Human Immunodeficiency Virus, commonly known as HIV, is the virus that causes Acquired Immune Deficiency Syndrome, commonly known as AIDS. HIV is spread most commonly by sexual contact with an infected partner. HIV is also spread through contact with infected blood, including through the use of contaminated needles or syringes. Once inside a host body, HIV attacks T cells, a major component of the immune system. The virus then takes over the cells’ reproductive machinery and reproduces itself causing the cells to weaken and eventually die. When the infected cells die, they release the recently created virus into the bloodstream. Other T cells are then invaded and die, and the body is left vulnerable to diseases that easily would have been fought off by a normally functioning immune system.

The demographic profile of HIV/AIDS patients has shifted since the disease was first diagnosed in 1981. According to a recent CDC study, most HIV/AIDS patients now live in the inner-city of a major metropolitan area and are dependent on government programs to pay for the medications to treat HIV/AIDS. According to the Centers for Disease Control and Prevention, or CDC, research report AIDS Epidemic Update December 2004, over the past ten years in the United States an estimated 44,000 people per year have been infected with HIV. The current standard of care for the treatment of HIV/AIDS involves complex treatment regimens of multiple drugs, or “combination therapies,” that consist of predominantly oral medications taken by a patient multiple times a day, typically outside a clinical setting. Combination therapies often require that a patient take variations of the multi-therapy regimens.

The Company has designed its services to improve patient adherence to complex combination therapies. The Company dispenses prescribed medications in customized dose-by-dose packages called MOMSPaks. The Company also dispenses these medications in pre-filled pillboxes, at the patient’s request. .

The Company arranges for delivery of medications as directed by the patients or their physicians in a discreet, convenient and timely manner. The Company believes that this increases patient adherence as it eliminates the need to pick up medications at a local pharmacy.

The Company has experience with the complex reimbursement processes of government programs, such as Medicaid and ADAP, and of private payors, that optimizes collection of payment. As a result, the Company is able to manage efficiently the process of checking reimbursement eligibility, receiving authorization, adjudicating claims and confirming that payment is received.

The medications the Company distributes require timely delivery, may require temperature maintained distribution, and very often require dosage monitoring. Upon initiating service, the Company works closely with the patient and the patient’s physician and other healthcare providers to implement combination therapies.

Gross profit for the year ended December 31, 2004 increased to $7,514,046 from $6,253,487 for the year ended December 31, 2003, an increase of 20.2%, but gross margin declined to 11.6% for the year ended December 31, 2004 from 13.0% for the year ended December 31, 2003.

Selling, general and administrative expenses for the year ended December 31, 2004 increased to $9,891,461 from $8,744,127 for the year ended December 31, 2003, but as a percentage of net sales they declined to 15.3% in 2004 from 18.1% in 2003.

Operating loss for the year ended December 31, 2004 decreased to $2,377,415 from $2,690,640 for the year ended December 31, 2003, which represented 3.7% and 5.6% of net sales, respectively.