UNITED
      STATES SECURITIES AND EXCHANGE COMMISSION


Washington,
      D.C. 20549





FORM
      10-QSB





QUARTERLY
      REPORT UNDER SECTION 13 OR 15(d)


OF
      THE
      SECURITIES EXCHANGE ACT OF 1934


FOR
      THE
      QUARTERLY PERIOD ENDED JUNE 30, 2007





Commission
      File Number 000-03125





ADUROMED
      INDUSTRIES, INC.


(Exact
      Name of Small Business Issuer in Its Charter)





Delaware
            21-0661726(State
                or other Jurisdiction of
            (I.R.S.
                Employerincorporation
                or organization)
            Identification
                Number)




3
      Trowbridge Drive


Bethel,
      Connecticut 06801


(Address
      of Principal Executive offices)





(203)
      798-1080


(Issuer’s
      Telephone Number)





Check
      whether the issuer (1) filed all reports required to be filed by
      Section


13
      or
      15(d) of the Exchange Act during the past 12 months (or for such
      shorter


period
      that the registrant was required to file such reports), and (2) has
      been


subject
      to such filing requirements for the past 90 days.


x
      Yes   
o No





Indicate
      by check mark whether the registrant is a shell company (as defined
      in


Rule
      12b-2 of the Exchange Act). Yes oNo x





State
      the
      number of shares outstanding of each of the issuer's classes of
      common


equity
      as
      of the latest practicable date:  20,728,132 shares
      common stock (par value $0.0001 per share) outstanding as of August 10,
      2007.





Transitional
      Small Business Disclosure Format (Check one): Yes oNo x







TABLE
      OF
      CONTENTS





PagePART
                I--FINANCIAL INFORMATIONItem
                1: Financial Statements
            
            
            F1Item
                2: Management's Discussion and Analysis or Plan of
                Operation
            
            
            3Item
                3: Controls and Procedures
            
            
            7PART
                II--OTHER INFORMATIONItem
                1: Legal Proceedings
            
            
            8Item
                2: Unregistered Sales of Equity Securities and Use of
                Proceeds
            
            
            8Item
                3: Defaults Upon Senior Securities
            
            
            8Item
                4: Submission of Matters to a Vote of Security Holders
            
            
            8Item
                5: Other Information
            
            
            8Item
                6: Exhibits
            
            
            9Signatures
            
            
            10





2




**PART
      I--FINANCIAL INFORMATION**





**Item
      1. Financial Statements**





INDEX
      TO
      CONSOLIDATED FINANCIAL STATEMENTS





PAGEUNAUDITED
                CONDENSED CONSOLIDATED BALANCE SHEET
            
            
            F2UNAUDITED
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS
                ENDED
                JUNE 30, 2007 AND 2006
            
            
            F3UNAUDITED
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE SIX MONTHS
                ENDED
                JUNE 30, 2007 AND 2006
            
            
            F4UNAUDITED
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
            
            
            F5NOTES
                TO CONSOLIDATED FINANCIAL STATEMENTS
            
            
            F6





F-1


ADUROMED
        INDUSTRIES, INC.
 
 CONDENSED
        CONSOLIDATED BALANCE SHEET
 (Unaudited)
  June
                  30,2007ASSETSCurrent
                  assetsCash
              
              $
              1,130,260Accounts
                  receivable(net of $14,720 allowance)
              
              
              557,714Revenues
                  in excess of billings
              
              
              85,605Inventory
              
              
              770,305Prepaid
                  expenses
              
              
              204,990Total
                  current assets
              
              
              2,748,874Property,
                  plant and equipment, net
              
              
              399,068Long
                  term deposits
              
              
              18,488Total
                  assets
              
              $
              3,166,430LIABILITIES
                  AND STOCKHOLDERS' DEFICITCurrent
                  liabilitiesAccounts
                  payable and accrued liabilities
              
              $
              484,918Deferred
                  revenue
              
              
              102,510Dividends
                  payable
              
              
              654,013Accrued
                  liquidated damages
              
              
              602,000Billings
                  in excess of revenue
              
              
              565,576Short
                  Term secured notes payable
              
              
              1,275,000Current
                  portion of notes payable
              
              
              333,655Total
                  current liabilities
              
              
              4,017,672Notes
                  payable, less current portion
              
              
              60,092Total
                  liabilities
              
              
              4,077,764Stockholders'
                  deficitPreferred
                  stock:$.0001 par value; 40,000,000 shares authorized; 22,043,862 shares
                  issued
                  and outstanding
              
              
              2,204Common
                  stock:$.0001
                  par value;130,000,000 shares authorized; 20,683,257 shares issued
                  and
                  outstanding
              
              
              2,068Additional
                  paid-in capital
              
              
              7,707,325Accumulated
                  deficit
              
              
              (8,622,931
              )Total
                  stockholders' deficit
              
              
              (911,334
              )Total
                  liabilities and stockholders' deficit
              
              $
              3,166,430


See
        Notes
        to Consolidated Financial Statements
  F-2




ADUROMED
      INDUSTRIES, INC.





CONDENSED
      CONSOLIDATED STATEMENTS OF OPERATIONS


(Unaudited)


Three
                months endedJune
                30,2007
            
            2006RevenuesContract
                revenues earned
            
            $
            532,657
            
            $
            1,205,142Sales
                and service revenues
            
            
            228,858
            
            
            125,143Total
                revenues
            
            
            761,515
            
            
            1,330,285Cost
                of sales
            
            
            408,910
            
            
            1,072,532Gross
                profit
            
            
            352,605
            
            
            257,753Operating
                expensesSalaries
                and wages
            
            
            406,352
            
            
            417,770General
                and administrative expenses
            
            
            482,002
            
            
            704,076Depreciation
                expense
            
            
            23,382
            
            
            16,000Total
                operating expenses
            
            
            911,736
            
            
            1,137,846Loss
                from operations
            
            
            (559,131
            )
            
            (880,093
            )Other
                income and expensesInterest
                income
            
            
            4,840
            
            
            23,504Interest
                expense
            
            
            (5,988
            )
            
            (7,532
            )Total
                other income and expenses
            
            
            (1,148
            )
            
            15,972Net
                loss before income taxes
            
            
            (560,279
            )
            
            (864,121
            )Provision
                for income tax benefit
            
            
            -
            
            
            -Net
                loss
            
            $
            (560,279
            )
            $
            (864,121
            )Basic
                and diluted net loss per common share
            
            $
            (0.03
            )
            $
            (0.05
            )Weighted
                average common shares outstanding
            
            
            20,683,257
            
            
            20,683,257




See
        Notes
        to Consolidated Financial Statements
  F-3
 ADUROMED
          INDUSTRIES, INC.
 
 CONDENSED
          CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 Six
                    months endedJune
                    30,2007
                
                2006RevenuesContract
                    revenues earned
                
                $
                1,114,248
                
                $
                1,447,256Sales
                    and service revenues
                
                
                417,873
                
                
                223,755Total
                    revenues
                
                
                1,532,121
                
                
                1,671,011Cost
                    of sales
                
                
                921,863
                
                
                1,415,593Gross
                    profit
                
                
                610,258
                
                
                255,418Operating
                    expensesSalaries
                    and wages
                
                
                822,944
                
                
                803,422General
                    and administrative expenses
                
                
                1,050,880
                
                
                1,215,523Depreciation
                    expense
                
                
                46,582
                
                
                23,700Total
                    operating expenses
                
                
                1,920,406
                
                
                2,042,645Loss
                    from operations
                
                
                (1,310,148
                )
                
                (1,787,227
                )Other
                    income and expensesInterest
                    income
                
                
                13,709
                
                
                43,566Interest
                    expense
                
                
                (10,518
                )
                
                (39,226
                )Total
                    other income and expenses
                
                
                3,191
                
                
                4,340Net
                    loss before income taxes
                
                
                (1,306,957
                )
                
                (1,782,887
                )Provision
                    for income tax benefit
                
                
                -
                
                
                -Net
                    loss
                
                $
                (1,306,957
                )
                $
                (1,782,887
                )Basic
                    and diluted net loss per common share
                
                $
                (0.07
                )
                $
                (0.10
                )Weighted
                    average common shares outstanding
                
                
                20,683,257
                
                
                20,683,257
  See
          Notes
          to Consolidated Financial Statements
  F-4
  ADUROMED
        INDUSTRIES, INC.
 
 CONDENSED
        CONSOLIDATED STATEMENTS OF CASH FLOWS
 (Unaudited)
  Six
                  months endedJune
                  30,2007
              
              2006Cash
                  flows from operating activities:Net
                  loss
              
              $
              (1,306,957
              )
              $
              (1,782,887
              )Adjustments
                  to reconcile net loss tonet
                  cash used in operations:Warrants
                  and options issued for services
              
              
              167,999
              
              
              103,846Depreciation
                  expense
              
              
              46,582
              
              
              23,700Charge
                  to allowance for bad bebt
              
              
              (1,380
              )Changes
                  in operating assets and liabilities:Accounts
                  receivable
              
              
              (381,097
              )
              
              (290,103
              )Loans
                  receivable
              
              
              -
              
              
              3,029Revenues
                  in excess of billings
              
              
              72,610
              
              
              (206,591
              )Inventory
              
              
              (130,499
              )
              
              (187,274
              )Security
                  deposits
              
              
              
              
              
              13,124Prepaid
                  expenses
              
              
              (153,462
              )
              
              4,531Accounts
                  payable and accrued liabilities
              
              
              (786,285
              )
              
              514,152Deferred
                  revenue
              
              
              34,407
              
              
              (5,136
              )Billings
                  in excess of revenue
              
              
              199,512
              
              
              482,586Dividends
                  payable
              
              
              210,000
              
              
              -Net
                  cash used in operating activities
              
              
              (2,028,570
              )
              
              (1,327,023
              )Cash
                  flows from investing activities:Purchase
                  of fixed assets
              
              
              (10,429
              )
              
              (353,323
              )Net
                  cash used in investing activities
              
              
              (10,429
              )
              
              (353,323
              )Cash
                  flows from financing activities:Acquisition
                  of shell company
              
              
              -
              
              
              (600,000
              )Repayment
                  of convertible notes
              
              
              -
              
              
              (98,776
              )Issuance
                  of convertible notes
              
              
              1,275,000
              
              
              -Repayments
                  of notes payable
              
              
              (3,927
              )
              
              -Repayments
                  of notes payable to related parties
              
              
              5,850
              
              
              -Proceeds
                  from issuance of preferred stock
              
              
              -
              
              
              5,010,970Costs
                  of issuance of preferred stock
              
              
              -
              
              
              (498,827
              )Net
                  cash provided by financing activities
              
              
              1,276,923
              
              
              3,813,367Increase
                  in cash and cash equivalents
              
              
              (762,076
              )
              
              2,133,021Cash
                  and cash equivalents, beginning of period
              
              
              1,892,336
              
              
              407,058Cash
                  and cash equivalents, end of period
              
              $
              1,130,260
              
              $
              2,540,079Supplemental
                  disclosures of cash flow information:Cash
                  paid for interest
              
              $
              2,968
              
              $
              7,343Supplemental
                  disclosures of noncash investing and financing activities:Conversion
                  of note to stock
              
              $
              -
              
              $
              200,000Accrual
                  of preferred stock dividents
              
              $
              205,000
              
              $
              194,232





See
        Notes
        to Consolidated Financial Statements


F-5


ADUROMED
        INDUSTRIES INC
 
 NOTES
        TO
        CONSOLIDATED FINANCIAL STATEMENTS


1.  BASIS
      OF
      PRESENTATION





The
      condensed consolidated balance sheet of Aduromed Industries Inc., and
      subsidiaries (“Aduromed”, the “Company” ,“AII”) as of June 30, 2007, the
      condensed consolidated statements of operations for the three and six month
      periods ended June 30, 2007 and 2006, the condensed consolidated statement
      of
      stockholders’ equity for the six month period ended June 30, 2007, and the
      condensed consolidated statements of cash flows for the six month period ended
      June 30, 2007 and 2006 have been prepared by the Company without audit. In
      the
      opinion of management, the information contained herein reflects all adjustments
      necessary to make the presentation of the Company’s condensed financial
      position, results of operations and cash flows not misleading. All such
      adjustments are of a normal recurring nature.





The
      accompanying condensed consolidated financial statements do not contain all
      of
      the information and disclosures required by accounting principles generally
      accepted in the United States of America and should be read in conjunction
      with
      the consolidated financial statements and related notes included in the
      Company’s annual report on Form 10-KSB for the fiscal year ended December 31,
      2006, filed on March 31, 2007.





The
      accompanying consolidated financial statements have been prepared assuming
      that
      the Company will continue as a going concern, which contemplates the realization
      of assets and satisfaction of liabilities and commitments in the normal course
      of business. The Company has incurred substantial recurring losses, which raises
      substantial doubt about its ability to continue as a going concern. The
      consolidated financial statements do not include any adjustments that might
      result from the outcome of this uncertainty.





On
      June
      27, 2007 the Company entered into a secured loan arrangement with various
      investors for gross proceeds of $1,275,000. The notes evidencing the loan have
      an original issue discount of 10%, bear interest at 12% per annum and have
      a
      maturity of sixth months. These loans are secured by the assets of the Company
      and are guaranteed by the Company’s wholly-owned subsidiary, Aduromed
      Corporation. In connection with the loan, the investors will also receive five
      year warrants to purchase a total of 2,550,000 shares of the Company’s common
      stock at a price of $0.38 per share (“Loan Warrants”). In the event that the
      Company consummates a financing involving the issuance of the Company’s common
      stock or securities convertible into such common stock and accompanying warrants
      (“Financing Warrants”) with gross proceeds of at least $1,500,000, the exercise
      price and anti-dilution provisions of the Loan Warrants will be reset to match
      the terms of the Financing Warrants.





The
      net
      proceeds of the loan, estimated at $1,047,175 after discounts, placement fees
      and expenses, will be utilized for working capital and general corporate
      purposes. The Company has available cash and cash equivalents of approximately
      $1,130,260 at June 30, 2007 which it intends to utilize for working capital
      purposes and to continue developing its business. To supplement its cash
      resources, the Company has been pursuing a number of alternative financing
      arrangements with various investment entities. We are currently looking to
      secure additional working capital to provide the necessary funds for us to
      execute our business plan through various sources, including bank facilities,
      bridge loans and equity offerings. However, we continue to incur significant
      operating losses and the resultant reduction of our cash position. We cannot
      assure that we will be able to obtain additional funding, and the lack thereof
      would have a material adverse impact on our business. Moreover, any equity
      funding could be substantially dilutive to existing stockholders. The
      aforementioned factors raise substantial doubt about our ability to continue
      as
      a going concern.





2.  BUSINESS
      DESCRIPTION - ORGANIZATION





Effective
      January 30, 2007, the issuer changed its corporate name from General Devices,
      Inc. to Aduromed Industries, Inc.





On
      January 23, 2006, the Company merged (the “Merger”) with Aduromed Corporation, a
      Delaware corporation (“Aduromed”), whereby Aduromed became the wholly-owned
      subsidiary of the Company and the former holders of the equity in Aduromed
      became holders of equity in AII. Aduromed is the Company’s sole operating
      entity. Reference is sometimes made to the “Companies” when describing the
      business and operations of the combined entities. Otherwise the term “Company”
refers only to AII.




F-6


ADUROMED
        INDUSTRIES INC
 
 NOTES
        TO
        CONSOLIDATED FINANCIAL STATEMENTS


The
      Company designs, fabricates and installs systems to treat regulated medical
      waste on site. Its principal products are the Aduromed MedClean Ô series
      systems. AII through its subsidiary, provides MedClean Ô systems
      to hospitals and other medical facilities as efficient, safe, cost-effective
      and
      legally-compliant solutions as alternatives to incineration or off-site hauling
      of untreated medical waste and to other types of alternative treatment
      technologies and methodologies.





3.  SUMMARY
      OF SIGNIFICANT ACCOUNTING POLICIES





EARNINGS
      (LOSS) PER COMMON SHARE





The
      net
      earnings (loss) per common share are computed by dividing the net loss for
      the
      period by the weighted average number of shares outstanding for the period.
      Outstanding warrants and options for the period ending June 30, 2007 and 2006
      amounting to 43,703,139 and
      40,773,639 respectively were not included in the calculation for net loss per common share
      because it would be antidilutive.





Outstanding
      Preferred A and B class of stock nor the common stock equivalents associated
      with the conversion feature for the period ending June 30, 2007 and 2006
      amounting to 22,043,862 for both periods of both classes of Preferred stock
      were
      not included in the calculation for net loss per common share as it would be
      antidilutive.





The
      numerator and denominator used in the basic and diluted earnings (loss) per
      share of common stock computations are presented in the following
      table:


Six
                  months ended June 30,
              
              Three
                  months ended June 30,2007
              
              2006
              
              2007
              
              2006NUMERATOR
                  FOR BASIC AND DILUTED EPS (LPS)Net
                  loss per statement of operations
              
              $
              (1,306,957
              )
              $
              (1,782,887
              )
              $
              (560,279
              )
              $
              (864,121
              )Dividend
                  payable to preferred stockholders
              
              
              (210,000
              )
              
              (194,232
              )
              
              (105,000
              )
              
              (105,000
              )Net
                  loss to common stockholders
              
              $
              (1,516,957
              )
              $
              (1,977,119
              )
              $
              (665,279
              )
              $
              (969,121
              )DENOMINATOR
                  FOR BASIC AND DILUTED EPS (LPS)Weighted
                  average shares of common stock outstanding
              
              
              20,683,257
              
              
              20,683,257
              
              
              20,683,257
              
              
              20,683,257Basic
                  and diluted EPS (LPS)
              
              $
              (0.07
              )
              $
              (0.10
              )
              $
              (0.03
              )
              $
              (0.05
              )


USE
      OF
      ESTIMATES





The
      preparation of the accompanying financial statements, in conformity with
      generally accepted accounting principles, 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 revenue and expenses during the
      reporting periods. Actual results could differ from those
      estimates.





CASH
      AND
      CASH EQUIVALENTS





The
      Company considers all highly liquid debt instruments purchased with an original
      maturity of three months or less to be cash equivalents.





The
      Company maintains cash deposits with financial institutions, which from time
      to
      time may exceed Federally insured limits. The Company has not experienced any
      losses and believes it is not exposed to any significant credit risk from cash.
      At June 30, 2007, the Company has cash balances on deposit
      in one account with a financial institution in excess of the Federally insured
      limits by a total of approximately $900,000.




F-7




ADUROMED
      INDUSTRIES, INC.





NOTES
      TO
      CONSOLIDATED FINANCIAL STATEMENTS





CONTROL
      BY PRINCIPAL STOCKHOLDERS





The
      directors, executive officers and their affiliates or related parties, own
      beneficially and in the aggregate, the majority of the voting power of the
      outstanding shares of the common stock of the Company. Accordingly, the
      directors, executive officers and their affiliates, if they voted their shares
      uniformly, would
      have the ability to control the approval of most corporate actions, including
      increasing the authorized capital stock of the Company and the dissolution,
      merger or sale of the Company's assets.





DEPENDENCE
      ON PRINCIPAL CUSTOMER





One
      principal customer, Aramark, represents a significant portion of our revenues.
      For the six months ended June 30, 2007, we recognized approximately $424,974
      or
      28% of total revenue in revenue from Aramark. The amount was immaterial in
      the
      same period last year. The loss of our principal customer would have a
      significant adverse impact on our business.





ACCOUNTS
      RECEIVABLE





The
      Company maintains an accounts receivable ledger to track amounts due from
      individual customers. The Company continuously monitors the creditworthiness
      of
      its customers and has established an allowance for amounts that may be
      uncollectible in the future based on current economic conditions, historical
      payments and specific customer related collection issues. The allowance for
      bad
      debts was $14,720 as of June 30, 2007.





PROPERTY,
      PLANT AND EQUIPMENT





The
      Company has property, plant and equipment that consist of automobiles, computers
      and related accessories, and office furniture. The depreciation is calculated
      using the straight line method over the life of the property. All property
      has a
      useful life of 3 to 10 years. The following table summarizes these assets as
      of
      June 30, 2007.


June
                  30,2007Vehicles
              
              $
              41,338Office
                  Furniture
              
              
              180,228Computers
                  and Accessories
              
              
              180,233Leasehold
                  Improvements
              
              
              117,996$
              519,795Accumulated
                  Depreciation
              
              
              120,727$
              399,068
  F-8
 ADUROMED
            INDUSTRIES, INC.
 
 NOTES
            TO
            CONSOLIDATED FINANCIAL STATEMENTS





INVENTORY





The
      Company maintains an inventory, which consists primarily of component parts,
      spare parts and disposable goods. The inventory, using the average cost method,
      was $934,494 as of June 30, 2007 and is stated at the lower of cost or market.
      The following table summarizes these assets:





**June
                30, 2007****Component
                & spare parts**
            
            $
            727,175**Consumables**
            
            
            23,832**Advance
                payments**
            
            
            19,298**Total
                Inventory**
            
            $
            770,305




REVENUE
      RECOGNITION





The
      Company recognizes revenues from fixed-price and modified fixed-price
      construction type contracts on the percentage-of-completion method, measured
      by
      the percentage of cost incurred to date to estimated total cost for each
      contract. That method is used because management considers total cost to be
      the
      best available measure of progress on the contracts. Because of inherent
      uncertainties in estimating costs, it is at least reasonably possible that
      the
      estimates used will change within the near term. The Company typically bills
      25%
      of the contract at signing, 50% upon delivery of components, and the final
      25%
      upon completion of installation and start-up.





Contract
      costs include all direct material and labor costs and those indirect costs
      related to contract performance. Selling, general and administrative costs
      are
      charged to expense as incurred. Provisions for estimated losses on uncompleted
      contracts are made in the period in which such losses are determined. Changes
      in
      job performance, job conditions, and estimated profitability may result in
      revisions to costs and income, which are recognized in the period in which
      the
      revisions are determined. Changes in estimated job profitability resulting
      from
      job performance, job conditions, contract penalty provisions, claims, change
      orders, and settlements, are accounted for as changes in estimates in the
      current period.





The
      Company provides a one year warranty on the systems it installs. The Company
      also obtains a one year warranty on the system components from the component
      manufacturer, thereby mitigating potential warranty costs. Accordingly, the
      Company has accrued no reserve for warranty. After the warranty term expires
      the
      Company offers a maintenance agreement of one or more years to the customer.
      The
      Customer is billed for, and pays for the maintenance agreement in advance.
      Revenues from such maintenance agreements are recognized ratably over the lives
      of the maintenance agreements, with the excess of the amount collected over
      the
      amount recognized as deferred revenue. At June 30, 2007 the Company had $102,510
      in deferred revenue from maintenance agreements.





Revenues
      from the sale of accessories, repairs and replacement parts are recognized
      when
      the goods are shipped to the customer in accordance with a valid order
      agreement. The order agreement specifies delivery terms and pricing, and is
      considered to reasonably assure collection from the customer.





F-9




ADUROMED
      INDUSTRIES, INC.





NOTES
      TO
      CONSOLIDATED FINANCIAL STATEMENTS




4.  CONTRACTS
      IN PROGRESS





The
      Company entered into construction type contracts to furnish and install its
      systems in hospitals. There were four outstanding contracts at June 30, 2007.
      The following table summarizes these outstanding contracts:


ContractAmount
              
              Revenue
                    Recognized
              
              Amounts
                    Billed
              
              Revenues
                    in
                  excess
                    of Billings
              
              Billings
                    in excess
                  of
                    RevenuesOutstanding
                contracts at June 30, 2007$
              1,327,930
              
              $
              654,191
              
              $
              995,948
              
              $
              -
              
              $
              341,757$
              483,117
              
              $
              206,385
              
              $
              120,780
              
              $
              85,605
              
              $
              -$
              586,414
              
              $
              536,414
              
              $
              586,414
              
              $
              -
              
              $
              50,000$
              430,790
              
              $
              256,971
              
              $
              430,790
              
              $
              -
              
              $
              173,819$
              85,605
              
              $
              565,576





5.  COMMON
      STOCK





Effective
      April 16, 2007, the number of authorized Common Stock of the Company, par value
      $0.0001, was increased from 100,000,000 to 130,000,000. A Certificate of
      Amendment to the Company’s Certificate of Incorporation evidencing such increase
      was filed with the Secretary of State of the State Delaware on April 16,
      2007




F-10


**Item
      2. Management's Discussion and Analysis or Plan of
      Operation**





**Forward
      Looking Statements**





The
      Company is including the following cautionary statement in this Interim Report
      on Form 10-QSB for any forward-looking statements made by, or on behalf of,
      the
      Company including its wholly-owned subsidiary Aduromed Corporation.
      Forward-looking statements include statements concerning plans, objectives,
      goals, strategies, future events or performance and underlying assumptions
      and
      other statements which are other than statements of historical facts. Certain
      statements contained herein are forward-looking statements and accordingly
      involve risks and uncertainties which could cause actual results or outcomes
      to
      differ materially from those expressed in the forward-looking statements. Our
      expectations, beliefs and projections are expressed in good faith and are
      believed by us to have a reasonable basis, including without limitation,
      management’s examination of historical operating trends, data contained in our
      records and other data available from third parties, but there can be no
      assurance that management’s expectation, beliefs or projections will result or
      be achieved or accomplished. In addition to other factors and matters discussed
      elsewhere herein, the following are important factors that, in our view, could
      cause actual results to differ materially from those discussed in the
      forward-looking statements: technological advances by our competitors, changes
      in health care reform, including reimbursement programs, changes to regulatory
      requirements relating to environmental approvals for the treatment of infectious
      medical waste, capital needs to fund any delays or extensions of development
      programs, delays in the manufacture of new and existing products by us or third
      party contractors, market acceptance of our products, the loss of any key
      employees, delays in obtaining federal, state or local regulatory clearance
      for
      new installations and operations, changes in governmental regulations,
      availability of capital on terms satisfactory to us and continuing good
      relations with Aramark Corporation. We are also subject to numerous Risk Factors
      relating to manufacturing, regulatory, financial resources and personnel as
      described in our Annual Report on Form 10-KSB. We disclaim any obligation to
      update any forward-looking statements to reflect events or circumstances after
      the date hereof.





**Results
      of Operations**





**Three
      Months Ended June 30, 2007 Compared to Three Months Ended June 30, 2006**





*Net
      Revenue*





Total
      revenue for the three months ended June 30, 2007 was $761,515 compared with
      $1,330,285 for the same three month period in 2006. Of the revenue decrease,
      $672,485 was attributable to a decrease of revenues derived from sales of our
      MedClean system partially offset by a $103,715 increase for the sale of
      consumables, component parts and service contracts.





Revenues
      from our MedClean product for the three months ended June 30, 2007 were $532,657
      and $1,275,142 in the same three month period in 2006. The decreased revenue
      was
      attributable to our inability to close new contracts within the quarter and
      the
      postponement at the customer’s request of one contract in backlog to the fourth
      quarter of this year.





Revenues
      derived from the sale of consumables, component parts and service contracts
      increased by $103,715 or 83% to $228,858 from $125,143 in the same three month
      period of 2006. The revenue was attributable to increased orders for consumable
      products and service contracts from hospitals that have previously purchased
      our
      MedClean system.




*Gross
      Profit*




The
      gross
      profit for the three months ended June 30, 2007 was $352,605 (46.3% of total
      revenue) compared with a gross profit of $257,753 (19.3% of total revenue)
      for
      the same three month period of 2006, an increase of $94,852. Gross profit was
      favorably impacted by improved operating and procurement efficiencies initiated
      in the second half of 2006.




The
      components of costs of revenues for products include direct materials, shipping
      and rigging costs and contract labor primarily used to install, repair and
      maintain our equipment.




3




*Operating
      Expenses*




Total
      operating expenses for the three month period ended June 30, 2007 was $911,736
      compared with $1,137,846 for the same three month period in 2006, a decrease
      of
      $226,110 or 19.9%. The decrease are attributable to the elimination of
      expenses amounting to $174,933 associated with the equity financing during
      2006
      and a $39,838 reduction on commissions paid. All other operating expenses
      decreased $11,339 net.




*Interest
      (Income) Expense*




Interest
      income for the three months ended June 30, 2007 was $4,840 compared with $23,504
      of interest income in the same three month period of 2006 on reduced cash
      balances available for investment.




The
      Company invests its excess cash in a money market account. Interest expense
      for
      the current quarter was $5,988 compared with $7,532 in the same three month
      period of 2006.




*Net
      loss*




Net
      loss
      for the three months ended June 30, 2007 was $(560,279) compared to a net loss
      for the same three month period in 2006 of $(864121).




*Net
      Loss Attributable to Common Stockholders*




Net
      loss
      attributable to common stockholders for this period of 2007 was $(665,279)
      or
      $(0.03) cents per share (basic and diluted), compared to a net loss of
      $(969,121) or $(0.05) cents per share (basic and diluted) for the same period
      in
      2006.




During
      the quarter, the Company accrued $105,000 in dividends with an interest rate
      of
      6% on $7,000,000, the total value received for both series A and B preferred
      stock.




**Six
      Months Ended June 30, 2007 Compared to Six Months Ended June 30, 2006**




*Net
      Revenue*





Total
      revenue for the six months ended June 30, 2007 was $1,532,121 compared with
      $1,671,011 for the same six month period of 2006. Of the revenue decrease,
      $333,008 was attributable to a decrease of revenues derived from sales of our
      MedClean system partially offset by a $194,118 increase for the sale of
      consumables, component parts and service contracts. Contract backlog as of
      June
      30, 2007 was $1,279,167.





Revenues
      from our MedClean product for the six months ended June 30, 2007 were $1,114,248
      and $1,447,256 in the same six month period of 2006. The decreased revenue
      was
      attributable to our inability in the second quarter to close new contracts
      and
      the postponement, at the customer’s request, of one contract in backlog to the
      fourth quarter of this year.





Revenues
      derived from the sale of consumables, component parts and service contracts
      increased by $194,118 or 86.7% to $417,873 from $223,755 in the same six month
      period of 2006. The revenue was attributable to orders for consumable products
      and service contracts from an increased install base of hospitals that have
      previously purchased our MedClean system.




Orders
      for the MedClean system are contracted by purchase order and are billed in
      3
      increments. Typically, we bill our customers for 25% of the contact value at
      signing, 50% when the equipment is shipped to the customer and 25% upon
      completion of installation and start-up. Consumables and component parts are
      billed when shipped and service contracts are invoiced at the start of the
      service period and revenue is pro-rated over the life of the
      contract.




4




*Gross
      Profit*




The
      gross
      profit for the six months ended June 30, 2007 was $610,258 (39.8% of total
      revenue) compared with a gross profit of $255,418 (18.0% of total revenue )
      for
      the same six month period of 2006, an increase of $354,840. Gross profit was
      favorably impacted by improved operating and procurement efficiencies initiated
      in the second half of 2006.




The
      components of costs of revenues for products include direct materials, shipping
      and rigging costs and contract labor primarily used to install, repair and
      maintain our equipment.




*Operating
      Expenses*




Total
      operating expenses for the six month period ended June 30, 2007 was $1,920,406
      compared with $2,042,645 for the same six month period of 2006, a decrease
      of
      $122,239 or 16.7%. The decrease are attributable to the elimination of
      expenses amounting to $174,933 associated with the equity financing during
      2006
      offset by increased depreciation expense of $22,882 on increased capital
      spending in the previous year and a $19,522 increase in salaries and wages.
      All
      other operating expenses decreased $10,290 net.




*Interest
      (Income) Expense*




Interest
      income for the six months ended June 30, 2007 was $13,709 compared with $43,566
      of interest income in the same six month period of 2006 on reduced cash balances
      available for investment. The Company invests its excess cash in a money market
      account. As of June 30, 2007 the interest rate was 2.97%.




Interest
      expense for the current quarter was $10,518 compared with $39,226 in the same
      six month period of 2006.




*Net
      loss*




Net
      loss
      for the six months ended June 30, 2007 was $(1,306,957) compared to a net loss
      for the same six month period in 2006 of $(1,782,887).




*Net
      Loss Attributable to Common Stockholders*




Net
      loss
      attributable to common stockholders for this period of 2007 was $(1,516,957)
      or
      $(0.07) cents per share (basic and diluted), compared to a net loss of
      $(1,977,119) or $(0.10) cents per share (basic and diluted) for the same period
      in 2006.




During
      the six months ended June 30, 2007 , the Company accrued $210,000 in dividends
      with an interest rate of 6% on $7,000,000, the total value received for both
      series A and B preferred stock.




5




Financial
      Condition





*Liquidity
      and Capital Resources*





The
      Company’s cash on hand and working capital as of June 30, 2007 are as
      follows:




June
                30, 2007Cash
                on hand
            
            $
            1,130,260Working
                Capital
            
            $
            (1,268,798
            )





To
      date,
      the Company purchased $10,430 in fixed assets. The Company anticipates
      purchasing approximately $50,000 in additional fixed assets in 2007.





Net
      cash
      used in operating activities totaled $1,306,957 for the six months ended June
      30, 2007.





Our
      accounts receivable balance may have dramatic swings from one period to
      another depending upon the timing and the amount of milestone billings
      included in the balance at the end of any accounting period. There are
      three milestone billings representing a percentage of the contract value
      for each installment and our payment terms are ``upon receipt''. Receivable
      balances are typically paid within 15 days of the invoice date. Billings
      for maintenance contracts and consumables are due within 45 days and are
      more numerous but much smaller in value than milestone billings. We review
      our outstanding receivable balances on a regular basis to ensure that the
      allowance for bad debt is adequate.   Due to the varying nature in the
      timing and amounts of the receivable balances as noted above, the change in
      the allowance for doubtful account will not necessarily correlate with the
      increase or decrease in the accounts receivable balance. The accounts receivable
      balance as of June 30,2007 was $557,714 net of an allowance of $14,720.





Our
      inventory balance may have dramatic swings from one period to another
      depending upon the expected installation date of our MedClean systems and our
      accounts payable balances can have similar swings depending on payment
      terms and any volume purchases or discounts we may take advantage of from
      time to time. During the six months ended June 30, 2007, the Company increased
      its inventory on hand by $130,499 to $770,305 in anticipation of new
      business expected in the second half of 2007. The accounts payable balance
      as of June 30, 2007 was $484,918.





On
      June
      27, 2007 the Company entered into a secured loan arrangement with various
      investors for gross proceeds of $1,275,000. The notes evidencing the loan have
      an original issue discount of 10%, bear interest at 12% per annum and have
      a
      maturity of sixth months. These loans are secured by the assets of the Company
      and are guaranteed by the Company’s wholly-owned subsidiary, Aduromed
      Corporation. In connection with the loan, the investors will also receive five
      year warrants to purchase a total of 2,550,000 shares of the Company’s common
      stock at a price of $0.38 per share (“Loan Warrants”). In the event that the
      Company consummates a financing involving the issuance of the Company’s common
      stock or securities convertible into such common stock and accompanying warrants
      (“Financing Warrants”) with gross proceeds of at least $1,500,000, the exercise
      price and anti-dilution provisions of the Loan Warrants will be reset to match
      the terms of the Financing Warrants.





The
      net
      proceeds of the loan, estimated at $1,047,175 after discounts, placement fees
      and expenses, will be utilized for working capital and general corporate
      purposes. The Company has available cash and cash equivalents of approximately
      $1,130,260 at June 30, 2007 which it intends to utilize for working capital
      purposes and to continue developing its business. To supplement its cash
      resources, the Company has been pursuing a number of alternative financing
      arrangements with various investment entities. We are currently looking to
      secure additional working capital to provide the necessary funds for us to
      execute our business plan through various sources, including bank facilities,
      bridge loans and equity offerings. However, we continue to incur significant
      operating losses and the resultant reduction of our cash position. We cannot
      assure that we will be able to obtain additional funding, and the lack thereof
      would have a material adverse impact on our business. Moreover, any equity
      funding could be substantially dilutive to existing stockholders. The
      aforementioned factors raise substantial doubt about our ability to continue
      as
      a going concern.




6





AII
      has
      an obligation to pay dividends on the value of its preferred stock at a rate
      of
      6%. To date we have accrued $654,013 in dividends payable.





AII
      has
      accrued $602,000 in liquated damages payable to its Preferred stockholders.





The
      Company with the consent of its Preferred stockholders can pay these obligations
      in kind with common stock based upon certain formulas contained in the
      stockholders purchase agreement.




**Controls
      and Procedures**





As
      of the
      three month period ended June 30, 2007 covered by this report, the Company
      carried out, under the supervision and with the participation of the Company's
      management, including its Chief Executive Officer and Chief Financial Officer,
      an evaluation of the effectiveness of the design and operation of the Company's
      disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e)
      under the Securities Exchange Act of 1934). Based upon and as of the date of
      that evaluation, the Chief Executive Officer and Chief Financial Officer
      concluded that the design and operation of these disclosure controls and
      procedures are effective.




7




**PART
      II--OTHER INFORMATION**





**Item
      1: Legal Proceedings** :





The
      Company has no pending legal proceedings. From time to time, it may be involved
      in various claims, lawsuits or disputes with third parties, and actions
      involving allegations of breach of contract incidental to the normal business
      operations of Aduromed’s business.





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





As
      previously reported in a Current Report on Form 8-K filed July 2, 2007,
      effective June 27, 2007 the Company entered into a secured loan arrangement
      with
      various investors for gross proceeds of $1,275,000. The notes evidencing the
      loan have an original issue discount of 10%, bear interest at 12% per annum
      and
      have a maturity of sixth months. These loans are secured by the assets of the
      Company and are guaranteed by the Company’s wholly-owned subsidiary, Aduromed
      Corporation. In connection with the loan the investors will also receive five
      year warrants to purchase a total of 2,550,000 shares of the Company’s common
      stock at a price of $0.38 per share (“Loan Warrants”). In the event that the
      Company consummates a financing involving the issuance of the Company’s common
      stock or securities convertible into such common stock and accompanying warrants
      (“Financing Warrants”) with gross proceeds of at least $1,500,000, the exercise
      price and anti-dilution provisions of the Loan Warrants will be reset to match
      the terms of the Financing Warrants.





The
      net
      proceeds of the loan, estimated at $1,047,175 after discounts, placement fees
      and expenses, will be utilized for working capital and general corporate
      purposes.




We
      had
      retained Carter Securities, LLC (“Carter”) to serve as our placement agents for
      the loan. For its services, Carter received a placement fee of $80,325, warrants
      to purchase 229,500 shares of Company common stock at an exercise price of
      $0.38
      per share exercisable for five years (“Placement Agent Warrants”), and subject
      to the same reset terms as the Loan Warrants. The Company is obligated to file
      a
      registration statement with the Securities and Exchange Commission with respect
      to the common stock shares issuable pursuant to the Loan Warrants and the
      Placement Agent Warrants.




The
      offer
      and sale of the securities was claimed exempt from the registration provisions
      of the Securities Act by reason of Section 4(2) thereof and Regulation D
      thereunder. Management made its determination of the availability of such
      exemption based upon the facts and circumstances surrounding the transaction,
      including the representations and warranties made by the investors and the
      fact
      that restrictive legends were placed on the notes and the warrants.





**Item
      3. Defaults Upon Senior Securities.**





There
      has
      been no default in the payment of principal, interest, sinking or purchase
      fund
      installment, or any other material default not cured with in 30 days, with
      respect to any indebtedness of the Company exceeding 5 percent of its total
      assets.





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





****  No
      other
      matters have been submitted to security holders of the Company during the
      quarterly period covered by this report. ****  ****




**Item
      5: Other Information**





None





8







**Item
      6. Exhibits**





NUMBER
            
            DESCRIPTION
                OF EXHIBIT4.1
            
            Form
                of Series A Warrant (incorporated by reference to Exhibit 4.1 to
                Registrant’s Form 10-KSB, filed April 21, 2006).4.2
            
            Form
                of Series B Warrant (incorporated by reference to Exhibit 4.2 to
                Registrant’s Form 10-KSB, filed April 21, 2006).4.3
            
            Certificate
                of Designations of Series A Preferred Stock (incorporated by reference
                to
                Exhibit 4.4 to Registrant’s Form 10-KSB, filed April 21,
                2006).4.4
            
            Certificate
                of Designations of Series B Preferred Stock (incorporated by reference
                to
                Exhibit 4.5 to Registrant’s Form 10-KSB, filed April 21,
                2006).4.5
            
            Loan
                and Security Agreement, dated as of June 27, 2007, by and among Aduromed
                Industries, Inc., Aduromed Corporation and the investors named on
                the
                signature pages thereto(incorporated
                by reference to Exhibit 4.01 to Registrant’s Current Report on Form 8-K,
                filed July 2, 2007).4.6
            
            Form
                of Secured Promissory Note(incorporated
                by reference to Exhibit 4.02 to Registrant’s Current Report on Form 8-K,
                filed July 2, 2007).4.7
            
            Form
                of Common Stock Purchase Warrant(incorporated by reference to Exhibit 4.03 to Registrant’s Current Report
                on Form 8-K, filed July 2, 2007).4.8
            
            Subsidiary
                Guarantee, dated as of June 27, 2007, from Aduromed Corporation in
                favor
                of the investors named on the signature pages of the Loan and Security
                Agreement(incorporated
                by reference to Exhibit 4.04 to Registrant’s Current Report on Form 8-K,
                filed July 2, 2007).31.1*
            
            Certification
              by the
              Principal Executive Officer of Registrant pursuant to Section 302 of
              the
              Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule
              15d-14(a)).31.2*
            
            Certification
              by the
              Principal Financial Officer of Registrant pursuant to Section 302 of
              the
              Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule
              15d-14(a)).32.1*
            
            Certification
              by the
              Chief Executive Officer pursuant to 18 U.S.C. 1350 as adopted pursuant
              to
              Section 906 of the Sarbanes-Oxley Act of 2002.32.2*
            
            Certification
              by the
              Chief Financial Officer pursuant to 18 U.S.C. 1350 as adopted pursuant
              to
              Section 906 of the Sarbanes-Oxley Act of
              2002.





*
      Filed
      herein.





9




SIGNATURES





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




Registrant
 
 ADUROMED
        INDUSTRIES, INC.


Date:
              August 14,
              2007
            
            
            Date:
              August 14,
              2007By:  /s/
              Damien R. Tanaka
            
            
            By:  /s/
              Kevin T. DunphyDamien
                R. Tanaka,
              Chairman
                of the Board, President
              and
                Chief Executive Officer
              (Principal
                Executive Officer)
            
            
            Kevin
                T. Dunphy
              Treasurer
                and
              and
                Chief Financial Officer
              (Principal
                Financial and Accounting
                Officer)




10