prior to the investment date, or $0.04.  In connection with the
Note, the Company also issued a warrant to purchase 938,616 shares of common stock.  The term of the warrants is five years
and the exercise price is the lesser of (i) the product of fifty percent (50%) multiplied by the arithmetic average of the
volume-weighted average trading price of the Common Stock for the ten (10) consecutive trading days ending on the day that is three
(3) trading days prior to the investment date, or (ii) $0.02.  We derived the fair value of the warrants issued with the Note using
the Black-Scholes option valuation model, resulting in a fair value of $29,612. The $156,436 note proceeds were allocated to
the relative fair values of the note without the warrants and of the warrants themselves on the investment date. The remainder
of the proceeds is allocated to the note portion of the transaction, resulting in a discount. We then calculated the intrinsic value
of the conversion feature on the investment date and allocated the portion of the proceeds equal to the intrinsic value of this
feature of $102,107 to paid-in capital.  We deducted the allocated fair value of the warrants and intrinsic value of the
conversion feature from the Notes, resulting in an initial value ascribed to the Notes of $24,717. Both the Notes and warrants
are still outstanding as of June 30, 2011.

On May 20, 2011 we entered into Convertible Promissory Notes with five unrelated third-parties for a principal amount
totaling $540,000. Under the terms of the agreements, principal amounts owed under the Notes become due and payable six
months from the investment date provided that, upon ten (10) days' prior written notice to the Holder, we may, in our sole
discretion, extend the maturity date for an additional six months. Some of the Notes bear an interest rate of 6%, and others
bear an interest rate of 12% per annum payable in cash or shares of common stock, or a combination of cash and shares of
common stock, at the election of the Company. These notes are convertible at the option of the holders into common stock at a
fixed conversion price ("Fixed Conversion Price") of seventy percent (70%)
multiplied by the arithmetic average of the VWAP of the common stock for the
ten (10) consecutive trading days ending on the day that is three (3) trading days prior to the applicable investment
date, or $0.031.  In connection with the Notes, the Company also issued warrants to purchase an aggregate of 2,710,000
shares of common stock. The term of the warrants is three years and the exercise price is the product of fifty percent (50%)
multiplied by the arithmetic average of the volume-weighted average trading price of the common stock for the ten (10)
consecutive trading days ending on the day that is three (3) trading days prior to the applicable investment date, or $0.022.
We derived the fair value of the warrants issued with Notes using the Black-Scholes option valuation model, resulting in a fair
value of $39,668. The $540,000 note proceeds were allocated to the relative fair values of the note without the warrants and of
the warrants themselves on the investment date. The remainder of the proceeds is allocated to the note portion of the
transaction, resulting in a discount. We then calculated the intrinsic value of the conversion feature on the investment date and
allocated the portion of the proceeds equal to the intrinsic value of this feature of $283,539 to paid-in capital.  We
deducted the allocated fair value of the warrants and intrinsic value of the conversion feature from the Notes, resulting in an
initial value ascribed to the Notes of $216,793. The initial value of the Notes is being accreted to their face value over the initial
term of the Notes using the interest method. Upon conversion, the entire unamortized discount from the face value of the
Notes is recognized as interest expense.  As of June 30, 2011, all the Notes issued on May 20, 2011 had been converted and
the related warrants are exercised in exchange for 20,129,355 shares of common stock restricted for six months under Rule
144.

19

---



On May 24, 2011 the Company entered into 8% Convertible Promissory Note with an unrelated third-party for a principal
amount totaling $100,000. Under the terms of the agreement, the principal amount owed under the Note becomes due and
payable on November 30, 2011 provided that, upon ten (10) days' prior written notice to the Holder, we may, in our sole
discretion, extend the maturity date for an additional six months.  The
Note is convertible at the option of the holder into common stock at a variable conversion price of seventy percent (70%)
multiplied by the arithmetic average of the volume-weighted average trading price of the Common Stock for the ten (10)
consecutive trading days ending on the day that is three (3) trading days prior to the investment date, or $0.03.  In
connection with the Note the Company also issued a warrant to purchase 500,000 shares of common stock. The term of the
warrants is three years and the exercise price is the lesser of (i) the product of fifty percent (50%) multiplied by the arithmetic
average of the volume-weighted average trading price of the Common Stock for the ten (10) consecutive trading days ending
on the day that is three (3) trading days prior to the applicable investment date, or (ii) $0.022.  We derived the fair value of the
warrants issued with Notes using the Black-Scholes option valuation model, resulting in a fair value of $6,667. The $100,000
note proceeds were allocated to the relative fair values of the note without the warrants and of the warrants themselves on the
investment date. The remainder of the proceeds is allocated to the note portion of the transaction, resulting in a discount. We
then calculated the intrinsic value of the conversion feature on the investment date and allocated the portion of the proceeds
equal to the intrinsic value of this feature of $46,667 to paid-in capital.  We deducted the allocated fair value of the
warrants and intrinsic value of the conversion feature from the Notes, resulting in an initial value ascribed to the Notes of
$46,666.  Concurrently, the Company amendeded an 8% Convertible Promissory Notes with the same unrelated third-party
that was originally issued on August 9, 2010.  The principal amount was amended from $200,000 to $207,000 with a new
maturity date of November 30, 2011 and conversion price of $0.03.  The calculated fair value of the conversion feature due to
this amendment amount to $92,460, resulting in an initial value ascribed to the Notes of $114,540.  The initial value of the Note
is being accreted to its face value over the initial term of the Note using the interest method.  On May 31, $50,000 of this note
was converted into 1,666,667 shares of common stock and the Company recognized $22,333 as interest expense related to
this conversion.

On June 16, 2011the Company entered into a 12% Convertible Promissory Note with an unrelated third-party for a
principal amount of $35,000. The Note is convertible at the option of the holder into common stock at a conversion price of
seventy percent (70%) multiplied by the arithmetic average of the volume-weighted average trading price (VWAP) of the
Common Stock for the ten (10) consecutive trading days ending on the day that is three (3) trading days prior to the applicable
investment date, or $0.03.  In connection with the Note, the Company also issued warrants to purchase 140,000 shares of
common stock.  The term of the warrant is two years and the exercise price is the lesser of (i) the product of fifty percent (50%)
multiplied by the arithmetic average of the volume-weighted average trading price of the Common Stock for the ten (10)
consecutive trading days ending on the day that is three (3) trading days prior to the applicable investment date, or (ii) $0.019.
As of June 30, the note was converted and the related warrants were exercised in exchange for 1,306,667 shares of common
stock restricted for six months under Rule 144.  The Company recognized $19,561 as interest expense related to these
conversions for the three and six months ended June 30, 2011.

The total interest expense attributed to all Notes and related warrants for the three months ended June 30, 2011 and 2010
was $615,677 and $1,602,266 respectively.  The total interest expense attributed to all Notes and related warrants for the six
months ended June 30, 2011 and 2010 was $921,539 and $3,560,566, respectively.

NOTE 10 - RESTRUCTURING ACTIVITIES

From May 29, 2008 to November 7, 2008, we provided notices under the federal Worker Adjustment and
Retraining Notification Act to 142 employees, including six members of senior management, that we planned to conduct a
workforce reduction at our San Diego, California facility and that their employment was expected to end on various dates
between June 6, 2008 to November 7, 2008. Immediately prior to the date of the Merger, the total severance liability
relating to former MMRGlobal employees amounted to $1,682,416. Also immediately prior to the Merger, as part of the
9,999,992 warrants issued to creditors (see Note 9), we issued warrants as settlement of $985,020 of these amounts. In
addition, we signed promissory notes with certain former executives totaling $76,783, which notes were payable in full on
August 31, 2009 (see Note 10).

As of June 30, 2011, the total remaining severance liabilities amounted to $620,613, which we reflect as severance liability
on the accompanying condensed consolidated balance sheets. This liability consists of $571,362 payable to former non-executive
employees in 18 monthly installments starting on July 27, 2009, as well as $49,251 in estimated payroll tax. We did
not make payments during the three and six months ended June 30, 2011 on these severance liabilities.

20

---



NOTE 11 - RELATED PARTY TRANSACTIONS

Our President, Chairman and Chief Executive Officer, Robert H. Lorsch, is also the Chief Executive Officer of The RHL
Group, Inc. and owns all of the capital stock of The RHL Group, Inc. Mr. Lorsch, directly and indirectly through The RHL Group,
beneficially owns approximately 22.63% our total outstanding voting stock. The RHL Group has loaned money to MMRGlobal
pursuant to a secured note. See Note 3 - Related Party Note Payable.

The RHL Group is an investment holding company which provides consulting, operational and technical services to us,
which we refer to as the RHL Services. As part of the RHL Services, The RHL Group provides us with unrestricted access to
its internal business and relationship contact database of more than 10,000 persons and entities, which includes clients of The
RHL Group and other individuals which may hold value to us. The RHL Group also provides infrastructure support to us,
including allowing us unlimited access to its equipment, and data, information management and server systems. In addition to
allowing us the use of its office support personnel, The RHL Group also has consented to allow us to utilize the full-time
services of Mr. Lorsch as our President, Chairman and Chief Executive Officer, which requires substantial time and energy
away from his required duties as The RHL Group's Chairman and Chief Executive Officer. In addition, The RHL Group has
made its President, Kira Reed, available as our spokesperson, for personal appearances, tradeshows and hosting our product
videos. Ms. Reed also manages our social networking activities.

We incurred $12,500 during the three months ended June 30, 2011 and 2010 and $25,000 during the six months ended
June 30, 2011 and 2010, toward marketing consulting services from Bernard Stolar, a director. We included in related party
payables at June 30, 2011 and December 31, 2010 $56,820 and $54,359, respectively, with respect to these services.

We also incurred $12,500 during the three months ended June 30, 2011 and 2010 and $25,000 during the six months
ended June 30, 2011 and 2010, toward marketing consulting services from Hector Barreto, a director. We included in related
party payables at June 30, 2011 and December 31, 2010 $67,075 and $31,075, respectively, with respect to these services.

We also incurred $12,500 and $97,680 during the three months ended June 30, 2011 and 2010, respectively, towards
finder's fees and/or consulting services from George Rebensdorf, a former director.  We also incurred $25,000 and $128,852
during the six months ended June 30, 2011 and 2010, respectively, toward finder's fees and/or consulting services from Mr.
Rebensdorf. We included in related party payables at June 30, 2011 and December 31, 2010 $70,200 and $40,703,
respectively, with respect to these services.

We also incurred $983 and $9,600 during the three months ended June 30, 2011 and 2010, respectively, towards
consulting services from Jack Zwissig, a director.  We also incurred $6,983 and $9,600 during the six months ended June 30,
2011, and 2010, respectively, toward consulting services from Mr. Zwissig. We included in related party payables at June 30,
2011 and December 31, 2010 $36,933 and $30,950, respectively, with respect to these services.

We contract with a significant vendor for the development and maintenance of the software applications necessary to run
our MyMedicalRecords PHR, MyESafeDepositBox and MyMedicalRecords Pro products. Our outside developer supports our
software development needs through a team of software engineers, programmers, quality control personnel and testers, who
work with our internal product development team on all aspects of application development, design, integration and support of
our products.  This vendor is also a stockholder.  For the three months ended June 30, 2011 and 2010, the total expenses
relating to this stockholder amounted to $66,069 and $0, respectively.  For the six months ended June 30, 2011 and 2010, the
total expenses relating to this stockholder amounted to $160,518 and $0, respectively.  In addition, we capitalized $97,084 of
software development costs for the six months ended June 30, 2011.  On May 6, 2011, we issued this vendor 13,152,183
shares of common stock in exchange for a reduction to accounts payable in the amount of $789,131. As of June 30, 2011 and
December 31, 2010, the total amounts due to the stockholder and included in related party payables amounted to $20,718 and
$784,278, respectively.

We incurred costs of $47,165 and $95,060 during the three and six months ended June 30, 2010, respectively, toward
consulting services from Audit Prep Services, LLC. No such costs were incurred in 2011.  Michael T. Psomas, member of Audit
Prep Services, LLC, is a stockholder of MMRGlobal. At June 30, 2011 and December 31, 2010 we had $0 and $47,316,
respectively, due to Audit Prep Services, LLC, which was recorded as a related party payable.

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On September 15, 2009, we entered into a five year agreement with E-Mail Frequency, LLC and David Loftus, Managing
Partner of E-Mail Frequency, LLC, a significant stockholder of the Company. We licensed an existing 80 million person direct
marketing database of street addresses, cellular phone numbers, e-mail addresses and other comprehensive data with E-Mail
Frequency. The agreement allows us to market, through the use of the Database, our MyMedicalRecords Personal Health
Record, MyEsafeDepositBox virtual vault, and MMRPro document management system to physicians and their patients. Under
the terms of the Agreement, we paid $250,000 to David Loftus as a one-time consulting fee in the form of 2,777,778 shares of
our common stock.  We recorded the $250,000 one-time licensee fee as a prepaid consulting fee and included in the prepaid
expenses and other current assets as of December 31, 2009. Amortization expense for the three and six months ended June
30, 2011 and 2010 was $12,500 and $25,000 respectively.  We included in related party payables at June 30, 2011 and
December 31, 2010 of $19,103, in respect to these services. Furthermore, on January 6, 2010, we entered into 12%
Convertible Promissory Notes with Mr. Loftus for a principal amount totaling $400,000 and warrants to purchase  our common
stock, which Mr. Loftus immediately converted both into shares of our common stock, for a total 8,860,606 shares of our
common stock. On July 26, 2010 and September 21, 2010, we entered into 6% Convertible Promissory Notes with Mr. Loftus
for a total principal amount of $450,000 and warrants to purchase our common stock.  On April 15, 2011, we entered into a 6%
Convertible Promissory Note with Mr. Loftus for a principal amount $156,436 and warrants to purchase our common stock.

NOTE 12 - SUBSEQUENT EVENTS

On July 21, 2011, the Company announced that the Company and Unis-Tonghe Technology (Zhengzhou) Co., Ltd.,
MMR'S Chinese Joint Venture  partner, have entered into a series of warrant purchase agreements whereby Unis-Tonghe
has the right to purchase up to four (4) million shares of the Company's common stock:  one million at 8 cents per
share, one million shares at 12 cents per share, one million at 16 cents per share, and one million
at 20 cents per share.

On July 25, 2011, the Company announced the signing of a definitive purchase agreement with Kodak for a customized
private label version of Kodak's Scan Station Pro 550 ("the Purchase Agreement").  The Purchase Agreement calls
for MMRGlobal to purchase a minimum of 135 MMRPro-ready Scan Station Pro 550's representing approximately three million
dollars in MMRPro system sales over the initial term plus the potential of millions more in MMRPro Stimulus Program revenue
over additional years.

The Purchase Agreement calls for deliveries starting immediately. The customized product will be manufactured by Kodak
exclusively for MMRGlobal and marketed as part of the MMRPro document management and imaging system
(www.mmrprovideos.com). The system comes with a version of KODAK's Capture Pro Software, which when combined with
MMR's proprietary healthcare software platform enables physicians to easily and cost-effectively digitize, archive and share
patient charts.

On August 1, 2011, the Company announced that it had recovered more than 1,000 biological samples from defendants in
a lawsuit brought last year by The RHL Group Inc.  The RHL Group is a creditor of MMRGlobal and one of the Company's
largest shareholders.  The Company also announced that on Friday, July 29, 2011, it filed a complaint in Superior Court of the
County of Los Angeles against reality television stars Taylor Ford Armstrong and Russell Lynn Armstrong as well as NuWay
Digital Systems, Inc. and others (the Armstrongs), seeking liquidated damages of $1,500,000 plus any additional claims for
$250,000 each that could surface during the litigation.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion of our financial condition and results of operations in conjunction with our
financial statements and related notes appearing elsewhere in this quarterly report on Form 10-Q and the description of our
business appearing in our Annual Report on Form 10-K for the year ended December 31, 2010 that we filed with the
SEC on March 31, 2011 (the "Form 10-K "). This discussion contains forward-looking statements, the accuracy of
which involves risks and uncertainties. Please see "Cautionary Note Regarding Forward-Looking Statements" below.  Our
actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including the
risks faced by us described in "Risk Factors" in Item 1A of the Form 10-K.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains certain forward-looking statements. The words "anticipate," "expect,"
"believe," "plan," "intend," "will" and similar expressions are intended to identify such statements. Although the forward-looking
statements in this quarterly report on Form 10-Q reflect the good faith judgment of our management, such statements are
subject to various risks and uncertainties, including but not limited to the following:

- The possible invalidity of the underlying assumptions and estimates related to our business and market;
- Possible changes or developments in economic, business, industry, market, legal and regulatory circumstances;
- Conditions and actions taken or omitted to be taken by third parties, including customers, suppliers, business partners and
competitors and legislative, judicial and other governmental authorities and officials;
- The ability to generate subscribers for our products and services given the current competitive landscape;
- Our ability to adapt our products to conform to any technical specifications necessary to benefit from stimulus package
funding;
- Our ability to raise dilutive and non-dilutive capital in order to meet our financial obligations and invest in our business to
grow revenues, including risks related to our trading in the Over the Counter market;
- Our ability to launch new products or to successfully commercialize our existing or planned products;
- Managing costs while building up an effective sales and service delivery organization for our products with our small
management team;
- Our ability to maximize our legacy biotechnology assets and otherwise protect our intellectual property assets;
- Our ability to enter into marketing arrangements with large membership and affinity organizations for our products and
maintain and grow subscribers from such arrangements, such as those noted above, particularly after the initial introductory
period; and
- Our losses incurred since our inception and our ability to achieve profitability in the near term is primarily dependent on our
ability to invest capital in our business to increase revenues while controlling and limiting expenses at a rate slower than
revenue growth.

Assumptions related to the foregoing involve judgments with respect to, among other things, future economic, competitive
and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of
which are beyond our control. Any of such assumptions could be inaccurate. You should not place undue reliance on these
forward-looking statements, which are based on our current views and assumptions. In evaluating these statements, you
should specifically consider various factors, including the foregoing risks and those outlined under "Risk Factors" in Item 1A of
our Annual Report on Form 10-K filed on March 31, 2011. Our forward-looking statements represent estimates and
assumptions only as of the date of this quarterly report on Form 10-Q. Except as required by law, we undertake no
obligation to update any forward-looking statement to reflect events or circumstances occurring after the date of this quarterly
report on Form 10-Q.

Overview

Background

We provide secure and easy-to-use online Personal Health Records ("PHRs") and electronic safe deposit box storage
solutions, serving consumers, healthcare professionals, employers, insurance companies, professional organizations and
affinity groups. MyMedicalRecords enables individuals and families to access their medical records and other important
documents, such as birth certificates, passports, insurance policies and wills, anytime from anywhere using the Internet. The
MyMedicalRecords Personal Health Record is built on proprietary, patent pending, issued and applied for technologies to allow
documents, images and voicemail messages to be transmitted and stored in the system using a variety of methods, including
fax, phone, or file upload without relying on any specific electronic medical record platform to populate a user's account. The
Company's professional offering, MMRPro, is designed to give physicians' offices an easy and cost-effective solution to
digitizing paper-based medical records and sharing them with patients in real time. MMRGlobal has become an Independent
Software Vendor Partner with Kodak to deliver an integrated turnkey EMR solution for healthcare professionals.  MMRGlobal is
also an integrated service provider on Google Health.

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For a description of our corporate organizational history prior to the date hereof, please see Note 1 to our financial
statements.

Source of Revenues

We derive our revenues from the sale of our MMRPro system, which includes a high-tech scanner, various licenses to
use third party software, a license to use MMR's proprietary MMRPro application software, dedicated telephone lines, secure
online storage and warranties. Installation and training are provided as part of the agreement. Software licenses, telephone
lines, online secure storage and warranties are provided over the three year term of the agreement. Our customers pay these
contracts in advance and are not refundable. We allocate the revenue derived from these arrangements among all the
deliverables, based on the relative selling price of each deliverable. With the exception of MMR's proprietary MMRPro
application software, we used third party evidence to set the selling prices used for this allocation. Revenues from the sales of
MMRPro systems accounted for 61% and 55.40% of our total revenues during the three months ended June 30, 2011 and
2010, respectively. Revenues from the sale of MMRPro systems accounted for 15.1% and 37.9% of our total revenues during
the six months ended June 30, 2011 and 2010, respectively.

We also derive our revenues from the provision of services, which are comprised of facilitating electronic access to
consumer medical records and other vital documents, as well as international licensing of our services. We offer our services
to subscribers either on a direct subscription basis or an "access" basis through various types of organizations, and in both
cases, we record these revenues under "Subscriber" in our income statement. On a direct subscription basis, which we use
when we market our products direct to consumers or wholesale through corporations to their employees, or through affinity and
membership organizations to their members, the subscriber pays us directly with a credit card or PayPal account either on a
monthly or annual plan. On an access basis, which we currently use only with corporations, affinity and membership
organizations, hospitals and other business to business customers, we charge a monthly fee to the organization based on the
number of users who will have access to our services through such organization, whether or not such users actually
enroll.

We are also generating revenues from the licensing of our biotech assets, which may include non-refundable license and
up-front fees, non-refundable milestone payments that are triggered upon achievement of a specific event and future royalties
or lump-sum payments on sales of related products.  We record these licensing revenues under "License Fees -
Biotech" in our income statement.  We are sometimes paid an upfront license fee and milestone payments and we
recognized these fees as revenue as payments were received.  During the three and six months ended June 30, 2011, the
Company received $0, and $500,000 from Celgene, respectively, which represents 0% and 67.8%, respectively, of the total
revenue for the reporting period.

We also have generated revenues from licensing the sale and marketing of our services internationally and, to a lesser
extent, from ancillary fee payments including web and marketing development services among others. We record these
licensing revenues under "License Fees" and other ancillary revenues under "Other Revenues" in our income
statement. When we enter into a licensing arrangement, we are sometimes paid an upfront license fee and typically receive
ongoing royalty payments that are often based on a percentage of revenue earned by our licensee.  We recognize these fees
over the license period.  When we receive ancillary one-time payments, we record them when services or products are
delivered.

Cost of Revenue

Our cost of revenue includes the cost of maintaining our voice and fax mailboxes, long-distance call transport costs, fax
and voice call processing costs, credit card transaction processing costs, web hosting and management fees, website
maintenance and support costs, costs associated with creating and mailing enrollment packages to our subscribers and the
cost of Kodak scanners. Cost of revenue also includes customer service costs. We also charge to cost of revenue our direct
selling costs, which include commissions paid to sales representatives who sell our wholesale and access based
accounts.

Operating Expenses

The largest component of our operating expenses are our general and administrative expenses, which include personnel
salaries and benefits, office rent and supplies, insurance costs, fees for legal and professional services, as well as our
expenses for corporate telecommunications and internet access not associated with our products. Our operating expenses
also include sales and marketing expenses (which include expenses associated with attending trade shows and travel costs,
as well as a portion of personnel salaries allocated to sales and marketing activities), as well as technology development
expenses (which includes expenses related to research and development as well as a portion of personnel salaries allocated
to development activities).

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Recent Accounting Pronouncements

For a description of recent accounting pronouncements and how we apply such pronouncements to our financial
statements, see the accompanying notes to our consolidated financial statements appearing elsewhere in this Quarterly Report
on Form 10-Q.

Factors Affecting Future Results

Exploiting MMRGlobal Biotech Assets and Patents

We continue to work with scientists and experienced venture capitalists to assist us in generating revenue through
licensing agreements as would be usual and customary in the biotech industry and which could include milestone payments as
the term is generally used in the industry.  We will also explore partnerships with manufacturers and or investors of
and in Biotech products and services.  These are assets and other intellectual property that we acquired from our
reverse merger with Favrille.  Those assets include, but are not limited to, data from our pre-Merger clinical vaccine
trials, the Specifid vaccine, the anti-CD20 antibodies and certain patient samples.

Beginning in June 2009, MMRGlobal, Inc. filed various national phase filings from the Patent Cooperation Treaty
patent application directed to anti-CD20 monoclonal antibodies, including in the United States, Australia, Brazil, Canada,
China, Europe, India, Japan, South Korea and Mexico.  We acquired the Patent Cooperation Treaty application and
anti-CD20 monoclonal antibody assets through the reverse merger with Favrille, Inc., a biopharmaceutical company, in
January 2009. These patent applications remain pending in the United States and various countries awaiting formal
patent examination.

We also acquired certain intellectual property rights involving B & T cell vaccine technology relating to the FavID®
vaccine in various stages in the United States and foreign countries through its reverse merger with Favrille, Inc. in January
2009.  Various U.S. and foreign patent applications have been successfully revived to
reinstate the examination process of the patent applications in countries of commercial interest.  In May
2010, U.S. Patent No. 6,911,204 directed towards methods of treating B-cell mediated malignancies was revived.  In
November 2010, a patent was awarded in Singapore relating to the B-Cell Pathologies.  In December 2010, a similar
patent was awarded in Mexico.  We continue to pursue and maintain available intellectual property protection
relating to the FavId/SpecifID vaccine intellectual property portfolio in the United States and major foreign markets of
interest.  The Company has been working to perfect the patent condition of the biotech assets obtained from the
reverse merger with Favrille, Inc. for more than a year and a half.  As a result, MMRGlobal also has patent
applications pending in 13 foreign countries of commercial interest that provide competitive advantages for this biotechnology,
including its SpecifID vaccine.

The Company has relied upon numerous consultants in its efforts to accelerate bringing to market its anti-CD20
monoclonal antibodies. Anti-CD20 antibodies are useful in treating B-Cell malignancies, including Non-Hodgkin Lymphoma
(NHL) and additional B-Cell mediated conditions such as rheumatoid arthritis. The Company understands that MMRF's anti-CD20
antibody asset is potentially a candidate for the next generation Rituximab, marketed under the trade name Rituxan®
in the United States by Biogen Idec and Genentech (wholly owned member of the Roche Group) and under the name
MabThera® by Roche in the rest of the world except Japan, where it is co-marketed by Chugai and Zenyaku Kogyo Co.
Ltd. Rituxan is one of the world's most successful monoclonal antibodies with reported total sales in 2008 in excess of US $5.4
billion.

On December 22, 2010, the company entered into a non-exclusive agreement with Celgene to license the use of the
Company's clinical and scientific data related to targeted immunotherapies for cancer and other disease treatments to
stimulate a patient's immune response and certain other confidential information.  In consideration for the rights granted under
the Agreement, Celgene will pay the Company certain upfront fees and development milestones.  When a milestone is
reached it automatically triggers a payment to MMR.

The Company also filed for extension of the Company's Patent Cooperation Treaty (PCT) patent application on anti-CD20
monoclonal antibodies to the national phase through filings in major European, Asian, North American, and South American
markets.

MMRPro

MMRPro was launched in late 2009. During the second quarter of 2010 we sold our first MMRPro systems to
physician offices and value-added resellers. We projected full deployment on a nationwide basis during the third quarter.
However, as a result of tfeedback from what Kodak calls "voice of customer," Kodak advised us that they would be introducing
a new scanning  solution called the Scan Station 550 that to replace the Scan Station 520 which was originally a part of the
MMRPro solution.

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We also plan on building strategic relationships with surgery centers and hospitals as part of our marketing strategies for
MMRPro.  These strategic relationships will enable staff physicians the ability to digitize patient charts prior to
admissions streamlining the admissions process for the patients to the hospital.

MMRPro "Stimulus Program"

In addition to its product functionality, we also market MMRPro by including a "Stimulus Program" for the health care
professional that creates a revenue opportunity for its users from patient upgrades. We believe that this Stimulus Program can
generate at least as much money for the average group practice over a three year term as the $44,000 that is possible through
the provisions of the U.S. HITECH Act over a five year period.

Hispanic Marketing

As a result of our relationship with Kodak, Kodak became a sponsor of The Latino Coalition at its annual Economic
Summit for Hispanic entrepreneurs on May 5th, 2010.  MMR and Kodak plan on working together to introduce the
MMR Personal Health Record, and where relevant MMRPro, which includes Kodak's document imaging solution, to physician
groups and hospitals serving the Latino community.  Our relationship with The Latino Coalition started in the first
quarter of 2009. The Latino Coalition is a non-profit organization with nearly 600,000 business members nationwide. Mr.
Barreto, one of the members of our Board of Directors, is the Chairman of the Latino Coalition.

Direct Marketing

On September 15, 2009, we entered into a into a five year agreement to license an existing 80 million person direct
marketing database of street addresses, cellular phone numbers, e-mail addresses and other comprehensive data with E-Mail
Frequency, LLC. The agreement allows us to market, through the use of this database, our MyMedicalRecords Personal
Health Record, MyEsafeDepositBox virtual vault, and MMRPro integrated document management system for physicians and
their patients. We are continuing to identify opportunities to utilize the database to market to consumers and to sell
MMRPRo to physicians and small group practices.

We have contracted with an outbound telemarketing service organization in an effort to sell Personal Health Records and
MyEsafeDepositBox direct to consumers.

MyEsafeDepositBox

We have introduced our redesigned upgraded version of MyEsafeDepositBox which will includes all the features of our
MyMedicalRecords.com product. We will market MyEsafeDepositBox direct to consumers, financial institutions and is also
serving as the infrastructure for Chartis products and services.

MMRGlobal Advertising and Sales Promotions

We have launched a variety of informational web-based videos and television commercials to market our products and
services. These can be seen at

We have also had certain patents granted from our Personal Health Record products and services which we believe will
generate licensing revenue. This includes patents in Singapore (2009), and in Australia (2008,
2009). We recently filed additional U.S. patent applications including on a universal patient
record conversion tool (2010) and on use of Personal Health Records in clinical trials (2010).

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Insurance and Banking

On March 22, 2010, we entered into a Master Services Agreement with Chartis International LLC, or Chartis.   Chartis
provides a wide range of insurance solutions and is one of the world's leading property-casualty and general insurance
organizations, with operations in over 160 countries and jurisdictions. We believe that Chartis will ultimately provide MMR's
secure online Personal Health Record, or PHR, to Chartis policyholders worldwide. We anticipate launching Chartis-branded
products in the United Kingdom, France, Germany, Japan, South Korea, Singapore, Malaysia, South Africa, Russia, Ukraine,
Finland, Hungary, Czech Republic, Poland, Israel, Estonia, Lithuania, Romania and other countries in Europe, Asia and the
Commonwealth of Independent States in addition to select countries in Central and South America, including Argentina.  We
expect translations of our products to be available first in English, Spanish, French, German, Italian, Japanese and
Chinese.

We are also in active negotiations with one of the world's largest bank regarding the deployment of a paperless loan
processing solutions whereby loan documents can be delivered electronically through our MyESafeDepositBox product with
resultant completed documents being filed in a permanent on-line MyESafeDepositBox account offered by the financial
institution.

Australia

On June 1st, 2011 the Company and

Vistime is a multi-file format, real-time 3D viewerfor retrieval and viewing of large files, including medical imaging
systems such as MRIs, scans and sonograms, over any Internet connection, including dial-up.  The system allows physicians
and patients to view and discuss medical records including radiology images in an online meeting format, making MMR's
MyMedicalRecords one of the world's most functional Personal Health Records systems that allows collaboration of multiple
specialists in real time.  The VisiInc technology will enable MMR usersto render and distribute large multi-dimensional
visual files within the MMR interface, including digital medical media such as MRI and CAD files at lightning-fast speed without
any resolution degradation or enterprise infrastructure barrier regardless of Internet connection, including dial-up.

MMR also granted to VisiInc an exclusive license to its proprietary eHealth patent portfolio in Australia with additional
rights in certain areas of Eastern Europe.  As partial additional consideration for the granting of the patents, VisiInc has granted
one million warrants to MMR and MMRGlobal has granted one million warrants to VisiInc. The terms are based on revenue
performance criteria for both companies as well as other additional customary terms and conditions.

China

We entered into a Cooperation Agreement with Unis-TongHe Technology Co, or UNIS, which we refer to as the
Cooperation Agreement. Under the Cooperation Agreement, UNIS and us agreed to form a joint venture in China for the
purpose of deploying our personal health record services and document imaging and management solutions as part of a total
Electronic Medical Record, or EMR, solution in China. Upon final approval of the venture by the Chinese government, we will
own 40% of the joint venture and UNIS will own 60%.  We are in the process of complying with additional document
request necessary to finalize the Joint Venture with the Chinese government. When approved by the government, the joint
Venture plans on developing a comprehensive EMR system in compliance with recent development criteria being proposed by
the Chinese government. The Unis-TongHe MMR Medical Information Technology Service Group Joint Venture, or JV, has
begun formalizing numerous plans to commence numerous medical records projects in China, which includes MMR's Personal
Health Records services and other related products. Meanwhile, the JV partners are actively involved in working together on
bidding on several Chinese government projects utilizing MMR technologies, platforms and features and have recently
deployed full-time technical support in China. In China, Unis-TongHe (as a Chinese Company) is submitting UNIS/MMR Joint
Venture bids for rights to offer our products in several Provinces in China including Henan Province, whose population is nearly
100 million people or one third of the population of the United States. On June 22, 2011 Unis Tonghe received official notice
that they were the winner of a bid to provide eHealth and Electronic Medical Record services in the 164 County/District of
Henan Province in China.

As a result of lead times to develop customized EMR solutions in response to government specifications, this effort could
take several years. In the meantime, we continue to leverage our resources in China with other U.S. partners on the ground in
China including Kodak and Alcatel Lucent. As a result, we anticipate selling MMRPro in conjunction with Kodak resellers or
Alcatel Lucent in the Asia Pacific region in advance of a UNIS MMR EMR product launch.

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Clinical Trials Platform

We are exploring the development of services that could enable visitors to our consumer and professional services
websites to easily find upcoming and ongoing clinical trials for themselves, family members and friends who may be seeking
new channels for treatment of disease. If this development effort is successful, and is successfully commercialized, we could
receive revenue from the delivery of patients to these trials through existing strategic partnerships and agreements.

We are also working to sell our PHR products and services to the biotech industry so pharmaceutical companies can use
them to monitor clinical trials.

Results of Operations for the Three and six months Ended June 30, 2011 as Compared to the Three and six
months Ended June 30, 2010

Revenues.

Revenues for the second quarter of 2011 were $165,637, a decrease of $30,460 or 15.5% compared to $196,097 in 2010.
The decrease for the quarter was primarily due to lower subscription revenue and certain delays with respect to the delivery of
the new MMRPro systems.

Revenue for the six months ended June 30, 2011 was $737,618, an increase of $451,357 or 157.7% compared to
$286,261, the same period in 2010.    The year-to-date increase was primarily due to an increase in biotech-related license
fees.

Cost of revenue.

Cost of revenue decreased by $82,045, or 51.2%, from $160,376 for the second quarter of 2010 to $78,331 in 2011.  Cost
of revenue decreased by $35,648, or 13%, from $273,412 for the six months ended June 30, 2010 to $237,764 in 2011.
During the second quarter of 2011, the Company received a significant pricing reduction/adjustment from our major website
maintenance provider. Gross profit as a percentage of revenues was 52.7% for the second quarter of 2011, as compared to
18.2% in 2010. Gross profit as a percentage of revenues was 67.8% for the six months ended June 30, 2011, as compared to
4.5% in the same period of 2010.  Gross profit as a percentage of revenues increased due primarily to biotech licensing fees
received from Celgene with no corresponding cost increase and the pricing adjustment that the Company received from the
service provider.

Operating expenses.

Total operating expenses decreased by $26,713, or 1.5%, from $1,817,954 in the second quarter of 2010 to $1,791;241 in
2011.  Total operating expenses decreased by $576,628, or 14.2%, from $4,049,540 in the six months ended June 30, 2010 to
$3,472,912 in 2011.

General and administrative expenses decreased by $101,012, or 8.7%, from $1,154,998 in the second quarter of 2010 to
$1,053,986 in 2011.  General and administrative expenses decreased by $312,466, or 13.2%, from $2,374,313 for the six
months ended June 30 of 2010 to $2,061,847 in the same period of 2011.  The year-to-date decrease was driven primarily by
lower stock-based compensation expenses of approximately $104,000 and lower audit and accounting fees of approximately
$171,000 in the first half of 2011 as compared to 2010.

Sales and marketing expenses increased by $59,782, or 10.0%, from $598,871 in the second quarter of 2010 to $658,653
in 2011.   Sales and marketing expenses decreased by $281,354, or 18.4%, from $1,529,003 in the six months ended June 30
of 2010 to $1,247,649 in 2011.  The second quarter increase was primarily due to hiring of a public relation firm in handling
potential investors.  The decrease was driven primarily by lower stock-based compensation expenses of approximately
$136,000 and non-cash equity-based compensation and payments of approximately $201,000 for marketing and consulting
services with health-care and research providers incurred in 2010.  No such consulting services took place in 2011.

Change in valuation of derivative liabilities.

In November 2007, Favrille issued warrants to purchase 4.4 million shares of common stock in conjunction with a
registered direct offering of common stock and warrants. We assumed these outstanding warrants as a result of the Merger on
January 27, 2009. The value associated with these warrants was recorded as a liability utilizing the Black-Scholes valuation
model, and revalued at the end of each quarter.  The change in valuation of the warrants from the beginning to the end of the
period is recorded as change in valuation of derivative liabilities.  A gain of $88,997 was recorded as change in valuation for
the second quarter of 2011.

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In addition, during the second quarter of 2011, the Company entered into 6% Convertible Promissory Notes in exchange
for the full amount, plus unpaid interest and 7% closing discount in the amount of $10,951, of the convertible promissory note
originally issued on July 26, 2010.  The Notes were treated as derivative due to the variable nature of the conversion price for
the period from April 15 through June 30.  As a result, the Company recognized a loss of $37,798 as a change in derivative
liability for the three and six months ended June 30, 2011.

We also had certain non-employee options and warrants outstanding which were accounted for as derivatives as there
was a possibility, although remote, that the Company may not have enough authorized shares to settle its 12% Convertible
Promissory Note obligations using common stock. The event giving rise to this condition was the first Convertible Note the
Company entered into on July 16, 2009.  As a result, a loss of $3,961,083 was recorded for the quarter ended June 30, 2010.
We remedied this condition during the second quarter of 2010 and reclassified the value of the derivative liabilities back into
equity.  Since then, no additional valuation was recorded.

The change in valuation of derivative amounts impacting our statement of operations was a non- cash expense.

Interest and Other Finance Charges, Net.

We had interest and other finance charges, net of $72,410 for the second quarter of 2011, a decrease of $1,396,912 from
$2,121,322 in 2010.  Interest and other finance charges totaled $1,185,679 for the six months ended June 30, 2011, a
decrease of $2,976,063 from $4,161,742 for the same period of 2010.  The decrease was primarily due to higher non-cash
interest expense attributed to the conversion feature and warrant issued with Convertible Promissory Notes.

Net loss.

As a result of the foregoing, we had a net loss of $2,377,146 for the second quarter of 2011 compared to a net loss of
$7,864,638 for the second quarter of 2010.  We also reported a net loss of $4,107,538 for the six months ended June 30, 2011
compared to a net loss of $14,327,996 for the similar period in 2010.

Going Concern

As more fully described in Note 1 to the consolidated financial statements appearing above in this Quarterly Report on
Form 10-Q, our independent registered public accounting firm included an explanatory paragraph in their report on our 2010
financial statements for the year ended December 31, 2010 related to the uncertainty of our ability to continue as a going
concern.  At June 30, 2011, our current liabilities of $6,271,961 exceeded our cash and cash equivalents of $273,837.

For a description of our management's plan regarding our ability to continue as a going concern, please see Note 1 to the
financial statements included above.

Liquidity and Capital Resources

As of June 30, 2011, the Company's current liabilities exceeded its current assets by $5.15 million. We have incurred net
losses of $2,377,146 and $7,864,638 for the three months ended June 30, 2011 and 2010 respectively and $4,107,538 and
$14,327,996 for the six months ended June 30, 2011 and 2010, respectively. At the current level of borrowing, we require cash
of $275,000 per year to service our debt. Furthermore, not including debt service, in order to continue operating its business,
we use an average of $278,000 in cash per month, or $3.3 million per year. At this rate of cash burn, over the next twelve
months, the Company's existing current assets will sustain our business for approximately three to six months.

In addition to the above cash burn from operations, we will be required to obtain additional financing in order to meet the
obligations for installment payments of $621,000 under the Creditor Plan and our obligations under the subordinated secured
indebtedness to The RHL Group (which note payable had a balance of $1,391,586 at June 30, 2011), among other debt
obligations. Such obligations are currently due and payable pursuant to the terms of the notes.

To finance our activities, we have relied on the issuance of stock and debt to the RHL Group. At June 30, 2011, we had a
line of credit with The RHL Group in the amount of $3 million. Availability under this line of credit at this time is $1.8 million as
of June 30, 2011.

Furthermore, we may utilize portions of our $10 million standby equity line facility with Dutchess Opportunity Fund, II, L.P.
as needed.  Additionally, we expect to continue offering a limited amount of convertible debt during the remainder of 2011. The
Company also expects sales from its MMRPro system to generate revenue and gross profit that will significantly improve its
monthly and annual cash burn from operations.

29

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Cash Flows for the Three and six months ended June 30, 2011 compared to Three and six months Ended June 30,
2010

Net cash used in operating activities for the six months ended June 30, 2011 was $1,255,757, compared to $2,338,409
used in the similar period in 2010.  In 2011, we had a net loss of $4,107,538, less non-cash adjustments (depreciation,
amortization, common stock and warrants issued for services and interest, change in valuation of derivative liabilities, gain or
loss of disposition of assets, stock compensation expense and the non-cash write-down of assets) of $2,376,152, less changes
in operating assets and liabilities of $475,629.  In 2010, cash used in operating activities included net loss of $14,327,996, less
similar non-cash adjustments of $11,904,917, plus changes in operating assets and liabilities of $84,670.  Compared to 2010,
non-cash adjustments in 2011 were lower due primarily to the change in valuation of derivative liabilities and lower
amortization of loan discount.

Net cash used in investing activities in the six months ended June 30, 2011 and 2010 totaled $254,008 and $161,036
respectively.  In 2011, in addition to the normal spending for equipment, the Company also invested in patent applications, and
MMRPro website development.

Net cash provided by financing activities in the six months ended June 30, 2011 and 2010 totaled $1,419,913 and
$2,511,061 respectively.  Financing activities primarily included proceeds generated from the issuance of convertible notes,
common shares and net proceeds from draw downs on our line of credit from the RHL Group, Inc., a significant stockholder
wholly-owned by Robert H. Lorsch, our chairman, Chief Executive Officer and President.  Higher financing activities in 2010
were primarily from the issuance of convertible notes.

As of June 30, 2011, we had cash and cash equivalents of $273,837, compared to $499,382 at June 30, 2010.

Description of Indebtedness

The RHL Group

For a description of our indebtedness to The RHL Group, please See Note 3 - Related Party Note Payable, included above
in this Quarterly Report on Form 10-Q.

The RHL Group Note payable had a balance of $1,391,587 at June 30, 2011.  The components of the RHL Group Note
payable and the related balance sheet presentation as of June 30, 2011 are as follows: $1,266,587, which are included in the
line of credit, related party; and $125,000, which is related to deferred salary and consulting expenses is included in related
party payables. The RHL Group received a $200,000 loan origination fee in connection with the Fourth Amended Note. On
May 24, 2011, we entered into a Fifth Amended and Restated Promissory Note. The Fifth Amended Note amended and
restated that certain Fourth Amended and Restated Promissory Note by extending the maturity date of the Existing Note for
one year to April 29, 2012.

Total interest expense on this note for the three months ended June 30, 2011 and 2010 amounted to $34,441 and
$30,656, respectively. Total interest expense on this note for the six months ended June 30, 2011 and 2010 amounted to
$63,069 and $66,959, respectively. The unpaid interest balance as of June 30, 2011 and December 31, 2010 was $24,577 and
$10,262, respectively.

Convertible Notes

On various dates between July 26, 2010 and May 24, 2011, we also entered into six different Note and Warrant
Subscription Agreements with three separate individuals. Pursuant to the terms of each of these note agreements, these
individuals purchased convertible notes in an aggregate amount of $1,056,436. Each of the notes carry an annual interest rate
of 6% or 8% and are convertible at the option of the Purchaser into a number of shares of our common stock. As of June 30,
2011 $1,006,436 remained outstanding and the individuals had not chosen to convert their Note balance into shares of our
common stock.

30

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Commitments and Contingencies

For information relating to our commitments and contingent liabilities, please see Note 5 to our financial statements
appearing elsewhere in this Quarterly Report on Form 10-Q.

Off-Balance Sheet Arrangements

We believe that our entry into the Cooperation Agreement described above and as follows constitutes the creation of a
direct financial obligation.  On January 4, 2010, UNIS and us entered into a Cooperation Agreement, which we refer to as the
Cooperation Agreement. Under the Cooperation Agreement, UNIS and us agreed to form a joint venture in China for the
purpose of deploying our personal health record services and document imaging and management solutions in China. We will
own 40% of the joint venture and UNIS will own 60% and each party will have the right to designate two members of the joint
venture's board of directors, with the fifth member being a Chinese citizen mutually designated by us and UNIS. Under the
Cooperation Agreement, board actions will require the approval of more than three of the five members of the joint venture's
board of directors and no material actions may be taken unless all board members are present and voting at the meeting.

Under the Cooperation Agreement, UNIS and MMRGlobal will contribute an aggregate of 100 million RMB to the joint
venture, based on each party's respective ownership, in the form of intellectual property rights, equipment, brand value, cash
and such other consideration as may be agreed to between the parties. Each party's obligation to contribute to the joint venture
is subject to a number of conditions, including obtaining all necessary approvals of and licenses from the Chinese government,
as well as the joint venture meeting its budget, goals and objectives at the time any contributions are due. Under the
Cooperation Agreement, each party's contributions will be made over a period of sixty months.

For a more complete description of the terms of the Cooperation Agreement, please see Exhibit 10.26, filed with our
Annual Report on Form 10-K for the year ended December 31, 2010, filed on March 31, 2010.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Intentionally omitted.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including the Chief Executive Officer and
Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as required by
Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive
Officer and Chief Financial Officer have concluded that these disclosure controls and procedures are effective.

Management's Annual Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting
for the Company. Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability
of our financial reporting for external purposes in accordance with accounting principles generally accepted in the United
States of America. Internal control over financial reporting includes maintaining records that in reasonable detail accurately and
fairly reflect our transactions; providing reasonable assurance that transactions are recorded as necessary for preparation of
our financial statements; providing reasonable assurance that receipts and expenditures of company assets are made in
accordance with management authorization; and providing reasonable assurance that unauthorized acquisition, use or
disposition of company assets that could have a material effect on our financial statements would be prevented or detected on
a timely basis. Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute
assurance that a misstatement of our financial statements would be prevented or detected.

Management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the
framework in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission. Based on this evaluation, management concluded that the company's internal control over financial reporting was
effective as of June 30, 2011.

31

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Changes in Internal Controls over Financial reporting

There were no significant changes in our internal control over financial reporting during the three and six months
ended June 30, 2011 that have materially affected, or are reasonably likely to materially affect, our internal control over
financial reporting. Our independent auditors have not audited and are not required to audit this assessment of our internal
control over financial reporting for the three and six months ended June 30, 2011.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we are involved in various legal proceedings generally incidental to our business. While the result of any
litigation contains an element of uncertainty, our management presently believes that the outcome of any known, pending or
threatened legal proceeding or claim, individually or combined, will not have a material adverse effect on our financial
statements.

On April 30, 2010, we filed a petition in the New York Supreme Court against the Lymphoma Research Foundation, or
LRF, a California nonprofit corporation, to enforce our rights to certain intellectual property and biotechnology assets acquired
as a part of the reverse Merger with Favrille.  LRF has claimed ownership of some of these assets, including samples and data
which were transferred to LRF in the summer of 2008.  Also on April 30, 2010, LRF filed a declaratory relief action in the New
York Supreme Court asserting its rights over the aforementioned samples and data.  We answered LRF's action and filed
counterclaims on July 6, 2010.  Although the Company and LRF have met in mediation, the litigation is ongoing.  Since then,
LRF filed a motion for summary judgment with the New York Court, seeking a determination that it was the sole owner of the
assets, and MMR filed papers in opposition of the motion. On September 21, 2010, the New York Court denied LRF's motion
on the ground that the parties had not yet had an opportunity to conduct discovery and that LRF's motion was premature.  In
November 2010, LRF and MMR settled the litigation over the biotech assets, which gave the Company exclusive control of
certain data and tissue samples created during trials of Favrille, Inc.'s FavIdTM vaccine.

The Company is planning on filing a lawsuit against a certain former officer of pre-merger Favrille, and other potential
defendants that the Company believes may have misappropriated some of Favrille's intellectual and personal property.
Information leading to the decision to file the lawsuit was discovered as a result of the filing of a lawsuit by The RHL Group,
Inc., a creditor of The Company.  The RHL Group lawsuit was filed against Dan Gold, a former officer and director of Favrille,
and other defendants for wrongful acts relating to the misappropriation of Favrille's intellectual and personal property. The RHL
Group case is currently pending in San Diego, California.  The Company's board of directors has consented to having the
same law firm represent both the RHL Group, Inc. and The Company in this matter.

At this time the potential recovery for damages is unknown, however we believe damages could be
significant.  There is no attorneys' fees provision, so if the lawsuit ends unfavorably, we will only be liable for our attorneys'
fees incurred by The Company for its representation.

On July 31, 2011, Ropers, Majeski, Kohn and Bentley (Ropers), a national firm with offices in San Francisco, Redwood
City, San Jose, Los Angeles, New York and Boston, filed a civil complaint on behalf of MyMedicalRecords.com (MMR) in the
Superior Court For the State of California, County of Los Angeles.  Named as defendants in that case are Taylor Armstrong,
Russell Armstrong and a corporation known as NuWay Digital Systems.  Among other things, the Complaint alleges that Taylor
Armstrong and her husband Russell Armstrong breached a 2007 settlement agreement between themselves and MMR.  The
settlement agreement entitles MMR to liquidated damages of $1,000,000 for the first such breach and $250,000 for each
ensuing breach.  To date, three breaches have been alleged.  Ropers continues to investigate and will amend the Complaint in
the event that additional breaches are uncovered.

32

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Since our previous disclosure on May 27, 2011, we have made the following unregistered sales of equity securities:

The Company entered into four Convertible Promissory Notes with two different unrelated third-parties and one related
party for a principal amount totaling $448,858 and warrants to purchase 2,523,148 shares of the Company's common stock.
The Convertible Promissory Notes mature on 10/14/2011, 11/30/2011, 12/31/2011 and 1/31/2012 and the Company may, at its
own discretion, extend the maturity date for an additional six months.  The Notes bear interest of 6%, 8% or 12% per annum
payable in cash or shares of common stock or a combination of cash and shares of common stock.  The decision whether to
pay in cash, shares of common stock or combination of both shall be at the sole discretion of the Company. The Notes are
convertible into shares of common stock by dividing (i) the then outstanding balance of such note by (ii) the product of seventy
(70%) or eighty percent (80%) multiplied by the arithmetic average of the volume weighted average price of the common stock
for the ten (10) consecutive trading days ending on the day that is three (3) trading days prior to the applicable investment
date. One party immediately exercised the warrants and converted the Notes into 1,306,667 unregistered shares of the
Company's common stock.

On May 24, 2011 the Company granted 120,000 shares of common stock to a vendor who chose to receive full payment in
equity for marketing and advertising services rendered valued at $12,000.

On May 26, 2011 the Company granted 100,000 shares of common stock to a consultant who elected to receive their fees
in the form of equity valued at $4,200.

On May 26, 2011 the Company granted 1,000,000 shares of common stock to a public relation firm who elected to receive
their fees in the form of equity valued at $42,000.

On May 26, 2011, RHL Group, a related-party, exercised 1,600,000 warrants for common stock in exchange for a
reduction in related party payables of $200,000.

On May 28, 2011 the Company granted 750,000 shares of common stock to a consultant who elected to receive their fees
in the form of equity valued at $75,000.

On May 31, 2011 the Company granted 1,666,667 shares of common stock to a note holder who exercised a right to
convert $50,000 and other consideration for a convertible promissory note.

On June 22, 2011 the Company granted 1,640,829 shares of common stock to a note holder who exercised a right to
convert $50,000 and other consideration for a convertible promissory note.

On June 26, 2011 the Company granted 433,360 shares of common stock to a director who exercised options that were
granted on January 27, 2011 at an exercise price of $0.10.  The proceeds of which were used to pay down the outstanding
payables.

On May 24, 2011 the Company issued warrants to purchase 500,000 shares of common stock in connection with the
issuance of a Convertible Promissory Note to an unrelated third-party.  As of June 30, 2011, the warrant had not been
exercised.

On May 24, 2011 the Company granted 2,796,566 warrants to purchase shares of our common stock to The RHL Group in
connection with the Fifth Amended Note (see Note 3).  This warrant had an exercise price of $0.051 per share, with a
contractual life through May 24, 2016.  This warrant vests at commencement and has an aggregate value of $105,442, which
was recorded as interest expenses during the three and six months ended June 30, 2011.

On May 26, 2011 we granted a warrant to purchase 1,000,000 shares of our common stock to a third-party as payment for
services.  This warrant had an exercise price of $0.051 per share, with a contractual life through May 26, 2012.  This warrant
will vest upon the closing of a transaction between the Company and a third-party introduced to the Company by the third-party
service provider and has an aggregate value of $20,907.

On May 26, 2011 we granted a warrant to purchase 1,000,000 shares of our common stock to a third-party as payment for
services.  This warrant had an exercise price of $0.051 per share, with a contractual life through May 26, 2012.  This warrant
vested at commencement and had an aggregate value of $20,907, which was recorded as operating expenses during the
three and six months ended June 30, 2011.

33

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On June 1, 2011 we granted a warrant to purchase 75,000 shares of our common stock to a third-party as payment for
services.  This warrant had an exercise price of $0.06 per share, with a contractual life through June 1, 2012.  This warrant
vested at commencement and had an aggregate value of $1,048, which was recorded as operating expenses during the three
and six months ended June 30, 2011.

On June 1, 2011 we granted a warrant to purchase 1,000,000 shares of our common stock to a third-party as payment for
services.  This warrant had an exercise price of $0.06 per share, with a contractual life through June 1, 2012.  This warrant
vested at commencement and had an aggregate value of $13,975, which was recorded as operating expenses during the
three and six months ended June 30, 2011.

On June 10, 2011 we granted a warrant to purchase 1,000,000 shares of our common stock to a third-party as payment for
services.  This warrant had an exercise price of $0.055 per share, with a contractual life through June 10, 2013.  This warrant
will vest upon the holder generated at least $100,000 in gross revenue from the licensing agreement using the technology of
the Company and had an aggregate value of $31,294.

On June 10, 2011 we granted a warrant to purchase 500,000 shares of our common stock to a third-party as payment for
services.  The first tranche of 250,000 shares had an exercise price of $0.055 per share, and will vest when a licensee
generates at least $100,000 in gross revenue from the licensing agreement using the technology of the Company, or in one
year, whichever occurs first.  The second tranche of 250,000 shares had an exercise price of $0.125 per share, and will vest in
one year after the vesting of the first tranche.  This warrant had a contractual life through June 10, 2016 and had an aggregate
value of $20,102, of which $846 was recorded as operating expenses during the three and six months ended June 30,
2011.

On July 6, 2011 we granted four separate warrants to Unis-Tonghe  Technologies, our joint venture partner in China in
conjunction with the formation of the Joint Venture.  Each warrant gives them the right to acquire 1,000,000 shares of common
stock at $0.08, $0.12, $0.16 and $0.20 respectively.  The first warrant vests immediately upon the final formation of the
Unis-Tonghe-MMR joint venture ("JV"). The second warrant vests six months after the formation of the JV.  The third
warrant vests immediately upon the Company's receipt of the first revenue distribution from the JV, and the fourth warrant
vests immediately upon the Company's receipt of the second revenue distribution from the JV.  All four warrants have an
expiration date of July 7, 2013.  None of these warrants have vested or have been exercised at this time. On June 16, the
Company issued warrant to purchase 140,000 shares of common stock in connection to the issuance of Convertible
Promissory Notes with an unrelated third-party for a principal amount of $35,000. The term of the warrants was three years
and the exercise price was the lesser of (i) the product of fifty percent (50%) multiplied by the arithmetic average of the
volume-weighted average trading price of the Common Stock for the ten (10) consecutive trading days ending on the day that is three
(3) trading days prior to the applicable investment date, or (ii) $0.022.  This warrant had a bifurcated value of $2,197.  On the
date of investment, the holder converted the promissory notes and exercised the attached warrants.  As a result of the warrant
exercise, the $2,197 discount was recorded to interest expense during the three and six months ended June 30, 2011 with an
offset to additional paid in capital.

We have granted all such securities described above in reliance on the exemption provided by Section 4(2) of the
Securities Act of 1933, as amended, and the rules promulgated thereunder.



34

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Item 6. Exhibits

|Exhibit
Number |  | Description of Exhibits                                                                                                                           
|-------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------
|               |  |                                                                                                                                                   
|               |  |                                                                                                                                                   
|10.1           |  | *† Equipment Purchase Agreement, effective as of July 11, 2011, by and between the Company and Eastman Kodak Company.                             
|               |  |                                                                                                                                                   
|31.1           |  | * Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934.                           
|               |  |                                                                                                                                                   
|31.2           |  | * Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934.                           
|               |  |                                                                                                                                                   
|32.1           |  | * Certification of Chief Executive Officer Pursuant to Rule 13a-14(b)/15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.
|               |  |                                                                                                                                                   
|32.2           |  | * Certification of Chief Financial Officer Pursuant to Rule 13a-14(b)/15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.
|               |  |                                                                                                                                                   
|101.INS(1)     |  | ** XBRL Instance Document                                                                                                                         
|               |  |                                                                                                                                                   
|101.SCH(1)     |  | ** XBRL Taxonomy Extension Schema Document                                                                                                        
|               |  |                                                                                                                                                   
|101.CAL(1)     |  | ** XBRL Taxonomy Extension Calculation Linkbase Document                                                                                          
|               |  |                                                                                                                                                   
|101.DEF(1)     |  | ** XBRL Taxonomy Extension Definition Linkbase Document                                                                                           
|               |  |                                                                                                                                                   
|101.LAB(1)     |  | ** XBRL Taxonomy Extension Label Linkbase Document                                                                                                
|               |  |                                                                                                                                                   
|101.PRE(1)     |  | ** XBRL Taxonomy Extension Presentation Linkbase Document                                                                                         

______________

|†   | The Compnay has requested confidential treatment with respect to portions of this exhibit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|*   | Filed herewith.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|**  | XBRL Interactive Data File will be filed by amendment to this Form 10-Q within 30 days of the filing date of this
Form 10-Q, as permitted by Rule 405(a)(2)(ii) of Regulation S-T.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|(1) | The financial information contained in these XBRL documents is unaudited and these are not the official
publicly filed financial statements of Mattson Technology. The purpose of submitting these XBRL documents is to test the related format
and technology, and, as a result, investors should continue to rely on the official filed version of the furnished documents and not rely
on this information in making investment decisions. In accordance with Rule 402 of Regulation S-T, the information in these exhibits
shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any
registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be
expressly set forth by specific reference in such filing.

35

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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.

Date:   August 15, 2011

MMRGlobal, Inc.

By:/s/ Robert H.
Lorsch     Robert H. Lorsch
     Chairman, Chief Executive Officer and
     President

By:/s/ Ingrid G. Safranek     Ingrid G. Safranek
     Chief Financial Officer

36

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EXHIBIT INDEX

Exhibit
Number

Description of Exhibits10.1

*†  Equipment Purchase Agreement, effective as of July 11, 2011, by and between the Company and Eastman Kodak Company.    PDF31.1

* Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934.    PDF31.2

* Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934.    PDF32.1

* Certification of Chief Executive Officer Pursuant to Rule 13a-14(b)/15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.    PDF32.2

* Certification of Chief Financial Officer Pursuant to Rule 13a-14(b)/15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.    PDF101.INS(1)

** XBRL Instance Document101.SCH(1)

** XBRL Taxonomy Extension Schema Document101.CAL(1)

** XBRL Taxonomy Extension Calculation Linkbase Document101.DEF(1)

** XBRL Taxonomy Extension Definition Linkbase Document101.LAB(1)

** XBRL Taxonomy Extension Label Linkbase Document101.PRE(1)

** XBRL Taxonomy Extension Presentation Linkbase Document______________

†
The Compnay has requested confidential treatment with respect to portions of this exhibit.*
Filed herewith.**
XBRL Interactive Data File will be filed by amendment to this Form 10-Q within 30 days of the filing date of this
Form 10-Q, as permitted by Rule 405(a)(2)(ii) of Regulation S-T.(1)
The financial information contained in these XBRL documents is unaudited and these are not the official
publicly filed financial statements of Mattson Technology. The purpose of submitting these XBRL documents is to test the related format
and technology, and, as a result, investors should continue to rely on the official filed version of the furnished documents and not rely
on this information in making investment decisions. In accordance with Rule 402 of Regulation S-T, the information in these exhibits
shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any
registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be
expressly set forth by specific reference in such filing.