Coro Global Inc. - Quarter Report: 2009 June (Form 10-Q)

form10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended June 30, 2009
	OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934
	For the transition period from to

Commission File Number33-251256-D

Medefile International, Inc.

(Exact name of registrant as specified in its charter)

Nevada		85-0368333
State or other jurisdiction of		(I.R.S. Employer
incorporation or organization		Identification No.)

301 Yamato Rd, Ste 315

Boca Raton, FL 33431

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code (973) 993-8001

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). o Yes o No

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

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

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

Yes o No x

Number of shares outstanding of registrant’s class of common stock as of August 14, 2009: 909,666,743

Table of Contents

	Page
PART I	3

FINANCIAL INFORMATION
ITEM 1. Financial Statements	3
ITEM 2. Management Discussion and Analysis of Financial Condition and Results of Operations	15
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk	17
ITEM 4. Controls and Procedures	17
ITEM 4(T). Controls and Procedures	17

PART II

OTHER INFORMATION
ITEM 1. Legal Proceedings	18
ITEM 1A. Risk Factors	18
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	18
ITEM 3. Defaults Upon Senior Securities	18
ITEM 4. Submission of Matters to a Vote of Security Holders	18
ITEM 5. Other Information	18
ITEM 6. Exhibits	19
Signatures	20

Medefile International, Inc.

Condensed Consolidated Balance Sheets





	(Unaudited)
	June 30			December 31,
	2009			2008
Assets
Current Assets
Cash and equivalents	$	1,472		$	7,844
Prepaid expenses		-			17,810
Total Current Assets		1,472			25,654

Furniture and equipment, net of accumulated depreciation		43,090			54,514
Deposits and other assets		14,475			14,475
Intangibles		1,339			1,339
Total Assets	$	60,376		$	95,982

Liabilities and Stockholders' (Deficit)
Current Liabilities
Accounts payable and accrued liabilities	$	123,725		$	79,069
Deferred revenue		1,308			5,942
Notes payable		146,967			76,390
Notes payable - related parties		125,923			93,518
Total Current Liabilities		397,923			254,919

Commitments and Contingencies

Stockholders' Deficit
Common stock, $.0001 par value: 5,000,000,000 and 300,000,000 authorized: 782,946,084 shares issued and outstanding at June 30, 2009 and 218,493,971 shares issued and outstanding at December 31, 2008.		78,294			21,849
Additional paid in capital		11,854,328			11,324,821
Accumulated Deficit		(12,270,169	)		(11,505,607	)
Total stockholders' Deficit		(337,547	)		(158,937	)
Total Liability and Stockholders' Deficit	$	60,376		$	95,982

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

Medefile International, Inc.

Condensed Consolidated Statement of Operations

(Unaudited)

	For the Three			For the Three			For the Six			For the Six
	Months			Months			Months			Months
	Ended			Ended			Ended			Ended
	June 30,			June 30,			June 30,			June 30,
	2009			2008			2009			2008
Revenues	$	2,716		$	12,605		$	7,456		$	22,261

Operating Expenses
Selling, general and administrative expenses		244,268			590,420			753,303			1,173,244
Depreciation		5,712			6,008			11,424			8,488
Total operating expense		249,980			596,428			764,727			1,181,732

Loss from Operations		(247,264	)		(583,823	)		(757,271	)		(1,159,471	)
Other Income/Expenses
Other Income
Interest Expense note payable		(2,419	)		-			(4,086	)		-
Interest Expense - related party note payable		(1,626	)		(11,383	)		(3,205	)		(25,442	)
Total other income (expense)		(4,045	)		(11,383	)		(7,291	)		(25,442	)

Loss before income tax		(251,309	)		(595,206	)		(764,562	)		(1,184,913	)
Provisions for income taxes		-			-			-			-
Net Loss	$	(251,309	)	$	(595,206	)	$	(764,562	)	$	(1,184,913	)
Other comprehensive gain (loss):
Unrealized loss on marketable securities		-			-			-			-
Comprehensive loss	$	(251,309	)	$	(595,206	)	$	(764,562	)	$	(1,184,913	)

Net loss per share: basic and diluted	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)
Weighted average share outstanding:
basic and diluted		630,430,827			205,771,410			493,340,921			200,129,720

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

Medefile International, Inc.

Condensed Consolidated Statement of Cash Flows

(Unaudited)


	For the Six			For the Six
	Months Ended			Months Ended
	June 30			June 30
	2009			2008
Cash Flow from Operating Activities
Net loss	$	(764,562	)	$	(1,184,913	)
Adjustments to reconcile net loss to net
Cash used in operating activities
Depreciation		11,424			8,488
Non cash compensation		585,952			102,678
Interest Expense on note payable		4,086			-
Interest Expense on note payable - related party		3,205			24,330
Changes in operating assets and liabilities
Accounts receivable		-			(192	)
Prepaid expenses		17,810			(21,575	)
Acccounts payable and accrued expenses		44,656			4,741
Deferred revenue		(4,634	)		1,711
Advance Customer Payments		-			(1,000	)

Net Cash used in operating activities		(102,063	)		(1,065,732	)

Cash flows from Investing activities
Purchase of equipment		-			(11,402	)
Net cash used in investing activities		-			(11,402	)

Net cash flow from financing activities
Proceeds from notes payable		66,491
Proceeds from notes payable - related party		29,200			-
Payments on loans from related parties		-			(500,000	)
Proceeds from stock subscription		-			300,000
Net cash provided (used) by financing activities		95,691			(200,000	)

Net Cash Increase (Decrease)	$	(6,372	)	$	(1,277,134	)

Cash and cash equivalents at beginning of period		7,844			1,367,415

Cash and cash equivalent at end of period	$	1,472		$	90,281

Supplemental disclosure of cash flow information
Cash paid during the period for
Cash paid for income taxes	$	-		$	-
Cash paid for Interest	$	-		$	-
Supplemental disclosure of non-cash financing activities
Common issued for stock subscriptions	$	-		$	3,750,000

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

Medefile International, Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. BASIS OF PRESENTATION AND NATURE OF BUSINESS OPERATIONS

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of Medefile International Inc., a Nevada corporation ("Company"), have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete consolidated financial statements. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with the Company's Form 10-K for the fiscal year ended December 31, 2008. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments that are of a normal recurring nature and which are necessary to present fairly the financial position of the Company as of June 30, 2009, and the results of operations and cash flows for the three and six months ended June 30, 2009 and 2008. The results of operations for the three and six months ended June 30, 2009 are not necessarily indicative of the results that may be expected for the entire fiscal year.

Nature of Business Operations

On November 1, 2005, Bio-Solutions International, Inc. ("Bio-Solutions") entered into an Agreement and Plan of Merger (the "Agreement") with OmniMed Acquisition Corp., (the "Acquirer), a Nevada corporation and a wholly owned subsidiary of Bio-Solutions, OmniMed International, Inc., a Nevada corporation ("OmniMed"), and the shareholders of OmniMed (the "OmniMed Shareholders"). Pursuant to the Agreement, Bio-Solutions acquired all of the outstanding equity stock of OmniMed from the OmniMed Shareholders. As consideration for the acquisition of OmniMed, Bio-Solutions agreed to issue 9,894,900 shares of Bio-Solutions' common stock to the OmniMed Shareholders. These issuances were deemed to be exempt under rule 506 of Regulation D and Section 4(2) of the Securities Act of 1933, as amended since, among other things, the transaction did not involve a public offering, the investors were accredited investors and/or qualified institutional buyers, the investors had access to information about the company and their investment, the investors took the securities for investment and not resale, and the Company took appropriate measures to restrict the transfer of the securities.

As a result of the Agreement, the OmniMed Shareholders assumed control of Bio-Solutions. Effective November 21, 2005 Bio-Solutions changed its name to OmniMed International, Inc. Effective January 17, 2006 OmniMed changed its name to Medefile International, Inc. ("Medefile" or "the Company").

Medefile has developed a system for gathering, digitizing, storing and distributing information for the healthcare field. Medefile's goal is to bring digital technology to the business of medicine. Medefile intends to accomplish its objective by providing individuals with a simple and secure way to access their lifetime of actual medical records in an efficient and cost-effective manner. Medefile's products and services are designed to provide Healthcare providers with the ability to reference their patient's actual past medical records, thereby ensuring the most accurate treatment and services possible while simultaneously reducing redundant procedures. Medefile's primary product is the MedeFile system, a highly secure system for gathering and maintaining medical records. The MedeFile system is designed to gather all of its members' medical records and create a single, comprehensive medical record that is accessible 24 hours a day, seven days a week.

Going Concern

The accompanying unaudited condensed consolidated financial statements have been prepared contemplating a continuation of the Company as a going concern. However, the Company has reported a net loss of $251,308 and $764,562 for the three and six months ended June 30, 2009 and $1,977,158 and for the year ended December 31, 2008 and had an accumulated deficit of $12,270,169 as of June 30, 2009 and $11,505,607 as of December 31, 2008. The Company has a negative working capital of $396,451 as of June 30, 2009.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The operating losses raise substantial doubt about the Company's ability to continue as a going concern. The Company's ability to obtain additional financing depends on the availability of its borrowing capacity, the success of its growth strategy and its future performance, each of which is subject to general economic, financial, competitive, legislative, regulatory, and other factors beyond the Company's control.

We will need additional investments in order to continue operations for cash flow to break even. Additional investments are being sought, but we cannot guarantee that we will be able to obtain such investments. Financing transactions may include the issuance of equity or debt securities, obtaining credit facilities, or other financing mechanisms. However, the trading price of our common stock could make it more difficult to obtain financing through the issuance of equity or debt securities. Even if we are able to raise the funds required, it is possible that we could incur unexpected costs and expenses, fail to collect significant amounts owed to us, or experience unexpected cash requirements that would force us to seek alternative financing. Further, if we issue additional equity or debt securities, stockholders may experience additional dilution or the new equity securities may have rights, preferences or privileges senior to those of existing holders of our common stock. If additional financing is not available or is not available on acceptable terms, we will have to curtail our operations.

Cash and Cash Equivalents

For purposes of these financial statements, cash and cash equivalents includes highly liquid debt instruments with maturity of less than three months.

Concentrations of Credit Risk

Financial instruments and related items, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents. The Company places its cash and temporary cash investments with high credit quality institutions. At times, such investments may be in excess of the FDIC insurance limit.

Advertising

The Company follows the policy of charging the costs of advertising to expense as incurred. The Company incurred advertising costs for the three months ended June 30, 2009 and 2008 of approximately $16,666 and $108,938 respectively, and for the six months ended June 30, 2009 and 2008 of approximately $16,666 and $118,108.

Income Taxes

The Company accounts for income taxes in accordance with Statement of Financial Accounting Standards No. 109, "Accounting For Income Taxes". The provision for income taxes is comprised of current and deferred components. The current component presents the amount of federal and state income taxes that are currently reportable to the respective tax authorities and is measured by applying statutory rates to the Company's taxable income as reported in its income tax returns.

Deferred income taxes are provided for the temporary differences between the carrying values of the Company's assets and liabilities for financial reporting purposes and their corresponding income tax basis. These temporary differences are primarily attributable to net operating losses. The temporary differences give rise to either a deferred tax asset or liability in the financial statements, which is computed by applying statutory tax rates to taxable or deductible temporary differences based upon classification (i.e., current or non-current) of the asset or liability in the financial statements which relate to the particular temporary difference.

Property and Equipment

Property and equipment are stated at cost. When retired or otherwise disposed, the related carrying value and accumulated depreciation are removed from the respective accounts and the net difference less any amount realized from disposition, is reflected in earnings. Minor additions and renewals are expensed in the year incurred. Major additions and renewals are capitalized and depreciated over their estimated useful lives being 3 years up to 10 years.

Trademark Costs

Trademark costs incurred in the registration and acquisition of trademarks and trademark rights are capitalized. These costs will be amortized over the legal life of the related trademark once the trademark is awarded. In accordance with the provisions of Statement of Financial Accounting Standards No. 142 (SFAS No. 142), Goodwill and Other Intangible Assets, the Company performs an annual review of its identified intangible assets to determine if facts and circumstances exist which indicate that the useful life is shorter than originally estimated or that the carrying amount of the assets may not be recoverable.

The Company expenses all software costs associated with the conceptual formulation and evaluation of alternatives until the application development stage has been reached. Costs to improve or support the technology are expensed as these costs are incurred.

Revenue Recognition

The Company generates revenue from licensing the right to utilize its proprietary software for the storage and distribution of healthcare information to individuals and affinity groups. For revenue from product sales, the Company recognizes revenue in accordance with Staff Accounting Bulletin ("SAB") No. 104, "Revenue Recognition," which superseded SAB No. 101, "Revenue Recognition in Financial Statements." SAB No.101 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectibility is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectibility of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company defers any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required. SAB No. 104 incorporates Emerging Issues Task Force ("EITF") No. 00-21, "Multiple-Deliverable Revenue Arrangements." EITF No. 00-21 addresses accounting for arrangements that may involve the delivery or performance of multiple products, services and/or rights to use assets. The effect of implementing EITF No. 00-21 on the Company's consolidated financial position and results of operations was not significant. This issue addresses determination of whether an arrangement involving more than one deliverable contains more than one unit of accounting and how the arrangement consideration should be measured and allocated to the separate units of accounting.

Deferred Revenue

The Company generally receives subscription fees for its services. From time to time, the Company will receive quarterly or annual subscriptions paid in advance and deferred revenue is recorded at that time. The deferred revenue is amortized into revenue on a pro- rata basis each month. Customers with quarterly or annual subscriptions may cancel their subscriptions and request a refund for future months' revenues at any time. Therefore, a liability is recorded to reflect the amounts that are potentially refundable.

Advance Customer Payments

The Company occasionally will receive lump sum payments from its clients that will be used to prepay a number of subscriptions on behalf of the client’s members. As the client’s members enroll for these subscriptions, then the amounts are deducted from the advance customer payments account and are recognized as revenue or deferred revenues as appropriate. A liability is recorded to reflect the amounts that are potentially refundable.

Reclassifications

Certain reclassifications have been made in prior period’s financial statements to conform to classifications used in the current period.

Liquidity

As of June 30, 2009, we had cash and cash equivalents of $1,472. Net cash used in operating activities for the six months ended June 30, 2009 was $102,063. Current liabilities are $397,923 of which $123,725 is for accounts payable, $146,967 for Notes Payable and $125,923 is Notes Payable – related party. We have negative working capital of $396,451.

The accompanying condensed consolidated financial statements have been prepared contemplating a continuation of the Company as a going concern. However, the Company has reported a net loss of $251,309 and $764,562 for the three and six months ended June 30, 2009 and $1,977,158 for the year ended December 31, 2008 and had an accumulated deficit of $12,270,169 as of June 30, 2009 and $11,505,607 as of December 31, 2008.

We will need additional investments in order to continue operations to cash flow break even. Additional investments are being sought, but we cannot guarantee that we will be able to obtain such investments. Financing transactions may include the issuance of equity or debt securities, obtaining credit facilities, or other financing mechanisms. However, the trading price of our common stock and the downturn in the U.S. stock and debt markets could make it more difficult to obtain financing through the issuance of equity or debt securities. Even if we are able to raise the funds required, it is possible that we could incur unexpected costs and expenses, fail to collect significant amounts owed to us, or experience unexpected cash requirements that would force us to seek alternative financing. Further, if we issue additional equity or debt securities, stockholders may experience additional dilution or the new equity securities may have rights, preferences or privileges senior to those of existing holders of our common stock. If additional financing is not available or is not available on acceptable terms, we will have to curtail our operations.

Net Loss Per Share

Basic and diluted loss per share amounts are computed based on net loss divided by the weighted average number of common shares outstanding. Outstanding options to purchase 5,640,000 common shares, warrants to the purchase of 8,175,000 common shares were not included in the computation of diluted loss per share because the assumed conversion and exercise would be anti-dilutive for the three months ended March 31, 2009. The warrants to the purchase of 8,175,000 common shares and outstanding options to purchase 5,640,000 common shares were not included in the computation of diluted loss per share because the assumed conversion and exercise would be anti-dilutive for the three and six months ended June 30, 2009.

Management Estimates

The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates.

Stock Based Compensation

On January 1, 2006 the Company adopted Statement of Financial Accounting Standards No. 123 (revised 2004) "Share-Based Payment" ("SFAS 123 (R) which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options and employee stock purchases related to a Employee Stock Purchase Plan based on the estimated fair values. SFAS 123 (R) supersedes the Company's previous accounting under Accounting Principles Board Opinion No.25, "Accounting for Stock Issued to Employees" ("APB 25") for the periods beginning fiscal 2006.

2. ACCOUNTS RECEIVABLE

Due to the collection history of the company an Allowance for Doubtful Accounts is not maintained. Recognition of a specific uncollectible account is written directly against the invoice in Accounts Receivable and expensed in the current period.

3. PREPAID EXPENSES

Prepaid expenses consist of the following:

	June 30, 2009		December 31, 2008
Prepaid expenses	$	-	$	16,667
Prepaid insurance		-		1,143
Total prepaid	$	-	$	17,810

4. FURNITURE AND EQUIPMENT

Furniture and equipment consists of the following:

	June 30, 2009			December 31, 2008
Computers and equipment	$	169,286		$	169,286
Furniture and fixtures		38,618			38,618
Subtotal		207,904			207,904
Less: accumulated depreciation		(164,814	)		(153,390	)
Net furniture and equipment	$	43,090		$	54,514

Depreciation is calculated by using the straight-line method over the estimated useful life. Depreciation expense totaled $5,712 and $6,008 for the three months ended June 30, 2009 and 2008, respectively. Depreciation expense totaled $11,424 and $8,488 for the six months ended June 30, 2009 and 2008, respectively.

5. INTANGIBLE ASSETS

The Company has adopted SFAS No. 142, Goodwill and Other Intangible Assets, whereby the Company periodically tests its intangible assets for impairment. On an annual basis, and when there is reason to suspect that their values have been diminished or impaired, these assets are tested for impairment, and write-downs will be included in results from operations. There was no impairment of acquired intangibles as of June 30, 2009 and December 31, 2008.

Identifiable intangible assets consist of the carrying value of a trademark totaling $1,339 as of June 30, 2009 and December 31, 2008. The trademark acquired is considered to have an undeterminable life, and as such will not be amortized. Instead, the trademark is tested annually for impairment, with any impairment charged against earnings in the Company’s consolidated statement of earnings. Management determined the fair value of the trademark acquired exceeded its recorded book value at June 30, 2009 and December 31, 2008.

6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts Payable and Accrued Liabilities consist of:	June 30, 2009		December 31, 2009
Accounts Payable	$	69,927	$	39,169
Payroll Liabilities		53,798		9,900
Total	$	123,725	$	79,069

7. NOTES PAYABLE

The Company has issued two Demand Note.

The Company issued an unsecured Demand Note to Digital Health Inc. The Note bears interest at a rate of seven percent per annul and is due on demand after two years.

	June 30, 2009
Beginning Balance		-
Borrowings		66,491
Accrued Interest		1,396
Balance	$	67,887

On September 26, 2008 the Company issued a Demand Note in the principle amount of $75,000 to an individual. This Note bears interest at a rate of seven percent per annum, with interest accruing until note maturity.

	June 30, 2009		December 31, 2008
Beginning Balance	$	76,390	$	-
Borrowings		-		75,000
Accrued Interest		2,690		1,390
Balance	$	79,080	$	76,390

8. NOTES PAYABLE - RELATED PARTY

On July 31, 2008 the Company issued an unsecured Demand Note in the principle amount of 44,771 to Cybervault LLC, a company wholly owned by Medefile CEO. The Note bears interest at a rate of seven percent per annum. Additionally, during the fourth quarter 2008, an additional $45,000 has been received from Cybervault LLC.

	March 31, 2009		December 31, 2008
Beginning Balance	$	91,518	$
Borrowings				89,771
Accrued Interest		3,205		1,747
Balance at	$	94,723	$	91,518

Throughout the previous six months the Company received additional funds totaling $29,200 from relatives of the Company’s CEO. These amounts are due on demand and bear no interest rate. Total amount due to relatives as of June 30, 2009 is $31,200

9. LOAN PAYABLE - RELATED PARTY

The Company has been and continues to be dependent upon the funding from The Vantage Group, Ltd., (“Vantage”) the Company’s largest stockholder. On April 11, 2007, the Company issued two unsecured promissory notes to The Vantage Group as evidence of this indebtedness outstanding. Both notes bear interest at the rate of seven percent per annum. One note, with a principal amount of $1,115,379, was payable on July 1, 2008. The other note, is payable on demand in the principal amount of $700,000. During the year ended December 31, 2007, the Company borrowed a total of $1,245,000 against the demand note and repaid $20,979. On November 15, 2007, the Company and Vantage, entered into a debt conversion agreement. Pursuant to the debt conversion agreement, Vantage agreed to convert the aggregate principal amount of $2,100,000, of its indebtedness into an aggregate of 14,000,000 restricted shares of common stock of the Company. The conversion amount was used to satisfy the note maturing on July 1, 2008, and the remaining conversion amount was used to pay down the demand loan. In addition, the Company issued to Vantage 8,400,000 three year warrants to purchase an aggregate of 8,400,000 restricted shares of the Company’s common stock at an exercise price of $0.60 per share. As of December 31, 2007, the shares of common stock had not been issued and were recorded as common stock subscribed, until issuance. The shares were issued on February 7, 2008.

As of December 31, 2007, the Company was indebted to the Vantage Group Ltd. in the amount of $1,102,104, including accrued interest for the demand note bearing interest at 7% per annum. During the quarter ended March 31, 2008, the Company made payments on the demand note to Vantage for $500,000. The demand note balance and summarized transactions are shown below:

On September 23, 2008 the Company received a Cancellation of Debt from Vantage Group Ltd, canceling the remaining balance of the Loan Payable, including all outstanding interest as of that date. In addition Vantage Group Ltd surrendered 14,000,000 shares of common stock and 8,400,000 warrants at $0.60.

10. EQUITY

Common Stock

On November 15, 2007, the Company and Vantage, the Company’s largest stockholder and primary source of funding, entered into a debt conversion agreement. Pursuant to the debt conversion agreement, Vantage agreed to convert the aggregate principal amount of $2,100,000 of its indebtedness into an aggregate of 14,000,000 restricted shares of common stock of the Company. At December 31, 2007 the conversion amount was recorded as common stock subscribed until issuance. In addition, the Company issued to Vantage 8,400,000 three year warrants to purchase an aggregate of 8,400,000 restricted shares of the Company’s common stock at an exercise price of $0.60 per share. The shares were issued on February 7, 2008.

On November 16, 2007, pursuant to the terms of a securities purchase agreement the Company sold subscriptions for 11,000,000 restricted shares of the Company’s common stock and three year warrants to purchase an aggregate of 6,600,000 restricted shares of the Company’s common stock at an exercise price of $0.60 per share for aggregate proceeds of $1,650,000. As of December 31, 2007, the shares of common stock had not been issued and the funds were recorded as common stock subscribed until issuance. The shares were issued on February 7, 2008

During the quarter ended March 31, 2008, pursuant to the terms of the Purchase Agreement, the Company issued and sold 2,000,000 restricted shares of the Company’s common stock and three year warrants to purchase an aggregate of 1,200,000 restricted shares of the Company’s common stock at an exercise price of $0.60 per share for aggregate proceeds of $300,000. The Company claims an exemption from the registration requirements of the Act for the private placement of these securities pursuant to Section 4(2) of the Act and/or Regulation D promulgated thereunder since, among other things, these transactions did not involve a public offering, the investors were accredited investors and/or qualified institutional buyers, the investors had access to information about us and their investment, the investors took the securities for investment and not resale, and the Company took appropriate measures to restrict the transfer of the securities.

The Company issued 37,500 shares of common stock to an employee per their employment agreement during the quarter ended March 31, 2008. The Company recognized compensation expense of $22,125 based on the closing price of the Company’s common stock as of the grant date.

On September 23, 2008, in connection with the Cancellation of Debt Agreement with Vantage Group (Note 7) 14,000,000 share of restricted common stock, previously issued on February 27, 2008 were cancelled and returned to the Company.

On September 30, 2008 the Company issued 2,000,000 shares of restricted common stock in exchange for $300,000

On December 16, 2008 the Company issued 24,722,561 shares common stock for the amount due to employees and consultants. The market value of the shares issued was $346,116.

On January 23, 2009 the Company issued 109,579,135 shares of common stock for amounts due employees and consultants. The share issuance had a market value of $202,381

On January 28, 2009 the Company issued 14,027,439 shares of common stock for amounts due employees and consultants. The share issuance had a market value of $28,055.

On February 20, 2009 the Company issued 28,410,864 shares of common stock for amounts due employees and consultants. The share issuance had a market value of $28,410.

On March 04, 2009 the Company issued 87,826,007 shares of common stock for amounts due employees and consultants. The share issuance had a market value of $70,261.

On March 16, 2009 the Company issued 45,689,216 shares of common stock for amounts due employees and consultants. The share issuance had a market value of $27,413.

On April 08, 2009 the Company issued 11,397,420 shares of common stock for amounts due employees and consultants. The share issuance had a market value of $6,838.

On May 05, 2009 the Company issued 120,189,675 shares of common stock for amounts due employees and consultants. The share issuance had a market value of $96,152

On May 19, 2009 the Company issued 7,142,857 shares of common stock for amounts due employees and consultants. The share issuance had a market value of $3,572

On May 26, 2009 the Company issued 8,000,000 shares of common stock for amounts due employees and consultants. The share issuance had a market value of $6,400

On June 11, 2009 the Company issued 107,189,500 shares of common stock for amounts due employees and consultants. The share issuance had a market value of $96,470

On June 22, 2009 the Company issued 25,000,000 shares of common stock for amounts due employees and consultants. The share issuance had a market value of $20,000

Stock Options

A summary of option activity under the Plan as of June 30, 2009, and changes during the period then ended are presented below:

	Options	Weighted-Average Exercise Price
Outstanding at December 31, 2007	5,640,000	$	.080
Issued	-		-
Exercised	-		-
Forfeited or expired	-		-
Outstanding at December 31, 2008	5,640,000		0.80
Issued	-		-
Expired	-		-
Forfeited	-		-
Outstanding at June 30, 2009	5,640,000		0.80
Non-vested at June 30, 2009	-	$	-
Exercisable at June 30, 2009	5,640,000	$	0.80

The options outstanding as of June 30, 2009 have been segregated for additional disclosure as follows:

Options Outstanding			Options Exercisable
			Weighted
		Weighted	Average		Weighted
Range of		Average	Remaining		Average
Exercise	Number	Exercise	Contractual	Number	Exercise
Price	Outstanding	Price	Life	Exercisable	Price
$0.80	5,640,000	$ 0.80	1.25	5,640,000	$ 0.80

Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. For the six months ended June 30, 2009 and 2008, the Company recorded no compensation expense related to options.

Warrants

On June 19, 2006 the Company issued 200,000 warrants to consultants for services to be provided. The warrants vested in 50,000 increments on June 19, 2006; September 18, 2006, December 17, 2006 and March 17, 2007. The estimated value of the compensatory warrants granted to non-employees in exchange for services and financing expenses was determined using the Black-Scholes pricing model and the following assumptions:

Risk-free interest rate at grant date	4.75	%
Expected stock price volatility	86	%
Expected dividend payout	--
Expected option in life-years	4

As of December 31, 2007, all warrants were fully vested. During the quarter ended March 31, 2008, the Company issued 16,200,000 three year warrants to purchase an aggregate of 16,200,000 restricted shares of the Company’s common stock at an exercise price of $0.60 per share as part of the common stock sales. On September 23, 2008, in connection with the Vantage Group Ltd Cancellation of Debt agreement, 8,400,000 warrants previously mentioned were cancelled (See Note 8). A summary of the warrants outstanding and exercisable appears below:

Warrants Outstanding							Warrants Exercisable
					Weighted						Weighted
					Average		Weighted				Average
					Remaining		Average				Remaining
Exercise			Number		Contractual		Exercise		Number		Contractual
Prices			Outstanding		Life (years)		Price		Exercisable		Life (years)
	$	3.50		50,000		.97	$	3.50		50,000		.97
	$	5.00		50,000		1.22	$	5.00		50,000		1.22
	$	6.50		50,000		1.47	$	6.50		50,000		1.47
	$	8.00		50,000		1.72	$	8.00		50,000		1.72
	$	0.60		7,800,000		1.50	$	0.60		7,800,000		1.50
	$	0.56		175,000		3.50	$	0.56		175,000		3.50
				8,175,000		1.54	$	0.73		8,175,000		1.54

The Company awarded 175,000 Common Stock warrants, at an exercise price of $0.56 per share, to former board members at the quoted stock price on the effective date of the awards. The warrants have an expiration date of five years from the issue date and contain provisions for a cash exercise. The estimated value of the compensatory warrants granted to non-employees in exchange for services and financing expenses was determined using the Black-Scholes pricing model and the following assumptions:

Risk-free interest rate at grant date	4.75	%
Expected stock price volatility	155	%
Expected dividend payout	--
Expected option in life-years	5

During the three months ended March 31, 2008, the Company recorded the fair value of the warrants totaling $80,553 as compensation expense.

Transactions involving warrants are summarized as follows:

	Number of Warrants	Weighted-Average Price Per Share
Outstanding at December 31, 2008	8,175,000	$	.073
Granted	-		-
Exercised	-		-
Canceled or expired	-		-
Outstanding at June 30, 2008	8,175,000	$	0.73

11. RELATED PARTY TRANSACTIONS

See Notes 8 and 9.

12. SUBSEQUENT EVENTS

The Company adopted FASB Statement No. 165, Subsequent Events (“FAS 165”) effective June 15, 2009. FAS 165 defines subsequent events as either recognized (events that existed at the balance sheet date and therefore should be reflected in the financial statements) or non-recognized (events that did not exist at the balance sheet date and are not reflected in the financial statements; material non-recognized subsequent events should be disclosed). FAS 165 requires the Company to disclose the date through which it has evaluated subsequent events and whether the date represents the date the financial statements were issued or were available to be issued. The Company has evaluated subsequent events through August 14, 2009, the date the financial statements were issued.

On July 20, 2009 the Company issued 64,147,106 share of common stock for amounts due consultants. The share issuance had a market value of $32,074.

On July 27, 2009 the Company issued 2,500,000 shares of common stock for amounts due to employees and consultants. The share issuance had a market value of $2,500.

On July 29, 2009 the Company issued 60,073,553 shares of common stock for amounts due to employees and consultants. The share issuance had a market value of $72,088.

Item 2. Management's Discussion and Analysis

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS

It should be noted that this Management’s Discussion and Analysis of Financial Condition and Results of Operations may contain "forward-looking statements." The terms "believe," "anticipate," "intend," "goal," "expect," and similar expressions may identify forward-looking statements. These forward-looking statements represent the Company's current expectations or beliefs concerning future events. The matters covered by these statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including the Company's dependence on product introduction and customer acceptance of new products, the impact of competition and price erosion, as well as other risks and uncertainties. The foregoing list should not be construed as exhaustive, and the Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements, or to reflect the occurrence of anticipated or unanticipated events. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation that the strategy, objectives or other plans of the Company will be achieved. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. We undertake no duty to update this information. More information about potential factors that could affect our business and financial results is included in the section entitled "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2008 filed with the Securities and Exchange Commission on April 15, 2009. The following discussion should be read in conjunction with our consolidated financial statements provided in this quarterly report on Form 10-Q.OVERVIEW

Organizational History

As a result of the Agreement, the OmniMed Shareholders assumed control of Bio-Solutions. Effective November 21, 2005 Bio-Solutions changed its name to OmniMed International, Inc. Effective January 17, 2006; OmniMed changed its name to Medefile International, Inc. ("Medefile" or "the Company").

Our future operations are dependent upon the identification and successful completion of additional equity financing, the support of creditors and shareholders, and, ultimately, the achievement of profitable operations. Other than as discussed in this report, we know of no trends, events or uncertainties that are reasonably likely to impact our future liquidity.

RESULTS OF OPERATIONS

THREE MONTHS ENDING JUNE 30, 2009 COMPARED TO THREE MONTHS ENDING JUNE 30, 2008

Revenues

Revenues for the quarter ended June 30, 2009 totaled $2,716 compared to revenues of $12,605 during the quarter ended June 30, 2008. The decrease in revenue is primarily related to a decrease in the amount of members and medical record reimbursement revenue received from members. Medical record reimbursement revenue is a dollar for dollar reimbursement for charges from member’s doctors for sending updated medical records to Medefile. The off-setting expense is charged to selling general and administrative expense.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the quarter ended June 30, 2009 totaled $244,268 consisting primarily of non-cash compensation, marketing costs and professional fees. This is a decrease of $346,152 or approximately 58.6% compared to selling, general and administrative expenses of $590,420 for the quarter ended June 30, 2008. The overall decrease in the total selling, general and administrative is primarily due a decrease in sales, marketing, and business development expenses.

Depreciation Expense

Depreciation expense totaled $5,712 for the quarter ended June 30, 2009, compared to depreciation expense of $6,008 during the quarter ended June 30, 2008. The decrease was due to some assets being fully depreciated and the purchase of assets in the 2008.

Interest Expense

Net interest expense for the quarter ended June 30, 2009 was $4,045, a decrease of $7,338 or approximately 64.5% compared to interest expense of $11,383 during the quarter ended June 30, 2008. The reason for the decrease was reduction in loans payable – related party, reducing the average amount of the loan outstanding.

Net Loss

For the reasons stated above, our net loss for quarter ended June 30, 2009 was $251,308 or $0.00 per share, a decrease of $343,898 or approximately 57.7%, compared to a net loss of $595,206 or $0.0per share during the quarter ended June 30, 2008.

SIX MONTHS ENDING JUNE 30, 2009 COMPARED TO SIX MONTHS ENDING JUNE 30, 2008

Revenues

Revenues for the six months ended June 30, 2009 totaled $7,456 compared to revenues of $22,261 during the six months ended June 30, 2008. The decrease in revenue is primarily related to a decrease in the amount of members and medical record reimbursement revenue received from members. Medical record reimbursement revenue is a dollar for dollar reimbursement for charges from member’s doctors for sending updated medical records to MedeFile. The off-setting expense is charged to selling general and administrative expense.

Selling, General and Administrative Expenses

Selling, general and administrative expenses for the six months ended June 30, 2009 totaled $753,303 consisting primarily of non-cash compensation, marketing costs and professional fees. This is a decrease of $419,941 or approximately 35.8% compared to selling, general and administrative expenses of $1,173,244 for the six months ended June 30, 2008. The overall decrease in the total selling, general and administrative is primarily due an decrease in sales, marketing, and business development expenses.

Depreciation Expense

Depreciation expense totaled $11,424 for the six months ended June 30, 2009, compared to depreciation expense of $8,488 during the six months ended June30, 2008. The increase was due to some assets being fully depreciated and the purchase of assets in the 2008.

Interest Expense

Net interest expense for the six months ended June 30,, 2009 was $7,291, a decrease of $18,151 or approximately 71.3% compared to interest expense of $25,422 during the six months ended June 30, 2008. The reason for the decrease was reduction in loans payable – related party, reducing the average amount of the loan outstanding.

Net Loss

For the reasons stated above, our net loss for six months ended June 30, 2009 was $764,562 or $0.00 per share, an decrease of $420,351 or approximately 35.4%, compared to a net loss of $1,184,913 or $0.01 per share during the six months ended June 30, 2008.

FINANCIAL CONDITION

Liquidity and Capital Resources

As of June 30, 2009, we had cash and cash equivalents of $1,472. Net cash used in operating activities for the six months ended June 30, 2009 was approximately $102,063. Current liabilities of $397,923 consisted of $123,725 for accounts payable, $146,967 for notes payable and $125,923 for notes payable to a related parties. We have negative working capital of approximately $396,451.

The accompanying condensed consolidated financial statements have been prepared contemplating a continuation of the Company as a going concern. However, the Company has reported a net loss of $764,562 for the six months ended June 30, 2009 and $1,977,158 for the year ended December 31, 2008 and had an accumulated deficit of $12,270,169 as of June 30, 2009. The Company had a negative working capital of $396,451 as of June 30, 2009.

Off-Balance Sheet Arrangements

We do not have any off balance sheet arrangements as of March 31, 2009 or as of the date of this report.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a Smaller Reporting Company as defined Rule 12b-2 of the Exchange Act and in item 10(f)(1) of Regulation S-K, we are electing scaled disclosure reporting obligations and therefore are not required to provide the information requested by this Item 3.

ITEM 4T. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Our management, including our Chief Executive Officer (our Principal Executive Officer and Principal Financial Officer), has evaluated our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended), as of the period ended June 30, 2009, the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were not effective as of June 30, 2009 to ensure the timely collection, evaluation and disclosure of information relating to our company that would potentially be subject to disclosure under the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms.

Changes in Internal Control Over Financial Reporting

During the most recent quarter ended June 30, 2009, there has been no change in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) ) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

Other than as noted below, Medefile is not a party to any pending legal proceeding, nor is its property the subject of a pending legal proceeding, that is not in the ordinary course of business or otherwise material to the financial condition of Medefile's business.

Consumer Protection Corporation

On September 8, 2008, the Company was notified via a process server of a proposed class action suit brought by Consumer Protection Corporation (“CPC”) in Superior Court in the State of Arizona. CPC alleges that the Company sent an unsolicited facsimile advertisement in violation of the TCPA. On October 8, 2008, the matter was moved to the District Court of Arizona. On October 28, 2008, the Company filed a motion to dismiss the action based on the plaintiff’s failure to properly allege a cause of action. CPC filed a response to the Company’s motion to dismiss on November 4, 2008. CPC is seeking damages of $500 per member of the class. As the class has yet to be certified by the court, management is unable to estimate the potential liability related to this claim. The Company denies any involvement in the alleged facsimile transmission and intends to vigorously defend itself.

Realty Associates Fund VI, LP

On April 3, 2009, Realty Associates Fund VI, LP filed suit against the Company in the Superior Court of New Jersey, Law Division – Morris County, alleging amounts owed under the Company’s lease with Realty Associates. On August 5, 2009, Realty Associates requested that the court enter a default judgment against the Company in the amount of $204,535.26.

Item 1A. Risk Factors

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

On April 08, 2009 the Company issued 11,397,420 shares of common stock for amounts due employees and consultants. The share issuance had a market value of $6,838.

On May 05, 2009 the Company issued 120,189,675 shares of common stock for amounts due employees and consultants. The share issuance had a market value of $96,152

On May 19, 2009 the Company issued 7,142,857 shares of common stock for amounts due employees and consultants. The share issuance had a market value of $3,572

On May 26, 2009 the Company issued 8,000,000 shares of common stock for amounts due employees and consultants. The share issuance had a market value of $6,400

On June 11, 2009 the Company issued 107,189,500 shares of common stock for amounts due employees and consultants. The share issuance had a market value of $96,470

On June 22, 2009 the Company issued 25,000,000 shares of common stock for amounts due employees and consultants. The share issuance had a market value of $20,000

The Company claims an exemption from the registration requirements of the Act for the private placement of these securities pursuant to Section 4(2) of the Act and/or Regulation D promulgated thereunder since, among other things, these transactions did not involve a public offering, the investors were accredited investors and/or qualified institutional buyers, the investors had access to information about us and their investment, the investors took the securities for investment and not resale, and the Company took appropriate measures to restrict the transfer of the securities.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Submission of Matters to a Vote of Security Holders

None.

Item 5. Other Information

None.

Item 6. Exhibits

(a) Pursuant to Rule 601 of Regulation S-K, the following exhibits are included herein or incorporated by reference.

2.1

Agreement and Plan of Merger made as of November 1, 2005 among Bio-Solutions International, Inc., OmniMed Acquisition Corp., OmniMed International, Inc., and the shareholders of OmniMed International, Inc. (as incorporated by reference to the Company's Current Report on Form 8-K filed on November 3, 2005).

3.1

Articles of Incorporation (as incorporated by reference to the Company's Annual Report on Form 10-KSB filed on April 17, 2006).

3.2

Bylaws of the Issuer (as incorporated by reference to the Company's Annual Report on Form 10-KSB filed on April 17, 2006).

3.3

Certificate of Amendment to Articles of Incorporation filed on August 31, 2004 (as incorporated by reference to the Company's Annual Report on Form 10-KSB filed on April 17, 2006).

3.4

Articles of Merger changing the Registrant's name to OmniMed International, Inc. (as incorporated by reference to the Company's Current Report on Form 8-K filed on November 22, 2005).

3.5

Articles of Merger changing the Registrant's name to Medefile International, Inc. (as incorporated by reference to the Company's Current Report on Form 8-K filed on January 18, 2006).

10.6

2006 Stock Incentive Plan (as incorporated by reference to the Company's Annual Report on Form 10-KSB filed on April 17, 2006).

10.7

HSA Bank Marketing Agreement

10.8

Promissory Note dated April 11, 2007

10.9

Promissory Note dated April 11, 2007—Add stock sales agreements and note

14.

Code of Ethics

16.1

Letter from Former Accountant (as incorporated by reference to Form 8-K filed with the Securities and Exchange Commission on March 7, 2006)

21.1

Subsidiaries

31.1

Section 302 Certification – Chief Executive Officer

	31.2	Section 302 Certification – Chief Financial Officer

	32.1	Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002- Chief Executive Officer

	32.2	Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002- Chief Executive Officer

* Filed herewith.

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	MEDEFILE INTERNATIONAL, INC.

August 14, 2009	By:	/s/ Milton Hauser
		Milton Hauser
		President, Chief Executive Officer, Acting Chief Financial Officer and Director (Principal Executive Officer and Principal Financial Officer)