MedLink International (MLKNA)

[Chance To See]

I just received a gracious and helpful e-mail from Jameson Rose. I forgot to ask if I could post his response, so I have paraphrased his answers.

Below is my e-mail with his paraphrased answers, plus a couple of my comments in brackets.

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Hello Mr. Rose,

I am a new shareholder in your company. I left a voicemail message for you on Monday, but I understand you have been out of the office. I thought I would go ahead and send you an e-mail I prepared with my questions.

Question 1. The Series B shares. In the 10Q the same earnings (the $359,493) is shown being applied to both the Series A shares and the Series B shares separately. Somehow that doesn’t seem correct. I know the Series B is traded in Germany for some reason, but I can’t find anything in the 10Q’s and 10K’s which explains how Series B relates to Series A. Can you tell me if the 10Q treatment is correct, and what the characteristics are of the Series B shares?

Answer: He said both classes have the same equity rights but the Class B has no voting rights.

[My comment: It still appears to me that the 10Q is not correct and that both series should not be shown as they are, each getting allocated the same profits. I will have to look at it some more and possibly write to him again about this.]

Question 2. CCHIT certification. I understand the company has CCHIT 08 certification. I assumed that was the most up-to-date available, but I see that NextGen announced last December that they have a “premarket conditional” 2011 CCHIT certification. Has MLKNA applied for that, or is it not applicable to MLKNA?

Answer: He said MLKNA is in the process of getting the 2011 CCHIT certification. He said it was not until earlier this very month that the CCHIT and two other certifying bodies were authorized to proceed with certification. He said MLKNA is ready and they meet all the 2011 requirements. In fact they met most of them in 2008. He explained that a few vendors did get the conditional certification but most did not because it is “a bear,” it is expensive, and those that got the conditional certification have to retest anyway to meet the finalized rules.

http://healthit.hhs.gov/portal/server.pt/community/healthit_hhs_gov__onc-authorized_testing_and_certification_bodies/3120

Question 3. I registered for Mymedlinkchart. A notice popped up saying that I would receive an e-mail to confirm my registration, but I received nothing. I called 888-262-8960 and was told that that number is not in service. Does Mymedlinkchart still exist? It sounds like a good idea.

Answer:
-- He said he would make sure the phone number is updated.
-- He said that Mymedlinkchart does still exist but it’s moving in a new direction as part of a portal that will connect doctors, hospitals, labs, imaging centers, as well as patients. He indicated that it will be “through” a health information exchange. It will give participants the ability to share patient information, which is one of the “meaningful use” requirements, but will also give providers access to various other services and apps. He used the analogy of Salesforce or the iphone, platforms which offer various services and apps on a single platform, but in Medlink's case it is focused on healthcare. He also mentioned that it fits in with the national goal of a national health informationn network.

[My comments:
-- This addresses my question about the company’s vision statement on its website, a question which I didn’t ask. And it brings up new questions, such as how this relates to the basic EHR business. I’m not very familiar with the whole EHR marketplace, so I wonder if their EHR competitors are doing anything similar.
-- I remember that there was a comment in a PR concerning the company's work with the NYC Department of Health concerning the large database they will have.
-- Maybe there will be an official announcement when their website update takes place (see below).]

Question 4. Other assets. This is described in the 10Q as, “Other Assets consists of deferred charges resulting from a consulting advisory agreement dated February 10, 2010.“ Does that mean you did work for a company but did not bill them yet? If you had billed them, I assume this amount would be in Accounts Receivable?

Answer: He said it is essentially a prepaid expense on a 3 year contract.

[My comment. I’ll have to look at this again, and in terms of cash flow. Did they have that much cash to pay out?]

Question 5. Are there plans to bring the website up-to-date? I note that the latest PR is from May.

Answer: He said that the new website is ready and should be going live pretty soon.