UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-QSB

(Mark One)

x Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2004

¨ Transition report under Section 13 or 15(d) of the Exchange Act

Commission file number: 33-55254-36

E Med Future, Inc.

(Exact name of small business issuer as specified in its charter)

Nevada	87-0485314
(State of incorporation)	(I.R.S. Employer Identification No.)

794 Morrison Road, Suite 911, Columbus, OH 43230

(Address of principal executive offices)

877-855-1319	www.NeedleZap.com
(Issuer’s telephone number)	(Issuer’s website)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 26,134,000 shares of common stock, $0.001 par value per share, as of May 1, 2003

Transitional Small Business Disclosure Format (check one):    Yes  ¨    No  x

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION		3
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis	6
Our Products		6
Recent Events		7
Looking Ahead		8
Our History		8
Results of Operations		9
Net Sales		9
Costs and Expenses		9
Net Loss		9
Financial Condition and Liquidity		10
Off-Balance Sheet Arrangements		10
Forward Looking Statements		10
How to Learn More About E Med		11
Item 3.	Controls and Procedures	11
PART II — OTHER INFORMATION		12
Item 1.	Legal Proceedings	12
Item 2.	Changes in Securities and Use of Proceeds	12
Item 3.	Defaults Upon Senior Securities	12
Item 4.	Submission of Matters to a Vote of Security Holders	12
Item 5.	Other Information	12
Item 6.	Exhibits and Reports on Form 8-K	12
(a)	Exhibits	12
(b)	Reports on Form 8-K	12
SIGNATURES		13

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PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

E MED FUTURE, INC.

Formerly Micro-Economics, Inc.

(A Development Stage Company)

CONSOLIDATED BALANCE SHEET (UNAUDITED)

March 31, 2004

ASSETS
CURRENT ASSETS
Cash	$	5,002
Accounts receivable, net of allowance for doubtful account of $84,303		143,626
Inventory		292,322
Prepaid expenses		14,101
Total Current Assets		455,051
EQUIPMENT, net of depreciation		137,249
PATENTS AND LICENSES
Patents, net of amortization $46,470		337,926
	$	930,226
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Notes payable to bank	$	141,098
Current portion of long-term debt		1,519
Accounts payable		289,787
Accounts payable to related party		19,200
Accrued expenses		57,516
Total Current Liabilities		509,120
LONG-TERM DEBT
Notes payable to related party		267,085
Notes payable to finance company		4,001
STOCKHOLDERS’ EQUITY
Common stock $0.001 par value, 50,000,000 shares authorized, 26,134,000 issued and outstanding at March 31, 2004		26,134
Paid-in-capital		1,499,632
Deficit accumulated during development stage		(1,375,746	)
		150,020
	$	930,226

See accompanying notes to consolidated financial statements.

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E MED FUTURE, INC.

Formerly Micro-Economics, Inc.

(A Development Stage Company)

CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

	Three Months Ended March 31,						Period March 14, 1990 (Inception) to March 31, 2004
	2004			2003
NET SALES	$	129,026		$	50,542		$	810,511
COSTS AND EXPENSES-
Cost of goods sold		75,729			65,294			441,586
Selling, general and administrative		170,764			55,278			969,012
Research and development		—			—			8,883
Stock based compensation		—			600,000			605,000
Depreciation and amortization		7,668			7,051			82,553
Total Costs and Expenses		254,161			727,623			2,107,034
NET OPERATING LOSS		(125,135	)		(677,081	)		(1,296,523	)
OTHER INCOME (EXPENSE)
Interest and other income		—			—			23
Interest expense		(1,738	)		—			(10,051	)
Total Other Expenses		(1,738	)		—			(10,028	)
NET LOSS	$	(126,873	)	$	(677,081	)	$	(1,306,551	)
NET LOSS PER COMMON SHARE - (Basic and diluted)	$	(0.01	)	$	(0.56	)	$	(0.46	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING		26,134,000			1,208,333			2,829,220

See accompanying notes to consolidated financial statements.

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E MED FUTURE, INC.

Formerly Micro-Economics, Inc.

(A Development Stage Company)

CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

	Three Months Ended March 31,						Period March 14, 1990 (Inception) to March 31,
	2004			2003			2004
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(126,873	)	$	(677,081	)	$	(1,375,746	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		7,668			7,051			82,552
Stock based compensation		—			600,000			605,000
Research and development costs		—			—			8,808
Start-up costs		—			—			19,177
Amortization of prepaid expense								16,575
Changes in operating assets and liabilities:
Accounts receivable		(44,064	)		(41,568	)		(143,626	)
Inventory		19,946			9,053			(141,309	)
Prepaid expenses		(74	)		825			(74	)
Accounts payable		38,865			37,303			289,787
Accounts payable to related party		(47,776	)		—			19,200
Accrued expenses		13,686			4,165			57,516
Net Cash Used in Operating Activities		(138,622	)		(60,252	)		(562,140	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment		(12,839	)		—			(48,227	)
Net Cash Used in Investing Activities		(12,839	)		—			(48,227	)
CASH FLOWS FROM FINANCING ACTIVITIES
Initial capitalization		—			—			1,666
Cash acquired in acquisition		—			—			200,000
Notes payable to bank		—			35,000			141,098
Notes payable to financing company		5,520			—			5,520
Notes payable to related party		(53,500	)		20,000			267,085
Net Cash Provided by Financing Activities		(47,980	)		55,000			615,369
NET(DECREASE) INCREASE IN CASH		199,441			(5,252	)		5,002
CASH AND CASH EQUIVALENTS BEGINNING OF PERIOD		204,443			13,216
CASH AND CASH EQUIVALENTS END OF PERIOD	$	5,002		$	7,964		$	5,002
Supplemental Schedule of Non-Cash Operating and Financing Activities
NeedleZap Partnership Contribution of Assets to Company
Inventory		—			—		$	151,015
Equipment		—			—			133,912
Patent		—			—			187,089
Issuance of 34,000 shares at $0.90 per share for Strategic Alliance Agreement		—			—			30,600
Issuance of 1,250,000 shares valued at $0.3108 per share to acquire MSTI and allocation of purchase price to license		—			—			188,500
Interest paid	$	1,738			—			10,051

See accompanying notes to consolidated financial statements.

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E MED FUTURE, INC.

Formerly Micro-Economics, Inc.

(A Development Stage Company)

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

NOTE 1 BASIS OF PRESENTATION

The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary in order to make the financial statements not misleading have been included. Results for the three months ended March 31, 2004 are not necessarily indicative of the results that may be expected for the year ending December 31, 2004. For further information, refer to the financial statements and related footnotes included in the E Med Future, Inc. annual report on Form 10-KSB for the year ended December 31, 2003.

NOTE 2 SUBSEQUENT EVENTS

On April 1, 2004, the Company entered into a convertible debenture agreement with Dr. Charles O. Mbanefo. The $750,000 debenture bears interest at 7.5% payable quarterly with the principal due in five years and is secured by all of the Company’s assets. The debenture is convertible at Dr. Mbanefo’s option to 1.5 million shares of the Company’s unregistered common stock. Proceeds from the debenture will be used for inventory and operating expenses. In connection with the debenture, the Company also agreed to pay Dr. Mbanefo a $2.00 royalty on the next 1.0 million NeedleZap units sold.

Item 2. Management’s Discussion and Analysis

Headquartered in Columbus, Ohio, E Med Future, Inc. manufactures and markets products designed to reduce accidental hypodermic needlestick injuries. Our primary product, NeedleZap^®, completely disintegrates the sharp portion of the needle. According to the American Nursing Association, there are an estimated one million accidental needlesticks reported in the United States in the healthcare industry alone. We believe the applications for the product are far reaching, and include healthcare professionals, law enforcement and correctional personnel, veterinarians, military, clinical researchers, hospitality, and sanitation workers. NeedleZap is designed to work within the parameters of recent OSHA needlestick mandates which require employers to take advantage of new technologies to prevent needlesticks in the workplace.

Our Products

Our primary product is NeedleZap^®, a revolutionary safety device intended to help reduce accidental needlestick injuries by disintegrating the sharp portion of a hypodermic needle. When a hypodermic needle is inserted into the unit, the patented electrode system disintegrates the needle in approximately two seconds at 2200° F.

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In July 2003, we announced the beginning of clinical testing and market evaluation of the first extensions to the NeedleZap product line which include a dental parking station and butterfly needle burner. Both products are currently in development and we are presently in the process of obtaining patent protection for these new products. We anticipate that both products will involve supplements to our existing FDA pre market approval; therefore, introduction and timing of these products into the marketplace will be contingent on FDA approval.

The dental parking station is intended to provide a safer, temporary resting place for a hypodermic syringe. During a procedure, dentists often reuse a hypodermic needle on the same patient when additional anesthesia is required. Since the needle is not destroyed immediately after the initial use, dentists often recap the needle or leave the needle exposed, increasing the risk of an accidental needlestick injury. The NeedleZap unit sets directly on the dental parking station enabling the dentist to recap, or disintegrate, the hypodermic needle easily with one hand at the end of the procedure, and significantly reducing the risk of a needlestick injury.

The butterfly needle burner is intended to accommodate needles not secured to a hypodermic syringe. Butterfly needles are used primarily for IV’s and kidney dialysis. Since the original NeedleZap unit was intended to disintegrate hypodermic needles held by a syringe, the butterfly needle burner necessitated design modifications, including a change to the housing and repositioning of the electrode system.

To further expand our product offerings, we have entered into a strategic alliance agreement with UTEK Corporation (AMEX:UTK), an innovative technology transfer company dedicated to building bridges between university developed technologies and commercial organizations. UTEK will identify and evaluate new technologies developed by universities and government laboratories that would be synergistic with our existing product line for our possible acquisition.

On December 30, 2003, we acquired Medical Safety Technologies, Inc. from UTEK. Medical Safety Technologies, or MSTI, holds the worldwide exclusive license to a patented invention, known as the Safe Receptacle for Sharps, that is designed to aid in the safe transport of sterile and used sharp medical instruments. This Emory University invention was developed to help reduce the possibility of needlestick injuries by maintaining medical instruments in an angled, accessible position while encasing their sharp edges. We are enthusiastic about adding the Safe Receptacle for Sharps device to our product line and believe that it is a complimentary technology to our NeedleZap^® product. By expanding our future product line, we hope to bring added value to the sales and distribution channel we are building.

Recent Events

On April 1, 2004, we entered into a convertible debenture agreement with Dr. Charles O. Mbanefo in the amount of $750,000. The debenture bears interest at 7.5% payable quarterly with the principal due in five years and is secured by all of our assets. The debenture is convertible at Dr. Mbanefo’s option into 1.5 million shares of our unregistered common stock. Proceeds from the debenture will be used for inventory and operating expenses. In connection with the debenture, we also agreed to pay Dr. Mbanefo a $2.00 royalty on each of the next 1.0 million NeedleZap units sold.

In May, we announced that our exclusive sales and marketing partner, American Health & Safety Products, Inc. (AHSP), secured agreements with Patterson Dental Supply, Inc. and

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Sullivan-Schein Dental^® to distribute our dental parking station to the dental community throughout the United States. Patterson Dental Supply provides a virtually complete range of consumable dental products, clinical and laboratory equipment, and value-added services to dentists, dental laboratories and institutions throughout North America. Sullivan-Schein Dental, a Henry Schein Company, offers a broad array of products and services to dental customers. The company currently serves more than 75% of the dental practices in the United States.

In May we also announced that E Med has received a registration number from the Mexican Health Department (Secretaria de Salud) to sell NeedleZap through our distribution partners in Mexico, Intrasol de Mexico, S.A. de C.V. and AHSP.

Looking Ahead

We incurred net losses in 2002 and 2003 while we obtained FDA approval for our NeedleZap product, applied for patent protection and entered into distribution relationships. We have not had significant sales volume to date, but now that we have FDA approval and established distribution channels, we are excited about the prospect for sales in the United States and abroad. There are an estimated one million accidental needlesticks reported in the United States in the healthcare industry alone, and we believe the applications for our products are far reaching. NeedleZap is designed to work within the parameters of recent OSHA needlestick mandates which require employers to take advantage of new technologies to prevent needlesticks in the workplace. We also believe there is a potential global market in developed as well as developing countries. For example, NeedleZap could be a component in the fight against AIDS in many African countries where the disease is endemic. With all regulatory matters resolved, we anticipate an increase in sales in 2004. Of course, we cannot guaranty that sales will increase or that we will be able to attain profitability.

Our History

The Company was formed under the laws of the State of Nevada on March 14, 1990, but until last year we were a shell company with no significant operations other than seeking to identify an existing business to acquire. Trading in our stock was dependant on our acquisition of an operating business. On April 4, 2003, we participated in a merger in which we acquired E Med Future, Inc., our operating subsidiary. In connection with the transaction, we issued 19,850,000 unregistered shares of our common stock (95% of our outstanding shares) to the former stockholders of E Med Future.

Pursuant to the terms of the merger agreement, we changed our corporate name from “Micro-Economics, Inc.” to “E Med Future, Inc.” In addition, our original directors resigned and were replaced by Robert J. Ochsendorf, D. Dane Donohue and Juan J. Perez. Messrs. Ochsendorf and Donohue now serve as our CEO and executive vice president, respectively. Our shares began trading on the Over-the-Counter Bulletin Board under the symbol “EMDF.OB” on April 17, 2003. For additional information about the merger, please see the Current Report on Form 8-K dated April 4, 2003 that we filed with the SEC on April 11, 2003.

In December 2001, we filed a pre-market approval application, or PMA, with The Center for Devices and Radiological Health (CDRH) of the Food and Drug Administration (FDA) for NeedleZap. On the basis of counsel’s advice, we determined that NeedleZap was not regulated by the CDRH as a medical device in veterinarian or law enforcement applications. Therefore, we

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opted to market NeedleZap in the United States to veterinarians and law enforcement professionals. Revenues generated from these sales would offset the costly and lengthy FDA approval process and provide funding for promotion, tooling, parts and the overall operations.

In July 2002, we received an approvable letter from the FDA stating that NeedleZap met all the requirements for the safety and effectiveness data testing for a Class III medical device. The approvable letter was subject to an FDA inspection that found the manufacturing facilities, methods and controls in compliance with the applicable requirements of FDA quality system regulation. During the manufacturing inspectional phase in August 2002, the FDA requested that we suspend all sales to veterinarian and law enforcement markets until the product was fully approved. We voluntarily complied with the FDA’s request and suspended all sales in U.S. markets.

On March 14, 2003, the FDA issued a final approval order letter for NeedleZap. Final labeling was submitted and approved on March 19, 2003, clearing the way to market NeedleZap in the United States in healthcare facilities and treatment settings.

Results of Operations

We are a development stage company. Because we did not have full approval to market and sell our products until March 2003, we do not believe a detailed comparison of results from the first quarter of 2004 to 2003 to be informative. For addition information regarding the history of our business, please see “Our History” above.

Net Sales

We had net sales of $129,026 in the quarter ended March 31, 2004, compared with $50,542 for the same period in 2003, an increase of $78,484 or 155.3%. This increase is primarily attributable to increased international sales and U.S. sales following the FDA’s approval of NeedleZap in March 2003.

Costs and Expenses

Operating costs and expenses decreased $473,462, or 65.1%, to $254,161 in the first quarter of 2004 from $727,623 in 2003. The first quarter of 2003 was impacted by $600,000 in stock based compensation expenses as a result of our issuance of four million shares in April 2003 as compensation for consulting services previously rendered. This effect was partially offset by increased selling, general and administrative expense in 2004 due to higher distributor training and promotional costs. As a percentage of net sales, cost of goods sold decreased to 58.7% in 2004 from 129.2% in 2003 due to increased sales in 2004.

Other expenses increased to $1,738 in 2004 from none in 2003, due to an increase in interest expense resulting from higher balances outstanding on our interest bearing debt in 2004.

Net Loss

In the first quarter of 2004, our net loss decreased to $126,873, or $0.01 a share, from a net loss of $677,081 in 2003 as a result of increased sales combined with lower costs.

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Financial Condition and Liquidity

We had available cash of $5,002, on March 31, 2004, compared to $7,964 at the end of the first quarter of 2003. Cash used in operations increased 130.1% to $138,622 in the first quarter of 2004 from $60,252 in 2003, primarily caused by an increase in accounts payable to a related party as we borrowed to fund the build-up of inventory in 2004.

On November 12, 2002, we entered into a credit facility with KeyBank (NA). The facility provides us with a working capital line-of-credit of up to $150,000 and currently bears interest at 4.5%. The credit facility is secured by all of E Med’s assets and must be paid back in full on demand. We presently have drawn $141,098 on the facility.

In 2003, our director of research purchased an existing $215,585 loan and advanced additional funds bringing total funds advanced to $320,585. In the first quarter of 2004, we repaid $53,500 of this loan, reducing the outstanding balance to $267,085. The new consolidated loan is due December 31, 2006 and bears interest at 7%.

Our primary need for capital is to fund operations and the development of new products. Historically, our capital requirements have been met by a combination of loans from stockholders, our line of credit with Key Bank, and funds from operations. In April we addressed our immediate liquidity needs by selling a $750,000 debenture. For more information about the debenture, please turn to “Recent Events” on page 7. Now that our distributors have had sufficient ramp-up time, we expect increased sales to meet our capital needs. In addition, we are developing new NeedleZap products to help generate additional revenues. However, sales may not be adequate to meet our cash needs, which would negatively impact our operations and development of new and ancillary products.

Off-Balance Sheet Arrangements

We do not have any material off-balance sheet arrangements.

Forward Looking Statements

Some of the statements that we make in this report, including statements about our confidence in E Med’s prospects and strategies and our expectations about E Med’s sales expansion, are forward-looking statements within the meaning of § 21E of the Securities Exchange Act. Some of these forward-looking statements can be identified by words like “believe,” “expect,” “will,” “should,” “intend,” “plan,” or similar terms; others can be determined by context. Statements contained in this report that are not historical facts are forward-looking statements. These statements are necessarily estimates reflecting our best judgment based upon current information, and involve a number of risks and uncertainties. Many factors could affect the accuracy of these forward-looking statements, causing our actual results to differ significantly from those anticipated in these statements. While it is impossible to identify all applicable risks and uncertainties, they include:

• our ability to execute our business plan;

• our ability to successfully market and sell our products;

• our ability to gain and retain market share from our competitors, many of whom have greater financial and other resources than we do;

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• the introduction of competing products by other firms;

• our ability to protect our patents, copyrights and other intellectual property rights;

• pressure on pricing from our competitors or customers;

• continued availability of components for our products and stability in the cost of these components;

• our reliance on subcontractors to manufacture our products;

• our financial resources are limited and we are dependant on increasing sales to generate cash for operations; and

• our ability to continue to comply with rules and regulations governing our products.

You should not place undue reliance on our forward-looking statements, which reflect our analysis only as of the date of this report. The risks and uncertainties listed above and elsewhere in this report and other documents that we file with the Securities and Exchange Commission, including our annual report on Form 10-KSB, quarterly reports on Form 10-QSB, and any current reports on Form 8-K, must be carefully considered by any investor or potential investor in E Med.

How to Learn More About E Med

We file annual, quarterly and special reports and other information with the SEC. Our SEC filings are available to the public over the internet at the SEC’s web site at SEC.gov. You may also read and copy any document we file at the SEC’s public reference room at 450 Fifth Street, N.W., Washington, D.C. 20549. You may obtain information on the operation of the SEC’s public reference room in Washington, D.C. by calling the SEC at 1-800-SEC-0330. To learn more about E Med you can also contact us directly at the address or phone number listed below or visit our website at NeedleZap.com.

E Med Future, Inc.

794 Morrison Road

Suite 911

Columbus, Ohio 43230

Phone: 877- 855-1319

Email: info@NeedleZap.com

Item 3. Controls and Procedures

Robert J. Ochsendorf, our President and Chief Executive Officer, and D. Dane Donohue, our Executive Vice President, have reviewed E Med’s disclosure controls and procedures as of March 31, 2004. Based upon their review, they believe that our disclosure controls and procedures are effective in ensuring that material information related to E Med is communicated to them by others within the company responsible for reporting this information.

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PART II — OTHER INFORMATION

Item 1. Legal Proceedings

Not applicable.

Item 2. Changes in Securities and Use of Proceeds

Not applicable.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Submission of Matters to a Vote of Security Holders

Not applicable.

Item 5. Other Information

Not applicable.

Item 6. Exhibits and Reports on Form 8-K

(a) Exhibits

31.1	CEO’s Rule 13a-14(a)/15d-14(a) Certification Pursuant to § 302 of the Sarbanes-Oxley Act of 2002
31.2	CFO’s Rule 13a-14(a)/15d-14(a) Certification Pursuant to § 302 of the Sarbanes-Oxley Act of 2002
32	Rule 13a-14(b)/15d-14(b) Certification Pursuant to § 906 of the Sarbanes-Oxley Act of 2002

(b) Reports on Form 8-K

On March 15, 2004, we filed a Current Report on Form 8-K dated December 30, 2003 including the audited financial statements of Medical Safety Technologies, Inc. as of December 30, 2003 and E Med’s pro forma financial information giving effect to the acquisition of Medical Safety Technologies.

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SIGNATURES

In accordance with the requirements of the Exchange Act, E Med Future, Inc. caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	E MED FUTURE, INC.
Date: May 14, 2004	By	/s/ D. Dane Donohue
		D. Dane Donohue, Executive Vice President

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