UNITED STATES
                  SECURITIES AND EXCHANGE COMMISSION
                        Washington, DC   20549

                              FORM 10-QSB

(Mark One)

XX  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
--- ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2007

    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
---  ACT OF 1934 FOR THE TRANSITION PERIOD FROM _______ TO ______.

    Commission file number        000-27503
                             ____________________


                      DYNASIL CORPORATION OF AMERICA

-------------------------------------------------------------------
  (Exact name of small business issuer as specified in its charter)


          New Jersey                            22-1734088
        --------------             -------------------------------
  (State or other jurisdiction        (IRS Employer Identification No.)
     of incorporation)


               385 Cooper Road, West Berlin, New Jersey, 08091

        ----------------------------------------------------------
                 (Address of principal executive offices)

                             (856) 767-4600
            --------------------------------------------------
            (Registrant's telephone number, including area code)

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)

Yes  XX      No
    ----         ----

The Company had 6,116,526 shares of common stock, par value
$.0005 per share, outstanding as of July 30, 2007.


                                  1
<PAGE>
            DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES
                                INDEX



PART 1.   FINANCIAL INFORMATION                                 PAGE
                                                                ----

  ITEM 1.   FINANCIAL STATEMENTS

            DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES
            -----------------------------------------------

            CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2007
            AND SEPTEMBER 30, 2006                                  3

            CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE
            AND NINE MONTHS ENDED JUNE 30, 2007 AND 2006            4

            CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE
            NINE MONTHS ENDED JUNE 30, 2007 AND 2006                5

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS              6


  ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS                    11

  ITEM 3.   CONTROLS AND PROCEDURES                                 15


PART II.  OTHER INFORMATION                                         15

  ITEM 1.   LEGAL PROCEEDINGS                                       15

  ITEM 2.   CHANGES IN SECURITIES                                   15

  ITEM 3.   DEFAULTS ON SENIOR SECURITIES                           15

  ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS     15

  ITEM 5.   OTHER INFORMATION                                       15

  ITEM 6    EXHIBITS AND REPORTS ON FORM 8-K                        16

      SIGNATURES                                                    16

                                     2
<PAGE>
DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

                                     ASSETS

<TABLE>
<S>                                       <C>            <C>
                                          June 30         September 30
                                          2007            2006
                                          (Unaudited)
                                          ----------      ----------

Current assets
   Cash and cash equivalents             $ 290,556         $ 352,139
   Accounts receivable, net of
    allowance for doubtful accounts of
    $19,993 and $12,530 for June 30,
    2007 and September 30, 2006,
    respectively                         1,272,152         1,086,394
   Inventories                           1,592,892         1,131,648
   Deferred tax asset                       87,400            61,500
   Prepaid expenses and
    other current assets                   215,772           128,957
                                        ----------        ----------
        Total current assets             3,458,772         2,760,638

   Property, Plant and Equipment, net    2,456,530           626,790

   Other Assets                             83,613            78,812
                                        ----------        ----------
        Total Assets                    $5,998,915        $3,466,240
                                        ==========        ==========

                 LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
   Note payable to bank -
     Line of credit                       $368,290          $190,000
   Current portion - long term debt         99,634            72,482
   Accounts payable                        510,117           390,110
   Accrued expenses                        569,617           368,977
                                        ----------        ----------
        Total current liabilities        1,547,658         1,021,569

Long-term Debt, net                      1,569,127           593,889


Stockholders' Equity
   Common Stock, $.0005 par value,
    25,000,000 shares authorized,
    6,924,878 and 4,698,453 shares
    issued, 6,114,718 and 3,888,293
    shares outstanding                      3,463             2,350

   Preferred Stock, $.001 par
    value, 10,000,000  Shares
    authorized, -0- and 700,000
    Series A shares and 710,000
    and -0- shares Series B shares
    issued and outstanding for
    June 30, 2007 and September 30, 2006
    respectively, 10% cumulative,
    convertible                                710               700
   Additional paid in capital            2,980,931         2,100,098
   Retained earnings                       883,368           733,976
                                        ----------        ----------
                                         3,868,472         2,837,124

   Less 810,160 shares in treasury -
    at cost                               (986,342)         (986,342)
                                        ----------        ----------
        Total stockholders' equity       2,882,130         1,850,782
                                        ----------        ----------
        Total Liabilities and
         Stockholders' Equity           $5,998,915        $3,466,240
                                        ==========        ==========
</TABLE>
                                       3
<PAGE>

DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)


<TABLE>
<S>                                   <C>                        <C>
                                          Three Months Ended       Nine Months Ended
                                               June 30                   June 30
                                          2007        2006          2007          2006
                                      ----------    ---------    ----------     ----------
Sales                                 $2,584,519   $1,833,869    $8,124,031     $5,047,405
Cost of Sales                          1,776,432    1,164,997     5,785,706      3,307,189
                                      ----------    ---------    ----------     ----------
                                         808,087      668,872     2,338,325      1,740,216
Selling, general and administrative      680,900      501,159     2,021,685      1,414,458
                                      ----------    ---------    ----------     ----------
Income from Operations                   127,187      167,713       316,640        325,758
Interest expense - net                    19,110       21,638        52,780         60,882
                                      ----------    ---------    ----------     ----------
Income before Income Taxes               108,077      146,075       263,860        264,876

Income Tax                                 9,973        6,484        30,629         17,980
                                      ----------    ---------    ----------     ----------
Net income                             $  98,104    $ 139,591    $  233,231     $  246,896
                                      ==========    =========    ==========     ==========

Net income per share
  Basic                                    $0.02        $0.03         $0.03          $0.05
  Diluted                                  $0.01        $0.02         $0.03          $0.04

Weighted average shares outstanding    6,114,679    3,848,141     5,104,271      3,821,154

</TABLE>

                                     4
<PAGE>
DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)


<TABLE>
<S>                                                          <C>               <C>
                                                                     Nine Months Ended
                                                                         June 30
                                                                  2007              2006
                                                            ----------       -----------
Cash flows from operating activities:
    Net income                                               $ 233,231        $  246,896
    Adjustments to reconcile net income
     to net cash provided by (used in)operating activities:
       Depreciation                                            253,656           153,000
       Amortization expense                                     12,222            19,640
       Gain on disposal of assets                                 -0-             (2,000)
       Stock based compensation                                 11,366              -0-
       Allowance for doubtful accounts                           7,463            13,632
 (Increase) decrease in:
         Accounts receivable                                    98,366           (24,049)
         Inventories                                          (386,033)         (298,317)
         Prepaid expenses and other current asset              (56,670)            3,383
    Increase (decrease) in:
         Accounts payable                                     (140,198)          101,267
         Accrued expenses                                      (18,909)            8,442
                                                            ----------       -----------
Net cash provided by operating activities                       14,494           221,894
                                                            ----------       -----------
Cash flows from investing activities:
     Acquisition of property, plant and equipment             (293,773)          (71,883)
Proceeds from sale of assets                                     -0-               2,000
Cash paid for acquisition of EMF                              (674,890)             -0-
                                                            ----------       -----------
Net cash used in investing activities                         (968,663)          (69,883)
                                                            ----------       -----------
Cash flows from financing activities:
Issuance of common stock                                       170,590            41,400
Issuance of preferred stock                                    700,000              -0-
Payments on long-term debt                                     (72,361)          (94,847)
Proceeds from refinanced long-term debt                        174,816               457
Payments on short-term debt                                   (227,277)          (57,445)
Proceeds from short-term debt                                  212,910              -0-
Preferred stock dividends paid                                 (66,092)          (52,500)
                                                            ----------       -----------
Net cash provided by (used in) financing activities            892,586          (162,935)
                                                            ----------       -----------
Net decrease  in cash                                          (61,583)          (10,924)

Cash - beginning of period                                     352,139           308,210
                                                            ----------       -----------
Cash - end of period                                         $ 290,556         $ 297,286
                                                            ==========       ===========
Supplemental Disclosure of cash flow information:
Non-cash investing and financing activities:
   Acquisition of EMF Corporation
           Fair market value of current assets acquired      $ 468,300
           Property, plant and equipment                     1,789,621
       Fair market value of liabilities assumed             (1,063,031)
       Total cost of acquisition                             1,194,890
       Debt incurred to pay seller                            (520,000)
                                                             ---------
          Net Cash paid for EMF Corporation                   $674,890
                                                             ==========
</TABLE>
                                                 5
<PAGE>
DYNASIL CORPORATION OF AMERICA AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)(Continued)

                                                          2007     2006

   Reconciliation of debt refinancing activities:
     Proceeds of new loans for New Jersey operations  $   -0-   $449,346
           Repayment of old New Jersey Term Loan          -0-    448,889
                                                      --------  --------
         Net Proceeds of refinancing activity         $   -0-   $    457


         Preferred stock dividends declared           $83,842    $52,500
         Less dividends payable at June 30            (17,750)     -0-
                                                      --------  --------
         Net cash paid for dividends                  $66,092    $52,500


To  partially  fund  the acquisition of Evaporated  Metal  Films
Corporation  ("EMF"),  the  Company  issued  710,000  shares  of
preferred  stock,  valued  at $1.00 per  share,  incurred  stock
issuance costs of $10,000 and received net proceeds of $700,000.

On  October  2, 2006, concurrently with the acquisition  of  EMF
Corporation,   EMF   borrowed  $1,050,000,  which   amount   was
guaranteed  by the Company.  The proceeds were used as  follows:
1)  repayment of assumed liabilities of $338,161 at closing,  2)
payment  of  the balance due the seller of $520,000 directly  by
the  bank at closing, 3) payment of transaction costs of $17,023
at  closing, and 4) the remaining balance of $174,816  was  used
for working capital purposes.

DYNASIL CORPORATION OF AMERICA
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

Note 1 - Basis of Presentation

     The consolidated balance sheet as of September 30, 2006 was
audited and appears in the Form 10-KSB previously filed by the
Company.  The consolidated balance sheet as of June 30, 2007 and
the consolidated statements of operations and cash flows for the
three and nine months ended June 30, 2007 and 2006, and the
related information contained in these notes have been prepared
by management without audit.  In the opinion of management, all
adjustments (which include only normal recurring items)
necessary to present fairly the financial position, results of
operations and cash flows in conformity with generally accepted
accounting principles as of June 30, 2007 and for all periods
presented have been made.  Interim operating results are not
necessarily indicative of operating results for a full year.

     On October 2, 2006, Dynasil acquired 100% of the stock of
Evaporated Metal Films Corporation ("EMF") of Ithaca, NY.  EMF
provides optical thin-film coatings for a broad range of
application markets including display systems, optical
instruments, satellite communications and lighting.  EMF
provides products and services to optics markets which are
related to those served by Dynasil. Dynasil's financial
statements at June 30, 2007, include the EMF results of
operations since October 2, 2006.

     Certain information and note disclosures normally included
in the Company's annual financial statements prepared in
accordance with generally accepted accounting principles have
been condensed or omitted.  It is suggested that these condensed
consolidated financial statements be read in conjunction with
the financial statements and notes thereto included in the
Company's September 30, 2006 Annual Report on Form 10-KSB
previously filed by the Company with the Securities and Exchange
Commission.

                                    6
<PAGE>


DYNASIL CORPORATION OF AMERICA
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

Note 2 - Business Acquisition

      On  October 2, 2006, the Company completed its acquisition
of  all of the outstanding capital stock of EMF in a transaction
accounted for as a purchase.  Total cost of the acquisition  was
$1,194,890  of  which $1.1 million was paid to the  seller,  and
$94,890  represented  acquisition  costs  incurred.   From   the
proceeds  of the issuance of 710,000 shares of Preferred  Stock,
Dynasil  paid  $580,000  in cash to the seller,  incurred  stock
issuance costs of $10,000 and incurred acquisition related costs
of  approximately  $94,890.  Also  on  October  2,  2006,  in  a
concurrent  bank transaction, EMF borrowed $1,050,000  of  which
$338,161 was used to retire assumed EMF debt, $520,000 was  paid
directly  to the seller at settlement, $17,023 was used  to  pay
transaction costs and the remaining funds of $174,816 were  used
for  working  capital  purposes.  The total  purchase  price  of
approximately $1,194,890 has been allocated to the tangible  and
identifiable intangible assets acquired and liabilities  assumed
on  the  basis of their estimated fair values.   The results  of
operations  of  EMF  have  been  included  in  the  consolidated
financial statements from October 2, 2006, the effective date of
acquisition.   The  allocation of purchase price  is  summarized
below:

Purchase price:

     Total consideration to seller           $1,100,000
     Acquisition costs incurred              $   94,890
                                             ----------
     Total purchase price                    $1,194,890

Purchase price allocation:

     Cash and cash equivalents               $   45,457
     Accounts receivable                        282,575
     Inventories                                 75,211
     Prepaid expenses and other
      current assets                             65,057
     Property and equipment                   1,789,621
     Current liabilities assumed             (  443,158)
     Other liabilities assumed               (   74,227)
     Debt assumed                            (  545,646)
                                             ----------
Net fair value of assets acquired             $1,194,890

The following is the proforma financial information of the
Company for the nine months ended June 30, 2006 assuming the
transaction had been consummated at the beginning of the fiscal
year ended September 30, 2006:

                                        For the nine
                                         Months ended
                                        June 30, 2006
                                         (Unaudited)

Statement of Operations:
Revenues                                 $7,247,511
Cost of Sales                             4,885,913
Gross Profit                              2,361,598

Operating Expenses                        1,957,426
Income from Operations                      404,172
Interest Expense
81,525
Income before taxes                         322,647
Provision for income taxes                   21,443

Net Income                                 $301,204
                                   7
<PAGE>
DYNASIL CORPORATION OF AMERICA
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

Earnings per Share:
  Basic                                 $      0.05
  Diluted                               $      0.03

Note 3 - Debt

On October 2, 2006, in conjunction with the EMF acquisition, EMF
entered into Mortgage Note and Line of Credit Note Agreements
with Tompkins Trust Company ("TTC") which were guaranteed by
Dynasil.  The guaranteed loans include (a) a $1,050,000
principal amount commercial mortgage (the "mortgage") and (b) a
$215,000 principal amount line of credit facility (the "line of
credit"). Proceeds of the mortgage were used to repay certain
EMF debts, to pay for part of the acquisition of EMF and for
working capital purposes. Proceeds of the line of credit were
used for general corporate purposes. The applicable borrowing
documents were entered into at arms-length between EMF and
Dynasil, on the one hand, and TTC, on the other hand, on
commercial lending terms and conditions, including acceleration
rights, events of default, TTC's rights and remedies and similar
provisions that Dynasil believes are customary for commercial
loans of this sort. In connection with the loan transactions,
EMF and Dynasil executed and delivered to TTC customary forms of
notes, mortgage, security agreement, assignment of leases and
rents, and similar documents.  The mortgage provides for
repayment over a 20 year period at a fixed annual interest rate
of 7.80% for the first 5 years, reset to a fixed annual interest
rate of 2.80 percentage points over the Federal Home Loan Bank
of New York Advance Rate for five-year maturities at five year
intervals.  The term loan is secured by a first mortgage on
EMF's real estate, equipment, and fixtures, as well as Dynasil's
guarantee.  The line of credit has a term running until December
22, 2010 and carries an annual interest rate of one-half percent
over The Wall Street Journal Prime Rate of interest, which is
adjusted monthly. It is secured by EMF's real estate, equipment
and fixtures, as well as Dynasil's guarantee.

Note 4 - Convertible Preferred Stock

On October 2, 2006, the Company sold 710,000 shares of a Series
B 10% Cumulative Convertible Preferred Stock in a private
placement. The stock was sold at a price of $1.00 per share.
Total expenses for the stock placement were $10,000.  No
underwriting discounts or commissions were paid in connection
with the sale.  Each share of preferred stock carries a 10% per
annum dividend and is convertible to 1.33 shares of common stock
at any time by the holders and is callable after two years by
Dynasil at a redemption price of $1.00 per share. Proceeds of
the preferred stock sale were primarily used to acquire the
capital stock of EMF and for related acquisition costs.

On March 9, 2007, the Company issued an aggregate of 1,555,540
shares of its
Common Stock, $.0005 par value per share, as a result of the
exercise of the conversion rights by holders of 700,000 shares
of Dynasil's Series A 10% Cumulative Convertible Preferred Stock
(the "Series A Preferred Shares"). Dynasil had previously called
all of the Series A Preferred Shares for redemption on March 9,
2007. All of the shares of the Series A Preferred Shares that
were called for redemption were converted to shares of common
stock.

Note 5 - Inventories

     Inventories are stated at the lower of average cost or
market.  Cost is determined using the first-in, first-out (FIFO)
method.  Inventories consist primarily of raw materials, work-in-
process and finished goods.  The Company evaluates inventory
levels and expected usage on a periodic basis and records
adjustments for impairments as required.
                                    8
<PAGE>
DYNASIL CORPORATION OF AMERICA
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

Inventories consisted of the following:

                                  June 30, 2007     September 30, 2006
                                 -----------------  ------------------
        Raw Materials                 $944,358          $600,451
        Work-in-Process                254,886           259,425
        Finished Goods                 393,648           271,772
                                       -------           -------
                                    $1,592,892        $1,131,648
                                       =======           =======
Note 6 - Net Income Per Share

     Basic net income per share is computed using the weighted
average number of common shares outstanding. The dilutive
effects of potential common shares outstanding are included in
diluted net earnings per share.

Note 7 - Stock Based Compensation

     Prior to October 1, 2006, the Company accounted for stock
options issued under the Plan under the recognition and
measurements provisions of APB Opinion No. 25, Accounting for
Stock Issued to Employees, and related interpretations, as
permitted by FASB Statement No. 123, Accounting FOR stock Based
Compensation ("SFAS No. 123").

     Effective October 1, 2006, the Company adopted the fair
value recognition provisions of FASB Statement No. 123 (revised
2004), "Share-Based Payment", ("SFAS 123(R)") which requires the
measurement and recognition of compensation expense for all
stock-based awards made to employees and directors, including
employee stock options, based on estimated fair values.  We had
previously applied Accounting Principles Board Opinion No. 25,
"Accounting for Stock Issued to Employees," ("APB 25") and
related Interpretations and provided the required pro forma
disclosures of State of Financial Accounting Standards No. 123,
"Accounting for Stock Based Compensation" ("SFAS 123") which was
superceded by SFAS 123(R).  The Company has also applied the
provisions of Staff Accounting Bulletin No. 107 ("SAB 107") in
the adoption of SFAS 123(R).

     We elected to adopt the modified prospective application
transition method as provided by SFAS 123(R).  In accordance
with the modified prospective transition method, consolidated
financial statements for prior periods have not been restated to
reflect, and do not include, the impact of SFAS 123(R).  Under
that transition method, compensation cost recognized in the nine
months ended June 30, 2007 includes: (a) compensation cost for
all share-based payments granted prior to, but not yet vested as
of June 30, 2007, based on the grant date fair value estimated
in accordance with the original provisions of Statement 123, and
(b) compensation cost for all share-based payments granted
subsequent to October 1, 2005, based on the grant-dated fair
value estimated in accordance with the provisions of Statement
123(R).

     The fair value of stock options granted was estimated at
the date of grant using the Black-Scholes options pricing model.
The Company used the following assumptions for determining the
fair value of options granted under Black-Scholes option pricing
model:
                                                  June 30
                                                 2007 2006
          Expected term in years             3 years   5 years
          Risk-free interest rate             4.82%     4.60%
          Expected volatility                20.42%    16.00%
          Expected dividend yield             0.00%     0.00%

                                    9
<PAGE>
DYNASIL CORPORATION OF AMERICA
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

     The expected volatility was determined with reference to
the historical volatility of the Company's stock.  The Company
uses historical data to estimate option exercise and employee
termination within the valuation model. The expected term of
options granted represents the period of time that options
granted are expected to be outstanding.  The risk-free interest
rate for periods within the contractual life of the option is
based on the U.S. Treasury rate in effect at the time of grant.

     During the nine months ended June 30, 2007, 100,000 stock
options were granted at prices ranging from $1.66 to $2.00 per
share and 80,000 options were exercised.  20,000 of the granted
stock options can not be exercised until January 2, 2008 and
therefore the stock-based compensation expense will be
recognized at that time if they become exercisable.  The 80,000
options exercised had an exercise price of $0.40 per share with
$32,000 paid in cash.

     For nine months ended June 30, 2007, total stock-based
compensation charged to operations for option-based arrangements
amounted to $11,366.  At June 30, 2007, there was approximately
$9,620 of total unrecognized compensation expense related to non-
exercisable option-based compensation arrangements under the
Plan.

     During the nine months ended June 30, 2006, 130,000 stock
options were granted at prices ranging from $0.85 to $1.50 per
share and 80,000 options were exercised.  The 80,000 options
exercised had an exercise price of $0.40 per share with $23,857
paid in cash and $8,143 relating to Mr. Dunham's 2005 fiscal
year bonus.

       The company cancelled -0- and 90,000 options during the
nine months ended June 30, 2007 and 2006, respectively.
Compensation expense relating to non-employee stock options
granted during the nine months ended June 30, 2007 and 2006 were
$-0-.

     The pro forma disclosures of net income and net income per
share for the nine months ended June 30, 2006, as permitted by
SFAS 123(R), are presented below:

                                                 Nine months ended
                                                    June 30, 2006
                                                     -----------
     Net income, as reported                           $246,896

     Add: Stock-based employee
     compensation expense included
     in reported net income                                -0-

     Less: Total stock-based employee
     compensation expense determined
     under fair value based method
     for all options                                    (4,636)
                                                     -----------
     Pro forma net profit (loss)                      $242,260
                                                     ===========

     Actual net profit (loss)
     per common share                                 $   0.05

     Pro forma net profit (loss)
     per common share                                 $   0.05


                                    10
<PAGE>

DYNASIL CORPORATION OF AMERICA


ITEM 2.     MANAGEMENT DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION

Overview

     This   is  the  third  quarter  of  results  after  Dynasil
Corporation  of  America  ("Dynasil",  the  "Company"  or  "we")
acquired 100% of the stock of Evaporated Metal Films Corporation
("EMF")  of Ithaca, NY on October 2, 2006.  EMF provides optical
thin-film  coatings  for  a broad range of  application  markets
including   display  systems,  optical  instruments,   satellite
communications and lighting.  EMF provides products and services
to optics markets which are related to those served by Dynasil's
historical operations. The Dynasil financial statements  include
the EMF results from October 2, 2006 through June 30, 2007.  The
results  for  time periods previous to October 2,  2006  do  not
include  EMF except for pro forma financial information provided
for the nine months ended June 30, 2006.

     Revenues  for the third quarter of fiscal year  2007  which
ended  June 30, 2007 were $2,584,519, an increase of 40.9%  over
revenues  of  $1,833,869  for the quarter  ended  June  30,2006.
Revenues   for  the  nine  months  ended  June  30,  2007   were
$8,124,031, an increase of 60.9% over revenues of $5,047,405 for
the  nine   months  ended June 30, 2006.   Net  income  for  the
quarter  ended  June 30, 2007 was $98,104 or  $0.02  per  share,
compared with a net income of $139,591, or $0.03 per share,  for
the quarter ended June 30, 2006.  Net income for the nine months
ended June 30, was $233,231 or $0.03 per share, compared with  a
net  income  of $246,896 or $0.05 per share for the nine  months
ended  June  30,  2006.    Excluding  the  impact  of  the   EMF
acquisition  for the three months ended June 30, 2007,  revenues
for  our historical businesses were up 5% and net income was  up
83%,  from  $139,351 to $254,944, compared to the  three  months
ended June 30, 2006. Excluding the impact of the EMF acquisition
and  $11,366 of stock option expense, for the nine months  ended
June  30, 2007, revenues for our historical businesses  were  up
21%  and  net  income  was up 153%, from $246,896  to  $625,442,
compared to the nine months ended June 30, 2006.  Strong revenue
growth combined with continued process improvements drove  those
significant  gains. Transitional and process  improvement  costs
resulted  in  a loss at EMF for its third quarter with  Dynasil.
The   EMF  loss  offset  the  outstanding  improvements  in  our
historical businesses.  Management is clearly focused on the EMF
improvements required to show continued improvement in 2007  and
to  deliver  profitable  results for fiscal  year  2008.  During
quarter  3,  we significantly improved manufacturing yields  and
reduced  production  downtime  as  we  develop  the  disciplined
processes   required  for  EMF  to  consistently  execute   with
excellent quality, service, and cost performance.  We  hired  an
EMF   President   with  a  strong  operations  and   engineering
background who started on July 11, 2007.

Results of Operations

      Revenues  for  the three months ended June 30,  2007  were
$2,584,519, an increase of 40.9% over revenues of $1,833,869 for
the quarter ended June 30, 2006.  The revenue increase came from
5%  organic growth in our historical businesses as well  as  the
addition  of  EMF. Revenues for the nine months ended  June  30,
2007  were  $8,124,031, an increase of 60.9%  over  revenues  of
$5,047,405 for the nine months ended June 30, 2006.

      Cost of sales for the three months ended June 30, 2007 was
$1,776,432  or  68.7% of sales, an increase  of  5.2  percentage
points  from the three months ended June 30, 2006 of $1,164,997,
or 63.5% of sales. Cost of sales for the nine  months ended June
30,  2007 was $5,785,706 or 71.2% of sales, an increase  of  5.7
percentage points from the nine months ended June 30,  2006   of
$3,307,189,  or  65.5%  of sales.   The  higher  cost  of  sales
resulted primarily from EMF's costs.

                                    11
<PAGE>



DYNASIL CORPORATION OF AMERICA

The  cost  of  sales  for  our  historical  businesses  actually
improved by 1.6 percent. The Company continues to implement cost
reductions such as manufacturing yield improvements.

      Gross profit for the three months ended June 30, 2007  was
$808,087,  or 31.2% of sales, an increase of $139,215  over  the
three months ended June 30, 2006 of $668,872, or 36.5% of sales.
Gross  profit  for  the  nine months ended  June  30,  2007  was
$2,338,325, or 28.7% of sales, an increase of $598,109 over  the
nine months ended June 30, 2006 of $1,740,216 or 34.5% of sales.
Operational improvements at EMF are key to increasing our  gross
profit in the future.

      Selling, general and administrative ("SG&A") expenses  for
the  three months ended June 30, 2007 were $680,900 or 26.3%  of
sales, a decrease of 1.0 percentage points from the three months
ended June 30, 2006 of $501,159 or 27.3% of sales. SG&A expenses
for the nine months ended June 30, 2007 were $2,021,685 or 24.8%
of  sales,  a  decrease of 3.2 percentage points from  the  nine
months  ended  June 30, 2006 of $1,414,458 or  28.0%  of  sales.
The  changes in SG&A expenses and percentages resulted primarily
from the impact of the acquisition of EMF.

      Net  interest expense for the three months ended June  30,
2007 was $19,110, compared to $21,638 for the three months ended
June  30,  2006. Net interest expense for the nine months  ended
June  30,  2007  was $52,780 compared to $60,882  for  the  nine
months ended June 30, 2006.  Additional EMF interest expense  of
$61,434 that is allocated to cost of goods sold and SG&A expense
resulting  in  total net interest expense for  the  nine  months
ended  June  30,  2007, of $114,214, which  is  an  increase  of
$53,332  for  the  nine month period. The increase  in  combined
interest expense is primarily related to the additional interest
payments  resulting from the indebtedness incurred in connection
with the EMF acquisition.

      Net  income for the three months ended June 30,  2007  was
$98,104  or  $0.02 in basic earnings per share,  which  is  down
$41,487 from net income for the three months ended June 30, 2006
of  $139,591 or $.03 in basic profit per share.  Net income  for
the  nine  months ended June 30, 2007 was $233,231 or $0.03  per
share, compared with a net income of $246,896 or $0.05 per share
for  the  nine  months ended June 30, 2006. Strong gross  margin
results  drove  an  83% net income increase for  our  historical
businesses in the third quarter. Losses at EMF more than  offset
these  improvements and consequently, we have a strong focus  at
EMF improving our processes and delivering profitability.

     The Company had a $9,973 provision for Massachusetts income
taxes for the quarter ended June 30, 2007 and a $6,484 provision
for  the  quarter ended June 30, 2006. The Company had a $30,109
provision  for  Massachusetts income taxes for the  nine  months
ended  June 30, 2007 and a $17,980 provision for the nine months
ended June 30, 2006.  As of September 30, 2006, the Company  had
approximately $900,000 of net operating loss carry  forwards  to
offset  future  income  for  federal tax  purposes  expiring  in
various  years  through  2021.  In  addition,  the  Company  had
approximately  $550,000 of net operating loss  carryforwards  to
offset  certain  future New Jersey taxable income,  expiring  in
various years through 2013.

Liquidity and Capital Resources

      Cash  decreased by $61,583 for the nine months ended  June
30,  2007.  The  primary  sources of cash  were  net  income  of
$233,231, depreciation and amortization expenses that aggregated
$265,878,  net  borrowings of $88,088, the  issuance  of  common
stock  of  $170,590 and issuance of preferred stock of $700,000.
The primary uses of cash were acquisition of property, plant and

                                    12
<PAGE>
DYNASIL CORPORATION OF AMERICA

equipment  of  $293,733,  an  inventory  increase  of  $386,033,
reductions in accounts payable and accrued expenses of $159,107,
dividend  payments  of  $66,092  on  Preferred  Stock  and   the
acquisition of EMF of $674,890.  The increase in inventory was a
result  of  purchasing  fused  silica  raw  material  that   was
previously  provided  on  a consignment  basis  by  our  primary
supplier. The reduction in accounts payable and accrued  expense
came  from the timing of accounts payable expenses as well as  a
reduction in accrued expenses and accounts payable at EMF.

      The  Company  believes  that its  current  cash  and  cash
equivalent  balances,  along with  the  net  cash  generated  by
operations  and  credit  lines,  are  sufficient  to  meet   its
anticipated cash needs for working capital for at least the next
12  months.  There are currently no plans for any major  capital
expenditures in the next six to nine months. Any major  business
expansions  or acquisitions likely will require the  Company  to
seek additional debt and/or equity financing.

Critical Accounting Policies and Estimates
      There  have  been  no  material changes  in  our  critical
accounting  policies  or  critical  accounting  estimates  since
September 30, 2006.  Except for the adoption of SFAS 123(R),  we
have  not adopted an accounting policy that has or will  have  a
material  impact on our consolidated financial statements.   For
further  discussion of our accounting policies  see  Footnote  1
"Summary  of  Significant Accounting Policies" in the  Notes  to
Consolidated Financial Statements in our Annual Report  on  Form
10-KSB for the fiscal year ended September 30, 2006.
      The  accounting policies that reflect our more significant
estimates,  judgments and assumptions and which we  believe  are
the  most  critical to aid in fully understanding and evaluating
our reported financial results include the following:
Revenue Recognition
      Revenue  from sales of products is recognized at the  time
title and the risks and rewards of ownership pass. This is  when
the  products are shipped per customers' instructions, the sales
price  is fixed and determinable, and collections are reasonably
assured.
Valuation of Long-Lived Assets
      We assess the recoverability of long-lived assets whenever
we  determine  that events or changes in circumstances  indicate
that   their  carrying  amount  may  not  be  recoverable.   Our
assessment  is primarily based upon our estimate of future  cash
flows  associated  with these assets. These  valuations  contain
certain  assumptions  concerning estimated future  revenues  and
future  expenses. We have determined that there is no indication
of  impairment  of  any  of  our assets.   However,  should  our
operating  results deteriorate, we may determine that a  portion
of our long-lived assets is impaired. Such a determination could
result  in non-cash charges to income that could materially  and
adversely affect the Company's financial position or results  of
operations for that period.
Estimating Allowances for Doubtful Accounts Receivable
      We perform ongoing credit evaluations of our customers and
adjust  credit  limits  based  upon  payment  history  and   the
customer's  current  credit worthiness,  as  determined  by  our
review  of  their  current credit information.  We  continuously
monitor collections and payments from our customers and maintain
a   provision  for  estimated  credit  losses  based  upon   our
historical  experience  and  any  specific  customer  collection
issues  that  we have identified. While such credit losses  have
historically  been  minimal, within  our  expectations  and  the
provisions

                                    13
<PAGE>

DYNASIL CORPORATION OF AMERICA

established,  we  cannot  guarantee that  we  will  continue  to
experience the same credit loss rates that we have in the  past.
A  significant change in the liquidity or financial position  of
any  of  our significant customers could have a material adverse
effect on the collectibility of our accounts receivable and  our
future operating results.
Valuation of Deferred Tax Assets
      We  regularly evaluate our ability to recover the reported
amount of our deferred income taxes considering several factors,
including  our  estimate  of  the  likelihood  of  the   Company
generating sufficient taxable income in future years during  the
period  over  which temporary differences reverse.  The  Company
believes that some of these carryforwards will be realized,  and
has adjusted the valuation allowance accordingly as outlined  in
the  Company's Annual Report on Form 10-KSB for the fiscal  year
ended September 30, 2006.

Stock-Based Compensation

       Effective  October  1,  2006,  we  adopted  SFAS  123(R),
"Accounting  for  Stock  Based  Compensation."  As   a   result,
compensation costs are now recognized for stock options  granted
to  employees  and directors.  Options and warrants  granted  to
employees  and non-employees are recorded as an expense  at  the
date  of  grant based on the then estimated fair  value  of  the
security in question, determined using the Black Scholes  option
pricing model.

Recent Accounting Pronouncements

     In February 2007, the FASB issued SFAS No. 159, "The Fair
Value Option for Financial Assets and Financial Liabilities -
Including an amendment of FASB Statement No. 115" (SFAS 159).
SFAS No. 159 permits entities to choose to measure eligible
items at fair value at specified election dates and report
unrealized gains and losses on items for which the fair value
option has been elected in earnings at each subsequent reporting
date.  SFAS No. 159 also establishes presentation and disclosure
requirements designed to facilitate comparisons between entities
that choose different measurement attributes for similar types
of assets and liabilities.  SFAS No. 159 is effective for fiscal
years beginning after November 15, 2007.  We are currently
evaluating the impact of provisions of SFAS 159 on our results
of operations and financial position.

Forward-Looking Statements

      The  statements contained in this Quarterly Report on Form
10-QSB which
are not historical facts, including, but not limited to, certain
statements  found  under  the captions "Overview",  "Results  of
Operations"  and  "Liquidity and Capital Resources"  above,  are
forward-looking statements that involve a number  of  risks  and
uncertainties. The actual results of the future events described
in  such forward-looking statements could differ materially from
those  stated  in  such  forward-looking statements.  Among  the
factors that could cause actual results to differ materially are
the  risks and uncertainties discussed in this Quarterly  Report
on  Form 10-QSB, including, without limitation, the portions  of
such  reports  under  the  captions referenced  above,  and  the
uncertainties set forth from time to time described in this  and
the  Company's  other filings with the Securities  and  Exchange
Commission,  and  other  public  statements.   Such  risks   and
uncertainties include, without limitation, seasonality, interest
in  the Company's products, customer acceptance of new products,
general   economic   conditions,  market   trends,   costs   and
availability   of  raw  materials  and  management   information
systems, competition, litigation, need for additional

                                    14
<PAGE>

DYNASIL CORPORATION OF AMERICA

financing,  the  effect  of governmental  regulation  and  other
matters.  The  Company disclaims any intention or obligation  to
update  any forward-looking statements, whether as a  result  of
new information, future events or otherwise.

ITEM 3    CONTROLS AND PROCEDURES

      We maintain disclosure controls and procedures designed to
ensure  that information required to be disclosed in our filings
under   the   Securities  Exchange  Act  of  1934  is  recorded,
processed,  summarized  and reported  within  the  time  periods
specified in the Securities and Exchange Commission's rules  and
forms.   As  required by Rule 13a-15(e) under the Exchange  Act,
our  Chief  Executive Officer and Chief Financial  Officer  have
evaluated our disclosure controls and procedures as of  the  end
of  the  period  covered by the report and have determined  that
such disclosure controls and procedures are effective.
      There  has  been  no change in our internal  control  over
financial  reporting  in connection with  this  evaluation  that
occurred   during  our  last  fiscal  quarter  that   materially
affected,  or it is reasonably likely to materially affect,  our
internal control over financial reporting.

PART II

OTHER INFORMATION
------------------

ITEM 1    LEGAL PROCEEDINGS

     NONE

ITEM 2    CHANGES IN SECURITIES

     NONE

ITEM 3    DEFAULTS ON SENIOR SECURITIES

     NONE

ITEM 4    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     NONE

ITEM 5    OTHER INFORMATION

The  information presented in Items 1 and 2 of Part  I  of  this
Report is incorporated herein by reference. On August 14,  2007,
the  Company  issued  a press release announcing  its  financial
results  for its third quarter ending June 30, 2007.  A copy  of
this  press release is attached as Exhibit 99 to this Report  on
Form  10-QSB.  This information is being furnished  pursuant  to
Item  5 of Part II of Form 10-QSB and shall not be deemed to  be
"filed"  for  the  purposes  of Section  18  of  the  Securities
Exchange  Act  of  1934,  as amended (the  "Exchange  Act"),  or
otherwise subject to the liabilities of that Section, nor  shall
it  be deemed incorporated by reference in any filing under  the
Securities Act of 1933, as amended, or the Exchange Act,  except
as shall be expressly set forth by specific reference in such  a
filing.




                                    15
<PAGE>







DYNASIL CORPORATION OF AMERICA



ITEM 6    EXHIBITS AND REPORTS ON FORM 8-K


    (a)  Exhibits and index of Exhibits


     31.1(a)  and  (b)  Rule 13a-14(a)/15d-14(a)  Certifications
     pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

     32.1 Section 1350 Certification pursuant to Section 906  of
     the Sarbanes-Oxley Act of 2002 (furnished but not filed for
     purposes of the Securities Exchange Act of 1934)

     99.1  Press  release,  dated August  14,  2007,  issued  by
     Dynasil  Corporation  of America announcing  its  financial
     results for the third quarter ending June 30, 2007.

     10.1 Offer letter to Marcella Backer as EMF President effective
          July 10, 2007.

     10.2  Amendment to Margaret Shay employment agreement dated
           June 15, 2007.



     (b) Reports on Form 8-K

          NONE



SIGNATURES

In  accordance  with the requirements of the Exchange  Act,  the
registrant caused this report to be signed on its behalf by  the
undersigned, thereunto duly authorized.


DYNASIL CORPORATION OF AMERICA


BY:       /s/ Craig T. Dunham                     DATED: August 14, 2007
         ---------------------------------               --------------------
          Craig T. Dunham,
          President and CEO


          /s/ Laura Lunardo                       DATED: August 14, 2007
        -----------------------------                    --------------------
         Laura Lunardo
         Chief Financial Officer

                                     16