**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-Q**

|  x | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES                EXCHANGE ACT OF 1934 |
|---------|------------------------------------------------------------------------------------------------------------------------|

|  ̈ | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                SECURITIES EXCHANGE ACT |
|--------|----------------------------------------------------------------------------------------------------------------|

**Diapulse      Corporation of America**

| Delaware                                       |   | 13-5671991                         |
|------------------------------------------------|--------|------------------------------------|
| (State                or other jurisdiction of |   | (I.R.S.                Employer    |
| incorporation                of organization)  |   | Identification                No.) |

----

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| Large                accelerated filer |  ̈  | Accelerated                filer         |  ̈ |
|----------------------------------------|--------------|------------------------------------------|--------|
| Non-accelerated                filer   |  ̈       | Smaller                reporting company | x      |

** **

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**DIAPULSE      CORPORATION OF AMERICA**

**INDEX      TO FORM 10-Q**

| **PART                I - FINANCIAL INFORMATION**        |
|----------------------------------------------------------|
|                                                     |   |   |
| Item 1.                                             | Financial                Statements |   |
|                                                     |   |   |
|                                                     | BALANCE                SHEETS (UNAUDITED) September 30, 2008 | 4                -                5 |
|                                                     |   |   |
|                                                     | STATEMENTS                OF OPERATIONS (UNAUDITED) Nine Months ended September 30,                2008 | 6 |
|                                                     | Three                Months ended September 30, 2008-08-07 | 7 |
|                                                     |   |   |
|                                                     | STATEMENTS                OF CASH FLOWS (UNAUDITED) Nine Months ended September 30,                2008 | 8-9 |
|                                                     |   |   |
|                                                     | NOTES                TO UNAUDITED FINANCIAL STATEMENTS | 10 |
|                                                     |   |   |
| Item 2.                                             | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations | 11                - 12 |
|                                                     |   |   |
| Item 4.                                             | Controls                and Procedures | 13 |
|                                                     |   |   |
| **PART                II - OTHER INFORMATION**           |
|                                                     |   |   |
| Item 1.                                             | Legal                Proceedings | 14 |
|                                                     |   |   |
| Item 2.                                             | Unregistered                Sales of Equity Securities and Use of Proceeds | 14 |
|                                                     |   |   |
| Item 3.                                             | Defaults                Upon Senior Securities | 14 |
|                                                     |   |   |
| Item 4.                                             | Submission                of Matters to a Vote of Security Holders | 14 |
|                                                     |   |   |
| Item 5.                                             | Other                Information | 15 |
|                                                     |   |   |
| Item 6.                                             | Exhibits | 15 |
|                                                     |   |   |
| SIGNATURES                                               | 16 |
|                                                     |   |
| EXHIBIT                INDEX                             | 17 |
|                                                     |   |
| CERTIFICATIONS                OF CHIEF EXECUTIVE OFFICER | 18                - 19 |

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**PART      I - FINANCIAL INFORMATION**

**Item      1.**
**      Financial Statements**

**DIAPULSE      CORPORATION OF AMERICA**

**BALANCE      SHEETS**

|                                                                                                                                                                                                            |   | September 30, 2008 Unaudited |    | Dec. 31, 2007Audited |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|---------|--------------------------------|--------|
| Assets                                                                                                                                                                                                          |   |                                        |    |                           |   |   |   |
| Current                Assets:                                                                                                                                                                                  |   |                                        |    |                           |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                        |   | $                                           | 114,843 |                           | $      | 172,936 |   |
| Current                portion of accounts receivable, net of Allowance for doubtful accounts                of                $276,530 at September 30, 2008 and December 31, 2007                respectively |   |                                        | 29,131  |                           |   | 14,160 |   |
| Inventories                                                                                                                                                                                                     |   |                                        | 397,529 |                           |   | 423,623 |   |
| Commission                advances                                                                                                                                                                              |   |                                        | 1,320   |                           |   | - |   |
| Other                current assets                                                                                                                                                                             |   |                                        | 12,641  |                           |   | 11,510 |   |
|                                                                                                                                                                                                            |   |                                        |    |                           |   |   |   |
| Total                current assets                                                                                                                                                                             |   |                                        | 555,464 |                           |   | 622,229 |   |
|                                                                                                                                                                                                            |   |                                        |    |                           |   |   |   |
| Property                and equipment, net                                                                                                                                                                      |   |                                        | 3,787   |                           |   | 5,574 |   |
|                                                                                                                                                                                                            |   |                                        |    |                           |   |   |   |
|                                                                                                                                                                                                            |   |                                        |    |                           |   |   |   |
| Other                assets:                                                                                                                                                                                    |   |                                        |    |                           |   |   |   |
| Accounts                receivable, net of current portion                                                                                                                                                      |   |                                        | 55,252  |                           |   | 55,247 |   |
|                                                                                                                                                                                                            |   |                                        |    |                           |   |   |   |
| Security                deposits                                                                                                                                                                                |   |                                        | 6,573   |                           |   | 9,763 |   |
|                                                                                                                                                                                                            |   |                                        |    |                           |   |   |   |
| Total                other assets                                                                                                                                                                               |   |                                        | 61,825  |                           |   | 65,010 |   |
|                                                                                                                                                                                                            |   |                                        |    |                           |   |   |   |
| Total                Assets                                                                                                                                                                                     |   | $                                           | 621,076 |                           | $      | 692,813 |   |

----

**DIAPULSE      CORPORATION OF AMERICA**

**BALANCE      SHEETS**

|                                                                                                                                                                              |   | September 30, 2008 Unaudited |       | Dec. 31, 2007Audited |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|------------|--------------------------------|--------|
|                                                                                                                                                                              |   |                                        |       |                           |   |
| Current                Liabilities:                                                                                                                                               |   |                                        |       |                           |   |   |   |
| Accounts                payable and accrued liabilities including $76,654 at September 30,                2008                and $73,054 at December 31, 2007 to related parties |   | $                                           | 194,825    |                           | $      | 216,096 |   |
|                                                                                                                                                                              |   |                                        |       |                           |   |   |   |
| Accrued                income taxes                                                                                                                                               |   |                                        | -          |                           |   | 1,055 |   |
|                                                                                                                                                                              |   |                                        |       |                           |   |  |   |
| Total                current liabilities                                                                                                                                          |   |                                        | 194,825    |                           |   | 217,151 |   |
|                                                                                                                                                                              |   |                                        |       |                           |   |   |   |
| Long-term                portion of amounts due estate of former                officer/stockholder                                                                               |   |                                        | 3,420,892  |                           |   | 3,270,145 |   |
|                                                                                                                                                                              |   |                                        |       |                           |   |   |   |
| Total                Liabilities                                                                                                                                                  |   |                                        | 3,615,717  |                           |   | 3,487,296 |   |
|                                                                                                                                                                              |   |                                        |       |                           |   |   |   |
| Stockholders'                equity:                                                                                                                                              |   |                                        |       |                           |   |   |   |
| Common                stock - $.025 par value:                                                                                                                                    |   |                                        |       |                           |   |   |   |
| Authorized                15,000,000 shares, issued 3,962,058 shares as at September 30, 2008                and                December 31, 2007                                 |   |                                        | 99,051     |                           |   | 99,051 |   |
| Additional                paid-in capital                                                                                                                                         |   |                                        | 2,293,272  |                           |   | 2,293,272 |   |
| Accumulated                deficit                                                                                                                                                |   |                                        | (5,384,636 | )                              |   | (5,184,478 | ) |
|                                                                                                                                                                              |   |                                        | (2,992,313 | )                              |   | (2,792,155 | ) |
|                                                                                                                                                                              |   |                                        |       |                           |   |   |   |
| Less                treasury stock 1,328 shares as at September 30, 2008 and December 31, 2007                at cost                                                             |   |                                        | (2,328     | )                              |   | (2,328 | ) |
|                                                                                                                                                                              |   |                                        |       |                           |   |   |   |
| Total                stockholders' equity (Deficiency)                                                                                                                            |   |                                        | (2,994,641 | )                              |   | (2,794,483 | ) |
|                                                                                                                                                                              |   |                                        |       |                           |   |   |   |
| Total                liabilities and stockholders' equity (Deficiency)                                                                                                            |   | $                                           | 621,076    |                           | $      | 692,813 |   |

----

**DIAPULSE      CORPORATION OF AMERICA**

**STATEMENTS      OF OPERATIONS**

**(UNAUDITED)**

|                                                             |   | **NINE                MONTHS ENDED** |      |
|------------------------------------------------------------------|--------|--------------------------------------|-----------|
|                                                             |   | **September                30**      |      |
|                                                             |   | **2008**                             |      | **2007** |   |
|                                                             |   |                                 |      |   |   |
| Net                Sales and rentals                             |   | $                                    | 256,644   |   | $ | 570,192 |   |
|                                                             |   |                                 |      |   |   |   |   |
| Cost                of sales and rentals                         |   |                                 | 69,481    |   |   | 86,016 |   |
|                                                             |   |                                 |      |   |   |   |   |
| Gross                Margin                                      |   |                                 | 187,163   |   |   | 484,176 |   |
|                                                             |   |                                 |      |   |   |   |   |
| Operating                Expenses:                               |   |                                 |      |   |   |   |   |
| Selling,                general and administrative               |   |                                 | 233,952   |   |   | 432,836 |   |
| Interest                expense (principally to related parties) |   |                                 | 163,502   |   |   | 44,926 |   |
|                                                             |   |                                 |      |   |   |   |   |
| Total                Operating Expenses                          |   |                                 | 397,454   |   |   | 477,762 |   |
|                                                             |   |                                 |      |   |   |   |   |
| Net                Operating Income (Loss)                       |   |                                 | (210,291  | ) |   | 6,414 |   |
| Interest                and other income                         |   |                                 | 10,233    |   |   | 16,122 |   |
|                                                             |   |                                 |      |   |   |   |   |
| Income                (Loss) before Provision for Income Taxes   |   |                                 | (200,058  | ) |   | 22,536 |   |
| Provision                for Income Taxes                        |   |                                 | (100      | ) |   | 48 |   |
| Net                Income (Loss)                                 |   | $                                    | (200,158) |   | $ | 22,488 |   |
|                                                             |   |                                 |      |   |   |   |   |
| Basic                Earnings (Loss) Per Share                   |   | $                                    | (0.05)    |   | $ | 0.01 |   |
|                                                             |   |                                 |      |   |   |   |   |
| Weighted                Average Number of Common                 |   |                                 |      |   |   |   |   |
| Shares                Outstanding                                |   |                                 | 3,960,730 |   |  | 3,960,730 |   |

----

**DIAPULSE      CORPORATION OF AMERICA**

**STATEMENTS      OF OPERATIONS**

**(UNAUDITED)**

|                                                             |   | **THREE                MONTHS ENDED** |      |
|------------------------------------------------------------------|--------|---------------------------------------|-----------|
|                                                             |   | **September                30**       |      |
|                                                             |   | **2008**                              |      | **2007** |   |
|                                                             |   |                                  |      |   |   |
| Net                Sales and rentals                             |   | $                                     | 110,258   |   | $ | 106,487 |   |
|                                                             |   |                                  |      |   |   |   |   |
| Cost                of sales and rentals                         |   |                                  | 25,190    |   |   | 24,481 |   |
|                                                             |   |                                  |      |   |   |   |   |
| Gross                Margin                                      |   |                                  | 85,068    |   |   | 82,006 |   |
|                                                             |   |                                  |      |   |   |   |   |
| Operating                Expenses:                               |   |                                  |      |   |   |   |   |
| Selling,                general and administrative               |   |                                  | 73,177    |   |   | 115,429 |   |
| Interest                expense (principally to related parties) |   |                                  | 51,980    |   |   | 14,348 |   |
|                                                             |   |                                  |      |   |   |   |   |
| Total                Operating Expenses                          |   |                                  | 125,157   |   |   | 129,777 |   |
|                                                             |   |                                  |      |   |   |   |   |
| Net                Operating Income (Loss)                       |   |                                  | (40,089   | ) |   | (47,771 | ) |
| Interest                and other income                         |   |                                  | 1,426     |   |   | 5,061 |   |
|                                                             |   |                                  |      |   |   |   |   |
| Income                (Loss) before Provision for Income Taxes   |   |                                  | (38,663)  | ) |   | (42,710 | ) |
| Provision                for Income Taxes                        |   |                                  | (898      | ) |   | (531 | ) |
| Net                Income (Loss)                                 |   | $                                     | (39,561   | ) | $ | (42,179 | ) |
|                                                             |   |                                  |      |   |   |   |   |
| Basic                Earnings (Loss) Per Share                   |   | $                                     | (0.01     | ) | $ | (0.01 | ) |
|                                                             |   |                                  |      |   |   |   |   |
| Weighted                Average Number of Common                 |   |                                  |      |   |   |   |   |
| Shares                Outstanding                                |   |                                       | 3,960,730 |   |  | 3,960,730 |  |

----

**STATEMENTS      OF CASH FLOWS**

** **
**(UNAUDITED**
**)**

|                                                                  |   | **NINE                MONTHS ENDED** |     |
|-----------------------------------------------------------------------|--------|--------------------------------------|----------|
|                                                                  |   | **September                30**      |     |
|                                                                  |   | **2008**                             |     | **2007** |   |
| Cash                Flows From Operating Activities:                  |   |                                 |     |   |   |   |   |
| Net                Income (Loss)                                      |   | $                                    | (200,158 | ) | $ | 22,488 |   |
|                                                                  |   |                                 |     |   |   |   |   |
| Adjustments                to reconcile net income to net cash        |   |                                 |     |   |   |   |   |
| Provided                by operating activities:                      |   |                                 |     |   |   |   |   |
| Depreciation                and amortization                          |   |                                 | 1,787    |   |   | 1,755 |   |
| Changes                in operating assets and liabilities:           |   |                                 |     |   |   |   |   |
| Decrease                in accounts receivable                        |   |                                 | (14,976  | ) |   | 51,093 |   |
| Decrease                in inventories                                |   |                                 | 26,094   |   |   | 8,301 |   |
| (Increase)                Decrease in commission advances             |   |                                 | (1,320   | ) |   | 50,342 |   |
| (Increase)                Decrease in other assets                    |   |                                 | 2,059    |   |   | 13,066 |   |
| (Decrease)                in accounts payable and accrued liabilities |   |                                 | (21,271  | ) |   | (38,103 | ) |
| (Decrease)                Increase in income taxes                    |   |                                 | (1,055   | ) |   | (2,400 | ) |
|                                                                  |   |                                 |     |   |   |   |   |
| Total                adjustments                                      |   |                                 | (8,682   | ) |   | 84,054 |   |
|                                                                  |   |                                 |     |   |   |   |   |
| Net                cash provided (used) by operating activities       |   |                                 | (208,840 | ) |   | 106,542 |   |
| Net                cash (used in) inventory activities:               |   |                                 |     |   |   |   |   |
| Capital                expenditures                                   |   |                                 | -        |   |   | (1,901 | ) |
|                                                                  |   |                                 |     |   |   |   |   |
| Financing                activities:                                  |   |                                 |     |   |   |   |   |
| (Decrease)                Increase in amounts due officer             |   |                                 | 150,747  |   |   | (191,197 | ) |
| Increase                in Loans Payable                              |   |                                 | -        |   |   | 92,225 |   |
| Net                cash provided (used in) Financing activities       |   |                                 | 150,747  |   |   | (98,972 | ) |

----

**STATEMENTS      OF CASH FLOWS (CONTINUED)**

**(UNAUDITED**
**)**

|                                           |   | **NINE                MONTHS ENDED** |    |
|------------------------------------------------|--------|--------------------------------------|---------|
|                                           |   | **September                30**      |    |
|                                           |   | 2008                                 |    | 2007 |   |
| Net                Increase (Decrease) in cash |   |                                 |    |   |   |   |   |
| And                cash equivalents            |   |                                 | (58,093 | ) |   | 5,669 |   |
| Cash                and cash equivalents -     |   |                                 |    |   |   |   |   |
| Beginning                of Period             |   |                                 | 172,936 |   |   | 312,027 |   |
| Cash                and cash equivalents -     |   |                                 |    |   |   |   |   |
| End                of Period                   |   | $                                    | 114,843 |   | $ | 317,696 |   |
|                                           |   |                                 |    |   |   |   |   |
| Cash                paid during the years for: |   |                                 |    |   |   |   |   |
| Interest                                       |   |                                 | 247     |   | $ | 9,516 |   |
| Taxes                                          |   |                                 | -       |   |   | 2,179 |   |

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|                                               |   | September                302008 |    | December.                312007 |   |
|----------------------------------------------------|--------|---------------------------------|---------|---------------------------------|--------|
|                                               |   | (unaudited)                     |    | (audited)                       |   |
|                                               |   |                            |    |                            |   |
| Parts,                components and subassemblies |   | $                               | 200,604 |                            | $      | 212,438 |   |
| Finished                goods                      |   |                            | 196,925 |                            |   | 211,185 |   |
| Total                Inventories                   |   | $                               | 397,529 |                            | $      | 423,623 |   |

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**Item      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations**

----

Operating        expenses for the current nine months decreased by $198,884 to $233,952 from        last        year’s comparable nine month period of $432,836 primarily due to a reduction in        sales commissions, salaries and rent expenses resulting from decreased sales        during the period and the Company’s cost-cutting programs implemented during the        nine months period ended September 30, 2008.

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**Item      4. Controls and Procedures**

As      of the      end of the period covered by this Quarterly Report, the Company carried out      an      evaluation, under the supervision and with the participation of the individual      who serves as Chief Executive Officer and Principal Financial Officer, of the      effectiveness of the Company’s disclosure controls and procedures. Based on this      evaluation, the Chief Executive and Principal Financial Officer concluded that      information required to be disclosed is recorded, processed, summarized and      reported within the time periods specified in the SEC’s rules and forms and is      accumulated and communicated to management, including the Chief Executive and      Principal Financial Officer, to allow for timely decisions regarding required      disclosure of information required to be included in the Company’s periodic SEC      reports. The Company’s disclosure controls and procedures are designed to      provide reasonable assurance of achieving their objectives, and the Chief      Executive and Principal Financial Officer has concluded that these disclosure      controls and procedures are effective to a reasonable assurance level of      achieving such objectives. However, the design of any system of controls is      based in part upon certain assumptions about the likelihood of future events,      and there can be no assurance that any design will succeed in achieving its      stated goals under all potential future conditions, regardless of how      remote.

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**PART      II – OTHER INFORMATION**

**Item      1. Legal Proceedings**

**Item      2. Unregistered Sales of Equity Securities and Use of      Proceeds**

**Item      3. Defaults Upon Senior Securities**

**Item      4. Submission of Matters to a Vote of Security Holders**

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**Item      5. Other Information**

**Item      6. Exhibits**

| 3.1    |   | Certificate                of Incorporation of Diapulse Corporation of America, filed October 2,                1957. (1)                                                              |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                        |
| 3.2    |   | Amendment                to Certificate of Incorporation, filed October 16, 1959.                (1)                                                                                   |
|   |   |                                                                                                                                                                                        |
| 3.3    |   | Amendment                to Certificate of Incorporation, filed December 20, 1961.                (1)                                                                                  |
|   |   |                                                                                                                                                                                        |
| 3.4    |   | Amendment                to Certificate of Incorporation, filed June 13, 1990.                (1)                                                                                      |
|   |   |                                                                                                                                                                                        |
| 3.5    |   | Amendment                to Certificate of Incorporation, filed July 12, 1994.                (1)                                                                                      |
|   |   |                                                                                                                                                                                        |
| 4.1    |   | Form                of Stock Certificate of Diapulse Corporation of America.                (1)                                                                                             |
|   |   |                                                                                                                                                                                        |
| 31     |   | Rule 13a-14(a)/15d-14(a)                Certification.                                                                                                                                 |
|   |   |                                                                                                                                                                                        |
| 32     |   | CEO/CFO                Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant                to                Section 906 of the Sarbanes-Oxley Act of                2002. |

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**SIGNATURES**

| DIAPULSE              CORPORATION OF AMERICA |
|----------------------------------------------|
|                                         |   |
|                                         | Registrant |
|                                         |   |
| By                                           | /s/                David M. Ross |
|                                         | David                M. Ross, President |
|                                         |   |
| Date:                November 10, 2008       |

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**EXHIBIT      INDEX**

| 3.1    |   | Certificate                of Incorporation of Diapulse Corporation of America, filed October 2,                1957. (1)                                                              |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                        |
| 3.2    |   | Amendment                to Certificate of Incorporation, filed October 16, 1959.                (1)                                                                                   |
|   |   |                                                                                                                                                                                        |
| 3.3    |   | Amendment                to Certificate of Incorporation, filed December 20, 1961.                (1)                                                                                  |
|   |   |                                                                                                                                                                                        |
| 3.4    |   | Amendment                to Certificate of Incorporation, filed June 13, 1990.                (1)                                                                                      |
|   |   |                                                                                                                                                                                        |
| 3.5    |   | Amendment                to Certificate of Incorporation, filed July 12, 1994.                (1)                                                                                      |
|   |   |                                                                                                                                                                                        |
| 4.1    |   | Form                of Stock Certificate of Diapulse Corporation of America.                (1)                                                                                             |
|   |   |                                                                                                                                                                                        |
| 31     |   | Rule 13a-14(a)/15d-14(a)                Certification.                                                                                                                                 |
|   |   |                                                                                                                                                                                        |
| 32     |   | CEO/CFO                Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant                to                Section 906 of the Sarbanes-Oxley Act of                2002. |

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