VIRTUAL MEDICAL CENTRE INC

VIRTUAL MEDICAL CENTRE, INC.
Notes to Consolidated Financial Statements
June 30, 2010 and 2009
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
For the Year Ended
June 30, 2010
For the Year Ended
June 30, 2009
Net Loss (numerator) $ (1,465,928) $ (1,149,232)
Weighted Average Shares Outstanding 62,265,090 57,504,382
Net Loss per common share $ ( 0.02 ) $ ( 0.02 )
Income Taxes
The Company applies ASC 740, Income Taxes, which requires the asset and liability method of accounting for income taxes. The asset and
liability method requires that the current or deferred tax consequences of all events recognized in the financial statements are measured by
applying the provisions of enacted tax laws to determine the amount of taxes payable or refundable currently or in future years. Deferred tax
assets are reviewed for recoverability and the Company records a valuation allowance to reduce its deferred tax assets when it is more likely than
not that all or some portion of the deferred tax assets will not be recovered. ASC 740 requires recognition and measurement of uncertain tax
positions using a “more-likely-than-not” approach, requiring the recognition and measurement of uncertain tax positions.
The Company files income tax returns in the United States and Australia, which are subject to examination by the tax authorities in these
jurisdictions. Generally, the statute of limitations related to the Company’s federal income tax is three years although there are instances where
the statute of limitations is extended or indefinite in Australia
Foreign Currency Translation
The Company’s functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies
are translated in accordance with ASC 830, Foreign Currency Translation Matters , using the exchange rate prevailing at the balance sheet date.
Gains and losses arising on settlement of foreign currency denominated transactions or balances are included in the determination of income.
Foreign currency transactions are primarily undertaken in Australian dollars. The Company has not, to the date of these financials statements,
entered into derivative instruments to offset the impact of foreign currency fluctuations.
Other Comprehensive Income (Loss)
ASC 220, Comprehensive Income establishes standards for the reporting and display of comprehensive loss and its components in the financial
statements. As of June 30, 2010 and 2009, the Company had Other Comprehensive Income (Loss) of $15,235 and ($35,922) respectively. The
losses were primarily attributable to changes in foreign currency rates.
Research and Development Expense
The Company expenses research and development costs during the period incurred. The Company incurred research and development expense
of $925,552 and $770,763 during the years ended June 30, 2010 and 2009, respectively.
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