NOTE A DESCRIPTION OF BUSINESS
AND BASIS OF PRESENTATION POLICIES
Holding, Inc., a Delaware corporation, is a holding company. Through three wholly-owned subsidiaries, MIT distributes wholesale
pharmaceuticals, administers intravenous infusions, operates an ambulatory center where therapies are administered and sells and
rents home medical equipment.
Medical Infusion Technologies, Inc. was incorporated
in November 1991 in the state of Georgia. On July 6, 2006, an agreement and plan of merger was made between MIT Holding, Inc.,
a Delaware corporation, Medical Infusion Technologies, Inc., and MIT Acquisition A, Inc. By this agreement, MIT Holding, Inc. became
the parent company and Medical Infusion Technologies, Inc. and MIT Ambulatory Care Center, Inc., wholly-owned subsidiaries.
MIT Holding, Inc. Merger with Convention All
Our company was formerly known as Convention All
Holdings, Inc. and, on May 2, 2007, we acquired a 100% ownership interest in MIT Holding, Inc. through a merger of MIT Holding,
Inc. with and into MIT CVAH Acquisition Corp, a newly formed Delaware corporation and wholly-owned subsidiary, in exchange for
32,886,779 shares of our common stock. Simultaneously with the Merger, the company formerly known as MIT Holding, Inc. changed
its name to Medical Infusion Group, Inc., and we changed our name to MIT Holding, Inc. As a result of the Merger, we now own 100%
of Medical Infusion Group, Inc., a Delaware corporation, which, in turn, continues to own 100% of the issued and outstanding shares
of capital stock of MIT Ambulatory Care Center, Inc., a Georgia corporation (Ambulatory), Medical Infusion Technologies,
Inc., a Georgia corporation (Infusion) and MIT International Distribution, Inc., a Delaware corporation (MIT
The accompanying condensed consolidated
financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America.
At SEPTEMBER 30, 2012, the Company had negative working capital
of $1,527,301. From inception, the Company has incurred an accumulated deficit of $6,110,524. These factors raise substantial doubt
as to the Companys ability to continue as a going concern.
There can be no assurance that sufficient funds required
during the next year or thereafter will be generated from operations or that funds will be available from external sources such
as debt or equity financings or other potential sources. The lack of additional capital resulting from the inability to generate
cash flow from operations or to raise capital from external sources would force the Company to substantially curtail or cease operations
and would, therefore, have a material adverse effect on its business. Furthermore, there can be no assurance that any such required
funds, if available, will be available on attractive terms or that they will not have a significant dilutive effect on the Companys
The accompanying financial statements do not include any
adjustments related to the recoverability or classification of asset-carrying amounts or the amounts and classification of liabilities
that may result should the Company be unable to continue as a going concern.