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 SEPTEMBER 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 o No x





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


equity
      as
      of the latest practicable date. 21,515,306 shares
      common stock (par value $0.0001 per share) outstanding as of November 10,
      2007.




Transitional
      Small Business Disclosure Format (Check one): Yes o No 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
                SEPTEMBER 30, 2007 AND 2006
            
            F3UNAUDITED
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE NINE MONTHS
                ENDED
                SEPTEMBER 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)





September
                30,2007ASSETSCurrent
                assetsCash
            
            $
            935,549Accounts
                receivable(net of $11,418 allowance)
            
            
            200,454Revenues
                in excess of billings
            
            
            88,215Inventory
            
            
            798,182Prepaid
                expenses
            
            
            57,020Total
                current assets
            
            
            2,079,420Property,
                plant and equipment, net
            
            
            371,308Long
                term deposits
            
            
            18,488Total
                assets
            
            $
            2,469,216LIABILITIES
                AND STOCKHOLDERS' DEFICITCurrent
                liabilitiesAccounts
                payable and accrued liabilities
            
            $
            543,894Deferred
                revenue
            
            
            208,932Dividends
                payable
            
            
            759,013Accrued
                liquidated damages
            
            
            602,000Billings
                in excess of revenue
            
            
            722,229Short
                Term secured notes payable
            
            
            1,147,500Current
                portion of notes payable
            
            
            195,772Total
                current liabilities
            
            
            4,179,340Notes
                payable, less current portion
            
            
            60,092Total
                liabilities
            
            
            4,239,432Stockholders'
                deficitPreferred
                stock:$.0001 par value; 60,000,000 shares authorized; 22,043,862 shares
                issued
                and outstanding
            
            
            2,204Common
                stock:$.0001
                par value;200,000,000
                shares authorized; 21,440,306shares issued and outstanding
            
            
            2,144Additional
                paid-in capital
            
            
            7,860,806Accumulated
                deficit
            
            
            (9,635,370
            )Total
                stockholders' deficit
            
            
            (1,770,216
            )Total
                liabilities and stockholders' deficit
            
            $
            2,469,216


See
        Notes
        to Consolidated Financial Statements
  F-2
  ADUROMED
          INDUSTRIES, INC.
 
 CONDENSED
          CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)


Three
                months endedSeptember
                30,2007
            
            2006RevenuesContract
                revenues earned
            
            $
            298,838
            
            $
            1,454,797Sales
                and service revenues
            
            
            304,399
            
            
            102,581Total
                revenues
            
            
            603,237
            
            
            1,557,378Cost
                of sales
            
            
            423,253
            
            
            1,086,682Gross
                profit
            
            
            179,984
            
            
            470,696Operating
                expensesSalaries
                and wages
            
            
            396,325
            
            
            413,604General
                and administrative expenses
            
            
            635,430
            
            
            928,296Depreciation
                expense
            
            
            21,847
            
            
            17,926Total
                operating expenses
            
            
            1,053,602
            
            
            1,359,826Loss
                from operations
            
            
            (873,618
            )
            
            (889,130
            )Other
                income and expensesInterest
                income
            
            
            7,291
            
            
            20,364Interest
                expense
            
            
            (41,112
            )
            
            (4,315
            )Total
                other income and expenses
            
            
            (33,821
            )
            
            16,049Net
                loss before income taxes
            
            
            (907,439
            )
            
            (873,081
            )Provision
                for income tax benefit
            
            
            -
            
            
            -Net
                loss
            
            $
            (907,439
            )
            $
            (873,081
            )Basic
                and diluted net loss per common share
            
            $
            (0.05
            )
            $
            (0.05
            )Weighted
                average common shares outstanding
            
            
            20,994,455
            
            
            20,942,857





See
      Notes to Consolidated Financial
      Statements





F-3





ADUROMED
        INDUSTRIES, INC.
 
 CONDENSED
        CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)





Nine
                months endedSeptember
                30,2007
            
            2006RevenuesContract
                revenues earned
            
            $
            1,413,086
            
            $
            2,902,053Sales
                and service revenues
            
            
            722,272
            
            
            326,336Total
                revenues
            
            
            2,135,358
            
            
            3,228,389Cost
                of sales
            
            
            1,345,116
            
            
            2,502,275Gross
                profit
            
            
            790,242
            
            
            726,114Operating
                expensesSalaries
                and wages
            
            
            1,219,269
            
            
            1,217,026General
                and administrative expenses
            
            
            1,686,310
            
            
            2,143,819Depreciation
                expense
            
            
            68,429
            
            
            41,626Total
                operating expenses
            
            
            2,974,008
            
            
            3,402,471Loss
                from operations
            
            
            (2,183,766
            )
            
            (2,676,357
            )Other
                income and expensesInterest
                income
            
            
            21,000
            
            
            63,930Interest
                expense
            
            
            (51,630
            )
            
            (43,541
            )Total
                other income and expenses
            
            
            (30,630
            )
            
            20,389Net
                loss before income taxes
            
            
            (2,214,396
            )
            
            (2,655,968
            )Provision
                for income tax benefit
            
            
            -
            
            
            -Net
                loss
            
            $
            (2,214,396
            )
            $
            (2,655,968
            )Basic
                and diluted net loss per common share
            
            $
            (0.12
            )
            $
            (0.14
            )Weighted
                average common shares outstanding
            
            
            20,836,677
            
            
            20,880,722





See
      Notes
      to Consolidated Financial Statements





F-4




ADUROMED
      INDUSTRIES, INC.





CONDENSED
      CONSOLIDATED STATEMENTS OF CASH
      FLOWS


(Unaudited)




Nine
                months endedSeptmeber
                30,2007
            
            2006Cash
                flows from operating activities:Net
                loss
            
            $
            (2,214,396
            )
            $
            (2,655,968
            )Adjustments
                to reconcile net loss tonet
                cash used in operations:Warrants
                and options issued for services
            
            
            296,997
            
            
            155,775Depreciation
                expense
            
            
            68,429
            
            
            41,626Write
                off of fixed assets
            
            
            7,170Change
                to allowance for bad bebt
            
            
            (4,682
            )Changes
                in operating assets and liabilities:Accounts
                receivable
            
            
            (20,535
            )
            
            (15,808
            )Loans
                receivable
            
            
            -
            
            
            2,029Revenues
                in excess of billings
            
            
            70,000
            
            
            (343,513
            )Inventory
            
            
            (158,376
            )
            
            (356,657
            )Security
                deposits
            
            
            
            
            
            13,124Prepaid
                expenses
            
            
            (5,492
            )
            
            4,272Accounts
                payable and accrued liabilities
            
            
            (832,309
            )
            
            1,017,799Deferred
                revenue
            
            
            140,829
            
            
            (13,364
            )Billings
                in excess of revenue
            
            
            356,165
            
            
            145,802Dividends
                payable
            
            
            315,000
            
            
            339,013Net
                cash used in operating activities
            
            
            (1,981,200
            )
            
            (1,665,870
            )Cash
                flows from investing activities:Purchase
                of fixed assets
            
            
            (11,686
            )
            
            (404,555
            )Net
                cash used in investing activities
            
            
            (11,686
            )
            
            (404,555
            )Cash
                flows from financing activities:Acquisition
                of shell company
            
            
            -
            
            
            (600,000
            )Repayment
                of notes payable
            
            
            (6,661
            )
            
            (98,577
            )Issuance
                of convertible notes
            
            
            1,275,000
            
            
            -Repayments
                of secured notes payable
            
            
            (127,500
            )
            
            -Proceeds
                from issuance of stock
            
            
            6,292
            
            
            5,010,970Costs
                of issuance of preferred stock and warrants
            
            
            (111,032
            )
            
            (568,629
            )Net
                cash provided by financing activities
            
            
            1,036,099
            
            
            3,743,764Increase
                in cash and cash equivalents
            
            
            (956,787
            )
            
            1,673,339Cash
                and cash equivalents, beginning of period
            
            
            1,892,336
            
            
            407,058Cash
                and cash equivalents, end of period
            
            $
            935,549
            
            $
            2,080,397Supplemental
                disclosures of cash flow information:Cash
                paid for interest
            
            $
            45,780
            
            $
            48,265Supplemental
                disclosures of noncash investing and financing activities:Conversion
                of note to stock
            
            $
            129,299
            
            $
            200,000Accrual
                of preferred stock dividents
            
            $
            310,000
            
            $
            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 September 30, 2007, the
      condensed consolidated statements of operations for the three and nine month
      periods ended September 30, 2007 and 2006 and the condensed consolidated
      statements of cash flows for the nine month period ended September 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 six 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 September 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® series systems.
      AII through its subsidiary, provides MedClean 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 September 30, 2007 and
      2006 amounting to 43,658,264 and
      40,773,639 respectively were not included in the calculation for net loss per common share
      because it would be antidilutive.





Neither
      outstanding Preferred A and B class of stock nor the common stock equivalents
      associated with the conversion feature for the period ending September 30,
      2007
      and 2006 amounting to 22,043,862 for both periods of both classes of Preferred
      Stock were 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:




Nine
                months ended
              September
                30,
            
            Three
                months ended
              September
                30,2007
            
            2006
            
            2007
            
            2006NUMERATOR
                FOR BASIC AND DILUTED EPS (LPS)Net
                loss per statement of operations
            
            $
            (2,214,396
            )
            $
            (2,655,968
            )
            $
            (907,439
            )
            $
            (873,081
            )Dividend
                payable to preferred stockholders
            
            
            (315,000
            )
            
            (299,232
            )
            
            (105,000
            )
            
            (105,000
            )Net
                loss to common stockholders
            
            $
            (2,529,396
            )
            $
            (2,955,200
            )
            $
            (1,012,439
            )
            $
            (978,081
            )DENOMINATOR
                FOR BASIC AND DILUTED EPS (LPS)Weighted
                average shares of common stock outstanding
            
            
            20,836,677
            
            
            20,880,722
            
            
            20,994,455
            
            
            20,942,857Basic
                and diluted EPS (LPS)
            
            $
            (0.12
            )
            $
            (0.14
            )
            $
            (0.05
            )
            $
            (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 September 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 $835,000.




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 nine months ended September 30, 2007, we recognized approximately
      $596,225 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 $11,418 as of September 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
      September 30, 2007.




September
                30,2007Vehicles
            
            $
            41,338Office
                Furniture
            
            
            164,525Computers
                and Accessories
            
            
            173,423Leasehold
                Improvements
            
            
            117,996$
            497,282Accumulated
                Depreciation
            
            
            125,974$
            371,308





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 $798,182 as of September 30, 2007 and is stated at the lower of cost or
      market. The following table summarizes these assets:





September
                30, 2007Component
                & spare parts
            
            $
            3,627Consumables
            
            
            742,361Advance
                payments
            
            
            32,194Total
                Inventory
            
            $
            798,182




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 September 30, 2007 the Company had
      $208,932 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 five outstanding contracts at September 30,
      2007. The following table summarizes these outstanding
      contracts:





Contract
            
            Revenue
            
            Amounts
            
            Revenues
                in
            
            Billings
                in excessAmount
            
            Recognized
            
            Billed
            
            excess
                of Billings
            
            of
                Revenues$
            1,327,930
            
            $
            654,191
            
            $
            1,327,930
            
            $
            -
            
            $
            673,739$
            483,117
            
            $
            208,995
            
            $
            120,780
            
            $
            88,215
            
            $
            -$
            586,414
            
            $
            576,414
            
            $
            586,414
            
            $
            -
            
            $
            10,000$
            430,790
            
            $
            407,123
            
            $
            430,790
            
            $
            -
            
            $
            23,667$
            483,596
            
            $
            106,076
            
            $
            120,899
            
            $
            -
            
            $
            14,823$
            88,215
            
            $
            722,229




5.
            COMMON
                STOCK





Effective
      September 26, 2007, the number of authorized Common Stock of the Company, par
      value $0.0001, was increased from 130,000,000 to 200,000,000 and the number
      of
      authorized Preferred Stock of the Company, par value $0.0001 was increased
      from
      40,000,000 to 60,000,000 . 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 September 26, 2007.





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





*Net
      Revenue*





Total
      revenue for the three months ended September 30, 2007 was $603,237 compared
      with
      $1,557,378 for the same three month period in 2006. Of the revenue reported
      in
      the current quarter, $201,818 was attributable to increased sales from
      consumables, component parts and service contracts offset by a $1,155,959
      decrease in revenues derived from the sales of our MedClean system.





Revenues
      from our MedClean product for the three months ended September 30, 2007 were
      $298,838 and $1,454,797 in the same three month period in 2006, a decrease
      of
      $1,155,959. The decreased revenue was attributable to the lack of new contracts
      within the quarter and the postponement at the customer’s request of one
      contract in backlog to the first quarter of next year.





Revenues
      derived from the sale of consumables, component parts and service contracts
      more
      than doubled to $304,399 from $102,581 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 September 30, 2007 was $179,984 (29.8% of
      total revenue) compared with a gross profit of $470,696 (30.2% of total revenue)
      for the same three month period of 2006, a decrease of $290,712. As a percent
      of
      revenue, the gross margin remained relatively unchanged from the third quarter
      of 2006. The gross profit was negatively impacted by the lack of revenues in
      the
      quarter.




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 September 30, 2007 was
      $1,053,602 compared with $1,359,826 for the same three month period in 2006,
      a
      decrease of $306,224 or 22.5%. The decreases are attributable to the
      elimination of expenses amounting to $315,000 associated with the equity
      financing during 2006, a salary reduction of $17,279 and a $49,500 reduction
      on
      commissions paid. These savings were offset by increased insurances premiums
      of
      $48,000 and consulting fees of $28,160. All other operating expenses decreased
      by $605 net.




*Interest
      (Income) Expense*




Interest
      income for the three months ended September 30, 2007 was $7,291 compared with
      $20,364 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 $41,112 compared with $4,315 in the same
      three month period of 2006. In June of 2007, the Company borrowed $1,275,000
      at
      a rate of 12% per annum. The loan is due on December 27, 2007.




*Net
      loss*




Net
      loss
      for the three months ended September 30, 2007 was $(907,439) compared to a
      net
      loss for the same three month period in 2006 of $(873,081).




*Net
      Loss Attributable to Common Stockholders*




Net
      loss
      attributable to common stockholders for this period of 2007 was $(1,012,439)
      or
      $(0.05) cents per share (basic and diluted), compared to a net loss of
      $(978,081) 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.




**Nine
      Months Ended September 30, 2007 Compared to Nine Months Ended September 30,
      2006**




*Net
      Revenue*





Total
      revenue for the nine months ended September 30, 2007 was $2,135,358 compared
      with $3,228,389 for the same Nine month period of 2006. Of the revenue decrease,
      $1,093,031 was attributable to a decrease of revenues derived from sales of
      our
      MedClean system partially offset by a $395,936 increase for the sale of
      consumables, component parts and service contracts. Contract backlog as of
      September 30, 2007 was $1,463,949.





Revenues
      from our MedClean product for the nine months ended September 30, 2007 was
      $1,413,086 compared to $2,902,053 in the same nine month period of 2006, a
      reduction of $1,488,967. The decreased revenue was attributable to the lack
      of
      new contracts and the postponement, at the customer’s request, of one contract
      in backlog to the first quarter of 2008.





Revenues
      derived from the sale of consumables, component parts and service contracts
      more
      than doubled to $722,272 compared to $326,336 in the same nine 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.





4




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.




*Gross
      Profit*




The
      gross
      profit for the Nine months ended September 30, 2007 was $790,242 (37.0% of
      total
      revenue) compared with a gross profit of $726,114 (22.5.0% of total revenue)
      for
      the same Nine month period of 2006, an increase of $64,128. 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 Nine month period ended September 30, 2007 was
      $2,974,008 compared with $3,402,471for the same Nine month period of 2006,
      a
      decrease of $428,463 or 12.6%. The decrease are attributable to the
      elimination of expenses amounting to $354,227 associated with the equity
      financing during 2006 and a $101,023 reduction in commissions offset by
      increased depreciation expense of $26,803 on increased capital spending in
      the
      previous year. All other operating` expenses decreased by $16 net.




*Interest
      (Income) Expense*




Interest
      income for the Nine months ended September 30, 2007 was $21,000 compared with
      $63,930 of interest income in the same Nine month period of 2006 on reduced
      cash
      balances available for investment. The Company invests its excess cash in a
      money market account. As of September 30, 2007 the interest rate was 3.0%.




Interest
      expense for the Nine month period was $51,630 compared with $43,541 in the
      same
      Nine month period of 2006. In June of 2007, the Company borrowed $1,275,000
      at a
      rate of 12% per annum. The loan is due on December 27, 2007.




*Net
      loss*




Net
      loss
      for the Nine months ended September 30, 2007 was $(2,214,396) compared to a
      net
      loss for the same Nine month period in 2006 of $(2,655,968).




*Net
      Loss Attributable to Common Stockholders*




Net
      loss
      attributable to common stockholders for this period of 2007 was $(2,529,396)
      or
      $(0.12) cents per share (basic and diluted), compared to a net loss of
      $(2,955,200) or $(0.14) cents per share (basic and diluted) for the same period
      in 2006.




During
      the Nine months ended September 30, 2007, the Company accrued $315,000 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 September 30, 2007 are as
      follows:




September
                30, 2007Cash
                on hand
            
            $
            935,549Working
                Capital
            
            $
            (2,099,920
            )





To
      date,
      the Company purchased $11,686 in fixed assets. The Company anticipates
      purchasing approximately $10,000 in additional fixed assets in 2007.





Net
      cash
      used in operating activities totaled $1,981,200 for the Nine months ended
      September 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 September 30, 2007 was $200,454 net of an allowance of $11,418.





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 Nine months ended September 30, 2007, the Company
      increased its inventory on hand by $158,376 to $798,182 in anticipation of
      expected new business. The accounts payable and accrued liabilities balance
      as
      of September 30, 2007 was $543,894.





On
      September 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 six 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 September 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 $759,013 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 September 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**





Effective
      August 23, 2007, outstanding promissory notes of the Company’s wholly-owned
      subsidiary ,
      Aduromed Corporation, payable to Mr. George Bucci in the principle amount of
      $91,347.55 and Mr. John Augustyn in the principle amount of $37,952.62 where
      converted into shares of common stock of the Company. Both notes were converted
      based upon the closing price of the Company’s common stock on August 23, 2007 of
      $0.23 per share, and resulted in the issuance of 397,163 shares to Mr. Bucci
      and
      165,011 shares to Mr. Augustyn. The Company did not receive any cash proceeds
      from these issuances.





Pursuant
      to an agreement dated August 23, 2007, the Company engaged Mr. Joseph Esposito
      as a corporate and business development advisor. During August, September and
      October, 2007 the Company issued a total of 225,000 shares of the Company’s
      common stock to Mr. Esposito as part of Mr. Esposito’s compensation package as
      an advisor to the Company. The Company did not receive any cash proceeds from
      these issuances.




The
      issuance of these 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 transactions,
      including the representations and warranties made by the parties receiving
      these
      securities and the fact that restrictive legends were placed on the common
      stock
      certificates.





**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.**





On
      September 6, 2007 the Company distributed to its security holders an Information
      Statement on Schedule 14C regarding an amendment to the Company’s Certificate of
      Incorporation to increase the authorized common stock of the Company from
      130,000,000 shares to 200,000,000 shares and the authorized preferred stock
      of
      the Company from 40,000,000 to 60,000,000. Such amendment was approved by
      written consent of a majority of the Company’s security holders and became
      effective on September 26, 2007.





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


10