SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-KSB
(Mark One)

(X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

For the Fiscal Year Ended March 31, 2005
                                       OR
( )   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

Commission File No. 0-31679

                                QUANTUM MRI, INC.
                                -----------------
                 (Name of Small Business Issuer in its charter)

                Washington                                  54-0231483
         --------------------------                    --------------------
         (State of incorporation)                        (IRS Employer
                                                       Identification No.)
   4750 Paton Street
   Vancouver, British Columbia, Canada                         V6L 2J1
   --------------------------------------              --------------------
   (Address of Principal Executive Office)                     Zip Code

Registrant's telephone number, including Area Code: (303)-506-1633
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:

                                  Common Stock
                                ---------------
                                (Title of Class)

Check whether the Registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 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.
                                                           X
                             ------------             -----------
                               YES                        NO

Check if disclosure  of delinquent  filers in response to Item 405 of Regulation
S-B is not contained in this form, and no disclosure  will be contained,  to the
best  of  the  Registrant's   knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in Part III of this Form  10-KSB or any
amendment to this Form 10-KSB. [X]

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

                  Yes      X                           No  ______
                       ---------

The Company's revenues during the year ended March 31, 2005, were $ 0.



<PAGE>


The aggregate market value of the voting stock held by non-affiliates of the
Company, (604,889 shares) based upon the closing price of the Company's common
stock on November 15, 2005, was approximately $218,000.

Documents incorporated by reference:      None

As of November 15, 2005, the Company had 6,806,256 issued and outstanding shares
of common stock.


           CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION


     This report includes  "forward-looking  statements".  All statements  other
than  statements of historical  facts included in this  Registration  Statement,
regarding  the  Company's  financial  position,  business  strategy,  plans  and
objectives, are forward-looking  statements.  Although the Company believes that
the expectations reflected in the forward-looking statements and the assumptions
upon which such forward-looking statements are based are reasonable, it can give
no assurance  that such  expectations  and  assumptions  will prove to have been
correct.


                                       2
<PAGE>


ITEM 1.  DESCRIPTION OF BUSINESS

The Company was incorporated in Washington on June 7, 1989, under the name
P.L.D.F.E.T., Inc. On November 17, 2000, the Company changed its name from
P.L.D.F.E.T. to Travelshorts.com, Inc. Between the date of its incorporation and
December 3, 2002, the Company was essentially inactive. On December 3, 2002, the
Company acquired all of the issued and outstanding shares of SETI Corp. ("SETI")
in exchange for 111,275 shares of the Company's common stock. In April 2003 the
Company repurchased 33,178 of these shares from four shareholders at a cost of
$1,300.

Any reference to the Company, unless otherwise indicated, includes the
operations of SETI.

In December 2002, the Company changed its trade name to Sharps Elimination
Technologies Inc. ("SETI")

SETI was incorporated in Delaware on September 25, 2001. On November 12, 2001,
SETI acquired from Spectrum Meditech Inc.("Spectrum"), a related party, the
exclusive license, to develop, manufacture, and sell Needle-Ease(TM), a device
used for the safe disposal of used needles and hypodermic syringes. The
acquisition required a cash payment of $300,000 due on December 31,2005.

The Needle-Ease(TM) is a battery operated incineration system that destroys a
range of needles by passing an electric current through the needle thereby
reducing the steel to ashes in a matter of seconds. The electric charge is
generated from a rechargeable sealed lead-acid battery. The contact points of
the device can be touched directly or with a metal object by the operator or
anyone else without the transfer of current (i.e. shock).

On May 5, 2005 the shareholders of the Company:

     o    approved  amendments to the Company's Articles of Incorporation  which
          changed the Company's name to Sharps Elimination  Technologies,  Inc.;
          and
     o    approved a 150-for-1 reverse stock split.
     o    approved an  increase to the  Company's  authorized  capital  stock to
          issue 100,000 shares of preffer stock.

All information in this report concerning the Company's common stock, except as
otherwise indicated, gives effect to the 150-for-1 reverse split.

Subsequent to the May 5, 2005, shareholders' meeting, the Company decided it
would no longer pursue the Needle-Ease(TM) project. Prior to December 31, 2005,
the Company plans to terminate the license for Needle-Ease(TM) without any
liability for the payment due December 31, 2005.

The Company's new business plan calls for opening and operating MRI testing
centers in the United States and Canada. Each center will exclusively provide
MRI tests on an outpatient basis for patients.

The Company expects that it will require funding of approximately $3,000,000 to
establish its first three centers. As of November 15, 2005, the Company had not
established any MRI centers, did not have any agreements with any person
relating to the establishment of any MRI center, and did not have any
commitments from any person to provide any funding to the Company.

In September 2005, the Company changed its name to Quantum MRI, Inc.


                                       3
<PAGE>


General

Between May and September 2005 the Company sold 520,000 units, at a price of
$0.30 per unit, to a group of private investors. Each unit consists of one share
of the Company's common stock and one warrant. Each warrant entitles the holder
to purchase on additional share of the Company's common stock at a price of
$0.50 per share at any time prior to September 30, 2005.

As of November 15, 2005, the Company's President was the Company's only full
time employee.

The Company does not have a website.

ITEM 2.  DESCRIPTION OF PROPERTY

See Item 1.


ITEM 3.  LEGAL PROCEEDINGS.
--------------------------

In September 2003, Erika Gardner ("Gardner") commenced a civil action in the
Supreme Court of British Columbia against the Company, Kelly Fielder
("Fielder"), the Company's president, and Spectrum. In her complaint Gardner
alleges that the Company and/or Fielder are liable to Gardner for a loan in the
amount of approximately $250,000 (USD), and that Fielder and Spectrum failed to
deliver shares of the Company's common stock which were to be held by Gardner as
security for the loan. As part of this civil action Gardner also obtained an
order from the British Columbia Court which, among other things, restrained
Fielder and Spectrum from selling, transferring or voting any of the Company's
shares, and restrained the Company from making any changes to its capital
structure.

The Company and Fielder have filed answers to the complaint generally denying
the claims of Gardner. This civil action has been dormant since December 2003
and it is not possible to predict the outcome of this matter.

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

Not Applicable


ITEM 5. MARKET PRICE OF AND  DIVIDENDS  ON THE  REGISTRANT'S  COMMON  EQUITY AND
        OTHER SHAREHOLDER MATTERS.

Prior to September 24, 2004, the Company's common stock was traded on the OTC
Bulletin Board. Beginning September 24, 2004, the Company's common stock has
traded in the over-the-counter market, which is sometimes referred to as the
"pink sheets", under the symbol QTMR.PK. Shown below are the range of high and
low bid prices for the periods indicated. The market quotations reflect
interdealer prices, without retail mark-up, mark-down or commissions and may not
necessarily represent actual transactions.

         Quarter Ended                       High           Low

            6/30/03                          $1.41          $0.90
            9/30/03                          $1.07          $0.05
           12/31/03                          $0.05          $0.03


                                       4
<PAGE>

            3/31/04                          $0.05          $0.03

            6/30/04                          $0.05          $0.02
            9/30/04                          $0.02          $0.02
           12/31/04                          $0.02          $0.01
            3/31/05                          $0.03          $0.01

Holders of common stock are entitled to receive dividends as may be declared by
the Board of Director and, in the event of liquidation, to share pro rata in any
distribution of the Company's assets after payment of liabilities. The Board of
Directors is not obligated to declare a dividend. The Company has not paid any
dividends does not have any current plans to pay any dividends.

As of November 15, 2005, the Company had 6,806,256 outstanding shares of common
stock held by approximately 60 shareholders of record.


ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLAN OF
         OPERATION

During the twelve months ended March 31, 2005, the Company did not have any
revenues. During this period of time the Company was primarily involved in
attempting to raise capital for its operations.

Between May and September 2005, the Company sold 520,000 units, at a price of
$0.30 per unit, to a group of private investors. Each unit consists of one share
of the Company's common stock and one warrant. Each warrant entitles the holder
to purchase on additional share of the Company's common stock at a price of
$0.50 per share at any time prior to September 30, 2005. As of November 15, 2005
none of the warrants had been exercised.

The Company does not have any bank lines of credit, or any other traditional
financing arrangements. The Company expects to obtain additional capital through
the private sale of the Company's common stock or from borrowings from private
lenders or financial institutions. There can be no assurance that the Company
will be successful in obtaining any additional capital needed for its
operations.

ITEM 7.  FINANCIAL STATEMENTS

See the financial statements attached to this report.

ITEM 8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS.
------------------------------------------------------

The following 8-K reports, all of which pertain to a change in the Company's
auditors, are incorporated by reference.

            Report filed on 2-19-03
            Report filed on 6-29-04
            Report filed on 10-20-05
            Report filed on 11-22-05


                                       5
<PAGE>


ITEM 8A.  CONTROLS AND PROCEDURES

Kelly Fielder, the Company's Chief Executive and Financial Officer, has
evaluated the effectiveness of the Company's disclosure controls and procedures
as of a date prior to the filing date of this report (the "Evaluation Date") and
in his opinion the Company's disclosure controls and procedures ensure that
material information relating to the Company, including its consolidated
subsidiaries, is made known to him by others within those entities, particularly
during the period in which this report is being prepared, so as to allow timely
decisions regarding required disclosure. To the knowledge of Mr. Fielder, there
have been no significant changes in the Company's internal controls or in other
factors that could significantly affect the Company's internal controls
subsequent to the Evaluation Date. As a result, no corrective actions with
regard to significant deficiencies or material weakness in the Company's
internal controls were required.

ITEM 9.  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS

    Name                        Age        Position
    ----                        ---        --------

    Kelly Fielder               36         Chief Executive Officer,  Treasurer
                                           and a Director

Kelly Fielder has been an officer and director of the Company since December 31,
2002 and of SETI since September 25, 2001. Between March 22, 2002. and September
17,  2002,  Mr.  Fielder was an officer and director of Armagh  Group,  Inc. Mr.
Fielder has been an officer and director of Spectrum  since 1998. Mr. Fielder is
also the  President  of IRG  Services  Ltd.  ("IRG"),  a  management  consulting
business which he formed in 1996.

The Company does not have a compensation committee. Kelly Fielder, the Company's
only officer, serves as the Company's Audit Committee. Mr. Fielder is not a
financial expert and is not independent as that term is defined in Section
121(A) of the Listing Standards of the American Stock Exchange. The Company does
not believe it needs a financial expert since the Company is not generating any
revenues.

The Company has not adopted a Code of Ethics applicable to the Company's
principal executive, financial, and accounting officers and persons performing
similar functions. The Company does not believe it needs a Code of Ethics
because the Company has only one officer and director.

ITEM 10.  EXECUTIVE COMPENSATION

The following table sets forth in summary form the compensation earned or
received by (i) the Chief Executive Officer of the Company and (ii) by each
other executive officer of the Company who earned or received in excess of
$100,000 during the fiscal years ended March 31, 2003, 2004 and 2005.



                                       6
<PAGE>


                          Annual Compensation      Long Term Compensation
                         ----------------------    -------------------------

                                                     Re-                 All
                                                    stric-              Other
                                           Other     ted                Com-
Name and                                  Compen-   Stock    Options    pensa-
 Principal      Fiscal   Salary    Bonus  sation    Awards   Granted     tion
 Position        Year     (1)       (2)     (3)      (4)      (5)         (6)
--------------------------------------------------------------------------------

Kelly Fielder,   2005   $ 120,000     --      --  $150,000       --       --
President and    2004   $ 120,000     --      --        --       --       --
Chief Executive  2003   $  30,000     --      --        --       --       --
Officer since
December 2002

Robert Sawatsky, 2003   $      --     --      --        --       --       --
President and
Chief Executive
Officer prior to
December 2002

(1)  The dollar value of base salary (cash and non-cash) received or earned.
(2)  The dollar value of bonus (cash and non-cash) received.
(3)  Any other annual compensation not properly  categorized as salary or bonus,
     including perquisites and other personal benefits, securities or property
(4)  During the period covered by the foregoing  table,  the value of the shares
     of restricted  stock issued as compensation  for services.  The table below
     shows  the  number of shares of the  Company's  common  stock  owned by the
     officers listed above, and the value of such shares as of March 31, 2005:

         Name                       Shares              Value

         Kelly Fielder              66,000            $30,000

(5)  The shares of common  stock to be received  upon the  exercise of all stock
     options granted during the period covered by the table.
(6)  All other compensation  received that the Company could not properly report
     in any othe rcolumn of the table.

The Company's Board of Directors may increase the compensation paid to the
Company's officers depending upon the results of the Company's future
operations.

The Company has an employment contract with Kelly Fielder with for annual salary
of $120,000.

On June 30, 2004, the Company issued 33,333 shares of its common stock to Kelly
Fielder for services provided to the Company.

On November 15, 2005, the Company issued 6,000,000 shares of its common stock to
Kelly Fielder for services rendered.

The following shows the amount which the Company expects to pay to Mr. Fielder
during the twelve-month period ending March 31, 2006, and the time which Mr.
Fielder plans to devote to the Company's business.



                                       7
<PAGE>


                                                   Time to be Devoted
                                   Proposed        to the Company's
         Name                    Compensation           Business

       Kelly Fielder               $120,000              100%

Long Term Incentive Plans - Awards in Last Fiscal Year

None.

Employee Pension, Profit Sharing or Other Retirement Plans

The Company does not have a defined benefit, pension plan, profit sharing or
other retirement plan, although the Company may adopt one or more of such plans
in the future.

Compensation of Directors

          Standard Arrangements. At present, the Company does not pay its
          directors for attending meetings of the Board of Directors, although
          the Company may adopt a director compensation policy in the future.
          The Company has no standard arrangement pursuant to which directors of
          the Company are compensated for any services provided as a director or
          for committee participation or special assignments.

          Other Arrangements. During the year ended March 31, 2004, and except
          as disclosed elsewhere in this registration statement, no director of
          the Company received any form of compensation from the Company.

Stock Option and Bonus Plans

The Company has an Incentive Stock Option Plan, a Non-Qualified Stock Option
Plan and a Stock Bonus Plan. In some cases, these Plans are collectively
referred to as the "Plans". A summary description of these Plans follows. The
Plans provide for the grant, to selected employees of the Company and other
persons, of either stock bonuses or options to purchase shares of the Company's
common stock.

      Incentive Stock Option Plan. The Company's Incentive Stock Option Plan
      authorizes the issuance of shares of the Company's Common Stock to persons
      that exercise options granted pursuant to the Plan. Only Company employees
      may be granted options pursuant to the Incentive Stock Option Plan.

      Non-Qualified Stock Option Plan. The Company's Non-Qualified Stock Option
      Plan authorizes the issuance of shares of the Company's Common Stock to
      persons that exercise options granted pursuant to the Plans. The Company's
      employees, directors, officers, consultants and advisors are eligible to
      be granted options pursuant to the Plans, provided however that bona fide
      services must be rendered by such consultants or advisors and such
      services must not be in connection with the offer or sale of securities in
      a capital-raising transaction. The option exercise price is determined by
      the Company's Board of Directors.

      Stock Bonus Plan. The Company's Stock Bonus Plan allows for the issuance
      of shares of Common Stock to the Company's employees, directors, officers,
      consultants and advisors, provided however that bona fide services must be
      rendered by consultants or advisors and such services must not be in
      connection with the offer or sale of securities in a capital-raising
      transaction.



                                       8
<PAGE>


Summary

The following presents certain information as of November 15, 2005, concerning
the stock options and stock bonuses granted by the Company pursuant to the
Plans. Each option represents the right to purchase one share of the Company's
common stock.

                                 Total      Shares                  Remaining
                                Shares   Reserved for    Shares     Options/
                               Reserved   Outstanding   Issued As    Shares
Name of Plan                  Under Plans   Options    Stock Bonus  Under Plans
------------                  ----------- ------------ -----------  ------------

Incentive Stock Option Plan    2,000,000          --         N/A   2,000,000
Non-Qualified Stock Option
 Plan                          2,000,000          --         N/A   2,000,000
Stock Bonus Plan               6,000,000         N/A      33,333     966,667

The person listed below has received options or shares of the Company's common
stock as a stock bonus:

                             Incentive Stock Options

                      Shares                       Expiration  Options Expired/
                      Subject   Exercise   Date of   Date of    Exercised as of
Option Holder        To Option    Price     Grant    Option    November 15, 2005
-------------        ---------  ---------- ------- ----------- -----------------

                                      None


                           Non-Qualified Stock Options

                      Shares                       Expiration  Options Expired/
                      Subject   Exercise   Date of   Date of    Exercised as of
Option Holder        To Option    Price     Grant    Option    November 15, 2005
-------------        ---------  ---------- ------- ----------- -----------------

                                      None

                                  Stock Bonuses

                               Shares Issued
Name                           as Stock Bonus          Date Issued
----                           --------------          -----------

Kelly Fielder                     33,333                6-30-04

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

The  following  table lists the share  ownership of the  Company's  officers and
directors of each person known by the Company to be the beneficial owner of more
than 5% of the  Company's  outstanding  common  stock as of November  15,  2005.
Except as otherwise  indicated,  the Company believes that the beneficial owners
of the common stock listed below, have sole investment and voting power with
respect to such shares.


                                       9
<PAGE>



                                   Number of Shares            Percent of
Name and Address                  Beneficially Owned       Outstanding Shares

Kelly Fielder                          6,066,000                  90%
4750 Paton St.
Vancouver, B.C.
Canada  V6L 2J1

Spectrum Meditech Inc.                 20,417 (1)                 .03%
4750 Paton St.
Vancouver, B.C.
Canada  V6L 2J1


All officers and  directors as      _____________                 ____
a group (1 person)                  6,086,417 (1)                 90%
                                                                  ===



(1) Spectrum Meditech, Inc. is controlled by Kelly Fielder.

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

The Company acquired its license to the Needle-Ease device from Spectrum
Meditech Inc. Kelly Fielder, an officer, director and principal shareholder of
the Company, is also an officer, director and principal shareholder of Spectrum
Meditech Inc.

Between April 2003 and June 2004, the Company borrowed $292,275 from Murray
Atkins. The amounts borrowed were represented by notes which, at the option of
Mr. Atkins, were convertible into shares of the Company's common stock equal in
number to the amount determined by dividing the amount to be converted by $0.03.
During March and June 2004 Mr. Atkins converted the notes into 64,950 shares of
the Company's common stock. The remaining note held by Mr. Atkins, in the
principal amount of $85,780, is convertible into 19,062 shares of the Company's
common stock.

On June 30, 2004, the Company issued 33,333 shares of its common stock to Kelly
Fielder for services provided to the Company.

On November 15, 2005, the Company issued 6,000,000 shares of its common stock to
Kelly Fielder for services rendered.

ITEM 13.  EXHIBITS AND REPORTS ON FORM 8-K

Exh. #      Description of Exhibit                               Page Number

3.1         Certificate of Incorporation                               *

3.3         Bylaws                                                     *

31          Rule 13a-14(a) Certifications

32          Section 1350 Certifications


                                       10
<PAGE>

*   Incorporated by referenced to the same exhibit filed with the Company's
    registration statement on Form 10-SB.

Reports on Form 8-K

   During the three months ended March 31, 2005 the Company did not file any
reports on Form 8-K.

ITEM 14.    PRINCIPAL ACCOUNTANT FEES AND SERVICES

Manning Elliott, Chartered Accountants, served as the Company's independent
public accountants during the fiscal year ended March 31, 2002. Spicer Jeffries
LLP served as the Company's independent public accountants during the fiscal
year ended March 31, 2003, and until June 16, 2004.

Audit fees represent amounts billed for professional services rendered for the
audit of the Company's annual financial statements and the reviews of the
financial statements included in the Company's Forms 10-Q for the fiscal year.
Before Manning Elliott and Spicer Jeffries LLP were engaged by the Company to
render audit services, the engagements were approved by the Company's Directors.

Effective February 14, 2003, the Company dismissed Manning Elliot, Chartered
Accountants, ("Manning Elliott") and hired Spicer, Jeffries & Co. ("Spicer
Jeffries") as the Company's independent certified public accountants.

Effective June 16, 2004, Spicer Jeffries resigned as the Company's independent
accountants as a result of the decision by Spicer Jeffries to discontinue its
auditing practice for publicly traded corporations.

On June 16, 2004, the Company retained Schumacher & Associates, Inc. to act as
the Company's independent certified public accountants.

Effective September 24, 2004, the Company dismissed Schumacher & Associates as
its independent auditors.

On May 17, 2005, the Company rehired Manning Elliott as its independent
auditors.

The following table shows the aggregate fees billed to the Company during the
years ended March 31, 2004, and 2005 by Manning Elliott, Spicer Jeffries, and
Schumacher & Associates.

                                    2004          2005

Audit Fees                       $10,500       $14,000
Audit-Related Fees                    --            --
Financial Information Systems         --            --
Design and Implementation Fees        --            --
Tax Fees                              --            --
All Other Fees                        --            --


                                       11
<PAGE>




QUANTUM MRI, INC.
(formerly Travelshorts.com, Inc.)
(A Development Stage Company)

March 31, 2005


                                                                           Index

Report of Independent Registered Public Accounting Firm....................F-1

Consolidated Balance Sheets................................................F-2

Consolidated Statements of Operations......................................F-3

Consolidated Statements of Cash Flows......................................F-4

Consolidated Statements of Stockholders' Equity (Deficit)..................F-5

Notes to the Consolidated Financial Statements.............................F-6



















<PAGE>



             Report of Independent Registered Public Accounting Firm


To the Directors and Stockholders
Quantum MRI Inc. (formerly Travelshorts.com, Inc.)
(A Development Stage Company)
We have audited the accompanying consolidated balance sheets of Quantum MRI,
Inc. (formerly Travelshort.com, Inc.) as of March 31, 2004 and 2005 and the
related consolidated statements of operations, cash flows and stockholders'
equity (deficit) for the two years then ended. These financial statements are
the responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial position of Quantum
MRI Inc. (formerly Travelshorts.com, Inc.) as of March 31, 2004 and 2005, and
the results of its operations and its cash flows for the year then ended in
conformity with accounting principles generally accepted in the United States.
The accompanying consolidated financial statements have been prepared assuming
the Company will continue as a going concern. As discussed in Note 1 to the
financial statements, the Company has not generated any sustained revenues and
has incurred significant operating losses from operations. The Company has a
working capital deficiency and will need additional financing to sustain
operations. These factors raise substantial doubt about the Company's ability to
continue as a going concern. Management's plans in regard to these matters are
also discussed in Note 1. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.


CHARTERED ACCOUNTANTS

Vancouver, Canada
October 24, 2005

                                      F-1

<PAGE>

                                QUANTUM MRI, INC.
                        (formerly Travelshorts.com, Inc.)
                          (A Development Stage Company)
                           Consolidated Balance Sheets
                            (Expressed in US dollars)

                                                           March 31,  March 31,
                                                             2005        2004
                                                               $           $

ASSETS


Current Assets

Cash                                                           123          -
--------------------------------------------------------------------------------

Total Current Assets                                           123          -

Property and Equipment (Note 3)                              5,283      7,162
--------------------------------------------------------------------------------

Total Assets                                                 5,406      7,162
================================================================================


LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current Liabilities

 Bank indebtedness                                               -        812
 Accounts payable                                          125,286    104,487
 Accrued liabilities                                        41,368     13,192
 Due to related parties (Note 6)                         1,244,288  1,130,683
 Convertible notes payable (Note 7)                         75,000    285,000
--------------------------------------------------------------------------------
Total Liabilities                                         1,485,942   1,534,174
--------------------------------------------------------------------------------

Commitments and Contingencies (Notes 1 and 9)

Stockholders' Equity (Deficit)

Common Stock, 50,000,000 shares authorized, $0.001 par value
286,256  and  187,973   shares  issued  and   outstanding,
respectively                                                   286        188

Additional Paid in Capital                                 946,665    465,879

Deficit Accumulated During the Development Stage
                                                        (2,427,487) (1,993,079)
--------------------------------------------------------------------------------

Total Stockholders' Equity (Deficit)                    (1,480,536) (1,527,012)
--------------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity (Deficit)         5,406      7,162
================================================================================


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

                                      F-2

<PAGE>


                                QUANTUM MRI, INC
                        (formerly Travelshorts.com, Inc.)
                          (A Development Stage Company)
                      Consolidated Statement of Operations
                            (Expressed in US dollars)

                                        Accumulated
                                            From
                                        June 7, 1989
                                          (Date of      For the     For the
                                          Inception)  Year Ended  Year Ended
                                         To March 31,   March 31,   March 31,
                                             2005         2005       2004
                                              $            $           $

Revenue                                       2,731         -            -
-----------------------------------------------------------------------------


Expenses

Consulting                                172,048      11,650      86,660
Donated rent                               47,409      23,860      20,624
Donated services                           28,070           -           -
General and administrative                278,489      41,786     142,143
Impairment loss on intangible asset       252,819           -     252,819
Imputed interest  (Note 5(b))             138,556      64,749      51,143
Investor relations                         86,730           -      54,730
Management fees                           370,000     220,000     120,000
Product development                        92,402           -      38,439
Professional fees                         303,478      72,363     148,971
-----------------------------------------------------------------------------

Total Expenses                          1,770,001     434,408     915,529
-----------------------------------------------------------------------------

Net Loss                               (1,767,270)   (434,408)   (915,529)
=============================================================================

Net Loss Per Share - Basic and Diluted                 (1.66)      (4.79)
=============================================================================

Weighted Average Shares Outstanding                   261,000     191,000
=============================================================================

Stock- based compensation included in:
Management fees                           100,000     100,000           -
=============================================================================




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

                                      F-3


<PAGE>

                                QUANTUM MRI, INC.
                        (formerly Travelshorts.com, Inc.)
                          (A Development Stage Company)
                      Consolidated Statement of Cash Flows
                            (Expressed in US dollars)


                                        Accumulated
                                            From
                                        June 7, 1989
                                          (Date of      For the     For the
                                          Inception)  Year Ended  Year Ended
                                         To March 31,   March 31,   March 31,
                                             2005         2005       2004
                                              $            $           $

Operating Activities

Net loss                                  (1,767,270)   (434,408)   (915,529)

Adjustment to reconcile net loss to net
cash used in operating activities
Imputed interest                           138,556      64,749       51,143
Depreciation and amortization               31,868       1,879       18,838
Impairment loss on intangible asset        252,819                  252,819
Loss on disposal of assets                   4,597           -            -
Stock-based compensation                   100,000      100,000           -
Donated services                            75,479      23,860       20,624

Changes in operating assets and liabilities:
 Increase in due from related parties      318,173      113,605     156,792
Increase in accounts payable and
accrued liabilities                        166,654      48,975       78,280
--------------------------------------------------------------------------------

Net Cash Used in Operating Activities     (679,124)     (81,340)    (337,033)
--------------------------------------------------------------------------------

Investing Activities

   Purchase of property and equipment     (19,603)           -      (9,391)
--------------------------------------------------------------------------------

Net Cash Used in Investing Activities     (19,603)           -      (9,391)
--------------------------------------------------------------------------------

Financing Activities

   Proceeds from convertible notes
payable                                    387,525      82,275      285,000
   Bank overdraft                                -       (812)          812
   Proceeds from issuance of common
stock                                      311,325           -       45,200
--------------------------------------------------------------------------------

Net Cash Flows Provided By Financing
Activities                                 698,850      81,463      331,012
--------------------------------------------------------------------------------

Increase (decrease) In Cash                    123         123      (15,412)

Cash - Beginning of Period                       -           -       15,412
--------------------------------------------------------------------------------

Cash - End of Period                           123         123            -
================================================================================

Non-cash Investing and Financing
Activities

Stock-based compensation                    100,000     100,000
Shares issued on conversion of notes
payable                                     292,275     292,275
Forgiveness of debt with settlement
from shareholder                             20,250           -           -
Acquisition   of  licensing   agreement
with assumption of liabilities              274,964           -           -
Licensing agreement acquired                918,490           -           -
================================================================================

Supplemental Disclosures

  Income taxes paid                               -           -           -
   Interest paid                                  -           -           -

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

                                      F-4


<PAGE>


                                QUANTUM MRI, INC.
                        (formerly Travelshorts.com, Inc.)
                          (A Development Stage Company)
            Consolidated Statements of Stockholders' Equity (Deficit)
             From June 7, 1989 (Date of inception) to March 31, 2005
                            (expressed in US dollars)

<TABLE>
<S>                                    <C>     <C>      <C>           <C>        <C>
                                                                   Deficit
                                                                  Accumulated
                                                                    During
                                                    Additional       the
                                     Common Stock     Paid-in     Development
                                   Shares    Amount   Capital        Stage      Total
                                      #        $         $             $          $

Balance -June 7, 1989 (Date of
inception)                                -       -         -           -          -

Stock issued for services at
$0.045 per share                     50,000      50    (2,450)          -      2,500

Net loss for the period                   -       -         -      (2,500)    (2,500)
-------------------------------------------------------------------------------------

Balance - March 31, 1997             50,000      50    (2,450)     (2,500)         -

Sale of common stock for cash                          59,944
at $1.05 per share                   55,800      56                     -     60,000

Net loss for the year                     -       -         -     (52,100)   (52,100)
-------------------------------------------------------------------------------------

Balance - March 31, 1998            105,800     106    62,394     (54,600)     7,900

Sale of common stock for cash
at $6.75 per share                    1,720       2    11,498           -     11,500

Net loss for the year                     -       -         -     (21,400)   (21,400)
-------------------------------------------------------------------------------------

Balance - March 31, 1999            107,520     108    73,892     (76,000)    (2,000)

Sale of common stock for cash
at $25.00 per share                   1,460       1    36,499           -     36,500

Net loss for the year                     -       -         -     (12,471)   (12,471)
-------------------------------------------------------------------------------------

Balance - March 31,2000             108,980     109   110,391     (88,471)    22,029

Sale of common stock for cash
at $28.35 per share                     657       1    18,624           -     18,625

Stock cancelled and returned        (2,000)     (2)   (1,998)           -     (2,000)

Net loss for the year                     -       -         -     (82,446)   (82,446)
-------------------------------------------------------------------------------------

Balance - March 31, 2001            107,637     108   127,017    (170,917)   (43,792)

Stock cancelled and returned          (680)     (1)         1           -          -

Stock reissued                          366       -         -           -          -

Donated capital                           -       -    27,475           -     27,475

  Net loss for the year                   -       -         -     (50,750)   (50,750)
-------------------------------------------------------------------------------------

Balance - March 31, 2002            107,323     107   154,493    (221,667)   (67,067)

Acquisition of SETI                 111,275     111    16,580    (660,217)   (643,526)

Cancellation of shares             (50,000)    (50)   (7,450)           -      (7,500)

Sale of common stock for cash
   at $75.00 per share                1,933       2   144,998           -     145,000

Offering costs                            -       -   (6,000)           -      (6,000)

Forgiveness of debt                       -       -    20,250           -      20,250

Donated capital                           -       -    26,059           -      26,059

Net loss for the year                     -       -         -    (195,666)   (195,666)
=====================================================================================

Balance - March 31, 2003         170,531        170   348,930  (1,077,550)   (728,450)
</TABLE>


                                      F-5
<PAGE>

                                QUANTUM MRI, INC.
                        (formerly Travelshorts.com, Inc.)
                          (A Development Stage Company)
                 Consolidated Statements of Stockholders' Equity (Deficit) From
              June 7, 1989 (Date of inception) to March 31, 2005 (cont'd)
                            (expressed in US dollars)


<TABLE>
<S>                                      <C>        <C>      <C>           <C>         <C>
                                                                         Deficit
                                                                       Accumulated
                                                                        During
                                                          Additional      the
                                        Common Stock       Paid-in     Development
                                      Shares      Amount    Capital        Stage      Total
                                         #          $          $             $          $

Sale of common stock for cash at
   $75.00 per share                     620         1        46,499           -       46,500
Adjustment for non-cancellation
of shares                            50,000        50           (50)          -            -

Shares repurchased                 (33,178)       (33)       (1,267)          -       (1,300)

Donated capital                           -         -        71,767           -       71,767

Net loss for the year                     -         -             -    (915,529)    (915,529)
----------------------------------------------------------------------------------------------

Balance - March 31, 2004            187,973       188       465,879  (1,993,079)  (1,527,012)
---------------------------------------------------------------------------------------------
Balance - March 31, 2004            187,973       188       465,879  (1,993,079)  (1,527,012)

Stock issued for conversion of
notes at $4.50 per share             64,950       65        292,210           -      292,275

Stock issued for management
services at $3.00 per share          33,333       33         99,967           -      100,000

Donated capital                           -        -         88,609           -       88,609

Net loss for the year                     -        -              -    (434,408)    (434,408)
---------------------------------------------------------------------------------------------

Balance - March 31, 2005            286,256      286        946,665  (2,427,487)  (1,480,536)
=============================================================================================
</TABLE>


                                      F-6
<PAGE>



                                QUANTUM MRI, INC.
                        (formerly Travelshorts.com, Inc.)
                          (A Development Stage Company)
                       Notes to the Consolidated Financial Statements
                                 March 31, 2005
                            (Expressed in US dollars)


1. Nature of Operations and Continuance of Business
   The Company was incorporated in Washington on June 7, 1989, under the name
   P.L.D.F.E.T., Inc. On March 17, 2000, the Company changed its name to
   Travelshorts.com, Inc. On May 5, 2005, the Company changed its name to Sharps
   Elimination Technologies, Inc. On August 25, 2005, the Company changed its
   name to Quantum MRI, Inc. The Company is in the development stage as defined
   by the Statement of Financial Accounting Standard ("SFAS") No. 7 "Accounting
   and Reporting by Development Stage Enterprises". The Company's principal
   business is the development, manufacture and selling of Needle-Ease(TM), a
   device used for the safe disposal of used needles and hypodermic syringes. On
   December 3, 2002, the Company acquired all of the issued and outstanding
   shares of SETI Corp. ("SETI") in exchange for 111,275 newly issued
   split-adjusted shares of the Company's common stock. Prior to the
   acquisition, the Company had no operations and was considered a public shell.
   SETI was also a development stage company with no operations, however had a
   licensing agreement for certain patented technology (see Note 5).
   Accordingly, since SETI was not considered a business, the transaction was
   accounted for as a recapitalization of the public shell and the issuance of
   stock by the Company for the assets and liabilities of SETI. The value of the
   net assets of SETI is the same as their historical book value, which included
   the licensing agreement of $274,964 and liabilities assumed of $918,490. In
   addition, as part of the transaction, the former president returned 50,000
   split-adjusted common shares to the Company for cancellation. The
   accompanying consolidated financial statements include the historical
   accounts of SETI since December 3, 2002. All significant inter-company
   balances and transactions have been eliminated in consolidation.
   At March 31, 2005, the Company had a working capital deficit of $1,485,819
   and accumulated losses of $2,427,487 since inception. The ability of the
   Company to continue as a going concern is dependent on its ability to emerge
   from the development stage with respect to its planned principal business
   activity, attaining profitable operations and raising additional debt and/or
   equity financing to fund its operations. Management's plan in this regard is
   to raise additional funding through private offerings and bring its product
   to market. The consolidated financial statements do not include any
   adjustment relating to the recovery and classification of recorded asset
   amounts or the amount and classification of liabilities that might be
   necessary should the Company discontinue operations. These factors raise
   substantial doubt about the Company's ability to continue as a going concern.

2. Significant Accounting Policies
(a)   Basis of Presentation

      These financial statements are prepared in conformity with accounting
      principles generally accepted in the United States and are expressed in US
      dollars. These financial statements include accounts of the Company and
      its wholly-owned subsidiary, SETI


                                      F-7
<PAGE>

2. Significant Accounting Policies (continued)

      Corp. All significant inter-company transactions and balances have been
      eliminated. The Company's fiscal year end is March 31.

(b)   Use of Estimates

      The preparation of financial statements in conformity with accounting
      principles generally accepted in the United States requires management to
      make estimates and assumptions that affect the reported amounts of assets
      and liabilities and disclosure of contingent assets and liabilities at the
      date of the financial statements and the reported amounts of revenues and
      expenses during the periods. Actual results could differ from those
      estimates.

(c)   Cash Equivalents
      The Company considers all highly liquid instruments with a maturity of
      three months or less at the time of issuance to be cash equivalents.

(d)   Property and Equipment
      Property and equipment are stated at cost less accumulated depreciation
      and consist of computer and office furniture. These assets are depreciated
      on a straight-line basis using an estimated useful life of five years.

(e)   Comprehensive Income
      SFAS No. 130, "Reporting Comprehensive Income," establishes standards for
      the reporting and display of comprehensive income and its components in
      the financial statements. As at March 31, 2004 and 2003, the Company has
      no items that represent comprehensive income and, therefore, has not
      included a schedule of comprehensive income in the financial statements.

(f)   Product Development Costs
      Product development costs related to the Needle-Ease(TM) technology are
      expensed as incurred.

(g)   Long-lived Assets
      In accordance with the SFAS No. 144, "Accounting for the Impairment or
      Disposal of Long-Lived Assets", the carrying value of intangible assets
      and other long-lived assets is reviewed on a regular basis for the
      existence of facts or circumstances that may suggest impairment. The
      Company recognizes impairment when the sum of the expected undiscounted
      future cash flows is less than the carrying amount of the asset.
      Impairment losses, if any, are measured as the excess of the carrying
      amount of the asset over its estimated fair value.

(h)   Foreign Currency Translation
      The Company's functional and reporting currency is the United States
      dollar. The financial statements of the Company are translated to United
      States dollars in accordance with SFAS No. 52 "Foreign Currency
      Translation". Monetary assets and liabilities denominated in foreign
      currencies are translated using the exchange rate prevailing at the
      balance sheet date. Gains and losses arising on translation or settlement
      of foreign currency denominated transactions or balances are included in
      the determination of income. Foreign currency transactions are primarily
      undertaken in Canadian dollars. The Company has not, to the date of these
      financials statements, entered into derivative instruments to offset the
      impact of foreign currency fluctuations.


                                      F-8
<PAGE>

(i)   Intangible Assets
      Intangible assets consist of license and patent technology related to the
      Needle-Ease(TM) technology. These license and patent technologies were
      being amortized on a straight-line basis over the life of the license
      agreement, which expires in 2015. The Company recognized an impairment
      loss of $252,819 during the year ended March 31, 2004 as there is no
      assurance the Company will be able to generate revenues from the
      technology, or if revenues are generated, that it will be profitable.

(j)   Income Taxes
      Potential benefits of income tax losses are not recognized in the accounts
      until realization is more likely than not. The Company has adopted SFAS
      No. 109 "Accounting for Income Taxes" as of its inception. Pursuant to
      SFAS No. 109, the Company is required to compute tax asset benefits for
      net operating losses carried forward. Potential benefit of net operating
      losses have not been recognized in these financial statements because the
      Company cannot be assured it is more likely than not it will utilize the
      net operating losses carried forward in future years.

(k)   Stock-based Compensation
      The Company accounts for stock-based awards using the intrinsic value
      method of accounting in accordance with Accounting Principles Board
      Opinion No. 25, "Accounting for Stock Issued to Employees" (APB 25). Under
      the intrinsic value method of accounting, compensation expense is
      recognized if the exercise price of the Company's employee stock options
      is less than the market price of the underlying common stock on the date
      of grant. Statement of Financial Accounting Standards No. 123, "Accounting
      for Stock-Based Compensation," (SFAS 123), established a fair value based
      method of accounting for stock-based awards. Under the provisions of SFAS
      123, companies that elect to account for stock-based awards in accordance
      with the provisions of APB 25 are required to disclose the pro forma net
      income (loss) that would have resulted from the use of the fair value
      based method under SFAS 123.

      All transactions in which goods or services are the consideration received
      for the issuance of equity instruments are accounted for based on the fair
      value of the consideration received or the fair value of the equity
      instrument issued, whichever is more reliably measurable. Equity
      instruments issued to employees and the cost of the services received as
      consideration are measured and recognized based on the fair value of the
      equity instruments issued.

(l)   Financial Instruments
      The carrying value of cash, convertible notes payable, accounts payable
      and accrued liabilities and amounts due to related parties approximate
      fair value due to the relatively short maturity of these instruments.

(m)   Revenue Recognition
      The Company recognizes revenue in accordance with SEC Staff Accounting
      Bulletin No. 104 when there is persuasive evidence of an arrangement,
      delivery of products has occurred or services have been rendered, the
      seller's price to the buyer is fixed or determinable, and collection is
      reasonably assured. The Company realized revenue in prior fiscal years
      from the prior business related to a service agreement to provide video
      services accessible through the internet.


                                      F-9
<PAGE>

(n)   Basic and Diluted Net Income (Loss) per Share
      The Company computes net income (loss) per share in accordance with SFAS
      No. 128, "Earnings per Share", which requires presentation of both basic
      and diluted earnings per shares (EPS) on the face of the income statement.
      Basic EPS is computed by dividing net income (loss) available to common
      shareholders (numerator) by the weighted average number of common shares
      outstanding (denominator) during the period. Diluted EPS gives effect to
      all dilutive potential common shares outstanding during the period
      including stock options, using the treasury stock method, and convertible
      preferred stock, using the if-converted method. In computing diluted EPS,
      the average stock price for the period is used in determining the number
      of shares assumed to be purchased from the exercise of stock options or
      warrants. Diluted EPS excludes all dilutive potential common shares if
      their effect is anti-dilutive.

(o)   Reclassification
      Certain reclassifications have been made to the prior year's financial
      statements to conform to the current period's presentation.

(p)   Recent Accounting Pronouncements
      In May 2005, the Financial Accounting Standards Board (FASB) issued SFAS
      No. 154, "Accounting Changes and Error Corrections - A Replacement of APB
      Opinion No. 20 and SFAS No. 3". SFAS 154 changes the requirements for the
      accounting for and reporting of a change in accounting principle and
      applies to all voluntary changes in accounting principle. It also applies
      to changes required by an accounting pronouncement in the unusual instance
      that the pronouncement does not include specific transition provisions.
      SFAS 154 requires retrospective application to prior periods' financial
      statements of changes in accounting principle, unless it is impracticable
      to determine either the period-specific effects or the cumulative effect
      of the change. The provisions of SFAS No. 154 are effective for accounting
      changes and correction of errors made in fiscal years beginning after
      December 15, 2005. The adoption of this standard is not expected to have a
      material effect on the Company's results of operations or financial
      position.

      In December 2004, the FASB issued SFAS No. 153, "Exchanges of Nonmonetary
      Assets - An Amendment of APB Opinion No. 29". The guidance in APB Opinion
      No. 29, "Accounting for Nonmonetary Transactions", is based on the
      principle that exchanges of nonmonetary assets should be measured based on
      the fair value of the assets exchanged. The guidance in that Opinion,
      however, included certain exceptions to that principle. SFAS No. 153
      amends Opinion No. 29 to eliminate the exception for nonmonetary exchanges
      of similar productive assets and replaces it with a general exception for
      exchanges of nonmonetary assets that do not have commercial substance. A
      nonmonetary exchange has commercial substance if the future cash flows of
      the entity are expected to change significantly as a result of the
      exchange. The provisions of SFAS No. 153 are effective for nonmonetary
      asset exchanges occurring in fiscal periods beginning after June 15, 2005.
      Early application is permitted and companies must apply the standard
      prospectively. The adoption of this standard is not expected to have a
      material effect on the Company's results of operations or financial
      position,

      In December 2004, the Financial Accounting Standards Board (FASB) issued
      Statement of Financial Accounting Standard (SFAS) No. 123R, "Share Based
      Payment". SFAS 123R is a revision of SFAS No. 123 "Accounting for
      Stock-Based Compensation", and supersedes APB Opinion No. 25, "Accounting
      for Stock Issued to Employees" and its related implementation guidance.
      SFAS 123R


                                      F-10
<PAGE>

2. Significant Accounting Policies (continued)

   (p)Recent Accounting Pronouncements
      establishes standards for the accounting for transactions in which an
      entity exchanges its equity instruments for goods or services. It also
      addresses transactions in which an entity incurs liabilities in exchange
      for goods or services that are based on the fair value of the entity's
      equity instruments or that may be settled by the issuance of those equity
      instruments. SFAS 123R focuses primarily on accounting for transactions in
      which an entity obtains employee services in share-based payment
      transactions. SFAS 123R requires a public entity to measure the cost of
      employee services received in exchange for an award of equity instruments
      based on the grant-date fair value of the award (with limited exceptions).
      That cost will be recognized over the period during which an employee is
      required to provide service in exchange for the award - the requisite
      service period (usually the vesting period). SFAS 123R requires that the
      compensation cost relating to share-based payment transactions be
      recognized in financial statements. That cost will be measured based on
      the fair value of the equity or liability instruments issued. Public
      entities that file as small business issuers will be required to apply
      SFAS 123R in the first interim or annual reporting period that begins
      after December 15, 2005. The adoption of this standard is not expected to
      have a material effect on the Company's results of operations or financial
      position.

      In March 2005, the SEC staff issued Staff Accounting Bulletin No. 107
      ("SAB 107") to give guidance on the implementation of SFAS 123R. The
      Company will consider SAB 107 during implementation of SFAS 123R.


3. Property and Equipment

                                                         March 31,    March 31,
                                                           2005         2004
                                         Accumulated  Net Carrying  Net Carrying
                                   Cost  Depreciation     Value         Value
                                     $         $            $             $
                                   ---------------------------------------------
   Office  furniture and computer
   hardware                         9,391     4,108      5,283       7,162
   ----------------------------------------------------------------------------

4. Acquisition of Subsidiary

   On December 3, 2002 the Company acquired all of the issued and outstanding
   shares of SETI Corp. ("SETI") in exchange for 111,275 newly issued
   split-adjusted shares of the Company's common stock valued at $16,691. Prior
   to the acquisition, the Company had no operations and was considered a public
   shell. SETI was also a development stage company with no operations, however
   had a licensing agreement for certain patented technology (see Note 5).
   Accordingly, since SETI was not considered a business, the transaction was
   accounted for as a recapitalization of the public shell and the issuance of
   stock by the Company for the assets and liabilities of SETI. The value of the
   net assets of SETI is the same as their historical book value, which included
   the licensing agreement of $274,964 and liabilities assumed of $918,490. In
   addition, as part of the transaction, the former president returned 50,000
   split-adjusted common shares to the Company for cancellation.

                                      F-11
<PAGE>



         Licensing Agreement                     $ 274,964
         SETI Liabilities
                                                  (918,490)
         Common shares of the Company              (16,691)
        ---------------------------------------------------------
         Paid by the  issuance of 111,275
         shares of common stock                   (660,217)
        =========================================================
5. Intangible Assets

                                                         March 31,    March 31,
                                                           2005         2004
                                         Accumulated  Net Carrying  Net Carrying
                                   Cost  Depreciation     Value         Value
                                     $         $            $             $
                                   ---------------------------------------------

   License and patent technology  300,000   300,000          -            -
   ===========================================================================

    By an Agreement dated November 12, 2001, as amended on June 28, 2005, the
    Company acquired from Spectrum Meditech Inc. ("Spectrum"), a company
    controlled by the President of the Company, an exclusive license to the
    Needle-Ease(TM) technology. The technology includes that disclosed in the
    patent held by Spectrum, as well as blueprints, drawings, specifications,
    engineering data, engineering calculations, processes, apparatuses, and
    parts relating to the Needle-Ease(TM) product. Included as part of the
    licences are the rights to use the Needle-Ease(TM) trademarks and trade
    names.

    In consideration for the license, the Company agreed to:

a)   Pay Spectrum $300,000 no later than December 31, 2005,

b)   Pay Spectrum a royalty of $3.25 for each product sold,  provided,  however,
     that the Company pay a minimum of $100,000  per year,  commencing  with the
     year ended December 31, 2005, and

c)   Issue 5,333 split-adjusted shares of common stock.

    The Company recognized $16,609 of amortization during the year ended March
    31, 2004. The Company recognized an impairment loss of $252,819 during the
    year ended March 31, 2004 as there is no assurance the Company will be able
    to generate revenues from the technology, or if revenues are generated, that
    it will be profitable.

6.    Related Party Transactions
(a)   During the year ended March 31, 2005, management fees of $120,000 were
      charged to operations pursuant to an executive services agreement with the
      President of the Company (March 31, 2004 - $120,000), and expenses were
      incurred on behalf of the Company of $8,462 (March 31, 2004 - $36,792)
      were paid by the President.


                                      F-12
<PAGE>

(b)   As of March 31, 2005, the Company's president, and a company controlled by
      the president are owed $1,244,288 relating to amounts assumed by the
      Company at the acquisition of SETI and subsequent advances made to the
      Company. These amounts have no due date and are non-interest bearing.
      During the year ended March 31, 2004, interest of $64,749 (March 31, 2004,
      - $51,143) has been imputed at twice prime rate and charged to operations
      with a corresponding credit to additional paid-in capital.
(c)   During the year ended March 30, 2005, the Company recognized a total of
      $23,860 (March 30, 2004 - $20,624) for donated rent provided by the
      President of the Company.
(d)   The Company recognized donated services until September 1, 2002 when the
      Company entered into an agreement with the President of the Company to
      provide services for $120,000 per annum. The agreement is for a term of
      three years.
(e)   Refer to Note 5.

7.    Convertible Notes Payable
(a)   On July 27, 2004, the Company issued a convertible promissory note for the
      cash proceeds of $50,000. On August 26, 2004, the Company issued a
      convertible promissory note for the cash proceeds of $15,000. On October
      5, 2004, the Company issued a convertible promissory note for the cash
      proceeds of $10,000. These notes are due in one year from the date of
      issue, and bear interest at 5.5% per annum. The holders can convert the
      principal and accrued interest at any time at a conversion price of $0.03
      per share. At March 31, 2005 $2,573 of interest has been accrued.
(b)   On January 5, 2004, February 3, 2004, February 19, 2004, and February 26,
      2004, the Company issued four convertible promissory notes of $25,000 each
      for aggregate cash proceeds of $100,000. On June 4, 2004, the Company
      issued a convertible promissory note for cash proceeds of 7,275. At July
      12, 2004, $1,594 of interest has been accrued. On July 12, 2004, the
      Company issued 22,222 split-adjusted shares of common stock upon the
      conversion of the promissory notes in full.
(c)   On December 17, 2003, the Company issued a convertible promissory note for
      cash proceeds of $185,000. On June 29, 2004, the Company issued 41,111
      split-adjusted shares of common stock upon the conversion of the
      promissory note in full.

8.    Common Stock
(a)   On May 5, 2005, the Company completed a reverse stock split on the basis
      of 1 new share of common stock for every 150 old shares of common stock
      outstanding. All per share amounts have been retroactively restated to
      reflect the reverse stock split with no change in par value.
(b)   On June 29, 2004, the Company converted $185,000 of notes payable to
      41,111 split-adjusted shares of common stock at a split-adjusted
      conversion rate of $4.50 per share.
(c)   On June 30, 2004, the Company issued 33,333 split-adjusted shares of
      common stock to the President of the Company for services rendered at a
      fair value of $100,000.
(d)   On July 12, 2004, the Company converted $100,000 of notes payable to
      22,222 split-adjusted shares of common stock at a split-adjusted
      conversion rate of $4.50 per share.
(e)   On July 12, 2004, the Company converted $7,275 of notes payable to 1,617
      split-adjusted shares of common stock at a split-adjusted conversion rate
      of $4.50 per share.


                                      F-13
<PAGE>


8.    Common Stock (continued)
(f)   On April 16, 2003, the Company repurchased and cancelled 33,178
      split-adjusted shares of common stock in consideration for $1,300.
(g)   In April 2003, the Company issued 620 split-adjusted units for cash
      proceeds of $46,500. Each unit consisted of one share of common stock and
      one share purchase warrant. Each warrant entitled the holder to acquire an
      additional share of common stock at a price of $150 per split-adjusted
      share up to December 31, 2004. All warrants subsequently expired in full
      without exercise.
(h)   On April 9, 2004, the Company established an Incentive Stock Option Plan,
      a Non-Qualified Stock Option Plan and a Stock Bonus Plan to issue up to a
      total of 66,667 split-adjusted shares to employees.
(i)   Share Purchase Warrants

      The following table summarizes the continuity of the Company's warrants:

                                                               Weighted
                                               Number of       average
                                            split-adjusted  exercise price
                                                shares            $


               Balance March 31, 2004             2,533        $150.00
               Issued
               Exercised                              -              -
               Expired                           (2,553)       $150.00
                                              ------------------------
               Balance, March 31, 2005                -              -
                                              ========================
9. Contingencies
    A claim has been asserted against the Company, its subsidiary and President
    alleging that the Company and/or its President are liable to for a loan in
    the amount of approximately $250,000 (USD), and that there was a failure to
    deliver approximately 53,333 split-adjusted shares of the Company's common
    stock which were to be held as security for the loan The Company intends to
    vigorously defend itself in this matter and management feels it has
    meritorious defenses. This action is in a very preliminary stage and it is
    not possible to determine the probable outcome. The accompanying financial
    statements do no include any provision for possible loss.

10.   Income Taxes

   Potential benefits of income tax losses are not recognized in the accounts
   until realization is more likely than not. The Company has net operating
   losses of $1,618,000 which expire through 2024. Pursuant to SFAS No. 109 the
   Company is required to compute tax asset benefits for net operating losses
   carried forward. Potential benefit of net operating losses have not been
   recognized in these financial statements because the Company cannot be
   assured it is more likely than not it will utilize the net operating losses
   carried forward in future years. For the years ended March 31, 2005 and 2004,
   the valuation allowance established against the deferred tax assets increased
   by $138,000 and $287,000, respectively.


                                      F-14
<PAGE>



10. Income Taxes (continued)

   The components of the net deferred tax asset at March 31, 2005 and 2004 and
   the statutory tax rate, the effective tax rate and the elected amount of the
   valuation allowance are scheduled below:


                            March 31,         March 31,
                              2005              2004
-------------------------------------------------------
Net Operating Loss         $                $ 1,259,000
                           1,618,000

Statutory Tax Rate               35%                34%

Effective Tax Rate                 -                  -

Deferred Tax Asset           566,000            428,000

Valuation Allowance        (566,000)          (428,000)
-------------------------------------------------------

Net Deferred Tax Asset             -                  -
=======================================================

11.   Subsequent events
(a)   On November 15 2005, the Company issued 6,000,000 shares of its'common
      stock to the President for services rendered.
(b)   On September 28, 2005, the Company issued 35,000 units for total cash
      proceeds of $10,500. Each unit consists of one common share and one share
      purchase warrant. Each warrant may be exercised within two years of the
      date of issuance at a price of $0.50 per share.
(c)   On August 25, 2005, the Company changed its name to Quantum MRI, Inc. (d)
      During the period ended June 30, 2005, the Company closed a private
      placement
      offering for subscriptions of 485,000 units at a purchase price of $0.30
      per unit. Each unit consists of one common share and one share purchase
      warrant. Each warrant may be exercised within one year of the date of
      issuance at a price of $0.50 per share. On June 30, 2005, the Company
      issued 485,000 units for cash proceeds of $139,950, net of offering costs
      of $5,550.
(e)   On May 5, 2005, the Company completed a reverse stock split on the basis
      of one new share of common stock for every 150 old shares of common stock
      outstanding. All per share amounts have been retroactively restated to
      reflect the reverse stock split.
(f)   On May 5, 2005, the Company changed its name to Sharps Elimination
      Technologies, Inc. (g) On May 5, 2005, the Company increased its
      authorized capital stock to allow for the
      issue of 100,000 shares of preferred stock.


                                      F-15
<PAGE>

                                   SIGNATURES

      In accordance with Section 13 or 15(a) of the Exchange Act, the Registrant
has caused this Report to be signed on its behalf by the undersigned, thereunto
duly authorized on the 2nd day of December 2005.

                                  QUANTUM MRI, INC.


                                  By   /s/ Kelly Fielder
                                      -------------------------------
                                      Kelly Fielder, President and Chief
                                      Ffinancial and Accounting Officer


      Pursuant to the requirements of the Securities Act of l934, this Report
has been signed below by the following persons on behalf of the Registrant and
in the capacities and on the dates indicated.

                                     Title                    Date

/s/ Kelly Fielder
------------------------
Kelly Fielder                       Director             December 2, 2005