UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D. C. 20549

 

FORM 10-K

 

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

 

For the year ended December 31, 2016

 

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

 

For the transition period from

 

Commission file number 033-25126-D

 

MedeFile International, Inc.

(Exact name of registrant as specified in its charter)

 

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

 

301 Yamato Road, Suite 1200

Boca Raton, FL 33413

(Address of principal executive offices) (Zip code)

(561) 912-3393

(Registrant’s telephone number, including area code)

  

Securities registered pursuant to Section 12(b) of the Act: None

 

Securities registered pursuant to Section 12(g) of the Act: None

 

DOCUMENTS INCORPORATED BY REFERENCE – None

 

Indicate by check mark whether the registrant is a well-known seasoned issuer as defined in Rule 405 of the Securities Act.  ☐ Yes   ☒ No

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.   ☐ Yes   ☒ No

 

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    ☐ No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   ☒ Yes    ☐ No

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ☒

 

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 ☐ Accelerated filer ☐
Non-accelerated filer ☐ Smaller reporting company  ☒

 

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). ☐ Yes   ☒ No

 

As of June 30, 2016, the aggregate market value of the issued and outstanding common stock held by non-affiliates of the registrant, based upon the last closing price of our common stock of $0.10 was approximately $2,830,000. For purposes of the above statement only, all directors, executive officers and 10% shareholders are assumed to be affiliates.  This determination of affiliate status is not necessarily a conclusive determination for any other purpose.

 

Number of shares of common stock outstanding as of March 29, 2017, was 28,756,010.

 

 

 

 

 

 

FORM 10-K

 

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2016

INDEX

 

    Page
  PART I  
Item 1 Business 1
Item 1A Risk Factors 6
Item 1B Unresolved Staff Comments 9
Item 2 Properties 9
Item 3 Legal Proceedings 9
Item 4 Mine Safety Disclosures 9
  PART II  
Item 5 Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 10
Item 6 Selected Financial Data 10
Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations 11
Item 7A Quantitative and Qualitative Disclosures About Market Risk 13
Item 8 Financial Statements and Supplementary Data  F-1
Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 14
Item 9A Controls and Procedures 14
Item 9B Other Information 15
  PART III  
Item 10 Directors, Executive Officers, and Corporate Governance 16
Item 11 Executive Compensation 18
Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 21
Item 13 Certain Relationships and Related Transactions, and Director Independence 21
Item 14 Principal Accountant Fees and Services 22
  PART IV  
Item 15 Exhibits and Financial Statement Schedules 23
  Signatures 24

 

 

 

 

PART I

 

Item 1. Business.

 

Organizational History

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 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”, the “Company”, “we”, “us”, or “our”).

  

Overview of Business

 

MedeFile International, Inc., through its MedeFile, Inc. subsidiary, has developed and markets a proprietary, patient-centric, Internet-enabled Personal Health Record (pier) system for gathering, digitizing, maintaining, accessing and sharing an individual’s actual medical records. MedeFile’s goal is to revolutionize the medical industry by bringing patient-centric 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.

 

Interoperable with most electronic medical record systems utilized by physician practices, clinics, hospitals and other care providers, the highly secure, feature-rich MedeFile iPHR solution has been designed to gather all of its members’ actual medical records on behalf of each member, and create a single, comprehensive, electronic Personal Health Record (PHR).  The member can access his/her records 24-hours a day, seven days a week – or authorize a third party user – on any web-enabled device (PC, cell phone, PDA, e-reader, et al), as well as the portable MedeDrive flash drive/keychain or branded UBS-bracelet.

 

By subscribing to the MedeFile system, members empower themselves to take control of their own health and well-being, and empower their healthcare providers to make sound and lifesaving decisions with the most accurate, up-to-date medical information available.  In addition, with MedeFile, members benefit from knowing that their medical records are protected from fire, natural disaster, document misplacement or the closing of a medical or dental practice.

 

MedeFile believes it enjoys a number of direct, competitive advantages over others in the medical records marketplace, including that:

 

● MedeFile has developed products and services geared to the patient, which also have the depth and breadth of information required by treating physicians and medical personnel.
● MedeFile does all the work of collecting and updating medical information on an ongoing basis; our products’ dependence on the patient taking action is minimal – particularly when compared to patient action required to support competing solutions.
● MedeFile provides a complete medical record.  Other companies claim complete longitudinal records, but in reality only provide histories (usually completed by the member/patient), and are by no means complete or necessarily accurate records.
● MedeFile provides a coherent mix of services and products that are intended to improve the quality of healthcare by enabling the patient to manage and access the information normally retained by doctors and other care providers.

 

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Industry Overview

 

Since the beginning of modern medicine, information about a patient’s history, testing, treatment and care have been key factors in the provision and delivery of quality healthcare. Medical record information takes many forms, such as the patient’s diagnosis, treatments, surgeries, medications, allergies, x-rays, and test results. The usage of medical record information has dramatically increased over the past two decades due to factors such as the complex reimbursement structure in the United States healthcare system, an ever more litigious society, and increased patient awareness.

 

Every patient visit generates a medical record. Today, this information is largely contained in a paper-based patient medical record. A patient’s medical records are usually stored in physicians’ offices as well as other healthcare facilities the patient has visited. A record that tracks a patient’s medical treatment over time is called a “longitudinal record.”

 

In today’s healthcare environment, access to hospital-based medical records by patients and other authorized parties (e.g., insurance companies, attorneys, etc.) is controlled by Release of Information (ROI) policies and procedures. ROI processes are based on the premise that patients have a right to access their medical records and that they must specifically designate any other party to whom their medical information can be released. ROI policies and procedures are based on the following laws and policies: the federal Health Insurance Portability and Accountability Act (HIPAA), various state laws, and the policies and professional practice guidelines set forth by the American Health Information Management Association (AHIMA).

 

Congress passed the Health Insurance Portability & Accountability Act (HIPAA) in 1996. The purpose of HIPAA is to prevent fraud in the healthcare industry and to protect confidential patient information. HIPAA standardizes and provides enforcement mechanisms for ROI rules and guidelines to protect personal healthcare information. HIPAA effects entities involved with electronic health care information--including health care providers, health plans, employers, public health authorities, life insurers, clearinghouses, billing agencies, information systems vendors, service organizations, universities, and even single-physician offices. The final version of the HIPAA Privacy regulations was issued in December 2000, and went into effect on April 14, 2001.  A two-year “grace” period was included; enforcement of the HIPAA Privacy Rules began on April 14, 2003.

 

In addition, in 2009, the Health Information Technology for Economic and Clinical Health Act (HITECH Act) legislation was created to stimulate the adoption of electronic health records (EHR) and supporting technology in the United States. President Obama signed HITECH into law on February 17, 2009 as part of the American Recovery and Reinvestment Act of 2009 (ARRA), an economic stimulus bill. The HITECH Act continues the effort of the Health Insurance Portability and Accountability Act (HIPAA) to encourage movement to electronic patient records and to deliver stricter data protection regulations for more secure patient privacy. The HITECH act stipulates that, beginning in 2011, healthcare providers will be offered financial incentives for demonstrating meaningful use of electronic health records (EHR).

 

Overview of Products and Services

 

MedeFile iPHR

 

MedeFile is a Business-to-Business and a Business-to-Consumer subscription service. MedeFile is designed to create a “cradle to grave” longitudinal record for each of its members by retrieving and consolidating copies of their medical records. When the records are received, the MedeFile system consolidates them into a single medically correct format. The records are then stored in MedeFile’s MedeVault, a secure repository that can be accessed by MedeFile members 24 hours a day, 7 days a week. Because of the unique security procedures incorporated into the MedeFile system through SecuroMed, the member is the only person to access or give permission to access their records.

 

A complete MedeFile iPHR is comprised of copies of the member’s actual medical records as well as a Digital Health Profile (DHP), which is an overview of the patient’s and his family’s medical history. In addition, every Premium MedeFile member and MedeOne member receives a MedeDrive, an external USB drive which stores all of a patient’s Emergency Medical Information as well as a copy of the member’s MedeFile.

 

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MedeFile’s Emergency Medical Information (EMI) Card

 

Upon becoming a MedeFile member, each individual will receive a Membership / Emergency Medical Information (EMI) Card which contains instructions on how to contact MedeFile in order to retrieve the member’s medical records.

 

The Digital Health Profile (DHP)

 

A part of a member’s MedeFile is their Digital Health Profile (DHP). This form is completed by the patient in order to provide a summary of the patient’s healthcare history which assists healthcare providers in understanding the patient’s course of medical treatment. This document, along with Advanced Directives and medical record copies, complete the documents contained in the patient’s MedeFile.

 

MedeDrive

 

The MedeDrive is an external USB drive which stores all of a patient’s Emergency Medical Information and their MedeFile which can be viewed on a personal computer. MedeDrive self loads its own viewer, so no special program or software is required. The MedeDrive easily plugs into any PC USB port on most Windows-based computers built in the last four years. (Macintosh version is currently unavailable). The MedeDrive USB key can be updated easily and as frequently as the member desires at no additional cost.

 

MedeVault

 

The MedeVault is designed to serve as an electronic data and document repository that incorporates state-of-the-art security features in order to prevent unauthorized access to a patient’s records. Access to the MedeVault is provided through an encrypted connection to a web service run by MedeFile. This connection is provided by Secure Sockets Layer (SSL) technology.

  

MedeMinder

 

MedeMinder is MedeFile’s reminder service.  The member tells us when and where to call, and we automatically contact the member day or night with an appropriate reminder, spoken by real people. The member can even choose the voice they want to hear.  MedeMinder helps insure the member will not miss an appointment or forget to take their medication.

 

SecurMed

 

SecurMed is designed to serve as an authentication process that protects against any information being viewed by unauthorized persons.

 

Quality of Care Program

 

MedeFile’s Quality of Care Program is a unique marketing initiative providing for MedeFile to partner on a revenue-sharing basis with established medical practitioners, physician groups and hospitals to educate patients on the benefits and advantages of adopting the MedeFile system as their Personal Health Record solution.  Studies have shown that consumers are more interested in adopting a PHR offered by their healthcare provider than any other source.

 

MedeFile believes that its iPHR platform can serve as a highly effective patient portal and practice integration tool that addresses the need for practitioners to meet Stage 2 “meaningful use” standards required for qualifying for federal incentive payments pursuant to the HITECH Act.    Stage 2 of the HITECH Act, which begins October 2012, stipulates that 20% of the patient populations of eligible providers must have the ability to electronically view and download their health information – including diagnostic test results, physician’s notes, medication lists and medication allergies, via a web-based portal within 36 hours of being seen by the eligible providers.  With the Quality of Care Program, healthcare providers can establish an elevated patient-centric standard of care and economically benefit from increased clinical efficiencies, government “meaningful use” incentives and their financial stake in the successful marketing of MedeFile’s iPHR solution to their patient populations.

 

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MedePro

 

Introduced in 2012, MedePro is a medical record retrieval and document management solution created specifically by MedeFile for legal and insurance professionals.

 

For Legal Professionals

 

Medical record retrieval and document management play critical roles in helping plaintiff or defense counsels build, support and win their cases, be them mass tort, malpractice, personal injury, product liability, workers’ compensation or other types of health- or medical-related litigation. However, the sheer cost, manpower and time required to request, retrieve and manage what is typically hundreds, if not thousands, of records can be overwhelming. Upon engagement, MedeFile’s highly competent MedePRO customer service agents and our proprietary electronic retrieval system go to work contacting case-related healthcare providers nationwide to collect copies of all actual medical records and files – including actual notes, EKGs, X-rays, MRIs, labs, et al. Then, using a secure, double encrypted process, MedeFile consolidates, digitizes, indexes, paginates, Bates stamps, stores and protects the records in the MedeVault, MedeFile’s proprietary, highly secure, redundant electronic depository which can only be accessed by authorized individuals.

 

Retrieved medical records can be searched and viewed online through MedeFile’s secure online portal from anywhere on Earth using an Internet-enabled desktop computer or mobile computing device. In addition, individual and/or collective documents can also be downloaded, shared with co-counsels (essential for large mass tort cases), and copied to a MedeDrive, a proprietary USB thumb drive ideal for portability and convenient and economical long term storage.

 

The MedePRO solution may also be seamlessly integrated into a law firm’s case management system to facilitate real-time, one-click status checks of requested records, helping to expedite case discovery and complex trial preparation.

 

For Insurance Professionals

 

In collaboration with medical insurance providers and with proper authorization, MedePRO enables the expeditious, secure retrieval and management of all actual medical records and files from a patient’s current and former care providers. Records received are then digitized, indexed, coded and stored in the MedeVault, from which case managers can access, view, share and download a patient’s comprehensive, longitudinal personal health record from any web-enabled device. Further, MedePRO’s online record order tracking system allows case managers to view real-time status reports on a 24/7 basis.   Insurance professionals can also tap the power and convenience of MedePRO for the purpose of analyzing medical claims or investigating and adjudicating medical identity theft and fraud.

  

Members

 

As of December 31, 2016, MedeFile had approximately 20,732 members. The Company’s marketing strategy includes issuing trial memberships on several levels.

 

Sales and Marketing

 

MedeFile employs the following marketing strategies to generate awareness of MedeFile’s products and services: direct sales, direct mail, public relations campaigns, speaking engagements by MedeFile’s executive officers, participation in trade shows, and alliances and partnerships with third parties.

 

MedeFile’s marketing strategy will target the following types of organizations: Health Maintenance Organizations; Preferred Provider Organizations; law practices, managed care organizations; insurance companies; trade unions; large affinity groups, such as AARP; large and medium-sized self-insured corporations; nursing homes and assisted living facilities; and Internet users.

 

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In particular, the MedeFile service is designed to be sold in several distinct ways:

 

● MedeFile’s website  - Through normal e-commerce mechanisms, patients may enroll in the service directly from the MedeFile website. Membership may be purchased on an annual basis and may be paid all at once or over time, at the patient’s discretion.
● Physician referrals  - Patients may enroll based on a doctor’s referral. In the event that these physicians are also MedeFile Quality of Care Program customers, they may easily transfer their patients’ information into the MedeFile system.
● Large group offerings (e.g. AARP, trade unions, etc.)  - Large, membership-driven organizations may offer the MedeFile system to their members at a discounted rate, which may be negotiated with MedeFile based on the size of the expected enrollment. An additional promotional advantage may be derived from the use of MedeFile through the website of the client organization. Hence, MedeFile functionality may be accessed using each organization’s site.
● Insurance companies  - Similar to large group offerings identified above, insurance companies may offer the MedeFile service to their insured as a means to decrease the cost of medical care.
● Law firms and insurance companies  – law firms and insurance companies may engage MedeFile’s MedePro service for the purpose of retrieving medical records and managing documents in association with case preparation and management.

 

Technology

 

MedeFile will use and continue to update the most advanced security measures available. Data transmitted between Web browsers and Web servers over the Internet using TCP/IP is generally susceptible to unauthorized interception. To protect sensitive data, the most common method of protection is data encryption. MedeFile will use the industry standard Secure Sockets Layer (SSL), which is a mechanism to secure Internet traffic so that it cannot be intercepted. SSL utilizes digital certificates to verify the identity and integrity of a web site (such as MedeFile) and to protect the security of transactions by certifying their source and destination. 

 

Competition

 

There are other companies working in the medical information technology arena such as GE Healthcare, Bio-Imaging Technologies, and Cyber Records. Some competing companies offer a USB key for medical record storage, but require the customer to provide or “self-populate” the information to be stored. The information in a self-populated record is limited and is only as accurate as the individual’s memory and understanding of their health condition. Other companies expect each customer to obtain their own medical records from their various healthcare providers. Some offer a CD-Rom for record storage. Usually, the CD-Rom cannot be updated with any changes to an individual’s medical status or treatment. Therefore, a new CD-Rom needs to be obtained from that company in order for the individual to have the most current, accurate information regarding their health. There are companies that are solely web-based that do not provide the customer the capability to have a copy of their records. In this case, an Internet connection is required to view stored documents. In addition, there are companies that do not concentrate on digitizing an individual’s medical records but on converting medical facilities’ records from paper to electronic format.

 

The advantage to being a MedeFile member is that MedeFile gathers, consolidates, organizes and securely stores each member’s actual medical records on their behalf. The MedeFile membership includes a Digital Health Profile (DHP) which contains the member’s general health history, emergency contacts, doctor contacts, family medical history, allergies, medications, and current conditions. A MedeFile membership also includes a MedeDrive which easily plugs into any PC USB port on most Windows-based computers built in the last four years. (Macintosh version is currently unavailable). The MedeDrive contains the member’s emergency medical information that can be easily accessed by emergency care personnel, and the client’s actual medical records which are stored in a secure area of the subscriber’s MedeFile. The MedeDrive USB key can be updated easily and as frequently as the member desires at no additional cost.

 

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Employees

 

From our inception through the period ended December 31, 2016, we have primarily relied on the services of outside consultants.  As of December 31, 2016, MedeFile had a total of 2 full time employees and 1 consultants. We believe our relations with our employees are favorable.

 

Item 1A. Risk Factors.

 

An investment in the Company’s common stock involves a high degree of risk. In determining whether to purchase the Company’s common stock, an investor should carefully consider all of the material risks described below, together with the other information contained in this report before making a decision to purchase the Company’s securities. An investor should only purchase the Company’s securities if he or she can afford to suffer the loss of his or her entire investment.

 

RISKS RELATED TO OUR BUSINESS

 

We have a history of operating losses, and we may not achieve or maintain profitability in the future.

 

We incurred a net loss of $423,710, for the year ended December 31, 2016. As of December 31, 2016, we have an accumulated deficit of $28,935,109.

 

In the event that we are unable to secure additional funding to cover our expenses, in order to preserve cash, we would be required to reduce expenditures and effect reductions in our corporate infrastructure, either of which could have a material adverse effect on our ability to continue our current level of operations. There can be no assurances that any such additional funding can be obtained on terms acceptable to us, if at all. If we were not able to generate sufficient capital, either from operations or through additional debt or equity financing, to fund our current operations, we would be forced to significantly reduce or delay our plans for continued research and development and expansion. This could significantly reduce the value of our securities.

 

Our independent registered auditors have expressed substantial doubt about our ability to continue as a going concern.

 

These financial statements have been prepared assuming that the Company will continue as a going concern. The Company has suffered recurring losses from operations and has a net capital deficiency. These conditions raise operating and liquidity concerns and substantial doubt about the Company’s ability to continue as a going concern.

 

The commercial success of our products and services depends on the widespread market acceptance of digital technology in the healthcare industry.

 

The market for digitization of medical records is emerging. Our success will depend on acceptance of digital technology for use in and maintaining and accessing medical records by individuals and healthcare providers, as well as the success of the commercialization of the MedeFile products and services. Presently, it is difficult to assess or predict with any assurance the potential size, timing and viability of market opportunities for our technology in this market. The healthcare records market sector is well established with entrenched competitors with whom we must compete.

 

We may be unable to effectively manage our growth or implement our expansion strategy.

 

Our growth strategy is subject to related risks, including pressure on our management and on our internal systems and controls. Our planned growth will require us to invest in new, and improve our existing, operational, technological and financial systems and to expand, train and retain our employee base. Our failure to effectively manage our growth could have a material adverse effect on our future financial condition. In addition, due to our lack of operating experience we may have difficulty in managing our growth.

 

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We have limited marketing or sales capabilities, and if we are unable to develop sales and marketing capabilities, we may not be successful in commercializing our products.

 

We currently have limited sales, marketing and distribution capabilities. As a result, we may be forced to depend on collaborations or agreements with third parties that have established distribution systems and direct sales forces. To the extent that we enter into co-promotion or other licensing arrangements, our revenues will depend upon the efforts of third parties, over which we may have little or no control.

 

We may engage in future acquisitions, which may be expensive and time consuming and from which we may not realize anticipated benefits.

 

We may acquire additional businesses, technologies and products if we determine that these additional businesses, technologies and products complement our existing business or otherwise serve our strategic goals. If we do undertake transactions of this sort, the process of integrating an acquired business, technology or product may result in operating difficulties and expenditures and may absorb significant management attention which would otherwise be available for ongoing development of our business. Moreover, we may never realize the anticipated benefits of any acquisition. Future acquisitions could result in potentially dilutive issuances of our securities, the incurrence of debt and contingent liabilities and amortization expenses related to intangible assets, which could adversely affect our results of operations and financial condition.

 

RISKS RELATED TO OUR COMMON STOCK

 

There is a limited market for our common stock which may make it more difficult for shareholders to dispose of their shares.

 

Our common stock is quoted on the OTC Pink under the symbol “MDFI”. However, this is an unorganized, inter-dealer, over-the-counter market which provides significantly less liquidity than the NASDAQ Capital Market or other national securities exchange, and there has been limited reported trading to date in our common stock. These factors may have an adverse impact on the trading and price of our common stock.

 

Because our common stock is not registered under the Exchange Act, we will not be subject to the federal proxy rules and our directors, executive offices and 10% beneficial holders will not be subject to Section 16 of the Exchange Act. In addition, our reporting obligations under Section 15(d) of the Exchange Act may be suspended automatically if we have fewer than 300 shareholders of record on the first day of our fiscal year.

 

Our common stock is not registered under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), and we do not intend to register our common stock under the Exchange Act for the foreseeable future (provided that, we will register our common stock under the Exchange Act if we have, after the last day of our fiscal year, more than 500 shareholders of record who are not accredited investors (or more than 2,000 persons in total) and $10 million in assets, in accordance with Section 12(g) of the Exchange Act). As a result, although we are required to file annual, quarterly, and current reports pursuant to Section 15(d) of the Exchange Act, as long as our common stock is not registered under the Exchange Act, we are not subject to Section 14 of the Exchange Act, which, among other things, prohibits companies that have securities registered under the Exchange Act from soliciting proxies or consents from shareholders without furnishing to shareholders and filing with the Securities and Exchange Commission (“SEC”) a proxy statement and form of proxy complying with the proxy rules. In addition, so long as our common stock is not registered under the Exchange Act, our directors and executive officers and beneficial holders of 10% or more of our outstanding common stock will not be subject to Section 16 of the Exchange Act. Section 16(a) of the Exchange Act requires executive officers and directors, and persons who beneficially own more than 10% of a registered class of equity securities to file with the SEC initial statements of beneficial ownership, reports of changes in ownership and annual reports concerning their ownership of common shares and other equity securities, on Forms 3, 4 and 5 respectively. Such information about our directors, executive officers, and beneficial holders will only be available through periodic reports we file under the Exchange Act or registration statements we file under the Securities Act.  Furthermore, so long as our common stock is not registered under the Exchange Act, our obligation to file reports under Section 15(d) of the Exchange Act will be automatically suspended if, on the first day of any fiscal year (other than a fiscal year in which a registration statement under the Securities Act has gone effective), we have fewer than 300 shareholders of record. This suspension is automatic and does not require any filing with the SEC. In such an event, we may cease providing periodic reports and current or periodic information, including operational and financial information, may not be available with respect to our results of operations. 

 

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Our common stock is subject to the “Penny Stock” rules of the SEC and the trading market in our securities is limited, which makes transactions in our stock cumbersome and may reduce the value of an investment in our stock.

 

The Securities and Exchange Commission has adopted Rule 15g-9 which establishes the definition of a “penny stock,” for the purposes relevant to us, as any equity security that has a market price of less than $5.00 per share, subject to certain exceptions. For any transaction involving a penny stock, unless exempt, the rules require:

 

● that a broker or dealer approve a person’s account for transactions in penny stocks; and

 

● the broker or dealer receive from the investor a written agreement to the transaction, setting forth the identity and quantity of the penny stock to be purchased.

 

In order to approve a person’s account for transactions in penny stocks, the broker or dealer must:

 

● obtain financial information and investment experience objectives of the person; and

 

● make a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks.

 

The broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the Commission relating to the penny stock market, which, in highlight form:

 

● sets forth the basis on which the broker or dealer made the suitability determination; and

 

● that the broker or dealer received a signed, written agreement from the investor prior to the transaction.

 

Generally, brokers may be less willing to execute transactions in securities subject to the “penny stock” rules. This may make it more difficult for investors to dispose of our common stock and cause a decline in the market value of our stock.

 

We do not expect to pay dividends for some time, if at all.

 

No cash dividends have been paid on our common stock. We expect that any income received from operations will be devoted to our future operations and growth. We do not expect to pay cash dividends in the near future. Payment of dividends would depend upon our profitability at the time, cash available for those dividends, and other factors.

 

Our future capital needs could result in dilution to investors; additional financing could be unavailable or have unfavorable terms.

 

Our future capital requirements will depend on many factors, including cash flow from operations, progress in our present operations, competing market developments, and our ability to market our products successfully. We will need to raise additional funds through equity or debt financings. Any equity financings could result in dilution to our then-existing stockholders. Sources of debt financing may result in higher interest expense. Any financing, if available, may be on terms unfavorable to us. If we are unable to raise adequate funds, we may be required to reduce or curtail operations.

 

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The rights of the holders of common stock may be impaired by the potential issuance of preferred stock.

 

Our board of directors has the right, without stockholder approval, to issue preferred stock with voting, dividend, conversion, liquidation or other rights which could adversely affect the voting power and equity interest of the holders of common stock, which could be issued with the right to more than one vote per share, and could be utilized as a method of discouraging, delaying or preventing a change of control. The possible negative impact on takeover attempts could adversely affect the price of our common stock.

 

FORWARD-LOOKING STATEMENTS

 

This annual report on Form 10-K includes forward-looking statements. Forward-looking statements are not statements of historical fact but rather reflect our current expectations, estimates and predictions about future results and events. These statements may use words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “predict,” “project” and similar expressions as they relate to us or our management. When we make forward-looking statements, we are basing them on our management’s beliefs and assumptions, using information currently available to us. These forward-looking statements are subject to risks, uncertainties and assumptions, including but not limited to, risks, uncertainties and assumptions discussed in this annual report. Factors that can cause or contribute to these differences include those described under the headings “Risk Factors” and “Management Discussion and Analysis of Financial Condition.”

 

Our actual results may vary materially from what we projected. Any forward-looking statement you read in this annual report reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. All subsequent written and oral forward-looking statements attributable to us or individuals acting on our behalf are expressly qualified in their entirety by this paragraph. You should specifically consider the factors identified in this annual report which would cause actual results to differ before making an investment decision. Except as may be required under applicable securities laws, we undertake no duty to update any of the forward-looking statements.    

 

Item 1B. Unresolved Staff Comments.

 

Not required for a smaller reporting company.

 

Item 2. Properties.

 

MedeFile leases its main office which is located at 301 Yamato Rd, Boca Raton, FL  33431, on a month to month basis. The Company currently pays rent of $1,478 per month.  

 

Item 3. Legal Proceedings.

 

The Company is not party to, and the Company’s property is not the subject of, any material legal proceedings.

 

Item 4. Mine Safety Disclosures.

 

Not applicable.

 

  9  

 

 

PART II

 

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

 

Our common stock is quoted on the OTC Pink under the symbol MDFI.

 

The following table sets forth, for the periods indicated, the range of high and low intraday closing bid information per share of our common stock.

 

    High     Low  
Quarter ended 03/31/15   $ 2.25     $ 0.40  
Quarter ended 06/30/15   $ 0.71     $ 0.10  
Quarter ended 09/30/19   $ 0.10     $ 0.10  
Quarter ended 12/31/15   $ 0.16     $ 0.08  
Quarter ended 03/31/16   $ 1.89     $ 0.175  
Quarter ended 06/30/16   $ 0.425     $ 0.08  
Quarter ended 09/30/16   $ 0.14     $ 0.03  
Quarter ended 12/31/16   $ 0.05     $ 0.03  

 

The above prices are believed to reflect representative inter-dealer quotations, without retail markup, markdown or other fees or commissions, and may not represent actual transactions.

 

As of March 13, 2017, there were approximately 1,073 holders of record of the Company’s common stock.

 

DIVIDEND POLICY

 

We do not currently pay any cash dividends on our common stock, and we currently intend to retain any future earnings for use in our business. Any future determination as to the payment of cash dividends on our common stock will be at the discretion of our Board of Directors and will depend on our earnings, operating and financial condition, capital requirements and other factors deemed relevant by our Board of Directors. There are no restrictions in the Company’s articles of incorporation or bylaws that prevent the Company from declaring dividends. The Nevada Revised Statutes, however, do prohibit the Company from declaring dividends where, after giving effect to the distribution of the dividend:

 

1. The Company would not be able to pay its debts as they become due in the usual course of business; or

 

2. The Company’s total assets would be less than the sum of its total liabilities plus the amount that would be needed to satisfy the rights of shareholders who have preferential rights superior to those receiving the distribution.

 

SALES OF UNREGISTERED SECURITIES

 

None.

 

ISSUER PURCHASES OF EQUITY SECURITIES

 

None.

 

Item 6. Selected Financial Data.

 

Not required for a smaller reporting company.

 

  10  

 

 

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS

 

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 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, except as may be required under applicable securities laws. 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. More information about potential factors that could affect our business and financial results is included in the section entitled “Risk Factors”

 

RESULTS OF OPERATIONS

 

YEAR ENDED DECEMBER 31, 2016 COMPARED TO YEAR ENDED DECEMBER 31, 2015

 

Revenues

 

Revenues for the year ended December 31, 2016 totaled $33,125 compared to revenues of $45,120 during the year ended December 31, 2015.   The decrease in membership revenue is primarily related to amount of members and medical record reimbursement revenue received from members. Medical record reimbursement revenue is a dollar for dollar reimbursement for charges from members’ doctors for sending updated medical records to MedeFile. The off-setting expense is charged to selling general and administrative expense. Revenues received from memberships are recognized through the period of the membership, and, therefore, revenue recognized represents a fraction of the membership in the quarter being reported.  

 

Selling, General and Administrative Expenses

 

Selling, general and administrative expenses for the year ended December 31, 2016 totaled $448,912, a decrease of $361,670 or approximately 46.9% compared to selling, general and administrative expenses of $810,582 for the year ended December 31, 2015. The decrease was due mainly to decreased payroll, legal expense and consulting fees.

 

Depreciation Expense

 

Depreciation expense totaled $0 for the year ended December 31, 2016, compared to depreciation expense of $0 during the year ended December 31, 2015.

 

Amortization Expense

 

Amortization expense for the year ended December 31, 2015 totaled $0, compared to $88,597 for the year ended December 31, 2015. Amortization expense is the expensing of the website development during 2015.

 

Interest Expense

 

Interest expense on convertible debentures for the year ended December 31, 2016 and 2015, was $1,606 and $3,566 respectively. The Company entered into two secured convertible debentures during the third quarter of 2013. The notes have a 10% annual interest rate. Interest expense decreased due to lower note payable balance from partial repayment of note.

 

Interest expense on promissory notes for the year ended December 31, 2016 was $12,817. The company entered into several promissory notes with an annual interest rate of 7%, with terms varying from 4 months to one year.

 

  11  

 

 

Other Expense

 

Gain (Loss) on change in fair value of derivate liabilities for the year ended December 31, 2016 was $6,500 compared to a (loss) of $(61,553) for the year ended December 31, 2015.

 

Loss on write-off of inventory for the year ended December 31, 2016 was $0 compared to $22,228 for the year ended December 31, 2015.

 

Loss on conversion of debt for the year ended December 31, 2016, was $0 compared to $32,072 for the year ended December 31, 2015.

 

Impairment of Website

 

Loss on impairment of website for the years ended December 31, 2016 and 2015, totaled $0 and $182,195, respectively. The impairment was due to the website failing to meet anticipated earnings.

 

Net Income (Loss)

 

For the reasons stated above, our net loss the for year ended December 31, 2015 was $423,710, or $0.01 per share, a decrease of $733,146, compared to net loss of $1,156,856, or $0.04 per share, during the year ended December 31, 2015. The significant change is primarily due to adjustments in the fair value of our derivative liability and a decrease in our general and administrative and compensation expenses.

    

FINANCIAL CONDITION

 

Liquidity and Capital Resources

 

As of December 31, 2016, we had cash and cash equivalents of $13,118 and merchant services reserve of $2,938.  Net cash used in operating activities for the year ended December 31, 2016 was $347,253. Current liabilities of $443,536 consisted of $78,865 for accounts payable and accrued liabilities, derivative liability of $12,567, note payable of $334,817, and convertible debentures (net of discount) of $17,287. We have a net negative working capital of $427,480.

 

The accompanying financial statements have been prepared contemplating a continuation of the Company as a going concern. The Company has reported a net loss of $423,710 for the year ended December 31, 2016 and net loss of $1,156,856 for the year ended December 31, 2015, and had an accumulated deficit of $28,935,109 as of December 31, 2016.

 

The Company currently estimates that it will require approximately $420,000 to continue its operations for the next twelve months.  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 conditions 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 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

 

Off-Balance Sheet Arrangements

 

We do not have any off balance sheet arrangements as of December 31, 2016 or as of the date of this report.

 

Critical Accounting Policies

 

The preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect our reported assets, liabilities, revenues, and expenses, and the disclosure of contingent assets and liabilities.

 

  12  

 

 

We base our estimates and judgments on historical experience and on various other assumptions we believe to be reasonable under the circumstances. Future events, however, may differ markedly from our current expectations and assumptions. While there are a number of significant accounting policies affecting our consolidated financial statements; we believe the following critical accounting policy involves the most complex, difficult and subjective estimates and judgments:

 

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 and fees charged for copying medical records. The Company recognizes revenue on four basic criteria which 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) collectability 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 collectability 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.

 

Stock-based Compensation

 

The Company accounts for all compensation related to stock, options or warrants using a fair value based method whereby compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. The Company uses the Black-Scholes pricing model to calculate the fair value of options and warrants issued to both employees and non-employees. Stock issued for compensation is valued using the market price of the stock on the date of the related agreement.

 

Recent Accounting Pronouncements

 

In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Updates (ASU) 2014-15 requiring an entity’s management to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted.

 

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

 

Not required for a smaller reporting company.

 

  13  

 

 

Item 8. Financial Statements.

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

Board of Directors and Stockholders

MedeFile International, Inc.

Boca Raton, Florida

 

We have audited the accompanying consolidated balance sheets of MedeFile International, Inc. and its subsidiary (collectively, the “Company”) as of December 31, 2016 and 2015, and the related consolidated statements of operations, stockholders’ deficit, and cash flows for the years then ended. These consolidated financial statements are the responsibility of the entity’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

 

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of MedeFile International, Inc. and its subsidiary as of December 31, 2016 and 2015, and the consolidated results of their operations and their cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

 

/s/ MaloneBailey, LLP

www.malonebailey.com

Houston, Texas

April 3, 2017

 

 

F-1
 

 

MedeFile International, Inc.

Consolidated Balance Sheets

 

    December 31,  
    2016     2015  
Assets            
Current assets      
Cash   $ 13,118     $ 38,371  
Accounts receivable     -       4,965  
Merchant services reserve     2,938       2,938  
Total assets   $ 16,056     $ 46,274  
                 
Liabilities and Stockholders’ Deficit                
Current liabilities                
Accounts payable and accrued liabilities   $ 78,865     $ 14,857  
Note payable - related party     334,817       -  
Convertible debenture - related party     17,287       15,681  
Deferred revenues     -       439  
Derivative liability convertible note     12,567       19,067  
Total current liabilities     443,536       50,044  
                 
Stockholders’ deficit                
Preferred stock, $.0001 par value: 10,000,000 authorized, no shares issued and outstanding     -       -  
Common stock, $.0001 par value: 700,000,000 authorized; 28,756,010 and 28,756,010 shares issued and outstanding on December 31, 2016 and December 31, 2015, respectively     2,875       2,875  
Additional paid-in capital     28,504,754       28,504,754  
Accumulated deficit     (28,935,109 )     (28,511,399 )
Total stockholders’ deficit     (427,480 )     (3,770 )
Total liabilities and stockholders’ deficit   $ 16,056     $ 46,274  

 

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

 

  F- 2  

 

 

MedeFile International, Inc.

Consolidated Statements of Operations

 

    Year ended December 31,  
    2016     2015  
Revenue   $ 33,125     $ 45,120  
                 
Cost of revenue                
Loss on write-off of inventory     -       22,228  
Cost of revenue     -       1,183  
                 
Gross profit     33,125       21,709  
                 
Operating expenses                
Selling, general and administrative expenses     448,912       810,582  
Loss on impairment of website     -       182,195  
Depreciation and amortization expenses     -       88,597  
Total operating expenses     448,912       1,081,374  
                 
Loss from operations     (415,787 )     (1,059,665 )
                 
Other income (expenses)                
Interest expense     (14,423 )     (3,566 )
Change in fair value of derivative liabilities     6,500       (61,553 )
Loss on conversion of debt     -       (32,072 )
Total other income (expense)     (7,923 )     (97,191 )
                 
Net loss   $ (423,710 )   $ (1,156,856 )
                 
Net loss per share: basic and dilute   $ (0.01 )   $ (0.04 )
                 
Weighted average share outstanding: basic and diluted     28,756,010       26,793,559  

 

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

 

  F- 3  

 

 

Medefile International, Inc.

Consolidated Statement of Stockholders’ Equity

 

    Preferred     Common Stock     Additional     Common              
    Shares     Par     Shares     Par     Paid-in      Stock     Accumulated        
    Outstanding     Amount     Outstanding     Amount     Capital     Payable     Deficit     Total  
Balance December 31, 2014     -     $ -       11,298,017     $ 1,129     $ 27,451,971     $ 69,920     $ (27,354,543 )   $ 168,477  
                                                                 
Sale of common stock          -       -       13,954,955       1,395       618,605       -       -       620,000  
Stock based compensation     -       -       2,500,000       250       249,750       -       -       250,000  
Stock issued for debt conversion     -       -       900,901       91       71,981       -       -       72,072  
Common stock issued for stock payable     -       -       102,137       10       69,910       (69,920 )     -       -  
Resolution of derivative liabilities     -       -       -       -       42,537       -       -       42,537  
Net loss     -       -       -       -       -       -       (1,156,856 )     (1,156,856 )
Balance December 31, 2015     -     $ -       28,756,010     $ 2,875     $ 28,504,754     $ -     $ (28,511,399 )   $ (3,770 )
                                                                 
Net loss     -       -       -       -       -       -       (423,710 )     (423,710 )
Balance December 31, 2016     -     $ -       28,756,010     $ 2,875     $ 28,504,754     $ -     $ (28,935,109 )   $ (427,480 )

 

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

 

  F- 4  

 

 

MedeFile International, Inc.

Consolidated Statements of Cash Flows

 

    Year ended December 31,  
    2016     2015  
Cash flows from operating activities                
Net income (loss)   $ (423,710 )   $ (1,156,856 )
Adjustments to reconcile net loss to net                
cash used in operating activities:                
Amortization     -       88,597  
Interest expense - discount on convertible debenture     -       -  
Loss on write-off of inventory     -       22,228  
Loss on impairment of website     -       182,195  
Stock based compensation     -       250,000  
Loss on conversion of debt     -       32,072  
Change in fair value of derivative liabilities     (6,500 )     61,553  
Changes in operating assets and liabilities                
Accounts receivable     4,965       461  
Inventory     -       1,184  
Prepaid expense     -       5,709  
Accounts payable and accrued liabilities     64,008       (32,840 )
Accrued interest - convertible debenture     1,606       3,143  
Accrued interest - note payable     12,817       -  
Deferred revenue     (439 )     (245 )
Net cash used in operating activities     (347,253 )     (542,799 )
                 
Cash flows from investing activities                
Website development     -       (5,000 )
Net cash used in investing activities     -       (5,000 )
                 
Cash flow from financing activities                
Proceeds from note pauyable - related party     322,000       -  
Payment on convertible note - related party     -       (70,000 )
Proceeds from common stock subscriptions     -       620,000  
Net cash provided by financing activities     322,000       550,000  
                 
Net increase (decrease) in cash and cash equivalents     (25,253 )     2,201  
Cash and cash equivalents at beginning of period     38,371       36,170  
Cash and cash equivalents at end of period   $ 13,118     $ 38,371  
                 
Supplemental disclosure of cash flow information                
Cash paid for interest   $ -     $ -  
Cash paid for income taxes   $ -     $ -  
                 
Noncash investing and financing activities                
Resolution of derivative liabilities   $ -     $ 42,537  
Common stock issued for stock payable   $ -     $ 69,920  
Stock issued for conversion of debt   $ -     $ 40,000  

 

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

 

  F- 5  

 

 

Medefile International, Inc.

Notes to Consolidated Financial Statements

 

1. BASIS OF PRESENTATION AND NATURE OF BUSINESS OPERATIONS

 

Basis of Presentation

 

The accompanying financial statements present on a consolidated basis the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation

 

Nature of Business Operations

 

Medefile International, Inc. has developed and markets a proprietary, patient-centric, Internet-enabled Personal Health Record (iPHR) system for gathering, digitizing, maintaining, accessing and sharing an individual’s actual medical records. Medefile’s goal is to revolutionize the medical industry by bringing patient-centric 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 patients’ actual past medical records, thereby ensuring the most accurate treatment and services possible while simultaneously reducing redundant procedures.

 

Interoperable with most electronic medical record systems utilized by physician practices, clinics, hospitals and other care providers, the highly secure, feature-rich MedeFile iPHR solution has been designed to gather all of its members’ actual medical records on behalf of each member, and create a single, comprehensive Electronic Health Record (EHR). The member can access his/her records 24-hours a day, seven days a week – or authorize a third party user – on any web-enabled device (PC, cell phone, PDA, e-reader, et al), as well as the portable MedeFile flash drive/keychain or branded UBS-bracelet.

 

By subscribing to the MedeFile system, members empower themselves to take control of their own health and well-being, and empower their healthcare providers to make sound and lifesaving decisions with the most accurate, up-to-date medical information available.  In addition, with MedeFile, members enjoy the peace of mind that comes from knowing that their medical records are protected from fire, natural disaster, document misplacement or the closing of a medical or dental practice.

 

MedeFile believes it enjoys a number of competitive advantages over other firms within the medical records marketplace, including that:

 

● MedeFile has developed products and services geared to the patient, while containing the depth and breadth of information required by treating physicians and medical personnel.
● MedeFile does all the work of collecting and updating medical information on an ongoing basis; our products’ dependence on the patient taking action is minimal – particularly when compared to patient action required to support competing solutions.
● MedeFile provides a complete medical record. Other companies claim complete longitudinal records, but in reality only provide histories (usually completed by the member/patient), which are by no means complete or necessarily accurate records.
● MedeFile provides a coherent mix of services and products that are intended to improve the quality of healthcare by enabling the patient to manage and access the information normally retained by doctors and other care providers.

 

Going Concern

 

The accompanying financial statements have been prepared contemplating a continuation of the Company as a going concern. However, the Company has reported a net loss of $423,710 for the year ended December 31, 2016. During the comparable year ended December 31, 2015, the Company had a net loss of $1,156,856. The Company had an accumulated deficit of $28,935,109 as of December 31, 2016.  The Company has negative working capital of $427,480 as of December 31, 2016.

 

  F- 6  

 

 

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. 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, 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. Currently our operating account is not above the FDIC limit.

 

Advertising

 

The Company follows the policy of charging the costs of advertising to expense as incurred. The Company incurred advertising costs for the year ended December 31, 2016 and 2015 of approximately $0 and $0 respectively.

 

Income Taxes

 

The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

 

The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. A valuation allowance is established against deferred tax assets that do not meet the criteria for recognition. In the event the Company were to determine that it would be able to realize deferred income tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the valuation allowance which would reduce the provision for income taxes.

 

  F- 7  

 

 

The Company follows the accounting guidance which provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. Income tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized initially and in subsequent periods. Also included is guidance on measurement, recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

 

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. 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.

 

Website Development

 

The Company’s policy is to capitalize website development costs at original cost and amortize the balance over the life of the product. The life of website is determined at completion of the project. The Company reviews the amounts capitalized for impairment whenever events or circumstances indicate that the carrying amounts of the assets may not be recoverable. During 2015, all website development costs were impaired resulting in a loss of $182,195.

 

The Company expenses all development 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 on four basic criteria which 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) collectability 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 collectability 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.

 

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.

 

  F- 8  

 

 

Recent Accounting Pronouncements

 

In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Updates (ASU) 2014-15 requiring an entity’s management to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable). The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted.

  

Fair Value of Financial Instruments

 

Cash and Equivalents, Deposits In-Transit, Receivables, Prepaid and Other Current Assets, Accounts Payable, Accrued Salaries and Wages and Other Current Liabilities

 

The carrying amounts of these items approximated fair value.

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, Financial Accounting Standards Board (“FASB”) ASC Topic 820-10-35 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements).

 

Level 1 —Valuations based on quoted prices for identical assets and liabilities in active markets.

 

Level 2 —Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

 

Level 3 —Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

 

The application of the three levels of the fair value hierarchy under Topic 820-10-35 to our assets and liabilities are described below:  

 

    Fair Value Measurements  
    Level 1     Level 2     Level 3     Total  
December 31, 2016:                        
Liabilities                        
Derivative Liability     -       -     $ 12,567     $ 12,567  
Total   $ -     $ -     $ 12,567     $ 12,567  
December 31, 2015:                                
Liabilities                                
Derivative Liability     -       -     $ 19,067     $ 19,067  
Total   $ -     $ -     $ 19,067     $ 19,067  

 

  F- 9  

 

 

Impairment of Long Lived Assets

 

In accordance with Accounting Standards Codification (“ASC”) 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets, long-lived assets to be held and used are analyzed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. ASC 360-10 relates to assets that can be amortized and the life can be determinable. The Company reviews property and equipment and other long-lived assets for impairment annually, or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparison of the asset’s carrying amount to future undiscounted net cash flows the assets are expected to generate. Cash flow forecasts are based on trends of historical performance and management’s estimate of future performance, giving consideration to existing and anticipated competitive and economic conditions. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the projected discounted future cash flows arising from the assets or their fair values, whichever is more determinable.

 

Inventory

 

Inventories are stated at the lower of cost or market value. Cost is determined by the first-in, first-out basis and market being determined as the lower of replacement cost or net realizable value. The Company records inventory write-downs for estimated obsolescence of unmarketable inventory based upon assumptions about future demand and market conditions. For the year ended December 31, 2015 the Company had an inventory write off of $22,228.  

 

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.

 

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

 

The Company accounts for all compensation related to stock, options or warrants using a fair value based method whereby compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. The Company uses the Black-Scholes pricing model to calculate the fair value of options and warrants issued to both employees and non-employees. Stock issued for compensation is valued using the market price of the stock on the date of the related agreement.

 

2.  ACCOUNTS RECEIVABLE

 

Due to the collection history of the Company, the Company does not maintain an allowance for doubtful accounts. Recognition of a specific uncollectible account is written directly against the invoice in accounts receivable and expensed in the current period.

 

3. WEBSITE DEVELOPMENT

 

Website development consists of the following:

 

    December 31,
2016 		    December 31,
2015 		 
Website development   $       -     $ 328,738  
Additional development     -       5,000  
Impairment of website     -       (182,195 )
Accumulated amortization     -       (151,543 )
Net website development   $ -     $ -  

  

During May 2012 the Company began redesigning its website.  Amortization is calculated over a three-year period. Amortization expense for the year ending December 31, 2016 and 2015 is $0 and $88,597, respectively. The Company recognized an impairment of the website in the amount of $182,195, as of December 31, 2015.

 

  F- 10  

 

 

4. FURNITURE AND EQUIPMENT

 

Furniture and equipment consists of the following:

 

    December 31,
2016 		    December 31,
2015 		 
Computers and equipment   $ 169,286     $ 169,286  
Furniture and fixtures     38,618       38,618  
Subtotal     207,904       207,904  
Less: accumulated depreciation     (207,904 )     (207,904 )
Net furniture and equipment   $ -     $ -  

 

Depreciation is calculated by using the straight-line method over the estimated useful life.  Depreciation expense totaled $0 and $0 for the year ended December 31, 2016 and 2015, respectively.

 

5. NOTE PAYABLE – RELATED PARTY

 

During the year ended December 31, 2016, the Company entered into eight unsecured 7% Promissory Notes with a significant shareholder. The notes mature four to twelve months from issuance and total $222,000.

 

The changes in notes payable to related party consisted of the following during the nine months ended September 30, 2016:

 

    December 31,
2016 		 
Notes payable – related party at beginning of period   $ -  
Borrowings on notes payable – related party     222,000  
Accumulated interest     9,569  
Notes payable – related party at end of period   $ 231,569  

 

On July 15, 2016, the Company entered into an unsecured 7% Promissory Notes in the amount of $100,000 with a significant shareholder. The note has a one year term.

 

The changes in notes payable consisted of the following during the year ended December 31, 2016:

 

    December 31,
2016 		 
Notes payable at beginning of period   $ -  
Borrowings on notes payable     100,000  
Accumulated interest     3,248  
Notes payable at end of period   $ 103,248  

 

6. CONVERTIBLE DEBENTURE – RELATED PARTY

 

The Company entered into two 10% Secured Convertible Debentures with a significant shareholder. The debentures carry a one year term. The debentures were issued in the amount of $50,000 on November 4, 2013 and $60,000 on December 17, 2013. Both debentures are convertible into common stock at a conversion price of the lower of $1.00 or 80% of the previous day’s closing price. The Company recognized a beneficial conversion feature (BCF) due to the intrinsic value of the conversion rate compared to the market price of the common stock as of the grant date. A discount is computed based on the share value at the time of issuance and amortized over the period of the debenture. $40,000 of the note has been converted and$70,000 has been repaid.

 

    December 31,
2016 		    December 31,
2015 		 
Convertible debenture – related party   $ 15,681     $ 122,538  
Conversion     -       (40,000 )
Repayment     -       (70,000 )
Accumulated Interest     1,606       3,143  
Convertible debenture, net of BCF   $ 17,287     $ 15,681  

 

  F- 11  

 

 

7. DERIVATIVE LIABILITIES

 

In connection with certain securities purchase agreements entered into during the third quarter of 2011 and the second quarter of 2012, the Company granted warrants with ratchet provisions. The warrants expired four years from the date of grant. During the first two years of grant, if the Company were to issue any additional shares of common stock at a price per share less than the exercise price in effect, the exercise price would be adjusted to equal the average price per share received by the Company for the additional shares issued. After the first two years following the issuance date, if the Company were to issue any additional shares of common stock at a price per share less than the exercise price in effect, the exercise price would be adjusted using a formula based on the existing exercise price, the outstanding shares before and after the issuance of such shares, and the average price during the issuance of such shares. In addition to the exercise price adjustment, the number of shares upon exercise of the warrants was also subject to adjustment.

 

Upon grant, the Company assesses the fair value of the warrants using the Black Scholes pricing model and records a warrant liability for the value. The Company then assesses the fair value of the warrants quarterly based on the Black Scholes Model and increases or decreases the warrant liability to the new value, and records a corresponding gain or loss (see below for variables used in assessing the fair value).

 

Due to the ratchet provisions, the Company treats the warrants as a derivative liability in accordance with the provisions of ASC 815 “Derivatives and Hedging” (ASC 815). ASC 815 applies to any freestanding financial instruments or embedded features that have the characteristics of a derivative and to any freestanding financial instruments that potentially settle in an entity’s own common stock.

 

All remaining warrants have expired. Transactions involving warrants with ratchet provisions during the year ended December 31, 2016 and 2015 are as follows:

 

    Number of Warrants     Weighted-Average Price Per Share  
Outstanding at December 31, 2014     150,426     $ 10  
Granted                
Exercised                
Canceled or expired     (90,426  )     10   
Additional due to ratchet trigger                
Outstanding at December 31, 2015     60,000       10  
Granted                
Exercised                
Canceled or expired     (60,000)       10  
Addition due to ratchet trigger                
Outstanding at December 31, 2016                    -     $  -  

  

The fair value of the warrant derivative liabilities was estimated using the Black-Scholes Option Pricing Model and the following assumptions as of December 31, 2016 and 2015:

 

    December 31,
2016 		    December 31,
2015 		 
Risk-free interest rate at grant date     0.18 %     0.0 %
Expected stock price volatility     269 %     143.8 %
Expected dividend payout     -       -  
Expected option in life-years     .05       1  

 

  F- 12  

 

 

The change in fair value of the warrant derivative liability consisted of the following during the year ended December 31, 2016 and 2015:

 

    December 31,
2016 		    December 31,
2015 		 
Warrant liability (beginning balance)   $ 1,271     $ 51  
Additional liability due to new grants     -       -  
Loss (gain) on changes in fair market value of warrant liability     (1,271 )     1,220  
       Net warrant liability   $ -     $ 1,271  

 

Change in fair market value of warrant liability resulted in a gain of $1,271 for the year ended December 31, 2016.

 

The Company entered into two 10% Secured Convertible Debentures with a significant shareholder, one in the amount of $50,000 on November 4, 2013 and the other in the amount of $60,000 on December 17, 2013. The debentures carry a one year term. Debentures are convertible into common stock at a conversion price of the lower of $1.00 or 80% of the previous day’s closing price.

 

The Company assesses the fair value of the convertible debenture using the Black Scholes pricing model and records a derivative liability for the value. The Company then assesses the fair value of the warrants quarterly based on the Black Scholes Model and increases or decreases the liability to the new value, and records a corresponding gain or loss (see below for variables used in assessing the fair value).

 

Due to the variable conversion rates, the Company treats the convertible debenture as a derivative liability in accordance with the provisions of ASC 815 “Derivatives and Hedging” (ASC 815). ASC 815 applies to any freestanding financial instruments or embedded features that have the characteristics of a derivative and to any freestanding financial instruments that potentially settle in an entity’s own common stock. The fair value of the conversion options was determined using the Black-Scholes Option Pricing Model and the following significant assumptions during the year ended December 31, 2016 and 2015:

 

    December 31,
2016 		    December 31,
2015 		 
Risk-free interest rate at grant date     0.08 %     0.08 %
Expected stock price volatility     189 %     190 %
Expected dividend payout     -       -  
Expected option in life-years     .2       1  

 

The change in fair value of the conversion option derivative liability consisted of the following during the year ended December 31, 2016 and 2015:

 

    December 31,
2016 		    December 31,
2015 		 
Conversion option liability (beginning balance)   $ 17,796     $                   -  
Additional liability due to new convertible note     -       78,129  
Loss (gain) on changes in fair market value of conversion option liability     (5,229 )     (60,333 )
Net conversion option liability   $ 12,567     $ 17,796  

 

Change in fair market value of conversion option liability resulted in a gain of $5,229 for the year ended December 31, 2016. The change in the fair value for the derivative liability was a loss of $60,333 for the year ended December 31, 2015

 

  F- 13  

 

 

8. EQUITY

 

Common Stock

 

On October 8, 2012, the Company filed a Certificate of Amendment to its Articles of Incorporation with the Secretary of State of Nevada, pursuant to which (i) the Company effected a 5,000-to-1 reverse split of its common stock and (ii) the number of authorized shares of the Company’s common stock decreased from 75,000,000,000 to 100,000,000. The market effective date of the reverse split was October 9, 2012. The effect of the stock split has been applied retroactively. On December 19, 2013 the Company increased its authorized shares of common stock from 100,000,000 to 500,000,000. On February 10, 2015 the Company increased its authorized shares of common stock from 500,000,000 to 700,000,000. On July 6, 2015, the Company effected a 20-to-1 reverse split of its common stock.

 

2015

 

During the first quarter of 2015, the Company issued an aggregate of 13,954,955 shares of common stock to purchasers under the securities purchase agreements entered into by the Company in January and February 2015 for an aggregate price of $620,000, at $0.0445 per share

 

On March 18, 2015 the Company issued 900,901 shares of common stock in exchange for $40,000 of debt owed by the Company. The Company recognized a loss on the conversion of $32,072 and a resolution of derivative liabilities of $42,537 in relation to the derivative for the convertible debt.

 

On May 11, 2015 the Company issued 2,500,000 shares of common stock to its CEO and a consultant for a total expense of stock based compensation of $111,000.

 

During 2015, the Company issued 102,137 common shares for a stock payable.

 

2016

 

No activity.

 

Preferred Stock

 

On April 10, 2012, the Company filed a certificate of designation of Series B Preferred Stock (the “Series B Certificate of Designation”) with the Secretary of State of Nevada, pursuant to which 100,000 shares of the Company’s preferred stock were designated as Series B Convertible Preferred Stock (the “Series B Preferred Stock”). Pursuant to the Series B Certificate of Designation, the Series B Preferred Stock:

 

● Has a liquidation preference over the common stock equal to the stated value of $1.00 per share.
● Votes as a single class with the common stock and entitles its holders, for each share of Series B Preferred Stock, to cast such number of votes equal to 0.00051% of the total number of votes entitled to be cast. Accordingly, a holder of all 100,000 shares of Series B Preferred Stock will have the right to cast 51% of the total number of votes entitled to be cast.
● Will automatically convert into common stock at a ratio of 2 shares of common stock for each share of Series B Preferred Stock, effective upon the Company’s filing of a certificate of amendment to its articles of incorporation.

 

  F- 14  

 

 

On April 12, 2012, the Company entered into a securities purchase agreement with Lyle Hauser (the “Preferred Stock Investor”). Lyle Hauser is the Company’s largest shareholder and the brother of Kevin Hauser, the Company’s then-chief executive officer. Pursuant to the purchase agreement, on April 12, 2012, the Company sold 100,000 shares of Series B Preferred Stock to the Preferred Stock Investor for an aggregate purchase price of $100,000, and the Company issued four-year warrants to purchase 10,000 shares of common stock to the Preferred Stock Investor with an exercise price of $0.50. On April 23, 2012, 100,000 Series B Preferred shares were converted to 10,000 shares of common stock

   

9. TAXES

 

Deferred income taxes are determined using the liability method for the temporary differences between the financial reporting basis and income tax basis of the Company’s assets and liabilities. Deferred income taxes are measured based on the tax rates expected to be in effect when the temporary differences are included in the Company’s tax return. Deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases.

 

The Company is subject to US taxes. Historically, the Company has had no net taxable income, and therefore has paid no income tax.

 

As of December 31, 2016 and 2015, the Company had a net operating loss (NOL) carryforward of approximately $17,535,257 and $17,105,047. The NOL carryforward begins to expire in various years through 2017. Because management is unable to determine that it is more likely than not that the Company will realize the tax benefit related to the NOL carryforward, by having future taxable income, a full valuation allowance has been established at December 31, 2016  to reduce the tax benefit asset value to zero.

 

Components of net deferred tax assets, including a valuation allowance, are as follows at December 31st:

 

    2016     2015  
Deferred tax assets:            
Federal deferred tax assets     6,137,340       5,986,766  
Valuation allowance     (6,137,340 )     (5,986,766 )
Total deferred tax assets   $ -     $ -  

 

The valuation allowance for deferred tax assets as of December 31, 2016 and 2015 was $6,137,340 and $5,986,766, respectively. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined it was more likely than not the deferred tax assets would not be realized as of December 31, 2016 and 2015, and recorded a full valuation allowance.

 

10. RELATED PARTY TRANSACTIONS

 

The Company entered into two 10% Secured Convertible Debentures with a significant shareholder. See Note 5.

 

11. SUBSEQUENT EVENTS

 

None

 

  F- 15  

 

 

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 

None.

 

Item 9A. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act are recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file under the Exchange Act is accumulated and communicated to our management, including our principal executive and financial officers, as appropriate to allow timely decisions regarding required disclosure.

 

As of the end of the period covered by this Annual Report, we conducted an evaluation, under the supervision and with the participation of our Chief Executive Officer (Principal Executive and Financial Officer), of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based upon this evaluation, our Chief Executive Officer (Principal Executive and Financial Officer) concluded that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and also are effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer (Principal Executive and Financial Officer), to allow timely decisions regarding required disclosure.

 

Management’s Report on Internal Control over Financial Reporting

 

Management is responsible for establishing and maintaining adequate internal control over financial reporting of the Company. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.

 

Management, with the participation of our principal executive and financial officer, have evaluated the effectiveness of our internal control over financial reporting as of December 31, 2016 based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013). Based on this evaluation management concluded that, as of December 31, 2016, our internal control over financial reporting is not effective in providing reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles.

 

Management concluded that our internal control over financial reporting is not effective because the following material weaknesses exist:

 

● Our chief executive officer also functions as our chief financial officer.  As a result, our officers may not be able to identify errors and irregularities in the financial statements and reports.
● We were unable to maintain full segregation of duties within our financial operations due to our reliance on limited personnel in the finance function. 
● Documentation of all proper accounting procedures is not yet complete.

 

  14  

 

 

To the extent reasonably possible given our limited resources, we intend to take measures to cure the aforementioned weaknesses, including, but not limited to, the following:

 

● Increasing the capacity of our qualified financial personnel to ensure that accounting policies and procedures are consistent across the organization and that we have adequate control over financial statement disclosures.

 

This annual report does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s independent registered public accounting firm pursuant to rules of the SEC that permit the Company to provide only management’s report in this annual report.

 

Limitations on Effectiveness of Controls and Procedures

 

Our management, including our Chief Executive Officer (Principal Executive and Financial Officer), does not expect that our disclosure controls and procedures or our internal controls will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include, but are not limited to, the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

 

Changes in internal controls

 

There have been no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-15 or 15d-15 under the Exchange Act that occurred during the quarter ended December 31, 2016 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

Item 9B. Other Information.

 

None.

 

  15  

 

 

PART III

 

Item 10. Directors, Officers and Corporate Governance.

 

The following tables set forth certain information with respect to our directors and officers. The following persons serve as our directors and executive officers:

 

Name   Age   Position
Niquana Noel   35   Chairwoman, President and Chief Executive Officer
Michael S. Delin   52   Director
Frank Jakovac   66   Director

 

Our executive officers are appointed by and serve at the discretion of our Board of Directors. There are no family relationships between any director and/or any executive officer.

 

Background of Executive Officers and Directors

 

Niquana Noel has served as Chairwoman, President and Chief Executive Officer of the Company since January 2014. Ms. Noel joined the Company as operations manager in 2008 and served as Chief Operations Officer and director of the Company since August 2013. Previously, Ms. Noel served as the Executive Assistant to a Florida-based serial entrepreneur who had successful business interests ranging from the ownership and operation of cemeteries in Maryland, Virginia and Florida; to the ownership and operation of exotic, high performance car dealerships and auto accessory businesses. Ms. Noel studied Business Management at Florida International University. Ms. Noel’s experience as an executive of the Company qualifies her to serve on the Company’s board of directors.

 

Michael Delin has served on our board of directors since December 2008.  After providing specialty consulting services to the management team, he joined MedeFile’s Board of Directors in December 2008.  Mr. Delin is the sole proprietor and operator of an accounting and tax preparation service.  He is a graduate of the University of South Florida where he earned a Bachelor of Arts degree in Accounting. Mr. Delin’s financial and accounting knowledge and experience qualify him to serve on the Company’s board of directors.

 

Frank Jakovac has served as a director of the Company since August 2013. Mr. Jakovac is Co- Founder of Gateway Global Delivery Inc., a third-party logistics company, and has been its Chairman since 2006. Mr. Jakovac has a B. Sc. Degree from Edinboro University and also serves on its Board of Trustees. Mr. Jakovac’s business executive and management experience qualifies him to serve on the Company’s board of directors.

 

COMMITTEES

 

We currently do not maintain any committees of the Board of Directors. Given our size and the development of our business to date, we believe that the board through its meetings can perform all of the duties and responsibilities which might be contemplated by a committee.  Our board of directors is expected to appoint an audit committee, nominating committee and compensation committee, and to adopt charters relative to each such committee, in the near future. We intend to appoint such persons to the committees of the board of directors as are expected to be required to meet the corporate governance requirements imposed by a national securities exchange, although we are not required to comply with such requirements until we elect to seek listing on a national securities exchange, and we are under no obligation to do so.

 

Except as may be provided in our bylaws, we do not currently have specified procedures in place pursuant to which whereby security holders may recommend nominees to the Board of Directors.

 

  16  

 

 

Board Leadership Structure and Role in Risk Oversight

 

Although we have not adopted a formal policy on whether the Chairwoman and Chief Executive Officer positions should be separate or combined, we have traditionally determined that it is in the best interests of the Company and its shareholders to combine these roles.  Niquana Noel has served as our Chairwoman and Chief Executive Officer since January 2014. We believe it is in the best interest of the Company to have the Chairwoman and Chief Executive Officer roles combined due to our small size and limited resources.

 

Our Board of Directors is primarily responsible for overseeing our risk management processes.  The Board of Directors receives and reviews periodic reports from management, auditors, legal counsel, and others, as considered appropriate regarding our company’s assessment of risks. The Board of Directors focuses on the most significant risks facing our company and our company’s general risk management strategy, and also ensures that risks undertaken by our company are consistent with the Board’s appetite for risk. While the Board oversees our company, our company’s management is responsible for day-to-day risk management processes. We believe this division of responsibilities is the most effective approach for addressing the risks facing our company and that our Board leadership structure supports this approach.

 

CODE OF ETHICS

 

We have adopted a Code of Ethics and Business Conduct that applies to our officers, directors and employees. The Code of Ethics is available on our website found at  www.medefile.com .

 

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

 

Because we do not have a class of equity securities registered pursuant to Section 12 of the Exchange Act, we are not subject to Section 16(a) of the Exchange Act.

 

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Item 11. Executive Compensation.

 

The following table sets forth information concerning the compensation for services in all capacities rendered to us for the two fiscal years ended December 31, 2016 and 2015, of our Chief Executive Officer. There were no other executive officers whose total annual compensation exceeded $100,000 during the years ended December 31, 2016 and 2015.

 

SUMMARY COMPENSATION TABLE

 

Name and
Principal
Position 		  Year     Salary
($) 		    Bonus
($) 		    Stock
Awards
($) 		    Option
Awards
($) 		    Non-Equity
Incentive Plan
Compensation
($) 		    Nonqualified
Deferred
Compensation
Earnings
($) 		    All Other
Compensation
($) 		    Total
($) 		 
                                                       
Niquana Noel     2015       100,000          -          -           -           -            -            -       100,000  
President and CEO     2016       96,000       -       -       -       -       -       -       96,000  

 

Outstanding Equity Awards at Fiscal Year-End as of December 31, 2016

 

None.

 

Director Compensation for Year Ending December 31, 2016

 

The following table sets forth director compensation for the year ended December 31, 2016 (excluding compensation to our executive officers set forth in the summary compensation table above).

 

Name     Fees Earned
or Paid in
Cash
($)(1) 		      Stock
Awards
($) 		      Option
Awards
($) 		      Non-Equity
Incentive Plan
Compensation
($) 		      Nonqualified
Deferred
Compensation
Earnings
($) 		      All Other
Compensation
($) 		      Total
($) 		 
Niquana Noel     -       -       -       -       -       -       -  
Frank Jacovac     -       -       -       -       -       -       -  
Michael Delin (1)     -       -       -       -       -       -       -  

 

(1) Does not include $22,500 for accounting services performed for the fiscal year 2016 through a company solely owned by Michael Delin.

 

EMPLOYMENT AGREEMENTS

 

We are not party to any employment agreements.

 

Risk Management

 

The Company does not believe risks arising from its compensation policies and practices for its employees are reasonably likely to have a material adverse effect on the Company.

 

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LONG TERM INCENTIVES

  

STOCK INCENTIVE PLANS

 

2008 Amended and Restated Incentive Stock Plan

 

The 2008 Plan, as amended, reserved 150,000 shares of common Stock for issuance. Under the 2008 Plan, options may be granted which are intended to qualify as Incentive Stock Options (“ISOs”) under Section 422 of the Internal Revenue Code of 1986 (the “Code”) or which are not (“Non-ISOs”) intended to qualify as Incentive Stock Options thereunder. In addition, direct grants of stock or restricted stock may be awarded.

 

Purpose . The primary purpose of the 2008 Plan is to attract and retain the best available personnel in order to promote the success of our business and to facilitate the ownership of our stock by employees and others who provide services to us.

 

Administration . The 2008 Plan is administered by our Board of Directors, as the Board of Directors may be composed from time to time. Notwithstanding the foregoing, the Board of Directors may at any time, or from time to time, appoint a committee of at least two members of the Board of Directors, and delegate to the committee the authority of the Board of Directors to administer the 2008 Plan. Upon such appointment and delegation, the committee shall have all the powers, privileges and duties of the Board of Directors, and shall be substituted for the Board of Directors, in the administration of the 2008 Plan, subject to certain limitations.

 

Eligibility .  Under the 2008 Plan, options may be granted to key employees, officers, directors or consultants of the Company.

 

Terms of Options . The term of each option granted under the 2008 Plan shall be contained in a stock option agreement between the optionee and the Company and such terms shall be determined by the Board of Directors consistent with the provisions of the 2008 Stock Plan, including the following:

 

(a) Purchase Price . The purchase price of the common stock subject to each incentive stock option shall not be less than the fair market value (as set forth in the 2008 Plan), or in the case of the grant of an incentive stock option to a principal stockholder, not less than 110% of fair market value of such common stock at the time such option is granted. The purchase price of the common stock subject to each non-incentive stock option shall be determined at the time such option is granted, but in no case less than 85% of the fair market value of such common stock at the time such option is granted;

 

(b) Vesting . The dates on which each option (or portion thereof) shall be exercisable and the conditions precedent to such exercise, if any, shall be fixed by the Board of Directors, in its discretion, at the time such option is granted. All options or grants which include a vesting schedule will vest in their entirety upon a change of control transaction as described in the 2008 Plan; 

 

(c) Expiration . The expiration of each option shall be fixed by the Board of Directors, in its discretion, at the time such option is granted; however, unless otherwise determined by the Board of Directors at the time such option is granted, an option shall be exercisable for ten years after the date on which it was granted, or five years for grants to certain executive officers. Each option shall be subject to earlier termination or repurchase as expressly provided in the 2008 Plan or as determined by the Board of Directors, in its discretion, at the time such option is granted;

  

(d) Transferability . No option shall be transferable, except by will or the laws of descent and distribution, and any option may be exercised during the lifetime of the optionee only by such optionee. No option granted under the 2008 Plan shall be subject to execution, attachment or other process;

 

(e) Option Adjustments. The aggregate number and class of shares as to which options may be granted under the 2008 Plan, the number and class shares covered by each outstanding option and the exercise price per share thereof (but not the total price), and all such options, shall each be proportionately adjusted for any increase decrease in the number of issued common stock resulting from split-up spin-off or consolidation of shares or any like Capital adjustment or the payment of any stock dividend; and

 

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(f) Termination, Modification and Amendment . The 2008 Plan (but not options previously granted under the plan) shall terminate ten years from the date of its adoption by the Board of Directors, and no option or shares shall be granted after termination of the 2006 Incentive Stock Plan. Subject to certain restrictions, the 2008 Plan may at any time be terminated and from time to time be modified or amended by the affirmative vote of the holders of a majority of the outstanding shares of the capital stock of the Company present, or represented, and entitled to vote at a meeting duly held in accordance with the applicable laws of the State of Nevada.

 

2010 Incentive Stock Plan

 

The 2010 Plan has initially reserved 66,000 shares of common Stock for issuance. Under the 2010 Plan, options may be granted which are intended to qualify as Incentive Stock Options (“ISOs”) under Section 422 of the Internal Revenue Code of 1986 (the “Code”) or which are not (“Non-ISOs”) intended to qualify as Incentive Stock Options thereunder. In addition, direct grants of stock or restricted stock may be awarded.

 

Purpose . The primary purpose of the 2010 Plan is to attract and retain the best available personnel in order to promote the success of our business and to facilitate the ownership of our stock by employees and others who provide services to us.

 

Administration . The 2010 Plan is administered by our Board of Directors, as the Board of Directors may be composed from time to time. Notwithstanding the foregoing, the Board of Directors may at any time, or from time to time, appoint a committee of at least two members of the Board of Directors, and delegate to the committee the authority of the Board of Directors to administer the 2010 Plan. Upon such appointment and delegation, the committee shall have all the powers, privileges and duties of the Board of Directors, and shall be substituted for the Board of Directors, in the administration of the 2010 Plan, subject to certain limitations.

 

Eligibility . Under the 2010 Plan, options may be granted to key employees, officers, directors or consultants of the Company.

 

Terms of Options . The term of each option granted under the 2010 Plan shall be contained in a stock option agreement between the optionee and the Company and such terms shall be determined by the Board of Directors consistent with the provisions of the 2008 Stock Plan, including the following:

 

(a) Purchase Price . The purchase price of the common stock subject to each incentive stock option shall not be less than the fair market value (as set forth in the 2010 Plan), or in the case of the grant of an incentive stock option to a principal stockholder, not less than 110% of fair market value of such common stock at the time such option is granted. The purchase price of the common stock subject to each non-incentive stock option shall be determined at the time such option is granted, but in no case less than 85% of the fair market value of such common stock at the time such option is granted;

 

(b) Vesting . The dates on which each option (or portion thereof) shall be exercisable and the conditions precedent to such exercise, if any, shall be fixed by the Board of Directors, in its discretion, at the time such option is granted. All options or grants which include a vesting schedule will vest in their entirety upon a change of control transaction as described in the 2010 Plan;

 

(c) Expiration . The expiration of each option shall be fixed by the Board of Directors, in its discretion, at the time such option is granted; however, unless otherwise determined by the Board of Directors at the time such option is granted, an option shall be exercisable for ten years after the date on which it was granted, or five years for grants to certain executive officers. Each option shall be subject to earlier termination or repurchase as expressly provided in the 2010 Plan or as determined by the Board of Directors, in its discretion, at the time such option is granted;

 

(d) Transferability . No option shall be transferable, except by will or the laws of descent and distribution, and any option may be exercised during the lifetime of the optionee only by such optionee. No option granted under the 2010 Plan shall be subject to execution, attachment or other process;

 

(e) Option Adjustments. The aggregate number and class of shares as to which options may be granted under the 2010 Plan, the number and class shares covered by each outstanding option and the exercise price per share thereof (but not the total price), and all such options, shall each be proportionately adjusted for any increase decrease in the number of issued common stock resulting from split-up spin-off or consolidation of shares or any like Capital adjustment or the payment of any stock dividend; and

 

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(f) Termination, Modification and Amendment . The 2010 Plan (but not options previously granted under the plan) shall terminate ten years from the date of its adoption by the Board of Directors, and no option or shares shall be granted after termination of the 2006 Incentive Stock Plan. Subject to certain restrictions, the 2010 Plan may at any time be terminated and from time to time be modified or amended by the affirmative vote of the holders of a majority of the outstanding shares of the capital stock of the Company present, or represented, and entitled to vote at a meeting duly held in accordance with the applicable laws of the State of Nevada

 

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

 

The following table sets forth certain information relating to the ownership of common stock by (i) each person known by us be the beneficial owner of more than five percent of the outstanding shares of our common stock, (ii) each of our directors, (iii) each of our named executive officers, and (iv) all of our executive officers and directors as a group. Unless otherwise indicated, the information relates to these persons, beneficial ownership as of March 13, 2017.  Except as may be indicated in the footnotes to the table and subject to applicable community property laws, each person has the sole voting and investment power with respect to the shares owned.

 

Name of Beneficial Owner   Common Stock
Beneficially Owned(1) 		    Percentage of Common Stock (2)  
             
Lyle Hauser(3)     7,317,727       25.4 %
Frank Jakovac     -       -  
Michael S. Delin     -       -  
Niquana Noel     2,250,000       7.8 %
All officers and directors as a group (3 persons)     2,250,000       7.8 %

 

(1) Applicable percentage ownership is based on 28,756,010 shares of common stock outstanding as of March 13, 2017, together with securities exercisable or convertible into shares of common stock within 60 days of March 13, 2017 for each stockholder. Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and generally includes voting or investment power with respect to securities. Shares of common stock that are currently exercisable or exercisable within 60 days of March 13, 2017 are deemed to be beneficially owned by the person holding such securities for the purpose of computing the percentage of ownership of such person, but are not treated as outstanding for the purpose of computing the percentage ownership of any other person.

 

(2) Lyle Hauser owns 7,316,793 shares in his individual capacity and 934 shares through Vantage Holding Ltd. Lyle Hauser is the owner of The Vantage Group Ltd. and Vantage Holding Ltd.

 

Item 13. Certain Relationships and Related Transactions, and Director Independence.

 

Certain Relationships and Related Transactions

 

During the year ended December 31, 2016, the Company issued eight unsecured 7% promissory notes to Lyle Hauser, the Company’s largest shareholder, in the aggregate principal amount of $220,000. The notes mature four to twelve months from issuance.

 

The Company engages a consulting company owned by Michael Delin, a director of the Company. During the years ended December 31, 2016 and 2015, the Company paid $22,500 and $21,000 to this company for services provided.

 

Director Independence

 

None of our directors is independent as term is defined under the Nasdaq Marketplace Rules.

 

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Item 14. Principal Accounting Fees and Services.

 

The following table shows the fees that were billed to the Company by its independent auditor for professional services rendered in 2016 and 2015.

 

    2016     2015  
             
Audit Fees   $ 20,000     $ 8,000  
Audit Related Fees     -       -  
Tax Fees     -       -  
All Other Fees     -       -  
Total Fees   $ 20,000     $ 8,000  

 

Audit fees.  Audit fees represent fees for professional services performed by Malone Bailey for the audit of our annual financial statements and the review of our quarterly financial statements, as well as services that are normally provided in connection with statutory and regulatory filings or engagements.

 

Audit-related fees.  Audit-related fees represent fees for assurance and related services performed by Malone Bailey that are reasonably related to the performance of the audit or review of our financial statements.

 

Tax Fees. Malone Bailey did not perform any tax compliance services for us during the years ended December 31, 2016 or 2015.

 

All other fees.  Malone Bailey did not receive any other fees from us for the years ended December 31, 2016 or 2015.

 

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Item 15. Exhibits.

 

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. (incorporated by reference to the Company’s Current Report on Form 8-K filed on November 3, 2005).
     
3.1   Articles of Incorporation (incorporated by reference to the Company’s Annual Report on Form 10-KSB filed on April 17, 2006).
     
3.2   Bylaws of the Issuer (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 (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. (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. (incorporated by reference to the Company’s Current Report on Form 8-K filed on January 18, 2006).
     
3.6   Certificate of Designation of Series A Preferred (incorporated by reference to the Company’s Current Report on Form 8-K filed on January 16, 2009).
     
3.7   Certificate of Amendment to Articles of Incorporation, filed January 21, 2009 (incorporated by referenced to the Company’s Form 8-K filed on January 23, 2009)
     
3.8   Certificate of Amendment to Articles of Incorporation filed April 13, 2010 (incorporated by reference to10-K/A filed July 15, 2011)
     
3.9   Certificate of Amendment to Articles of Incorporation filed July 20, 2010 (incorporated by reference to10-K/A filed July 15, 2011)
     
3.10   Certificate of Designation of Series B Convertible Preferred Stock filed April 10, 2012 (incorporated by reference to10-K/A filed April 16, 2012)
     
3.11   Certificate of Amendment to Articles of Incorporation filed October 2, 2012 (incorporated by reference to8-K filed October 9, 2012)
     
3.12   Certificate of Amendment to Articles of Incorporation filed December 19, 2015 (incorporated by reference to 8-K filed December 26, 2013)
     
3.12   Certificate of Amendment to Articles of Incorporation filed February 13, 2013 (incorporated by reference to 8-K filed February 17, 2015)
     
3.13   Certificate of Amendment to Articles of Incorporation filed February 13, 2013 (incorporated by reference to 8-K filed July 13, 2015)

 

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10.1   Securities Purchase Agreement, dated April 14, 2013 (incorporated by reference to 8-K filed on April 18, 2013)
     
10.2   Stock Purchase Warrant, dated April 14, 2013 (incorporated by reference to 8-K filed on April 18, 2013)
     
10.3   Securities Purchase Agreement, dated December 23, 2013 (incorporated by reference to 8-K filed December 26, 2013)
     
10.4   Note, dated December 26, 2013 (incorporated by reference to 8-K filed on December 26, 2013)
     
10.5   Amendment No. 1 to Lock-Up Agreement, dated December 23, 2013 (incorporated by reference to 8-K filed on December 26, 2013)
     
10.6   Securities Purchase Agreement, dated July 1, 2014 (incorporated by reference to 8-K filed July 17, 2014)
     
10.7   Form of Securities Purchase Agreement (incorporated by reference to 8-K filed March 19, 2015)
     
16.1   Letter from L.L Bradford & Company, LLC (incorporated by reference to 8-K filed March 2, 2015)
     
16.2   Letter from RBSM LLP (incorporated by reference to 8-K filed March 21, 2016)
     
31.1   Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
32.1   Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
EX-101.INS   XBRL INSTANCE DOCUMENT
     
EX-101.SCH   XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT
     
EX-101.CAL   XBRL TAXONOMY EXTENSION CALCULATION LINKBASE
     
EX-101.DEF   XBRL TAXONOMY EXTENSION DEFINITION LINKBASE
     
EX-101.LAB   XBRL TAXONOMY EXTENSION LABELS LINKBASE
     
EX-101.PRE   XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE

 

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SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) 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.

 

  MEDEFILE INTERNATIONAL, INC.
     
Date:  April 3, 2017 By: /s/ Niquana Noel
    Niquana Noel
    President and Chief Executive Officer
(principal executive, financial and accounting officer)

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

SIGNATURE   TITLE   DATE
         
/s/ Niquana Noel   President, Chief Executive Officer and Director   April 3, 2017
Niquana Noel   (Principal Executive, Financial and Accounting Officer)    
         
/s/ Michael S. Delin   Director   April 3, 2017
Michael S. Delin        
         
/s/ Frank Jakovac   Director   April 3, 2017
Frank Jakovac        

 

 

25