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, 2006
                                       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)

Indicate by check mark if the registrant is not required to file reports
pursuant to Section 13 or Section 15(d) of the Securities Exchange Act. [ ]

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 ______


<PAGE>

The Company's revenues during the year ended March 31, 2006, were $ 0.

The aggregate market value of the voting stock held by non-affiliates of the
Company, (7,799,889 shares) based upon the closing price of the Company's common
stock on June 30, 2006, was approximately $3,120,000.

Documents incorporated by reference:      None

As of June 30, 2006, the Company had 14,186,306 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.

                                        3
<PAGE>

The Company expects that it will require funding of approximately $3,000,000 to
establish its first three centers. As of June 30, 2006, 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.

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 one additional share of the Company's common stock at a price of
$0.50 per share at any time prior to September 30, 2006.

As of June 30, 2006, 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


                                        4
<PAGE>


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

      The Company's common stock is listed on the OTC Bulletin Board under the
symbol QTMR. The following table sets forth the high and low sale prices of the
Company's common stock during the periods presented as reported by the NASD. The
closing sale prices reflect inter-dealer prices without adjustment for retail
markups, markdowns or commissions and may not reflect actual transactions.

                                              Closing Sale Price
                                                 Common Stock
            Quarter Ended                    High           Low

            June 30, 2004                    $0.05 *        $0.02 *
            September 30, 2004               $0.02 *        $0.02 *
            December 31, 2004                $0.02 *        $0.01 *
            March 31, 2005                   $0.03 *        $0.01 *

            June 30, 2005                    $0.33          $0.33
            September 30, 2005               $0.33          $0.33
            December 31, 2005                $0.36          $0.33
            March 31, 2006                   $0.60          $0.33

* Prices have not been adjusted for 150-for-1 reverse split that was approved by
the Company's shareholders on May 5, 2005.

      As of June 30, 2006 there were approximately 65 record holders of the
Company's common stock.

      During the year ended March 31, 2006, neither the Company, any officer or
director of the Company, nor any principal shareholder of the Company, purchased
any shares of the Company's common stock either from the Company, from third
parties in a private transaction, or as a result of purchases in the open
market.

      Holders of common stock are entitled to receive dividends as may be
declared by the Board of Directors. The Company' Board of Directors is not
restricted from paying any dividends but is not obligated to declare a dividend.
No dividends have ever been declared and it is not anticipated that dividends
will ever be paid.

     The Company's Articles of Incorporation authorize its Board of Directors to
issue up to 100,000 shares of preferred stock. The provisions in the Articles of
Incorporation relating to the preferred stock allow the Company' directors to
issue preferred stock with multiple votes per share and dividend rights which
would have priority over any dividends paid with respect to the holders of the
Company' common stock. The issuance of preferred stock with these rights may
make the removal of management difficult even if the removal would be considered
beneficial to shareholders generally, and will have the effect of limiting
shareholder participation in certain transactions such as mergers or tender
offers if these transactions are not favored by the Company's management.

                                        5
<PAGE>

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

During the twelve months ended March 31, 2006, 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 one additional share of the Company's common stock at a price of
$0.50 per share at any time prior to September 30, 2006. As of June 30, 2006
none of the warrants had been exercised.

The Company's sources and (use) of funds during the two years ended March 31,
2006 follows:

                                                      Year Ended March 31,
                                                    2006            2005
                                                    ----            ----

      Cash used by operations                   $(220,456)       $(81,340)

      Loans from private investors                100,000              --

      Sale of convertible notes to principal
       shareholder (net of conversions)            45,780          82,275

      Sale of common stock                        150,450              --

      Other                                            --            (812)

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.



                                        6
<PAGE>

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

ITEM 8A.  CONTROLS AND PROCEDURES

Based on the evaluation of the Company's disclosure controls and procedures by
Kelly Fielder, the Company's President and Principal Financial Officer, as of
March 31, 2006 such officer has concluded that the Company's disclosure controls
and procedures were effective in ensuring that information required to be
disclosed by the Company in the reports that it files or submits under the
Securities and Exchange Act of 1934, as amended, is recorded, processed,
summarized and reported, within the time period specified by the Securities and
Exchange Commission's rules and forms.

There were no changes in the Company's internal controls or in other factors
during the year ended March 31, 2006 that could significantly affect these
controls subsequent to the date of their evaluation. No corrective actions with
regard to significant deficiencies and material weaknesses were required.

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

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

   Kelly Fielder      37     Chief Executive Officer, Treasurer and a Director
   Gary Rushin        50     Vice President of Finance


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.

Gary Rushin has been the Company's Vice President of Finance since March 1,
2006. Mr. Rushin has been Vice Chair of the Board of Directors (since 1998),
Adjunct Professor of Accounting and Finance (since 2002) and Visiting Professor
of Accounting (since 2003) of the University of Northern Virginia. Since 2001
Mr. Rushin has also been the President of Decision Analysis, LLC, a business
consulting firm.

The Company does not have a compensation committee. Gary Rushin serves as the
Company's Audit Committee. Mr. Rushin is a financial expert but is not
independent as that term is defined in Section 121(A) of the Listing Standards
of the American Stock Exchange.



                                        7
<PAGE>

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 two officers and one 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, 2004, 2005 and 2006.

                          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,   2006  $120,000    --        --  $2,160,000       --      --
President and    2005  $120,000    --        --  $  150,000       --      --
Chief Executive  2004  $120,000    --        --          --       --      --
Officer since
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, 2006:

         Name                       Shares              Value
         ----                       ------              -----

         Kelly Fielder            6,066,000         $3,275,640

 (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 other column 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.



                                        8
<PAGE>

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

   The Company has an employment agreement with Gary Rushin which provides that
Mr. Rushin will be paid a salary of $4,000 per month during the eight month
period ending September 30, 2006. Mr. Rushin is also entitled to receive options
to purchase 300,000 shares of the Company's common stock. As of June 30, 2006
the Company had not issued these options.

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, 2007, and the time which Mr.
Fielder plans to devote to the Company's business.

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

       Kelly Fielder                $120,000              90%

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.



                                        9
<PAGE>



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 granting, 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.

Summary
-------

The following presents certain information as of June 30, 2006, 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:



                                       10
<PAGE>

                             Incentive Stock Options
                             -----------------------

                      Shares                         Expiration Options Expired/
                      Subject    Exercise   Date of    Date of   Exercised as of
Option Holder        To Option     Price     Grant     Option        June 30,
-------------          --------- ---------- -------  ---------- ----------------
2006

                                      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        June 30,
-------------       ---------   --------  -------   ----------   ---------------
2006

                                      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 June 30, 2006. 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.

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

Kelly Fielder                          6,366,000                 44.9%
4750 Paton St.
Vancouver, B.C.
Canada  V6L 2J1
                                            -- (1)                 --
Gary Rushin
706 Clark Court, NE #202
Leesburg, VA 20176



                                       11
<PAGE>




Spectrum Meditech Inc.                  20,417 (2)                .01%
4750 Paton St.
Vancouver, B.C.
Canada  V6L 2J1

 Murray Atkins                      1,740,000 (3)                  12%
 Suite 101
 1111-11th Avenue S.W.
 Calgary, Alberta T2R 0G5

 Memphis Capital Corp.                5,000,000                    35%
 898 Regal Crescent
 North Vancouver, BC
 Canada V7K 2X8

All officers and
directors as a group                  ____________                 ___
 (2 persons)                          6,386,417 (1)                45%
                                      =============                ===


(1)  The Company has agreed to issue Mr. Ruskin an option to purchase 300,000
     shares of the Company's common stock. The exercise price and the expiration
     date of these options has not been determined.
(2)  Spectrum Meditech, Inc. is controlled by Kelly Fielder. (3) Includes
     870,000 shares which, as of June 30, 2006, would be issuable upon
     the conversion of promissory notes held by Mr. Atkins.

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, a principal shareholder of the Company. The amounts borrowed were
represented by notes which, at the option of Mr. Atkins, were convertible into
shares of the Company's common stock. During March and June 2004 Mr. Atkins
converted the notes into 64,950 shares of the Company's common stock. In
November 2005, the Company issued $292,275 of convertible notes to Murray Atkins
in exchange for common shares held by Mr. Atkins and cash in the amount of
$120,780. At Mr. Atkins' option, the notes are convertible into shares of the
Company's common stock equal in number to the amount determined by dividing each
$1.00 of note principal or accrued interest to be converted by an amount equal
to 90% of average closing bid price of Quantum's common stock for the 30 trading
days preceding the date of conversion. The notes bear interest at 5.5% per year
but all interest amounts have been waived by Mr. Atkins.


                                       12
<PAGE>

In January 2006, the Company entered into a Note Conversion Agreement with Mr.
Atkins. Under the terms of the Note Conversion Agreement, as amended, Mr. Atkins
agreed to convert a promissory note with a principal balance of $100,000 into
1,000,000 shares of the Company's common stock. Prior to September 30, 2006 Mr.
Atkins agreed to sell not more than 50,000 shares per week, and at a price of
not less than $0.40 per share, without the consent of the Company. All proceeds
received by Mr. Atkins from the sale of the shares will reduce the amounts owed
by the Company under the promissory notes. Any shares remaining at September 30,
2006 can be returned to the Company or retained by Mr. Atkins, at his option. If
shares are returned to the Company, a new promissory note will be issued to Mr.
Atkins for any balance remaining on the $100,000 note. If any shares are
retained by Mr. Atkins, the shares will be valued at 90% of the average closing
price of the Company's common stock for the 30 trading days preceding September
30, 2006. The value of the shares will then be applied against amounts owing
under any of the notes which remain unpaid at September 30, 2006. If the value
of the shares exceeds $100,000 plus the amounts payable under the remaining
unpaid notes, Mr. Atkins will return to the Company that number of shares
determined by dividing the excess value by the average closing price of the
Company's common stock for the 30 trading days preceding September 30, 2006.

In April 2006 Mr. Atkins agreed to convert promissory notes with a principal
balance of $185,780 into 1,280,000 shares of the Company's common stock, the
note bears interest at 5.5% per year and is due and payable on August 15, 2006.
The 1,280,000 shares were issued to eight persons in consideration for services
provided to the Company. Kelly Fielder, the Company's President, received
300,000 of these shares. In consideration for the conversion of the notes and
the transfer of the shares, the Company issued Mr. Atkins a new promissory note
in the principal amount of $185,780.

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

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

      On January 10, 2006 the Company issued 5,000,000 shares of its common
stock to Memphis Capital Corp. for consulting and financial services.

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


                                       13
<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, 2006 the Company did not file any
reports on Form 8-K.

ITEM 14.    PRINCIPAL ACCOUNTANT FEES AND SERVICES
--------------------------------------------------

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

Effective February 14, 2003, the Company dismissed Manning Elliot and hired
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.
("Schumacher & Associates") 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, 2005, and 2006 by Manning Elliott, Spicer Jeffries, and
Schumacher & Associates.

                                    2005          2006
                                    ----          ----

Audit Fees                       $14,000       $31,000
Audit-Related Fees                    --            --
Financial Information Systems         --            --
Design and Implementation Fees        --            --
Tax Fees                              --            --
All Other Fees                        --            --


                                       14
<PAGE>


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 were engaged by the Company to render
audit services, the engagements were approved by the Company's Directors.







                                       15
<PAGE>




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

March 31, 2006

                                                                           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' 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 Travelshorts.com, Inc.) as of March 31, 2006 and 2005 and the
related consolidated statements of operations, cash flows and stockholders'
deficit for the years then ended and accumulated from June 7, 1989 (Date of
Inception) to March 31, 2006. 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
audits provide 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, 2006 and 2005, and
the results of its operations and its cash flows for the years then ended and
accumulated from June 7, 1989 (Date of Inception) to March 31, 2006, in
conformity with accounting principles generally accepted in the United States.

The accompanying 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.

MANNING ELLIOTT LLP

CHARTERED ACCOUNTANTS

Vancouver, Canada

June 20, 2006

                                       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,
                                                             2006        2005
                                                               $           $

ASSETS

Current Assets

Cash                                                         75,897         123
--------------------------------------------------------------------------------

Total Current Assets                                         75,897         123

Property and Equipment (Note 3)                               3,405       5,283
--------------------------------------------------------------------------------

Total Assets                                                 79,302       5,406
================================================================================

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities

 Accounts payable                                           142,668     125,286
 Accrued liabilities                                              -      41,368
 Due to related parties (Note 5(b))                       1,067,703   1,244,288
 Loans payable (Note 6)                                     100,000           -
 Convertible notes payable,  less unamortized
  discount of $5,392 (Note 7)                               314,230      75,000
--------------------------------------------------------------------------------

Total Liabilities                                         1,624,601   1,485,942
--------------------------------------------------------------------------------


Commitments and Contingencies (Notes 1 and 9)
Subsequent Events (Note 11)

Stockholders' Deficit

Preferred Stock
Authorized: 100,000 shares, par value $0.001
Issued: Nil                                                       -           -

Common Stock
Authorized: 50,000,000 shares, par value $0.001
Issued: 12,691,391 and 286,256, respectively                 12,691         286

Additional Paid-in Capital                                5,544,528     946,665

Common Stock Subscribed                                     101,550           -

Deficit Accumulated During the Development Stage         (7,204,068) (2,427,487)
--------------------------------------------------------------------------------

Total Stockholders' Deficit                              (1,545,299) (1,480,536)
--------------------------------------------------------------------------------

Total Liabilities and Stockholders' Deficit                   79,302       5,406
================================================================================

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,
                                             2006        2006       2005
                                              $           $           $

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


Expenses

Consulting                               1,958,615   1,786,567       11,650
Donated rent (Note 5(c))                    73,005      25,596       23,860
Donated services                            28,070           -            -
General and administrative                 512,326     233,837       41,786
Impairment loss on intangible
 asset (Note 4)                            252,819           -            -
Imputed interest  (Notes 5(b) and 7)       258,783     120,227       64,749
Investor relations                          86,730           -            -
Management fees                          2,650,000   2,280,000      220,000
Product development                         92,402           -            -
Professional fees                          363,329      59,851       72,363
-----------------------------------------------------------------------------

Total Expenses                           6,276,079   4,506,078      434,408
-----------------------------------------------------------------------------

Other (income) expense

   Beneficial conversion feature of
    convertible notes                       40,503      40,503           -
   Loss on settlement of debt              230,000     230,000           -
-----------------------------------------------------------------------------
Net Loss                                (6,543,851) (4,776,581)   (434,408)
=============================================================================
Net Loss Per Share - Basic and Diluted                   (1.15)      (1.66)
=============================================================================
Weighted Average Shares Outstanding                  4,139,000     261,000
=============================================================================

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,
                                                2006        2006        2005
                                                  $           $           $

Operating Activities

Net loss                                     (6,543,851)  (4,776,581)  (434,408)

Adjustment to reconcile net loss to net
cash used in operating activities:
Beneficial conversion feature of
convertible notes                                40,503       40,503         -
Depreciation and amortization                    33,746        1,878     1,879
Donated services and rent                       101,075       25,596    23,860
Impairment loss on intangible asset             252,819            -         -
Imputed interest                                258,783      120,227    64,749
Loss on disposal of assets                        4,597            -         -
Loss on settlement of debt                      230,000      230,000         -
Stock issued pursuant to loan agreement         101,550      101,550         -
Stock-based compensation                      4,080,521    3,980,521   100,000

Changes in operating assets and liabilities:
 Due from related parties                       381,075       62,902   113,605
Accounts payable and accrued liabilities        159,602       (7,052)   48,975
-------------------------------------------------------------------------------

Net Cash Used in Operating Activities          (899,580)    (220,456)  (81,340)
-------------------------------------------------------------------------------
Investing Activities

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

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

   Proceeds from loan payable                   100,000      100,000         -
   Proceeds from convertible notes payable      433,305       45,780    82,275
   Bank overdraft                                     -            -      (812)
   Proceeds from issuance of common
    stock, net                                  461,775      150,450         -
-------------------------------------------------------------------------------

Net Cash Flows Provided By Financing
Activities                                      995,080      296,230    81,463
-------------------------------------------------------------------------------

Increase In Cash                                 75,897       75,774       123

Cash - Beginning of Period                            -          123         -
-------------------------------------------------------------------------------

Cash - End of Period                             75,897       75,897       123
===============================================================================

Non-cash Investing and Financing
Activities

Shares issued pursuant to loan agreement        101,550      101,550         -
Shares issuable on conversion of notes
 payable                                        392,275      100,000   292,275
Forgiveness of debt with settlement
 from shareholder                               239,487      239,487         -
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, 2006
(expressed in US dollars)


<TABLE>
<S>                                     <C>       <C>       <C>          <C>          <C>

                                                                        Deficit
                                                                      Accumulated
                                                         Additional   During 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
at $1.05 per share                     55,800         56    59,944            -      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)

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)
================================================================================================

</TABLE>

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

                                       F-5


<PAGE>


Sharps Elimination Technologies, 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, 2006
(expressed in US dollars)

<TABLE>
<S>                                     <C>       <C>       <C>        <C>         <C>            <C>

                                                                                 Deficit
                                                                                Accumulated
                                                         Additional   Common    During the
                                         Common Stock      Paid-in     Stock    Development
                                       Shares     Amount   Capital   Subscribed     Stage        Total

                                          #         $         $          $            $            $

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)

Shares returned to
treasury for
cancellation                           (50,000)     (50)        50          -            -            -

Sale of common stock
at $0.29 per share                     485,000      485    139,465          -            -      139,950

Sale of common stock
at $0.30 per share
net of issue costs of $5,550             35,000       35     10,465          -            -       10,500

Shares issued for
management services
at $0.36 per share                   6,000,000    6,000  2,154,000          -            -    2,160,000

Shares returned to
treasury for cancellation              (64,950)     (65)  (292,210)         -            -     (292,275)

Shares issued for
services at $0.35
per share                            5,000,000    5,000  1,745,000          -            -    1,750,000

Shares issued on
conversion of debt                   1,000,000    1,000    329,000          -            -      330,000

Shares issuable
pursuant to
investment agreements                        -        -          -    101,550            -      101,550

Beneficial conversion
feature                                      -        -     45,895          -            -       45,895

Donated capital                              -        -     25,596          -            -       25,596

Fair value of
warrants issued
pursuant to investment                       -        -     70,520          -            -       70,520

Gain on forgiveness
of debt                                      -        -    239,487          -            -      239,487

Imputed interest,
including $10,368
accrued in prior
periods reclassified
from accrued
liabilities                                  -        -    130,595          -            -      130,595

Net loss for the year                        -        -          -          -   (4,776,581)  (4,776,581)
---------------------------------------------------------------------------------------------------------

Balance - March 31, 2006            12,691,306   12,691  5,544,528    101,550   (7,204,068)  (1,545,299)
=========================================================================================================

</TABLE>

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

                                       F-6


<PAGE>


Quantum MRI, Inc.
(formerly Travelshorts.com, Inc.)
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2006
(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. and 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 intercompany
   balances and transactions have been eliminated on consolidation.

   At March 31, 2006, the Company had a working capital deficit of $1,548,704
   and accumulated losses of $7,204,068 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. These factors raise substantial doubt about the Company's ability
   to continue as a going concern. 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.


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 Corp. All significant intercompany
      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.


                                       F-7

<PAGE>
Quantum MRI, Inc.
(formerly Travelshorts.com, Inc.)
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2006
(Expressed in US dollars)



2. Significant Accounting Policies (continued)

(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, 2006 and 2005, 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.

(i)   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.

(j)   Stock-based Compensation

      Prior to January 1, 2006, the Company accounted for stock-based awards
      under the recognition and measurement provisions of Accounting Principles
      Board Opinion ("APB") No. 25, "Accounting for Stock Issued to Employees"
      using the intrinsic value method of accounting, under which compensation
      expense was only recognized if the exercise price of the Company's
      employee stock options was less than the market price of the underlying
      common stock on the date of grant. Effective January 1, 2006, the Company
      adopted the fair value recognition provisions of SFAS No. 123R "Share
      Based Payments", using the modified prospective transition method. The
      Company has not issued any stock options since its inception. Accordingly,
      there was no effect on the Company's reported loss from operations, cash
      flows or loss per share, as a result of adopting SFAS No. 123R.


                                       F-8
<PAGE>

Quantum MRI, Inc.
(formerly Travelshorts.com, Inc.)
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2006
(Expressed in US dollars)


2. Significant Accounting Policies (continued)

(k)   Financial Instruments

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

(l)   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 collectibility
      is reasonably assured.

(m) 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.

(n)   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, 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.

      The FASB has also issued SFAS No. 155 "Accounting for Certain Hybrid
      Financial Instruments" and SFAS No. 156 "Accounting for Servicing of
      Financial Assets", but they will not have any relationship to the
      operations of the Company. Therefore a description and its impact for each
      on the Company's operations and financial position have not been
      disclosed.


                                       F-9
<PAGE>
Quantum MRI, Inc.
(formerly Travelshorts.com, Inc.)
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2006
(Expressed in US dollars)


3.  Property and Equipment

<TABLE>
<S>                                  <C>        <C>          <C>          <C>

                                                           March 31,   March 31,
                                                             2006        2005
                                           Accumulated   Net Carrying  Net Carrying
                                    Cost   Depreciation      Value       Value
                                     $          $               $          $

   Office  furniture and computer
   hardware                         9,391      5,986          3,405       5,283
   -----------------------------------------------------------------------------------

</TABLE>


4. Intangible Assets


    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 ("the
    licence") 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 tradenames.


    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.

     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. On February 28, 2006, the Company and Resilient World
    Solutions ("Resilient") (formerly Spectrum Meditech Inc.) agreed to
    terminate the license and Technical Assistance Agreement, to forgive amounts
    owed to Resilient by the Company and to allow Resilient to retain the shares
    issued. The Company recognized a gain on settlement of debt of $239,487
    which has been recorded as additional paid-in capital.


5.    Related Party Transactions

     (a)  During the year ended March 31, 2006, management fees of $120,000
          (2005 - $120,000) were charged to operations pursuant to an executive
          services agreement with the President of the Company.

     (b)  As of March 31, 2006, the Company's President, and a company
          controlled by the President are owed $1,067,703 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, 2006, interest
          of $109,829 (2005 - $64,749) 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, 2006, the Company recognized a total
          of $25,596 (2005 - $23,860) for donated rent provided by the President
          of the Company.

     (d)  On November 16, 2005, the Company issued 6,000,000 shares of common
          stock with a fair value of $2,160,000 to the President of the Company
          for management services provided to the Company. The shares were
          valued at the closing price of the Company's common stock on the date
          of issue.

     (e)  On June 30, 2004, the Company issued 33,333 split-adjusted shares of
          common stock to the President of the Company for management services
          provided to the Company at a fair value of $100,000.


                                      F-10
<PAGE>

Quantum MRI, Inc.
(formerly Travelshorts.com, Inc.)
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2006
(Expressed in US dollars)

6.   Loans Payable

     (a)  On February 8, 2006, the Company entered into an unsecured investment
          agreement with an investor and received $25,000 as a loan repayable on
          April 10, 2006. Pursuant to the agreement, the Company will pay
          interest of 12% per annum and issue the investor 35,000 restricted
          shares of the Company's common stock and a warrant to purchase 35,000
          restricted shares of the Company's common stock at a price of $0.30
          per share until April 10, 2008. During the year ended March 31, 2006,
          the Company accrued interest of $419 and no warrants were exercised.
          The loan was not repaid on April 10, 2006, and remains outstanding.
          Refer to Note 8(b).

     (b)  On March 6, 2006, the Company entered into three unsecured investment
          agreements with investors to receive loans totalling $75,000 repayable
          on May 6, 2006. Pursuant to the agreements, the Company will pay
          interest of $15,000 and issue the investors 180,000 shares of the
          Company's common stock (issued subsequently) and warrants to purchase
          180,000 restricted shares of the Company's common stock at a price of
          $0.30 per share until May 6, 2007. During the year ended March 31,
          2006, the Company accrued interest of $2,049 and no warrants were
          exercised. The loans were not repaid on May 6, 2006, and remain
          outstanding. Refer to Note 8(a).


7.    Convertible Notes Payable

   On November 16, 2005, the Company entered into an Exchange Agreement with the
   holder of all of the Company's outstanding notes payable (the "Creditor").
   Under the terms of the agreement, the Creditor agreed to return for
   cancellation the 64,950 shares of common stock previously received on
   settlement of promissory notes in exchange for three new convertible notes in
   the aggregate principal amount of $292,275. The notes matured on December 17,
   2005 ($100,000), January 15, 2006 ($100,000) and March 15, 2006 ($92,275).
   The Creditor also agreed to cancel the prior outstanding promissory notes
   totalling $85,780 in exchange for a new convertible note for $85,780 that
   matures on June 15, 2006. The Company also issued a new convertible note for
   cash proceeds of $35,000 that matures on August 15, 2006. All notes bear
   interest at 5.5% per annum. The principal and accrued interest on the
   promissory notes may be converted into shares of the Company's common stock
   at the Conversion Price at the option of the holder. The Conversion Price is
   90% of average closing bid price of the Company's common stock for the 30
   trading days preceding the conversion. During the year ended March 31, 2006,
   the creditor agreed to waive interest on all outstanding notes. As at March
   31, 2006 interest of $10,398 was treated as imputed at 5.5% per annum and
   interest of $10,368 accrued in prior periods was reclassified from accrued
   liabilities to additional paid-in capital.

   In accordance with EITF 98-5 "Accounting for Convertible Securities with
   Beneficial Conversion Features or Contingently Adjustable Conversion Ratios",
   the Company recognized the value of the embedded beneficial conversion
   feature of $45,895 as additional paid-in capital as the debt was issued with
   an intrinsic value conversion feature. For the year ended March 31, 2006, the
   Company recognized $40,503 as interest expense which would have increased the
   carrying value of the promissory notes to $407,663, before the Note
   Conversion Agreement as discussed below.

    On January 26, 2006, the Company entered into a Note Conversion Agreement
    ("the Agreement") with the holder of the convertible promissory notes (the
    "Creditor"). Under the terms of the agreement, the Creditor agreed to
    convert the promissory note with a principal of $100,000 and a maturity date
    of December 17, 2005 into 1,000,000 shares of common stock. The Creditor
    will dispose of the shares in the market up to a maximum of 50,000 shares
    per week and, prior to March 31, 2006, at no less than $0.40 per share
    without the consent of the Company. All proceeds received by the Creditor to
    March 31, 2006 will reduce the amounts owed by the Company under the
    promissory notes. Any shares remaining at March 31, 2006 can be returned to
    the Company or retained by the Creditor. If shares are returned to the
    Company, a new promissory note will be issued for the balance of principal
    remaining after any reduction applied for proceeds from the sale of common
    stock. If shares are retained by the Creditor, the shares will be valued at
    90% of the average closing price of the Company's common stock for the 30
    trading days preceding March 31, 2006 (the "Calculated Value"). The
    Calculated Value will then be applied against amounts owing under any of the
    notes unpaid at March 31, 2006. If the Calculated Value of the shares
    exceeds $100,000 plus the aggregate amounts payable under the remaining
    unpaid notes (the "Remaining Value"), then the Creditor will return to the
    Company that number of shares determined by dividing the Remaining Value by
    the average closing price of the Company's common stock for the 30 trading
    days preceding March 31, 2006. On March 31, 2006, the Agreement was amended
    to extend the deadline from March 31, 2006, to September 30, 2006.

                                      F-11

<PAGE>
Quantum MRI, Inc.
(formerly Travelshorts.com, Inc.)
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2006
(Expressed in US dollars)


8.    Common Stock

(a)   On March 6, 2006, the Company agreed to issue 180,000 shares of the
      Company's common stock with a fair value of $90,000 and warrants to
      purchase 180,000 shares at $0.30 per share with a fair value of $63,294
      pursuant to three investment agreements. During the year ended March 31,
      2006, the total fair value of $153,294 was charged to interest expense
      with a corresponding credit of $63,294 to additional paid-in capital and
      $90,000 to common stock subscribed.

(b)   On February 8, 2006, the Company agreed to issue 35,000 shares of the
      Company's common stock with a fair value of $11,550 and a warrant to
      purchase 35,000 shares at $0.30 per share with a fair value of $7,226
      pursuant to an investment agreement. During the year ended March 31, 2006,
      the total fair value of $18,776 was charged to interest expense with a
      corresponding credit of $7,226 to additional paid-in capital and $11,550
      to common stock subscribed.

(c)   On January 26, 2006, the Company issued 1,000,000 shares with a fair value
      of $330,000 upon the conversion of $100,000 of convertible notes payable.
      During the year ended April 30, 2006, the Company recognized a loss on
      settlement of debt of $230,000. Refer to Note 7.

(d)   On January 10, 2006, the Company issued 5,000,000 shares with fair value
      of $1,750,000 for founders services provided to the Company. The shares
      were valued at the closing price of the Company's common stock on the date
      of issue.

(e)   On November 16, 2005, the creditor of the outstanding promissory notes
      returned for cancellation 64,950 shares of common stock in exchange for
      three new convertible notes in the aggregate principal amount of $292,275.
      Refer to Note 7.

(f)   On November 16, 2005, the Company issued 6,000,000 shares of common stock
      with a fair value of $2,160,000 to the President of the Company for
      services rendered. The shares were valued at the closing price of the
      Company's common stock on the date of issue.

(g)   On January 26, 2006, the Company agreed to issue 35,000 units at $0.30 per
      unit for 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.

(h)   On June 30, 2005, the Company issued 485,000 units at a price of $0.30 per
      unit for cash proceeds of $139,950, net of offering costs of $5,550. 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.

(i)   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.

(j)   On May 5, 2005, the Company increased its authorized capital stock to
      allow for the issue of 100,000 shares of preferred stock with a par value
      of $0.001.

(k)   In April 2005, the Company agreed to cancel 50,000 split-adjusted shares
      with a par value of $0.001 per share from its' treasury.

(l)   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.

(m)   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.

(n)   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.

(o)   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.

(p)   On April 9, 2004,  the Company  established  an  Incentive  Stock Option
      Plan,  a  Non-Qualified  Stock  Option Plan and a Stock Bonus Plan ("the
      Plans")  to issue  up to a total  of  66,667  split-adjusted  shares  to
      employees.  On  November  15,  2005,  the  Company  amended the Plans to
      provide for the  issuance of  2,000,000  shares of its' common stock for
      the Incentive Stock Option Plan,  2,000,000  shares of its' common stock
      for the  Non-Qualified  Stock Option Plan, and 6,000,000  shares of its'
      common stock for the Stock Bonus Plan.


                                      F-12
<PAGE>
Quantum MRI, Inc.
(formerly Travelshorts.com, Inc.)
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2006
(Expressed in US dollars)


8. Common Stock (continued)

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

                                                         Weighted
                                                         average
                                         Number of       exercise
                                        split-adjusted   price
                                          shares            $

   Balance, March 31, 2005                      -            -
   Issued                                 735,000         0.44
   Exercised                                    -            -
   Expired                                      -            -
                                        ----------------------

   Balance, March 31, 2006                735,000         0.44
                                        ======================

   At March 31, 2006, the following share purchase warrants were outstanding:

                                            Weighted average
                                                remaining
                                               contractual
      Number of Shares     Exercise Price      life (years)
   ------------------------------------------------------------

          520,000              $0.50              0.32
          215,000              $0.30              1.23


9.     Commitments and Contingencies

(a)    On March 1, 2006, the Company entered into an employment agreement with
       the Company's Chief Financial Officer. Under the terms of the employment
       agreement, the Company must pay $4,000 per month for an initial term of
       eight months, and grant options to acquire 300,000 shares of common
       stock. During the year ended March 31, 2006, $4,000 was charged to
       operations.

(b)    On November 1, 2005, the Company entered into an employment agreement
       with the Company's Chief Executive Officer. Under the terms of the
       employment agreement, the Company must pay $120,000 per annum for the
       period from April 1, 2006 to March 31, 2008. This employment agreement
       extends the terms of the previous employment agreement, which expires on
       March 31, 2006. For the year ended March 31, 2006, $120,000 was charged
       to operations.

(c)   In  September  2003, a plaintiff  commenced a civil  action  against the
       Company  in  the  Supreme  Court  of  British  Columbia,   Canada.  The
       plaintiff  alleges  that  the  Company  and/or  the  President  of  the
       Company  are  liable  for  a  loan  in  the  amount  of   approximately
       $250,000,  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 not 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 $6,247,000, 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, 2006 and 2005,
   the valuation allowance established against the deferred tax assets increased
   by $1,620,000 and $138,000, respectively.

                                      F-13

<PAGE>

Quantum MRI, Inc.
(formerly Travelshorts.com, Inc.)
(A Development Stage Company)
Notes to the Consolidated Financial Statements
March 31, 2006
(Expressed in US dollars)


10. Income Taxes (continued)

   The components of the net deferred tax asset at March 31, 2006 and 2005, and
   the statutory tax rate, the effective tax rate and the elected amount of the
   valuation allowance are presented below:

                            March 31,      March 31,
                              2006           2005
                                $              $

Net Operating Loss         6,247,000      1,618,000

Statutory Tax Rate                35%            35%

Effective Tax Rate                 -              -

Deferred Tax Asset         2,186,000        566,000

Valuation Allowance       (2,186,000)      (566,000)
------------------------------------------------------

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

11.   Subsequent Events

(a)   On April 7, 2006, the Company entered into a Note  Conversion  Agreement
      ("the  Agreement")  with the holder of the convertible  promissory notes
      (the "Creditor").  Under the terms of the Agreement, the Creditor agreed
      to convert  the  promissory  note with a  principal  of  $100,000  and a
      maturity date of January 15, 2006 and a note in the principal  amount of
      $85,780 with a maturity date of June 15, 2006 into  1,280,000  shares of
      common stock. The shares will be issued to eight  individuals  including
      300,000  shares to the  President  of the Company in  consideration  for
      services  provided to the Company.  In consideration for the transfer of
      the shares  described  above,  the Company  agreed to issue a promissory
      note in the amount of $185,780.

(b)   On  April  4,  2006,   the  Company   entered  into  a  Standby   Equity
      Distribution  Agreement ("the Agreement") with a venture capital company
      (the "Purchaser").  Under the terms of the Agreement, the Purchaser will
      purchase up to $5,000,000  of the  Company's  common stock over a period
      of 24  months  at  95% of  the  market  price  subsequent  to  effective
      registration  of the Company's  common stock.  The purchases  will be at
      the  discretion of the Company.  As an  implementation  fee, the Company
      will issue to the  Purchaser  $200,000  of common  stock or cash;  issue
      350,000 warrants  exercisable at $0.01 per share; and 1,500,000 warrants
      exercisable  at $0.25 per share  expiring in five years from the closing
      of the transaction.


                                      F-14



<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 12th day of July 2006.

                                QUANTUM MRI, INC.


                                  By  /s/ Kelly Fielder
                                      --------------------------------------
                                      Kelly Fielder, President, Chief Financial
                                      Officer and Principal 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             July 12, 2006