Utah
|
75-2263732
|
(State
of other jurisdiction of incorporation or organization)
|
(IRS
Employer Identification Number)
|
ASSETS
|
July
31
|
January
31
|
|
2006
|
2006
|
||
Current
assets
|
----------
|
-----------
|
|
Cash
|
$
2,264
|
$
65,109
|
|
Accounts
receivable, net of allowance for bad debts of $36,422 and
$36,566
|
401,557
|
416,944
|
|
|
|||
Inventory
|
55,865
|
187,166
|
|
Other
|
66,070
|
49,821
|
|
----------
|
-----------
|
||
Total
current assets
|
525,756
|
719,040
|
|
Equipment,
net of accumulated depreciation of $409,740 and $343,402
|
250,240
|
184,615
|
|
-----------
|
-----------
|
||
TOTAL
ASSETS
|
$
775,996
|
$
903,655
|
|
==========
|
==========
|
||
LIABILITIES
AND STOCKHOLDERS’ DEFICIT
|
|||
Current
Liabilities
|
|||
Note
payable to factor
|
$
291,235
|
$
286,103
|
|
Current
portion of notes payable
|
46,946
|
55,244
|
|
Accounts
payable
|
18,973
|
129,005
|
|
Accrued
expenses
|
490,659
|
293,051
|
|
Amounts
payable to stockholder
|
173,127
|
259,268
|
|
Stock
payable
|
-
|
50,000
|
|
-----------
|
-----------
|
||
Total
current liabilities
|
1,020,940
|
1,072,671
|
|
Long-term
portion of notes payable
|
34,738
|
46,001
|
|
-----------
|
-----------
|
||
Total
liabilities
|
1,055,678
|
1,118,672
|
|
-----------
|
-----------
|
||
Commitments
|
-
|
-
|
|
Stockholders’
deficit
|
|||
Series
A convertible preferred stock, $.001 par value; 5,000,000 shares
authorized; 4,184,377 shares and 4,187,977 shares issued and
outstanding
|
4,184
|
4,188
|
|
|
|||
Series
C convertible preferred stock, $.001 par value; 30,000 shares authorized;
22,000 shares and 0 shares issued and outstanding
|
22
|
-
|
|
|
|||
Common
stock, $.01 par value; 100,000,000 shares authorized; 5,294,686 shares
and
5,110,686 shares issued and outstanding
|
52,947
|
51,107
|
|
|
|||
Additional
paid in capital
|
5,796,850
|
5,545,711
|
|
Accumulated
deficit
|
(5,819,462)
|
(5,674,897)
|
|
Accumulated
other comprehensive loss
|
(314,223)
|
(141,126)
|
|
-----------
|
-----------
|
||
Total
stockholders’ deficit
|
(279,682)
|
(215,017)
|
|
-----------
|
-----------
|
||
TOTAL
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
$
775,996
|
$
903,655
|
|
==========
|
==========
|
<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /> |
Three Months Ended |
Six Months Ended |
||
|
2006
|
2005
|
2006
|
2005
|
|
----------
|
----------
|
----------
|
----------
|
Revenue
|
|
|
|
|
-
Equipment rentals and
sales
|
$
590,293
|
$
617,333
|
$1,041,953
|
$1,053,021
|
-
Other
|
4,404
|
10,507
|
10,185
|
19,003
|
|
----------
|
----------
|
----------
|
----------
|
|
|
|
|
|
Total
revenues
|
594,697
|
627,840
|
1,052,138
|
1,072,024
|
|
----------
|
----------
|
----------
|
----------
|
|
|
|
|
|
Cost
of sales
|
146,556
|
159,486
|
236,817
|
287,490
|
General
and
administrative
|
493,077
|
389,363
|
866,395
|
757,251
|
Depreciation
|
43,128
|
42,467
|
83,234
|
59,870
|
|
----------
|
----------
|
----------
|
----------
|
|
|
|
|
|
Total operating expenses
|
682,761
|
591,316
|
1,186,446
|
1,104,611
|
|
----------
|
----------
|
----------
|
----------
|
|
|
|
|
|
Net
operating income
(loss)
|
(88,064)
|
36,524
|
(134,308)
|
(32,587)
|
|
|
|
|
|
Equity
in earnings
of
|
|
|
|
|
recruitment services
|
-
|
(60,346)
|
-
|
(43,618)
|
Interest
income
|
-
|
372
|
-
|
372
|
Interest
expense
|
(6,412)
|
(10,504)
|
(10,262)
|
(19,474)
|
|
----------
|
----------
|
----------
|
----------
|
|
|
|
|
|
Net
loss
|
$
(94,476)
|
$
(33,954)
|
$
(144,570)
|
$
(95,307)
|
|
==========
|
==========
|
==========
|
==========
|
|
|
|
|
|
Basic
and diluted
loss
|
|
|
|
|
per
share
|
$
(0.02)
|
$
(0.11)
|
$
(0.03)
|
$
(0.17)
|
|
|
|
|
|
Weighted
average
shares
|
|
|
|
|
outstanding
|
5,147,899
|
310,698
|
5,147,899
|
547,535
|
|
Six
Months
Ended
|
|
|
2006
|
2005
|
|
|
|
Cash
Flows
from Operating Activities
|
|
|
Net
loss
|
$
(144,570)
|
$
(95,307)
|
Adjustments
to reconcile net loss
to net cash
|
|
|
used
in operating
activities:
|
|
|
Bad
debt
expense
|
24
|
-
|
Depreciation
|
83,234
|
59,870
|
Imputed
interest on shareholder notes payable
|
342
|
14,273
|
Changes
in:
|
|
|
Accounts
receivable
|
36,863
|
(170,260)
|
Inventory
|
140,953
|
61,930
|
Other
current
assets
|
(13,680)
|
(13,538)
|
Accounts
payable
|
(116,682)
|
(45,442)
|
Accrued
expenses
|
182,154
|
(68,304)
|
|
|
|
Net
Cash Provided by
/
|
|
|
(Used
in) Operating
Activities
|
168,638
|
(256,778)
|
|
||
|
|
|
Cash
Flows
Used in Investing Activities
|
|
|
Purchase
of
equipment
|
(139,339)
|
(51,274)
|
|
||
Cash
Flows
From Financing Activities
|
|
|
Proceeds
from exercise of warrants
for stock
|
23,000
|
-
|
Proceeds
from sale of preferred
stock
|
180,000
|
45,000
|
Proceeds
from related party
advances
|
-
|
-
|
Repayments
on related party
advances
|
(99,511)
|
-
|
Repayments
of capital lease
obligations
|
-
|
(7,714)
|
Proceeds
from notes
payable
|
1,239,495
|
154,127
|
Repayments
on notes
payable
|
(1,264,733)
|
(29,274)
|
|
|
|
Net
Cash Provided by Financing
Activities
|
78,251
|
162,139
|
|
||
Currency
translation adjustment
|
(170,395)
|
96,436
|
|
||
|
|
|
Net
change in
cash
|
(62,845)
|
(49,477)
|
Cash
at
beginning of period
|
65,109
|
67,102
|
|
||
|
|
|
Cash
at end
of period
|
$
2,264
|
$
17,625
|
|
|
|
|
|
|
Cash
paid
during the period for:
|
|
|
|
|
|
Interest
|
$
10,262
|
$
25,967
|
Income
Taxes
|
-
|
-
|
|
|
|
Non-cash
investing and financing activities:
|
|
|
|
|
|
Conversion
of common shares to
preferred shares
|
-
|
1,374
|
Conversion
of stock payable to
preferred shares
|
50,000
|
-
|
Traunch
|
Shares
|
Amount
|
Closing
Date
|
1
|
3,600
|
$
45,000
|
May
2, 2005
|
2
|
4,000
|
50,000
|
December
19, 2005
|
3
|
4,800
|
60,000
|
February
7, 2006
|
4
|
9,600
|
120,000
|
May
3, 2006
|
|
|||
Total
|
22,000
|
$
275,000
|
|
|
|
|
Three
Months Ended
|
Six
Months Ended
|
||||||||||||
2005
|
2005
|
2006
|
2005
|
||||||||||
|
|
||||||||||||
Revenue
|
$
|
755,491
|
$
|
529,638
|
$
|
1,328,353
|
$
|
1,065,191
|
|||||
Cost
of recruitment services
|
(612,402
|
)
|
(482,782
|
)
|
(1,088,730
|
)
|
(895,161
|
)
|
|||||
General
and administrative
|
(140,722
|
)
|
(107,202
|
)
|
(238,593
|
)
|
(213,648
|
)
|
|||||
|
|
||||||||||||
Net
income / (loss)
|
2,367
|
(60,346
|
)
|
1,030
|
(43,618
|
)
|
|||||||
|
|
|
|
||||||||||
MediQuip’s
equity in
|
|||||||||||||
Net
income / (loss)
|
$
|
-
|
$
|
(60,346
|
)
|
$
|
-
|
$
|
(43,618
|
)
|
|||
|
|
|
\
|
||||||||||
Three
months ended
|
Three
months ended
|
|
July
31, 2006
|
July
31, 2005
|
|
|
|
|
Equipment
rentals and sales
|
$146,556
24.8%
|
$159,486
25.8%
|
Six
months ended
July
31, 2006
|
Six
months ended
July
31, 2005
|
|
|
|
|
Equipment
rentals and sales
|
$236,817
22.7%
|
$287,490
27.3%
|
(a)
Exhibits
|
Item
Description
|
31.1
|
Certification
Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
31.2
|
Certification
Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
32
|
Certification
Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
906 of
the Sarbanes-Oxley Act of 2002
|