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EX-32.2 - SECTION 1350 CERTIFICATIONS OF CFO - Genmed Holding Corpf10k_322-genm.htm
EX-32.1 - SECTION 1350 CERTIFICATIONS OF CEO - Genmed Holding Corpf10k_321-genm.htm
EX-31.1 - RULE 13A-14(A) / 15D-14(A) CERTIFICATION OF CHIEF EXECUTIVE OFFICER - Genmed Holding Corpf10k_311-genm.htm
EX-31.2 - RULE 13A-14(A) / 15D-14(A) CERTIFICATION OF CHIEF FINANCIAL OFFICER - Genmed Holding Corpf10k_312-genm.htm
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
 THE SECURITIES EXCHANGE ACT OF 1934

For The Fiscal Year Ended December 31, 2011
Commission file number 000-27279
 


GENMED HOLDING CORP.
(Exact name of registrant as specified in its charter)

Nevada
 
88-0390828
(State or other jurisdiction
of incorporation or organization)
 
(I.R.S. Employer Identification No.)
     
     
 Rontgenlaan 37, 2719 DX Zoetermeer, The Netherlands    2719DX
  (Address of principal executive offices)    (Zip Code)
     
   Registrant's telephone number including area code 011-31-793-630-129  
     
   Securities registered pursuant to Section 12(b) of the Exchange Act:  None  
     
 Title of each class   Name of each exchange on which registered 
     
     
 
Securities registered pursuant to Section 12(g) of the Act:  Common Stock $0.001 par value
 
 
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act
[  ] Yes                      [X] No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
[  ] Yes                      [X] No
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 [   ]

 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceeding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes [  ]   No [X]
 
 
1

 
 
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
Yes [X]   No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  [  ]                                                                                                           Accelerated filer  [  ]

Non-accelerated filer   [  ] (Do not check if a smaller reporting company)                           Smaller reporting company  [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes [  ]  No  [X]

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter. $2,045,000.

APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes  [  ]  No  [  ]

(APPLICABLE ONLY TO CORPORATE REGISTRANTS)

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date. 294,875,387 shares outstanding as of April 16, 2012

DOCUMENTS INCORPORATED BY REFERENCE
None
 
 
2

 
GENMED HOLDING CORP.
 
FORM 10-K

TABLE OF CONTENTS
 
Item #
 
Description
 
Page Numbers
           
   
PART I
 
4
 
           
ITEM 1
 
BUSINESS
 
4
 
           
 ITEM 1A
 
RISK FACTORS
 
6
 
           
ITEM 1B
 
 UNRESOLVED STAFF COMMENTS
 
6
 
           
ITEM 2
 
PROPERTIES
 
6
 
           
ITEM 3
 
LEGAL PROCEEDINGS
 
6
 
           
ITEM 4
 
SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS
 
7
 
           
   
PART II
 
7
 
           
ITEM 5
 
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES
 
 
7
 
           
ITEM 6 
 
 SELECTED FINANCIAL DATA
 
9
 
           
ITEM 7
 
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
 
9
 
           
 ITEM 7A
 
 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 
11
 
           
ITEM 8
 
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
 
12
 
           
ITEM 9
 
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
 
29
 
           
ITEM 9A
 
CONTROLS AND PROCEDURES
 
29
 
           
   
PART III
 
30
 
           
ITEM 10
 
DIRECTORS, EXECUTIVE OFFICERS, CORPORATE GOVERNANCE
 
30
 
           
ITEM 11
 
EXECUTIVE COMPENSATION
 
31
 
           
ITEM 12
 
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT  AND RELATED STOCKHOLDER MATTERS
 
31
 
           
ITEM 13
 
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
 
32
 
           
ITEM 14
 
PRINCIPAL ACCOUNTANTS FEES AND SERVICES
 
34
 
           
   
 PART IV
 
35
 
           
ITEM 15
 
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
 
35
 
           
   
SIGNATURES
 
36
 
           
       
           
       
           
       
           
       


 
3

 

PART I

ITEM 1.          BUSINESS

               FORWARD-LOOKING STATEMENTS; This annual report contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. In addition, Genmed Holding Corp., (formerly Satellite Newspapers Corp.) (the “Company”), may from time to time make oral forward-looking statements. Actual results are uncertain and may be impacted by many factors. In particular, certain risks and uncertainties that may impact the accuracy of the forward-looking statements with respect to revenues, expenses and operating results include without imitation; cycles of customer orders, general economic and competitive conditions and changing customer trends, technological advances and the number and timing of new product introductions, shipments of products and components from foreign suppliers, and changes in the mix of products ordered by customers. As a result, the actual results may differ materially from those projected in the forward-looking statements.

Because of these and other factors that may affect the Company’s operating results, past financial performance should not be considered an indicator of future performance, and investors should not use historical trends to anticipate results or trends in future periods.

Summary

The Company is actively seeking to develop its business of the sale and distribution of generic drugs through its wholly owned subsidiary Genmed B.V.

Previous Operations – General

Genmed Holding Corp. was originally formed as Beck & Co., Inc., a Nevada corporation on April 14, 1998, to operate as a specialty retailer of fine jewelry.  Subsequent to its formation, the Company engaged in several acquisitions, name changes, and changes in the Company’s operations.  From July 29, 2000 until August 27, 2002, the Company developed fuel cell technologies for commercial and industrial use as GreenVolt Corp., an Ontario, Canada corporation.  On August 27, 2002, Satellite Holdings, Ltd., a corporation organized under the laws of Turks & Caicos, acquired a majority of the issued and outstanding common stock of the Company, and on August 28, 2002, the Company changed its name to Satellite Enterprises Corp.

On June 20, 2003, the Company entered into a Rights Agreement with Satellite Newspapers Worldwide NV, a corporation organized under the laws of The Netherlands (hereinafter, “Satellite Newspapers”) whereby the Company was the exclusive distributor to promote the sale and/or lease of Satellite Newspapers’ newspaper kiosks and the associated content distribution technology for which Satellite Newspapers had developed the technology and owned the patents.  In October 2003, Satellite Newspapers sold its patents, software and trademarks to Media Finance en Suisse Holding GmbH, a Swiss corporation (hereinafter, “Media Finance”). Thereafter, Media Finance set up an operating subsidiary, Satellite Newspapers Suisse GmbH, a Swiss corporation (hereinafter, “Satellite Swiss”). Media Finance granted Satellite Swiss a twenty-year exclusive license to distribute all satellite derived contents for the purpose of commercializing their product under a revenue sharing arrangement and on November 26, 2003, the Company entered into a Stock Purchase Option Agreement with Media Finance for the purchase of 100% of Satellite Swiss. On February 15, 2004, the Company exercised its option and acquired 100% of Satellite Swiss. Satellite Swiss consisted of two subsidiaries, Satellite Newspapers Content BV, a Dutch corporation, and Satellite Newspapers Trading BV, a Dutch corporation, which had the production rights to produce and sell the kiosks.

In June 2005, Swiss Satellite incorporated two new Swiss subsidiary entities. Satellite Newspapers Content GmbH and Satellite Newspapers Trading GmbH. Except for the Development and Network Management, the Swiss Companies took over all activities from the Dutch Companies. On November 30, 2005, the Company changed its name from Satellite Enterprises Corp. to Satellite Newspapers Corp. and the Company’s quotation symbol on the OTC Bulletin Board changed from SENR to SNWP.

On October 1, 2006, Satellite Newspapers Suisse GmbH, Satellite Newspapers Content GmbH, Satellite Newspapers Trading GmbH, the Swiss operating company’s of Satellite, ceased operations. Such companies were unable to fund their ongoing operations and cover their expenses. From October 1, 2006 to April 17, 2008, the Company has had no operations and generated no revenue. On January 23, 2007, Satellite Newspapers Suisse GmbH, Satellite Newspapers Content GmbH, and Satellite Newspapers Trading GmbH were declared bankrupt by the court in Zug, Switzerland.

 
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On October 22, 2007, the Company's board of directors and majority of its shareholders approved by means of a written resolution to effect a 2000-to-1 reverse stock split of the Company's issued and outstanding common stock, par value $.001 per share, pursuant to which each two thousand (2000) shares of the Company’s issued and outstanding Common Stock would be combined and consolidated into one share of common stock and to authorize the board of directors of the Company to amend its Articles of Incorporation by issuing, without further shareholder action, one or more series of preferred stock from its authorized 500,000,000 shares of preferred stock. On January 28, 2008, the reverse stock split of the Company became effective.

On December 12, 2007, the Company's board of directors and majority of its shareholders approved a change of the Company’s corporate name from Satellite Newspapers Corp. to Genmed Holding Corp. by filing an amendment to its Articles of Incorporation with the Secretary of State of the State of Nevada on December 12, 2007. 

On April 17, 2008, the Company acquired, by a Stock Exchange Agreement, GenMed B.V. (“Genmed B.V.”), a company organized in The Netherlands, which is engaged in the production and distribution of generic drugs.  Genmed B.V. maintains a network of manufacturing and distribution relationships in The Netherlands, Belgium, Luxembourg, United Kingdon, Ireland, Germany and France as well as some other countries located outside the European Union to supply low cost generic drugs to retail chains. Genmed B.V. currently is seeking contracts with retail chains and government agencies and multi-national corporations in the previous mentioned countries and is currently also in the process of obtaining registrations for its product in Spain, Poland, Czech Republic, Slovakia and the Baltic States.

Genmed is currently seeking to develop its business of the sale and distribution of generic drugs through its wholly owned subsidiary Genmed B.V.

Governmental Regulation

The Company is, and will continue to be, subject to several and varying governmental regulations. In general, as a generic drug seller and distributor, the Company  is subject it to environmental, public health and safety, land use, trade and other governmental regulations, and national, state, or local taxation or tariffs.  The Company’s management will endeavor to ascertain and comply with all applicable to the business of the Company. However, it may not be possible to predict with any degree of accuracy all applicable regulations or the impact of government regulation, and, compliance with such regulation will require certain efforts and resources of the Company.

Employees

Besides its officers, the Company presently employs one employee, who is solely responsible for the sales and marketing of the Company’s product(s) within the European Union. Management of the Company expects to use consultants, attorneys, and accountants as necessary, and does not anticipate a need to engage any other full-time employees until absolutely necessary for the operations of the Company. The need for employees and their availability will be addressed in connection with the scope and requirements of the operations of the Company.

Risk Factors

Financial position of the Company, working capital deficit; report of independent auditors. Due to the fact that the Company was obliged to file additional variations with the appropriate authorities to enter certain markets and consequently the delay that this caused,  the Company was not able to generated revenues in the fiscal year ended December 31, 2011. While awaiting the approvals on the variations from the appropriate authorities, the Company maintained and expanded its network of distribution relationships in the countries in which it obtained the Marketing Authorizations to market and sell the product. The Company also started negotiations with distributors in other countries in the European Union, which made the Company decide to start the process of registering its product in 7 additional EU countries, among them are Spain, Czech Republic, Poland, Slovakia and the Baltic States.
The Company, which is to be considered as a startup Company in this business, is currently developing its business of the sale and distribution of generic drugs and strives to start generating revenues through the sales of generic drugs in 2012. The Company makes no assurances that the Company will generate sufficient revenues through its operations and be able to continue as a going concern.

 
5

 
The independent accountant’s report on the Company’s financial statements for the year ended December 31, 2011, contains an explanatory paragraph regarding the Company’s ability to continue as a going concern.  See “Item 8. Financial Statements and Supplementary Data,” herein.

Risks of Leverage.  The Company has, and likely will continue to, incur substantial borrowings, notes, debentures, and/or other Company debt for the purpose of developing Company operations and for financing the expansion and growth of the Company, including the possible acquisition of other companies.  Any amounts borrowed will depend among other things, on the condition of financial markets.  Acquisitions of equipment, vehicles, or other companies purchased on a leveraged basis generally can be expected to be profitable only if they generate, at a minimum, sufficient cash revenues to pay interest on, and to amortize, the related debt, to cover operating expenses and to recover the equity investment.  The use of leverage, under certain circumstances, may provide a higher return to the shareholders but will cause the risk of loss to the shareholders to be greater than if the Company did not borrow, because fixed payment obligations must be met on certain specified dates regardless of the amount of revenues derived by the Company.  If debt service payments are not made when due, the Company may sustain the loss of its equity investment in the assets securing the debt as a result of foreclosure by the secured lender.  Interest payable on Company borrowings, if any, may vary with the movement of the interest rates charged by banks to their prime commercial customers.  An increase in borrowing costs due to a rise in the “prime” or “base” rates may reduce the amount of Company income and cash availability for dividends.

Competition. Genmed hopes to provide the European countries with generic drugs at lower prices than other suppliers. To do this, the Company intends to make agreements with manufacturers outside the EU who produce drugs that meet EU and FDA standards. Such manufacturers are able to offer a complete assortment of drugs, and their factory sales prices are considerably lower than those of the generics that are being sold in the EU at this moment. Because of this,  Genmed hopes to have a strong price advantage over its competitors.

We expect to conduct our business with a low overhead, lower than that of the other companies in this market. This is possible because Genmed will execute its affairs as much as possible as an agency in order to keep its costs low. The main activity of the agency is to provide the registration requirements and quality control. Our buyers will take care of the logistics, storage and marketing. Genmed will take a fee for the registration ownership of the drugs and a commission on the delivered goods. In the many pharmaceutical markets, this is a unique business model.

ITEM 1A.          RISK FACTORS

Smaller reporting companies are not required to provide the information required by this item.

ITEM 1B.           UNRESOLVED STAFF COMMENTS

None.

ITEM 2.          PROPERTIES

Currently, we lease our office space at Röntgenlaan 37, 2719 DX Zoetermeer, The Netherlands; our telephone number is 011-31-793-630-129.
 
ITEM 3.          LEGAL PROCEEDINGS

From time to time, the Company may be a party to litigation or other legal proceedings that we consider to be part of the ordinary course of our business.

The Company has been named as a defendant in a lawsuit filed in the Circuit Court of the 11th Judicial Circuit in Miami-Dade County, Florida, Case No. 08-79227CA25. The Company’s former Chief Executive Officer, Jerri Palmer, has instigated the lawsuit against the Company alleging Breach of Contract and Unjust Enrichment.  Ms. Palmer is claiming damages in excess of $15,000. Ms. Palmer was the Company’s Chief Executive Officer from December 5, 2005, until her resignation on May 19, 2006.  The Company has alleged counter claims against Ms. Palmer for breach of contract and breach of fiduciary duty.

 
6

 
In March 2010, the Company and Ms. Palmer have settled the lawsuit for an amount of $40,000.  The Company accrued this settlement in the 2009 financial statements.

On July 20, 2010, since the Company was not able to pay this amount, Ms. Palmer entered into a final judgment against the Company for $40,000 bearing an annual interest rate at 6%. In July the Company and Ms. Palmer agreed upon a payment plan for 6 installments payable at the end of each month. On December 29, 2010, the Company made the final installment after which the case was resolved and fully concluded.


ITEM 4.          SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

During the year ended December 31, 2011, the Company had no submission of matters to a vote of security holders.
 
PART II
 
ITEM 5.          MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
 
Market Information

Our common stock is quoted on the OTC Electronic Bulletin Board under trading symbol “GENM.”  For the periods indicated, the following table sets forth the high and low bid prices per share of common stock. These prices represent inter-dealer quotations without retail markup, markdown, or commission and may not necessarily represent actual transactions.

   
HIGH
   
LOW
 
             
FISCAL YEAR ENDED DECEMBER 31, 2010
           
             
First Quarter                                                                            
  $ 0.25     $ 0.06  
Second Quarter                                                                            
  $ 0.21     $ 0.07  
Third Quarter                                                                            
  $ 0.41     $ 0.21  
Fourth Quarter                                                                            
  $ 0.50     $ 0.35  
                 
FISCAL YEAR ENDED DECEMBER 31, 2011
               
                 
First Quarter                                                                            
  $ 0.52     $ 0.12  
Second Quarter                                                                            
  $ 0.18     $ 0.06  
Third Quarter                                                                            
  $ 0.08     $ 0.03  
Fourth Quarter                                                                            
  $ 0.05     $ 0.02  
                 
FISCAL YEAR ENDING DECEMBER 31, 2012
               
                 
First Quarter                                                                            
  $ 0.04     $ 0.02  


As of April 16, 2012, there were 294,875,387 shares of common stock of the Company issued and outstanding. The closing price for the Company's Common Stock on April 13, 2012, was $0.02 per share.

Dividends

It has been the policy of the Company to retain earnings, if any, to finance the development and growth of its business.

 
7

 
 
Notes

On June 30, 2009, the Company and two note holders agreed upon the consolidation of their notes, including the unpaid interest, and to issue a new 100% Premium Secured Convertible Promissory Note. The new note is issued for the amount of $925,000, bears an annual interest rate of 8% and is convertible into shares of the Company’s Common Stock at a share price of $0.04 per share.   The Secured Promissory Note is due on June 30, 2010.  A beneficial conversion feature of $462,500 was recognized as part of this conversion and is being amortized over the year of the Secured Promissory Note.

On December 31, 2009, the Company and Mr. Bouwens, the CEO of the Company, agreed upon the conversion of his note, including the unpaid interest, and to issue a new 100% Premium Secured Convertible Promissory Note. The new note is issued for the amount of $221,557, bears an annual interest rate of 8% and is convertible into shares of the Company’s Common Stock at a share price of $0.04 per share.   The Secured Promissory Note was due on December 31, 2010.  A beneficial conversion feature of $110,779 was recognized as part of this conversion and is being amortized over the year of the Secured Promissory Note.

On March 3, 2010, the holders of the Convertible notes have converted their notes including the unpaid interest into shares of the Company’s Common Stock. As such, the Company has issued 29,948,794 of newly shares of Common Stock of the Company.
 
       The Company has received other loans from individuals related to the Company at various times for working capital and to fund required operating expenses. Loans received in 2011 and 2010 amounted to approximately $0 and $13,000 (€10,000), respectively. Amounts repaid in 2011 and 2010 amounted to approximately $78,000 (€57,000) and $50,000 (€38,080), respectively. These advances were unsecured and bore interest at the rate of 8% per year. The amounts outstanding at December 31, 2011 and 2010 aggregate $38,850 and $119,822 respectively.

           In August 2010, the Company has requested the related note holders and its officers to subordinate the loans and unpaid interest as well as unpaid fees and salaries receivable from the Company to all bonds that have been issued and will be issued for the term of such bonds. At August 25, 2010, the Company and the related note holders as well as the officers of the Company entered into various subordination agreements, subordinating a total amount of approximately $960,000. The new notes bear an annual interest of 7.8%, payable each calendar quarter and include an option to convert the subordinated amounts into shares of Common Stock of the Company at a fixed conversion price of $0.04 per share.  A beneficial conversion feature of approximately $960,000 was recognized as part of this conversion and was amortized as interest expense at the issuance date as the notes are convertible immediately.

On December 8, 2010, two subordinated note holders sold their note and other amounts receivable from the Company including the unpaid interest to an unrelated party. The Company issued a new 10% Secured Convertible Debenture with the new party.  The new note is issued for the amount of $855,960, bears an annual interest rate of 10% and is convertible into shares of the Company’s Common Stock equal to the lesser of (i) $0.02 per share, or (ii) if the shares are quoted, listed or admitted to trading on the OTCBB, any national securities exchange or quotation system, 50% of the lowest “Bid”price on the date of conversion.
The debenture is subordinated to all outstanding Bond Agreements of the Company as the debt originated from the conversion of subordinated debt agreements.

On December 8, 2010, the Company and a subordinated note holder, agreed upon the conversion of the subordinated note, including the unpaid interest and any other amount owed to him, and to issue a new 10% Secured Convertible Debenture. The new note is issued for the amount of $132,914, bears an annual interest rate of 10% and is convertible into shares of the Company’s Common Stock equal to the lesser of (i) $0.02 per share, or (ii) if the shares are quoted, listed or admitted to trading on the OTCBB, any national securities exchange or quotation system, 50% of the lowest “Bid”price on the date of conversion.
The debenture is subordinated to all outstanding Bond Agreements of the Company as the debt originated from the conversion of subordinated debt agreements

On June 10, 2011, the Company and a subordinated note holder, agreed upon the conversion of the subordinated note into shares of the Company’s Common Stock. An amount of $70,757 was converted at $0.04 per share into 1,768,928 shares of the Company’s Common Stock.

 
8

 

On December 14, 2011, the Company and a subordinated note holder, agreed upon the conversion of the subordinated note and the unpaid interest on the note into shares of the Company’s Common Stock. An amount of $39,645 was converted at $0.04 per share into 991,121 shares of the Company’s Common Stock.

On December 14, 2011, the Company and the holder of the 10% Secured Convertible Note agreed upon the conversion of the note and the unpaid interest into shares of the Company’s Common Stock. An amount of $137,328 was converted at $0.01 per share into 13,732,787 shares of the Company’s Common Stock.

On December 14, 2011, the Company and the holder of the 10% Secured Convertible Note agreed upon the conversion of the note into shares of the Company’s Common Stock. An amount of $855,960 was converted at $0.01 per share into 85,595,977 shares of the Company’s Common Stock.


Notes (Bonds)

During the third and fourth quarters of 2010, as part of the implementation of its business plan, the Company issued approximately €866,000 ($1,147,500) in bonds. During the year ended December 31, 2011, the Company issued an additional €1,072,000 (approximately $1,472,000) in bonds.  The bonds have a term of 48 months and, depending on the participated amount, bear an annual interest rate of 7.4% or 7,8%. The Bonds are recallable, after 10, 22 or 34 months, with a notice of two months and with a penalty of 10% of the value of the bond, up to a yearly maximum of 5% of the total funds received through the issuances of such bonds. Buyback requests will be handled in order of entries.
 
During the first and second quarter of 2011, the Company has also entered into addendum agreements with some of the bondholders for a conversion feature, whereby the bondholder has the right to convert the bond, or a portion of it, during the term of the bond into shares of the Company’s common stock at prices ranging between $0.13 and $0.50 per share. Holders of approximately $2,088,000 of bonds may convert the bonds into 12,450,282 shares of common stock.
 

ITEM 6.          SELECTED FINANCIAL DATA

Smaller reporting companies are not required to provide the information required by this item.


ITEM 7.          MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF OPERATIONS

When used in this report on Form 10-K, the words "may," "will," "expect," "anticipate," "continue," "estimate," "project," "intend," and similar expressions are intended to identify forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding events, conditions, and financial trends that may affect the Company's future plans of operations, business strategy, operating results, and financial position. Persons reviewing this report are cautioned that any forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties and that actual results may differ materially from those included within the forward-looking statements as a result of various factors. Such factors are discussed under the headings "Item 1. Business," and "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations," and also include general economic factors and conditions that may directly or indirectly impact the Company's financial condition or results of operations.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Moreover, we do not assume responsibility for the accuracy and completeness of such forward-looking statements. We are under no duty to update any of the forward-looking statements after the date of this report to conform such statements to actual results.

The Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made, are based on certain assumptions and expectations which may or may not be valid or actually occur, and which involve various risks and uncertainties, including but not limited to the risks set forth above. In addition, sales and other revenues may not commence and/or continue as anticipated due to delays or otherwise. As a result, the Company’s actual results for future periods could differ materially from those anticipated or projected.

 
9

 
Overview

On December 12, 2007, the Company's board of directors and majority of its shareholders approved a change of the Company’s corporate name from Satellite Newspapers Corp. to Genmed Holding Corp. by filing an amendment to its Articles of Incorporation with the Secretary of State of the State of Nevada on December 12, 2007. 

On April 17, 2008, the Company acquired, by a Stock Exchange Agreement, GenMed B.V. (“Genmed B.V.”), a company organized in The Netherlands, which is engaged in the production and distribution of generic drugs.  Genmed B.V. maintains a network of manufacturing and distribution relationships in The Netherlands, Belgium, Luxembourg, United Kingdon, Ireland, Germany and France as well as some other countries located outside the European Union, to supply low cost generic drugs to retail chains.  Genmed B.V.’s most popular product is Paracetamol (acetaminophen), a generic form of Tylenol. Genmed B.V. currently is seeking contracts with retail chains and government agencies and multi-national corporations in the previous mentioned countries and is currently also in the process of obtaining registrations for its product in Spain, Poland, Czech Republic, Slovakia and the Baltic States.

Genmed is currently seeking to develop its business of the registration, sale and distribution of generic drugs through its wholly owned subsidiary Genmed B.V.

Results of Operations

Comparison of the Years Ended December 31, 2011 and 2010

Revenues. The Company  had no sales  and revenues during the fiscal year ended December 31, 2011 and no sales during the fiscal year ended December 31, 2010. This is because the Company had to submit additional variations to its current product registration and sales licenses in order to be allowed to start with marketing of its product.
 
Selling, General, and Administrative Expenses. The Company incurred selling, general, and administrative expenses of $2,197,461 during the fiscal year ended December 31, 2011 compared to $1,008,655 during the fiscal year ended December 31, 2010. Such increase was due primarily to the $957,000 in consulting expenses which the Company incurred in relation to the issuances of bonds payable. The Company paid $850,000 dollars of such consulting expenses through the issuance of new shares of the Company’s Common Stock.

Impairment of Medical Registration Rights. The Company recorded $5,405,606 in impairment of medical registration rights during the fiscal year ended December 31, 2010, compared to no impairment during the fiscal year ended December 31, 2011. The impairment of Medical Registration Rights in 2010 was due to the inability to obtain authorization to market generic drugs and thus inability to generate revenues originally anticipated for the fiscal years ended 2010 and 2009. The Company was forced to file for additional variations on the current and existing marketing authorizations which is the reason the Company was not able to start the marketing of its product in 2010.

Depreciation and Amortization. The Company incurred $3,576 in depreciation and amortization during the fiscal year ended December 31, 2011, compared to $748,866 in depreciation and amortization during the fiscal year ended December 31, 2010. The decrease in depreciation and amortization expenses are primarily due to the impairment of the Medical Registration Rights in 2010, an asset that was acquired through the purchase of Genmed B.V., our Dutch subsidiary, compared to no such depreciation and amortization during the year ended 2011.

Research and Development. The Company incurred $92,671 in research and development expenses during the fiscal year ended December 31, 2011, compared to $70,777 in such expenses during the fiscal year ended December 31, 2010. Such increase is due to the effect that the Company, since it was granted multiple Marketing Authorizations for its product, is obligated to hire a Contract Safety Surveillance Organization that monitors the ever-changing landscape of regulatory requirements, compliance and patient safety.

Operating Losses. As a result, the Company incurred a net operating loss of $2,293,708 during the fiscal year ended December 31, 2011 compared to a net operating loss of $7,233,904 during the fiscal year ended December 31, 2010.

 
10

 
Other Income (Expenses). The Company incurred, an income on foreign exchange of $27,481, incurred interest expenses of ($264,168), had amortized debt discount $(2,419,306), amortized deferred financing costs $(18,181) and a loss on derivative $(473,981) in the aggregate amount of ($3,148,155) during the fiscal year ended 2011, compared to a loss on foreign exchange of ($10,156), interest expenses of ($60,159) and had amortized debt discount $(424,908) in the aggregate amount of ($495,223) during the fiscal year ended December 31, 2010.
 
       Net Loss.  The Company incurred a net loss of $5,441,863 during the fiscal year ended December 31, 2011, compared to a net loss of $7,729,127 during its fiscal year ended December 31, 2010.
 
 
Liquidity and Capital Resources

At December 31, 2011, we had a working capital of $887,932.

Cash Flows

Net cash used in operating activities was ($1,223,327) for the year ended December 31, 2011 and ($1,031,104) for the year ended December 31, 2010.

Net cash provided by financing activities was $1,284,358 and $1,865,999 for the year ended December 31, 2011 and 2010, respectively. The net cash provided by financing activities for the year ended December 31, 2011 consisted primarily of proceeds from the issuance of bonds payable.

Our auditors have raised, in their current audit report, a substantial doubt about our ability to continue as a going concern. We will be unable to continue as a going concern in the event we are not able to raise capital and are not successful in seeking a business acquisition. Until such time as sufficient capital is raised, we intend to limit expenditures for capital assets and other expense categories.
 
The Company must currently rely on corporate officers, directors and outside investors in order to meet its budget. If the Company is unable to obtain financing from any of one of these aforementioned sources, the Company would not be able to complete its financial obligations. Limited commitments to provide additional funds have been made by management and other shareholders. We cannot provide any assurance that any additional funds will be made available on acceptable terms or at all.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on us.


ITEM 7A.          QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Smaller reporting companies are not required to provide the information required by this item.

 
11

 

ITEM 8.          FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
 
CONTENTS
______________________________________________________________________________________________

Report of Independent Registered Public Accounting Firm - MaloneBailey, LLP
Page    F-1

Report of Independent Registered Public Accounting Firm - Meyler & Company LLC
F-2


Balance Sheets
F-3

Statements of Operations
F-4

Statements of Cash Flows
F-5

Statements of Changes in Stockholders’ Equity
F-7

Notes to Financial Statements
F-8
 
 
12

 
  
 
 

 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
To the Board of Directors
Genmed Holding Corp.
Zoetermeer, The Netherlands
 
We have audited the accompanying consolidated balance sheet of Genmed Holding Corp. and its subsidiaries (collectively, the “Company”) as of December 31, 2011, and the related consolidated statements of operations, stockholders' deficit, and cash flows for the year then ended. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
 
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
 
In our opinion, the accompanying consolidated financial statements of Genmed Holding Corp. and its subsidiaries present fairly, in all material respects, their consolidated financial position as of December 31, 2011, and the consolidated results of their operations and their cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States.
 
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note A, the Company has incurred a series of net losses resulting in negative cash flow from operations during the year ended December 31, 2011. These conditions raise substantial doubt as to the Company's ability to continue as a going concern. Management's plans in regard to these matters are also described in Note A. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
 
/s/ MaloneBailey, LLP
MaloneBailey, LLP
Houston, Texas
 
April 16, 2012
 
 
     
     
     
 
 
 
13

 


 
One Arin Park
Phone 732-671-2244
Certified Public Accountants
 
1715 Highway 35
 
 & Managemnt Consultants  
Middletown, NJ 07748
 


Report of Independent Registered Public Accounting Firm

To the Board of Directors  
Genmed Holding Corp.
Zoetermeer, The Netherlands

We have audited the accompanying consolidated balance sheet of Genmed Holding Corp. and Subsidiaries as of December 31, 2010, and the related consolidated statements of operations, stockholders’ equity (deficit) and cash flows for the year then ended.  Genmed Holding Corp.’s management is responsible for these financial statements. Our responsibility is to express an opinion on these consolidated financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.  Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Genmed Holding Corp. and Subsidiaries as of December 31, 2010, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern.  As discussed in Note A to the consolidated financial statements, the Company has incurred cumulative net losses of $69,995,753 since inception, and had a net loss of $7,729,127 for the year ended December 31, 2010.  These conditions raise substantial doubt about its ability to continue as a going concern.  Management’s plans regarding these matters are also described in Note A.  The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.


/s/ Meyler & Company, LLC

April 16, 2011
Middletown, NJ


 
14

 

GENMED HOLDING CORP. AND SUBSIDIARIES
           
             
CONSOLIDATED BALANCE SHEETS
           
             
 
December 31,
   
December 31,
 
 
2011
   
2010
 
             
ASSETS
           
             
CURRENT ASSETS
           
Cash
  $ 904,489     $ 868,770  
VAT receivable
    8,082       31,890  
Amount due from related party
    -       298,170  
Deferred financing costs, net
    90,906       -  
Prepaid expenses
    29,171       25,916  
    Total Current Assets
    1,032,648       1,224,746  
                 
EQUIPMENT, net accumulated depreciation of $11,926 and $8,798 at December 31, 2011 and December 31, 2010, respectively
    4,715       8,231  
Total Assets
  $ 1,037,363     $ 1,232,977  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT
               
                 
CURRENT LIABILITIES
               
Accounts payable
  $ 89,297     $ 175,109  
Accrued salaries
    5,224       87,351  
Accrued expenses
    7,770       9,511  
Accrued expenses - related parties
    3,575       159,037  
Loans payable to related parties
    38,850       119,822  
    Total Current Liabilities
    144,716       550,830  
                 
LONG TERM LIABILITIES
               
Bonds payable, net of discount of $179,337 and $0 at December 31, 2011 and December 31, 2010, respectively
    2,508,865       1,147,534  
Subordinated convertible debentures, net of discount of $0 and $1,066,198 at December 31, 2011 and December 31, 2010, respectively
    -       35,114  
Total Long Term Liabilities
    2,508,865       1,182,648  
                 
Total Liabilities
    2,653,581       1,733,478  
                 
COMMITMENTS AND CONTINGENCIES
    -       -  
                 
STOCKHOLDERS' DEFICIT
               
Class A Convertible Preferred Stock, par value $0.001; authorized
         
500,000,000 shares; there were no shares issued and outstanding at
         
    December 31, 2011 and December 31, 2010, respectively
    -       -  
Common stock, par value $0.001; authorized 500,000,000 shares;
         
issued and outstanding 294,875,387 and 164,977,533 shares at
         
    December 31, 2011 and December 31, 2010, respectively
    294,874       164,976  
Additional paid-in capital
    73,425,940       69,302,178  
Accumulated deficit
    (75,437,616 )     (69,995,753 )
Accumulated other comprehensive income
    100,584       28,098  
    Total Stockholders' Deficit
    (1,616,218 )     (500,501 )
                 
     Total Liabilities and Stockholders'  Deficit
  $ 1,037,363     $ 1,232,977  
                 
                 
                 
See accompanying notes to consolidated financial statements
               
                 
                 
                 
F 3
 
15

 
GENMED HOLDING CORP. AND SUBSIDIARIES
           
               
CONSOLIDATED STATEMENTS OF OPERATIONS
           
               
               
      For the Years Ended  
      December 31,  
      2011    
2010
 
               
NET SALES
  $ -     $ -  
                   
COST AND EXPENSES:
               
 
Selling, general and administrative
    2,197,461       1,008,655  
 
Depreciation and amortization
    3,576       748,866  
 
Impairment of medical registration rights
    -       5,405,606  
 
Research & development
    92,671       70,777  
 
    Total Costs and Expenses
    2,293,708       7,233,904  
                   
NET OPERATING LOSS
    (2,293,708 )     (7,233,904 )
                   
OTHER INCOME (EXPENSE)
               
 
Income (loss) on foreign exchange
    27,481       (10,156 )
 
Interest expense
    (264,168 )     (60,159 )
 
Amortization - debt discount
    (2,419,306 )     (424,908 )
 
Amortization - deferred financing costs
    (18,181 )     -  
 
Loss on derivative
    (473,981 )     -  
 
Total Other Income (Expense)
    (3,148,155 )     (495,223 )
                   
NET LOSS
  $ (5,441,863 )   $ (7,729,127 )
                   
NET LOSS PER COMMON SHARE
               
 
(BASIC AND DILUTED)
  $ (0.03 )   $ (0.05 )
                   
WEIGHTED AVERAGE COMMON
               
 
SHARES OUTSTANDING
    175,933,177       153,109,653  
                   
                   
                   
                   
                   
See accompanying notes to consolidated financial statements
               
                   
                   
                 
 
F 4
 
 
16

 

GENMED HOLDING CORP. AND SUBSIDIARIES
           
             
CONSOLIDATED STATEMENTS OF CASH FLOWS
           
             
             
   
For the years ended
 
    December 31,  
    2011    
2010
 
CASH FLOWS FROM OPERATING ACTIVITIES
           
Net loss
  $ (5,441,863 )   $ (7,729,127 )
Adjustments to reconcile net loss to cash flows used in operating activities:
               
Depreciation and amortization
    3,576       748,866  
Impairment of medical registration rights
    -       5,405,606  
Amortization of deferred financing costs
    18,181       -  
Loss on settlement of accounts payable
    207,421       -  
Loss on derivative liabilities
    473,981       -  
Amortization of debt discount - bonds
    1,353,108       -  
Amortization of debt discount - convertible debt
    1,066,198       424,908  
Stock-based compensation
    870,040       -  
Changes in operating assets and liabilities:
               
Accounts receivable
    -       81,090  
VAT receivable
    23,807       (27,281 )
Amount due from related party
    298,170       (313,792 )
Prepaid expenses
    (3,255 )     (27,274 )
Accounts payable
    (85,811 )     (83,930 )
Accrued salaries
    -       (135,422 )
Accrued expenses
    4,456       46,888  
Accrued expenses - related parties
    (11,336 )     578,364  
    Net Cash Used in Operating Activities
    (1,223,327 )     (1,031,104 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES
               
Bank overdraft
    -       (493 )
Borrowings on bonds
    1,471,767       1,147,534  
Payments of financing fees
    (109,087 )     -  
Advances from notes payable to related parties
    -       13,252  
Payments on loans payable to related parties
    (78,322 )     (50,463 )
Proceeds from issuance of common stock
    -       756,169  
        Net Cash Provided by Financing Activities
    1,284,358       1,865,999  
                 
EFFECT OF CHANGE IN EXCHANGE RATES ON CASH
    (25,313 )     33,875  
                 
INCREASE (DECREASE) IN CASH
    35,719       868,770  
                 
CASH, BEGINNING OF PERIOD
    868,770       -  
CASH, END OF PERIOD
  $ 904,489     $ 868,770  
                 
                 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
               
                 
CASH PAID FOR:
               
Interest
  $ 289,957     $ 15,692  
Taxes
  $ -     $ -  
                 
NON-CASH INVESTING AND FINANCING TRANSACTIONS:
               
Conversion of convertible debentures into common stock
  $ 1,103,690     $ 1,146,557  
Conversion of accrued interest into common stock
  $ 38,000     $ 51,395  
Conversion of accrued expenses and loans payable to subordinated notes
  $ -     $ 1,101,312  
Beneficial conversion feature on convertible debentures charged to additional paid-in capital
  $ -     $ 1,149,077  
Settlement of derivative liabilities through conversion of related notes payable
  $ 1,827,089     $ -  
Common stock issued for settlement of accrued consulting fees
  $ 207,420     $ -  
                 
See accompanying notes to consolidated financial statements
               
                 
                 
F 5
 
 
17

 
GENMED HOLDING CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
FOR THE YEAR ENDED DECEMBER 31, 2011 AND THE YEAR ENDED DECEMBER 31, 2010
                                                   
                                                   
                                         
Accumulated
       
     
Class A Convertible
               
Additional
         
Other
   
Total
 
     
Preferred Stock
   
Common Stock
         
Paid-In
   
Accumulated
   
Comprehensive
   
Stockholders'
 
     
Shares
   
Amount
   
Shares
   
Amount
   
Capital
   
Deficit
   
Income (Loss)
   
Deficit
 
Balance, December 31, 2009
    -     $ -       123,211,739     $ 123,212     $ 66,240,744     $ (62,266,626 )   $ 5,765     $ 4,103,095  
                                                                   
Conversion of convertible debentures into common stock
                                                               
 
at $0.04 per share
                    29,948,794       29,948       1,168,004                       1,197,952  
Issuance of Common Stock for cash at $0.05 per share
                    417,000       416       20,434                       20,850  
Issuance of Common Stock for cash at $0.06 per share
                    9,200,000       9,200       572,960                       582,160  
Issuance of Common Stock for cash at $0.07 per share
                    2,200,000       2,200       150,959                       153,159  
Beneficial conversion features on convertible debentures
                                    1,149,077                       1,149,077  
Components of comprehensive loss:
                                                               
 
Foreign currency translation
                                                    22,333       22,333  
 
Net loss for the year ended December 31, 2010
                                            (7,729,127 )             (7,729,127 )
 
 Total comprehensive loss
                                                            (7,706,794 )
Balance, December 31, 2010
    -       -       164,977,533       164,976       69,302,178       (69,995,753 )     28,098       (500,501 )
                                                                   
Issuance of Common Stock for promotional services at $0.12 per share
              167,000       167       19,873                       20,040  
Issuance of Common Stock for consultancy services at $0.17 per share
              5,000,000       5,000       845,000                       850,000  
Issuance of Common Stock for conversion of accrued interest payable
                                                         
 
due on subordinated convertible debentures at $0.02 per share
                    1,900,000       1,900       36,100                       38,000  
Issuance of Common Stock for conversion of subordinated convertible
                                                         
 
debenture at $0.04 per share
                    1,768,928       1,769       68,988                       70,757  
Issuance of Common Stock for conversion of subordinated convertible
                                                         
 
debenture at $0.04 per share
                    991,121       991       38,654                       39,645  
Issuance of Common Stock for conversion of subordinated convertible
                                                         
 
debenture at $0.01 per share
                    13,732,787       13,733       123,595                       137,328  
Issuance of Common Stock for conversion of subordinated convertible
                                                         
 
debenture at $0.01 per share
                    85,595,977       85,596       770,364                       855,960  
Issuance of Common Stock for conversion of accrued Consulting
                                                               
 
Fees at $0.02 per share
                    2,633,040       2,633       50,028                       52,661  
Issuance of Common Stock for conversion of accrued Consulting
                                                               
 
Fees at $0.02 per share
                    13,234,666       13,235       251,458                       264,693  
Issuance of Common Stock for conversion of accrued Consulting
                                                               
 
Fees at $0.02 per share
                    4,874,335       4,874       92,613                       97,487  
Settlement of derivative liabilities through conversion of related notes payable
                            1,827,089                       1,827,089  
Components of comprehensive loss:
                                                               
 
Foreign currency translation
                                                    72,486       72,486  
 
Net loss for the year ended December 31, 2011
                                            (5,441,863 )             (5,441,863 )
 
Total comprehensive loss
                                                            (5,369,377 )
Balance, December 31, 2011
    -     $ -       294,875,387     $ 294,874     $ 73,425,940     $ (75,437,616 )   $ 100,584     $ (1,616,218 )
                                                                   
                                                                   
                                                                   
See accompanying notes to consolidated financial statements.
                                                               
                                                                   
                                                                   
 
                                                                 
F 6

 
18

 
GENMED HOLDING CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2011 AND 2010

NOTE A -   NATURE OF BUSINESS AND GOING CONCERN

Nature of Business

Genmed Holding Corp. (“GENM”or the “Company”) through its wholly owned Dutch subsidiary Genmed B.V. is focusing on the delivery of low cost generic medicines directly to distribution chains throughout the world. Generic medicines, which become available when the originator medicines patents has expired, are, due to continuing governmental pressure and new insurance policies, increasingly used as equally effective alternatives to higher-priced originator pharmaceuticals by general practitioners, specialists and hospitals.

Going Concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statements, the Company has incurred cumulative net losses of $75,437,616 and $69,995,753, since inception to December 31, 2011 and 2010 respectively, and had losses from continuing operations of $5,441,863 and $7,729,127 in 2011 and 2010. Management's plans include the raising of capital through the equity markets to fund future operations and the generating of revenue through its business.  Failure to raise adequate capital and generate adequate sales revenues could result in the Company having to curtail or cease operations.  Additionally, even if the Company does raise sufficient capital to support its operating expenses and generate adequate revenues, there can be no assurance that the revenue will be sufficient to enable it to develop business to a level where it will generate profits and cash flows from operations. These matters raise substantial doubt about the Company's ability to continue as a going concern.  The accompanying Financial Statements do not include any adjustments that might result from the outcome of this uncertainty.


NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Codification
Effective July 1, 2009, the Accounting Standards Codification (“ASC”) became the FASB’s officially recognized source of authoritative U.S. generally accepted accounting principles (“GAAP”) applicable to all public and non-public non-governmental entities, superseding existing FASB, AICPA, EITF and related literature. Rules and interpretive releases of the SEC under the authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. All other accounting literature is considered non-authoritative. The switch to the ASC affects the way companies refer to U.S. GAAP in financial statements and accounting policies. Citing particular content in the ASC involves specifying the unique numeric path to the content through the Topic, Subtopic, Section and Paragraph structure.

Consolidated Financial Statements
The consolidated financial statements include the Company and its wholly owned subsidiaries.  All intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Foreign Currency Translation
The Company considers the EURO (“€”) to be its functional currency.  Assets and liabilities were translated into US dollars (“US$”) as of December 31, 2011 and 2010 at the period end exchange rate of €1.00 to US$ 1.29500 and €1.00 to US$ 1.32520. Statement of Operations amounts for the year ended December 31, 2011 and 2010 were translated using the average rates during the periods of €1.00 to US$ 1.39120 and €1.00 to US$ 1.32750. Gains and losses resulting from translating foreign currency financial statements are accumulated in other comprehensive loss, a separate component of stockholders' equity.
 
F 7

 
19

 
GENMED HOLDING CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2011 AND 2010

NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Cash Equivalents
For purposes of reporting cash flows, cash equivalents include investment instruments purchased with a maturity of three months or less.  There were no cash equivalents in 2011 or 2010.

Net Loss Per Common Share
Basic earnings per share (“EPS”) is computed  by dividing the income (loss) available to Common Stockholders by the weighted-average number of common shares outstanding for the period.  Diluted EPS is based on the weighted-average number of shares of Common Stock and Common Stock equivalents outstanding during the periods.
 
Comprehensive Income
Comprehensive income is defined as the change in a business enterprise's equity during a period arising from transactions, events or circumstances relating to non-owner sources, such as foreign currency translation adjustments and unrealized gains or losses on available-for-sale securities.  It includes all changes in equity during a period except those resulting from investments by or distributions to owners.  Comprehensive income is accumulated in accumulated other comprehensive income, a separate component of stockholders' equity(deficit), in the balance sheet.

Equity Based Compensation
The Company accounts for equity based compensation transactions with employees under the provisions of ASC Topic No. 718, “Compensation, Stock Compensation” (“Topic No. 718”). Topic No. 718 requires the recognition of the fair value of equity-based compensation in net income. The fair value of the Company’s equity instruments are estimated using a Black-Scholes option valuation model. This model requires the input of highly subjective assumptions and elections including expected stock price volatility and the estimated life of each award. In addition, the calculation of equity-based compensation costs requires that the Company estimate the number of awards that will be forfeited during the vesting period. The fair value of equity-based awards granted to employees is amortized over the vesting period of the award and the Company elected to use the straight-line method for awards granted after the adoption of Topic No. 718.

The Company accounts for equity based transactions with non-employees under the provisions of ASC Topic No. 505-50, “Equity-Based Payments to Non-Employees” (“Topic No. 505-50”). Topic No. 505-50 establishes that equity-based payment transactions with non-employees shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. When the equity instrument is utilized for measurement the fair value of the equity instrument is estimated using the Black-Scholes option valuation model. In general, the Company recognizes an asset or expense in the same manner as if it was to pay cash for the goods or services instead of paying with or using the equity instrument.

Revenue Recognition
The Company recognizes revenues when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed or determinable and collectability is reasonably assured.  The Company intends to provide countries within the EU and some countries outside the EU with generic drugs at considerable lower prices than other suppliers. For this purpose we make agreements with manufacturers within Europe who produce drugs that meet EU and FDA standards. The Company expects to conduct its business with a low overhead, lower than that of the other companies in this market. This is possible because the Company will execute its affairs as much as possible as an agency in order to keep its costs low. The main activity of the agency is to provide the registration requirements and quality control. The Company’s buyers will take care of the logistics, storage and marketing. The Company will take a fee for the registration ownership of the drugs and a commission on the delivered goods.

Research and Development Costs
All research and development costs are expensed as incurred.

Equipment and Depreciation
Equipment is stated at cost less accumulated depreciation and is depreciated on the straight-line method over the estimated use life, which is five years. Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over the estimated useful life of the equipment. Depreciation and amortization expense for the years ended December 31, 2011 and 2010, amounted to $3,576 and $3,412, respectively.
 
F 8

 
20

 
GENMED HOLDING CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2011 AND 2010

NOTE B -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Medical Registration Rights and Amortization
Medical Registration Rights are stated at cost less accumulated amortization and impairment (Fair Value) adjustments, and are amortized on the straight-line method over the estimated useful life which is ten years. Amortization expense for the year ended December 31, 2010 amounted to $745,454. See Note D for impairment.

Impairment of Long-Lived Assets
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.  Recoverability of these assets is measured by comparing the carrying amount to future undiscounted cash flows the assets are expected to generate.  If property and medical registration rights are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the assets exceeds its estimated fair market value.  See Note D on impairment of Medical Registration Rights.

Income and Other Taxes
Genmed B.V., a Dutch corporation and a subsidiary of the Company is subject to the Dutch tax laws and therefore needs to do income tax declarations in the Netherlands.

Reclassifications
Certain amounts in the 2010 consolidated Financial Statements have been reclassified to conform to the presentation used in 2011

Recent Accounting Pronouncements
The Company does not expect any recent accounting pronouncements to have a material impact to its financial position or results of operations.

 
NOTE C – CONSULTING AGREEMENTS

On April 17, 2008, the Company entered into a Consulting Agreement with Total Invest International B.V. (“Total Invest”), a company organized in The Netherlands. Pursuant to such Consulting Agreement, Total Invest will consult with the Company on finding, analyzing, structuring and negotiating sales and marketing agreements, alliances and other desirable projects with regard to the Company’s sales of its generic pharmaceutical products. The Consulting agreement commenced on April 17, 2008 and will terminate no earlier than April 17, 2011. Total Look will receive an initial payment of $40,000 upon execution of the Consulting Agreement, $20,000 per month for the length of the Consulting Agreement, and two and one-half percent (2.5%) of the total revenues from all sales and other revenues actually received by the Company, until such time as Total Look has received a total of $3,000,000, as compensation for its consulting services.  For the years ended December 31, 2011 and 2010, the Company recognized $240,000 in consulting expense, under this consulting agreement.

On March 3, 2010, the Company entered into a Management Services Agreement with E.R. Bouwens Beheermaatschappij B.V. (“ERB”), a company organized in The Netherlands and owned by the Company’s CEO. Pursuant to such Management Services Agreement, ERB will act as CEO of the Company and will manage and control the conduct of the business of the Company in accordance with the resolutions passed by and the instructions of the shareholders of the Company and the articles of association of the Company and the laws of the United States and The Netherlands. The Consulting agreement commenced on January 1, 2010 and is indefinite. ERB received an initial payment of $100,000 upon execution of the Management Services Agreement as part of the services rendered from April 17, 2008 to December 31, 2009, and will receive $20,000 per month for the length of the Management Services Agreement. For the years ended December 31, 2011 and 2010, the Company recognized $240,000 and $340,000, respectively, in management services expense, under this consulting agreement.

On March 3, 2010, the Company entered into a Management Services Agreement with R. Hibma (“RHI”), the Company’s CFO. Pursuant to such Management Services Agreement, RHI will continue to act as CFO of the Company. The agreement commenced on January 1, 2010 and is indefinite.  RHI will receive €6,500 per month for the length of the Management Services Agreement. In June 2011 the Company and RHI agreed to decrease the fee to €5,000 per month. For the years ended December 31, 2011 and 2010 the Company recognized €67,500 (approx. $ 94,500) and €78,000 (approx. $ 104,000) respectively in management services expense, under this consulting agreement.

F 9

 
21

 
GENMED HOLDING CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2011 AND 2010
 
NOTE D – IMPAIRMENT OF MEDICAL REGISTRATION RIGHTS

The Company reviewed its Medical Registration Rights as of December 31, 2010 for impairment.  The Company has the registration rights to sell a product called Paracetamol in the European Union and is in the process of obtaining  additional  approvals for variations which are required for the marketing and distribution of the product.  The Company has incurred delays in obtaining the approvals, resulting in delays in receiving revenue compared to its original projections.  The Company utilized the income approach to value its Medical Registration Rights and at December 31, 2010, the discounted cash flows did not support the carrying value of the asset as a result of the revenue delays.  In accordance with ASC 350, the Company was required to impair the Rights.  Accordingly, the Company has recognized an impairment loss of $5,405,606 at December 31, 2010.


NOTE E - NOTES PAYABLE TO RELATED PARTIES

On June 30, 2009, the Company and two note holders agreed upon the consolidation of their notes, including the unpaid interest, and to issue a new 100% Premium Secured Convertible Promissory Note. The new note is issued for the amount of $925,000, bears an annual interest rate of 8% and is convertible into shares of the Company’s Common Stock at a share price of $0.04 per share.   The Secured Promissory Note is due on June 30, 2010.  A beneficial conversion feature of $462,500 was recognized as part of this conversion and is being amortized over the year of the Secured Promissory Note.

On December 31, 2009, the Company and Mr. Bouwens, the CEO of the Company, agreed upon the conversion of his note, including the unpaid interest, and to issue a new 100% Premium Secured Convertible Promissory Note. The new note is issued for the amount of $221,557, bears an annual interest rate of 8% and is convertible into shares of the Company’s Common Stock at a share price of $0.04 per share. The Secured Promissory Note is due on December 31, 2010.  A beneficial conversion feature of $110,779 was recognized as part of this conversion and is being amortized over the year of the Secured Promissory Note.

On March 3, 2010, the holders of the Convertible notes have converted their notes including the unpaid interest into shares of the Company’s Common Stock. As such, the Company has issued 29,948,794 shares of Common Stock of the Company.

The Company has received other loans from individuals related to the Company at various times for working capital and to fund required operating expenses. Loans received in 2011 and 2010 amounted to approximately $0 and $13,000 (€10,000), respectively. Amounts repaid in 2011 and 2010 amounted to approximately $78,000 (€57,000) and $50,000 (€38,080), respectively. These advances were unsecured and bore interest at the rate of 8% per year. The amounts outstanding at December 31, 2011 and 2010 aggregate $38,850 and $119,822 respectively.

In August 2010, the Company requested the related note holders and its officers to subordinate the loans and unpaid interest as well as unpaid fees and salaries receivable from the Company to all bonds (see Note F) that have been issued and will be issued for the term of such bonds. At August 25, 2010, the Company and the related note holders as well as the officers of the Company entered into various subordination agreements, subordinating a total amount of approximately $960,000. The new notes bear an annual interest of 7.8%, payable each calendar quarter and include an option to convert the subordinated amounts into shares of Common Stock of the Company at a fixed conversion price of $0.04 per share.  A beneficial conversion feature of approximately $960,000 was recorded as part of this conversion and is being amortized as interest expense over the term of the bonds, which is four years.

On December 8, 2010, two subordinated note holders sold their note and other amounts receivable from the Company including the unpaid interest to an unrelated party. The Company issued a new 10% Secured Convertible Debenture with the new party.  The new note is issued for the amount of $855,960, bears an annual interest rate of 10% and is convertible into shares of the Company’s Common Stock equal to the lesser of (i) $0.02 per share, or (ii) if the shares are quoted, listed or admitted to trading on the OTCBB, any national securities exchange or quotation system, 50% of the lowest “Bid” price on the date of conversion. The debenture is subordinated to all outstanding Bond Agreements of the Company as the debt originated from the conversion of subordinated debt agreements. A beneficial conversion feature of approximately $149,000, after adjusting for the unamortized amount of $706,875 which remained on the August 25, 2010 subordinated debt, was recorded as part of this conversion. The discount is being amortized over the term of the bonds, which is four years. The 10% Secured Convertible Debenture is secured by a grant of first priority security interest in all of the assets of the Company.
 
F 10

 
22

 
GENMED HOLDING CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2011 AND 2010
 
NOTE E - NOTES PAYABLE TO RELATED PARTIES (Continued)
 
On December 8, 2010, the Company and a subordinated note holder, agreed upon the conversion of the subordinated note, including the unpaid interest and any other amount owed to him, and to issue a new 10% Secured Convertible Debenture. The new note is issued for the amount of $132,914, bears an annual interest rate of 10% and is convertible into shares of the Company’s Common Stock equal to the lesser of (i) $0.02 per share, or (ii) if the shares are quoted, listed or admitted to trading on the OTCBB, any national securities exchange or quotation system, 50% of the lowest “Bid” price on the date of conversion. The debenture is subordinated to all outstanding Bond Agreements of the Company as the debt originated from the conversion of subordinated debt agreements. A beneficial conversion feature of approximately $39,000, after adjusting for the unamortized amount of $93,750 which remained on the August 25, 2010 subordinated debt, was recorded as part of this conversion. The discount is being amortized over the term of the bonds, which is four years. The 10% Secured Convertible Debenture is secured by a grant of first priority security interest in all of the assets of the Company.

On June 10, 2011, the Company and a subordinated note holder, agreed upon the conversion of the subordinated note into shares of the Company’s Common Stock. An amount of $70,757 was converted at $0.04 per share into 1,768,928 shares of the Company’s Common Stock.

On December 14, 2011, the Company and a subordinated note holder, agreed upon the conversion of the subordinated note and the unpaid interest on the note into shares of the Company’s Common Stock. An amount of $39,645 was converted at $0.04 per share into 991,121 shares of the Company’s Common Stock.

On December 14, 2011, the Company and the holder of the 10% Secured Convertible Note agreed upon the conversion of the note and the unpaid interest into shares of the Company’s Common Stock. An amount of $137,328 was converted at $0.01 per share into 13,732,787 shares of the Company’s Common Stock.

On December 14, 2011, the Company and the holder of the 10% Secured Convertible Note agreed upon the conversion of the note into shares of the Company’s Common Stock. An amount of $855,960 was converted at $0.01 per share into 85,595,977 shares of the Company’s Common Stock.

Amortization of the discounts amounted to $1,066,198 and $424,908 during the years ended December 31, 2011 and 2010, respectively.

Following the conversions of the loans and notes into shares of the Company’s Common Stock on December 14, 2011, there are no longer subordinated convertible debentures to related parties of the Company as per December 31, 2011.


NOTE F - BONDS PAYABLE

During the third and fourth quarters of 2010, as part of the implementation of its business plan, the Company issued approximately €866,000 ($1,147,500) in bonds. During the year ended December 31, 2011, the Company issued an additional €1,072,000 (approximately $1,472,000) in bonds.  In connection with the financing, the Company paid approximately $109,000 in financing fees.  These fees were deferred and will be amortized over the term of the related notes. During 2011, $18,181 of these fees had been amortized resulting in a balance of $90,906 as of December 31, 2011. The bonds have a term of 48 months and, depending on the participated amount, bear an annual interest rate of 7.4% or 7,8%. The Bonds are recallable, after 10, 22 or 34 months, with a notice of two months and with a penalty of 10% of the value of the bond, up to a yearly maximum of 5% of the total funds received through the issuances of such bonds. Buyback requests will be handled in order of entries.
 
During the first and second quarter of 2011, the Company has also entered into addendum agreements with some of the bondholders for a conversion feature, whereby the bondholder has the right to convert the bond, or a portion of it, during the term of the bond into shares of the Company’s common stock at prices ranging between $0.13 and $0.50 per share. Holders of approximately $2,088,000 of bonds may convert the bonds into 12,450,282 shares of common stock.
 
F 11

 
23

 
GENMED HOLDING CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2011 AND 2010
 
NOTE F - BONDS PAYABLE (continued)

Discounts were recorded on these bonds for the fair value of the related conversion options.  See Note G for details.  Amortization of the discounts amounted to $1,353,108 and $0 for the year ended December 31, 2011 and 2010, respectively.
 
At December 31, 2011, future minimum principal payments over the next five years and in the aggregate are as follows:

Year Ending
 
Amount
 
 December 31, 2011
 
$
-
 
 December 31, 2012
   
-
 
 December 31, 2013
   
-
 
 December 31, 2014
   
1,120,555
 
 December 31, 2015
   
1,388,310
 
 Total
 
$
2,508,865
 

 
NOTE G – DERIVATIVE LIABILITIES

As mentioned in Note E, the Company had convertible notes outstanding during 2011 that were convertible into common shares at the lower of $0.02 or 50% of the lowest bid price on the date of conversion. The Company analyzed these conversion options under ASC 815 “Derivatives and Hedging” and determined that these instruments should be classified as liabilities and recorded at fair value due to their being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options. Additionally, because there is no explicit limit to the number of shares to be delivered upon settlement of these instruments, the Company cannot determine if it has sufficient authorized shares to settle all other share-settle able instruments (such as the convertible notes described in Note F).  As a result, all share-settle able instruments that were outstanding during the period that the notes described in Note E were outstanding must also be classified as liabilities.  The following table summarizes the Company’s derivative liabilities during the year ended December 31, 2011:

Derivative Liabilities
 
Amount
 
Derivative liabilities as of December 31, 2010
  $ -  
Additions of derivative liabilities from convertible bonds and subordinated notes
    9,567,922  
Net change in fair value of derivative liabilities
    (7,740,833 )
Settlement of derivative liabilities through conversion of related notes and bonds
    (1,827,089 )
Derivative liabilities as of December 31, 2011
  $ -  

The following table summarizes the components of the Company’s derivative loss for the year ended December 31, 2011:

Loss on Derivative Liabilities
 
Amount
 
Excess fair value of derivative liabilities over related bonds and notes
  $ 8,214,814  
Change in fair value of derivative liabilities
    (7,740,833 )
Loss on derivative liabilities for the year ended December 31, 2011
  $ 473,981  
 
The fair value of the instruments was determined using a Black-Scholes option pricing model.  Assumptions used include (1) 0.36% to 1.91% risk-free interest rate, (2) expected term is the remaining term of the related notes or bonds, (3) expected volatility 199% to 383%, (4) zero expected dividends (5) exercise prices as set forth in the agreements, (6) common stock price of the underlying share on the valuation date, and (7) number of shares to be issued if the instrument is converted.
 
F 12
 
 
24

 
GENMED HOLDING CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2011 AND 2010

NOTE H - INCOME TAXES

The loss before income taxes consists of the following:

   
For the Years Ended
 
   
December 31,
 
   
2011
   
2010
 
             
United States
  $ (4,562,190 )   $ (7,322,832 )
Foreign
    (879,673 )     (406,295 )
Totals
    (5,441,863 )     (7,729,127 )


The income tax expense (benefit) differs from the amount computed by applying the United States statutory corporate tax rate as follows:
 
 
For the Years Ended
 
   
December 31,
 
   
2011
   
2010
 
             
United States Statutory Corporate Income Tax Rate
    (34.0 %)     (34.0 %)
Permanent Differences
    0.0 %     0.0 %
Change in Valuation Allowance on Deferred Tax Assets
    34.0 %     34.0 %
Effect of Foreign Earnings, Net of Allowable credits
    0.0 %     0.0 %
Income Tax
    0.0 %     0.0 %


The components of deferred tax assets (liabilities) at December 31, 2011 and 2010 are as follows:

   
For the Years Ended
 
   
December 31,
 
   
2011
   
2010
 
Deferred Tax Assets (Liabilities) - Long Term
           
             
Net Operating losses
  $ 3,088,000     $ 2,587,000  
Medical Registration Rights
    3,964,000       3,964,000  
Other non-cash permanent differences
    1,350,000       35,000  
Valuation Allowance
    (8,402,000 )     (6,586,000 )
Net Deferred Tax Asset
  $ -     $ -  


The Company has established a full valuation allowance on its deferred tax asset because of a lack of sufficient positive evidence to support its realization. The valuation allowance increased by approximately $1,816,000 and $2,490,000 in the years ended December 31, 2011 and 2010.

As of December 31, 2011, there are approximately $9,081,000 in US net operating loss carryforwards expiring through 2030. Section 382 of the Internal Revenue Code limits the utilization of these losses when there is a change in ownership, as defined in the code. As a result of stock issued for acquisitions, the utilization of net operating loss carryforwards are limited.
 
F 13
 
 
25

 
GENMED HOLDING CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2011 AND 2010
 
NOTE I - STOCKHOLDERS’ EQUITY

Conversion of Convertible Debentures

On March 3, 2010, the holders of the 8% Convertible notes have converted their notes including the unpaid interest into shares of the Company’s Common Stock. In this connection, the Company issued 29,948,794 shares of Common Stock of the Company.

Stock Issuances

On May 19, 2010, in exchange for $14,880 (€12,000) in cash, the Company issued 297,600 shares of its common stock at $0.05 per share to a non-related individual.

On June 8, 2010, in exchange for $5,970 (€5,000) in cash, the Company issued 119,400 shares of its common stock at $0.05 per share to a non-related individual.

On July 8, 2010, in exchange for $378,090 (€300,000) in cash, the Company issued 6,000,000 shares of its common stock at $0.06 (€0.05) per share to a non-related individual.

On July 11, 2010, in exchange for $12,645 (€10,000) in cash, the Company issued 200,000 shares of its common stock at $0.06 (€0.05) per share to a non-related individual.

On July 15, 2010, in exchange for $127,260 (€100,000) in cash, the Company issued 2,000,000 shares of its common stock at $0.06 (€0.05) per share to a non-related individual.

On July 16, 2010, in exchange for $64,165 (€50,000) in cash, the Company issued 1,000,000 shares of its common stock at $0.06 (€0.05) per share to a non-related individual.

On October 12, 2010, in exchange for $139,233 (€100,000) in cash, the Company issued 2,000,000 shares of its common stock at $0.07 (€0.05) per share to a non-related individual.

On October 23, 2010, in exchange for $13,926 (€10,000) in cash, the Company issued 200,000 shares of its common stock at $0.07 (€0.05) per share to a non-related individual.

On March 18, 2011, the Company issued 167,000 shares of its common stock to an individual for promotional services valued at $0.12 per share for a total value of $20,040.

On May 23, 2011, the Company issued 5,000,000 shares of its common stock to a Company for financial consulting services valued at $0.17 per share for a total value of $850,000.

On May 23, 2011, the Company issued 1,900,000 shares of its common stock to a company as part of a conversion of the interest payable on subordinated convertible debt at $0.02 per share for a total value of $38,000.

On June 10, 2011, the Company issued 1,768,928 shares of its common stock to its CFO as part of a conversion of subordinated convertible debt at $0.04 per share for a total value of $70,757.

On December 14, 2011, the Company issued 4,874,335 shares of its common stock to its CFO as part of a conversion of unpaid salaries and management fees at $0.02 per share for a total value of $97,487.  The fair value of the common stock exceeded the carrying value of the related payable by $48,744 which was recorded as a loss on settlement of accounts payable during the year ended December 31, 2011.
F 14
 
 
26

 
GENMED HOLDING CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2011 AND 2010

NOTE I - STOCKHOLDERS’ EQUITY (Continued)
 
On December 14, 2011, the Company issued 13,234,666 shares of its common stock to a company that is owned by the Company’s CEO as part of a conversion of unpaid management fees at $0.02 per share for a total value of $264,693.  The fair value of the common stock exceeded the carrying value of the related payable by $132,346 which was recorded as a loss on settlement of accounts payable during the year ended December 31, 2011.

On December 14, 2011, the Company issued 2,633,040 shares of its common stock to a company as part of a conversion of unpaid management fees and the conversion of the remainder of a loan payable at $0.02 per share for a total value of $52,661.  The fair value of the common stock exceeded the carrying value of the related payable by $26,331 which was recorded as a loss on settlement of accounts payable during the year ended December 31, 2011.

On December 14, 2011, the Company issued 991,121 shares of its common stock to a company as part of a conversion of a subordinated convertible debt, including unpaid interest at $0.04 per share for a total value of $39,645.

On December 14, 2011, the Company issued 13,732,787 shares of its common stock to an individual as part of the conversion of a 10% Secured Convertible Debenture, including all unpaid interest at $0.01 per share for a total value of $ 137,328.

On December 14, 2011, the Company issued 85,595,977 shares of its common stock to a company as part of the conversion of a 10% Secured Convertible Debenture at $0.01 per share for a total value of $ 855,960.
 

 NOTE J – AMOUNT DUE FROM RELATED PARTY

At December 31, 2010, the Company had an amount due from a related party of $298,170 (€225,000). The amount was transferred to a deposit account of a company which is owned by the Company’s CEO. The amount due is non-interest bearing and was received in full in April 2011.


NOTE K - EMPLOYMENT CONTRACT

On September 1, 2011, the Company entered into an employment contract with a Sales Manager. The agreement is indefinite and calls for an annual salary of $84,000 per year, a lease car and a bonus of 1.25% of the by himself realized sales.


NOTE L - LITIGATION

The Company has been named as a defendant in a lawsuit filed in the Circuit Court of the 11th Judicial Circuit in Miami-Dade County, Florida, Case No. 08-79227CA25. The Company’s former Chief Executive Officer, Jerri Palmer, has instigated the lawsuit against the Company alleging Breach of Contract and Unjust Enrichment.  Ms. Palmer is claiming damages in excess of $15,000. Ms. Palmer was the Company’s Chief Executive Officer from December 5, 2005, until her resignation on May 19, 2006.  The Company has alleged counter claims against Ms. Palmer for breach of contract and breach of fiduciary duty.

In March 2010, the Company and Ms. Palmer have settled the lawsuit for an amount of $40,000.  The Company has accrued this settlement in the financial statements for the year ended December 31, 2009.

On July 20, 2010, since the Company was not able to pay this amount, Ms. Palmer entered into a final judgment against the Company for $40,000 bearing an annual interest rate at 6%. In July the Company and Ms. Palmer agreed upon a payment plan for 6 installments payable at the end of each month. On December 29, 2010, the Company made the final installment after which the case was resolved and fully concluded.
F 15

 
27

 
GENMED HOLDING CORP. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2011 AND 2010
 
NOTE M – COMMITMENTS AND CONTINGENCIES

On December 9, 2010, the Company entered into a Securities Purchase Agreement with the holder of the $855,960 note whereby the note holder may enter into another Secured Convertible Debenture with the Company for the aggregate principal amount of $875,225 whereby the Company and the holder will agree on the amount of the initial advance, based upon a budget proposed by the Company. Thereafter, the Company is entitled to make a monthly request which shall not exceed $50,000 unless approved by the Holder. The aggregate amount of all advances shall not exceed $875,225. The debenture bears interest based on the outstanding principal amount outstanding from time to time at the rate of 10% per annum and is subordinated to all bonds that have been issued and will be issued by the Company for the term of such bonds. As of December 31, 2011, no requests for advances have been made by the Company.

On December 9, 2010, the Company entered into a Securities Purchase Agreement with the holder of the $132,914 note whereby the note holder may enter into another Secured Convertible Debenture with the Company for the aggregate principal amount of $135,903 whereby the Company and the holder will agree on the amount of the initial advance, based upon a budget proposed by the Company. Thereafter, the Company is entitled to make a monthly request which shall not exceed $50,000 unless approved by the Holder. The aggregate amount of all advances shall not exceed $135,903. The debenture bears interest based on the outstanding principal amount outstanding from time to time at the rate of 10% per annum and is subordinated to all bonds that have been issued and will be issued by the Company for the term of such bonds. As of December 31, 2011, no requests for advances have been made by the Company.

In January 2012, the Company moved to another office and leases its office space from a company that is owned by the Company’s CEO pursuant to an operating lease which expires December 31, 2017, after which it will be automatically renewed for a continuous period of 5 years. After the 6 month free-leasing period, the Company is obligated to make quarterly payments of €5,088 (approximately $6,590) through December 2012. Each year the rental will be indexed according Dutch CPI percentage.

Based upon the historical index percentages, future minimum rentals under the operating lease over the next five years are as follows:

 
    Amount     Amount  
 December 31, 2012   10,176     $ 13,178  
 December 31, 2013   20,861     $ 27,015  
 December 31, 2014   21,382     $ 27,690  
 December 31, 2015   21,917     $ 28,382  
 December 31, 2016   22,465     $ 29,092  
 
 
NOTE N – SUBSEQUENT EVENTS

In 2012, the Company entered into bond agreements for an additional €40,000 (approximately $52,000). The bonds have a term of 48 months and, depending on the participated amount, bear an annual interest rate of 7.4% or 7,8%. The Bonds are recallable, after 10, 22 or 34 months, with a notice of two months and with a penalty of 10% of the value of the bond, up to a yearly maximum of 5% of the total funds received through the issuances of such bonds.
 
F 16
 
 
28

 

ITEM 9.          CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Effective December 1, 2011, the Board of Directors of Genmed Holding Corp. (the “Company”) approved the dismissal of Meyler & Company, LLC (“Meyler & Co.”) as the Company’s independent registered public accounting firm.

Also, effective December 1, 2011, the Company approved the engagement of Malone & Bailey LLP as the Company’s independent registered certified public accounting firm.

For information we refer to the Company’s Form 8-K filed with the Securities and Exchange Commission on December 7, 2011.
 
ITEM 9A.          CONTROLS AND PROCEDURES

Management is responsible for establishing and maintaining adequate controls over financial reporting. The Company’s disclosure controls and procedures are designed to ensure (i) that information required to be disclosed by the Company in the reports the Company files or submits under the Exchange Act of 1934, as amended (the “Exchange Act”), are recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms; and (ii) that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives. Furthermore, smaller reporting companies face additional limitations.  Smaller reporting companies employ fewer individuals and may find it difficult to properly segregate duties.  Often, one or two individuals control every aspect of the Company's operation and are in a position to override any system of internal control.  Additionally, smaller reporting companies tend to utilize general accounting software packages that lack a rigorous set of software controls.

Pursuant to rules adopted by the SEC as directed by Section 302 of the Sarbanes-Oxley Act of 2002, the Company’s management, with the participation of the Chief Executive Officer and Chief Financial, evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in the Securities Exchange Act of 1934 Rules13a-15(e)) as of December 31, 2011.  In making this assessment, our Chief Executive Officer and Chief Financial Officer used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework.

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our control over financial reporting based on the criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on this revaluation under the criteria established in Internal Control – Integrated Framework, our management concluded that our internal control over financial reporting was not effective as of December 31, 2011.

Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that, as of that date, the Company’s disclosure controls and procedures required by paragraph (b) of Exchange Act Rules 13a-15 or 15d-15, were not effective at a reasonable assurance level.  Management’s assessment identified the following material weaknesses:

·  
As of December 31, 2011, there was a lack of accounting personnel with the requisite knowledge of Generally Accepted Accounting Principles (“GAAP”) in the US and the financial reporting requirements of the Securities and Exchange Commission.
 
 
29

 
·  
As of December 31, 2011, there were insufficient written policies and procedures to insure the correct application of accounting and financial reporting with respect to the current requirements of GAAP and SEC disclosure requirements.

·  
As of December 31, 2011, there was a lack of segregation of duties, in that we only had one person performing all accounting-related duties.

·  
As of December 31, 2011, there were no independent directors and no independent audit committee.

·  
As of December 31, 2011, there was a failure in the operating effectiveness over controls related to accounting for convertible debt and embededded derivative liabilities.
 
Notwithstanding the existence of these material weaknesses in our internal control over financial reporting, our management believes that the financial statements included in its reports fairly present in all material respects the Company’s financial condition, results of operations and cash flows for the periods presented.  We continue to evaluate the effectiveness of internal controls and procedures on an on-going basis.  We plan to further address these issues once we commence operations and are able to hire additional personnel in financial reporting.

This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant to the SEC rule that permit us to provide only management’s report in this Annual Report on Form 10-K.
 
During the most recent completed fiscal quarter, there has been no change in our internal control over financial reporting that has materially affected or is reasonably likely to materially affect our internal control over financial reporting.

 

PART III
 
ITEM 10.          DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
 
Our directors hold office until the annual meeting of shareholders next held after their election. Our officers and directors are as follows:

Name
 
Age
 
With Company Since
 
Director/Position
 
               
Erwin R. Bouwens                             
 
49
 
4/2008
 
Chief Executive Officer, Chairman of the Board of Directors
 
               
Randy Hibma                          
 
40
 
1/2004
 
Chief Financial Officer, Director
 
               
               
 
 Mr. Erwin R. Bouwens – Chief Executive Officer and President. Mr. Bouwens is an entrepreneur who owns six restaurants and more than forty buildings and apartments through E.R. Bouwens Holding B.V. In the year 2000, Mr. Bouwens began De Witte Raaf, an occupational health care services company organized in The Netherlands, and in 1999, Mr. Bouwens began Medical Network Holding B.V. Mr. Bouwens maintains a majority interest in De Witte Raaf and Medical Network Holding B.V. In 1981, Mr. Bouwens completed his technical education in building and water projects.

Mr. Randy Hibma - Chief Financial Officer, Vice-President. From 2004 to the present, Mr. Hibma has been employed with the Company, and has served as Chief Financial Officer since May 23, 2005. From 2000 to 2003, Mr. Hibma served as Financial Controller of the Satellite Newspapers group of companies and affiliated companies. Prior to joining the Company, Mr. Hibma was manager of the Nostro department at Banque Parisbas Bank and manager at the Foreign Payment Department of ABN AMRO Bank.

Audit Committee

The Board of Directors does not have a Compensation, Audit, or Nominating Committee.  The usual functions of such committees are performed by the entire Board of Directors. The Board of Directors has determined that at present we do not have an independent audit committee financial expert. The Board believes that the members of the Board of Directors are collectively capable of analyzing and evaluating our financial statements and understanding internal controls and procedures for financial reporting. In addition, we have been seeking and continue to seek an appropriate individual to serve on the Board of Directors and the Audit Committee who will meet the requirements necessary to be an independent financial expert.

 
30

 
Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Exchange Act requires our executive officers, directors and beneficial owners of more than ten percent (10%) to report their beneficial ownership of equity interests in the company to the SEC. Their initial reports are required to be filed using the SEC's Form 3, and they are required to report subsequent purchases, sales, and other changes using the SEC's Form 4, which must be filed within two business days of most transactions. Officers, directors, and persons owning more than 10% of our capital shares are required by SEC regulations to furnish us with copies of all of reports they file pursuant to Section 16(a).

According to our records, Erwin R. Bouwens and Total Invest International B.V. have not filed their Form 3’s in a timely manner.
Code of Ethics

In 2005, the Company adopted a “Code of Ethics” that applies to the Company’s Chief Executive Officer, Chief Financial Officer, principal accounting officer or controller, and persons performing similar such functions.
 

ITEM 11.          EXECUTIVE COMPENSATION

The following table provides summary information for the fiscal years ended December 31, 2011, 2010 and 2009 concerning cash and non-cash compensation paid or accrued by us for our executive officers in excess of $60,000.
 
Name/ Position
 
Year
 
Salary
 
Bonus
 
Stock
 
Other
 
Total
Erwin R. Bouwens
 
2011
 
$
240,000
 
$
0
 
$
0
 
$
0
 
$
0
Chief Executive Officer
 
2010
 
$
240,000
 
$
0
 
$
0
 
$
0
 
$
0
     2009   $ 0   $ 0   $ 0   $ 0   $ 0
                                   
Randy Hibma
 
2011
 
$
94,500
 
$
0
 
$
0
 
$
0
 
$
94,500
Chief Financial Officer
 
2010
 
$
99,430
 
$
0
 
$
0
 
$
0
 
$
99,430
   
2009
 
$
82,800
 
$
0
 
$
0
 
$
0
 
$
82,800
                                   
Employment Contracts

The Company currently has one employment contract with a Sales Manager. The agreement is indefinite and calls for a monthly salary of € 5,000, a lease car and a bonus of 1.25% of the by himself realized sales.

The Company entered into Management Service Agreements with the executive officers of the Company. The Management Service Agreements are indefinite and have commenced on January 1, 2010. As per the Management Service Agreements, Mr. Bouwens will be paid a monthly fee of $20,000 and Mr. Hibma will be paid a monthly fee of € 5,000.

Family Relationships

There are no family relationships among the Company’s current directors, executive officers, or other persons nominated or chosen to become officers or executive officers.
 
ITEM 12.          SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

                The following table sets forth information regarding the beneficial ownership of our common stock as of December 31, 2011. The information in this table provides the ownership information for:

 
31

 
§  
each person known by us to be the beneficial owner of more than 5% of our common stock;
§  
each of our directors;
§  
each of our executive officers; and
§  
our executive officers and directors as a group.


Beneficial ownership has been determined in accordance with the rules and regulations of the SEC and includes voting or investment power with respect to the shares. Unless otherwise indicated, the persons named in the table below have sole voting and investment power with respect to the number of shares indicated as beneficially owned by them.

 
Title of Class
 
Name and Address
 
Number of Shares
   
Percent of Class
 
Common Stock
 
Erwin R. Bouwens
Rontgenlaan 37, 2719 DX Zoetermeer, The Netherlands
    192,271,639  (1)(2)     65.2 %
                     
Common Stock
 
Randy Hibma
Rontgenlaan 37, 2719 DX Zoetermeer, The Netherlands
    8,643,263       2.9 %
                     
Common Stock
 
Officers and Directors as a group (two persons)
    200,914,902       68.1 %
                     


(1)           Mr. Bouwens’ share ownership consists of 99,762,213 shares of common stock held by E.R. Bouwens Beheermaatschappij B.V., 6,480,000 shares of common stock held by Medical Network Holding B.V. (Mr. Bouwens is owner and controlling officer of both entities), and 86,029,426 shares of common stock held by Total Invest International B.V..

(2)           Mr. Bouwens has a contractual right of first refusal to purchase 9,120,000 shares of common stock of Mr. J.E. de Metz and 9,120,000 shares of common stock of Mr. W. Blijleven. If Mr. Bouwens were to acquire all 18,240,000 shares of common stock, assuming the same number of outstanding shares, his ownership would then consist of 210,511,639 shares of common stock of the Company, or 71.4% of the common stock of the Company.


ITEM 13.          CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
 
On June 30, 2009, the Company and two note holders agreed upon the consolidation of their notes, including the unpaid interesIt, and to issue a new 100% Premium Secured Convertible Promissory Note. The new note is issued for the amount of $925,000, bears an annual interest rate of 8% and is convertible into shares of the Company’s Common Stock at a share price of $0.04 per share.   The Secured Promissory Note is due on June 30, 2010.  A beneficial conversion feature of $462,500 was recognized as part of this conversion and is being amortized over the year of the Secured Promissory Note.

On December 31, 2009, the Company and Mr. Bouwens, the CEO of the Company, agreed upon the conversion of his note, including the unpaid interest, and to issue a new 100% Premium Secured Convertible Promissory Note. The new note is issued for the amount of $221,557, bears an annual interest rate of 8% and is convertible into shares of the Company’s Common Stock at a share price of $0.04 per share.   The Secured Promissory Note is due on December 31, 2010.  A beneficial conversion feature of $110,779 was recognized as part of this conversion and is being amortized over the year of the Secured Promissory Note.

 
32

 
On March 3, 2010, the holders of the Convertible notes have converted their notes including the unpaid interest into shares of the Company’s Common Stock. As such, the Company has issued 29,948,794 of newly shares of Common Stock of the Company.
 
The Company has received other loans from individuals related to the Company at various times for working capital and to fund required operating expenses. Loans received in 2011 and 2010 amounted to approximately $0 and $13,000 (€10,000), respectively. Amounts repaid in 2011 and 2010 amounted to approximately $78,000 (€57,000) and $50,000 (€38,080), respectively. These advances were unsecured and bore interest at the rate of 8% per year. The amounts outstanding at December 31, 2011 and 2010 aggregate $38,850 and $119,822 respectively.

In August 2010, the Company has requested the related note holders and its officers to subordinate the loans and unpaid interest as well as unpaid fees and salaries receivable from the Company to all bonds that have been issued and will be issued for the term of such bonds. At August 25, 2010, the Company and the related note holders as well as the officers of the Company entered into various subordination agreements, subordinating a total amount of approximately $960,000. The new notes bear an annual interest of 7.8%, payable each calendar quarter and include an option to convert the subordinated amounts into shares of Common Stock of the Company at a fixed conversion price of $0.04 per share.  A beneficial conversion feature of approximately $960,000 was recognized as part of this conversion and was amortized as interest expense at the issuance date as the notes are convertible immediately.

On December 8, 2010, the Company and a subordinated note holder, agreed upon the conversion of the subordinated note, including the unpaid interest and any other amount owed to him, and to issue a new 10% Secured Convertible Debenture. The new note is issued for the amount of $132,914, bears an annual interest rate of 10% and is convertible into shares of the Company’s Common Stock equal to the lesser of (i) $0.02 per share, or (ii) if the shares are quoted, listed or admitted to trading on the OTCBB, any national securities exchange or quotation system, 50% of the lowest “Bid”price on the date of conversion.
 
    The debenture is subordinated to all outstanding Bond Agreements of the Company as the debt originated from the conversion of subordinated debt agreements.

 On June 10, 2011, the Company and a subordinated note holder, agreed upon the conversion of the subordinated note into shares of the Company’s Common Stock. An amount of $70,757 was converted at $0.04 per share into 1,768,928 shares of the Company’s Common Stock.
   
    On December 14, 2011, the Company and its CFO agreed upon the conversion of $48,743 in unpaid salaries and management fees into shares of common stock of the Company. The total amount of $48,743 in unpaid salaries and management fees was converted into 4,874,335 shares of the Company’s common stock.
 
    On December 14, 2011, the Company and its CEO agreed upon the conversion of $132,347 in unpaid management fees into shares of common stock of the Company. The total amount of $132,347 in unpaid management fees was converted into 13,234,666 shares of the Company’s common stock.
 
33

 

ITEM 14.          PRINCIPAL ACCOUNTANTS FEES AND SERVICES

The following table sets forth fees billed to us by our auditors during the fiscal years ended December 31, 2011 and December 31, 2010 for: (i) services rendered for the audit of our annual financial statements and the review of our quarterly financial statements, (ii) services by our auditor that are reasonably related to the performance of the audit or review of our financial statements and that are not reported as Audit Fees, (iii) services rendered in connection with tax compliance, tax advice and tax planning, and (iv) all other fees for services rendered.

FIRM
 
FISCAL YEAR 2011
   
FISCAL YEAR 2010
 
             
Meyler & Company, LLC
           
             
 (i), (ii) Audit Related Fees    $ 29,930     $ 64,267  
                 
 (iii) Tax Fees   $ 0     $ 0  
                 
 (iv) All Other Fees   $ 0     $ 0  


FIRM
 
FISCAL YEAR 2011
   
FISCAL YEAR 2010
 
             
Malone Bailey, LLP
           
             
 (i), (ii) Audit Related Fees    $ 20,000     $ 0  
                 
 (iii) Tax Fees   $ 0     $ 0  
                 
 (iv) All Other Fees   $ 0     $ 0  

 
TOTAL FEES
 

FIRM
 
FISCAL YEAR 2011
   
FISCAL YEAR 2010
 
             
Meyler & Company, LLC
  $ 29,930     $ 64,267  
                 
Malone Bailey, LLP
  $ 20,000     $ 0  
                 
 
 
34

 

PART IV

ITEM 15.          EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a)           Exhibits:

Exhibit Number                                Document Description

 
3.1
Corporate Charter of Beck & Co. as filed with the Nevada Secretary of State on April 6, 1998, incorporated by reference from the Company’s Registration Statement on Form 10-SB filed with the Securities and Exchange Commission on April 4, 2000.

 
3.2
Bylaws of Beck & Co., incorporated by reference from the Company’s Registration Statement on Form 10-SB filed with the Securities and Exchange Commission on July 6, 1999.

 
3.3
Amendment to the Company’s Articles of Incorporation as filed with the Nevada Secretary of State on March 31, 2000, changing the authorized number of shares of the Company, incorporated by reference from the Company’s Form 10-KSB filed with the Securities and Exchange Commission on April 15, 2008.

 
3.4
Amendment to the Company’s Articles of Incorporation as filed with the Nevada Secretary of State on September 11, 2000, changing the name of the Company, incorporated by reference from the Company’s Form 10-KSB filed with the Securities and Exchange Commission on April 15, 2008.

 
3.5
Amendment to the Company’s Articles of Incorporation as filed with the Nevada Secretary of State on September 12, 2000, incorporated by reference from the Company’s Form 10-KSB filed with the Securities and Exchange Commission on April 15, 2008.

 
3.6
Amendment to the Company’s Articles of Incorporation whereby the authorized number of shares of the Company’s common stock increased from 200,000,000 to 500,000,000, incorporated by reference herein from Exhibit 3 to the Company’s Form 8-K filed with the Securities and Exchange Commission on April 5, 2004 and as filed with the Nevada Secretary of State on August 23, 2004.

 
3.7
Amendment to the Company’s Articles of Incorporation whereby the Company changed its corporate name, incorporated by reference herein from Exhibit 3 to the Company’s Form 8-K filed with the Securities and Exchange Commission on December 5, 2005.
 
 
3.8
Amendment to the Company’s Articles of Incorporation whereby the Company changed its corporate name, as filed with the Nevada Secretary of State on December 12, 2007, incorporated by reference from the Company’s Form 10-KSB filed with the Securities and Exchange Commission on April 15, 2008.
     
 
3.9
Stock Exchange Agreement between the Company and Joost de Metz (“de Metz”), Willem Blijleven (“Blijleven”), Erwin R. Bouwens (“Bouwens”) and Medical Network Holding BV dated April 17, 2008, incorporated herein by reference from Exhibit 9.2 to the Form 8-K of the Company filed on May 2, 2008.
     
 
3.10
General Release and Settlement Agreement, incorporated herein by reference from Exhibit 9.1 to the Form 8-K of the Company filed on May 2, 2008.
     
 
3.11
Consulting Agreement between the Company and London Finance Group, Ltd., incorporated herein by reference from Exhibit 9.1 to the Form 8-K of the Company filed on May 2, 2008.
     
 
3.12
Draft Release and Settlement Agreement amending and rescinding certain agreements made on April 17, 2008.

 
10.1
Settlement Agreement between the Company and Mssrs. Fred De Vries and Renato Mariani, incorporated by reference herein from Exhibit 10 to the Company’s Form 8-K filed with the Securities and Exchange Commission on March 27, 2007, File No. 07721776.

 
10.2
Release and Settlement Agreement between the Company, Joost de Metz , Willem Blijleven,  E.R. Bouwens Beheermaatschappij B.V.,  Medical Network Holding BV , Total Look, BV , London Finance Group, Ltd.,  Dojo Enterprises, LLC,  Hyperion Fund, L.P.,  The Palisades Capital, LLC 401(k) Profit Sharing Trust , The Morpheus 2005 Trust dated December 1, 2005 , Burton Partners, LLC , Picasso, LLC  and Glacier, LLC

 
10.3
Employment Contract between the Company and Randy Hibma, incorporated by reference from the Company’s Form 10-KSB filed with the Securities and Exchange Commission on April 15, 2008.

 
10.4
Ethics Code of the Company, incorporated by reference from the Company’s Form 10-KSB filed with the Securities and Exchange Commission on April 15, 2008.

 
31.1
Certification pursuant to Section 302 of the Sarbanes-Oxley Act.

 
31.2
Certification pursuant to Section 302 of the Sarbanes-Oxley Act.

 
32.1
Certification Pursuant to 18 U.S.C. Section 1350 as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 
32.2
Certification Pursuant to 18 U.S.C. Section 1350 as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 
 
35

 

 
SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 
     
  GENMED HOLDING CORP.  
     
Dated: April 16, 2012 /s/Erwin R. Bouwens  
 
Erwin R. Bouwens
 
  Chief Executive Officer and  
  Chairman of the Board  
     
Dated: April 16, 2012
/s/ Randy Hibma
 
 
Randy Hibma
 
 
Chief Financial Officer