VIRTUAL MEDICAL CENTRE INC

VIRTUAL MEDICAL CENTRE, INC.
Notes to Consolidated Financial Statements
June 30, 2010 and 2009
As of June 30, 2010, the Company owes an additional $43,308 in loans to shareholders. These loans are unsecured, due upon demand and non
interest bearing.
NOTE 7 – CAPITAL LEASE OBLIGATIONS
The Company leases a motor vehicle under a finance lease agreement with monthly payments due of $1,482. The liability bears interest at 8.5%
and matures in June 2012. Minimum principle payments under capital lease obligations are as follows:
2011 $ 13,387
2012 13,358
NOTE 8 – CAPITAL STOCK
The Company’s current authorized capitalization consists of 200,000,000 shares of common stock, $0.001 par value. At June 30, 2010, the total
issued and outstanding common shares were 84,253,764.
During the year ended June 30, 2010, the Company issued 1,162,595 shares of its no par value common stock for net proceeds of $184,716 in
cash. In addition the Company issued 565,375 common shares in exchange for services valued at $79,803.
On May 27, 2010, the Company entered into the Exchange Agreement, as described above. In accordance with the terms of the Exchange
Agreement, the Company issued 71,471,764 Cliff Rock Shares, to the VMC Shareholders, which constitutes approximately 84.8% of the postexchange
issued and outstanding Cliff Rock Shares. Prior to the Closing Date, the Company cancelled 32,500,000 shares of its common
stock. As a result, on the Closing Date, 84,253,764 Cliff Rock Shares were issued and outstanding, including the issuance of 71,471,764 Cliff
Rock Shares in connection with the Exchange Agreement.
NOTE 9 – INCOME TAXES
Total $ 26,745
The Company provides for income taxes under ASC 740, Income Taxes. ASC 740 requires the use of an asset and liability approach in
accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax
bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse. ASC 740 requires the reduction of
deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the
deferred tax assets will not be realized.
The Company is subject to income taxes under the laws of Australia. The provision for income taxes differs from the amounts which would be
provided by applying the statutory Australian federal income tax rate of 30% to the net loss before provision for income taxes for the following
reasons:
June 30, June 30,
2010
2009
Income tax expense at statutory rate $ (439,778) $ (344,770)
Change in valuation allowance 439,778 344,770
Income tax expense $ - $ -
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