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Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2011	Dec. 31, 2010
Current assets:
Allowances	$ 19,200	$ 19,200
Stockholders' deficit:
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	650,000,000	650,000,000
Common stock, shares issued	293,454,717	238,893,492
Common stock, shares outstanding	293,454,717	238,893,492

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Statements of Operations (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Revenues
Subscriber	$ 64,637	$ 87,346	$ 126,296	$ 177,510
MMR Pro	101,000	108,636	111,322	108,636
License fees - biotech	0	115	500,000	115
Total revenues	165,637	196,097	737,618	286,261
Cost of revenues	78,331	160,376	237,764	273,412
Gross profit	87,306	35,721	499,854	12,849
General and administrative expenses	1,053,986	1,154,998	2,061,847	2,374,313
Sales and marketing expenses	658,653	598,871	1,247,649	1,529,003
Technology development	78,602	64,085	163,416	146,224
Loss from operations	(1,703,935)	(1,782,233)	(2,973,058)	(4,036,691)
Change in valuation of derivative liabilities	51,199	(3,961,083)	51,199	(6,129,563)
Interest and other finance charges, net	(724,410)	(2,121,322)	(1,185,679)	(4,161,742)
Net loss	$ (2,377,146)	$ (7,864,638)	$ (4,107,538)	$ (14,327,996)
Net loss available to common shareholders per share:
Basic and Diluted	$ (0.01)	$ (0.04)	$ (0.02)	$ (0.07)
Weighted average common shares outstanding:
Basic and Diluted	267,576,023	212,834,956	254,630,582	200,617,293

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Document and Entity Information (USD $)	6 Months Ended
	Jun. 30, 2011	Jul. 21, 2011	Jun. 30, 2010
Document And Entity Information
Entity Registrant Name	MMRGlobal, Inc.
Entity Central Index Key	0001285701
Document Type	10-Q
Document Period End Date	Jun. 30, 2011
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	No
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 35,498,880
Entity Common Stock, Shares Outstanding		259,233,273
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2011

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EQUITY ISSUANCES - Note 7

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

EQUITY ISSUANCES - Note 7

NOTE 7 - EQUITY ISSUANCES

Stock Option Activity

On January 21, 2010, our Board of Directors approved an increase to the number of shares authorized for issuance under our 2001 Equity Incentive Plan, or the Plan, from 12,000,000 to 27,000,000 shares as we determined that the number of shares remaining under the Plan was not adequate to retain our key directors, executives and managers. our stockholders approved the increase to the Plan on June 15, 2010.

A summary of option activity for the six months ended June 30, 2011 is presented below. Fair value of options granted for the six months ended June 30, 2011 was $60,044. Options granted by MMR prior to the date of the Merger of January 27, 2009 have been retroactively restated to reflect the conversion ratio of MMR to MMRGlobal shares.

				Weighted-
				Average
			Weighted-	Remaining
			Average	Contractual		Aggregate
			Exercise	Life		Intrinsic
	Options		Price	(Years)		Value
Outstanding at December 31, 2010	41,752,121	$	0.12	6.72	$	30,071
Granted	800,000		0.08
Exercised	(433,360)		0.10
Cancelled	(2,304,604)		0.17
Outstanding at June 30, 2011 (unaudited)	39,814,157		0.12		$	-
Vested and expected to vest
at June 30, 2011 (Unaudited)	39,814,157	$	0.12	6.38	$	-
Exercisable at June 30, 2011 (Unaudited)	23,015,876	$	0.13	4.84	$	-

The aggregate intrinsic value in the table above is before applicable income taxes and is calculated based on the difference between the exercise price of the options and the quoted price of the common stock as of the reporting date.

Total stock option expense recorded for the three months ended June 30, 2011 and 2010 amounted to $305,819 and $306,585, respectively. Total stock option expense recorded for the six months ended June 30, 2011 and 2010 amounted to $721,829 and $962,525, respectively.

The following table summarizes information about stock options outstanding and exercisable at June 30, 2011.

		Options Outstanding			Options Exercisable
			Weighted	Weighted		Weighted	Weighted
			Average	Average		Average	Average
	Exercise	Number	Remaining	Exercise	Number	Remaining	Exercise
	Price	of Shares	Life (Years)	Price	of Shares	Life (Years)	Price
$	0.05 - 0.09	1,200,000	6.57	$ 0.08	418,750	5.36	$ 0.09
	0.10 - 0.15	35,165,405	6.39	0.11	19,998,374	4.75	0.12
	> 0.15	3,448,752	6.30	0.19	2,598,753	5.45	0.19
		39,814,157			23,015,876

Warrants

On November 7, 2007, in conjunction with the registered direct offering of an aggregate of 7.4 million shares, we issued warrants to purchase, in the aggregate, up to 4.4 million shares of our common stock at an exercise price of $2.77 per share. These warrants were exercisable as of the date of grant through November 7, 2012. We valued the warrants using a Black-Scholes pricing model. ASC 815-40, Contracts in Entity's Own Equity, requires freestanding contracts that are settled in a company's own stock, including common stock warrants, to be designated as an equity instrument, asset or liability. A contract designated as an asset or a liability must be carried at fair value until exercised or expired, with any changes in fair value recorded in the results of operations. We applied ASC 815-40 to account for the liability as a derivative (please see our Annual Report on Form 10-K for the year ended December 31, 2008, filed on April 15, 2009, for a more detailed discussion). The valuation of these warrants amounted to $0 and $88,997 as of June 30, 2011 and December 31, 2010, respectively.

Immediately prior to the Merger, we issued warrants to acquire in the aggregate 9,999,992 shares of our common stock at an average exercise price of $0.12 per share, which expire on January 26, 2014, to certain former officers, former directors and their affiliates who were willing to take such equity as partial or full payment for outstanding liabilities. These warrants vested immediately and were valued on the date of grant using the Black-Scholes option pricing model. As this transaction occurred immediately prior to the Merger, the resulting gain on the issuance of warrants was reflected in our statement of operations. There is no impact of this transaction recorded on the accompanying consolidated statement of operations for the three and six months ended June 30, 2011.

On January 4, 2011, we granted a warrant to purchase up to 180,000 shares of our common stock to a third-party as payment for services. This warrant has an exercise price of $0.10 per share, with a contractual life through January 4, 2016. From the vesting commencement date, this warrant vests in 6 monthly installments. This warrant had an aggregate value of $14,604, of which $7,302 and $12,170 were recorded as operating expenses during the three and six months ended June 30, 2011, respectively.

On February 15, 2011, we granted a warrant to purchase up to 250,000 shares of our common stock to a third-party as payment for services. This warrant had an exercise price of $0.10 per share, with a contractual life through February 15, 2013. This warrant vests annually over two years and has an aggregate value of $13,464 of which $1,683 was recorded as operating expenses during the three and six months ended June 30, 2011.

On March 3, 2011, we granted a warrant to purchase up to 500,000 shares of our common stock to a third-party. This warrant had an exercise price of $0.10 per share, with a contractual life through March 3, 2013. 35% of the right to purchase shares under the warrant vested after 30 days from the vesting commencement date. Additional 35% of the right to purchase shares under the warrant vested after 60 days from the vesting commencement date. The remaining 30% will vest after 90 days from the vesting commencement date. This warrant had an aggregate value of $22,821, which was recorded as operating expenses during the three and six months ended June 30, 2011.

On April 15, 2011 the Company issued warrants to purchase 938,616 shares of common stock in connection to the issuance of 6% Convertible Promissory Notes with an unrelated third-party for a principal amount of $156,436. The term of the warrants is five years and the exercise price is the lesser of (i) the product of fifty percent (50%) multiplied by the arithmetic average of the volume-weighted average trading price of the Common Stock for the ten (10) consecutive trading days ending on the day that is three (3) trading days prior to the applicable exercise date, or (ii) $0.02. This warrant had a bifurcated value of $29,612 and accounted for as a discount on debt. Such discount will be amortized and recorded as interest expense over the life of the notes or at conversion.

On May 20, 2011 the Company issued warrants to purchase an aggregate of 2,710,000 shares of common stock in connection to the issuance of Convertible Promissory Notes with five unrelated third-parties for a principal amount totaling $540,000. The term of the warrants is three years and the exercise price is the product of fifty percent (50%) multiplied by the arithmetic average of the volume-weighted average trading price of the common stock for the ten (10) consecutive trading days ending on the day that is three (3) trading days prior to the investment date. The aggregated value of these warrants amounted to $39,668. On the date of investment, all the aforementioned parties converted their promissory notes and exercised the attached warrants. As a result of the warrant exercise, the $39,668 discount was recorded as interest expense during the three and six months ended June 30, 2011 with an offset to additional paid in capital.

On May 24, 2011 the Company issued warrants to purchase 500,000 shares of common stock in connection to the issuance of 8% Convertible Promissory Notes with an unrelated third-party for a principal amount totaling $100,000. The term of the warrants is three years and the exercise price is the lesser of (i) the product of fifty percent (50%) multiplied by the arithmetic average of the volume-weighted average trading price of the Common Stock for the ten (10) consecutive trading days ending on the day that is three (3) trading days prior to the applicable investment date, or (ii) $0.022. This warrant had a bifurcated value of $6,667 and accounted for as a discount on debt. Such discount will be amortized and recorded as interest expense over the life of the notes or at conversion.

On May 24, 2011 the Company granted 2,796,566 warrants to purchase shares of our common stock to The RHL Group in connection with the Fifth Amended Note (see Note 3). This warrant had an exercise price of $0.051 per share, with a contractual life through May 24, 2016. This warrant vested upon commencement and has an aggregate value of $105,442, which was recorded as interest expenses during the three and six months ended June 30, 2011.

On May 26, 2011 we granted a warrant to purchase 1,000,000 shares of our common stock to a third-party as payment for services. This warrant had an exercise price of $0.051 per share, with a contractual life through May 26, 2012. This warrant will vest upon the closing of a transaction between the Company and a third-party introduced to the Company by such third-party service provider and has an aggregate value of $20,907.

On May 26, 2011 we granted a warrant to purchase 1,000,000 shares of our common stock to a third-party as payment for services. This warrant had an exercise price of $0.051 per share, with a contractual life through May 26, 2012. This warrant vested at commencement and had an aggregate value of $20,907, which was recorded as operating expenses during the three and six months ended June 30, 2011.

On June 1, 2011 we granted a warrant to purchase 75,000 shares of our common stock to a third-party as payment for services. This warrant had an exercise price of $0.06 per share, with a contractual life through June 1, 2012. This warrant vested at commencement and had an aggregate value of $1,048, which was recorded as operating expenses during the three and six months ended June 30, 2011.

On June 1, 2011 we granted a warrant to purchase 1,000,000 shares of our common stock to a third-party as payment for services. This warrant had an exercise price of $0.06 per share, with a contractual life through June 1, 2012. This warrant vested at commencement and had an aggregate value of $13,975, which was recorded as operating expenses during the three and six months ended June 30, 2011.

On June 10, 2011 we granted a warrant to purchase 1,000,000 shares of our common stock to a third-party as payment for services. This warrant had an exercise price of $0.055 per share, with a contractual life through June 10, 2013. This warrant will vest upon the holder generating at least $100,000 in gross revenue from the licensing agreement using the technology of the Company and had an aggregate value of $31,294.

On June 10, 2011 we granted a warrant to purchase 500,000 shares of our common stock to a third-party as payment for services. The first tranche of 250,000 shares had an exercise price of $0.055 per share, and will vest when a licensee generates at least $100,000 in gross revenue from the licensing agreement using the technology of the Company, or in one year, whichever occurs first. The second tranche of 250,000 shares had an exercise price of $0.125 per share, and will vest in one year after the vesting of the first tranche. This warrant had a contractual life through June 10, 2016 and had an aggregate value of $20,102, of which $846 was recorded as operating expenses during the three and six months ended June 30, 2011.

On June 16, 2011 the Company issued a warrant to purchase 140,000 shares of common stock in connection to the issuance of Convertible Promissory Notes with an unrelated third-party for a principal amount of $35,000. The term of the warrant was three years and the exercise price was the lesser of (i) the product of fifty percent (50%) multiplied by the arithmetic average of the volume-weighted average trading price of the Common Stock for the ten (10) consecutive trading days ending on the day that is three (3) trading days prior to the applicable investment date, or (ii) $0.022. This warrant had a bifurcated value of $2,197. On the date of investment, the holder converted the promissory notes and exercised the attached warrants. As a result of the warrant exercise, the $2,197 discount was recorded to interest expense during the three and six months ended June 30, 2011 with an offset to additional paid in capital.

A summary of the activity of the Company's warrants for the six months ended June 30, 2011 is presented below:

			Weighted Avg.
	Shares		Exercise Price
Outstanding at December 31, 2010	46,889,598	$	0.35
Granted	12,590,182		0.05
Exercised	(4,690,000)		0.06
Cancelled	(4,094,288)		3.88
Outstanding at June 30, 2011 (Unaudited)	50,695,492		0.37

The following summarizes the total warrants outstanding and exercisable as of June 30, 2011.

	Warrants Outstanding				Warrants Exercisable
	Warrants	Weighted Avg		Weighted Avg	Warrants	Weighted Avg		Weighted Avg
Ranges	Outstanding	Remaining Life		Exercise Price	Exercisable	Remaining Life		Exercise Price
$0.05 - $0.25	43,829,236	3.02	$	0.11	38,270,665	3.05	$	0.11
$.026 - $2.50	2,166,346	1.84		0.39	2,166,346	1.84		0.39
> $2.50	4,699,910	1.34		2.83	4,699,910	1.34		2.83
	50,695,492				45,136,921

The weighted average fair value of warrants granted during the three and six months ended June 30, 2011 amounted to $0.03 per warrant.

Shares Issued for Services or Reduction to Liabilities

During the six months ended June 30, 2011, we issued 17,091,481 shares of common stock with a value of $1,051,908 to non-employees and charged to the appropriate accounts for the following reasons:

	Six-Months Ended June 30, 2011
Purpose	Shares		Value
Services provided	4,476,850	$	267,630
Reduction of payables	11,864,631		709,278
Capital contribution fund	-		-
Prepaids and other assets	750,000		75,000
Totals	17,091,481	$	1,051,908

The 17,091,481 shares were not contractually restricted; however, as they were unregistered, they are restricted from sale until the requirements of Rule 144 under the Securities Act, as amended, permit such sale. All such shares were issued at the trading closing price on the date of issuance or a higher agreed upon price and such value was calculated therefrom.

Derivative Liabilities

On July 16, 2009, we entered into a 12% Convertible Promissory Note with an unrelated third-party for a principal amount totaling $30,000. Subsequently, we entered into identical 12% Convertible Promissory Notes with four other unrelated third-parties for an additional $530,000. In addition, we granted a total of 3,110,000 warrants to purchase shares of our common stock in connection with these convertible notes at an exercise price equal to the lesser of (i) the product of 50% multiplied by the arithmetic VWAP of the common stock for the 10 consecutive trading days ending on the day that is 3 Trading Days prior to the applicable exercise date or (ii) $0.15. At the time, this resulted in the possibility that we may not have had enough authorized shares to settle these obligations using common stock. Instead, there was the possibility, although remote, that we may have needed to settle one or more of these contracts with cash. Consequently certain non-employee options and warrants were accounted for as derivative liabilities as of July 16, 2009.

The event giving rise to this condition was the first convertible note the Company entered into on July 16, 2009. The condition was remedied on May 5, 2010 when all convertible notes were converted into common stock and all warrants granted in connection with the convertible notes were exercised. On May 5, 2010, we valued these contracts again using the Black-Scholes option valuation model and we recorded the difference between the value at December 31, 2009 of $1,534,824 and the value at May 5, 2010 of $7,448,516, as a loss on change in value of derivatives for the year ended December 31, 2010 of $5,843,735. On May 5, 2010, we reclassified the value of the derivative liabilities back into equity.

We did not designate any of the derivatives liabilities as hedging instruments.

The following is a reconciliation of all derivative liabilities:

Value at December 31, 2010	$	88,997
Change in value of derivative liability		(114,358)
Establishment of derivative liability for change in value of derivative liability		147,057
Reclassification back to equity		(121,696)
Value at June 30, 2011	$	-

The inputs used for the Black-Scholes option valuation model were as follows.

	June 30, 2011	December 31, 2010
	(Unaudited)
Expected life in years	0 - 5 Years	5 - 10 Years
Stock price volatility	147.89% - 148.34%	111.85% - 128.94%
Risk free interest rate	0.03% - 2.14%	2.38% - 3.87%
Expected dividends	None	None
Forfeiture rate	0%	0%

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SUBSEQUENT EVENTS - Note 12

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

SUBSEQUENT EVENTS - Note 12

NOTE 12 - SUBSEQUENT EVENTS

On July 21, 2011, the Company announced that the Company and Unis-Tonghe Technology (Zhengzhou) Co., Ltd., MMR'S Chinese Joint Venture partner, have entered into a series of warrant purchase agreements whereby Unis-Tonghe has the right to purchase up to four (4) million shares of the Company's common stock: one million at 8 cents per share, one million shares at 12 cents per share, one million at 16 cents per share, and one million at 20 cents per share.

 On July 25, 2011, the Company announced the signing of a definitive purchase agreement with Kodak for a customized private label version of Kodak's Scan Station Pro 550 ("the Purchase Agreement"). The Purchase Agreement calls for MMRGlobal to purchase a minimum of 135 MMRPro-ready Scan Station Pro 550's representing approximately three million dollars in MMRPro system sales over the initial term plus the potential of millions more in MMRPro Stimulus Program revenue over additional years.

The Purchase Agreement calls for deliveries starting immediately. The customized product will be manufactured by Kodak exclusively for MMRGlobal and marketed as part of the MMRPro document management and imaging system (www.mmrprovideos.com). The system comes with a version of KODAK's Capture Pro Software, which when combined with MMR's proprietary healthcare software platform enables physicians to easily and cost-effectively digitize, archive and share patient charts.

On August 1, 2011, the Company announced that it had recovered more than 1,000 biological samples from defendants in a lawsuit brought last year by The RHL Group Inc. The RHL Group is a creditor of MMRGlobal and one of the Company's largest shareholders. The Company also announced that on Friday, July 29, 2011, it filed a complaint in Superior Court of the County of Los Angeles against reality television stars Taylor Ford Armstrong and Russell Lynn Armstrong as well as NuWay Digital Systems, Inc. and others (the Armstrongs), seeking liquidated damages of $1,500,000 plus any additional claims for $250,000 each that could surface during the litigation.

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RELATED PARTY NOTE PAYABLE - Note 3

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

RELATED PARTY NOTE PAYABLE - Note 3

NOTE 3 - RELATED PARTY NOTE PAYABLE

On July 31, 2007, MMR entered into a promissory note agreement and a security agreement with The RHL Group, a corporation wholly owned by Robert H. Lorsch, our Chairman, Chief Executive Officer and President, to borrow up to $100,000 under a revolving line of credit. This agreement was subsequently superseded by an amended and restated promissory note on August 23, 2007 under the terms of which the line amount was increased to $1 million. Following the Merger, on April 29, 2009, we agreed to restructure MMR's secured credit facility with The RHL Group and entered into a Secured Credit Restructuring Agreement, or the Restructuring Agreement, with MMR, The RHL Group and Mr. Lorsch. We issued The RHL Group a Third Amended and Restated Note and we agreed to guaranty MMR's obligations under the Third Amended Note. On April 29, 2010, we, The RHL Group and Robert H. Lorsch entered into a Fourth Amended and Restated Secured Promissory Note, or the Fourth Amended Note, and we agreed to guaranty MMR's obligations under the Fourth Amended Note (the "Guaranty"). The Fourth Amended Note amends and restates the April 29, 2009 Third Amended and Restated Secured Promissory Note Agreement. The Fourth Amended Note matures April 29, 2011, and bears interest at the lesser of 10% or the highest rate then permitted by law, and is secured by the Security Agreement. The reserve credit line of the Fourth Amended Noted remained at $3,000,000. In connection with the Fourth Amended Note, The RHL Group received a $200,000 loan origination fee ("Fee") that was due and payable immediately. On October 29, 2010, the Fourth Amended Note was renewed for an additional six-month term and the RHL Group received an additional $200,000 loan origination fee. On May 24, 2011, we entered into a Fifth Amended and Restated Promissory Note, or the Fifth Amended Note. The Fifth Amended Note amended and restated that certain Fourth Amended and Restated Promissory Note by extending the maturity date of the Existing Note for one year to April 29, 2012. In connection with the Fifth Amended Note, and in addition to the Origination Fee, the Company has issued The RHL Group warrants to purchase 2,796,566 shares of the Company common stock at $0.051 per share. On May 26, 2011, the RHL Group elected to exercise its right to convert 1.6 million shares of the Company's stock at $0.125 cents per share which was approximately 300% of the closing market price of that day, in consideration of the loan origination fee. We recorded the loan origination fee as a deferred financing cost and we are amortizing it over the Fifth Amended Note maturity period. As of June 30, 2011, the remaining unamortized origination fee was $166,667.

The RHL Group Note payable had a balance of $1,391,587 at June 30, 2011. The components of the RHL Group Note payable and the related balance sheet presentation as of June 30, 2011 are as follows: $1,266,587, which are included in the Line of Credit, Related Party; and $125,000, which is related to deferred salary and consulting expenses included in Related Party Payables.

Total interest expense on this note for the three months ended June 30, 2011 and 2010 amounted to $34,441 and $30,656, respectively. Total interest expense on this note for the six months ended June 30, 2011 and 2010 amounted to $66,069 and $66,959, respectively. The unpaid interest balance as of June 30, 2011 and December 31, 2010 was $24,577 and $10,262, respectively.

In conjunction with the loan agreement noted above, we were required to maintain certain financial covenants, including the requirement that we have at least $200,000 in cash in our bank accounts or such other amount as necessary to maintain operations through the subsequent thirty (30) days and timely pay any obligations due respecting payroll and all associated payroll taxes on and after June 30, 2011. As of June 30, 2011, we were in compliance with our financial covenants under the terms of the Fifth Amended Note.

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CONVERTIBLE PROMISSORY NOTES - Note 9

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

CONVERTIBLE PROMISSORY NOTES - Note 9

NOTE 9 - CONVERTIBLE PROMISSORY NOTES

On April 15, 2011, the Company issued a Restated Convertible Promissory Note to an unrelated third-party with a principal amount of $167,387 which included a 7% closing discount in the amount of $10,951. This Note replaced and terminated a promissory note originally issued to another unrelated third-party on July 26, 2010 for $150,000 plus accrued interest of $6,436. The Restated Note is convertible at the option of the holder into common stock at a variable conversion price of seventy percent (70%) multiplied by the lower of the arithmetic average of the volume-weighted average trading price (VWAP) of the Common Stock for the ten (10) consecutive trading days ending on the date of the applicable conversion date, or the closing bid on the applicable conversion date. As of June 30, 2011, the conversion price was to be permanently fixed based on the calculation stated above with June 30, 2011 being the 10^th day. The whole note was ratably converted on April 15, May 16, and June 22 into 5,392,679 shares of common stock. The Company recognized $147,057 as interest expense related to these conversions. In addition, the Note was treated as derivative due to the variable nature of the conversion price for the period from April 15 through June 30. As a result, the Company also recognized a loss of $37,798 as a change in derivative liability for the three and six months ended June 30, 2011.

On April 15, 2011 the Company entered into 6% Convertible Promissory Note with an unrelated third-party for a principal amount of $156,436. The Note is convertible at the option of the holder into shares of common stock at a conversion price of seventy percent (70%) multiplied by the arithmetic average of the VWAP of the Common Stock for the ten (10) consecutive trading days ending on the day that is three (3) trading days prior to the investment date, or $0.04. In connection with the Note, the Company also issued a warrant to purchase 938,616 shares of common stock. The term of the warrants is five years and the exercise price is the lesser of (i) the product of fifty percent (50%) multiplied by the arithmetic average of the volume-weighted average trading price of the Common Stock for the ten (10) consecutive trading days ending on the day that is three (3) trading days prior to the investment date, or (ii) $0.02. We derived the fair value of the warrants issued with the Note using the Black-Scholes option valuation model, resulting in a fair value of $29,612. The $156,436 note proceeds were allocated to the relative fair values of the note without the warrants and of the warrants themselves on the investment date. The remainder of the proceeds is allocated to the note portion of the transaction, resulting in a discount. We then calculated the intrinsic value of the conversion feature on the investment date and allocated the portion of the proceeds equal to the intrinsic value of this feature of $102,107 to paid-in capital. We deducted the allocated fair value of the warrants and intrinsic value of the conversion feature from the Notes, resulting in an initial value ascribed to the Notes of $24,717. Both the Notes and warrants are still outstanding as of June 30, 2011.

On May 20, 2011 we entered into Convertible Promissory Notes with five unrelated third-parties for a principal amount totaling $540,000. Under the terms of the agreements, principal amounts owed under the Notes become due and payable six months from the investment date provided that, upon ten (10) days' prior written notice to the Holder, we may, in our sole discretion, extend the maturity date for an additional six months. Some of the Notes bear an interest rate of 6%, and others bear an interest rate of 12% per annum payable in cash or shares of common stock, or a combination of cash and shares of common stock, at the election of the Company. These notes are convertible at the option of the holders into common stock at a fixed conversion price ("Fixed Conversion Price") of seventy percent (70%) multiplied by the arithmetic average of the VWAP of the common stock for the ten (10) consecutive trading days ending on the day that is three (3) trading days prior to the applicable investment date, or $0.031. In connection with the Notes, the Company also issued warrants to purchase an aggregate of 2,710,000 shares of common stock. The term of the warrants is three years and the exercise price is the product of fifty percent (50%) multiplied by the arithmetic average of the volume-weighted average trading price of the common stock for the ten (10) consecutive trading days ending on the day that is three (3) trading days prior to the applicable investment date, or $0.022. We derived the fair value of the warrants issued with Notes using the Black-Scholes option valuation model, resulting in a fair value of $39,668. The $540,000 note proceeds were allocated to the relative fair values of the note without the warrants and of the warrants themselves on the investment date. The remainder of the proceeds is allocated to the note portion of the transaction, resulting in a discount. We then calculated the intrinsic value of the conversion feature on the investment date and allocated the portion of the proceeds equal to the intrinsic value of this feature of $283,539 to paid-in capital. We deducted the allocated fair value of the warrants and intrinsic value of the conversion feature from the Notes, resulting in an initial value ascribed to the Notes of $216,793. The initial value of the Notes is being accreted to their face value over the initial term of the Notes using the interest method. Upon conversion, the entire unamortized discount from the face value of the Notes is recognized as interest expense. As of June 30, 2011, all the Notes issued on May 20, 2011 had been converted and the related warrants are exercised in exchange for 20,129,355 shares of common stock restricted for six months under Rule 144.

On May 24, 2011 the Company entered into 8% Convertible Promissory Note with an unrelated third-party for a principal amount totaling $100,000. Under the terms of the agreement, the principal amount owed under the Note becomes due and payable on November 30, 2011 provided that, upon ten (10) days' prior written notice to the Holder, we may, in our sole discretion, extend the maturity date for an additional six months. The Note is convertible at the option of the holder into common stock at a variable conversion price of seventy percent (70%) multiplied by the arithmetic average of the volume-weighted average trading price of the Common Stock for the ten (10) consecutive trading days ending on the day that is three (3) trading days prior to the investment date, or $0.03. In connection with the Note the Company also issued a warrant to purchase 500,000 shares of common stock. The term of the warrants is three years and the exercise price is the lesser of (i) the product of fifty percent (50%) multiplied by the arithmetic average of the volume-weighted average trading price of the Common Stock for the ten (10) consecutive trading days ending on the day that is three (3) trading days prior to the applicable investment date, or (ii) $0.022. We derived the fair value of the warrants issued with Notes using the Black-Scholes option valuation model, resulting in a fair value of $6,667. The $100,000 note proceeds were allocated to the relative fair values of the note without the warrants and of the warrants themselves on the investment date. The remainder of the proceeds is allocated to the note portion of the transaction, resulting in a discount. We then calculated the intrinsic value of the conversion feature on the investment date and allocated the portion of the proceeds equal to the intrinsic value of this feature of $46,667 to paid-in capital. We deducted the allocated fair value of the warrants and intrinsic value of the conversion feature from the Notes, resulting in an initial value ascribed to the Notes of $46,666. Concurrently, the Company amendeded an 8% Convertible Promissory Notes with the same unrelated third-party that was originally issued on August 9, 2010. The principal amount was amended from $200,000 to $207,000 with a new maturity date of November 30, 2011 and conversion price of $0.03. The calculated fair value of the conversion feature due to this amendment amount to $92,460, resulting in an initial value ascribed to the Notes of $114,540. The initial value of the Note is being accreted to its face value over the initial term of the Note using the interest method. On May 31, $50,000 of this note was converted into 1,666,667 shares of common stock and the Company recognized $22,333 as interest expense related to this conversion.

On June 16, 2011the Company entered into a 12% Convertible Promissory Note with an unrelated third-party for a principal amount of $35,000. The Note is convertible at the option of the holder into common stock at a conversion price of seventy percent (70%) multiplied by the arithmetic average of the volume-weighted average trading price (VWAP) of the Common Stock for the ten (10) consecutive trading days ending on the day that is three (3) trading days prior to the applicable investment date, or $0.03. In connection with the Note, the Company also issued warrants to purchase 140,000 shares of common stock. The term of the warrant is two years and the exercise price is the lesser of (i) the product of fifty percent (50%) multiplied by the arithmetic average of the volume-weighted average trading price of the Common Stock for the ten (10) consecutive trading days ending on the day that is three (3) trading days prior to the applicable investment date, or (ii) $0.019. As of June 30, the note was converted and the related warrants were exercised in exchange for 1,306,667 shares of common stock restricted for six months under Rule 144. The Company recognized $19,561 as interest expense related to these conversions for the three and six months ended June 30, 2011.

The total interest expense attributed to all Notes and related warrants for the three months ended June 30, 2011 and 2010 was $615,677 and $1,602,266 respectively. The total interest expense attributed to all Notes and related warrants for the six months ended June 30, 2011 and 2010 was $921,539 and $3,560,566, respectively.

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RESTRUCTURING ACTIVITIES - Note 10

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

RESTRUCTURING ACTIVITIES - Note 10

NOTE 10 - RESTRUCTURING ACTIVITIES

From May 29, 2008 to November 7, 2008, we provided notices under the federal Worker Adjustment and Retraining Notification Act to 142 employees, including six members of senior management, that we planned to conduct a workforce reduction at our San Diego, California facility and that their employment was expected to end on various dates between June 6, 2008 to November 7, 2008. Immediately prior to the date of the Merger, the total severance liability relating to former MMRGlobal employees amounted to $1,682,416. Also immediately prior to the Merger, as part of the 9,999,992 warrants issued to creditors (see Note 9), we issued warrants as settlement of $985,020 of these amounts. In addition, we signed promissory notes with certain former executives totaling $76,783, which notes were payable in full on August 31, 2009 (see Note 10).

As of June 30, 2011, the total remaining severance liabilities amounted to $620,613, which we reflect as severance liability on the accompanying condensed consolidated balance sheets. This liability consists of $571,362 payable to former non-executive employees in 18 monthly installments starting on July 27, 2009, as well as $49,251 in estimated payroll tax. We did not make payments during the three and six months ended June 30, 2011 on these severance liabilities.

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NOTES PAYABLE - Note 8

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

NOTES PAYABLE - Note 8

NOTE 8 - NOTES PAYABLE

Notes payable consisted of the following.

		June 30,		December 31,
		2011		2010
		(Unaudited)
Promissory notes payable due to the former officers of MMRGlobal as part of severance packages, due in full on August 31, 2009 with no stated interest	$	76,783	$	76,783
Promissory notes payable due to the two remaining officers of MMRGlobal pursuant to the Resignation and Post-Merger Employment Arrangement, due in full on August 31, 2009 with no stated interest		25,444		25,444
Promissory notes payable due to vendors relating to settlement of certain outstanding accounts payable, payable in 18 equal monthly installments commencing on July 27, 2009 and ending on January 27, 2011, with no stated interest		223,116		223,116
Current portion		325,343		325,343
Less: current portion		325,343		325,343
Notes payable, less current portion	$	-	$	-

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NATURE OF OPERATIONS AND BASIS OF PRESENTATION - Note 1

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

NATURE OF OPERATIONS AND BASIS OF PRESENTATION - Note 1

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION

MMRGlobal, Inc. ("MMRGlobal," the "Company," "we," "our," or "us"), through its wholly-owned operating subsidiary, MyMedicalRecords, Inc. ("MMR"), provides secure and easy-to-use online Personal Health Records ("PHRs") and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, and professional organizations and affinity groups. MMR is an integrated service provider on Google Health and on July 22, 2011 signed an agreement with Microsoft to begin the process of integrating with Microsoft's Healthvault.

The MyMedicalRecords PHR enables individuals and families to access their medical records and other important documents, such as birth certificates, passports, insurance policies and wills, anytime from anywhere using the Internet. The MyMedicalRecords PHR is built on proprietary, patented technologies to allow documents, images and voicemail messages to be transmitted and stored in the system using a variety of methods, including fax, phone, or file upload without relying on any specific electronic medical record platform to populate a user's account. Our professional offering, MMRPro, is a document management and imaging system designed to give a physicians' office an easy and cost-effective entry level solution to digitize paper-based medical records and share them with patients in real time through an integrated patient portal located at MMRPatientView.com. MMR has become an Independent Software Vendor Partner with Kodak to deliver an integrated turnkey entry level EMR solution for healthcare professionals.

On January 27, 2009, Favrille, Inc., or Favrille, conducted a reverse merger with MMR, which we refer to as the Merger. Pursuant to the terms of the Merger, all of the outstanding common and preferred stock of MMR was cancelled and the former stockholders of MMR received an aggregate of 79,812,116 shares of Favrille common stock. On February 9, 2009, MMR changed its corporate name to MMR Information Systems, Inc., or MMRIS after completion of the reverse merger with Favrille. Effective June 15, 2010, MMRIS changed its corporate name to MMRGlobal, Inc. upon stockholder approval at our annual stockholder meeting. The name change to MMRGlobal more accurately reflects our global business imprint. In addition, MMRGlobal assumed the obligations of MMR under its outstanding stock options and warrants, which, pursuant to the terms of the Merger, represented the right to receive an aggregate 12,787,080 shares of MMRGlobal common stock at the effective time of the Merger. In connection with the Merger, MMR became our wholly-owned subsidiary, with the former stockholders of MMR collectively owning shares of our common and preferred stock representing approximately 60.3% of the voting power of our outstanding capital stock.

For accounting purposes, we treated the Merger as a reverse acquisition with MMR being the accounting acquirer. Accordingly, the historical financial results prior to the Merger are those of MMR. We include the results of operations for Favrille in our consolidated financial results beginning on January 27, 2009.

MMR was incorporated in Delaware in 2005, MMRGlobal was incorporated in Delaware in 2000 and both are headquartered in Los Angeles, CA.

Principles of Consolidation

The consolidated financial statements include the accounts of MMRGlobal, and its wholly-owned subsidiary MMR. We eliminated all intercompany transactions and balances upon consolidation.

Basis of Presentation

We have prepared MMRGlobal's accompanying consolidated unaudited financial statements in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial statements and with instructions to Form 10-Q pursuant to the rules and regulations of Securities and Exchange Act of 1934, as amended, or the Exchange Act and Article 8-03 of Regulation S-X promulgated under the Exchange Act. Accordingly, these financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of our management, we have included all adjustments considered necessary (consisting of normal recurring adjustments) for a fair presentation. Operating results for the three and six months ended June 30, 2011 are not indicative of the results that may be expected for the fiscal year ending December 31, 2011. You should read these unaudited condensed consolidated financial statements in conjunction with the audited financial statements and the notes thereto included in our annual report on Form 10-K for the year ended December 31, 2010.

Management's Plan

As of June 30, 2011, our current liabilities exceeded our current assets by $5.2 million. Furthermore, during the six months ended June 30, 2011, we incurred losses of $4.1 million.

At June 30, 2011 and December 31, 2010, we had $273,837 and $363,689, respectively, in cash and cash equivalents. Historically, we issued capital stock, sold debt and equity securities and received funds from The RHL Group, Inc. (a significant stockholder that is wholly-owned by our Chairman, Chief Executive Officer and President) to operate our business. Although we received additional funding from The RHL Group pursuant to the Fifth Amended and Restated Note dated April 29, 2011, we will still be required to obtain additional financing in order to meet installment payment obligations resulting from settlement payments with various creditors, which we refer to as the Creditor Plan and the previously existing obligations under the subordinated secured indebtedness to The RHL Group, which had a balance of $1,391,587 at June 30, 2011. As a result of the above, we express uncertainty about our ability to continue as a going concern.

Our management intends to continue to utilize our available line of credit with The RHL Group (see Note 3), if necessary to address our uncertainty to continue as a going concern. At June 30, 2011, we had approximately $1,608,000 remaining as available under The RHL Group line of credit. Additionally, we already began and plan to continue to utilize portions of our standby equity line facility with Dutchess Opportunity Fund, II, L.P. Furthermore, we plan to continue to sell additional debt and equity securities, continue to settle our existing liabilities through issuance of equity securities, explore other debt financing arrangements, continue to increase our existing subscriber and affiliate customer base and sell MMRPro products to obtain additional cash flow over the next twelve months. We cannot assure you that funds from these sources will be available when needed or, if available, will be on terms favorable to us or to our stockholders. If we raise additional funds by issuing equity securities, the percentage ownership of our stockholders will be reduced, stockholders may experience additional dilution, or such equity securities may provide for rights, preferences or privileges senior to those of the holders of our common stock.

If we are unable to utilize our available line of credit with The RHL Group, our standby equity line with Dutchess, or obtain suitable alternative debt financing, our ability to execute our business plan and continue as a going concern may be adversely affected.

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INCOME TAXES - Note 4

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

INCOME TAXES - Note 4

NOTE 4 - INCOME TAXES

Under ASC 740-270, Income Taxes - Interim Reporting, we are required to adjust our effective tax rate each quarter to be consistent with the estimated annual effective tax rate. We are also required to record the tax impact of certain discrete items, unusual or infrequently occurring, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. In addition, we exclude jurisdictions with a projected loss for the year or a year-to-date loss where we cannot recognize a tax benefit from our estimated annual effective tax rate. The impact of such an exclusion could result in a higher or lower effective tax rate during a particular quarter, based upon the mix and timing of actual earnings versus annual projections.

In accordance with ASC 740, Income Taxes, we have performed an analysis of our previous tax filings and determined that there we did not take any positions that we considered uncertain. Therefore, we did not have any unrecognized tax benefits as of June 30, 2011.

MMR, in its capacity as the operating company taking over our income tax positions in addition to its own positions after January 27, 2009 (see Note 1), has estimated its annual effective tax rate to be zero. MMR has based this on an expectation that the combined entity will generate net operating losses in 2011, and it is not likely that those losses will be recovered using future taxable income. Therefore, no provision for income tax has been recorded as of and for the three and nine months ended June 30, 2011.

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COMMITMENTS AND CONTINGENCIES - Note 5

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

COMMITMENTS AND CONTINGENCIES - Note 5

NOTE 5 - COMMITMENTS AND CONTINGENCIES

Leases

We lease certain facilities and equipment under non-cancelable capital and operating leases, which expire at various dates through 2013. Effective September 1, 2010, we entered into a lease agreement to lease office space in Los Angeles, California. The lease requires a monthly payment of $5,500 commencing in September 2010. Effective November 1, 2010, the Company entered into a lease agreement to lease additional space adjacent to the current office space in Los Angeles, California. The lease requires an additional monthly payment of $3,193 commencing in November 2010. Both leases expire on August 31, 2013 unless renewed. Total rent expense for the three months ended June 30, 2011 and 2010 was $32,079 and $32,405, respectively.

Total rent expense for the six months ended June 30, 2011 and 2010 was $49,465 and $49,630, respectively. Future minimum lease payments as of June 30, 2011, under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) and future minimum capital lease payments are as follows:

Year Ending		Operating		Capital
December 31,		Leases		Leases
2011 (remainder of)	$	52,158	$	7,125
2012		104,316		-
2013		69,544		-
Total minimum lease payments	$	226,018		7,125
Less interest portion				(128)
			$	6,997

Guarantee provided by Robert H. Lorsch

On August 17, 2009, Robert H. Lorsch, our Chief Executive Officer and President, agreed to guarantee $282,641 in payments due to a vendor for services rendered to us. On August 17, 2009, in consideration of a personal guaranty given by Mr. Lorsch, we granted Mr. Lorsch (i) a warrant to purchase up to 706,605 shares of our common stock, at an exercise price of $0.13 per share, which was the closing price of our common stock on the date immediately preceding the date of grant, and (ii) 141,321 shares of our common stock. On June 11, 2010, we settled our liability with this vendor in exchange for 1,680,677 shares of our common stock, which resulted in a cancellation of the aforementioned guarantee.

On May 6, 2011, the RHL Group agreed to guarantee up to $250,000 in payments to a vendor for future services to be rendered. In consideration of this guarantee, the RHL Group is entitled to (i) a warrant to purchase 650,000 shares of our common stock, at an exercise price of $0.46 per share, which was the closing price of our common stock on the date of the transaction, and (ii) 125,000 shares of our common stock priced as of the same date. In the event that the RHL Group has to perform on this guarantee, interest on any outstanding balance paid to the vendor by the RHL Group will be added to the balance of the Line of Credit. Additionally, any balances due to this vendor at any given time will reduce the amount available under the Line of Credit. As of this date the shares have not been issued. .

Litigation Matters

From time to time, we are involved in various legal proceedings generally incidental to our business. While the result of any litigation contains an element of uncertainty, our management presently believes that the outcome of any known, pending or threatened legal proceeding or claim, individually or combined, will not have a material adverse effect on our financial statements.

On April 30, 2010, we filed a petition in the New York Supreme Court against the Lymphoma Research Foundation, or LRF, a California nonprofit corporation, to enforce our rights to certain intellectual property and biotechnology assets acquired as a part of the reverse Merger with Favrille. LRF has claimed ownership of some of these assets, including samples and data which were transferred to LRF in the summer of 2008. Also on April 30, 2010, LRF filed a declaratory relief action in the New York Supreme Court asserting its rights over the aforementioned samples and data. We answered LRF's action and filed counterclaims on July 6, 2010. Although the Company and LRF have met in mediation, the litigation is ongoing. Since then, LRF filed a motion for summary judgment with the New York Court, seeking a determination that it was the sole owner of the assets, and MMR filed papers in opposition of the motion. On September 21, 2010, the New York Court denied LRF's motion on the ground that the parties had not yet had an opportunity to conduct discovery and that LRF's motion was premature. In November 2010, LRF and MMR settled the litigation over the biotech assets, which gave the Company exclusive control of certain data and tissue samples created during trials of Favrille, Inc.'s FavId™ vaccine.

The Company is planning on filing a lawsuit against a certain former officer of pre-merger Favrille, and other potential defendants that the Company believes may have misappropriated some of Favrille's intellectual and personal property. Information leading to the decision to file the lawsuit was discovered as a result of the filing of a lawsuit by The RHL Group, Inc., a creditor of The Company. The RHL Group lawsuit was filed against Dan Gold, a former officer and director of Favrille, and other defendants for wrongful acts relating to the misappropriation of Favrille's intellectual and personal property. The RHL Group case is currently pending in San Diego, California. The Company's board of directors has consented to having the same law firm represent both the RHL Group, Inc. and the Company in this matter.

At this time the potential recovery for damages is unknown, however we believe damages could be significant. There is no attorneys' fees provision, so if the lawsuit ends unfavorably, we will only be liable for our attorneys' fees incurred by The Company for its representation.

On July 31, 2011, Ropers, Majeski, Kohn and Bentley (Ropers), a national firm with offices in San Francisco, Redwood City, San Jose, Los Angeles, New York and Boston, filed a civil complaint on behalf of MyMedicalRecords.com (MMR) in the Superior Court For the State of California, County of Los Angeles. Named as defendants in that case are Taylor Armstrong, Russell Armstrong and a corporation known as NuWay Digital Systems. Among other things, the Complaint alleges that Taylor Armstrong and her husband Russell Armstrong breached a 2007 settlement agreement between themselves and MMR. The settlement agreement entitles MMR to liquidated damages of $1,000,000 for the first such breach and $250,000 for each ensuing breach. To date, three breaches have been alleged. Ropers continues to investigate and will amend the Complaint in the event that additional breaches are uncovered.

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STOCKHOLDERS' DEFICIT - Note 6

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

STOCKHOLDERS' DEFICIT - Note 6

NOTE 6 - STOCKHOLDERS' DEFICIT

Preferred Stock

 MMR has 5,000,000 shares of its preferred stock authorized. As of June 30, 2011 and December 31, 2010, there were no shares of MMR preferred stock issued and outstanding.

Common Stock

As of June 30, 2011, we are authorized to issue 650,000,000 shares of common stock. Pursuant to the Merger Agreement, we agreed to issue (or reserve for issuance) 92,599,196 shares of our common stock to the stockholders of MMR and the holders of options and warrants to acquire MMR common stock at the time of the Merger.

On August 5, 2010, the Company filed a Form S-1 related to the offer and resale of up to 60,000,000 shares of our common stock, by the selling stockholder, Dutchess Opportunity Fund, II, LP, or Dutchess. Dutchess has agreed to purchase all 60,000,000 shares pursuant to the investment agreement dated September 15, 2009, as amended on May 7, 2010, or the Investment Agreement, between Dutchess and the Company, and an additional 230,800 shares were issued to Dutchess in partial consideration for the preparation of the documents for its investment. Subject to the terms and conditions of the Investment Agreement, the Company has the right to put up to $10.0 million in shares of our common stock to Dutchess.

As of June 30, 2011, the total shares of our common stock issued and outstanding amounted to 293,454,717.

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Statements of Cash Flows (USD $)	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Operating activities:
Net loss	$ (4,107,538)	$ (14,327,996)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	98,487	46,322
Change in valuation of derivative liabilities	(126,795)	6,129,563
Warrants issued for services	326,796	572,982
Stock-based compensation	721,829	962,525
Common stock issued for services	267,630	571,213
Amortization of loan discount - convertible debt and RHL Group	1,088,205	3,628,212
Gain on sale of shares	0	(5,900)
Subtotal - non-cash adjustments	2,376,152	11,904,917
Effect of changes in:
Accounts receivable	(29,158)	(115,046)
Inventory	28,705	(48,772)
Prepaid expenses and other current assets	47,620	174,681
Deposits	500
Accounts payable and accrued expenses	177,769	59,910
Related party payables	144,508	(50,314)
Compensation and severance payable	48,318	(195)
Deferred revenue	57,367	64,406
Subtotal - net change in operating assets and libilities	475,629	84,670
Net cash used in operating activities	(1,255,757)	(2,338,409)
Investing activities:
Purchase of property and equipment	(7,779)	0
Filing of biotech patents	(93,038)	(67,476)
MMRPro and Website Development	(153,191)	(93,560)
Net cash provided by (used in) investing activities	(254,008)	(161,036)
Financing activities:
Net, proceeds from convertible notes	831,436	1,892,747
Net proceeds from warrant exercises	104,280	716,500
Proceeds from (repayment of) equity line of credit	442,822	(98,229)
Payments of capital lease	(4,128)	(3,736)
Proceeds from stock option exercises	45,503	3,779
Net cash provided by financing activities	1,419,913	2,511,061
Net increase (decrease) in cash	(89,852)	11,616
Cash, beginning of period	363,689
Cash, end of period	273,837	499,382
Supplemental disclosures of cash flow information:
Cash paid for interest	10,319	29,898
Cash paid for income taxes	2,865	1,600
Supplemental disclosure of non-cash investing and financing activities:
Payment of payables through issuance of notes payable	24,387	0
Conversion of convertible notes payable into common stock	792,386	2,298,814
Payment of accounts payable and related party payables through issuance of common stock	$ 1,051,908	$ 746,863

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Note 2

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Note 2

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) MANAGEMENT'S USE OF ESTIMATES

Our preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net revenue and expenses during each reporting period. On an ongoing basis, our management evaluates its estimates, including those related to revenue recognition, allowances for doubtful accounts, the valuation of deferred income taxes, tax contingencies, long-lived and intangible assets, derivative liabilities and stock-based compensation. Management bases these estimates on historical experience and on various other factors that management believes to be reasonable under the circumstances. You should be aware that actual results could differ from those estimates.

(b) CASH AND CASH EQUIVALENTS

We consider cash equivalents to be only those investments that are highly liquid, readily convertible to cash and with maturities of 90 days or less at the purchase date. We maintain our cash in bank deposit accounts that, at times, may exceed federally insured limits. We have not experienced any losses in such accounts and believe that we are not exposed to any significant credit or deposit risk on our cash. We had cash and cash equivalents of $273,837 and $363,689 as of June 30, 2011 and December 31, 2010, respectively.

(c) TRADE AND OTHER RECEIVABLES

Receivables represent claims against third parties that will be settled in cash. The carrying value of receivables, net of an allowance for doubtful accounts, if any, represents their estimated net realizable value. We estimate the allowance for doubtful accounts, if any, based on historical collection trends, type of customer, the age of outstanding receivables and existing economic conditions. If events or changes in circumstances indicate that specific receivable balances may be impaired, we give further consideration to the collectability of those balances and the allowance is adjusted accordingly. We write off past due receivable balances when collection efforts have been unsuccessful in collecting the amount due.

(d) INVENTORIES

We state inventories at the lower of standard cost (which approximates cost determined on a first-in, first-out basis) or market. We write down the value of inventories for estimated excess and obsolete inventories based upon assumptions about future demand and market conditions. Inventories consist of finished goods. Inventory reserves, once established, are only reversed upon sale or disposition of related inventories.

(e) FAIR VALUE OF FINANCIAL INSTRUMENTS

ASC 820-10, Fair Value Measurements and Disclosures, requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. ASC 820-10 defines the fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. As of June 30, 2011 and December 31, 2010, the carrying value of accounts receivable, deposits, related party payables, compensation payable, severance liabilities, and accounts payable and accrued expenses approximates fair value due to the short-term nature of such instruments. The carrying value of short-term debt approximates fair value as the related interest rates approximate rates currently available to us.

We utilize ASC 820-10 for valuing financial assets and liabilities measured on a recurring basis. ASC 820-10 defines fair value, establishes a framework for measuring fair value and generally accepted accounting principles, and expands disclosures about fair value measurements. This standard applies in situations where other accounting pronouncements either permit or require fair value measurements. ASC 820-10 does not require any new fair value measurements.

Accounting guidance also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The standard describes three levels of inputs that may be used to measure fair value:

Level 1:	Quoted prices in active markets for identical or similar assets and liabilities.
Level 2:	Quoted prices for identical or similar assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical or similar assets and liabilities.
Level 3:	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

In determining the appropriate fair value of the warrant liability, we used Level 3 inputs for our valuation methodology. We applied the Black-Scholes model to value the warrant liability. See Note 7 for the inputs used in the Black-Scholes option valuation model.

(f) PROPERTY AND EQUIPMENT

We state property and equipment at cost. We state equipment under capital leases at the present value of the minimum lease payments. We calculate depreciation using the straight-line method, based upon the following estimated useful lives:

Furniture and Fixtures: 5 Years

Computer Equipment: 5 Years

When we retire or dispose of items, we charge or credit income for the difference between the net book value of the asset and the proceeds realized thereon.

We charge expenditures for maintenance and repairs to operations as incurred while we capitalize renewals and betterments.

We have pledged as collateral all property and equipment, along with all other of our assets, for a line of credit from The RHL Group, a related party (see Note 3 - Related Party Note Payable).

(g) INTANGIBLE ASSETS

Intangible assets are comprised of website and software development costs, domain names and patents. We account for website and software development costs in accordance with ASC 350-50, Website Development Costs, and ASC 985-20, Costs of Software to Be Sold, Leased or Marketed. Pursuant to ASC 350-50 and 985-20, we capitalize internally developed website and software costs when the website or software under development has reached technological feasibility. We amortize these costs, typically over an estimated life of five years, using the larger of the amount calculated using the straight-line method or the amount calculated using the ratio between current period gross revenues and the total of current period gross revenues and estimated future gross revenues. At each balance sheet date, we evaluate the unamortized capitalized website and software costs compared to the net realizable value. We then write off the amount by which the unamortized capitalized website costs exceed its net realizable value. During the six months ended June 30, 2011 and 2010, there were no impairment charges recorded.

We account for domain names and patents in accordance with ASC 350-30, General Intangibles Other than Goodwill. We capitalize patent costs representing legal fees associated with filing patent applications and amortize them on a straight-line basis. We are in the process of evaluating our patents' estimated useful life and will begin amortizing the patents when they are brought to the market or otherwise commercialized. We amortize identifiable intangible assets over their estimated useful lives as follows:

Website and Software Development Costs: 5 Years

Domain Name: 5 Years

(h) IMPAIRMENT OF LONG-LIVED ASSETS AND INTANGIBLES

We account for long-lived assets, which include property and equipment and identifiable intangible assets with finite useful lives (subject to amortization), in accordance with ASC 350-30. ASC 350-30 requires that we review long-lived assets for impairment whenever events or changes in circumstances indicate that we may not recover the carrying amount of an asset. We measure recoverability by comparing the carrying amount of an asset to the expected future undiscounted net cash flows generated by the asset. If we determine that the asset may not be recoverable, or if the carrying amount of an asset exceeds its estimated future undiscounted cash flows, we recognize an impairment charge to the extent of the difference between the fair value and the asset's carrying amount. We had no impairment charges during the six months ended June 30, 2011 and 2010.

(i) REVENUE RECOGNITION

We generate our revenues from services, which are comprised of providing electronic access to consumer medical records and other vital documents, providing document imaging and storage solutions to professionals in the medical field as well as the legal, banking and other fields giving them the ability to share documents with patients and clients, and the licensing of our services and biotechnology assets. We recognize revenue only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and we reasonably are assured of collectability of the resulting receivable.

Our subscriber revenues consist of annual and monthly recurring retail subscriptions and usage-based fees, which are primarily paid in advance by credit card, and corporate accounts that are based on either an access-fee or actual number of users, and in each case billed in advance at the beginning of each month of service. We defer the portions of annual recurring subscription fees collected in advance and recognize them on a straight line basis over the subscription period.

We grant exclusive licenses for the sale and marketing of our services in international territories in consideration of an up-front license fee and an ongoing royalty. The royalty fee is usually a percentage of revenue earned by the licensee and there usually are certain minimum guarantees. We defer the recognition of license fee revenues received in advance from international licensees for the grant of the license and recognized then over the period covered by the agreement. We defer the recognition of minimum guaranteed royalty payments received in advance and recognize them over the period to which the royalty relates. We include all such revenues under "License Fees." In those cases where a license agreement contains multiple deliverables, we account for the agreement in accordance with ASC 605-25, Revenue Recognition - Multiple-Element Arrangements.

We recognize revenue on sales of our MMRPro system in accordance with ASC 605-25, Revenue Recognition, Multiple-Element Arrangements. We have also adopted Accounting Standards Update ("ASU") 2009-13, "Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements, a consensus of the FASB Emerging Issues Task Force" effective January 1, 2010.

Our multiple-deliverable arrangements consist solely of our MMRPro product. Significant deliverables within these arrangements include sophisticated scanning equipment, various licenses to use third party software, a license to use our proprietary MMRPro application software, dedicated telephone lines, secure online storage and warranties.

We determined all elements to be separate units of accounting as they have standalone value to the customers and/or they are sold by other vendors on a standalone basis. Delivery of the hardware, software licenses and certain software elements of these arrangements occur at the inception of the agreement. We deliver installation and training at the inception of the agreement. We provide telephone lines and online secure storage over the three year term of the agreement. We include warranties in the arrangements, however the third party product manufacturer, and not us, is obligated to fulfill such warranties. The contracts are paid in advance and are not refundable.

We allocate the revenue derived from these arrangements among all the deliverables. We base such allocation on the relative selling price of each deliverable. With the exception of our proprietary MMRPro application software, we use third party evidence to set the selling prices used for this allocation. In all such cases, third parties sell the same or very similar products. For the MMRPro application software, we estimate the selling price based on recent discussions regarding licensure of that particular application on a standalone basis. To date, we have not licensed this software on a standalone basis.

We recognize the allocated revenue for each deliverable in accordance with SEC Staff Accounting Bulletin ("SAB") No. 104, Topic 13: Revenue Recognition. Under this guidance, we recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable and collectability is reasonably assured. This results in us recognizing revenue for the hardware, certain software and the warranties upon delivery to the customer, for the installation and training upon completion of these services, and ratably over the contract period for the software licenses, telephone lines and online secure storage.

Revenue from the licensing of our biotech assets may include non-refundable license and up-front fees, non-refundable milestone payments that are triggered upon achievement of a specific event and future royalties or lump-sum payments on sales of related products. For agreements that provide for milestone payments, such as the Celgene Agreement, we adopted ASC 605-28-25, Revenue Recognition, Milestone Method.

(j) INCOME TAXES AND UNCERTAIN TAX POSITIONS

We account for income taxes in accordance with ASC 740-10, Income Taxes. We recognize deferred tax assets and liabilities to reflect the estimated future tax effects, calculated at the tax rate expected to be in effect at the time of realization. We record a valuation allowance related to a deferred tax asset when it is more likely than not that some portion of the deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.

ASC 740-10 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. We classify interest and penalties as a component of interest and other expenses. To date, we have not been assessed, nor have we paid, any interest or penalties.

We measure and record uncertain tax positions by establishing a threshold for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Only tax positions meeting the more-likely-than- not recognition threshold at the effective date may be recognized or continue to be recognized.

(k) ADVERTISING

We expense advertising costs as we incur them. Advertising expense for the three and six months ended June 30, 2011 amounted to $27,468 and $74,623, respectively, while advertising expenses for the three and six months ended June 30, 2010 amounted to $100,000.

(l) SHARE-BASED COMPENSATION

We account for share-based compensation in accordance with ASC 718-20, Awards Classified as Equity. We apply ASC 718-20 in accounting for stock-based awards issued to employees under the recognition of compensation expense related to the fair value of employee share-based awards, including stock options and restricted stock. Determining the fair value of options at the grant date requires judgment, including estimating the expected term that stock options will be outstanding prior to exercise, the associated volatility and the expected dividends. Judgment is required in estimating the amount of share-based awards expected to be forfeited prior to vesting. If actual forfeitures differ significantly from these estimates, share-based compensation expense could be materially impacted.

We account for options and warrants issued to non-employees in accordance with ASC 505-50, Equity-Based Payments to Non-Employees. We treat options and warrants issued to non-employees the same as those issued to employees with the exception of determination of the measurement date. The measurement date is the earlier of (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty's performance is complete. Options and warrants granted to consultants are valued at their respective measurement dates, and recognized as expense based on the portion of the total consulting services provided during the applicable period. As further consulting services are provided in future periods, we will revalue the associated options and warrants and recognize additional expense based on their then current values.

We estimate the fair value of each stock option on the date of grant using the Black-Scholes option pricing model. We determine assumptions relative to volatility and anticipated forfeitures at the time of grant. We valued grants of stock options and warrants during the three and six months ended June 30, 2011 and 2010 using the following assumptions.

	June 30, 2011	June 30, 2010
	(Unaudited)	(Unaudited)
Expected life in years	5 - 10 Years	5 - 10 Years
Stock price volatility	147.89% - 147.89%	111.85% - 128.82%
Risk free interest rate	0.56% - 3.36%	2.38% - 3.87%
Expected dividends	None	None
Forfeiture rate	0%	0%

We base the assumptions used in the Black-Scholes models upon the following data: (1) our use of the contractual life of the underlying non-employee warrants as the expected life; the expected life of the employee options used in this calculation is the period of time the options are expected to be outstanding and has been determined based on historical exercise experience; (2) Beginning in 2011, the volatility rate was calculated based on historical trading data of the underlying shares since January 1, 2009; (3) We base the risk free interest rate on published U.S. Treasury Department interest rates for the expected terms of the underlying options or warrants; (4) We base expected dividends on historical dividend data and expected future dividend activity; and (5) We base the expected forfeiture rate on historical forfeiture activity and assumptions regarding future forfeitures based on the composition of current grantees.

(m) NET INCOME/LOSS PER SHARE

We apply the guidance of ASC 260-10, Earnings Per Share for calculating the basic and diluted loss per share. We calculate basic loss per share by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding. We compute diluted loss per share similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential shares had been issued and if the additional shares were dilutive. We exclude common equivalent shares from the computation of net loss per share if their effect is anti-dilutive.

We excluded all potential common shares from the computation of diluted net loss per common share for the three and six months ended June 30, 2011 and 2010 because they were anti-dilutive due to our net loss position. Stock options and warrants excluded from the computation totaled 90,509,649 shares for the three and six months ended June 30, 2011 and 76,047,221 shares for the three and six months ended June 30, 2010.

(n) RESEARCH, DEVELOPMENT AND ENGINEERING

We expense research, development and engineering costs as incurred and presented as technology development in the accompanying consolidated statements of operations. We capitalize and amortize costs for software development relating to our website incurred subsequent to establishing technological feasibility, in the form of a working model, over their estimated useful lives.

(o) CONCENTRATIONS

For the three months ended June 30, 2011, our four largest customers (PCS International at $79,574, Coverdell at $18,509, Medicalert at $11,379, and E-Mail Frequency at $11,070) accounted for approximately 75.1% of our total revenue.

For the six months ended June 30, 2011, our four largest customers (Celgene at $500,000, PCS International at $79,574, Coverdell at $36,459, and Medicalert at $21,879) accounted for approximately 86.5% of our total revenue.

For the three months ended June 30, 2010, the Company's four largest customers accounted for approximately 68.2% of the Company's total revenue.

For the six months ended June 30, 2010, these same four customers accounted for approximately 69.6% of the Company's total revenue.

(p) RECENT ACCOUNTING PRONOUNCEMENTS

In October 2009, the FASB issued ASU No. 2009-13, Multiple-Deliverable Revenue Arrangements - a consensus of the FASB Emerging Issues Task Force, that provides amendments to the criteria for separating consideration in multiple-deliverable arrangements. As a result of these amendments, multiple-deliverable revenue arrangements will be separated in more circumstances than under existing U.S. GAAP. The ASU does this by establishing a selling price hierarchy for determining the selling price of a deliverable. The selling price used for each deliverable will be based on vendor-specific objective evidence if available, third-party evidence if vendor-specific objective evidence is not available, or estimated selling price if neither vendor-specific objective evidence nor third-party evidence is available. A vendor will be required to determine its best estimate of selling price in a manner that is consistent with that used to determine the price to sell the deliverable on a standalone basis. This ASU also eliminates the residual method of allocation and will require that arrangement consideration be allocated at the inception of the arrangement to all deliverables using the relative selling price method, which allocates any discount in the overall arrangement proportionally to each deliverable based on its relative selling price. Expanded disclosures of qualitative and quantitative information regarding application of the multiple-deliverable revenue arrangement guidance are also required under the ASU. The ASU does not apply to arrangements for which industry specific allocation and measurement guidance exists, such as long-term construction contracts and software transactions. The ASU is effective beginning January 1, 2011. The adoption of this standard didn't have a material impact on our financial statements.

In January 2010, the FASB issued ASU No. 2010-6, "Improving Disclosures About Fair Value Measurements," that amends existing disclosure requirements under ASC 820 by adding required disclosures about items transferring into and out of levels 1 and 2 in the fair value hierarchy; adding separate disclosures about purchases, sales, issuances, and settlements relative to level 3 measurements; and clarifying, among other things, the existing fair value disclosures about the level of disaggregation. This ASU became effective during the first quarter of 2010, except for the requirement to provide level 3 activities of purchases, sales, issuances, and settlements on a gross basis, which becomes effective beginning the first quarter of 2011.

 The adoption of this standard didn't have a material impact on our financial statements.

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RELATED PARTY TRANSACTIONS - Note 11

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

RELATED PARTY TRANSACTIONS - Note 11

NOTE 11 - RELATED PARTY TRANSACTIONS

Our President, Chairman and Chief Executive Officer, Robert H. Lorsch, is also the Chief Executive Officer of The RHL Group, Inc. and owns all of the capital stock of The RHL Group, Inc. Mr. Lorsch, directly and indirectly through The RHL Group, beneficially owns approximately 22.63% our total outstanding voting stock. The RHL Group has loaned money to MMRGlobal pursuant to a secured note. See Note 3 - Related Party Note Payable.

The RHL Group is an investment holding company which provides consulting, operational and technical services to us, which we refer to as the RHL Services. As part of the RHL Services, The RHL Group provides us with unrestricted access to its internal business and relationship contact database of more than 10,000 persons and entities, which includes clients of The RHL Group and other individuals which may hold value to us. The RHL Group also provides infrastructure support to us, including allowing us unlimited access to its equipment, and data, information management and server systems. In addition to allowing us the use of its office support personnel, The RHL Group also has consented to allow us to utilize the full-time services of Mr. Lorsch as our President, Chairman and Chief Executive Officer, which requires substantial time and energy away from his required duties as The RHL Group's Chairman and Chief Executive Officer. In addition, The RHL Group has made its President, Kira Reed, available as our spokesperson, for personal appearances, tradeshows and hosting our product videos. Ms. Reed also manages our social networking activities.

We incurred $12,500 during the three months ended June 30, 2011 and 2010 and $25,000 during the six months ended June 30, 2011 and 2010, toward marketing consulting services from Bernard Stolar, a director. We included in related party payables at June 30, 2011 and December 31, 2010 $56,820 and $54,359, respectively, with respect to these services.

We also incurred $12,500 during the three months ended June 30, 2011 and 2010 and $25,000 during the six months ended June 30, 2011 and 2010, toward marketing consulting services from Hector Barreto, a director. We included in related party payables at June 30, 2011 and December 31, 2010 $67,075 and $31,075, respectively, with respect to these services.

We also incurred $12,500 and $97,680 during the three months ended June 30, 2011 and 2010, respectively, towards finder's fees and/or consulting services from George Rebensdorf, a former director. We also incurred $25,000 and $128,852 during the six months ended June 30, 2011 and 2010, respectively, toward finder's fees and/or consulting services from Mr. Rebensdorf. We included in related party payables at June 30, 2011 and December 31, 2010 $70,200 and $40,703, respectively, with respect to these services.

We also incurred $983 and $9,600 during the three months ended June 30, 2011 and 2010, respectively, towards consulting services from Jack Zwissig, a director. We also incurred $6,983 and $9,600 during the six months ended June 30, 2011, and 2010, respectively, toward consulting services from Mr. Zwissig. We included in related party payables at June 30, 2011 and December 31, 2010 $36,933 and $30,950, respectively, with respect to these services.

We contract with a significant vendor for the development and maintenance of the software applications necessary to run our MyMedicalRecords PHR, MyESafeDepositBox and MyMedicalRecords Pro products. Our outside developer supports our software development needs through a team of software engineers, programmers, quality control personnel and testers, who work with our internal product development team on all aspects of application development, design, integration and support of our products. This vendor is also a stockholder. For the three months ended June 30, 2011 and 2010, the total expenses relating to this stockholder amounted to $66,069 and $0, respectively. For the six months ended June 30, 2011 and 2010, the total expenses relating to this stockholder amounted to $160,518 and $0, respectively. In addition, we capitalized $97,084 of software development costs for the six months ended June 30, 2011. On May 6, 2011, we issued this vendor 13,152,183 shares of common stock in exchange for a reduction to accounts payable in the amount of $789,131. As of June 30, 2011 and December 31, 2010, the total amounts due to the stockholder and included in related party payables amounted to $20,718 and $784,278, respectively.

We incurred costs of $47,165 and $95,060 during the three and six months ended June 30, 2010, respectively, toward consulting services from Audit Prep Services, LLC. No such costs were incurred in 2011. Michael T. Psomas, member of Audit Prep Services, LLC, is a stockholder of MMRGlobal. At June 30, 2011 and December 31, 2010 we had $0 and $47,316, respectively, due to Audit Prep Services, LLC, which was recorded as a related party payable.

On September 15, 2009, we entered into a five year agreement with E-Mail Frequency, LLC and David Loftus, Managing Partner of E-Mail Frequency, LLC, a significant stockholder of the Company. We licensed an existing 80 million person direct marketing database of street addresses, cellular phone numbers, e-mail addresses and other comprehensive data with E-Mail Frequency. The agreement allows us to market, through the use of the Database, our MyMedicalRecords Personal Health Record, MyEsafeDepositBox virtual vault, and MMRPro document management system to physicians and their patients. Under the terms of the Agreement, we paid $250,000 to David Loftus as a one-time consulting fee in the form of 2,777,778 shares of our common stock. We recorded the $250,000 one-time licensee fee as a prepaid consulting fee and included in the prepaid expenses and other current assets as of December 31, 2009. Amortization expense for the three and six months ended June 30, 2011 and 2010 was $12,500 and $25,000 respectively. We included in related party payables at June 30, 2011 and December 31, 2010 of $19,103, in respect to these services. Furthermore, on January 6, 2010, we entered into 12% Convertible Promissory Notes with Mr. Loftus for a principal amount totaling $400,000 and warrants to purchase our common stock, which Mr. Loftus immediately converted both into shares of our common stock, for a total 8,860,606 shares of our common stock. On July 26, 2010 and September 21, 2010, we entered into 6% Convertible Promissory Notes with Mr. Loftus for a total principal amount of $450,000 and warrants to purchase our common stock. On April 15, 2011, we entered into a 6% Convertible Promissory Note with Mr. Loftus for a principal amount $156,436 and warrants to purchase our common stock.

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Balance Sheets (USD $)	Jun. 30, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 273,837	$ 363,689
Accounts receivable, less allowances of $19,200 in 2011 and in 2010	465,898	436,740
Inventory	55,556	84,261
Prepaid expenses and other current assets	322,863	370,483
Total current assets	1,118,154	1,255,173
Long-term investments:
Investment in equity securities, at cost	56,000	56,000
Total long-term investments	56,000	56,000
Property and equipment, net	38,874	42,931
Deposits	3,370	3,870
Intangible assets, net	1,030,012	870,433
Total assets	2,246,410	2,228,407
Current liabilities:
Line of credit, related party	965,313	984,842
Related party payables	500,989	1,254,681
Compensation payable	60,297	11,979
Severance liability	620,613	620,613
Accounts payable and accrued expenses	2,788,290	2,610,521
Deferred revenue	180,595	123,228
Warrant liability	0	88,997
Convertible notes payable, net of discounts	823,524	605,887
Notes payable, current portion	325,343	325,343
Capital leases payable, current portion	6,997	11,125
Total current liabilities	6,271,961	6,637,216
Notes payable, less current portion
Total liabilities	6,271,961	6,637,216
Commitments and contingencies (See Note 5)
Stockholders' deficit:
Preferred stock - $0.001 per value, 5,000,000 shares authorized, 0 issued and outstanding.
Common stock, $0.001 par value, 650,000,000 shares authorized, 293,454,717 and 238,893,492 shares issued and outstanding as of June 30, 2011 and December 31, 2010, respectively	293,509	238,889
Additional paid-in capital	39,136,650	34,700,650
Accumulated deficit	(43,455,710)	(39,348,348)
Total stockholders' deficit	(4,025,551)	(4,408,809)
Total liabilities and stockholders' deficit	$ 2,246,410	$ 2,228,407