United States Securities and Exchange CommissionWashington, D.C. 20549FORM 10-QSB

|x |  | QUARTERLY REPORT
        PURSUANT TO SECTION 13 OR 15(D) OF THE                                    
|- |  | ---------------------------------------------------------------------------------------------------
|  |  | SECURITIES EXCHANGE
        ACT OF 1934                                                            
|  |  | For the
        quarterly period ended September 30th,
        2007                                
| 
|o |  | TRANSITION REPORT
        PURSUANT TO SECTION 13 OR 15(D) OF THE                                   
|  |  | SECURITIES EXCHANGE ACT                                                                            
|  |  | For the transition
        period from ________________________
        to ________________________

Commission file number: 000-33191



VISUALMED CLINICAL SOLUTIONS CORP.(Exact name of small business issuer as specified in its charter)

|NEVADA                          |  | 88-0436055                  
|------------------------------- |  | ----------------------------
|(State of other jurisdiction of |  | (IRS Employer Identification
|incorporation or organization)  |  | Number)                     

1035 Laurier Street WestMontreal, QuebecCanada H2V 2L1(Address of principal executive offices)(514) 274-1115(Issuers telephone number)(Former name, former address and former fiscal year, if changed since last report)

Check
whether the issuer (1) filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act during the past 12 months (or for such shorter period
that the registrant was  required to file such reports) and (2) has been subject
to such filing requirements for the past 90 days.  Yesx     Noo

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yeso     Nox

APPLICABLE ONLY TO CORPORATE ISSUERS

As of November 14, 2007 the issuer had 55,498,345 outstanding shares of common stock.

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PART I.

ITEM 1. - Financial StatementsVisualMED Clinical Solutions Corp.(A Development Stage Company)

|                                                       |  | Index
|------------------------------------------------------ |  | -----
|Consolidated Balance Sheets                            |  | F1  
|Consolidated Statements of
        Operations          |  | F2  
|Consolidated Statements of
        Cash Flows          |  | F3  
|Consolidated Notes to the
        Financial Statements |  | F4  

1

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VisualMED Clinical Solutions Corp.(A Development Stage Company)Consolidated Balance Sheets(expressed in U.S. dollars)

|                                                                                      |  | September 30, |   | June 30,
|------------------------------------------------------------------------------------- |  | ------------- | - | --------
|                                                                                      |  | 2007          |   | 2007    
|                                                                                      |  | $             |   | $       
|                                                                                      |  | (Unaudited)   |   |         
|                                                                                     
|Assets                                                                                |  |               |   |         
|                                                                                     
|Current Assets                                                                        |  |               |   |         
|                                                                                     
|Cash                                                                                  |  |              |   |         
|Accounts
        receivable                                                           |  | 6,250         |   |         
|Advances
        to related parties (Note 3)                                          |  | 30,315        |   |         
|Prepaid
        expenses (Note 4)                                                     |  | 94,071        |   |         
|Inventory                                                                             |  | 50,552        |   |         
|Other
        assets                                                                  |  | 13,064        |   |         
|Total Current Assets                                                                  |  | 194,252       |   |         
|                                                                                     
|Property
        and Equipment (Note 5)                                               |  | 44,942        |   |         
|Total
        Assets                                                                  |  | 239,194       |   |         
|                                                                                     
|Liabilities and Stockholders Deficit                                                 |  |               |   |         
|                                                                                     
|Current Liabilities                                                                   |  |               |   |         
|                                                                                     
|Bank indebtedness                                                                     |  | 12,703        |   |         
|Accounts
        payable                                                              |  | 1,542,470     |   |         
|Accrued
        liabilities (Note 6)                                                  |  | 166,901       |   |         
|Loan payable
        (Note 7)                                                         |  | 50,405        |   |         
|Advances
        from related parties (Note 8)                                        |  | 102,705       |   |         
|Current
        portion of capital lease obligation                                   |  | 2,450         |   |         
|Deferred
        revenue                                                              |  | 310,081       |   |         
|Total
        Liabilities                                                             |  | 2,187,715     |   |         
|                                                                                     
|Commitments (Notes 1 and
        14)                                                  |  |               |   |         
|Stockholders Deficit                                                                 |  |               |   |         
|Preferred Stock (Note 9),                                                             |  |               |   |         
|Authorized:
        15,000,000 shares, Series A 10% Cumulative; par value $0.00001;   |  |               |   |         
|Issued
        and outstanding: nil shares                                            |  |              |   |         
|Authorized:10,000,000
        shares, Undesignated; par value $0.00001;               |  |               |   |         
|Issued
        and outstanding: nil shares                                            |  |              |   |         
|Common Stock (Note 10),                                                               |  |               |   |         
|Authorized:
        100,000,000 shares, par value $0.00001;                           |  |               |   |         
|Issued
        and outstanding: 52,218,345 shares (June 30, 2007  49,728,345 shares) |  | 522           |   |         
|Additional Paid-in Capital                                                            |  | 28,625,166    |   |         
|Common Stock Subscriptions
        Receivable                                         |  | (2,450        | ) |         
|Accumulated Other Comprehensive
        Loss                                          |  | (266,309      | ) |         
|Deficit
        Accumulated During the Development Stage                              |  | (30,305,450   | ) |         
|Total
        Stockholders Deficit                                                   |  | (1,948,521    | ) |         
|Total
        Liabilities and Stockholders Deficit                                   |  | 239,194       |   |         

(The accompanying notes are an integral part of these consolidated financial statements)F-1

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VisualMED Clinical Solutions Corp.(A Development Stage Company)Consolidated Statements of Operations(expressed in U.S. dollars)(unaudited)

|                                                 |  | Accumulated from          |   | For the       |            | For the      
|------------------------------------------------ |  | ------------------------- | - | ------------- | ---------- | -------------
|                                                 |  | September 7,
        1999 |   | Three Months  |            | Three Months 
|                                                 |  | (Date of Inception)       |   | Ended         |            | Ended        
|                                                 |  | to September
        30,  |   | September 30, |            | September 30,
|                                                 |  | 2007                      |   | 2007          |            | 2006         
|                                                 |  | $                         |   | $             |            | $            
|                                                
|Revenue                                          |  | 724,508                   |   |               | 59,750     |              
|Cost
        of sales                            |  | 201,003                   |   |               | 12,187     |              
|Gross
        Profit                             |  | 523,505                   |   |               | 47,563     |              
|                                                
|Expenses                                         |  |                           |   |               |            |              
|Acquired
        in-process research and         |  |                           |   |               |            |              
|development                                      |  | 7,920,730                 |   |               |           |              
|Amortization                                     |  | 69,998                    |   |               | 9,064      |              
|Customer
        service                         |  | 1,952,567                 |   |               | 186,254    |              
|Development
        costs                        |  | 2,332,715                 |   |               | 162,098    |              
|General
        and administration               |  | 5,169,150                 |   |               | 329,364    |              
|Sales
        and marketing                      |  | 8,716,869                 |   |               | 1,182,328  |              
|                                                
|Total
        Expenses                           |  | 26,162,029                |   |               | 1,869,108  |              
|                                                
|Net Loss From Operations                         |  | (25,638,524               | ) |               | (1,821,545 | )            
|                                                
|Other Income (Expenses)                          |  |                           |   |               |            |              
|Interest                                         |  | (47,824                   | ) |               | (6,547     | )            
|Financing
        costs                          |  | (4,514,285                | ) |               |           |              
|Foreign
        exchange gain                    |  | 277,260                   |   |               | (2,921     | )            
|Gain on
        forgiveness of interest          |  | 7,655                     |   |               |           |              
|Gain
        on forgiveness of debt              |  | 12,689                    |   |               |           |              
|                                                
|Net Loss Before Discontinued
        Operations  |  | (29,903,029               | ) |               | (1,831,013 | )            
|                                                
|Discontinued
        Operations                  |  | (402,421                  | ) |               |           |              
|                                                
|Net Loss                                         |  | (30,305,450               | ) |               | (1,831,013 | )            
|                                                
|Other Comprehensive Loss                         |  |                           |   |               |            |              
|Foreign
        currency translation adjustments |  | (266,309                  | ) |               | (12,296    | )            
|                                                
|Comprehensive
        Loss                       |  | (30,571,759               | ) |               | (1,843,309 | )            
|                                                 |  |                           |   |               |            |              
|Net
        Loss Per Share  Basic and Diluted   |  |                           |   |               | (0.04      | )            
|                                                 |  |                           |   |               |            |              
|Weighted
        Average Shares Outstanding      |  |                           |   |               | 51,069,000 |              

(The accompanying notes are an integral part of these consolidated financial statements)F-2

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VisualMED Clinical Solutions Corp.(A Development Stage Company)Consolidated Statements of Cash Flows(expressed in U.S. dollars)(unaudited)

|                                                                                    |  | For the       |   | For the      
|----------------------------------------------------------------------------------- |  | ------------- | - | -------------
|                                                                                    |  | Three Months  |   | Three Months 
|                                                                                    |  | Ended         |   | Ended        
|                                                                                    |  | September 30, |   | September 30,
|                                                                                    |  | 2007          |   | 2006         
|                                                                                    |  | $             |   | $            
|Operating Activities                                                                |  |               |   |              
|Net
        loss                                                                    |  | (1,831,013    | ) |              
|Adjustments to reconcile
        net loss to net cash used in operating activities: |  |               |   |              
|Amortization                                                                        |  | 9,064         |   |              
|Stock-based
        compensation                                                    |  | 1,355,361     |   |              
|Changes in operating assets
        and liabilities                                 |  |               |   |              
|Accounts
        receivable                                                         |  | 124,467       |   |              
|Prepaid
        expenses                                                            |  | 35,744        |   |              
|Inventory                                                                           |  | (47,327       | ) |              
|Other
        assets                                                                |  | (4,551        | ) |              
|Deferred
        revenue                                                            |  | 11,831        |   |              
|Advances
        to related parties                                                 |  | (1,960        | ) |              
|Accounts
        payable and accrued liabilities                                    |  | 117,778       |   |              
|Other
        liabilities                                                           |  |              |   |              
|Net
        Cash (Used In) Provided By Operating Activities                         |  | (230,606      | ) |              
|Investing Activities                                                                |  |               |   |              
|Purchase
        of property and equipment                                          |  |              |   |              
|Net
        Cash (Used In) Investing Activities                                     |  |              |   |              
|Financing Activities                                                                |  |               |   |              
|Proceeds
        from the sale of common stock                                      |  |              |   |              
|Bank
        indebtedness                                                           |  | 12,703        |   |              
|Proceeds
        from loan                                                          |  | 50,405        |   |              
|Repayment
        of capital lease obligation                                       |  | (1,119        | ) |              
|Advances
        from related parties                                               |  | 57,641        |   |              
|Net
        Cash Provided By Financing Activities                                   |  | 119,630       |   |              
|Effect
        of Exchange Rate Changes on Cash                                     |  | (12,342       | ) |              
|Decrease in Cash                                                                    |  | (123,318      | ) |              
|Cash  Beginning
        of Period                                                  |  | 123,318       |   |              
|Cash  End
        of Period                                                        |  |              |   |              
|                                                                                   
|Supplemental Disclosures                                                            |  |               |   |              
|Interest
        paid                                                               |  |              |   |              
|Income
        taxes paid                                                           |  |              |   |              

(The accompanying notes are an integral part of these consolidated financial statements)F-3

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|1. | Nature of Operation and Continuance
    of Business                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   | The Company was incorporated in the State of Nevada on September 7, 1999. The Company changed its name to VisualMed Clinical Solutions Corp. on November 30, 2004. The Companys majority shareholder is Visual Healthcare
Corporation, which is a Nevada Corporation, based in Montreal, Canada.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|  
|   | The Companys business plan involves the distribution of medical software. The Company is primarily involved in activities related to the distribution of medical software and is considered to be a development stage
company. At September 30, 2007, the Company had a working capital deficiency of $1,993,463 and has incurred losses of $30,305,450 since inception. The ability of the Company to emerge from the development stage with respect to any planned principal
business activity is dependent upon its successful efforts to raise additional equity financing and then attain profitable operations. There is no guarantee that the Company will be able to complete any of the above objectives. These financial
statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that may be necessary should the Company be unable to continue as a going concern. These factors raise
substantial doubt regarding the Companys ability to continue as a going concern.
|  
|   | Management plans to seek additional capital through equity and/or debt offerings and has asked for the continued financial support of related parties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|  
|2. | Summary of Significant Accounting Principles                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|  
|   | a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  
|   | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  

(The accompanying notes are an integral part of these consolidated financial statements)F-4

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|2. | Summary of Significant Accounting Policies (continued)
|-- | ------------------------------------------------------
|   |                                                       
|   | c)                                                    
|  
|   |                                                       
|  
|   | d)                                                    
|  
|   |                                                       
|  
|   | e)                                                    
|  
|   |                                                       
|  
|   | f)                                                    
|  
|   |                                                       
|  
|   | g)                                                    
|  
|   |                                                       
|  
|   |                                                       
|  

(The accompanying notes are an integral part of these consolidated financial statements)F-5

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|2. | Summary of Significant Accounting Policies (continued)
|-- | ------------------------------------------------------
|   |                                                       
|   | h)                                                    
|  
|   |                                                       
|  
|   | i)                                                    
|  
|   |                                                       
|  
|   | j)                                                    
|  
|   |                                                       
|  
|   | k)                                                    
|  
|   |                                                       
|  
|   | l)                                                    
|  
|   |                                                       
|  

(The accompanying notes are an integral part of these consolidated financial statements)F-6

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|2. | Summary of Significant Accounting Policies (continued)
|-- | ------------------------------------------------------
|   |                                                       
|   | m)                                                    
|  
|   |                                                       
|  
|   |                                                       
|  
|   | n)                                                    
|  
|   |                                                       
|  
|   | o)                                                    
|  
|   |                                                       
|  
|   | p)                                                    
|  
|   |                                                       
|  
|   | q)                                                    
|  
|   |                                                       
|  

(The accompanying notes are an integral part of these consolidated financial statements)F-7

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|2. | Summary of Significant Accounting Policies (continued)
|-- | ------------------------------------------------------
|   |                                                       
|   | r)                                                    
|  
|   |                                                       
|  
|   | s)                                                    
|  
|   |                                                       
|  
|   | t)                                                    
|  
|   |                                                       
|  
|   | u)                                                    
|  
|   |                                                       
|  
|   |                                                       
|  

(The accompanying notes are an integral part of these consolidated financial statements)F-8

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|3.                               | Advances to Related Parties                                                                                                                                                                                                                                                      |         |        |              |                            |                            |               |         |          |          |         |         | 
|-------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------- | ------ | ------------ | -------------------------- | -------------------------- | ------------- | ------- | -------- | -------- | ------- | ------- | 
|                                
|                                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            | September 30, |         |          | June 30, |        
|                                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            |               | 2007    |          |          |         | 2007    | 
|                                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            |               | $       |          |          |         | $       | 
|                                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            |               |         |          |          |         |         | 
|Advances
        to employees    |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            | 30,315        |         |          |          | 29,231  |        
|                                
|                                 | Advances to employees
        represent amounts advanced towards travel expenses to be incurred and
        are non-interest bearingand unsecured.                                                                                                                              
|                                
|4.                               | Prepaid Expenses                                                                                                                                                                                                                                                                 |         |        |              |                            |                            |               |         |          |          |         |         | 
|                                
|                                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            | September 30, |         |          | June 30, |        
|                                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            |               | 2007    |          |          |         | 2007    | 
|                                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            |               | $       |          |          |         | $       | 
|                                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            |               |         |          |          |         |         | 
|Directors and officers insurance |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            | 7,175         |         |          |          | 14,568  |        
|Rent                             |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            | 74,912        |         |          |          | 91,419  |        
|Security deposit                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            | 4,536         |         |          |          | 4,232   |        
|Other                            |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            | 7,448         |         |          |          | 12,031  |        
|                                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            | 94,071        |         |          |          | 122,250 |        
|                                
|5.                               | Property and Equipment                                                                                                                                                                                                                                                           |         |        |              |                            |                            |               |         |          |          |         |         | 
|                                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            |               |         |          |          |         |         | 
|                                 |                                                                                                                                                                                                                                                                                  |         |        | Accumulated  | September 30,2007          | June 7 , 2007             
|                                 |                                                                                                                                                                                                                                                                                  |         | Cost   | Amortization | Net carrying
        value | Net carrying
        value
|                                 |                                                                                                                                                                                                                                                                                  |         | $      |              | $                          |                            |               | $       |          |          |         | $       | 
|                                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            |               |         |          |          |         |         | 
|                                 | Computer hardware                                                                                                                                                                                                                                                                |         | 67,622 |              | 44,000                     |                            |               | 23,622  |          |          |         | 27,622  | 
|Computer software                |                                                                                                                                                                                                                                                                                  | 31,360  |        | 21,609       |                            |                            | 9,751         |         |          |          | 11,611  |        
|Office furniture                 |                                                                                                                                                                                                                                                                                  | 14,102  |        | 7,376        |                            |                            | 6,726         |         |          |          | 6,932   |        
|Leasehold
        improvements   |                                                                                                                                                                                                                                                                                  | 10,859  |        | 6,016        |                            |                            | 4,843         |         |          |          | 5,025   |        
|                                 |                                                                                                                                                                                                                                                                                  | 123,943 |        | 79,001       |                            |                            | 44,942        |         |          |          | 51,190  |        
|                                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            |               |         |          |          |         |         | 
|                                 | Assets under capital
        lease with a cost of $13,026 are included in office furniture. During
        the three month period endedSeptember
        30, 2007, the Company recognized amortization of assets under capital
        lease of $617 (September 30, 2006 -$927).
|                                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            |               |         |          |          |         |         | 
|6.                               | Accrued Liabilities                                                                                                                                                                                                                                                              |         |        |              |                            |                            |               |         |          |          |         |         | 
|                                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            |               |         |          |          |         |         | 
|                                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            | September 30, |         | June 30,
|                                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            |               | 2007    |          |          |         | 2007    | 
|                                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            |               | $       |          |          |         | $       | 
|                                
|                                 | Salaries, wages and vacation
        pay                                                                                                                                                                                                                                         |         |        |              |                            |                            |               | 163,371 |          |          |         | 197,401 | 
|Other                            |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            | 3,530         |         |          |          |        |        
|                                 |                                                                                                                                                                                                                                                                                  |         |        |              |                            |                            | 166,901       |         |          |          | 197,401 |        

(The accompanying notes are an integral part of these consolidated financial statements)F-9

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|7.                                                                          | Loan payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  |               |         |          |      |   |        | 
|--------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------- | ------- | -------- | ---- | - | ------ | 
|                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |               |         |          |      |   |        | 
|                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | September 30, |         | June 30,
|                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |               | 2007    |          |      |   | 2007   | 
|                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |               | $       |          |      |   | $      | 
|                                                                           
|                                                                            | Advances
        from shareholder, 10% per annum, unsecured, no fixed terms of repayment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |               | 50,405  |          |      |   |       | 
|                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | 50,405        |         |          |      |  |       
|                                                                           
|                                                                           
|8.                                                                          | Advances from Related Parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |               |         |          |      |   |        | 
|                                                                           
|                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | September 30, |         | June 30,
|                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | 2007          |         |          | 2007 |  
|                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | $             |         |          | $    |  
|                                                                           
|                                                                            | Advances from officers, 15%
        per annum, unsecured, no fixed terms of repayment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |               | 45,064  |          |      |   | 42,288 | 
|Advances
        from officers, 15% per annum, unsecured, payable on demand |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | 57,641        |         |          |      |  |       
|                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |               | 102,705 |          |      |   | 42,288 | 
|                                                                           
|                                                                           
|9.                                                                          | Preferred Stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |               |         |          |      |   |        | 
|                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |               |         |          |      |   |        | 
|                                                                            | On
          January 12, 2006, the Company restated its Articles of Incorporation
          to increase the authorized share capital to 125,000,000 shares consisting
          of 100,000,000 shares of common stock, and 25,000,000 shares of preferred
          stock, of which 15,000,000 have been designated as Series A 10% Cumulative
          Preferred Stock.
      The Series A 10% Cumulative
          Preferred Stock has a par value of $0.00001 per share, a stated value
          of $1.00 per share and are non-voting. The holders of the Series A
          Preferred Stock will be entitled to receive an annual dividend equal
          to 10% per annum of the stated value of $1.00 per share payable, at
          the option of the Board of Directors, in either cash or in shares of
    Series A Preferred Stock.

|    |                                                     
|--- | ----------------------------------------------------
|10. | Common Stock                                        
|   
|    | For the three-month period ended September 30, 2007:
|   
|    |                                                     
|    | a)                                                  
|   
|    | b)                                                  
|   
|    | c)                                                  
|   

(The accompanying notes are an integral part of these consolidated financial statements)F-10

---



|11.                                     | Share Purchase
        Warrants                                                  |            |            |      |               
|--------------------------------------- | -------------------------------------------------------------------------------- | ---------- | ---------- | ---- | --------------
|                                        |                                                                                  |            |            |      |               
|                                        | The following table summarizes
        the continuity of the Companys warrants: |            |            |      |               
|                                        |                                                                                  |            |            |      | Weighted      
|                                        |                                                                                  |            |            |      | Average       
|                                        |                                                                                  |            | Number of  |      | Exercise Price
|                                        |                                                                                  |            | Warrants   |      | $             
|                                        | Outstanding,
        June 30, 2007                                               |            | 10,000,000 |      | 0.01          
|Issued                                  |                                                                                  |           |            |    
|Expired                                 |                                                                                  |           |            |    
|Outstanding,
        September 30, 2007 |                                                                                  | 10,000,000 |            | 0.01

|           |                                                                                       
|---------- | --------------------------------------------------------------------------------------
|           | At September 30,
        2007, the following share purchase warrants were outstanding:
|           |                                                                                       
|Number of  |                                                                                       
|Warrants   |                                                                                       
|10,000,000 |                                                                                       

|12. | Stock Options                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | Effective October 4, 2006, the Company filed a Form S-8 Registration Statement in connection with its October 2006 Non-Qualified Stock Option Plan (the October 2006 Plan) allowing for the direct award of stock
or granting of stock options to directors, officers, employees and consultants to acquire up to a total of 2,000,000 shares of common stock. At June 30, 2007, the Company had 44,500 shares of common stock unissued pursuant to the plan.
|   
|    | Effective March 22, 2007, the Company filed a Form S-8 Registration Statement in connection with its March 2007 Non-Qualified Stock Option Plan (the March 2007 Plan) allowing for the direct award of stock or
granting of stock options to directors, officers, employees and consultants to acquire up to a total of 2,000,000 shares of common stock. At June 30, 2007, the Company had no shares of common stock unissued pursuant to the plan.         
|   
|    | Effective July 24, 2007, the Company filed a Form S-8 Registration Statement in connection with its July 2007 Non- Qualified Stock Option Plan (the July 2007 Plan) allowing for the direct award of stock or
granting of stock options to directors, officers, employees and consultants to acquire up to a total of 6,500,000 shares of common stock.                                                                                                      
|   
|    | The weighted average grant date fair value of stock options granted during the three months ended September 30, 2007 and 2006 was $0.44 and $1.79, respectively. During the three months ended September 30, 2007, the Company
charged to operations stock-based compensation relating to the granting of options of $1,355,361 (2006 - $963,746).                                                                                                             
|   

(The accompanying notes are an integral part of these consolidated financial statements)F-11

---



|12.                                     | Stock Options
        (continued)                                                                                                                                                                                                                                                                                                                                                                                                                              |            |           |                |   |                  |      |                  |      |           |   |        | 
|--------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------- | --------- | -------------- | - | ---------------- | ---- | ---------------- | ---- | --------- | - | ------ | 
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |            |           |                |   |                  |      |                  |      |           |   |        | 
|                                        | A summary of the Companys
        stock                                                                                                                                                                                                                                                                                                                                                                                                                       |            |           |                |   | Weighted Average |      | Weighted-Average |      | Aggregate
|                                        | option activity is as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                 | Number of  |           | Exercise Price |   | Remaining        |      | Intrinsic       
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Shares     |           |                | $ |                  |      | Contractual Term |      | Value    
|                                        | Outstanding, June 30, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                     |            | 1,340,000 |                |   |                  | 1.29 |                  |      |           |   |        | 
|Granted                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 3,100,000  |           |                |   | 0.05             |      |                  |      |           |   |       
|Exercised                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (2,490,000 | )         |                |   | 0.00001          |      |                  |      |           |   |       
|Cancelled                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                |           |           |                |   |                 |      |                  |      |           |   |       
|Outstanding,
        September 30, 2007 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 1,950,000  |           |                |   | 0.97             |      |                  | 2.36 |           | $ | 76,100
|Exercisable,
        September 30, 2007 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 1,950,000  |           |                |   | 0.97             |      |                  | 2.36 |           | $ | 76,100
|                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                        | During the three months ended
          September 30, 2007, the Company granted 3,100,000 stock options to
          purchase shares of common stock at a weighted average price below market
          of $0.05 per share with an intrinsic value of $1,249,981.
      The fair value of each option
          grant was estimated on the date of the grant using the Black-Scholes
    option pricing model with the following weighted average assumptions:

|                         |                         |      | Three Months  |  
|------------------------ | ----------------------- | ---- | ------------- | -
|                         |                         |      | Ended        
|                         |                         |      | September 30,
|                         |                         |      | 2007         
|                         | Expected dividend yield |      | 0             | %
|Expected volatility      |                         | 87   | %            
|Expected life (in years) |                         | 5.0  |              
|Risk-free interest rate  |                         | 4.28 | %            

|                                        |                                                                                                                                                                                              
|--------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                        | A summary of
        the status of the Companys nonvested shares as of September 30,
        2007, and changes during the three months ended September 30, 2007, is
        presented below:
|                                        |                                                                                                                                                                                              
|                                        |                                                                                                                                                                                              
|                                        |                                                                                                                                                                                              
|                                        |                                                                                                                                                                                              
|                                        | Nonvested Shares                                                                                                                                                                             
|                                        | Nonvested at July 1, 2007                                                                                                                                                                    
|Granted                                 |                                                                                                                                                                                              
|Vested                                  |                                                                                                                                                                                              
|                                        |                                                                                                                                                                                              
|Nonvested
        at September 30, 2007 |                                                                                                                                                                                              

(The accompanying notes are an integral part of these consolidated financial statements)F-12

---



|13. | Segment Disclosures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | The Company operates as one operating segment
        which is the sale of its suite of clinical software modules. The Chief
        Executive Officer is the Companys Chief Operating Decision Maker
        (CODM) as defined by SFAS 131, Disclosure
        about Segments of an Enterprise and Related Information. The
        CODM allocates resources and assesses the performance of the Company
    based on the results of operations.                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|14. | Commitments a)In
        November 2004, the Company entered into a lease agreement for office
        premises at a rate of $89,000 (CDN$88,265) per annum including property
        taxes, insurance and other operating expenses, for a five year term expiring
        on September 30, 2009, with an option to renew for an additional five
        years. During the three-month period ended September 30, 2007, the Company
        incurred rent expense of $14,835. Future payments for the next five fiscal
    years are as follows:
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    | 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | 2012                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

|                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|---------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                               | b)                                                                                                                                                                                                                                                                                                                                                                                                                                                         | On June 5, 2006, the Company entered
        into an automobile lease for a term of 48 months. The monthly payments
        are $647 (CAD$642) ending May 5, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                               | c)                                                                                                                                                                                                                                                                                                                                                                                                                                                         | On November 13, 2006, the Company
        entered into an investor relations agreement with a consultant and issued
        200,000 shares of common stock with a fair value of $360,000 which was
        included in general and administrative expense. The Company has also
        agreed to issue the following: 100,000 shares of common stock when the
        Companys stock trades at $2.50 per share, 100,000 shares of common
        stock when the Companys stock trades at $3.25 per share, and 100,000
        shares of common stock when the Companys stock trades at $3.75
        per share. The contingently issuable shares have been recorded in general
        and administrative expense at a fair value of $540,000 and in additional
        paid-in capital in accordance with EITF 96-18, Accounting for Equity
        Instruments That Are Issued to Other Than Employees for Acquiring, or
        in Conjunction With Selling, Goods or Services and EITF 00-19 Accounting
        for Derivative Financial Instruments Indexed to, and Potentially Settled
        in, a Companys Own Stock.
|                                              
|15.                                            | Geographic Information and Major
        Customers                                                                                                                                                                                                                                                                                                                                                                                                        
|                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                               | Revenues
        from external customers:                                                                                                                                                                                                                                                                                                                                                                                                                  | $                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                              
|                                               | United States                                                                                                                                                                                                                                                                                                                                                                                                                                              | 59,750                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|Canada                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Total revenues
        from external customers | 59,750                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                               | All long-lived assets are domiciled
        in Canada. During the three months ended September 30, 2007, the Company
        recognized $59,750 (2006 - $8,750) of revenue from the licensing of software
        and technology. For the three months ended September 30, 2007, revenue
        from one customer represented 90% (2006  57%) of total revenue
        and from a second customer represented 10% (2006  43%) of total
        revenue.
|                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                           

(The accompanying notes are an integral part of these consolidated financial statements)

F-13

---





|16. | Subsequent Events                             
|--- | ----------------------------------------------
|    |                                               
|    | Subsequent to September 30, 2007, the Company:
|    |                                               
|    | a)                                            
|   
|    | b)                                            
|   

(The accompanying notes are an integral part of these consolidated financial statements)

F-14

---



ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS AND PLAN OF OPERATIONS

Overview

We continue to follow recent major initiatives where we have invested considerable time and resources to diversify and expand the application of our technology into new areas of the healthcare industry. The major focus must
remain with the marketing of our technology to private healthcare providers and private customers.

Now that we have made the effort to adapt our technology and opened new markets, we will be in a position to considerably reduce our operating expenses in the coming year. A particular focus will be independent clinics and
oncology specialty facilities such as the Segal Cancer Center. These system deployments are rapid, cost-effective and have a much shorter sales cycle than full hospitals.

At September 30, 2007, the Company had a working capital deficiency of $1,993,461 and has incurred losses of $30,305,450 since inception. These factors raise substantial doubt about our ability to continue as a going
concern without raising significant additional capital or generating significant revenue in the upcoming fiscal year.

We incurred losses of $1,831,013 for the three months ending September 2007. This compares to $1,477,007 in the comparable prior year period.The components of these losses were costs associated with sales and marketing, research and development, customer service and general administration. We also incurred professional expenses, depreciation and filing fees.

Operating expenses for the three months ending September 30, 2007 were $1,869,107.

Marketing Strategy and Recent Developments

Management believes that the diversification of our revenue sources into markets other than those governed by institutions and governments represents a watershed change in orientation intended to offset the disappointing
revenue growth from the hospital sector. We are now offering our tools to a growing segment of the private healthcare sector which views embracing new technology as a necessary tool to compete against the much slower reacting public sector.

During this first quarter we continued our efforts toward meeting the strategic objectives of diversifying our revenue stream, through the marketing of stand alone modules and the application of our fully scaleable
technology to a broader base of healthcare facilities, which include doctors offices, pharmacies, smaller surgery clinics, rehabilitation facilities and the recent development of a market for our software in dialysis clinics and long-term
acute care hospitals. This new marketing activity has resulted in several key contracts; including the previously reported agreements with the Segal Cancer Center of Montreal and the clinics of the Plexo Inc. group of Montréal.

Given that our technology will be fully operational in 6 healthcare facilities by Q2, we still need to deploy in six more facilities in order to reach our strategic threshold of 12 installed sites. We continue to pursue the
opportunities that our growing client base provides. Once a threshold of 12 is reached this should open the way to an acceleration in the rate of additional acquisitions by potential customers.

In the interim, our new stand alone modules are more easily affordable to prospective clients, including small practices, clinics and private specialty facilities whose decision making timeframe is much shorter than regular
hospitals: typically months instead of years. We continue to market our VisualANESTHESIOLOGY module and have signed our first contract for VisualDENTISTRY. VisualDENTISTRY has been positively reviewed by dentists and we expect the success of
VisualDENTISTRY to open the private dental clinic market to us. This is a field in which few of our competitors are active.

These new modules are much faster to implement and reduce integration time to one of the most efficient in the industry. These systems are fully scalable, helping us to target the small and medium-sized clients that form
the bulk of our current and potential market.

The selection by the Segal Cancer Center of the Montreal Jewish General Hospital to implement VisualONCOLOGY, has focused considerable market attention on our system capabilities, with
VisualMED garnering interest from the American Society of Clinical Oncology.

(The accompanying notes are an integral part of these consolidated financial statements)2

---



Our marketing and sales strategy continues for the VisualMED system, and other product lines. We have hired, and intend to continue hiring, sales and marketing executives and consultants who
are influential with major decision makers, notably in Europe and South America.

Negotiations are still on going with several hospital management groups in Europe. We have begun the slow process of establishing a relationship with the new Italian government, and physicians
and local authorities of two Italian provinces. We remain confident that a first VisualMED implementation is imminent. The French healthcare shareable Electronic Medical Record initiative has been put on hold during the political transition in that
country, however we have reestablished contact with the new government.

Most significantly, we have begun to negotiate with the medical department of a major French Corporation which would pay for its employees subscriptions to the Medical.MD web-based personal health information system, which
employs VisualMED electronic health record technology.

Financial Condition, Liquidity and Capital Resources

During the three months ending September 30, 2007, we recognized revenue of $59,750 from licensing of our product.

At September 30, 2007, we had a working capital deficiency of $1,993,461, compared to a working capital deficiency of $1,511,763 at June 30, 2007.

We had a net loss of $1,831,013 and $1,477,007 for
the three month periods ending September 30, 2007 and 2006 respectively.

At September 30, 2007 our total assets were $239,196, as compared to total assets of $467,873 at June 30, 2007.

At September 30, 2007, we had pre-paid expenses of $94,071. This amount consisted of $74,912 for rent, $7,175 for directors and officers insurance, $4,849 for property taxes, $2,599 for a trade show and a security
deposit of $4,536 for the lease of an automobile for a marketing employee.

At September 30, 2007, our total liabilities were $2,187,715, as compared to total liabilities of $1,928,446 at June 30, 2007.

We will need to raise additional equity/debt financing to sustain operations over the next 12 months. Our auditors have expressed substantial doubt about our ability to continue as a going concern in their audit report that
was included in Form 10-KSB for the fiscal year ended June 30, 2007.

Critical Accounting Policies

Our discussion and analysis of financial condition and results of operations are based upon the Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the
United States of America. The preparation of Consolidated Financial Statements require management to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses and disclosures on the date of the
Consolidated Financial Statements. On an on-going basis, we evaluate our estimates, including, but not limited to, those related to revenue recognition.

We use authoritative pronouncements, historical experience and other assumptions as the basis for making judgments. Actual results could differ from those estimates. Critical accounting policies identified are as
follows:

Long-Lived Assets

In accordance with SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, we test long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that
their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors;
accumulation of costs significantly

(The accompanying notes are an integral part of these consolidated financial statements)3

---



Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the
use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value.

Foreign Currency Transactions/Balances

Our functional
    and reporting currency is the United States dollar. The functional currency
    of the Companys subsidiary is the Canadian dollar. The consolidated
    financial statements of this subsidiary are translated to United States dollars
    in accordance with SFAS No. 52, Foreign
    Currency Translation, using period-end
    rates of exchange for assets and  liabilities, and average rates of exchange
    for the period for revenues and expenses. Translation gains (losses) are
    recorded in accumulated other comprehensive income (loss) as a component
    of stockholders equity. Foreign currency transaction
gains and losses are included in current operations.

Revenue Recognition

The Company recognizes revenue related to sales and licensing of medical software in accordance with Statement of Position No. 97-2, Software Revenue Recognition (SOP 97-2), as amended by Statement
of Position No. 98-9, Software Revenue Recognition with Respect to Certain Arrangements. Pursuant to SOP 97-2 and Staff Accounting Bulletin No. 104 Revenue Recognition, revenue will only be recognized when the price is fixed
or determinable, persuasive evidence of an arrangement exists, the service is performed, and collectibility is reasonably assured. The Companys revenue contracts are accounted for in conformity with Accounting Research Bulletin No. 45
Long-Term Construction-Type Contracts (ARB 45), using the relevant guidance in SOP 81-1 Accounting for Performance of Construction-Type and Certain Production-Type Contracts, unless specified criteria for separate
accounting for any service element are met. The Company uses the completed contract method to recognize revenue from long term service contracts. Licensing revenue is recognized if all revenue recognition criteria pursuant to SAB 104 are met. The
Company also follows the guidance in Emerging Issues Task Force (EITF) Issue No. 00-21 Revenue Arrangements with Multiple Deliverables relating to the separability of deliverables included in an arrangement into different
units of accounting and the allocation of an arrangements consideration to those units of accounting. It does not address when revenue should be recognized for the units of accounting.

Development Costs

Costs related to the enhancement of
    existing medical software modules are expensed as incurred until technological
    feasibility in the form of a working model has been established. The time
    period between the establishment of technological feasibility and completion
    of product development is expected to be short, therefore the Company has
    not capitalized any product development costs during the period.

Disclosure Regarding Forward-Looking Statements

Certain statements contained in this quarterly report on Form 10QSB/A constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and
the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause deviations in actual results, performance or achievements to be materially
different from any future results, performance or achievement expressed or implied. Such factors include but are not limited to: market and customer acceptance of and satisfaction with our products, market demand for our products; fluctuations in
foreign currency markets; the use of estimates in the preparation of our financial statements; the impact of competitive products and pricing in our field; the ability to develop and launch new products in a timely fashion; government and industry
regulatory environment; fluctuations in operating results, including, but not limited to, spending on research and development, spending on sales and marketing activities, spending on technical and product support; and other risks outlined in
previous filings with the Securities and Exchange Commission, and in this quarterly report on Form 10-QSB/A. The words believe, expect, may, anticipate, intend and plan and
similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties that cannot be quantified and, consequently, actual results may differ materially from those expressed or implied by such forward-looking
statements. You are cautioned not to place undue reliance on these forward-looking statements. The

(The accompanying notes are an integral part of these consolidated financial statements)4

---



terms Company, we, us, our, VisualMED and the Registrant refer to VisualMED Clinical Solutions Corp., a Nevada corporation, and its subsidiaries.

(The accompanying notes are an integral part of these consolidated financial statements)5

---



Factors that could cause actual results to differ from those expressed in forward-looking statements include, but are not limited to:

- Our limited operating history;
- Our auditors have issued a going concern opinion. Therefore we may not be able to achieve our objectives and may have to suspend or cease operations;
- Because we have historically incurred losses and these losses may increase in the future, we must begin generating a profit from our operations. If we do not begin generating a profit we may have to suspend or cease operations;
- We have experienced a history of losses and expect to incur future losses. Therefore, we must continue to raise money from investors to fund our operations. If we are unable to fund our operations, we will cease doing business;
- Because we depend on a limited number of third parties to manufacture and supply critical components for our products and services, if a third party manufacturer should cease operations or refuse to sell components to us, we may have to suspend or cease operations;
- If we cannot deliver the VisualMED systems our customers demand, we will be unable to attract customers, which would likely result in a loss of income and eventually a termination of our operations;
- Competition from companies with already established marketing links to our potential customers may adversely affect our ability to market our products;
- Our parent company has significant influence over our corporate decisions;
- Because we do not have any patents, we rely on trade secrets, confidentiality agreements and contractual agreements, which may not be adequate to protect our proprietary interests. If our proprietary interests are divulged to the public, our operations may be adversely impacted and we may have to cease operations;
- We may be exposed to liability claims if products based on our technologies are marketed and sold. We have liability insurance coverage in the amount of $1,000,000, however, if a judgment is rendered against us in excess of the amount of our coverage, we may have to cease operations;
- Third parties may claim that our current or future products or services infringe their proprietary rights or assert other claims against us;

(The accompanying notes are an integral part of these consolidated financial statements)6

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- Fluctuations in the value of foreign currencies could result in increased product costs and operating expenses;
- We must be able to respond to rapidly changing technology, services and standards in order to remain competitive;
- Because the market for our common stock is limited, our investors may not be able to resell their shares of common stock;
- Because our common stock is subject to penny stock rules, the liquidity of investments may be restricted.

ITEM 3. CONTROLS AND PROCEDURES

As of the end of the period covered by this report, under the supervision and with the participation of our management, including Gerard Dab, our Chief Executive Officer, and Larry Kurlender,
our Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities and Exchange Act of 1934 (Exchange Act)). Based on that evaluation, our Chief Executive
Officer and our Chief Financial Officer have concluded that these disclosure controls and procedures are effective to ensure that information required to be disclosed in our annual reports filed under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in Securities Exchange Commission rules and forms. There were no changes in our internal control over financial reporting during the fiscal quarter ended September 30, 2007 that have
materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Our officers believe that our disclosure controls and procedures are effective to ensure that information required to be disclosed in the reports that VisualMED files or submits under the Exchange Act is accumulated and
communicated to management, including our Chief Executive Officer and our Chief Financial Officer in order to allow timely decisions regarding required disclosure. There are frequent daily communications among all of our executives, including Chief
Executive Officer, Chief Financial Officer, Chief Operating Officer, President and our Vice President for Finance. All of our budgetary decisions and all of our billing and other expenditures require the written, signed approval of at least three of
our executives. All issues regarding disclosures and procedures are discussed in a timely fashion, including all financial and other key operational information. Current disclosure controls and procedures are governed by the Board of Directors, and
any changes to such controls and procedures must be made with the Boards approval.

Part II

ITEM 1. LEGAL PROCEEDINGS

From time to time we may be involved in litigation incidental to the conduct of our business, such as contractual matters and employee-related matters. Currently, we are not a party to any material legal proceeding or
litigation, whether current or threatened, nor are any of our officers, directors or affiliates, a party adverse to us in any legal proceeding or litigation.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(The accompanying notes are an integral part of these consolidated financial statements)7

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|(a) | Exhibits | Description                                                                                                                                                                                          
|--- | -------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    | 3.1      | Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the Companys Registration Statement on Form SB2 (Registration No. 33394835) filed with the SEC on January 18, 2001).       
|   
|    | 3.2      | Amendment to the Articles of Incorporation (incorporated by reference to Exhibit 3.2 to the Companys Quarterly Report on Form 10QSB filed with the SEC on February 22, 2005).                      
|   
|    | 3.3      | ByLaws (incorporated by reference to Exhibit 3.2 to the Companys Registration Statement on Form SB2 (Registration No. 33394835) filed with the SEC on January 18, 2001).                         
|   
|    | 3.4      | VisualMED Clinical Solutions Corp. October 2006 Nonqualified Stock Option Plan (incorporated by reference to the Companys Registration Statement on Form S-8 filed with the SEC on October 4, 2006).
|   
|    | 3.5      | VisualMED Clinical Solutions Corp. March 2007 Nonqualified Stock Option Plan (incorporated by reference to the Companys Registration Statement on Form S-8 filed with the SEC on March 22, 2007).   
|   
|    | 3.6      | VisualMED Clinical Solutions Corp. July 2007 Nonqualified Stock Option Plan (incorporated by reference to the Companys Registration Statement on Form S-8 filed with the SEC on July 24, 2007).     
|   
|    | 31.1     | Certification of Principal Executive Officer pursuant to Rule 13a-15(e) and Rule 15d-15(e), promulgated under the Securities and Exchange Act of 1934, as amended.                                   
|   
|    | 31.2     | Certification of Principal Financial Officer pursuant to Rule 13a-15(e) and Rule 15d-15(e), promulgated under the Securities and Exchange Act of 1934, as amended.                                   
|   
|    | 32.1     | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Principal Executive Officer).                                                
|   
|    | 32.2     | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Principal Financial Officer).                                                
|   

(The accompanying notes are an integral part of these consolidated financial statements)8

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized, on this 14thday of November, 2007.

VISUALMED CLINICAL SOLUTIONS CORP.(Registrant)By: /s/ Gerard Dab
  Gerard
DabPrincipal
Executive  Officer, Secretary and 
       a member of the Board of Directors



(The accompanying notes are an integral part of these consolidated financial statements)

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