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, 2010                     
|  |  |                                                                  
|  |  | 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.)
|                                                                                                                                      |  |                                                                                                            
|468 CAMDEN DRIVE, SUITE 200
BEVERLY HILLS, CA                                                                                         |  | 90210                                                                                                      
|(Address of Principal Executive Offices)                                                                                              |  | (Zip Code)                                                                                                 

(310) 476-7002

N/A

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 o
         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 August 3, 2010, the issuer had 222,064,308 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, 2010 (unaudited) and December 31, 2009                                             |  |  |  |  |  |  |  |  |  |  | 1   
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|           |  | Consolidated Statements of Operations - Three and Six Months Ended June 30, 2010 (unaudited) and June 30, 2009 (unaudited) |  |  |  |  |  |  |  |  |  |  | 2   
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|           |  | Consolidated Statement of Stockholders' Deficit - Six Months Ended June 30, 2010 (unaudited)                               |  |  |  |  |  |  |  |  |  |  | 3   
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|           |  | Consolidated Statements of Cash Flows - Six Months Ended June 30, 2010 (unaudited) and June 30, 2009 (unaudited)           |  |  |  |  |  |  |  |  |  |  | 4   
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|           |  | Notes to Consolidated Financial Statements (unaudited)                                                                     |  |  |  |  |  |  |  |  |  |  | 5   
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Item 2.    |  | Management's Discussion and Analysis of Financial Condition and Results of Operations                                      |  |  |  |  |  |  |  |  |  |  | 22  
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Item 3.    |  | Quantitative and Qualitative Disclosures About Market Risk                                                                 |  |  |  |  |  |  |  |  |  |  | 35  
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Item 4T.   |  | Controls and Procedures                                                                                                    |  |  |  |  |  |  |  |  |  |  | 36  
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Part II.   |  | OTHER INFORMATION                                                                                                          |  |  |  |  |  |  |  |  |  |  | 36  
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Item 1.    |  | Legal Proceedings                                                                                                          |  |  |  |  |  |  |  |  |  |  | 36  
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Item 1A.   |  | Risk Factors                                                                                                               |  |  |  |  |  |  |  |  |  |  | 36  
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Item 2.    |  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                |  |  |  |  |  |  |  |  |  |  | 36  
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Item 3.    |  | Defaults Upon Senior Securities                                                                                            |  |  |  |  |  |  |  |  |  |  | 39  
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Item 4.    |  | (Removed and Reserved)                                                                                                     |  |  |  |  |  |  |  |  |  |  | 39  
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Item 5.    |  | Other Information                                                                                                          |  |  |  |  |  |  |  |  |  |  | 39  
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Item 6.    |  | Exhibits                                                                                                                   |  |  |  |  |  |  |  |  |  |  | 36  
|           |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  |     
|Signatures |  |                                                                                                                            |  |  |  |  |  |  |  |  |  |  | 37  

i

---



PART I - FINANCIAL INFORMATION

Item 1.  Consolidated Financial Statements

MMRGLOBAL, INC. 
                                 CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                                                                              |  |   | June 30,     |  |   | December 31,
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | - | ------------ |  | - | ------------
|                                                                                                                                                                                                              |  |   | 2010         |  |   | 2009        
|                                                                                                                                                                                                              |  |   | (Unaudited)  |  |   |             
|ASSETS                                                                                                                                                                                                       
|                                                                                                                                                                                                              |  |   |              |  |   |             
|Current assets:                                                                                                                                                                                               |  |   |              |  |   |             
|Cash and cash equivalents                                                                                                                                                                                     |  | $ | 499,382      |  | $ | 487,766     
|Accounts receivable                                                                                                                                                                                           |  |   | 151,978      |  |   | 29,402      
|Inventory                                                                                                                                                                                                     |  |   | 48,772       |  |   | -           
|Prepaid expenses and other current assets                                                                                                                                                                     |  |   | 787,136      |  |   | 612,137     
|Total current assets                                                                                                                                                                                          |  |   | 1,487,268    |  |   | 1,129,305   
|                                                                                                                                                                                                              |  |   |              |  |   |             
|Property and equipment, net                                                                                                                                                                                   |  |   | 27,713       |  |   | 36,737      
|Deposits                                                                                                                                                                                                      |  |   | 7,665        |  |   | 7,665       
|Intangible assets, net                                                                                                                                                                                        |  |   | 624,195      |  |   | 450,457     
|Total assets                                                                                                                                                                                                  |  | $ | 2,146,841    |  | $ | 1,624,164   
|                                                                                                                                                                                                              |  |   |              |  |   |             
|LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                                                                                        
|                                                                                                                                                                                                              |  |   |              |  |   |             
|Current liabilities:                                                                                                                                                                                          |  |   |              |  |   |             
|Line of credit, related party                                                                                                                                                                                 |  | $ | 909,351      |  | $ | 940,620     
|Related party payables                                                                                                                                                                                        |  |   | 1,206,230    |  |   | 1,537,605   
|Compensation payable                                                                                                                                                                                          |  |   | 10,748       |  |   | 10,943      
|Severance liability                                                                                                                                                                                           |  |   | 620,613      |  |   | 620,613     
|Accounts payable and accrued expenses                                                                                                                                                                         |  |   | 2,527,882    |  |   | 2,979,222   
|Deferred revenue                                                                                                                                                                                              |  |   | 64,406       |  |   | -           
|Warrant liability                                                                                                                                                                                             |  |   | 355,992      |  |   | 88,998      
|Derivative liability                                                                                                                                                                                          |  |   | -            |  |   | 1,534,824   
|Conversion feature liability                                                                                                                                                                                  |  |   | -            |  |   | 91,828      
|Convertible notes payable                                                                                                                                                                                     |  |   | -            |  |   | 166,937     
|Notes payable, current portion                                                                                                                                                                                |  |   | 325,343      |  |   | 325,343     
|Capital leases payable, current portion                                                                                                                                                                       |  |   | 10,700       |  |   | 10,302      
|Total current liabilities                                                                                                                                                                                     |  |   | 6,031,265    |  |   | 8,307,235   
|                                                                                                                                                                                                              |  |   |              |  |   |             
|Notes payable, less current portion                                                                                                                                                                           |  |   | -            |  |   | 125,000     
|Capital leases payable, less current portion                                                                                                                                                                  |  |   | 4,350        |  |   | 8,484       
|Total liabilities                                                                                                                                                                                             |  |   | 6,035,615    |  |   | 8,440,719   
|                                                                                                                                                                                                              |  |   |              |  |   |             
|Commitments and contingencies (See Note 7)                                                                                                                                                                    |  |   |              |  |   |             
|                                                                                                                                                                                                              |  |   |              |  |   |             
|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, 221,867,998  
       and 173,689,343 shares issued and outstanding as of June 30, 2010 (unaudited)  
      and December 31, 2009, respectively |  |   | 221,867      |  |   | 173,689     
|Additional paid-in capital                                                                                                                                                                                    |  |   | 31,665,651   |  |   | 14,458,052  
|Accumulated deficit                                                                                                                                                                                           |  |   | (35,776,292) |  |   | (21,448,296)
|Total stockholders' deficit                                                                                                                                                                                   |  |   | (3,888,774)  |  |   | (6,816,555) 
|Total liabilities and stockholders' deficit                                                                                                                                                                   |  | $ | 2,146,841    |  | $ | 1,624,164   

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

1

---



MMRGLOBAL, INC.  
                                       CONSOLIDATED STATEMENTS OF OPERATIONS

|                                                     |  |  |   | Three Months Ended |  |   | Six Months Ended
|---------------------------------------------------- |  |  | - | ------------------ |  | - | ----------------
|                                                     |  |  |   | June 30,           |  |   | June 30,        
|                                                     |  |  |   | 2010               |  |   | 2009            
|                                                     |  |  |   | (Unaudited)        |  |   | (Unaudited)     
|                                                     |  |  |   |                    |  |   |                 
|Revenues                                             |  |  |   |                    |  |   |                 
|Subscriber                                           |  |  | $ | 87,346             |  | $ | 87,972          
|MMR Pro                                              |  |  |   | 108,636            |  |   | -               
|License fees and other                               |  |  |   | 115                |  |   | 74,126          
|Total revenues                                       |  |  |   | 196,097            |  |   | 162,098         
|Cost of revenues                                     |  |  |   | 160,376            |  |   | 102,285         
|Gross profit (loss)                                  |  |  |   | 35,721             |  |   | 59,813          
|General and administrative expenses                  |  |  |   | 1,154,998          |  |   | 1,349,113       
|Sales and marketing expenses                         |  |  |   | 598,871            |  |   | 384,772         
|Technology development                               |  |  |   | 64,085             |  |   | 63,095          
|Loss from operations                                 |  |  |   | (1,782,233)        |  |   | (1,737,167)     
|Gain on settlement of payables                       |  |  |   | -                  |  |   | 36,945          
|Change in valuation of derivative liabilities        |  |  |   | (3,961,083)        |  |   | 1,495,569       
|Interest and other finance charges, net              |  |  |   | (2,121,322)        |  |   | (116,404)       
|Net loss                                             |  |  | $ | (7,864,638)        |  | $ | (321,057)       
|                                                     |  |  |   |                    |  |   |                 
|Net loss available to common shareholders per share: |  |  |   |                    |  |   |                 
|Basic and Diluted                                    |  |  | $ | (0.04)             |  | $ | (0.00)          
|                                                     |  |  |   |                    |  |   |                 
|Weighted average common shares outstanding:          |  |  |   |                    |  |   |                 
|Basic and Diluted                                    |  |  |   | 212,834,956        |  |   | 124,881,831     

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

2

---

MMRGLOBAL, INC.  
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2010

Preferred Stock


Common Stock


Additional


AccumulatedShares


Amount


Shares


Amount


Paid-In Capital


Deficit


TotalBalance as of December 31, 2009
-

$
-


173,689,343

$
173,689

$
14,458,052

$
(21,448,296)

$
(6,816,555)Warrant exercise by RHL Group to reduce line of credit
-


-


1,600,000


1,600


198,400


-


200,000Convertible debt issuances and warrants exercises
-


-


35,577,804


35,578


6,567,268


-


6,602,846Reclassification of derivative warrants and options liability back to APIC
-


-


-


-


7,378,559


-


7,378,559Shares issued for services or reduction to liabilities
-


-


8,638,606


8,639


1,221,788


-


1,230,427Stock option exercises
-


-


1,457,419


1,456


176,379


-


177,835Stock based compensation
-


-


-


-


962,525


-


962,525Warrant exercises
-


-


904,826


905


129,698


-


130,603Warrants issued for services
-


-


-


-


572,982


-


572,982Net loss
-


-


-


-


-


(14,327,996)


(14,327,996)Balance as of June 30, 2010 (unaudited)
-

$
-


221,867,998

$
221,867

$
31,665,651

$
(35,776,292)

$
(3,888,774)The accompanying notes are an integral part of these consolidated financial statements


3MMRGLOBAL, INC. 
CONSOLIDATED STATEMENTS OF CASH FLOWS 

Six Months EndedJune 30,2010


2009(Unaudited)


(Unaudited)Operating activities:Net loss



$
(14,327,996)

$
(4,197,446)Adjustments to reconcile net loss to net cashused in operating activities:Depreciation and amortization




46,322


53,441Change in allowance for doubtful accounts




-


66,668Common stock issued as consideration for extension of guarantee




-


5,000Common stock issued as replacement of options previously issued




-


1,466Loss on disposal of property and equipment




-


2,237Change in valuation of derivative liabilities




6,129,563


655,261Warrants issued for services




572,982


252,523Stock based compensation




962,525


217,602Common stock issued for services




571,213


-Interest expense on convertible debt




3,573,629


-Gain on settlement of payables




-


(89,170)Loss (gain) on sale of shares




(5,900)


6,260Loss on write-off of advances due from related party




-


100,000Loan commitment fee amortization




54,583


58,393Effect of changes in:Accounts receivable




(115,046)


(75,759)Inventory




(48,772)


-Related party receivables




-


22,057Prepaid expenses and other current assets




174,681


(19,269)Deposits




-


(5,860)Accounts payable and accrued expenses




59,910


1,361,577Related party payables




(50,314)


278,419Compensation payable




(195)


11,127Deferred revenue




64,406


(23,985)Net cash used in operating activities




(2,338,409)


(1,319,458)Investing activities:Purchase of property and equipment




-


(8,052)Patents




(67,476)


(107,087)MMRPro and Website Development




(93,560)


-Restricted cash




-


(2,394)Cash acquired from reverse merger with Favrille, Inc.




-


1,050,506Net cash provided by (used in) investing activities




(161,036)


932,973Financing activities:Proceeds from convertible notes




1,892,747


-Proceeds from warrant exercises




716,500


-Payments of capital lease




(3,736)


(3,377)Proceeds from (repayment of) line of credit, related party




(98,229)


135,000Proceeds from issuance of note payable




-


125,000Proceeds from stock option exercises




3,779


52,914Proceeds from issuance of common stock




-


3,774Net cash provided by financing activities




2,511,061


313,311Net increase (decrease) in cash




11,616


(73,174)Cash, beginning of period




487,766


75,779Cash, end of period



$
499,382

$
2,605Supplemental disclosures of cash flow information:Cash paid for interest



$
29,898

$
901Cash paid for income taxes



$
1,600

$
1,989Supplemental disclosure of non-cash investing and financing activities:Payment of payables through issuance of notes payable



$
-

$
139,355Capitalized loan commitment fees payable



$
200,000

$
230,000Payment of related party line of credit through warrant exercise and issuance of common stock



$
200,000

$
113,220Exercise of warrants as a reduction notes payable



$
26,969

$
-Payment of intangible assets through issuance of warrants



$
50,000

$
-Conversion of convertible notes payable into common stock



$
2,298,814

$
-Establishment of derivative liabilities, net and reclassifcation back to APIC upon settlement



$
7,378,559

$
-Prepayment for services through issuance of common stock



$
167,000

$
24,660Payment of accounts payable and related party payables through issuance of common stock



$
746,863

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


4MMRGLOBAL, INC. 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
June 30, 2010 



NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATIONOn January 27, 2009, MMRGlobal, Inc. ("MMRGlobal"), (most recently known as MMR
Information Systems, Inc. ("MMRIS") and formerly known as Favrille, Inc. ("Favrille"), a Delaware corporation
formed in January 2000, and hereinafter referred to as the "Company", "we" or
"us") consummated a transaction with MyMedicalRecords, Inc. (formerly known as
mymedicalrecords.com, Inc., a Delaware corporation formed in 2005) ("MMR") through a merger of a wholly-owned
subsidiary of MMRGlobal with and into MMR pursuant to the terms of the Agreement and Plan of Merger and Reorganization
dated November 8, 2008 (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. 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 a wholly-owned subsidiary of the Company, with the former stockholders of MMR collectively owning shares of
the Company's common and preferred stock representing approximately 60.3% of the voting power of the Company's
outstanding capital stock.For accounting purposes, the Merger was treated as a reverse acquisition with MMR being the
accounting acquirer. Accordingly, the historical financial results prior to the Merger are those of MMR. The results of
operations for MMRIS are included in the Company's consolidated financial results beginning on January 27, 2009.The presentation of consolidated statements of stockholders' equity (deficit) reflects the
historical stockholders' equity (deficit) of MMR through January 26, 2009. The effect of the issuance of shares of MMRGlobal
common stock in connection with the Merger and the inclusion of MMRGlobal's outstanding shares of common stock at the
time of the Merger is reflected in the accompanying consolidated financial statements.MMR was incorporated in Delaware in 2005 and is headquartered in Los Angeles, CA.
Effective 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., or
MMRGlobal upon stockholder approval at the Company's stockholder meeting. The name change to MMRGlobal more
accurately reflects its global imprint.

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 is 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.Principles of ConsolidationThe consolidated financial statements include the accounts of MMRGlobal, and its wholly-owned subsidiary MMR.
We eliminated all intercompany transactions upon consolidation.Basis of PresentationWe have prepared the accompanying consolidated unaudited financial statements of the
Company in accordance with accounting principles generally accepted in the United States of America ("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 (the "Exchange Act") and Article 8-03 of Regulation S-X 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 month periods ended June 30,
2010 are not indicative of the results that may be expected for the fiscal year ending December 31, 2010. You should read
these unaudited consolidated financial statements in conjunction with the audited financial statements and the notes thereto
included in the Company's annual report on Form 10-K for the year ended December 31, 2009.

5Management's Plan

As of June 30, 2010, the Company's current liabilities exceeded its current assets by $4.5 million. Furthermore,
during the six-months ended June 30, 2010, the Company incurred losses of $13.8 million.

At June 30, 2010 and December 31, 2009, the Company had $499,381 and $487,776, respectively, in cash and cash
equivalents. Historically, the Company issued capital stock, sold debt and equity securities and received funds from The RHL
Group, Inc. (a significant stockholder, wholly-owned by the Company's Chairman and Chief Executive Officer) to operate its
business. Although, the Company received additional funding from The RHL Group pursuant to the Fourth Amended and
Restated Note dated April 29, 2010, it nevertheless 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 note
payable had a balance of $1,154,175 at June 30, 2010. As a result of the above, there is uncertainty about the Company's
ability to continue as a going concern.

Management's plan regarding this matter is to continue to utilize its available line of credit with The RHL Group (see Note
3), if necessary. At June 30, 2010, the Company had approximately $2,000,000 remaining as available under The RHL Group
line of credit. Furthermore, the Company may utilize portions of its $10 million standby equity line facility with Dutchess Opportunity Fund, II, LP.
Additionally, the Company plans to continue to sell additional debt and equity securities, continue to settle its existing liabilities
through issuance of equity securities, explore other debt financing arrangements, continue to increase its existing subscriber
and affiliate customer base and sell MMRPro products to obtain additional cash flow over the next twelve months. There can
be no assurance 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 the Company is unable to utilize its available line of credit with The RHL Group, or obtain suitable alternative debt
financing, it may adversely affect the Company's ability to execute its business plan and continue as a going concern.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) MANAGEMENT'S USE OF ESTIMATES

The 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,
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. Actual results could differ from those estimates.

(b) CASH AND CASH EQUIVALENTS

The Company considers 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. The Company maintains its cash in
bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in
such accounts and believes it is not exposed to any significant credit risk on cash. The Company had cash and cash
equivalents of $499,381 and $487,766 as of June 30, 2010 and December 31, 2009, 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. The
Company estimates 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, the Company gives further consideration to the collectability of those balances and the
allowance is adjusted accordingly. The Company writes off past due receivable balances when collection efforts have been
unsuccessful in collecting the amount due.

(d) INVENTORIES

The Company stated inventories at the lower of standard cost (which approximates cost determined on a first-in, first-out
basis) or market.  The Company writes 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.

6

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(e) FAIR VALUE OF FINANCIAL INSTRUMENTS

ASC 820-10 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, 2010 and December 31, 2009, 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 the Company.

The Company utilizes 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 option, warrant and conversion feature liabilities, the Company used Level
3 inputs for its valuation methodology. The Company applied the Black-Scholes model to value the option, warrant and
conversion feature liabilities. See Note 9 for the inputs used in the Black-Scholes option valuation model.

|                      |  |   | Fair Value    |  |   | Fair Value Measurements at June 30, 2010
|--------------------- |  | - | ------------- |  | - | ----------------------------------------
|                      |  |   | as of         |  |   | Using Fair Value Heirarchy              
|Financial Instruments |  |   | June 30, 2010 |  |   | Level 1                                 
|                      |  |   |               |  |   |                                         
|Liabilities:          |  |   |               |  |   |                                         
|Warrant liability     |  | $ | 355,992       |  | $ | -                                       
|Total                 |  | $ | 355,992       |  | $ | -                                       

(f) PROPERTY AND EQUIPMENT

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

Furniture and Fixtures: 5 Years

Computer Equipment: 5 Years

When the Company retires or disposes of items, the Company charges or credits income for the difference between the
net book value of the asset and the proceeds realized thereon.

The Company charges expenditures for maintenance and repairs to operations as incurred while renewals and
betterments are capitalized.

The Company has pledged as collateral all property and equipment, along with all other assets of the Company, for a line
of credit from a related party (see Note 3 - Related Party Note Payable).

7

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(g) INTANGIBLE ASSETS

Intangible assets are comprised of website and software development costs, domain names
and patents. The Company accounts 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, the Company capitalizes internally developed website and software costs when the website or
software under development has reached technological feasibility. The Company amortizes 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, the Company evaluates the unamortized capitalized website and software costs
compared to the net realizable value. The amount by which the unamortized capitalized website costs exceed its net
realizable value is written off.  There were no amounts written off during the six months ended June 30, 2010 and 2009.

The Company accounts for domain names and patents in accordance with ASC 350-30,
General Intangibles Other than Goodwill.  The Company capitalizes patent costs representing legal fees associated
with filing patent applications and amortizes them on a straight-line basis. The Company is in the process of evaluating the
patents' estimated useful life and will begin amortizing the patents when they are brought to the market. Identifiable intangible
assets are amortized 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

The Company accounts 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 long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable. Recoverability is measured by comparing the carrying amount of an
asset to the expected future undiscounted net cash flows generated by the asset. If the Company determines that the asset
may not be recoverable, or if the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an
impairment charge is recognized to the extent of the difference between the fair value and the asset's carrying amount.  The
Company had no impairment charges during the six months ended June 30, 2010 and 2009.

(i) REVENUE RECOGNITION

The Company derives its revenues from services, which are comprised of providing electronic
access to consumer medical records and other vital documents and from the licensing of its services. Revenue is recognized
only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and
collectability of the resulting receivable is reasonably assured.

The Company's 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. The Company defers the
portions of annual recurring subscription fees collected in advance and recognizes them on a straight line basis over the
subscription period.

The Company grants exclusive licenses for the sale and marketing of its 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. License fee revenues
received in advance from international licensees for the grant of the license are deferred and recognized over the period
covered by the agreement. Minimum guaranteed royalty payments received in advance are deferred and recognized over the
period to which the royalty relates. All such revenues are included under "License Fees and Other." In those cases where a
license agreement contains multiple deliverables, the agreement is accounted for in accordance with ASC 605-25,
Revenue Recognition - Multiple-Element Arrangements.

The Company recognizes revenue on sales of its MMRPro system in accordance with ASC 605-25, "Revenue
Recognition, Multiple-Element Arrangements." The Company has 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. As this is the first time the Company is
selling MMRPro, there was no impact related to adoption of ASU 2009-13.

The Company's multiple-deliverable arrangements consist solely of its MMRPro product. The MMRPro product is a
system that allows health providers and others to scan patient records, index them and securely store them online.

Significant deliverables within these arrangements include a sophisticated scanning equipment , various licenses to use
third party software, a license to use MMRGlobal's proprietary MMRPro application software, dedicated telephone lines,
secure online storage and warranties.

8

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All elements were determined 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 and certain software elements of these
arrangements occurs at the inception of the agreement. Installation and training are also delivered at the inception of the
agreement. Other software licenses, telephone lines and online secure storage are provided over the three year term of the
agreement. Warranties are included in the arrangements, however the third party product manufacturer, and not the
Company, is the obligor for such warranties. The contracts are generally paid in advance and are not refundable.

The Company allocates the revenue derived from these arrangements among all the deliverables. Such allocation is
based on the relative selling price of each deliverable. With the exception of MMRGlobal's proprietary MMRPro application
software, the Company used 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, the Company estimated the selling price
based on recent discussions regarding licensure of that particular application on a standalone basis. To date it has not
licensed this software on a standalone basis.

The allocated revenue for each deliverable is recognized in accordance with SEC Staff Accounting Bulletin
("SAB") No. 104, "TOPIC 13: REVENUE RECOGNITION." Under this guidance revenue is recognized
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. Generally, this results in revenue being recognized 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.

(j) INCOME TAXES AND UNCERTAIN TAX POSITIONS

The Company accounts for income taxes in accordance with ASC 740-10, Income
Taxes.  The Company recognizes 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. A valuation allowance related to a deferred tax asset is
recorded 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. The Company classifies interest and penalties as a
component of interest and other expenses. To date, there have been no interest or penalties assessed or paid.

The Company measures and records 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

The Company expenses advertising costs as incurred.  Advertising expense for the three and
six months ended June 30, 2010 amounted to $100,000, while advertising expense for the three and six months ended June
30, 2009 amount to $0 and $808, respectively.

(l) SHARE-BASED COMPENSATION

The Company accounts for share-based compensation in accordance with ASC 718-20,
Awards Classified as Equity.  The Company applies 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.

The Company accounts for options and warrants issued to non-employees in accordance with
ASC 505-50, Equity-Based Payments to Non-Employees. Options and warrants issued to non-employees are treated
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, the Company will
revalue the associated options and warrants and recognize additional expense based on their then current values.

9

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The fair value of each stock option is estimated on the date of grant using the Black-Scholes option pricing model.
Assumptions relative to volatility and anticipated forfeitures are determined at the time of grant.  Grants of stock options and
warrants during the six months ended June 30, 2010 and 2009 were valued using the following assumptions.

|                        |  | Six Months Ended 
|----------------------- |  | -----------------
|                        |  | June 30,2010     
|                        |  | (Unaudited)      
|                        |  |                  
|Expected life in years  |  | 2-10 years       
|Stock price volatility  |  | 111.85% - 162.27%
|Risk free interest rate |  | 0.87% - 3.87%    
|Expected dividends      |  | None             
|Forfeiture rate         |  | 0%               

The assumptions used in the Black-Scholes models are based upon the following data: (1) The Company uses 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) In the absence of an extensive public market for the Company's shares, the expected stock
price volatility of the underlying shares over the expected term of the option or warrant was taken at approximately the mid-point
of the range for similar companies at the various grant dates. (3) The risk free interest rate is based on published U.S.
Treasury Department interest rates for the expected terms of the underlying options or warrants. (4) Expected dividends are
based on historical dividend data and expected future dividend activity. (5) The expected forfeiture rate is based on historical
forfeiture activity and assumptions regarding future forfeitures based on the composition of current grantees.

(m) NET INCOME/LOSS PER SHARE

The Company applies the guidance of ASC 260-10, Earnings Per Share for calculating the basic and diluted loss
per share. Basic loss per share is calculated by dividing the net loss attributable to common stockholders by the weighted
average number of common shares outstanding. Diluted loss per share is computed 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. Common equivalent shares are excluded from the
computation of net loss per share if their effect is anti-dilutive.

All potential common shares were excluded from the computation of diluted net loss per common share for the three and
six months ended June 30, 2010 and 2009 because they were anti-dilutive due to the Company's net loss position. Stock
options and warrants excluded from the computation totaled 76,047,221 shares for the three and six months ended June 30,
2010 and 32,256,698 shares for the three and six months ended June 30, 2009.

(n) RESEARCH, DEVELOPMENT AND ENGINEERING

The Company expense research, development and engineering costs as incurred and presented as technology
development in the accompanying consolidated statements of operations.  The Company capitalizes and amortizes 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.

(o) CONCENTRATIONS

For the three months ended June 30, 2010, the Company's four largest customers (Mohammad Khilji Healthcare
Financial Consultant at $41,261, E-Mail Frequency at $34,187, Coverdell at $31,214 and Alexian at $27,706) accounted for
approximately 68.2% of the Company's total revenue.   For the six months ended June 30, 2010, these same four customers
(Mohammad Khilji Healthcare Financial Consultant at $41,261, E-Mail Frequency at $34,187, Coverdell at $57,811 and
Alexian at $65,976) accounted for approximately 69.6% of the Company's total revenue.

For the three months ended June 30, 2009, the Company's then three largest customers (MMR-Australia at $74,136,
Medicalert at $17,894 and Alexian at $28,385) accounted for approximately 74.3% of the Company's total revenue.   For the
six months ended June 30, 2009, these same three customers (MMR-Australia at $127,418, Medicalert at $37,409 and
Alexian at $67,001) accounted for approximately 75.3% of the Company's total revenue.

10

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(p) RECENT ACCOUNTING PRONOUNCEMENTS

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 is effective for 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 is effective beginning the first quarter of
2011.  The Company is currently evaluating the impact of this standard on the Company's financial statements.

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, the Chairman and CEO of the Company, 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.  On April 29, 2009, the Company
agreed to restructure MMR's secured credit facility with The RHL Group and entered into a Secured Credit Restructuring
Agreement with MMR, The RHL Group and Mr. Lorsch, (the "Restructuring Agreement"). The Company issued The RHL
Group a Third Amended and Restated Note and the Company agreed to guaranty MMR's obligations under the Third
Amended Note. On April 29, 2010, the Company, The RHL Group and Robert H. Lorsch entered into a Fourth Amended and
Restated Secured Promissory Note (the "Fourth Amended Note"), and the Company 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") due immediately. In the event the Fourth Amended Note is renewed
for an additional six-month term, The RHL Group is due an additional $200,000 loan origination fee. In addition, The RHL
Group received 2,614,684 warrants to purchase shares of the Company's common stock at an exercise price of $0.21 per
share. The warrants are fully vested and are exercisable in cash or on a cashless basis at any time prior to their fourth
anniversary of issuance.

The RHL Group Note payable had a balance of $1,154,175 at June 30, 2010.  The components of the RHL Group Note
payable and the related balance sheet presentation as of June 30, 2010 are: (1) $909,351, which is included in the line of
credit, related party; and (2) $244,824, 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 ("Fee") in connection with the Fourth Amended
Note. On May 20, 2010, The RHL Group exercised 1,600,000 warrants with an exercise price of $0.125 in consideration for
the Company $200,000 Fee. The Fee was recorded as a deferred financing cost and is being amortized over the Fourth
Amended Note maturity period.  As of June 30, 2010, the remaining unamortized origination fee was $166,667.

Total interest expense on this note for the three months ended June 30, 2010 and 2009 amounted to $30,656 and
$27,608, respectively.  Total interest expense on this note for the six months ended June 30, 2010 and 2009 amounted to
$66,959 and $48,042, respectively.  The unpaid interest balance as of June 30, 2010 and December 31, 2009 was $13,885
and $45,155, respectively.

In conjunction with the loan agreement noted above, MMRGlobal was required to maintain certain financial covenants,
including the requirement that MMRGlobal have at least $200,000 in cash in its 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, 2010. As of June 30, 2010, MMRGlobal was in compliance with
its financial covenants under the terms of the Fourth Amended Note.

11

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NOTE 4 - PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets include the following:

|                                                      |  |   | June 30,    |  |   | December 31,
|----------------------------------------------------- |  | - | ----------- |  | - | ------------
|                                                      |  |   | 2010        |  |   | 2009        
|                                                      |  |   | (Unaudited) |  |   |             
|                                                      |  |   |             |  |   |             
|Prepaid consulting fees from issuance of common stock |  | $ | 421,095     |  | $ | 380,395     
|Prepaid insurance                                     |  |   | 171,040     |  |   | 183,710     
|Deferred financing costs (loan origination fees)      |  |   | 166,667     |  |   | 21,250      
|Prepaid trade shows                                   |  |   | 17,375      |  |   | 18,451      
|Prepaid rent from issuance of common stock            |  |   | -           |  |   | 6,900       
|Prepaid other                                         |  |   | 10,959      |  |   | 1,431       
|                                                      |  |   |             |  |   |             
|Total prepaid expenses and other current assets       |  | $ | 787,136     |  | $ | 612,137     

NOTE 5 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses include the following:

|                                                   |  |   | June 30,  |  |   | December 31,
|-------------------------------------------------- |  | - | --------- |  | - | ------------
|                                                   |  |   | 2010      |  |   | 2009        
|                                                   |  |   |           |  |   |             
|Legal and accounting fees                          |  | $ | 1,844,327 |  | $ | 1,991,526   
|Accounts payable and accruals from Favrille Merger |  |   | 327,956   |  |   | 532,505     
|Trade payables                                     |  |   | 271,691   |  |   | 286,758     
|Consulting services                                |  |   | 52,875    |  |   | 136,154     
|Accrued vacation                                   |  |   | 31,033    |  |   | 18,502      
|Interest payable                                   |  |   | -         |  |   | 13,777      
|                                                   |  |   |           |  |   |             
|Total accounts payable and accrued expenses        |  | $ | 2,527,882 |  | $ | 2,979,222   

NOTE 6 - INCOME TAXES

Under ASC 740-270, Income Taxes - Interim Reporting, the Company is required to adjust its effective tax rate
each quarter to be consistent with the estimated annual effective tax rate. The Company is 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, jurisdictions with a projected
loss for the year or a year-to-date loss where no tax benefit can be recognized are excluded from the 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, the Company has performed an analysis of its previous tax filings and
determined that there were no positions taken that it considered uncertain. Therefore, there were no unrecognized tax
benefits as of June 30, 2010.

MMR, in its capacity as the operating company taking over MMRGlobal's 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. This is based on an
expectation that the combined entity will generate net operating losses in 2010, 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
six months ended June 30, 2010.

12

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NOTE 7 - COMMITMENTS AND CONTINGENCIES

Leases

The Company leases certain facilities and equipment under non-cancelable capital and operating leases, which expire at
various dates through 2011.  Effective May 1, 2009, the Company entered into a lease agreement to lease additional office
space in Beverly Hills, California. The lease is month-to-month and requires a monthly payment of $7,667 commencing in
June 2009.  Total rent expense for the three months ended June 30, 2010 and 2009 was $32,405 and $10,600, respectively.
Total rent expense for the six months ended June 30, 2010 and 2009 was $49,630 and $19,600, respectively.  Future
minimum lease payments as of June 30, 2010, 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 
|                             |  |   |           |  |   |        
|2010 (remainder of)          |  | $ | -         |  | $ | 7,114  
|2011                         |  |   | -         |  |   | 8,959  
|Total minimum lease payments |  | $ | -         |  |   | 16,073 
|Less interest portion        |  |   |           |  |   | (1,023)
|                             |  |   |           |  | $ | 15,050 

Guarantee provided by The RHL Group

Under the terms of an agreement with an investor who purchased $500,000 of MMR's Series B Preferred shares in 2006,
the Company entered into an agreement to invest $250,000 in a joint venture with the investor to establish an entity to market
and sell the Company's services in the countries of Japan, China, Korea, Taiwan and Thailand. The Company has paid
$100,000 to date of this amount which the Company has expensed during the year ended December 31, 2009 as the
Company has since terminated its relationship with the investor. To date, no joint venture has been formalized or incorporated
and no operations have commenced. In September 2007, The RHL Group provided the investor with a guarantee that the
Company would meet its obligations under this agreement in exchange for 300,000 shares of restricted MMR common stock
valued at $39,000. As consideration for renewing the guarantee when it expired in September 2008, in January 2009, MMR
issued The RHL Group 100,000 shares of MMR common stock, which became 328,174 shares of MMRGlobal common stock
upon the closing of the Merger, valued at approximately $5,000. This expense has been reflected in general and
administrative expenses in the accompanying consolidated statement of operations for the year ended December 31, 2009.
On January 6, 2010, the Company entered into a settlement agreement with the investor to provide for full and final
settlement of any and all claims pertaining to any license rights for MMR-Asia to market, sell and sublicense MMRGlobal and
MMR products and services. As part of this settlement agreement, the Company granted 1,388,889 shares of common stock
to the investor in January 2010.  The value of these shares amounted to $138,889, and has been recorded as an expense in
the accompanying consolidated statement of operations during the year ended December 31, 2009.

Guarantee provided by Robert H. Lorsch

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

Litigation Matters

From time to time, the Company is involved in various legal proceedings generally incidental to its business. While the
result of any litigation contains an element of uncertainty, 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 the
Company's financial statements.

On April 30, 2010, the Company filed a petition in the New York Supreme Court against the Lymphoma Research
Foundation ("LRF"), a California nonprofit corporation, to enforce the Company's rights to a portion of 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.  The Company answered LRF's action and filed counterclaims on July 6, 2010.
Although the Company and LRF have met in mediation, meanwhile the litigation is ongoing.

13

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NOTE 8 - STOCKHOLDERS' DEFICIT

Preferred Stock

As of December 31, 2008, there were 3,332,694; 1,263,750; and 1,580,082 shares of MMR's Series A, Series B and
Series C Preferred Stock, respectively, issued and outstanding. Immediately prior to the Merger, the outstanding MMR
preferred stock was converted to MMR common stock, representing an aggregate of 6,176,526 shares, which converted into
MMRGlobal common stock in the Merger on January 27, 2009.  As of June 30, 2010 and December 31, 2009, there were no
shares of MMR preferred stock issued and outstanding.

The Company has 5,000,000 shares of MMR preferred stock authorized. As of June 30, 2010 and December 31, 2009,
there were no shares of MMR preferred stock issued and outstanding.

Common Stock

Immediately prior to the Merger, there were 41,254,550 shares of MMRGlobal common stock issued and outstanding. On
July 10, 2009, the stockholders of the Company approved an increase to the shares of common stock it is authorized to issue.
As of June 30, 2010, the Company was authorized to issue 650,000,000 shares of common stock.

Pursuant to the Merger Agreement, MMRGlobal agreed to issue (or reserve for issuance) an aggregate 92,599,196
shares of MMRGlobal 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.

Immediately prior to the Merger, and including the conversion of 6,176,526 shares of MMR preferred stock into MMR
common stock, the issuance of 100,000 shares of MMR common stock to The RHL Group for renewal of a guarantee (see
Note 7), MMR had 24,320,100 shares of common stock issued and outstanding. At the effective time of the Merger, and in
accordance with the terms of the Merger Agreement, these shares of outstanding MMR common stock automatically
converted into 79,812,087 shares of MMRGobal common stock.

As of June 30, 2010, the total shares of the Company's common stock issued and outstanding amounted to
221,867,998.

Warrants for Purchase of Preferred B shares

On April 1, 2007, MMR granted 200,000 warrants to purchase Series B Preferred Stock of MMR at an exercise price of
$2.00. The warrants were issued to the largest distributor of employee assistance services in the US as an incentive to
market and sell MMR's services into their customer base. The related services agreement was for five years, and the
customer never bought any services from MMR.

Upon closing of the Merger on January 27, 2009, these warrants converted into warrants to purchase 656,346 shares of
MMRGlobal common stock at an exercise price of $0.61 per share. There was no additional expense recorded during the
three and six months ended June 30, 2010 resulting from the modification of these warrants.

NOTE 9 - EQUITY ISSUANCES

Stock Option Activity

On January 21, 2010, the Company's Board of Directors approved an increase to the number of shares authorized for
issuance under the 2001 Equity Incentive Plan (the "Plan") from 12,000,000 to 27,000,000 shares as the original Plan was not
deemed adequate to retain key directors, executives and managers. The Company's stockholders approved the increase to
the Plan on June 15, 2010.

14

---



A summary of option activity for the six months ended June 30, 2010 is presented below.  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.

|                                         |  |             |  |   |           |  | Average     |   |          
|---------------------------------------- |  | ----------- |  | - | --------- |  | ----------- | - | ---------
|                                         |  |             |  |   | Weighted- |  | Remaining   |   |          
|                                         |  |             |  |   | Average   |  | Contractual |   | Aggregate
|                                         |  |             |  |   | Exercise  |  | Life        |   | Intrinsic
|                                         |  | Options     |  |   | Price     |  | (Years)     |   | Value    
|                                         |  |             |  |   |           |  |             |   |          
|Outstanding at December 31, 2009         |  | 17,461,649  |  | $ | 0.12      |  | 4.00        | $ | 54,582   
|Granted                                  |  | 25,127,891  |  |   | 0.11      |  |             |   |          
|Exercised                                |  | (1,457,419) |  |   | 0.12      |  |             |   |          
|Cancelled                                |  | (164,087)   |  |   | 0.05      |  |             |   |          
|Outstanding at June 30, 2010 (unaudited) |  | 40,968,034  |  |   | 0.12      |  | 6.94        | $ | 1,870,645
|                                         |  |             |  |   |           |  |             |   |          
|Vested and expected to vest              |  |             |  |   |           |  |             |   |          
|at June 30, 2010 (unaudited)             |  | 40,968,034  |  |   | 0.12      |  | 6.94        | $ | 1,870,645
|                                         |  |             |  |   |           |  |             |   |          
|Exercisable at June 30, 2010 (unaudited) |  | 13,027,306  |  |   | 0.12      |  | 3.48        | $ | 534,600  

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, 2010 and 2009 amounted to $306,585 and
$104,893, respectively.  Total stock option expense recorded during the six months ended June 30, 2010 and 2009 amounted
to $962,525 and $217,602, respectively, and is reflected in operating expenses in the accompanying consolidated statements
of operations.

The following table summarizes information about stock options outstanding and exercisable at June 30, 2010.

|  |             |  | Options Outstanding |  | Options Exercisable
|- | ----------- |  | ------------------- |  | -------------------
|  |             |  |                     |  | Weighted           
|  |             |  |                     |  | Average            
|  | Exercise    |  | Number              |  | Remaining          
|  | Price       |  | of Shares           |  | Life (Years)       
|  |             |  |                     |  |                    
|$ | 0.05        |  | 1,181,432           |  | 0.95               
|  | 0.09 - 0.13 |  | 35,396,191          |  | 6.99               
|  | 0.17 - 0.23 |  | 4,390,411           |  | 8.16               
|  |             |  | 40,968,034          |  |                    

Warrants

On November 7, 2007, in conjunction with the registered direct offering of an aggregate of 7.4 million shares, the
Company issued warrants to purchase up to 4.4 million shares of the Company's common stock at an exercise price of $2.77
per share. The warrants are exercisable as of the date of grant through November 7, 2012. The Company 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. ASC 815-40 was applied to determine that the
liability is accounted for as a derivative (see 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 $355,992 and $88,998 as of June 30,
2010 and December 31, 2009, respectively. The increase in fair value of $266,994 was presented as change in valuation of
derivative liabilities in the accompanying consolidated statements of operations.

Immediately prior to the Merger, the Company issued warrants to acquire 9,999,992 shares of MMRGlobal's common
stock at an 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 the statement of
operations of MMRGlobal. There is no impact of this transaction recorded on the accompanying consolidated statement of
operations for the three and six months ended June 30, 2010.

15

---



In January, March, April, May and June 2010, the Company granted to one employee, two different related parties and
seventeen different unrelated third-parties (the "Holders") a total of 11,698,202 warrants to purchase shares of the Company's
common stock in connection with the 12% Convertible Promissory Note ("the Convertible Notes") at an exercise price equal
to the lesser of (i) the product of 50% multiplied by the arithmetic average of the dollar volume-weighted average price
("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. The total value of these warrants amounted to $1,650,725, which was bifurcated from
the Convertible Notes and accounted for as a discount on debt. 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 $1,650,725
discount was recorded to interest expense during the six months ended June 30, 2010 with an offset to additional paid in
capital. During the three months ended June 30, 2010, the discount recorded to interest expense was $805,243. See Note 11
below.

On January 26, 2010, the Company issued warrants to Alexian Brothers Foundation's building and capital fund consisting
of two warrants: (a) an immediate grant of a warrant to acquire up to 500,000 shares of Common Stock, exercisable at any
time on or before December 31, 2011, with an exercise price of $0.25 per share payable in cash or through a cashless
exercise at the option of the holder and (b) an immediate grant of a warrant to acquire up to 500,000 shares of Common
Stock, exercisable at any time on or before December 31, 2013, with an exercise price of $0.35 per share payable in cash or
through a cashless exercise at the option of the holder.  These warrants had an aggregate value of $62,251, and were
recorded in sales and marketing expenses during the six month ended June 30, 2010.

In March 2010, the Company granted an aggregate total of 650,000 warrants to purchase shares of the Company's
common stock as payment for services.  The warrants had exercise prices of $0.12 per share, with contractual lives through
March 1, 2015.  Of the warrants issued, 150,000 vested immediately, and 500,000 begin vesting in September 2010 after the
consultant has completed six months of service.  From the vesting commencement date, these warrants vest in eight
quarterly installments through September 30, 2012.  The warrants had an aggregate value of $63,451, of which $4,867 and
$19,884 was recorded as operating expenses during the three and six months ended June 30, 2010, respectively.

On April 14, 2010, the Company granted 250,000 warrants to purchase shares of the Company's common stock to a
third-party as payment for services.  The warrants had exercise prices of $0.16 per share, with contractual lives through April
14, 2015.  From the vesting commencement date, these warrants vest in 24 monthly installments.  The warrants had an
aggregate value of $32,688, of which $3,448 was recorded as operating expenses during the three months ended June 30,
2010.

On April 29, 2010, the Company granted 2,614,684 warrants to purchase shares of the Company's common stock to The
RHL Group in connection with the Fourth Amended Note (see Note 3).  The warrants had exercise prices of $0.21 per share,
with contractual lives through April 28, 2014.  The warrants vested immediately and had an aggregate value of $456,480,
which was recorded as interest expense during the three months ended June 30, 2010.

On May 11, 2010, the Company granted 550,000 warrants to purchase shares of the Company's common stock to a
third-party as payment for services.  The warrants had exercise prices of $0.25 per share, with contractual lives through May
11, 2015.  From the vesting commencement date, these warrants vest quarterly over twelve months.  The warrants had an
aggregate value of $107,375, of which $14,709 was recorded as operating expenses during the three months ended June 30,
2010.

On June 21, 2010, the Company granted 1,000,000 warrants to purchase shares of the Company's common stock to a
third-party.  The warrants had an exercise price of $0.21 per share, with contractual lives through June 30, 2012.   Fifty
percent of the warrants vest and are exercisable upon the Company's receipt of an aggregate of 500 customer agreements
and the remaining fifty percent upon the Company's receipt of an additional 300 customer agreements. The warrants had an
aggregate value of $159,056, of which $0 was recorded as operating expenses during the three months ended June 30,
2010.

The following summarizes the total warrants outstanding and exercisable as of June 30, 2010.

|  |             |  | Warrants Outstanding |  | Warrants Exercisable
|- | ----------- |  | -------------------- |  | --------------------
|  |             |  |                      |  | Weighted            
|  |             |  |                      |  | Average             
|  | Exercise    |  | Number               |  | Remaining           
|  | Price       |  | of Shares            |  | Life (Years)        
|  |             |  |                      |  |                     
|$ | 0.12 - 0.61 |  | 29,892,005           |  | 3.73                
|  | 1.80 - 2.77 |  | 4,459,910            |  | 2.36                
|  | 3.98 - 5.26 |  | 3,341,956            |  | 0.78                
|  |             |  | 37,693,871           |  |                     

The weighted average fair value of warrants granted during the six months ended June 30, 2010 amounted to $0.15 per
warrant.

16

---



Shares Issued for Services or Reduction to Liabilities

During the six months ended June 30, 2010, the Company issued 8,638,606 shares of common stock with a value of
$1,230,427 to non-employees and charged to the appropriate accounts for the following reasons:

|Purpose                   |  |  | Shares    |     |   | Value    
|------------------------- |  |  | --------- | --- | - | ---------
|                          |  |  |           |     |   |          
|Services provided         |  |  | 2,593,221 | (1) | $ | 384,776  
|Settlement with MMR Asia  |  |  | 1,388,889 |     |   | 138,889  
|Capital contribution fund |  |  | 1,000,000 |     |   | 90,000   
|Reduction of payables     |  |  | 2,716,544 |     |   | 449,762  
|Prepaid trade conferences |  |  | 939,952   |     |   | 167,000  
|                          |  |  |           |     |   |          
|Totals                    |  |  | 8,638,606 |     | $ | 1,230,427

(1)   Includes 147,124 shares issued to two members of the Board of Directors valued at $21,000.

The 8,638,606 shares were not contractually restricted, however as they were unregistered they were restricted from sale
until the requirements of Rule 144 under the Securities Act permit such sale. All such shares were issued at the trading
closing price on the date of issuance and such value was calculated therefrom.

Restricted Stock Program

Under the Restricted Stock Program, a restricted stock award is an offer by the Company to sell to an eligible person
shares that are subject to restrictions relating to the sale or transfer of the shares. A committee appointed by the Board to
administer the program or the Board itself shall determine to whom an offer will be made, the number of shares the person
may purchase, the price to be paid and the restriction to which the shares shall be subject. The offer must be accepted by the
eligible person within thirty days from the date of the offer evidenced by the Restricted Stock Purchase Agreement. The
purchase price of shares shall not be less than 85% of the fair market value of such shares on the issue date, with the
provision that the purchase price for a 10% stockholder shall not be less than 110% of such fair market value. Shares are
either fully and immediately vested upon issuance, or may vest in installments upon attainment of specified performance
objectives.  No shares were issued under the Restricted Stock Program during the three and six months ended June 30, 2010
or 2009.

Stock Bonus Program

Under the Stock Bonus Program, shares are issued as a bonus for past services rendered pursuant to the Stock Bonus
Agreement. Stock bonuses may be awarded upon satisfaction of specified performance goals pursuant to the Performance
Stock Bonus Agreement. No shares were issued under the Stock Bonus Program during the three and six months ended
June 30, 2010 or 2009.

Derivative Liabilities

In accordance with ASC 815-40, on January 27, 2009, the Company performed an analysis as if all holders of options
and warrants exercised their rights under those contracts. This analysis resulted in the conclusion that the Company had
inadequate authorized shares to settle 100% of these contracts. Therefore, as stockholder approval would be necessary to
increase the number of authorized shares, settlement of these obligations would not be within the control of the Company.
Consequently certain non-employee options and warrants were accounted for as derivative liabilities in accordance with ASC
815-40.

The event giving rise to this condition was the merger between Favrille, Inc. and MyMedicalRecords.com, Inc. on January
27, 2009. On that date, the fair value of 3,436,458 vested non-employee options and 15,218,890 vested warrant contracts
subject to this analysis was reclassified from equity to derivative liabilities. The condition was remedied on June 13, 2009
when certain of the option and warrant holders waived their rights under those contracts until such time that the Company had
250 million or more shares authorized. On March 31, 2009 and June 13, 2009, these contracts were again valued using the
Black-Scholes option valuation model and the difference between the original value at January 27, 2009 of $871,052 and the
values at March 31, 2009 and June 13, 2009 of $2,665,889 and $1,377,033, respectively, was recorded as a gain on change
in value of derivatives for the three months ended June 30, 2009 and a loss on change in value of derivatives for the six
months ended June 30, 2009. On June 13, 2009, the derivative liabilities were reclassified back into equity resulting in a gain
of $1,288,856 for the three months ended June 30, 2009 and a loss of $505,981 for the six months ended June 30, 2009.

17

---



On July 16, 2009, the Company entered into a 12% Convertible Promissory Note with an unrelated third-party for a
principal amount totaling $30,000. Subsequently, the Company entered into identical 12% Convertible Promissory Notes ("the
Convertible Notes") with four other unrelated third-parties for an additional $530,000. Each Convertible Note is convertible into
shares of common stock by dividing (i) the then outstanding balance of such note by (ii) the product of eighty percent (80%)
multiplied by the arithmetic average of the volume weighted average 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 conversion date. In addition,
the Company granted a total of 3,110,000 warrants to purchase shares of the Company's common stock in connection with
the 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. Such arrangement resulted in the possibility that the Company may not have enough authorized
shares to settle these obligations using common stock. Instead, there is the possibility, although remote, that it might need 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.

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 warrants granted
in connection with the Convertible Notes were exercised. On March 31, 2010 and May 5, 2009, these contracts were again
valued using the Black-Scholes option valuation model and the difference between the value at December 31, 2009 of
$1,534,824 and the values at March 31, 2010 and May 5, 2010 of $3,576,430 and $7,448,516, respectively, was recorded as
a loss on change in value of derivatives for the three and six months ended June 30, 2010 of $3,876,085 and $5,843,735,
respectively. On May 5, 2010, the value of the derivative liabilities was reclassified back into equity.

None of the derivatives liabilities were designated as hedging instruments.

The following is a reconciliation of all derivative liabilities:

|Value at December 31, 2009                                                                               | $ | 1,715,650   
|-------------------------------------------------------------------------------------------------------- | - | ------------
|Change in value of derivative liability                                                                  |   | 6,129,563   
|Establishment of derivative liability for non-employee options and warrants granted in 2010              |   | 3,650,334   
|Reclassification back to equity for non-employee options and warrants on conversion of convertible notes |   | (11,139,555)
|Value at June 30, 2010 (unaudited)                                                                       | $ | 355,992     

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

|                        |  | June 30, 2010     |  | December 31, 2009
|----------------------- |  | ----------------- |  | -----------------
|                        |  |                   |  |                  
|Expected life in years  |  | 0.33 - 4.95 yrs   |  | 0.02 - 4.63 yrs  
|Stock price volatility  |  | 128.92% - 210.40% |  | 111.89% - 187.44%
|Risk free interest rate |  | 0.15% - 2.31%     |  | 0.04% - 2.69%    
|Expected dividends      |  | None              |  | None             
|Forfeiture rate         |  | 0%                |  | 0%               

18

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NOTE 10 - NOTES PAYABLE

Notes payable consisted of the following.

|                                                                                                                                                                                                                                     |  |   | June 30,    |  |   | December 31,
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | - | ----------- |  | - | ------------
|                                                                                                                                                                                                                                     |  |   | 2010        |  |   | 2009        
|                                                                                                                                                                                                                                     |  |   | (Unaudited) |  |   |             
|                                                                                                                                                                                                                                     |  |   |             |  |   |             
|Promissory notes payable due to the former officers of MMRGlobal aspart of severance packages, due in full on August 31, 2009 with nostated interest                                                                                 |  | $ | 76,783      |  | $ | 76,783      
|                                                                                                                                                                                                                                     |  |   |             |  |   |             
|Promissory notes payable due to the two remaining officers ofMMRGlobal pursuant to the Resignation and Post-Merger EmploymentArrangement,
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     
|                                                                                                                                                                                                                                     |  |   |             |  |   |             
|Promissory notes payable due to PM Creative Corporation, due in full onJuly 30, 2011, with a 12% per annum stated interest.                                                                                                          |  |   | -           |  |   | 125,000     
|                                                                                                                                                                                                                                     |  |   | 325,343     |  |   | 450,343     
|Less: current portion                                                                                                                                                                                                                |  |   | 325,343     |  |   | 325,343     
|Notes payable, less current portion                                                                                                                                                                                                  |  | $ | -           |  | $ | 125,000     

On March 16, 2010, the $125,000 principal and unpaid interest on the PM Creative Corporation
Promissory Note was converted into a 12% Convertible Promissory Note. See Note 11.

NOTE 11 - CONVERTIBLE PROMISSORY NOTES

In January, March, April, May and June 2010, the Company entered into 12% Convertible Promissory Notes with one
employee, two related parties and seventeen unrelated third-parties for a principal amount totaling $2,008,152. Under the
terms of the agreements, principal amounts owed under the Notes become due and payable on June 30, 2010, August 31,
2010, September 30, 2010, November 30, 2010 and October 31, 2010 provided that, upon ten (10) days' prior written notice
to the Holder, the Company may, in its sole discretion, extend the maturity date to December 31, 2010, January 31, 2011 and
June 30, 2011.The 12% Convertible Promissory Notes bear an interest of 12% per annum payable in cash or shares of
common stock, or a combination of cash and shares of common stock.

The Notes are convertible at the option of the holders into common stock at a variable conversion price of eighty percent
(80%) 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 conversion date, subject
to anti-dilution and other customary adjustments.

In connection with the Notes, the Company also issued warrants to purchase an aggregate of 11,698,202 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 exercise date, or (ii)
$0.15, subject to anti-dilution and other customary adjustments.

By virtue of the Notes' variable conversion ratio, a possibility exists, although remote, that the Notes may be convertible
into shares of Common Stock that exceed the currently authorized limit. Consequently, a possibility exists that the Company
might be placed in a position of net settling the Notes for an amount that exceeds their face value. This resulted in the
conversion feature being a derivative under ASC 815-10.
As of May 5, 2010, all the Notes had been converted and the possibility of net settlement was not longer existent.

Additionally, as a result of the above, all outstanding options and warrants issued to non-employees, including the
warrants issued in connection with the Notes, are also derivatives as they too could require net settlement in the absence of
adequate authorized shares. See Note 9 Derivative Liabilities.
As of May 5, 2010, all the Notes had been converted and the possibility of net settlement was not longer existent.

19

---



The fair value of the conversion feature of the Notes and related warrants was derived using the Black-Scholes option
valuation model, resulting in an aggregate fair value of $3,560,564. For seventeen of the Notes issued during the six months
ended June 30, 2010, the fair value of the conversion feature of the Notes and related warrants exceeded the face value of
the Notes by $1,554,380 and such amount was recorded as a deferred financing cost. The fair value of the conversion feature
of the Notes and related warrants, net of the deferred financing cost, was deducted from the Notes, resulting in an initial value
ascribed to the Notes of $1,968. 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.

The following table summarizes the Convertible Promissory Notes and discounts upon issuance:

|Convertible Promissory Notes at face value |  | $ | 2,008,152  
|------------------------------------------ |  | - | -----------
|Conversion feature derivative discount     |  |   | (1,642,503)
|Warrant derivative discount                |  |   | (1,918,061)
|Deferred financing costs                   |  |   | 1,554,380  
|Initial value of Notes                     |  | $ | 1,968      

On the same day the $2,008,152 in principal amount of Notes entered into between January and June 2010 were issued,
all of the Note holders converted their Notes into 21,866,500 shares of common stock and exercised the 11,698,202 warrants.
On these dates the entire conversion feature and warrant discounts on these Notes was recognized as interest expense. The
total interest expense for the three and six months ended June 30, 2010 was $1,602,266 and $3,560,566, respectively.

In addition, on February 24, 2010, February 26, 2010 and May 5, 2010, four Note holders with principal amounts of
$180,000 outstanding at December 31, 2009, converted their Notes into 1,663,103 shares of common stock. One of these
note holders also exercised 350,000 warrants issued in connection with the Notes. On these dates the unamortized values of
the conversion feature and warrant discounts on these Notes of $13,063 was recognized as interest expense for the six
months ended June 30, 2010.

The following table shows activity in the Notes account during the six months ended June 30, 2010:

|Value of Notes at December 31, 2009 |  | $ | 166,937    
|----------------------------------- |  | - | -----------
|Conversion to common stock          |  |   | (2,188,152)
|Accretion of converted Notes        |  |   | 2,021,215  
|Value of Notes at June 30, 2010     |  | $ | -          

NOTE 12 - RESTRUCTURING ACTIVITIES

From May 29, 2008 to November 7, 2008, MMRGobal had provided notices under the federal Worker
Adjustment and Retraining Notification Act to 142 employees, including six members of senior management, that it planned to
conduct a workforce reduction at its facility in San Diego, California 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 on January
27, 2009, the total severance liability relating to former MMRGlobal employees amounted to $1,682,416. On January 27,
2009, immediately prior to the Merger, as part of the 9,999,992 warrants issued to creditors (see Note 9), the Company
issued warrants as settlement of $985,020 of these amounts. In addition, the Company 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, 2010, the total remaining severance liabilities amounted to $620,613, which is reflected as severance
liability on the accompanying consolidated balance sheets. This 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. No payments
were made during the six months ended June 30, 2010 on these severance liabilities.

During the period from January 27, 2009 through June 30, 2009, the Company entered into a series of settlement
agreements with certain vendors of MMRGlobal pursuant to the Creditor Plan, in which the Company settled approximately
$245,853 of its outstanding accounts payable for an aggregate settlement amount of $193,628.  This resulted in a gain of
$36,945 and $89,170, which has been recorded as a gain on settlement of payables in the accompanying consolidated
statement of operations for the three and six months ended June 30, 2009, respectively.  There was no such gain recorded
during the three and six months ended June 30, 2010.

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NOTE 13 - 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, Inc., beneficially owns approximately 26.7% our total outstanding voting stock. The RHL Group, Inc. 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 the
Company, which we refer to as the RHL Services. As part of the RHL Services, The RHL Group provides the Company 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 the Company. The RHL Group also provides
infrastructure support to the Company, including allowing the Company unlimited access to its facilities, equipment, and data,
information management and server systems. In addition to allowing the Company the use of its office support personnel, The
RHL Group also has consented to allow the Company to utilize the full-time services of Mr. Lorsch as the Company's
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 the Company's spokesperson, for personal appearances, tradeshows and hosting the Company's product
videos. Ms. Reed also helps manage the Company's social networking activities.

The Company incurred $12,500 during the three months ended June 30, 2010 and 2009, towards marketing consulting
services from Bernard Stolar, a director. The Company incurred $25,000 and $30,000 during the six months ended June 30,
2010 and 2009, respectively, towards marketing consulting services Mr. Stolar. Included in related party payables at June 30,
2010 and December 31, 2009 was $60,700 and $106,368, respectively, with respect to these services. In addition, on
January 27, 2010, the Company granted the Mr. Stolar 4,000,000 options to purchase common stock in the company at an
exercise price of $0.10 per share in consideration for director services. The options vest in three annual installments
beginning January 27, 2011.

The Company also incurred $12,500 during the three months ended June 30, 2010 and 2009 and $25,000 during the six
months ended June 30, 2010 and 2009, towards marketing consulting services from Hector Barreto, a director. Included in
related party payables at June 30, 2010 and December 31, 2009 was $$53,950 and $23,500, respectively, with respect to
these services.  In addition, on January 27, 2010, the Company granted the Mr. Barreto 4,000,000 options to purchase
common stock in the company at an exercise price of $0.10 per share in consideration for director services. The options vest
in three annual installments beginning January 27, 2011. Additionally, on January 21, 2010, the Company granted to Mr.
Barreto 50,000 shares of common stock, valued at $5,500 in consideration for sales and marketing services. In the first
quarter of 2009, the Company entered into an agreement with The Latino Coalition, a non-profit organization in which Mr.
Barreto is also the Chairman, to market the Company's product to its members.  The Company paid $2,000 and $4,000
during the three and six months ended June 30, 2009, respectively, to The Latino Coalition for services. No amounts were
paid to the Latino Coalition in 2010.

The Company also incurred $97,680 and $8,333 during the three months ended June 30, 2010 and 2009, respectively,
towards finder's fees and consulting services George Rebensdorf, a director. The Company incurred $128,852 and $18,333
during the six months ended June 30, 2010 and 2009, respectively, towards finder's fees and consulting services from Mr.
Rebensdorf. Included in related party payables at June 30, 2010 and December 31, 2009 was $5,003 and $56,633,
respectively, with respect to these services.  In addition, on January 27, 2010, the Company granted the Mr. Rebensdorf
4,000,000 options to purchase common stock in the company at an exercise price of $0.10 per share in consideration for
director services. The options vest in three annual installments beginning January 27, 2011.

The Company contracts 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,
2010 and 2009, the total expenses relating to this stockholder amounted to $815 and $30,825, respectively.  For the six
months ended June 30, 2010 and 2009, the total expenses relating to this stockholder amounted to $13,348 and $146,947,
respectively.  In addition, the Company capitalized $92,185 of software development costs for the six months ended June 30,
2010. As of June 30, 2010 and December 31, 2009, the total amounts due to the stockholder and included in related party
payables amounted to $607,539 and $617,796, respectively.

On January 6, 2010, the Company entered into a settlement agreement with an MMR-Asia investor to provide for full and
final settlement of any and all claims pertaining to any license rights for MMR-Asia to market, sell and sublicense MMRGlobal
and MMR products and services. Refer to the Guarantee provided by The RHL Group section in Note 7, Commitments
and Contingencies for further details. As part of this settlement agreement, the Company granted 1,388,889 shares of
common stock to the investor.

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The Company incurred costs of $47,165 and $75,904 during the three months ended June 30, 2010 and 2009,
respectively, toward consulting services from Audit Prep Services, LLC. Michael T. Psomas, member of Audit Prep Services,
LLC, is a stockholder of MMRGlobal. The Company incurred costs of $85,060 and $192,026 during the six months ended
June 30, 2010 and 2009, respectively, from Mr. Psomas. At June 30, 2010 and December 31, 2009 the Company had
$24,941 and $64,568, respectively, due to Audit Prep Services, LLC, which was recorded as a related party payable.
Additionally, on February 11, 2010, the Company granted to Mr. Psomas 674,000 shares of common stock, valued at $60,660
in consideration for amounts due to Audit Prep Services, LLC at the time of issuance.

On September 15, 2009, the Company 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. The Company will license an existing
80 million person direct marketing database of street addresses, cellular phone numbers, e-mail addresses and other
comprehensive data (the "Database") with E-Mail Frequency. The agreement allows the Company to market, through the use
of the Database, its MyMedicalRecords Personal Health Record, MyEsafeDepositBox virtual vault, and MMRPro document
management system to physicians and their patients. Under the terms of the Agreement, the Company, upon closing of the
Agreement, paid $250,000 to David Loftus as a one-time consulting fee in the form of 2,777,778 shares of common stock.
The $250,000 one-time licensee fee was recorded as a prepaid consulting fee and included in the prepaid expenses and
other current assets as of December 31, 2009, less amortization of $12,500 included in operating expensed for the year
ended December 31, 2009. Amortization expense for the three and six months ended June 30, 2010 was $12,500 and
$25,000, respectively. In addition, the Company incurred a total of $76,181 during the three and six months ended June 30,
2010 towards a business development services from E-Mail Frequency, LLC and David Loftus.  No such expenses were
incurred during the same periods in 2009. Furthermore, David Loftus is a value-added-reseller of MMRPro systems and
during the second quarter of 2010, David Loftus purchased four MMRPro systems. The Company recognized revenues of
$34,187 for the three and six months ended June 30, 2010 from this sale.  Included in related party payables at June 30,
2010 and December 31, 2009 was $19,103 and $50,577, respectively, in respect to these services. Furthermore, on January
6, 2010, the Company entered into 12% Convertible Promissory Notes with Mr. Loftus for a principal amount totaling
$400,000 and warrants to purchase the Company's common stock. On the date of the investment, Mr. Loftus immediately
converted the 12% Convertible Promissory Notes into shares of common stock and exercised the attached warrants and
received a total 8,860,606 shares of common stock.

NOTE 14 - SUBSEQUENT EVENTS

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". Of such shares, (i) Dutchess has
agreed to purchase 60,000,000 pursuant to the investment agreement dated September 15, 2009, as amended on May 7,
2010, between Dutchess and the Company, and (ii) 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 such investment agreement, the
Company has the right to put up to $10.0 million in shares of our common stock to Dutchess.

On August 6, 2010, the Company filed a Form S-8 related to an increase of 15,000,000 shares, or an increase from
12,000,000 shares to 27,000,000 shares, of the Company's common stock for issuance under the Company's 2001 Equity
Incentive Plan, as amended. The 15,000,000 share increase was approved by the Company's board of directors on January
21, 2010 and subsequently approved by the Company's stockholders at the Company's Annual Meeting of Stockholders held
on June 15, 2010.

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

The following discussion of our financial condition and results of operations should be read 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, 2009 filed with the SEC on
June 30,, 2010 (the "Form 10-K "). This discussion contains forward-looking statements, the accuracy of which
involves risks and uncertainties. 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.

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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 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; and
- 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.

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
the Form 10-K filed on March 31, 2010. 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 and Basis of Presentation

On January 27, 2009, MMRGlobal, Inc. ("MMRGlobal"), (most recently known as MMR Information Systems, Inc.
("MMRIS") and formerly known as Favrille, Inc. ("Favrille"), a Delaware corporation formed in January 2000, and
hereinafter referred to as the "Company") consummated a transaction with MyMedicalRecords, Inc. (formerly known
as mymedicalrecords.com, Inc., a Delaware corporation formed in 2005) ("MMR") through a merger of a wholly-owned
subsidiary of MMRGlobal with and into MMR pursuant to the terms of the Agreement and Plan of Merger and Reorganization
dated November 8, 2008 (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. 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 a wholly-owned subsidiary of the Company, with the former stockholders of MMR collectively owning shares of
the Company's common and preferred stock representing approximately 60.3% of the voting power of the Company's
outstanding capital stock.

For accounting purposes, the Merger was treated as a reverse acquisition with MMR being the
accounting acquirer. Accordingly, the historical financial results prior to the Merger are those of MMR. The results of
operations for MMRGlobal are included in the Company's consolidated financial results beginning on January 27, 2009.

The presentation of consolidated statements of stockholders' equity (deficit) reflects the
historical stockholders' equity (deficit) of MMR through January 26, 2009. The effect of the issuance of shares of MMRGlobal
common stock in connection with the Merger and the inclusion of MMRGlobal's outstanding shares of common stock at the
time of the Merger is reflected in the accompanying consolidated financial statements.

MMR was incorporated in Delaware in 2005 and is headquartered in Los Angeles, CA.
Effective 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., or
MMRGlobal upon stockholder approval at the Company's stockholder meeting. The name change to MMRGlobal more
accurately reflects its global imprint.

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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 is 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.

Source of Revenues

Our revenues are derived 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. The contracts are
generally paid in advance and are not refundable. The Company allocates the revenue derived from these arrangements
among all the deliverables. Such allocation is based on the relative selling price of each deliverable. With the exception of
MMR's proprietary MMRPro application software, the Company used third party evidence to set the selling prices used for this
allocation. Revenues from the sales of MMRPro systems accounted for 55.4% and 0% of our total revenues during the three
months ended June 30, 2010 and 2009, respectively. Revenues from the sale of MMRPro systems accounted for 37.9% and
0% of our total revenues during the six months ended June 30, 2010 and 2009, respectively.

Our revenues are also derived 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.
Revenues from subscriptions accounted for 44.5% and 54.3% of our total revenues during the three months ended June 30,
2010 and 2009, respectively. Revenues from subscriptions accounted for 62.0% and 58.6% of our total revenues during the
six months ended June 30, 2010 and 2009, respectively.

We also have generated revenues from licensing the sale and marketing of our services internationally and, to a lesser
extent, from ancillary fee payments. We record these licensing and other ancillary revenues under "License Fees and Other"
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.  These
fees are recognized over the license period.  When we receive ancillary one-time payments, we record them when services or
products are delivered.  Revenues from licensing fees and other accounted for 0.1% and 45.7% of our total revenues during
the three months ended June 30, 2010 and 2009, respectively.  Revenues from licensing fees and other accounted for 0.1%
and 41.4% of our total revenues during the six months ended June 30, 2010 and 2009, respectively.

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, and costs associated with creating and mailing enrollment packages to our subscribers. 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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Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires
the use of estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and
related disclosures in the financial statements. Critical accounting estimates and assumptions are those that may be material
due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such
matters to change, and that have a material impact on financial condition or operating performance. We base our estimates
and judgments on our experience and on various other factors that we believe to be reasonable under the circumstances.
Actual results may differ from these estimates under different assumptions or conditions. We believe the following critical
accounting policies used in the preparation of our financial statements require significant judgments and estimates. For
additional information relating to these and other accounting policies, see note 2 to our consolidated financial statements
appearing elsewhere in this quarterly report on Form 10-Q.

Revenue Recognition

In general, we recognize revenue for the provision of such services only when the price is fixed or determinable,
persuasive evidence of an arrangement exists, the service is performed and the collectability of the resulting receivable is
reasonably assured.

We follow the provisions of Staff Accounting Bulletin ("SAB") No. 104,"Revenue Recognition in Financial
Statements" ("SAB 104") and accordingly, we recognize annual recurring subscription fees paid in advance on a
straight line basis over the subscription period. In addition, we follow the provisions FASB ASC 605-25 (formerly EITF 00-21,
"Revenue Arrangements with Multiple Deliverables") and accordingly, we defer recognition of upfront fees paid
under our licensing agreement and recognize them over the period covered by the licensing agreement, and similarly, we
defer recognition of minimum guaranteed royalty fees paid in advance under our licensing agreement and recognize them in
the period to which they relate.

The Company recognizes revenue on sales of its MMRPro system in accordance with ASC 605-25, "Revenue
Recognition, Multiple-Element Arrangements." The Company has 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. As this is the first time the Company is
selling MMRPro, there was no impact related to adoption of ASU 2009-13.

Accounting for Income Taxes and Uncertain Tax Positions

Deferred income taxes result primarily from temporary differences between financial and tax reporting. Deferred tax
assets and liabilities are determined based on the difference between the financial statement basis and tax basis of assets
and liabilities using enacted tax rates. Future tax benefits are subject to a valuation allowance when management is unable to
conclude that deferred tax assets will more likely than not be realized from the results of operations. At each of the financial
statement dates presented, we recorded a full valuation allowance against deferred income taxes due to our limited operating
history and net losses recorded since inception. Our estimate for the valuation allowance for deferred tax assets requires
management to make significant estimates and judgments about projected future operating results. If actual results differ from
these projections or if management's expectations of future results change, it may be necessary to adjust the valuation
allowance.

We have generated losses for federal and state income tax reporting since inception. These tax losses are available for
carryforward until their expiration. In addition to potential expiration, there are other factors that could limit our ability to use
our federal and state tax loss carryforwards. For example, use of prior net operating loss carryforwards can be limited after an
ownership change, such as the Merger. Accordingly, it is not certain how much of our existing net operating loss
carryforwards will be available for use. In addition, we must generate taxable income in the future in order to use net
operating loss carryforwards that have not expired. We are in the process of evaluating the effects of the Merger and change
in control of our company under Internal Revenue Code Section 382, which may limit the availability of our net operating loss
carryfowards.

Effective January 1, 2007, we began to measure and record uncertain tax positions in accordance with new
guidance, which prescribes 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 upon adoption of this guidance. The new guidance also provides
guidance on accounting for derecognition, interest and penalties, and classification and disclosure of matters related to
uncertainty in income taxes. Accounting for uncertainties in income tax positions involves significant judgments by
management.

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Intangible Assets

We account for website development costs in accordance with ASC 350-50 (formerly EITF 00-2, "Accounting for
Website Development Costs") and ASC 985-20 (formerly SFAS No. 86 "Accounting for the Costs of Computer
Software to Be Sold, Leased, or Otherwise Marketed "). Pursuant to ASC 350-50 and 985-20, the Company capitalizes
internally developed website costs when the website under development has reached technological feasibility. These costs
are amortized, 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
costs compared to the net realizable value. The amount by which the unamortized capitalized website costs exceed its net
realizable value is written off. The determination of estimated future gross revenues requires the exercise of judgment and
assumptions by our management and actual results could vary significantly from such estimates.

Impairment of Long-Lived Assets and Intangibles

We evaluate long-lived assets and identifiable intangible assets with finite useful lives in accordance with ASC 350-30
and ASC 360 (formerly SFAS No. 144 "Accounting for the Impairment or Disposal of Long-Lived Assets"), and
accordingly, management reviews our long-lived assets and identifiable intangible assets with finite useful lives for impairment
whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We
recognize an impairment loss when the sum of the future undiscounted net cash flows expected to be realized from the asset
is less than its carrying amount. If an asset is considered to be impaired, the impairment to be recognized is measured by the
amount by which the carrying amount of the asset exceeds its fair value. Considerable judgment is necessary to estimate the
fair value of the assets and accordingly, actual results could vary significantly from such estimates. Our most significant
estimates and judgments relating to the long-lived asset impairments include the timing and amount of projected future cash
flows.

Share-Based Compensation

We recognize compensation expense in accordance with ASC 718-20 (formerly SFAS No. 123(R), "Share-Based
Payments"). Accordingly, we recognize share-based compensation in an amount equal to the estimated fair value of
stock-based awards and issuances, such as stock options granted to employees and non-employees and restricted stock
awards. This estimation of the fair value of each stock-based grant or issuance on the date of grant involves numerous
assumptions by management. Although we calculate the fair value of each stock option under the Black Scholes option
pricing model, which is a standard option pricing model, this model still requires the use of numerous assumptions.
Assumptions used in this model include, among others, the expected life (turnover), volatility of the underlying equity security,
and expected dividends. The model and assumptions also attempt to account for changing employee behavior as the stock
price changes and capture the observed pattern of increasing rates of exercise as the stock price increases. Further, in the
absence of an extensive public market for the Company's shares, the expected volatility is based on ranges for similar
companies. The use of different public company comparables in our assumptions and other assumptions by management in
the Black Scholes option pricing model could produce substantially different results.

Derivative Liabilities

The company accounts for derivative liabilities in accordance with ASC 815-40 (formerly EITF 00-19, "Accounting
for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock") and ASC 815-40
(formerly SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities").  Accordingly, we recognize
the change in valuation of derivative liabilities in an amount equal to the estimated fair value of certain non-employee options
and warrants and the conversion feature liability. We calculate the fair value of these non-employee options and warrants and
the conversion feature liability under the Black Scholes option pricing model. Refer to the Share-Based Compensation section
above for the assumptions used under the Black Scholes model.

Recent Accounting Pronouncements

For a description of recent accounting pronouncements, see Note 2 to our consolidated financial statements appearing
elsewhere in this quarterly report on Form 10-Q.

Factors Affecting Future Results

MMRPro

MMRPro was launched in late 2009. During the second quarter the Company sold its first MMRPro systems to
physician offices and value-added resellers. In the third quarter the Company will expand its distribution and begin selling
through the Kodak distribution channel.

The Company also plans on building strategic relationships with hospitals for as part of the Company's 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.

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MMRPro "Stimulus Program"

In addition to its product functionality, MMRPro includes a "Stimulus Program" for the health care professional that
creates a revenue opportunity for its users from patient upgrades. The Company believes its 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
HITECH Act over a five year period.

Hispanic Marketing

As a result of the Company's relationship with Kodak, Kodak became a sponsor of The Latino Coalition at its annual
Economic Summit for Hispanic entrepreneurs on May 5th, 2010.  Kodak, the Company and other Coalition sponsors
plan on working together to introduce MMRPro, which includes Kodak's document imaging solutions, to physician groups and
hospitals serving the Latino community.  The Company's 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.
Hector Barreto, one of the members of the Company's Board of Directors, is the Chairman of the Latino Coalition.

Direct Marketing

On September 15, 2009, the Company 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 the Company to market, through the use of this database, its
MyMedicalRecords Personal Health Record, MyEsafeDepositBox virtual vault, and MMRPro integrated document
management system for physicians and their patients. The Company is continuing to identify opportunities to utilize
the database to market to consumers and to sell MMRPRo to physicians and small group practices.

MyEsafeDepositBox

The Company is in the process of introducing its redesigned upgraded version of  MyEsafeDepositBox which will
include all the features of the Company's MyMedicalRecords.com product. The Company will market
MyEsafeDepositBox direct to consumers, financial institutions and will also serve as the infrastructure for Chartis
products and services.

MMRGlobal Advertising and Sales Promotions

The Company has launched a variety of informational web-based videos and television commercials to market our
products and services. These can be seen at www.mmrontv.com, www.mmrtheatre.com, www.mmrmdvideos,
www.myesafevideos.com and www.mmrvideos.com. The Company is in the process of hiring outside marketing
agencies to develop online promotion programs and assist us in the placement of online and broadcast advertising.

Exploiting MMRGlobal Biotech Assets and Patents

The Company will continue to work with scientists and experienced venture capitalists to assist the Company 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.  The Company will also explore partnerships with
manufacturers and or investors of and in Biotech products and services.  These are assets and other intellectual property that
the Company acquired from its reverse merger with Favrille.  Those assets include, but are not limited to, data from
the Company's pre-merger clinical vaccine trials, the Specifid vaccine, and the anti-CD20 antibodies.

Beginning in June 2009, we 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.  The Company acquired the Patent Cooperation Treaty
application and anti-CD20 monoclonal antibody assets and certain intellectual property rights involving B & T cell
vaccine technology relating to the Favrille FavID vaccine in various stages in the United States and foreign countries
through its reverse merger with Favrille.  A United States patent directed to B-cell pathologies was revived on May
27, 2010 and is now issued as a United States patent.  Further actions are being taken to perfect the condition of other
pending applications in the United States other countries offering a potential competitive advantage for this technology.
Although the Company makes no guarantees as to the status of certain patents and patent applications, we are acting to
pursue and maintain available patent protection relating to the Company's patents and filings including but not limited to
the FavID vaccine intellectual property portfolio in the United States and major foreign markets of interest.

In November 2009, the Company retained Global Research Services LLC, a full-service clinical trials management
organization, to assist the Company 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. Global Research Services specializes in serving sponsors of Phase I-IV
research. MMRGlobal's anti-CD20 antibody asset is potentially a candidate for the next generation Rituximab, marketed
under the trade name Rituxan(R) in the United States by Biogen Idec and Genentech (wholly owned member of the Roche
Group) and under the name MabThera(R) 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
2009 of US $5.6 billion.

27

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The Company has also had certain patents granted from its Personal Health Record products and services which it
believes will generate licensing revenue from competitors to the Company.

Insurance and Banking

On March 22, 2010, the Company entered into a Master Services Agreement with Chartis International LLC ("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. The Company believes it will provide MMR's
secure online Personal Health Record (PHR) to Chartis policyholders worldwide starting prior to the end of this year. Initially,
MMRGlobal anticipates 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. Translations of the product are first expected to be available in English,
Spanish, French, German, Italian, Japanese and Chinese.

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

China

The Company and Unis-TongHe Technology Co ("UNIS") entered into a Cooperation Agreement and related
documents, which we refer to as the Cooperation Agreement. Under the Cooperation Agreement, the Company and UNIS
agreed to form a joint venture in China for the purpose of deploying the Company's personal health record services and
document imaging and management solutions as part of a total EMR solution in China. Upon approval of the venture by the
Chinese government the Company will own 40% of the joint venture and UNIS will own 60%.  The joint Venture
plans on developing a comprehensive Electronic Medical Record system in compliance with recent development criteria being
proposed by the Chinese government. The Unis-TongHe MMR Medical Information Technology Service Group Joint Venture
("JV") has begun formalizing plans to commence the Zhengzhou City medical records project, which includes
MMR's Personal Health Records services and other related products. The initial project will include deployment to one-third of
Zhengzhou's population of nearly seven million and, ultimately, the JV could deploy services to the majority of Zhengzhou's
1410 municipal health institutions. The JV is actively involved in bidding on several Chinese government projects utilizing
MMR technologies, platforms and features and has recently deployed full-time technical support 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 the Company has begun to leverage its resources in China with other U.S. partners on
the ground in China including Kodak. As a result, the Company anticipates selling MMRPro in conjunction with Kodak
resellers throughout the Asia Pacific region in advance of a UNIS MMR EMR product launch.  The Company also
believes that China will provide one of the earlier Chartis revenue streams.

Clinical Trials Platform

The Company is exploring the development of services that could enable visitors to the Company's 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, the Company could receive revenue from the delivery of
patients to these trials through existing strategic partnerships and agreements.

The Company is also working with its biotech consultants on tools that pharmaceutical companies can
use to monitor clinical trials through the use of an MMR personal health records given to patients in the
clinical trial.

Our future results will also be affected by the fact that we have incurred losses since 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. Some of the current conditions and other factors that
we expect could have a significant impact on our future results are:

- Our continued ability to raise capital in order to meet our financial obligations and invest in our business to grow
revenues;
- The pace of market adoption of our current and future products;
- Our continued ability to launch new products;
- Managing costs while building an effective sales and service delivery organization for our products; and
- Our continued ability to enter into marketing arrangements with large membership and affinity organizations for our
products, launch those programs and maintain and grow subscribers from such programs, including but not limited to those
noted above, particularly after the initial introductory period.

28

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Results of Operations for the Three Months Ended June 30, 2010 as Compared to the Three Months Ended June 30,
2009

The following table sets forth items in our statements of operations for the periods indicated.

|                                              |  |  |   | Three Months Ended
|--------------------------------------------- |  |  | - | ------------------
|                                              |  |  |   | June 30,          
|                                              |  |  |   | 2010              
|                                              |  |  |   |                   
|Revenues                                      |  |  |   |                   
|Subscriber                                    |  |  | $ | 87,346            
|MMR Pro                                       |  |  |   | 108,636           
|License fees and other                        |  |  |   | 115               
|Total revenues                                |  |  |   | 196,097           
|Cost of revenues                              |  |  |   | 160,376           
|Gross profit (loss)                           |  |  |   | 35,721            
|General and administrative expenses           |  |  |   | 1,154,998         
|Sales and marketing expenses                  |  |  |   | 598,871           
|Technology development                        |  |  |   | 64,085            
|Loss from operations                          |  |  |   | (1,782,233)       
|Gain on settlement of payables                |  |  |   | -                 
|Change in valuation of derivative liabilities |  |  |   | (3,961,083)       
|Interest and other finance charges, net       |  |  |   | (2,121,322)       
|Net loss                                      |  |  | $ | (7,864,638)       

Comparison of Three Months Ended June 30, 2010 to Three Months Ended June 30, 2009

Revenues. Revenues for the second quarter of 2010 were $196,097, an increase of $34,000 or 21% compared to
$162,098 in 2009. Non-license related revenue increased 108,010 or 99.3% which was driven by the sale of our MMRPro
systems. We will also recognize the $64,406 in deferred revenue attributed to the sale of these MMRPro systems on a
monthly basis over the (3) three year term of the license agreement.

The overall increase in revenue driven from the MMRPro release was offset by the termination of international licenses for the Company's
products in September 2009 which resulted in a decrease in license fee revenues by $74,011 for the second quarter of 2010
compared to 2009.  As a result of these terminated international license agreements, the Company was able to enter into a
Master Agreement with Chartis which the Company believes will have significantly more value than the terminated
international licenses.

Cost of revenue. Cost of revenue increased by $58,091, or 56.8%, from
$102,285 for the second quarter of 2009 to $160,376 in 2010, as compared to 21% increase in revenues
because of a significant shift in revenue to MMRPro system sales, which carries a hardware cost
component. Gross profit as a percentage of revenues was 18.2% in the second quarter of 2010, as
compared to 36.9% in 2009. Gross profit as a percentage of revenues decreased due to the hardware costs
included in the MMRPro system as compared to very minimal to no costs tied to the terminated license
agreements.

Operating expenses. The following table sets forth the individual components of our operating expenses for the
three months ended June 30, 2010 and 2009.

|                                    |  |  |   | Three Months Ended
|----------------------------------- |  |  | - | ------------------
|                                    |  |  |   | June 30,          
|                                    |  |  |   | 2010              
|                                    |  |  |   |                   
|General and administrative expenses |  |  | $ | 1,154,998         
|Sales and marketing expenses        |  |  |   | 598,871           
|Technology development              |  |  |   | 64,085            
|Total                               |  |  | $ | 1,817,954         

29

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General and administrative expenses decreased by $194,115, or 14.4%, from $1,349,113 in the second
quarter of 2009 to $1,154,998 in 2010. The decrease was driven by approximately $500,000 in lower legal,
audit and accounting fees in the second quarter of 2010 as compared to 2009 attributable to the reverse
merger with Favrille and the fact that we are operating more efficiently as a publicly traded company. Also
contributing to the decrease was a $100,000 write-off of advances due from a related party and $90,519 in
stock-based compensation for two former Favrille executive recorded during the second quarter of 2009
compared to no such expenses during the same period in 2010. The overall decrease in general and
administrative expenses was offset by $205,000 increase in non-cash stock-based compensation expense
for MMR employees, finder's fees tied to convertible notes of $233,427 and an increase of other consulting
services attributing to the continued growth activity of the Company.

Sales and marketing expenses increased by $214,099, or 55.6%, from $384,772 in the second quarter of 2009 to
$598,871 in 2010 primarily as a result of non-cash equity based compensation and payments for services totaling $280,271.

Gain on Settlement of Payables. During the three months ended June 30, 2009, we had a gain on the settlement
of payables of $36,945 in connection with settlement agreements entered into with certain vendors. There was no such gain
during the three months ended June 30, 2010.

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.  During the
second quarter of 2009 we recorded a gain from the change in valuation of the warrants of $206,713, while in 2010 we
recorded a loss of $88,998.

Also, we had certain non-employee options and warrants outstanding which were accounted for as derivatives as we had
inadequate authorized shares to settle 100% of these contracts. The event giving rise to this condition was the merger
between Favrille, Inc. and MyMedicalRecords.com, Inc. on January 27, 2009. On that date, the fair value of the option and
warrant contracts subject to this analysis was reclassified from equity to derivative liabilities. The condition was remedied on
June 13, 2009 when certain of the option and warrant holders indefinitely waived their rights under those contracts. On that
date, the derivative liabilities were reclassified back into equity. On March 31, 2009 and June 13, 2009, these contracts were
again valued using the Black-Scholes option valuation model and the difference between the values at March 31, 2009 and
June 13, 2009 of $2,665,889 and $1,377,033, respectively, was recorded as a gain on change in value of derivatives for the
three months ended June 30, 2009. The gain recorded for this matter was $1,288,856 for the three months ended June 30,
2009.

In addition, we 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.  The condition was remedied on May 5, 2010 when all Convertible Notes
were converted into common stock and warrants granted in connection with the Convertible Notes were exercised. On March
31, 2010 and May 5, 2009, these contracts were again valued using the Black-Scholes option valuation model and the
difference between the value at March 31, 2010 of $3,576,430 and the value at May 5, 2010 of $7,448,516 was recorded as a
loss on change in value of derivatives for the three months ended June 30, 2010 of $3,876,085. On May 5, 2010, the value of
the derivative liabilities was reclassified back into equity.

Interest and Other Finance Charges, Net. We had interest and other finance charges, net of $2,121,322 for the
three months ended June 30, 2010, an increase of $2,004,918 from $116,404 for the three months ended June 30, 2009.
The increase was due to non-cash interest expense of $1,602,266 attributed to the conversion feature and warrant issued
with the 12% Convertible Promissory Notes and $456,480 attributed to warrant granted to The RHL Group in connection with
the Fourth Amended Note. The Company did not enter into any such 12% Convertible Promissory Notes during the three
months ended June 30, 2009.

Net loss. As a result of the foregoing, we had a net loss of $7,864,638 for the three months ended June 30, 2010
compared to a net loss of $321,057 for the three months ended June 30, 2009.

30

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Results of Operations for the six months ended June 30, 2010 as Compared to the Six Months Ended June 30, 2009

The following table sets forth items in our statements of operations for the periods indicated.

|                                              |  |  |   | Six Months Ended
|--------------------------------------------- |  |  | - | ----------------
|                                              |  |  |   | June 30,        
|                                              |  |  |   | 2010            
|                                              |  |  |   |                 
|Revenues                                      |  |  |   |                 
|Subscriber                                    |  |  | $ | 177,510         
|MMR Pro                                       |  |  |   | 108,636         
|License fees and other                        |  |  |   | 115             
|Total revenues                                |  |  |   | 286,261         
|Cost of revenues                              |  |  |   | 273,412         
|Gross profit (loss)                           |  |  |   | 12,849          
|General and administrative expenses           |  |  |   | 2,374,313       
|Sales and marketing expenses                  |  |  |   | 1,529,003       
|Technology development                        |  |  |   | 146,224         
|Loss from operations                          |  |  |   | (4,036,691)     
|Gain on settlement of payables                |  |  |   | -               
|Change in valuation of derivative liabilities |  |  |   | (6,129,563)     
|Interest and other finance charges, net       |  |  |   | (4,161,742)     
|Net loss                                      |  |  | $ | (14,327,996)    

Comparison of Six Months Ended June 30, 2010 to Six Months Ended June 30, 2009

Revenues. Revenues for the first half of 2010 were $286,261, a decrease of $21,624 or 7% compared to $307,885
in 2009. Non-license related revenue increased 105,679 or 58.6% which was driven by the sale of our MMRPro systems.
We will also recognize the $64,406 in deferred revenue attributed to the sale of these MMRPro systems on a monthly
basis over the (3) three year term of the license agreement.

The decrease in overall revenue was driven by the termination of international licenses for the Company's products in
September 2009 which resulted in a decrease in license fee revenues by $127,303 for the first half of 2010 compared to
2009.  As a result of these terminated international license agreements, the Company was able to enter into a Master
Agreement with Chartis which the Company believes will have significantly more value than the terminated international
licenses.  This decrease was offset by the sales  of MMRPro systems contributing to a $108,636 increase in
revenues.

Cost of revenue. Cost of revenue increased by $64,275, or 30.7%, from $209,137 for the first half
of 2009 to $273,412 in 2010, because of a significant shift in
revenue to MMRPro system sales, which carries a hardware cost component.  Gross profit as a percentage
of revenues was 4.5% in the first half of 2010, as compared to 32.1% in 2009. Gross profit as a percentage
of revenues decreased due to the hardware costs included in the MMRPro system as compared to very
minimal to no costs tied to the terminated license agreements.

Operating expenses. The following table sets forth the individual components of our operating expenses for the six
months ended June 30, 2010 and 2009.

|                                    |  |  |   | Six Months Ended
|----------------------------------- |  |  | - | ----------------
|                                    |  |  |   | June 30,        
|                                    |  |  |   | 2010            
|                                    |  |  |   |                 
|General and administrative expenses |  |  | $ | 2,374,313       
|Sales and marketing expenses        |  |  |   | 1,529,003       
|Technology development              |  |  |   | 146,224         
|Total                               |  |  | $ | 4,049,540       

31

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General and administrative expenses decreased by $269,205, or 10.2%, from $2,643,518 in the first half
of 2009 to $2,374,313 in 2010. The decrease was driven by approximately $1,000,000 in lower legal, audit
and accounting fees in the first half of 2010 of compared to 2009 tied to the reverse merger with Favrille.
Also contributing to the decrease was a $100,000 write-off of advances due from a related party and
$200,729 in stock-based compensation for two former Favrille executive recorded during the first half of
2009 compared to no such expenses during the same period in 2010. The overall decrease in general and
administrative expenses was offset by stock option based compensation to employees and directors of
$595,658 and $233,427 in finder's fees tied to convertible notes.

Sales and marketing expenses increased by $908,345, or 146.4%, from$ 620,658 in the first half of
2009 to $1,529,003 in 2010 primarily as a result of non-cash equity based compensation and payments for
services totaling $794,613. In addition to the non-cash equity based compensation, sales and marketing
expenses grew because we attended several trade shows and Health Care Information and Management
Systems Society ("HIMSS") conferences and incurred international travel related sales and marketing
expenses during the first three months of 2010 compared to no trade show or HIMSS attendances or
international travel during the same period in 2009. As a result, we incurred a total trade show and
international travel-related expenses increase of approximately $75,000.

Gain on Settlement of Payables. During the six months ended June 30, 2009, we had a gain on the settlement of
payables of $89,170 in connection with settlement agreements entered into with certain vendors. There was no such gain
during the six months ended June 30, 2010.

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.  During the
first half of 2009 and 2010, we recorded a loss from the change in valuation of the warrants of $149,280 and $266,994,
respectively.

Also, we had certain non-employee options and warrants outstanding which were accounted for as derivatives as we had
inadequate authorized shares to settle 100% of these contracts. The event giving rise to this condition was the merger
between Favrille, Inc. and MyMedicalRecords.com, Inc. on January 27, 2009. On that date, the fair value of the option and
warrant contracts subject to this analysis was reclassified from equity to derivative liabilities. The condition was remedied on
June 13, 2009 when certain of the option and warrant holders indefinitely waived their rights under those contracts. On that
date, the derivative liabilities were reclassified back into equity. On June 13, 2009, these contracts were again valued using
the Black-Scholes option valuation model and the difference between the original value at January 27, 2009 of $871,052 and
the value at June 13, 2009 of $1,377,033 was recorded as a loss on change in value of derivatives for the six months ended
June 30, 2009. The loss recorded for this matter was $505,981 for the six months ended June 30, 2009.

In addition, we 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.  The condition was remedied on May 5, 2010 when all Convertible Notes
were converted into common stock and warrants granted in connection with the Convertible Notes were exercised. On May 5,
2009, these contracts were again valued using the Black-Scholes option valuation model and the difference between the
value at December 31, 2009 of $1,534,824 and the value at May 5, 2010 of $7,448,516, was recorded as a loss on change in
value of derivatives for the six months ended June 30, 2010 of $5,843,735. On May 5, 2010, the value of the derivative
liabilities was reclassified back into equity.

Interest and Other Finance Charges, Net. We had interest and other finance charges, net of $4,161,742 for the six
months ended June 30, 2010, an increase of $3,802,658 from $359,084 for the six months ended June 30, 2009.  The
increase was due to non-cash interest expense of $3,573,629 attributed to the conversion feature and warrant issued with the
12% Convertible Promissory Notes and $456,480 attributed to warrant granted to The RHL Group in connection with the
Fourth Amended Note. The Company did not enter into any such 12% Convertible Promissory Notes during the six months
ended June 30, 2009.

Net loss. As a result of the foregoing, we had a net loss of $14,327,996 for the six months ended June 30, 2010
compared to a net loss of $4,197,446 for the six months ended June 30, 2009.

32

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Going Concern

As more fully described in note 1 to the consolidated financial statements appearing elsewhere in this quarterly report on
Form 10-Q, our independent registered public accounting firm included an explanatory paragraph in their report on our 2009
financial statements for the year ended December 31, 2009 related to the uncertainty of our ability to continue as a going
concern.  At June 30, 2010, current liabilities of $6,031,265 exceeded cash and cash equivalents of $499,382.

Management's plan regarding this matter is to continue to utilize its available line of credit with The RHL Group (see Note
3). At June 30, 2010, there was approximately $2,000,000 available under The RHL Group line of credit. Furthermore, the
Company may utilize portions of its $10 million standby equity line facility with Dutchess Opportunity Fund, II, LP.  Additionally, the Company
plans to continue to sell additional debt and equity securities, continue to settle its existing liabilities through issuance of
equity securities, explore other debt financing arrangements, continue to increase its existing subscriber and affiliate customer
base and sell MMR Pro products to obtain additional cash flow over the next twelve months. There can be no assurance 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 additional funds are raised 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.

Liquidity and Capital Resources

We have incurred net losses of $14,327,996 and $4,197,446 for the six months ended June 30, 2010 and 2009,
respectively. At the current level of borrowing, the Company requires cash of $275,000 per year to service its debt.
Furthermore, not including debt service, in order to continue operating its business, the Company uses an average of
$256,000 cash per month, or $3.0 million per year. At this rate of cash burn, the Company's existing current assets will
sustain the business for approximately six months.

In addition to the above cash burn from operations, the Company 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 $1,154,175 at June 30, 2010), among other
debt obligations. Such obligations are currently due and payable pursuant to the terms of the note.

To finance its activities, the Company has relied on the issuance of stock and debt to the RHL Group. At June 30, 2010,
the Company had a line of credit with The RHL Group in the amount of $3 million. Availability under this line of credit was $2.0 million.
Furthermore, the Company may utilize portions of its $10 million standby equity line facility with Dutchess Opportunity Fund, II, LP.
Additionally, during 2010, the Company issued $2,008,152 of convertible debt. The Company expects to continue
offering a limited amount of convertible debt during the remainder of 2010. The Company also expects sales from its new
MMRPro system to generate revenue and gross profit that will significantly improve its monthly and annual cash burn from
operations.

Cash Flows for the Six months ended June 30, 2010 compared to Six Months Ended June 30, 2009

Net cash used in operating activities for the six months ended June 30, 2010 was $2,338,409.  The reconciliation of net
loss of $14,327,996 to net cash used in operating activities for the six months ended June 30, 2010 included the following
non-cash charges: $962,524 for share-based compensation, $6,129,564 for change in valuation of derivative liabilities,
$3,573,629 for interest on the 12% Convertible Promissory Notes, $46,322 for depreciation and amortization, $571,213 for
common stock issued as payment for services, $572,983 for warrants issued for services and in connection with The RHL
Group Fourth Amended Note, and $54,583 for a loan fee amortization.  We also had an increase in operating cash flow from
changes in prepaid expense of $174,681, payable and accrued expenses of $59,910, deferred revenue of $64,406, offset by
decreased operating cash flow of $48,772 and $115,046 for increases in inventory and accounts receivable, respectively, and
$50,314 for decreases in related party payables.

Net cash used in operating activities for the six months ended June 30, 2009 was $1,319,458. The reconciliation of net
loss of $4,197,446 to net cash used in operating activities for the six months ended June 30, 2009 included non-cash charges
of $470,125 for share based compensation, $53,441 for depreciation and amortization, $66,668 for bad debt expense,
$100,000 for a write-off of advances due from a related party and $655,261 for change in valuation of derivative liabilities, as
well as increases of $1,361,577 in accounts payable and accrued expenses and $278,419 in related party payables, offset by
a gain on the settlement of payables of $89,170.

Our investing activities resulted in a net cash outflow of $161,036 for the six months ended June 30, 2010 relating to
MMRPro software development spending and legal fees incurred to acquire patents.  During the six months ended June 30,
2009, our investing activities resulted in a net cash inflow of $932,973 in connection with $1,050,506 in cash acquired from
the Merger, offset by $107,087 in the legal fees incurred to acquire patents.

Our financing activities resulted in a net cash inflow of $2,511,061 for the six months ended June 30, 2010 in connection
with $1,892,747 in proceeds from the 12% Convertible Promissory Notes, $716,500 from warrant exercises and $3,779 from
stock option exercises, offset by $98,229 for repayment on The RHL Group line of credit. Our financing activities resulted in a
net cash inflow of $313,311 for the six months ended June 30, 2009 in connection with $135,000 in proceeds from the line of
credit with The RHL Group, $125,000 in proceeds from an unrelated third-party promissory note and $52,914 from stock
option exercises.

33

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As of June 30, 2010, we had cash and cash equivalents of $499,382 compared to $2,605 at June 30, 2009.

Description of Indebtedness

The RHL Group

On April 29, 2010, the Company agreed to restructure our secured credit facility with The RHL Group and entered into a
Secured Credit Restructuring Agreement with The RHL Group and Robert H. Lorsch, our Chairman, Chief Executive Officer
and President (the "Restructuring Agreement"), issued The RHL Group a Fourth Amended and Restated Note (the "Fourth
Amended Note"), and we agreed to guaranty MMR's obligations under the Fourth Amended Note (the "Guaranty").

The Fourth Amended Note amended and restated the April 29, 2009 Third Amended and Restated Promissory Note
Agreement (the "RHL Note"). 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") due immediately. In the event the Fourth Amended Note is renewed for an additional six-month
term, The RHL Group is due an additional $200,000 loan origination fee. In addition, The RHL Group received 2,614,684
warrants to purchase shares of the Company's common stock at an exercise price of $0.21 per share. The warrants are fully
vested and shall be exercisable in cash or in a cashless exercise at any time prior to their fourth anniversary of issuance.

The RHL Group Note payable had a balance of $1,154,175 at June 30, 2010.  The components of the Group Note
payable and the related balance sheet presentation as of June 30, 2010 are: (1) $909,351, which is included in the line of
credit, related party; and (2) $244,824, which is related to deferred salary and consulting expenses and is included in related
party payables. The RHL Group received a $200,000 loan origination fee ("Fee") in connection with the Fourth
Amended Note. On May 20, 2010, The RHL Group exercised 1,600,000 warrants with an exercise price of $0.125 in
consideration for the Company $200,000 Fee. The Fee was recorded as a deferred financing cost and is being amortized
over the Fourth Amended Note maturity period.  As of June 30, 2010, the remaining unamortized origination fee was
$166,667.

Total interest expense on this note for the three months ended June 30, 2010 and 2009 amounted to $30,656 and
$27,608, respectively.  Total interest expense on this note for the six months ended June 30, 2010 and 2009 amounted to
$66,959 and $48,042, respectively.  The unpaid interest balance as of June 30, 2010 and December 31, 2009 was $13,885
and $45,155, respectively.

In conjunction with the loan agreement noted above, MMRGlobal was required to maintain certain financial covenants,
including the requirement that MMRGlobal have at least $200,000 in cash in its 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, 2010. As of June 30, 2010, MMRGlobal was in compliance with
its financial covenants under the terms of the Third Amended Note.

Promissory Notes

On June 11, 2009, the Company entered into a promissory note agreement to borrow $125,000 with an unrelated third-party.
The promissory note is due and payable July 30, 2011, and bears interest of 12% per annum payable quarterly
beginning on January 1, 2010. The proceeds of the loan will be used by the Company for the filing of international patent
applications to expand and perfect the patent rights of the Company in the Anti-CD20 Antibodies outside the United States.
The unrelated third-party also received, as a commitment fee, a payable for $30,000, due and payable by August 15, 2009.
The commitment fee was payable at the Company's option in cash or warrants to acquire 375,000 shares of our common
stock at an exercise price per share equal to the lesser of (i) $0.15 per share and (ii) the weighted average trading price for a
share of common stock for the ten consecutive trading days preceding the date on which the warrant is exercised. The
warrants have a four year term. On July 29, 2009, we elected to pay the commitment fee through the issuance of warrants
exercisable into 375,000 shares of our common stock at an exercise price of $0.14 per share. The warrants vested
immediately. These warrants were valued using the Black-Scholes option pricing model. The total value of these warrants
amounted to $32,399, all of which will be recorded as a reduction to the commitment fee payable in July 2009, with a loss on
settlement payables for $2,399. On March 16, 2010, the $125,000 principal and unpaid interest on the PM Creative
Corporation Promissory Note was converted into a 12% Convertible Promissory Note. See Note 11.

On various dates between July 16, 2009 and June 25, 2010, the Company also entered into thirty-six different Note and
Warrant Subscription Agreements (the "Note Agreements") with twenty-three separate individuals (the "Note Purchasers").
Pursuant to the terms of the Note Agreements, these individuals purchased convertible notes in an aggregate amount of
$3,381,152 (the "Notes"). The Notes carry an annual interest rate of 12%. The Notes are convertible at the option of the Note
Purchasers into a number of shares of the Company's common stock, par value $0.001 per share, equal to the product of
eighty percent (80%) multiplied by the arithmetic average of the dollar volume-weighted average price ("VWAP") of the
Company's common stock for the ten (10) consecutive trading days ending on the day that is three (3) trading days prior to
the applicable conversion date. As of June 30, 2010 all of the individuals converted their notes totaling $3,381,152 in
exchange for a total of 41,440,867 shares of the Company's common stock.

34

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Commitments and Contingencies

Under the terms of an agreement with an investor who purchased $500,000 of MMR's Series B Preferred shares in 2006,
the Company entered into an agreement to invest $250,000 in a joint venture with the investor to establish an entity to market
and sell the Company's services in the countries of Japan, China, Korea, Taiwan and Thailand. The Company has paid
$100,000 to date of this amount which the Company has expensed during the year ended December 31, 2009 as the
Company has since terminated its relationship with the investor. To date, no joint venture has been formalized or incorporated
and no operations have commenced. In September 2007, The RHL Group provided the investor with a guarantee that the
Company would meet its obligations under this agreement in exchange for 300,000 shares of restricted MMR common stock
valued at $39,000. As consideration for renewing the guarantee when it expired in September 2008, in January 2009, MMR
issued The RHL Group 100,000 shares of MMR common stock, which became 328,174 shares of MMRGlobal common stock
upon the closing of the Merger, valued at approximately $5,000. This expense has been reflected in general and
administrative expenses in the accompanying consolidated statement of operations for the year ended December 31, 2009.
On January 6, 2010, the Company entered into a settlement agreement with the investor to provide for full and final
settlement of any and all claims pertaining to any license rights for MMR-Asia to market, sell and sublicense MMRGlobal and
MMR products and services. As part of this settlement agreement, the Company granted 1,388,889 shares of common stock
to the investor in January 2010.  The value of these shares amounted to $138,889, and has been recorded as an expense in
the accompanying consolidated statement of operations during the year ended December 31, 2009.

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

For additional information relating to this and other commitments and contingencies, please see note 7 to our financial
statements appearing elsewhere in this quarterly report on Form 10-Q.

Off-Balance Sheet Arrangements

On January 4, 2010, the Company and UNIS entered into a Cooperation Agreement and related documents, which we
refer to as the Cooperation Agreement. Under the Cooperation Agreement, the Company and UNIS agreed to form a joint
venture in China for the purpose of deploying the Company's personal health record services and document imaging and
management solutions in China. The Company 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 the Company 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, the Company and UNIS 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.

The foregoing description of the Cooperation Agreement does not purport to be complete and is qualified in its entirety by
reference to the Cooperation Agreement, a copy of which is filed as an Exhibit to the Form 10-K filed on March 31, 2010.

The Company's entry into the Cooperation Agreement described above constitutes the creation of a direct financial
obligation.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Intentionally omitted.

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Item 4T. Controls and Procedures

Disclosure Controls and Procedures

As of June 30, 2010, MMRGlobal's disclosure controls and procedures were evaluated to provide reasonable assurance
that information required to be disclosed by MMRGlobal in the reports that it files or submits under the Securities Exchange
Act of 1934 is accumulated and communicated to management, as appropriate, in a timely manner that would alert them to
material information relating to MMRIS that would be required to be included in MMRGlobal's periodic reports and to provide
reasonable assurance that such information was recorded, processed, summarized, and reported within the time periods
specified in Securities and Exchange Commission rules and forms. Based on this evaluation, Robert H. Lorsch, MMRGlobal's
chief executive officer, and Ingrid G. Safranek, MMRGlobal's chief financial officer, concluded that the Company's disclosure
controls and procedures were effective as of June 30, 2010.

Changes in Internal Control over Financial Reporting

MMRGlobal has made no changes to its internal control over financial reporting or in other factors that materially affected,
or were reasonably likely to have materially affected, its internal control over financial reporting during the quarter ended June
30, 2010.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, the Company is involved in various legal proceedings generally incidental to its business. While the
result of any litigation contains an element of uncertainty, 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 the
Company's financial statements.

On April 30, 2010, the Company filed a petition in the New York Supreme Court against the Lymphoma Research
Foundation ("LRF"), a California nonprofit corporation, to enforce the Company's rights to a portion of 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.  The Company answered LRF's action and filed counterclaims on July 6, 2010.
Although the Company and LRF have met in mediation, meanwhile the litigation is ongoing.

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

Since our disclosure on May 17, 2010, we have made the following unregistered sales of equity securities:

Since May 17, 2010, the Company entered into Convertible Promissory Notes with five different
unrelated third-parties and two related parties for a principal amount totaling $643,150 and warrants to purchase
2,943,150 shares of the Company's commons stock. The Convertible Promissory Notes mature on November 30, 2011
and January 30, 2011, and the Company may, at its sole discretion, extend the maturity date to April 30, 2011 and July
30, 2011. The Convertible Promissory Notes bear an interest of 6% 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 Convertible Promissory Note
are convertible into shares of common stock by dividing (i) the then outstanding balance of such note by (ii) the product
of seventy percent (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 conversion date. Four parties immediately exercised the warrants and converted the Convertible
Promissory Notes into 1,740,168  shares of the Company's common stock.

On May 4, 2010, a related party Consultant exercised 404,826 warrants for common stock in exchange for a
reduction in accounts payable of $55,198.42.

On May 4, 2010 we granted 92,593 shares of common stock to a vendor in exchange for a reduction in accounts
payable of $25,000.

On May 7, 2010 we granted 100,402 shares of common stock to a vendor in exchange for $25,000 in consulting
services.

On May 20, 2010, the RHL Group exercised 1,600,000 warrants for common stock in exchange for a reduction in
notes payable.

On May 24, 2010 a vendor exercised 500,000 warrants of common stock in exchange for a reduction in accounts
payable of $74,500.  In addition, we granted 148,352 shares of common stock to the same vendor in exchange for a
further reduction in accounts payable of $31,000.

On May 31, 2010 we granted a vendor 113,636 shares of common stock in exchange for a $25,000 deposit towards
future trade show expenses.

On June 11, 2010 we granted three different vendors 2,231,993 shares of common stock in exchange for a
reduction in accounts payable of 422,354.61.

On June 14, 2010 a related party exercised 574,739 options for common stock in exchange for a reduction in
payables of $78,000.

On June 17, 2010 we granted two vendors 277,778 shares of common stock in exchange for services valued at
$50,000.

On June 18, 2010 we granted a vendor 26,316 shares of common stock in exchange for services valued at
$5,000.

On June 30, 2010 a related party exercised 636,550 options for common stock in exchange for a reduction in
accounts payable of  $87,294.

On July 1, 2010 and July 8, 2010, we granted to a vendor a total of 196,310 shares of common stock valued at
$28,010, in consideration for marketing and consulting services.

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.

Item 6. Exhibits

|Exhibit
Number |  | Description of Exhibits                                                                                                                         
|-------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------
|               |  |                                                                                                                                                 
|10.1           |  | Services Agreement dated June 1, 2007 by and between MMR and Alexian Brothers. (+)                                                              
|               |  |                                                                                                                                                 
|10.2           |  | Warrant dated May 12, 2010, issued by MMR Information Systems, Inc. in favor of The RHL Group, Inc.                                             
|               |  |                                                                                                                                                 
|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.
|(+)            |  | The Company has requested confidential treatment with respect to portions of this exhibit.                                                      

36

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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 16, 2010

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

37

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EXHIBIT INDEX

Exhibit
Number

Description of Exhibits10.1

Services Agreement dated June 1, 2007 by and between MMR and Alexian Brothers. (+)    PDF10.2

Warrant dated May 12, 2010, issued by MMR Information Systems, Inc. in favor of The RHL Group, Inc.    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.    PDF(+)

The Company has requested confidential treatment with respect to portions of this exhibit.