NOTE 1 – DESCRIPTION OF BUSINESS

Spine Pain Management, Inc., (the “Company” “we” or “us”) formerly known as Versa Card, Inc., was incorporated in Delaware on March 4, 1998 to acquire interests in various business operations and assist in their development. In November 2009, we changed our name from Versa Card, Inc. to Spine Pain Management, Inc. and our trading symbol from “IGLB” to “SPIN.”

Spine Pain Management Inc. is a medical services and technology company facilitating diagnostic services for patients who have sustained spine injuries resulting from traumatic liability accidents. We deliver turnkey solutions to spine surgeons, orthopedic surgeons and other healthcare providers that provide necessary and appropriate treatment of musculo-skeletal spine injuries resulting from automobile and work-related accidents. Our care management services help reduce the financial burden on healthcare providers that provide patients with early-stage diagnostic testing and non-invasive surgical care, preventing many patients from being unnecessarily delayed or inhibited from obtaining needed treatment. We believe that our patient advocacy will be rewarding to patients who obtain needed relief from painful conditions.

We currently manage eight affiliated spine injury diagnostic centers within the United States, which are located in Houston, Texas; McAllen, Texas; the Tampa Bay Area of Florida; Orlando, Florida (opened in June 2011); Jacksonville, Florida (opened in August 2011); Sarasota, Florida (opened in December 2011); and Lakeland, Florida and Brandon, Florida (both opened in July 2012). We are also evaluating the expansion of our services through additional affiliated spine injury diagnostic centers in multiple markets across the United States.

Through our care management system, we engage spine surgeons, orthopedic surgeons and other healthcare providers to operate as our independent contractors to diagnose and treat patients with musculo-skeletal spine injuries. We manage the centers that provide the spine diagnostic injections and treatment and pay the doctors a fixed rate for the medical procedures they perform. After the doctor bills a patient for the procedures performed, we take control of the patient’s unpaid bill and oversee collection. In most instances, the patient is a plaintiff in an accident case, for which the patient is represented by an attorney. Typically, the defendant (and/or the insurance company of the defendant) in the accident case pays the patient’s bill upon settlement or final judgment of the accident case. The payment to us is made through the patient’s attorney. In most cases, we must agree to the settlement price and the patient must sign off on the settlement. We receive payment prior to the payment of the patient’s attorney legal fees.

The clinic facilities in which the spine injury diagnostic centers operate are owned or leased by third parties. We have no ownership interest in these clinic facilities and we have no responsibilities towards building or operating the clinic facilities.