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RedShoulder

02/02/14 1:59 PM

#268591 RE: Rawnoc #268590

I saw that in the 10-Q but the reason I asked is that Calif is the only state I saw mentioned specifically in the 10-Q; I assumed that any revenues outside Calif must be minor at this phase of their growth (whatever those services are?).

"Our subsidiary Medex holds two HCO licenses. Through these licenses we cover the entire state of California."

"Through our wholly-owned subsidiary IRC we participate in the business of creating legal agreements for the implementation and administration of Carve-Outs for California employers with collective bargaining units."

However, it does look like expansion is in the works:

"We are currently seeking loan arrangements to supplement our working capital needs to address the extended collection times on these accounts receivables, as well as, the need for additional funds that may be required to expand our business."

"We currently have planned certain capital expenditures during the remainder of fiscal 2013 to accommodate our growth. We do not anticipate this will require us to seek outside sources of funding. We do, however, from time to time, investigate potential opportunities to expand our business either through the creation of new business lines or the acquisition of existing businesses. We have not identified any suitable opportunity at the current time. An expansion or acquisition of this sort may require greater capital resources than we possess. Should we need additional capital resources, we most likely would seek to obtain such through debt and/or equity financing."

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9610553