NOTE 6 - SALE OF SUBSIDIARY	3 Months Ended
Sep. 30, 2011
Notes to Financial Statements
NOTE 6 - SALE OF SUBSIDIARY	On September 30, 2011, the company sold its wholly owned subsidiary Phoenix Ortho, LLC to a related party of the President. A majority of shareholders other than the President approved the sale. The terms of the sale included taking a Note in the amount of $250,000 carrying a four and a half percent (4.5%) interest rate. The buyer also assumed liabilities of the Company of $69,068. The Note is interest only for one year and paid after that time on a five year amortization. Accordingly the company has reported results from operations for nine months ending September 30, 2011 and have reported the balance sheet of only Phoenix Medical Software, Inc at September 30, 2011.

NOTE 6 - SALE OF SUBSIDIARY

3 Months Ended

Sep. 30, 2011

On September 30, 2011, the company sold its wholly owned subsidiary Phoenix Ortho, LLC to a related party of the President. A majority of shareholders other than the President approved the sale. The terms of the sale included taking a Note in the amount of $250,000 carrying a four and a half percent (4.5%) interest rate. The buyer also assumed liabilities of the Company of $69,068. The Note is interest only for one year and paid after that time on a five year amortization. Accordingly the company has reported results from operations for nine months ending September 30, 2011 and have reported the balance sheet of only Phoenix Medical Software, Inc at September 30, 2011.

PHOENIX MEDICAL SOFTWARE, INC. 10-Q