Virtual Medical International, Inc. June 30, 2018 Quarterly Report

Transcription

1 Virtual Medical International, Inc. June 30, 2018 Quarterly Report 1) Name of the issuer and its predecessors (if any) Virtual Medical International, Inc.: October 19, 2010 to present Formerly: QE Brushes, Inc. July 19, 2007 to October 19, ) Address of the issuer s principal executive offices Address: 3651 Lindell Road, Suite D639 Las Vegas, Nevada Phone: (702) Website: 3) Security Information Trading Symbol: QEBR Exact title and class of securities outstanding: Common Stock CUSIP: 92828H109 Par or Stated Value: $ Total shares authorized: 500,000,000 as of: June 30, 2018 Total shares outstanding: 421,671,541 as of: June 30, 2018 Additional class of securities (if necessary): Exact title and class of securities outstanding: Series A Preferred Stock Par or Stated Value: $ Total shares authorized: 50,000,000 as of: June 30, 2018 Total shares outstanding: 0 as of: June 30, 2018 Additional class of securities (if necessary): Exact title and class of securities outstanding: Series B Preferred Stock Par or Stated Value: $ Total shares authorized: 45,000,000 as of: June 30, 2018 Total shares outstanding: 36,470,893 as of: June 30, 2018 Additional class of securities (if necessary): Exact title and class of securities outstanding: Series C Preferred Stock Par or Stated Value: $ Total shares authorized: 100,000 as of: June 30, 2018 Total shares outstanding: 100,000 as of: June 30, 2018 Transfer Agent Empire Stock Transfer Inc Whitney Mesa Dr. Henderson, NV Is the Transfer Agent registered under the Exchange Act?* Yes: No: *To be included in the OTC Pink Current Information tier, the transfer agent must be registered under the Exchange Act. OTC Pink Basic Disclosure Guidelines (v1.1 April 25, 2013) Page 1 of 17

2 List any restrictions on the transfer of security: Describe any trading suspension orders issued by the SEC in the past 12 months. List any stock split, stock dividend, recapitalization, merger, acquisition, spin-off, or reorganization either currently anticipated or that occurred within the past 12 months: On May 16, 2018, the Company acquired 100% of the equity interest of Environmental Robotics Limited ( ER ), a company incorporated in the Marshall Islands. ER holds 100% of the equity interest of Jinbaixing (Shenzhen) Clean Energy Technology Service Co., Ltd ( Jinbaixing )., a company incorporated in the People s Republic of China ( PRC ). The Company issued 5,000,000 shares to the original shareholders of ER as consideration. Both ER and Jinbaixing are investment holding companies. On May 24, 2018, the Company, through Jinbaixing, acquired 40% of the equity interest of Xiaojin County Ruibo Big Data Technology Co., Ltd. ( Big Data ), a company incorporated in the PRC. Big Data is engaged in the business of mining cryptocurrencies. The Company issued 10,000,000 shares to the original shareholders of Big Data as consideration. 4) Issuance History During the twelve months ended December 31, 2016, the Company issued no shares of capital stock. During the year ended December 31, 2017, the Company issued the following shares of capital stock: On or about November 1, 2017, 350,000,000 shares of common stock and 25,000,000 shares of Series B preferred stock issued to Algonquin Partners, Inc., which was controlled by the former CEO of the Company, Joe Arcaro. The shares were issued in exchange for cancellation of related party debt totaling $18,250. The shares were part of a private offering exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the Securities Act ). The issuance took place in the State of Nevada. The shares were restricted at the time of issue, as they represented a control block of shares of the Company. During the six months ended June 30, 2018, the Company issued the following shares of capital stock: On May 16, 2018, the Company issued 5,000,000 shares of common stock for the 100% acquisition of Environment Robotics Limited ( ER ). The stock was issued to Ms. Nankalamu, the 100% owner of ER prior to the transaction. The shares were part of a private offering exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the Securities Act ). The issuance took place in the State of Nevada. The shares contained a common Securities Act and Rule 144 legend. On May 24, 2018, the Company issued 10,000,000 shares of common stock for the 40% equity interest of Xiaojin County Ruibo Big Data Technology Co., Ltd. ( Big Data ). The stock was issued to Mr. Su Xiaobo, owner of 20% of Big Data and transferee of shares held by Mr. Ze Langtou, also owner of 20% of Big Data. The shares were part of a private offering exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the Securities Act ). The issuance took place in the State of Nevada. The shares contained a common Securities Act and Rule 144 legend. On or about June 4, 2018, the Company issued 250,000 shares of common stock in exchange for legal services from outside counsel. The stock was issued to the Company s outside counsel, Mr. Patrick Loney. The shares were part of a private offering exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the Securities Act ). The issuance took place in the State of Nevada. The shares contained a common Securities Act and Rule 144 legend. OTC Pink Basic Disclosure Guidelines (v1.1 April 25, 2013) Page 2 of 17

3 5) Financial Statements The following unaudited interim financial statements for the periods ended June 30, 2018 and 2017 are included in this Information and Disclosure Statement: A. Consolidated Balance Sheets B. Consolidated Statements of Operations C. Consolidated Statements of Cash Flows D. Notes to Consolidated Financial Statements OTC Pink Basic Disclosure Guidelines (v1.1 April 25, 2013) Page 3 of 17

4 FINANCIAL STATEMENTS VIRUTAL MEDICAL INTERNATIONAL, INC. Financial Statements For the Six months ended June 30, 2018 Unaudited Prepared By Management Page Consolidated Balance Sheets 5 Consolidated Statements of Operations 6 Consolidated Statements of Cash Flows 7 Notes to the Consolidated Financial Statements 8 OTC Pink Basic Disclosure Guidelines (v1.1 April 25, 2013) Page 4 of 17

5 VIRTUAL MEDICAL INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, December 31, ASSETS Current Assets Cash and cash equivalents $ - $ - Total Current Assets - - Non-current Assets Investment in equity method investee 5,292,152 - TOTAL ASSETS $ 5,292,152 $ - LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current Liabilities Accounts payable and accrued liabilities $ 12,400 $ - Note payable - 10,500 Total Current Liabilities 12,400 10,500 TOTAL LIABILITIES 12,400 10,500 Stockholders' Equity (Deficit) Series A Preferred at $ par value, 50,000,000 shares authorized, no shares issued and outstanding Series B Preferred at $ par value, 45,000,000 shares authorized, 36,470,893 shares issued and outstanding Series C Preferred at $ par value, 100,000 shares authorized, 100,000 shares issued and outstanding Common Stock at $ par value, 500,000,000 shares authorized, 421,671,541 and 405,367,541 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively ,217 4,054 Additional paid in capital 88,791,656 83,306,069 Accumulated deficit (83,516,487) (83,320,989) Total Stockholders' Equity (Deficit) 5,279,752 (10,500) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 5,292,152 $ - The accompanying notes are an integral part of these unaudited financial statements. OTC Pink Basic Disclosure Guidelines (v1.1 April 25, 2013) Page 5 of 17

6 VIRTUAL MEDICAL INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended Six months ended June 30, June 30, Revenues $ - $ - $ - $ - Operating Expenses Professional services 4,275 4,163 16,925 5,476 General and administrative expenses Total operating expenses 4,750 4,163 17,400 5,476 Operating Loss (4,750) (4,163) (17,400) (5,476) Other Income (Expense) Gain on investment in equity method investee 37,152-37,152 - Loss on debt settlement (215,000) - (215,000) - Interest expense (33) - (250) - Total other income (expense) (177,881) - (178,098) - Net loss before income taxes (182,631) (4,163) (195,498) (5,476) Provision for income taxes Net loss $ (182,631) $ (4,163) $ (195,498) $ (5,476) Basic and dilutive net loss per common share $ (0.00) $ (0.00) $ (0.00) $ (0.00) Weighted average number of common shares outstanding - basic and diluted 412,441,717 55,367, ,904,629 55,367,541 The accompanying notes are an integral part of these unaudited financial statements OTC Pink Basic Disclosure Guidelines (v1.1 April 25, 2013) Page 6 of 17

7 VIRTUAL MEDICAL INTERNATIONAL, INC. CONSOLIDATE STATEMENTS OF CASH FLOWS (Unaudited) Six months ended June 30, Cash Flows from Operating Activities Net loss $ (195,498) $ (5,476) Adjustments to reconcile net profit to net cash used in operating activities: Loss on debt settlement 215,000 - Gain on investment in equity method investee (37,152) - Changes in operating assets and liabilities: Accounts payable and accrued liabilities 17,650 5,476 Net cash used in operating activities - - Net decrease in cash and cash equivalents - - Cash and cash equivalents - beginning of period - - Cash and cash equivalents - end of period $ - $ - Supplemental Cash Flow Disclosures Cash paid for interest $ - $ - Cash paid for income taxes $ - $ - Non-Cash Investing and Financing Activity: Common stock issued for conversion of debt $ 10,750 $ - Common stock issued for acquisition of Equity Investment $ 5,250,000 $ - The accompanying notes are an integral part of these unaudited financial statements. OTC Pink Basic Disclosure Guidelines (v1.1 April 25, 2013) Page 7 of 17

8 NOTE 1 - ORGANIZATION AND OPERATIONS VIRTUAL MEDICAL INTERNATIONAL, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2018 (Unaudited) Virtual Medical International, Inc. (the Company ) was originally incorporated in the State of Nevada on July 19, 2007 as QE Brushes, Inc. On October 19, 2010, the Company changed its name to Virtual Medical International, Inc. The Company initially was in the business of internet-based medical education, offering web-based programs to educate patients on the risks and benefits of medical treatments. On May 16, 2018, the Company acquired 100% of the equity interest of Environmental Robotics Limited ( ER ), a company incorporated in the Marshall Islands. ER holds 100% of the equity interest of Jinbaixing (Shenzhen) Clean Energy Technology Service Co., Ltd ( Jinbaixing )., a company incorporated in the People s Republic of China ( PRC ). The Company issued 5,000,000 shares to the original shareholders of ER as consideration. Both ER and Jinbaixing are investment holding companies. On May 24, 2018, the Company, through Jinbaixing, acquired 40% of the equity interest of Xiaojin County Ruibo Big Data Technology Co., Ltd. ( Big Data ), a company incorporated in the PRC. Big Data is engaged in the business of mining cryptocurrencies. The Company issued 10,000,000 shares to the original shareholders of Big Data as consideration. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The Company s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ( U.S. GAAP ). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud. The Company's system of internal accounting control is designed to assure, among other items, that 1) recorded transactions are valid; 2) valid transactions are recorded; and 3) transactions are recorded in the proper period in a timely manner to produce financial statements which present fairly the financial condition, results of operations and cash flows of the Company for the respective periods being presented. Basis of Consolidation These financial statements include the accounts of the Company and its wholly-owned subsidiaries: Environmental Robotics Limited ( ER ) and Jinbaixing (Shenzhen) Clean Energy Technology Service Co., Ltd ( Jinbaixing ). All intercompany sales, purchases, balances, investments, and capital have been eliminated. Equity investments for which we are able to exercise significant influence over but do not control the investee and are not the primary beneficiary of the investee s activities are accounted for using the equity method. Accordingly, Big Data has been accounted for using the equity method. OTC Pink Basic Disclosure Guidelines (v1.1 April 25, 2013) Page 8 of 17

9 Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 the reported amounts of revenues and expenses during the reported period. The Company s significant estimates include income taxes provision and valuation allowance of deferred tax assets; the fair value of financial instruments; the carrying value and recoverability of long-lived assets, including the values assigned to an estimated useful lives of computer equipment; and the assumption that the Company will continue as a going concern. Those significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to those estimates or assumptions, and certain estimates or assumptions are difficult to measure or value. Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Management regularly reviews its estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such reviews, and if deemed appropriate, those estimates are adjusted accordingly. Actual results could differ from those estimates. Foreign currency translation and re-measurement The Company translates its foreign operations to the U.S. dollar in accordance with ASC 830, Foreign Currency Matters. The reporting and functional currency for the Company and ER is the US dollar, while that for Jinbaixing and Big Data is the Chinese Renminbi ( RMB ). Jinbaixing and Big Data, whose records are not maintained in those entities respective functional currencies, re-measure their records into their functional currency as follows: Monetary assets and liabilities at exchange rates in effect at the end of each period Nonmonetary assets and liabilities at historical rates Revenue and expense items at the average rate of exchange prevailing during the period Adjustments arising from such translations are included in accumulated other comprehensive income in shareholders equity. June 30, December 31, Spot RMB: USD exchange rate $ $ N/A Average RMB: USD exchange rate $ $ N/A The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US Dollars at the rates used in translation. Cash and cash equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. OTC Pink Basic Disclosure Guidelines (v1.1 April 25, 2013) Page 9 of 17

10 Related parties The Company follows subtopic of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. Pursuant to Section the Related parties include a) affiliates of the Company; b) Entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section , to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) involved description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. Commitments and contingencies The Company follows subtopic of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company s consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company s consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company s business, financial position, and results of operations or cash flows. Revenue recognition Effective January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers. The Company has evaluated the new guidance and its adoption did not have a significant impact on the Company s financial statements and OTC Pink Basic Disclosure Guidelines (v1.1 April 25, 2013) Page 10 of 17

11 a cumulative effect adjustment under the modified retrospective method of adoption will not be necessary. The Company considers revenue realized or realizable and earned when all of the following criteria are met: identify the contract with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to performance obligations in the contract; and recognize revenue as the performance obligation is satisfied Financial Instruments The Company s financial instruments consist primarily of accounts payable and accrued liabilities and Note payable. The carrying amounts of such financial instruments approximate their respective estimated fair value due to the short-term maturities and approximate market interest rates of these instruments. Income Tax Provisions The Company follows Section of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Income and Comprehensive Income in the period that includes the enactment date. The Company adopted section of the FASB Accounting Standards Codification ( Section ) with regards to uncertainty income taxes. Section addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section , the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. Net income (loss) per common share Net income (loss) per common share is computed pursuant to section of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period. The weighted average number of common shares outstanding and potentially outstanding common shares assumes that the Company incorporated as of the beginning of the first period presented. There were no potentially dilutive shares outstanding for the period ended June 30, Recent Accounting Pronouncements The Company is currently assessing the above the accounting pronouncements and their potential impact from their adoption on the financial statements. NOTE 3 GOING CONCERN The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the accompanying financial statements, the Company had an accumulated deficit at June 30, 2018 of OTC Pink Basic Disclosure Guidelines (v1.1 April 25, 2013) Page 11 of 17

12 $83,516,487 and its liabilities exceeded its assets. These factors among others raise substantial doubt about the Company s ability to continue as a going concern. While the Company is attempting to commence operations and generate revenues, the Company s cash position may not be significant enough to support the Company s daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company s ability to further implement its business plan and generate revenues. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. NOTE 4 ACQUISITION On May 16, 2018, the Company acquired 100% of the equity interest of Environmental Robotics Limited ( ER ), a company incorporated in the Marshall Islands. ER holds 100% of the equity interest of Jinbaixing (Shenzhen) Clean Energy Technology Service Co., Ltd ( Jinbaixing )., a company incorporated in the People s Republic of China ( PRC ). The Company issued 5,000,000 shares to the original shareholders of ER as consideration. Both ER and Jinbaixing are investment holding companies. The acquisition of ER was accounted for under ASC 805, as an acquisition under common control. NOTE 5 EQUITY INVESTMENT Please refer to Note 1 and Note 2 for the details of acquisition and accounting policy. Under the equity method of accounting, the Company records the investment at cost of $5,255,000. During the six months ended June 30, 2018 and 2017, the share of profits from equity investment is $37,152 and $0, respectively. The amount of equity investment as of June 30, 2018 and December 31, 2017 is $5,292,152 and $0, respectively. NOTE 6 NOTE PAYABLE On October 31, 2017, the Company issued the promissory note to pay amounts owed to our transfer agent of $10,500. The note is unsecured, bears interest at 5% per annum and is due on October 31, During the six months ended June 30, 2018, the Company recognized interest expense of $250. As of June 4, 2018, the note payable of $10,500 and accrued interest of $250 has been fully settled by conversion of the promissory note in exchange of 1,000,000 shares of common stock. NOTE 7 STOCKHOLDERS DEFICIT Preferred Stock The Company authorized 100,000,000 shares of Preferred Stock at a par value of $ Series B Preferred stock The Company is designated to issue 45,000,000 shares of Convertible Series B Preferred Stock at a par value of $ The Series B Preferred Stock has one voting right and shall not be redeemable by the Company. The Series B Preferred converts into Common Stock at a ratio of 1:1. During the six months ended June 30, 2018, there were no issuances of Series B Preferred Stock. OTC Pink Basic Disclosure Guidelines (v1.1 April 25, 2013) Page 12 of 17

13 As of June 30, 2018 and December 31, 2017, 36,470,893 shares of Series B Preferred Stock were issued and outstanding. Series C Preferred stock The Company is designated to 100,000 shares of Series C Super Voting Preferred Stock at a par value of $ No distribution share be made to the holders of shares of the Series C preferred stock. The Holder has 2,500 votes for each share of Series C Preferred Stock. During the six months ended June 30, 2018, there were no issuances of Series C Preferred Stock. As of June 30, 2018 and December 31, 2017, 100,000 shares of Series C Preferred Stock were issued and outstanding. Common stock The Company is authorized 500,000,000 shares of Common Stock at a par value of $ During the six months ended June 30, 2018, there were 16,250,000 shares of common stock issued. 1,000,000 shares for conversion of promissory note (see Note 5) 250,000 shares to an attorney for professional fees to complete the acquisition of ER and Big Data 5,000,000 shares for acquisition of ER (see Note 4) 10,000,000 shares for acquisition of Big Data (see Note5) As of June 30, 2018 and December 31, 2017, 421,617,541 and 405,367,541 shares of common stock were issued and outstanding, respectively. OTC Pink Basic Disclosure Guidelines (v1.1 April 25, 2013) Page 13 of 17

14 6) Describe the Issuer s Business, Products and Services A. a description of the issuer s business operations; Virtual Medical International, Inc. (the Company ) was originally incorporated in the State of Nevada on July 19, 2007 as QE Brushes, Inc. On October 19, 2010, the Company changed its name to Virtual Medical International, Inc. The Company initially was in the business of internet-based medical education, offering web-based programs to educate patients on the risks and benefits of medical treatments. On May 16, 2018, the Company acquired 100% of the equity interest of Environmental Robotics Limited ( ER ), a company incorporated in the Marshall Islands. ER holds 100% of the equity interest of Jinbaixing (Shenzhen) Clean Energy Technology Service Co., Ltd ( Jinbaixing )., a company incorporated in the People s Republic of China ( PRC ). The Company issued 5,000,000 shares to the original shareholders of ER as consideration. Both ER and Jinbaixing are investment holding companies. On May 24, 2018, the Company, through Jinbaixing, acquired 40% of the equity interest of Xiaojin County Ruibo Big Data Technology Co., Ltd. ( Big Data ), a company incorporated in the PRC. Big Data is engaged in the business of mining cryptocurrencies. The Company issued 10,000,000 shares to the original shareholders of Big Data as consideration. B. Date and State (or Jurisdiction) of Incorporation: July 19, Nevada C. the issuer s primary and secondary SIC Codes; 3990 D. the issuer s fiscal year end date; December 31 E. principal products or services, and their markets; The Company is in the business of medical education via the internet. Several web based programs serve to convey to patients the risks and benefits of medical treatments in an easy to understand, yet comprehensible fashion. By using these services, patients will be able to make more informed decisions regarding their care and treatment thereby decreasing risk of a misinformed malpractice suit against a physician, hospital or other medical provider. By acquiring Big Data (see notes above), the Company is engaged in mining cryptocurrencies. 7) Describe the Issuer s Facilities The Company has no facilities to list 8) Officers, Directors, and Control Persons A. Names of Officers, Directors, and Control Persons. In responding to this item, please provide the names of each of the issuer s executive officers, directors, general partners and control persons (control persons are beneficial owners of more than five percent (5%) of any class of the issuer s equity securities), as of the date of this information statement. Name: Yueng Yuenyong Title: Chief Executive Officer / Chief Financial Officer / Secretary / Sole Director Business Address: 3651 Lindell Road, Unit D-639, Las Vegas, NV Compensation: Ownership: OTC Pink Basic Disclosure Guidelines (v1.1 April 25, 2013) Page 14 of 17

15 B. Legal/Disciplinary History. Please identify whether any of the foregoing persons have, in the last five years, been the subject of: 1. A conviction in a criminal proceeding or named as a defendant in a pending criminal proceeding (excluding traffic violations and other minor offenses); 2. The entry of an order, judgment, or decree, not subsequently reversed, suspended or vacated, by a court of competent jurisdiction that permanently or temporarily enjoined, barred, suspended or otherwise limited such person s involvement in any type of business, securities, commodities, or banking activities; 3. A finding or judgment by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission, the Commodity Futures Trading Commission, or a state securities regulator of a violation of federal or state securities or commodities law, which finding or judgment has not been reversed, suspended, or vacated; or 4. The entry of an order by a self-regulatory organization that permanently or temporarily barred suspended or otherwise limited such person s involvement in any type of business or securities activities. C. Beneficial Shareholders. The following table sets forth, as of June 30, 2018, the name, address and shareholdings or the percentage of shares owned by all persons beneficially owning more than ten percent (10%) of any class of the issuer s equity securities. If any of the beneficial shareholders are corporate shareholders, provide the name and address of the person(s) owning or controlling such corporate shareholders and the resident agents of the corporate shareholders. Name NYJJ Investments Limited (3) 4703 Central Plaza 18 Harbour Road Wan Chai, HK Number of shares Beneficially Owned Class Percentage of Class (1) (2) 350,000,000 Common stock 83% 25,000,000 Series B Preferred Stock 69% (1) The above percentages are based on 421,671,541 shares of common stock outstanding as of June 30, (2) The above percentages are based on 36,470,893 shares of Series B preferred stock outstanding as of June 30, (3) NYJJ Investments Limited is owned and managed by Ms. Nankalamu, a citizen of the People s Republic of China. 9) Third Party Providers Legal Counsel Name: Patrick Loney Firm: N/A Address 1: Vikings Crest Loop NE Address 2: Poulsbo, WA Phone: Loney.Pat@gmail.com OTC Pink Basic Disclosure Guidelines (v1.1 April 25, 2013) Page 15 of 17

16 Accountant or Auditor Investor Relations Consultant Other Advisor OTC Pink Basic Disclosure Guidelines (v1.1 April 25, 2013) Page 16 of 17

17 10) Issuer Certification The issuer shall include certifications by the chief executive officer and chief financial officer of the issuer (or any other persons with different titles, but having the same responsibilities). The certifications shall follow the format below: I, Mr. Yueng Yuenyong certify that: 1. I have reviewed this Virtual Medical International, Inc.; 2. Based on my knowledge, this disclosure statement does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this disclosure statement; and 3. Based on my knowledge, the financial statements, and other financial information included or incorporated by reference in this disclosure statement, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this disclosure statement. Date: September 7, 2018 /s/ YEUNG YUENYONG YEUNG YUENYONG President OTC Pink Basic Disclosure Guidelines (v1.1 April 25, 2013) Page 17 of 17