----

----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

----

**FORM      10-Q**

**(Mark      One)**

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

**For      the quarterly period ended June 30, 2007**

**or**

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

**For      the transition period from _______________ to      _______________**

**Commission      file number 000-51596**

**ECHO      HEALTHCARE**

**ACQUISITION      CORP.**

**(Exact      name of Registrant as specified in its charter)**

|  **Delaware**                                  |   |   **56-2517815**                                                       |
|-----------------------------------------------------|--------|----------------------------------------------------------------------------------|
| ** (State                  of Incorporation)** |   |  **(I.R.S.                  Employer Identification                  No.)** |

**8000      Towers Crescent Drive, Suite 1300, Vienna, VA 22182**

**(Address      of principal executive offices)**

**(703)      448-7688**

**(Telephone      number, including area code)**

**Indicate      by check mark whether      the registrant (1) has filed all reports required to be filed by Section 13      or      15(d) of the Securities Exchange Act of 1934 during the preceding 12 months      (or      for such shorter period that the registrant was required to file such reports)      and (2) has been subject to such filing requirements for the past 90      days.**

**Yes      **
**x**
**No      **
**o**

**Indicate      by check mark whether the registrant is a large accelerated filer, an      accelerated filer, or a non-accelerated filer. See definition of “accelerated      filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check      one):**

**Large      accelerated filer o **
**              **
**Accelerated      filer o**
**  **
**             Non-accelerated      filerx**

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

**Yes      **
**x**
**No      **
**o**

**Indicate      the number of shares outstanding of each of the issuer’s classes of common stock      as of August 14, 2007.**

|  **Common                Stock, $.0001 par                value**  |   |   **8,750,000**                                  |
|------------------------------------------------------------------------------|--------|------------------------------------------------------------|
|  **(Class)**                                                            |   |  **(Number                of                shares)** |

----

----

----

**Part      I - Financial Information**

**Item      1. Condensed Consolidated Financial Statements**

**Echo      Healthcare Acquisition Corp.**

**(a      development stage company)**

**Condensed      Consolidated Balance Sheets**

|                                                                                                                                                                                                                                                                                                                                                                                             |   | **June                30,****2007****(Unaudited)** |       | **December                31,****2006** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|------------|-----------------------------------------|--------|
| **ASSETS**                                                                                                                                                                                                                                                                                                                                                                                       |   |                                               |       |                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                               |       |                                    |   |
| Current                Assets:                                                                                                                                                                                                                                                                                                                                                                   |   |                                               |       |                                    |   |   |   |
| Cash                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                                  | 29,020     |                                    | $      | 25,847 |   |
| Prepaid                expenses                                                                                                                                                                                                                                                                                                                                                                  |   |                                               | 12,771     |                                    |   | 41,104 |   |
| Total                current assets                                                                                                                                                                                                                                                                                                                                                              |   |                                               | 47,791     |                                    |   | 66,951 |   |
| Investments                held in Trust Fund                                                                                                                                                                                                                                                                                                                                                    |   |                                               | 57,615,030 |                                    |   | 56,403,718 |   |
| Deferred                acquisition costs                                                                                                                                                                                                                                                                                                                                                        |   |                                               | 379,527    |                                    |   | 284,878 |   |
| Total                assets                                                                                                                                                                                                                                                                                                                                                                      |   | $                                                  | 58,036,348 |                                    | $      | 56,755,547 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                               |       |                                    |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS’ EQUITY**                                                                                                                                                                                                                                                                                                                                    |   |                                               |       |                                    |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                               |       |                                    |   |   |   |
| Current                liabilities:                                                                                                                                                                                                                                                                                                                                                              |   |                                               |       |                                    |   |   |   |
| Accrued                expenses                                                                                                                                                                                                                                                                                                                                                                  |   | $                                                  | 1,263,056  |                                    | $      | 611,550 |   |
| Derivative                liabilities                                                                                                                                                                                                                                                                                                                                                            |   |                                               | -          |                                    |   | 6,165,250 |   |
| Line                of Credit from Founding Stockholders                                                                                                                                                                                                                                                                                                                                         |   |                                               | 443,100    |                                    |   | 240,300 |   |
| Accrued                offering costs                                                                                                                                                                                                                                                                                                                                                            |   |                                               | 152,713    |                                    |   | 152,713 |   |
| Deferred                underwriting and other offering costs                                                                                                                                                                                                                                                                                                                                    |   |                                               | 2,018,233  |                                    |   | 2,018,233 |   |
| Total                current liabilities                                                                                                                                                                                                                                                                                                                                                         |   |                                               | 3,877,102  |                                    |   | 9,188,046 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                               |       |                                    |   |   |   |
| **COMMITMENTS                AND CONTINGENCIES**                                                                                                                                                                                                                                                                                                                                                 |   |                                               |       |                                    |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                               |       |                                    |   |   |   |
| Common                stock subject to possible conversion, 1,436,781                shares                at a conversion values of approximately $7.97                and $7.84 per share, respectively, including accretion of allocated                income                of $466,127 and $279,267,respectively, (net of $240,126 and $143,865                income taxes, respectively) |   |                                               | 11,450,032 |                                    |   | 11,263,172 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                               |       |                                    |   |   |   |
| **STOCKHOLDERS’                EQUITY**                                                                                                                                                                                                                                                                                                                                                    |   |                                               |       |                                    |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                                               |       |                                    |   |   |   |
| Preferred                stock—$.0001 par value; 1,000,000 shares authorized; 0 issued and                outstanding                                                                                                                                                                                                                                                                      |   |                                               | -          |                                    |   | - |   |
| Common                stock—$.0001 par value, 25,000,000 shares authorized; 8,750,000 issued                and                outstanding (which includes 1,436,781                shares                subject to possible conversion)                                                                                                                                                  |   |                                               | 875        |                                    |   | 875 |   |
| Additional                paid-in capital                                                                                                                                                                                                                                                                                                                                                        |   |                                               | 42,850,452 |                                    |   | 36,195,054 |   |
| (Deficit)/Earnings                accumulated during the development stage                                                                                                                                                                                                                                                                                                                       |   |                                               | (142,113   | )                                       |   | 108,400 |   |
| Total                stockholders’ equity                                                                                                                                                                                                                                                                                                                                                  |   |                                               | 42,709,214 |                                    |   | 36,304,329 |   |
| Total                liabilities and stockholders’ equity                                                                                                                                                                                                                                                                                                                                  |   | $                                                  | 58,036,348 |                                    | $      | 56,755,547 |   |

----

**Echo      Healthcare Acquisition Corp.**

**(a      development stage company)**

**Condensed      Consolidated Statements of Operations**

**(Unaudited)**

|                                                                     |   |   **Six                Months****ended****June                30,****2007** |      | **Six                Months****ended****June                30,****2006** |   |   **Three                Months**** ended****June                30,****2007** |   | **Three                Months**** ended****June                30,****2006** |      | **June                10, 2005****(Date                of****Inception)****through****June                30,****2007** |   |
|--------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|-----------|---------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|-----------|-------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                     |   |                                                                                  |      |                                                                      |   |                                                                                          |   |                                                                              |      |                                                                                                                    |   |
| Revenue                                                                  |   | $                                                                                     | 0         |                                                                      | $      | 0                                                                                             |   | $                                                                                 | 0         |                                                                                                                    | $      | 0 |   | $ | 0 |   |
| Operating                expenses                                        |   |                                                                                  | (488,751  | )                                                                         |   | (154,075                                                                                      | )      |                                                                              | (292,975  | )                                                                                                                       |   | (127,604 | ) |   | (1,037,426 | ) |
| Organization                costs                                        |   |                                                                                  | 0         |                                                                      |   | 0                                                                                             |   |                                                                              | 0         |                                                                                                                    |   | 0 |   |   | (137,120 | ) |
| Operating                loss                                            |   |                                                                                  | (488,751  | )                                                                         |   | (154,075                                                                                      | )      |                                                                              | (292,975  | )                                                                                                                       |   | (127,604 | ) |   | (1,174,546 | ) |
| Gain/(Loss)                on derivative liabilities                     |   |                                                                                  | (490,148  | )                                                                         |   | 215,625                                                                                       |   |                                                                              | 0         |                                                                                                                    |   | 399,862 |   |   | (856,924 | ) |
| Interest                income                                           |   |                                                                                  | 1,416,312 |                                                                      |   | 703,806                                                                                       |   |                                                                              | 714,968   |                                                                                                                    |   | 642,108 |   |   | 3,533,030 |   |
| Income                before provision for income taxes                  |   |                                                                                  | 437,413   |                                                                      |   | 765,356                                                                                       |   |                                                                              | 421,993   |                                                                                                                    |   | 914,366 |   |   | 1,501,560 |   |
| Provision                for income taxes                                |   |                                                                                  | (501,066  | )                                                                         |   | (139,948                                                                                      | )      |                                                                              | (243,089  | )                                                                                                                       |   | (139,948 | ) |   | (1,177,546 | ) |
| Net                (loss)/ income                                        |   | $                                                                                     | (63,653   | )                                                                         | $      | 625,408                                                                                       |   | $                                                                                 | 178,904   |                                                                                                                    | $      | 774,418 |   | $ | 324,014 |   |
|                                                                     |   |                                                                                  |      |                                                                      |   |                                                                                          |   |                                                                              |      |                                                                                                                    |   |   |   |   |   |   |
| Weighted                average number of shares outstanding—basic |   |                                                                                  | 7,968,750 |                                                                      |   | 5,111,360                                                                                     |   |                                                                              | 7,968,750 |                                                                                                                    |   | 7,968,750 |   |   |   |   |
|                                                                     |   |                                                                                  |      |                                                                      |   |                                                                                          |   |                                                                              |      |                                                                                                                    |   |   |   |   |   |   |
| Net                (Loss)/Income per share—basic                   |   | $                                                                                     | (0.01     | )                                                                         | $      | 0.10                                                                                          |   | $                                                                                 | 0.02      |                                                                                                                    | $      | 0.10 |   |   |   |   |
| Net                Income                                                |   |                                                                                  |      |                                                                      | $      | 625,408                                                                                       |   | $                                                                                 | 178,904   |                                                                                                                    | $      | 774,418 |   |   |   |   |
|                                                                     |   |                                                                                  |      |                                                                      |   |                                                                                          |   |                                                                              |      |                                                                                                                    |   |   |   |   |   |   |
| Gain                on derivative liabilities attributed to warrants     |   |                                                                                  |      |                                                                      |   | (215,625                                                                                      | )      |                                                                              | 0         |                                                                                                                    |   | (399,862 | ) |   |   |   |
|                                                                     |   |                                                                                  |      |                                                                      |   |                                                                                          |   |                                                                              |      |                                                                                                                    |   |   |   |   |   |   |
| Adjusted                net income - for diluted earnings                |   |                                                                                  |      |                                                                      |   | 409,873                                                                                       |   |                                                                              | 178,904   |                                                                                                                    |   | 374,556 |   |   |   |   |
| Weighted                average shares outstanding                       |   |                                                                                  |      |                                                                      |   | 5,111,360                                                                                     |   |                                                                              | 7,968,750 |                                                                                                                    |   | 7,968,750 |   |   |   |   |
| Shares                from assumed conversion of warrants                |   |                                                                                  |      |                                                                      |   | 692,232                                                                                       |   |                                                                              | 1,724,781 |                                                                                                                    |   | 1,275,232 |   |   |   |   |
| Weighted                average number of shares outstanding - diluted   |   |                                                                                  |      |                                                                      |   | 5,803,592                                                                                     |   |                                                                              | 9,693,531 |                                                                                                                    |   | 9,243,982 |   |   |   |   |
| Net                income per share - diluted                            |   |                                                                                  |      |                                                                      | $      | 0.07                                                                                          |   | $                                                                                 | 0.02      |                                                                                                                    | $      | 0.04 |   |   |   |   |

----

**Echo      Healthcare Acquisition Corp.**

**(a      development stage company)**

**Condensed      Consolidated Statements of Stockholders’ Equity**

|                                                                                                                                                                                                                                       |   | **Common                Stock** |      |             |   |                                          | **Deficit****Accumulated****During                the** |                     | **Total Stockholders’** |                                        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|-----------|------------------|--------|-----------------------------------------------|---------------------------------------------------------|--------------------------|-------------------------------|---------------------------------------------|
|                                                                                                                                                                                                                                       |   | **Shares**                      |      |  **Amount** |   | **Additional                Paid-In Capital** |                                                    | **Development****Stage** |                          | **Equity                (Capital Deficit)** |   |
|                                                                                                                                                                                                                                       |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   |   |   |   |   |   |
| **Balance                - June 10, 2005 (date of inception)**                                                                                                                                                                             |   |                            | -0-       |             |   | -0-                                           |                                                    |                     | -0-                           |                                        |   | -0- |   |   | -0- |   |
|                                                                                                                                                                                                                                       |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   |   |   |   |   |   |
| Contributions                from Founding Stockholders                                                                                                                                                                                    |   |                            | 1,562,500 |             | $      | 156                                           |                                                    | $                        | 24,844                        |                                        |   |   |   | $ | 25,000 |   |
|                                                                                                                                                                                                                                       |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   |   |   |   |   |   |
| Net                loss for the period ended December 31, 2005                                                                                                                                                                        |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        | $ | (138,120 | ) |   | (138,120 | ) |
|                                                                                                                                                                                                                                       |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   |   |   |   |   |   |
| **Balance                - December 31, 2005**                                                                                                                                                                                             |   |                            | 1,562,500 |             | $      | 156                                           |                                                    | $                        | 24,844                        |                                        | $ | (138,120 | ) | $ | (113,120 | ) |
|                                                                                                                                                                                                                                       |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   |   |   |   |   |   |
| Sale                of 7,187,500 Units, net of underwriter’s discount and offering expenses                (includes 1,436,781                shares subject to possible conversion, excludes Derivative                Liabilities) |   |                            | 7,187,500 |             |   | 719                                           |                                                    |                     | 52,402,489                    |                                        |   |   |   |   | 52,403,208 |   |
|                                                                                                                                                                                                                                       |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   |   |   |   |   |   |
| Proceeds                subject to possible conversion of 1,436,781                shares                                                                                                                                                  |   |                            |      |             |   |                                          |                                                    |                     | (10,983,905                   | )                                           |   |   |   |   | (10,983,905 | ) |
|                                                                                                                                                                                                                                       |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   |   |   |   |   |   |
| Proceeds                from issuance of underwriter’s purchase option                                                                                                                                                               |   |                            |      |             |   |                                          |                                                    |                     | 100                           |                                        |   |   |   |   | 100 |   |
|                                                                                                                                                                                                                                       |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   |   |   |   |   |   |
| Reclassification                of proceeds allocated to warrants - derivatives liability                                                                                                                                                  |   |                            |      |             |   |                                          |                                                    |                     | (5,798,474                    | )                                           |   |   |   |   | (5,798,474 | ) |
|                                                                                                                                                                                                                                       |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   |   |   |   |   |   |
| Proceeds                from sale of warrants to Founding Stockholders                                                                                                                                                                     |   |                            |      |             |   |                                          |                                                    |                     | 550,000                       |                                        |   |  |   |   | 550,000 |   |
|                                                                                                                                                                                                                                       |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   |   |   |   |   |   |
| Accretion                of trust fund income for the period relating to common stock subject                to                redemption, net of tax                                                                                      |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   | (279,267 | ) |   | (279,267 | ) |
|                                                                                                                                                                                                                                       |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   |   |   |   |   |   |
| Net                income for the year                                                                                                                                                                                                     |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   | 525,787 |   |   | 525,787 |   |
|                                                                                                                                                                                                                                       |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   |   |   |   |   |   |
| **Balance                - December 31, 2006**                                                                                                                                                                                             |   |                            | 8,750,000 |             | $      | 875                                           |                                                    | $                        | 36,195,054                    |                                        | $ | 108,400 |   | $ | 36,304,329 |   |
|                                                                                                                                                                                                                                       |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   |   |   |   |   |   |
| Accretion                of trust fund income for the period relating to common stock subject                to                redemption, net of tax                                                                                      |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   | (186,860 | ) |   | (186,860 | ) |
|                                                                                                                                                                                                                                       |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   |   |   |   |   |   |
| Reclassification                of proceeds allocated to warrants - derivatives liability upon adoption                of                Warrant Clarification Agreement                                                                   |   |                            |      |             |   |                                          |                                                    |                     | 6,655,398                     |                                        |   |   |   |   | 6,655,398 |   |
|                                                                                                                                                                                                                                       |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   |   |   |   |   |   |
| Net                loss for the period                                                                                                                                                                                                     |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   | (63,653 | ) |   | (63,653 | ) |
|                                                                                                                                                                                                                                       |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   |   |   |   |   |   |
| **Balance                -**                                                                                                                                                                                                               |   |                            |      |             |   |                                          |                                                    |                     |                          |                                        |   |   |   |   |   |   |
| **June                30, 2007 (unaudited)**                                                                                                                                                                                               |   |                            | 8,750,000 |             | $      | 875                                           |                                                    | $                        | 42,850,452                    |                                        | $ | (142,113 | ) | $ | 42,709,214 |   |

----

**Echo      Healthcare Acquisition Corp.**

**(a      development stage company)**

**Condensed      Consolidated Statements of Cash Flows**

**(Unaudited)**

|                                                                                                               |   | **January                1, 2007**** through****June                30,****2007** |       | **January                1, 2006**** through**** June                30,****2006** |   | **June                10, 2005**** (Date                of Inception)****through****June                30,****2007** |   |
|--------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------|--------|
| **Cash                flows from operating activities:**                                                           |   |                                                                                   |       |                                                                                         |   |                                                                                                                       |   |   |   |   |
| Net                (loss)/ income                                                                                  |   | $                                                                                      | (63,653    | )                                                                                            | $      | 625,408                                                                                                                    |   | $ | 324,014 |   |
| Adjustments                to reconcile net income (loss) to net cash used by operating                activities: |   |                                                                                   |       |                                                                                         |   |                                                                                                                       |   |   |   |   |
| (Loss)/Gain                on derivative liabilities                                                               |   |                                                                                   | 490,148    |                                                                                         |   | (215,625                                                                                                                   | )      |   | 856,924 |   |
| Changes                in:                                                                                         |   |                                                                                   |       |                                                                                         |   |                                                                                                                       |   |   |   |   |
| Prepaid                expenses                                                                                    |   |                                                                                   | 28,333     |                                                                                         |   | (69,438                                                                                                                    | )      |   | (12,771 | ) |
| Accrued                expenses                                                                                    |   |                                                                                   | 556,857    |                                                                                         |   | 83,497                                                                                                                     |   |   | 883,528 |   |
| Net                cash provided by operating activities                                                           |   |                                                                                   | 1,011,685  |                                                                                         |   | 423,842                                                                                                                    |   |   | 2,051,695 |   |
|                                                                                                               |   |                                                                                   |       |                                                                                         |   |                                                                                                                       |   |   |   |   |
| **Cash                flows from investing activities:**                                                           |   |                                                                                   |       |                                                                                         |   |                                                                                                                       |   |   |   |   |
| ** **Increase                in Investments held in Trust Fund                                                |   |                                                                                   | (1,211,312 | )                                                                                            |   | (55,650,806                                                                                                                | )      |   | (57,615,030 | ) |
| ** **Net                cash used in investing activities                                                     |   |                                                                                   | (1,211,312 | )                                                                                            |   | (55,650,806                                                                                                                | )      |   | (57,615,030 | ) |
|                                                                                                               |   |                                                                                   |       |                                                                                         |   |                                                                                                                       |   |   |   |   |
| **Cash                flows from financing activities:**                                                           |   |                                                                                   |       |                                                                                         |   |                                                                                                                       |   |   |   |   |
| Proceeds                from notes payable to Founding Stockholders                                                |   |                                                                                   | --         |                                                                                         |   | 50,000                                                                                                                     |   |   | 200,000 |   |
| Proceeds                from Line of Credit from Founding Stockholders                                             |   |                                                                                   | 202,800    |                                                                                         |   | 105,700                                                                                                                    |   |   | 443,100 |   |
| Payments                on notes payable to Founding Stockholders                                                  |   |                                                                                   | --         |                                                                                         |   | (200,000                                                                                                                   | )      |   | (200,000 | ) |
| Proceeds                from sale of common stock to Founding Stockholders                                         |   |                                                                                   | --         |                                                                                         |   | --                                                                                                                         |   |   | 25,000 |   |
| Gross                proceeds from public offering                                                                 |   |                                                                                   | --         |                                                                                         |   | 57,500,000                                                                                                                 |   |   | 57,500,000 |   |
| Proceeds                from issuance of underwriter’s purchase option                                       |   |                                                                                   | --         |                                                                                         |   | 100                                                                                                                        |   |   | 100 |   |
| Proceeds                from sale of warrants to Founding Stockholders                                             |   |                                                                                   | --         |                                                                                         |   | 550,000                                                                                                                    |   |   | 550,000 |   |
| Costs                of offering                                                                                   |   |                                                                                   | --         |                                                                                         |   | (2,767,721                                                                                                                 | )      |   | (2,925,845 | ) |
| Net                cash provided by financing activities                                                           |   |                                                                                   | 202,800    |                                                                                         |   | 55,238,079                                                                                                                 |   |   | 55,592,355 |   |
|                                                                                                               |   |                                                                                   |       |                                                                                         |   |                                                                                                                       |   |   |   |   |
| **Net                increase in cash**                                                                            |   |                                                                                   | 3,173      |                                                                                         |   | 11,115                                                                                                                     |   |   | 29,020 |   |
| Cash—beginning                of period                                                                      |   |                                                                                   | 25,847     |                                                                                         |   | 14,807                                                                                                                     |   |   | -- |   |
| **Cash—end                of period**                                                                        |   | **$**                                                                                  | 29,020     |                                                                                         | **$**  | 25,922                                                                                                                     |   | **$** | 29,020 |   |
|                                                                                                               |   |                                                                                   |       |                                                                                         |   |                                                                                                                       |   |   |   |   |
|                                                                                                               |   |                                                                                   |       |                                                                                         |   |                                                                                                                       |   |   |   |   |
| Supplemental                disclosure of cash paid for:                                                           |   |                                                                                   |       |                                                                                         |   |                                                                                                                       |   |   |   |   |
| Income                taxes paid                                                                                   |   | $                                                                                      | 205,000    |                                                                                         |   | --                                                                                                                         |   | $ | 865,000 |   |
|                                                                                                               |   |                                                                                   |       |                                                                                         |   |                                                                                                                       |   |   |   |   |
| Supplemental                schedule of non-cash financing activities                                              |   |                                                                                   |       |                                                                                         |   |                                                                                                                       |   |   |   |   |
| (Payment                of accrued) Accrual of deferred offering costs                                             |   |                                                                                   | --         |                                                                                         | $      | (290,575                                                                                                                   | )      | $ | 152,713 |   |
| Accrual                of deferred underwriting and other offering costs                                           |   | $                                                                                      | --         |                                                                                         | $      | 2,018,233                                                                                                                  |   | $ | 2,018,233 |   |
| Accrual                of deferred acquisition costs                                                               |   | $                                                                                      | 94,649     |                                                                                         |   | --                                                                                                                         |   | $ | 379,527 |   |
| Warrant                obligation in connection with sale of units in offering                                     |   | $                                                                                      | --         |                                                                                         | $      | 5,798,474                                                                                                                  |   |   | -- |   |
| Reclassification                of warrants liability to equity                                                    |   | $                                                                                      | 6,655,398  |                                                                                         |   | --                                                                                                                         |   | $ | 6,655,398 |   |

----

**NOTE      A—BASIS OF PRESENTATION**

**NOTE      B—ORGANIZATION AND BUSINESS OPERATIONS**

**NOTE      C—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**[1]**
**Use      of estimates:**

**[2]**
**Income/(Loss)      per common share:**

----

|                                                                                                                                                                                                                              |   | **Six                months ended****June                30, 2007** |      | **Six                months ended****June                30, 2006** |   | **Three                months ended****June                30, 2007** |   | **Three                months ended****June                30, 2006** |      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|-----------|---------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|-----------------------------------------------------------------------|-----------|
| Net                income (Loss)                                                                                                                                                                                                  |   | $                                                                   | (63,653   | )                                                                   | $      | 625,408                                                               |   | $                                                                     | 178,904   |   | $ | 774,418 |   |
|                                                                                                                                                                                                                              |   |                                                                |      |                                                                |   |                                                                  |   |                                                                  |      |   |   |   |   |
| Interest                income net of taxes attributable to common stock subject to possible                conversion                                                                                                            |   | $                                                                   | (186,860  | )                                                                   | $      | (92,856                                                               | )      | $                                                                     | (94,330   | ) | $ | (80,522 | ) |
|                                                                                                                                                                                                                              |   |                                                                |      |                                                                |   |                                                                  |   |                                                                  |      |   |   |   |   |
| Pro                forma net income/loss attributable to common stockholders not subject                to                possible conversion                                                                                     |   | $                                                                   | (250,513  | )                                                                   | $      | 532,552                                                               |   | $                                                                     | 84,574    |   | $ | 693,896 |   |
|                                                                                                                                                                                                                              |   |                                                                |      |                                                                |   |                                                                  |   |                                                                  |      |   |   |   |   |
| Pro                forma weighted average number of shares outstanding, excluding shares                subject to possible conversion - basic                                                                                    |   |                                                                | 6,531,969 |                                                                |   | 4,314,798                                                             |   |                                                                  | 6,531,969 |   |   | 6,531,969 |   |
|                                                                                                                                                                                                                              |   |                                                                |      |                                                                |   |                                                                  |   |                                                                  |      |   |   |   |   |
| Pro                forma net income/loss per share, excluding shares subject to possible                conversion - basic                                                                                                        |   | $                                                                   | (0.04     | )                                                                   | $      | 0.12                                                                  |   | $                                                                     | 0.01      |   | $ | 0.11 |   |
|                                                                                                                                                                                                                              |   |                                                                |      |                                                                |   |                                                                  |   |                                                                  |      |   |   |   |   |
|                                                                                                                                                                                                                              |   |                                                                |      |                                                                |   |                                                                  |   |                                                                  |      |   |   |   |   |
| Net                income                                                                                                                                                                                                         |   |                                                                |      |                                                                | $      | 625,408                                                               |   | $                                                                     | 178,904   |   | $ | 774,418 |   |
|                                                                                                                                                                                                                              |   |                                                                |      |                                                                |   |                                                                  |   |                                                                  |      |   |   |   |   |
| Interest                income net of taxes attributable to common stock subject to possible                conversion                                                                                                            |   |                                                                |      |                                                                |   | (92,856                                                               | )      |                                                                  | (94,330   | ) |   | (80,522 | ) |
|                                                                                                                                                                                                                              |   |                                                                |      |                                                                |   |                                                                  |   |                                                                  |      |   |   |   |   |
| Gain                on derivative liabilities attributed to warrants                                                                                                                                                              |   |                                                                |      |                                                                |   | (215,625                                                              | )      |                                                                  | --        |   |   | (399,862 | ) |
|                                                                                                                                                                                                                              |   |                                                                |      |                                                                |   |                                                                  |   |                                                                  |      |   |   |   |   |
| Pro                forma net income attributable to common stockholders not subject                to                possible conversion less gain on derivative liabilities attributed                to                warrants |   |                                                                |      |                                                                | $      | 316,927                                                               |   | $                                                                     | 84,574    |   | $ | 294,034 |   |
|                                                                                                                                                                                                                              |   |                                                                |      |                                                                |   |                                                                  |   |                                                                  |      |   |   |   |   |
| Pro                forma weighted average number of shares outstanding excluding shares                subject to possible conversion - basic                                                                                     |   |                                                                |      |                                                                |   | 4,314,798                                                             |   |                                                                  | 6,531,969 |   |   | 6,531,969 |   |
|                                                                                                                                                                                                                              |   |                                                                |      |                                                                |   |                                                                  |   |                                                                  |      |   |   |   |   |
| Shares                from assumed conversion on warrants                                                                                                                                                                         |   |                                                                |      |                                                                |   | 692,232                                                               |   |                                                                  | 1,724,781 |   |   | 1,275,232 |   |
|                                                                                                                                                                                                                              |   |                                                                |      |                                                                |   |                                                                  |   |                                                                  |      |   |   |   |   |
| Pro                forma weighted average number of shares outstanding, excluding shares                subject to possible conversion - diluted                                                                                  |   |                                                                |      |                                                                |   | 5,007,030                                                             |   |                                                                  | 8,256,750 |   |   | 7,807,201 |   |
|                                                                                                                                                                                                                              |   |                                                                |      |                                                                |   |                                                                  |   |                                                                  |      |   |   |   |   |
| Pro                forma net income per share, excluding shares subject to possible                conversion - diluted                                                                                                           |   |                                                                |      |                                                                | $      | 0.06                                                                  |   | $                                                                     | 0.01      |   | $ | 0.04 |   |

**[3]      Accounting for Warrants and Derivative Instruments**

----

----

**[4]      Income Taxes**

**[5]      Adoption of New Accounting Pronouncement**

**[6]      New Accounting Pronouncements**

**NOTE      D — LINE OF CREDIT FROM FOUNDING STOCKHOLDERS**

** **
** **
** **

----

**NOTE      E — RELATED PARTY TRANSACTION**

**NOTE      F —PROPOSED ACQUISITION**

|   | · | The                  formula for the aggregate merger consideration (“Aggregate Merger                  Consideration”) payable in the merger will include revenues attributable                  to hospitals or clinics that are acquired by XLNT on or before                  March 31,                  2007. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Aggregate                  Merger Consideration shall be a number of shares of the Company’s common                  stock equal to the quotient obtained by dividing (1) the sum of                  (A) two                  times the lesser of (x) the consolidated gross revenues of XLNT                  for the                  year ended December 31, 2006, including the revenues for the year                  ended                  December 31, 2006 attributable to hospitals or clinics that are                  acquired                  by XLNT prior to the Closing Date (each an “Acquisition Candidate”), and                  (y) $60.0 million, but in no event less than $57.5 million (“Baseline                  Revenues”), and (B) the excess over $60.0 million of XLNT’s Baseline                  Revenues (“Incremental Revenues”), multiplied by 1.15 (the sum of Baseline                  Revenues and Incremental Revenues being hereinafter referred to                  as the                  “Adjusted Baseline Revenues”), plus (C) in the event the threshold                  requirements for the Management Performance Bonus Pool are met                  (as                  described below), an amount equal to (the “Operational Improvement                  Amount”) the excess of the consolidated gross revenues of XLNT for the                  annualized period beginning on January 1, 2007 and ending on the                  last day                  of the fiscal quarter (based on the 2007 calendar year) immediately                  preceding the Closing Date, determined on a pro forma basis to                  include the                  revenues for such period attributable to the Completed Acquisitions,                  over                  105% of the Adjusted Baseline Revenues multiplied by (i) 1.15 in                  the event                  XLNT’s 2007 Consolidated EBITDA margin for the period beginning on January                  1, 2007 and ending on the last day of the fiscal quarter (based                  on the                  calendar year) immediately preceding the Closing Date (the “2007                  Year-To-Date EBITDA Margin”) has increased by at least 100 basis points                  over the greater of (x) XLNT’s 2006 adjusted EBITDA margin for the                  trailing twelve month period ended December 31, 2006, determined                  on a pro                  forma basis to include the revenues for such period attributable                  to the                  Completed Acquisitions, and (y) 16.2% (the “2006 Pro Forma EBITDA Margin”)                  or (ii) 1.33 in the event that XLNT’s 2007 Year-To-Date EBITDA Margin has                  increased by at least 250 basis points over XLNT’s 2006 Pro Forma EBITDA                  Margin plus (D) the Net Cash Amount; by (2) the product of (a)                  the amount                  of cash in the Company’s trust fund at the Closing (without deduction for                  amounts paid in connection with obtaining a fairness opinion from                  a                  nationally recognized financial advisor and the conversion by the                  Company’s public stockholders voting against the Merger of up to 19.9%                  of                  the Company’s shares of common stock issued in the Offering into a pro                  rata share of the funds held in the Company’s trust fund established in                  connection with the Offering) divided by the number of shares of                  the                  Company’s common stock then issued and outstanding (excluding therefrom                  any shares of the Company’s common stock issuable upon the exercise or                  exchange of other Company securities which by their terms are convertible                  into or exercisable or exchangeable for the Company’s common stock)                  multiplied by (b) 1.25. However, the product determined in (2)                  above shall                  not exceed $7.20 (as adjusted for events set forth in the merger                  agreement). |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | The                  exchange ratio pursuant to which shares of XLNT common stock will                  be                  exchanged for shares of Echo common stock will be equal to the                  quotient of                  (x) the Aggregate Merger Consideration, divided by the sum of (y)                  (i) the                  total number of outstanding shares of XLNT common stock (assuming                  that all                  shares of XLNT’s convertible preferred stock are converted into common                  stock prior to the closing) plus (ii) the number of shares of XLNT                  common                  stock issuable upon exercise of all vested and unvested options                  and                  warrants, determined using the treasury method of                  accounting. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                  parties will calculate the final working capital and net cash amount                  within 30 days following the closing of the Merger. If the final                  working                  capital is positive, then the Company shall issue to the exchange                  agent                  such number of additional shares of the Company’s common stock as is equal                  to the quotient determined by dividing the net cash amount (which                  shall                  not exceed the amount by which XLNT’s final working capital is positive                  and shall be reduced dollar-for-dollar by the amount of cash in                  the                  Company’s trust fund in excess of $52.0 million (after payment of all                  transaction expenses, amounts payable to the Company stockholders                  requesting redemption and deferred Offering expenses)) by the Company’s                  common stock per share issue price. In addition, if the requirements                  for                  the Management Performance Bonus Pool are met, the Company shall                  issue to                  the exchange agent such number of additional shares of the Company’s                  common stock as is equal to the quotient determined by dividing                  the                  Operational Improvement Amount by the Company’s common stock per share                  issue price. If any additional amounts are determined to be owing                  following the delivery of a notice of disagreement in accordance                  with the                  Amended and Restated Merger Agreement, then certificates for the                  additional shares of the Company’s common stock (or any cash in lieu of                  fractional shares) shall be deposited with the exchange agent within                  30                  days of such determination. In each case discussed above, the number                  of                  shares of the Company’s common stock to be delivered to the exchange agent                  shall be reduced by the number of shares of the Company’s common stock                  required by the terms of the Amended and Restated Merger Agreement                  to be                  delivered to the escrow agent, for distribution by the exchange                  agent to                  XLNT’s stockholders in an amount equal to each such stockholder’s pro rata                  interest in such amount following the 18 month anniversary of the                  closing                  of the subject transaction. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | XLNT                  will be permitted to incur up to $15 million in principal amount                  of                  indebtedness that carries an interest rate not to exceed thirteen                  percent                  (13%). |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                  expiration date of the merger agreement has been extended until                  March 21,                  2008. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                  companies agreed to delete the covenant in the merger agreement                  that                  restricted XLNT to 19,500,000 shares of common stock                  outstanding. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Between                  the date of signing of the Amended and Restated Merger Agreement                  and March                  31, 2007, XLNT shall not enter into any definitive acquisition                  agreement                  with a hospital or clinic it seeks to acquire (each, an                  “Acquisition** **Candidate”)                  unless such definitive acquisition agreement includes a termination                  right                  exercisable by the XLNT if XLNT and the Company determine that                  such                  Acquisition Candidate will not be able to provide its audited financial                  statements that will be required by the Company’s Form S-4 (“Significant                  Acquisition Audits”) on or before May 10,                  2007. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Between                  the date of signing of the Amended and Restated Merger Agreement                  and March                  31, 2007, XLNT shall only consummate an acquisition with an Acquisition                  Candidate if XLNT and the Company determine that such Acquisition                  Candidate will be able to provide its audited financial statements                  that                  constitute Significant Acquisition Audits on or before May 10,                  2007. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Subsequent                  to March 31, 2007, XLNT will not enter into any term sheet, letter                  of                  intent, definitive acquisition agreement or similar agreements                  with an                  Acquisition Candidate or consummate any acquisition with an Acquisition                  Candidate if the result of taking such action would be to require                  that any                  financial information, including, without limitation, any financial                  statements (whether or not audited), relating to such Acquisition                  Candidate be included in the proxy statement/prospectus to be filed                  by the                  Company or that any of the financial information or then existing                  disclosure contained or to be contained in the proxy statement/prospectus                  would be required by applicable requirements of the Securities                  and                  Exchange Commission (“SEC”) to be amended in any manner to include                  information and/or disclosure regarding such Acquisition                  Candidate. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | XLNT                  will provide to the Company XLNT’s historical audits on or before March                  31, 2007. XLNT will provide to the Company any other audited financial                  statements that may be required by the SEC due to any acquisitions                  of                  Acquisition Candidates completed subsequent to December 31, 2006                  that                  either individually or in the aggregate meet any significance tests                  then                  prescribed by the SEC for determining financial statement disclosure                  requirements relevant to the Company’s proxy statement/prospectus                  (“Significant Acquisition Audits”) on or before May 10, 2007. For purposes                  of the Amended and Restated Merger Agreement, XLNT’s historical audits and                  the Significant Acquisition Audits are referred to collectively                  as the                  “Audited Financial Statements.” In addition, XLNT will provide the Company                  with XLNT’s unaudited interim financial statements for the quarter ended                  March 31, 2007 on or before May 10,                  2007. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**NOTE G      — DEFERRED ACQUISTION COSTS **

** **

**Item      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations**

**Overview**

** **

**Critical      Accounting Policies and Accounting Estimates**

----

**Results      of Operations and Known Trends or Future Events**

**Developments        in Finding a Suitable Business Target**

----

|   | · | if                  the Merger has not occurred by March 21, 2008 (provided that this                  termination date shall be reduced by each day XLNT delivers certain                  required historical audited financial statements in advance of                  December                  15, 2006); |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | if                  a governmental entity has issued a non-appealable final decree,                  order or                  ruling or other final action permanently restraining or otherwise                  prohibiting the Merger; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our                  stockholders reject the proposed transaction (provided that such                  right to                  terminate shall be predicated on our Board’s continued support of                  transaction); or |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Holders                  of 20% or more of our common stock exercise their conversion                  rights. |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | we                  have breached any of our representations, warranties or covenants                  and any                  curable breach has not been cured by thirty days after XLNT notifies                  us of                  such breach; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | If                  XLNT’s stockholders fail to approve (provided that such right to terminate                  shall be predicated on the XLNT Board’s continued support of                  transaction). |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | XLNT                  has breached any of its representations, warranties or covenants                  and any                  curable breach has not been cured by thirty days after we notify                  XLNT of                  such breach; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | XLNT                  fails to deliver certain required historical audited financial                  statements                  by March 31, 2007; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | XLNT’s                  annualized trailing twelve months revenue as of December 31, 2006                  (together with any Acquisition Candidates) is less than $57,500,000                  or the                  annualized consolidated hospital EBITDA for XLNT (together with                  any                  Acquisition Candidates) based on the trailing twelve month period                  ending                  December 31, 2006 is less than $9,775,000, which termination right                  shall                  be exercisable within five (5) business days after: (a) XLNT notifies                  us                  that XLNT does not reasonably believe that it will meet one of                  the                  foregoing targets; or (b) March                  31, 2007 if either or both of the targets are not met due to the                  failure                  by XLNT to complete the acquisition of certain acquisition candidates. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Liquidity      and Capital Resources**

|   | · | approximately                  $20,000 for reimbursement of out-of-pocket expenses for the due                  diligence                  and investigation of a target                  business; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | approximately                  $40,000 of expenses in legal and accounting fees relating to our                  reporting                  obligations to the SEC; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | approximately                  $230,000 for general working capital that will be used for miscellaneous                  expenses and reserves, including expenses of structuring and negotiating                  a                  business combination, including the making of a down payment or                  the                  payment of exclusivity or similar fees and expenses;                  and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | approximately                  $18,000 for administrative fees relating to office space for twelve                  (12)                  months. However, an additional $49,500 in the administrative fees                  will be                  deferred and shall be payable upon the consummation of a business                  combination. In the event we must liquidate our company prior to                  such a                  business combination, these fees will not be paid with proceeds                  of our                  public offering held in trust. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                     |   | **Payments                due by period** |    |
|----------------------------------------------------------|--------|-------------------------------------------|---------|
|                                                     |   |  **Total**                           |    | **Less                than****1                year** |   |  **1-3                years** |   |  **3-5                years** |   | **More                than****5                years** |   |
|                                                     |   |                                      |    |
| Short                Term debt (1)                  |   | $                                         | 443,100 |   | $ | 443,100 |   | $ |   |   | $ |  - |   | $ | - |   |
| Administrative                Fees Obligations (2)  |   | $                                         | 67,500  |   | $ | 67,500 |   |   |   |   |   | - |   |   | - |   |
| Total                                               |   | $                                         | 510,600 |   | $ | 510,600 |   | $ |   |   | $ |  - |   | $ | - |   |
|                                                     |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

**Risk      Factors that May Affect Future Results**

----

**Item      3. Quantitative and Qualitative Disclosures about Market      Risk**

**Item      4. Controls and Procedures**

*Evaluation      of Disclosure Controls and Procedures*

**PART      II **
**-**
**      OTHER INFORMATION**

**Item      1. Legal Proceedings**

**Item      1A. Risk Factors**

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

**Item      3. Defaults Upon Senior Securities**

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

**I**
**tem      5. Other Information**

----

**Item      6. Exhibits**

| 10.1  |   | First                Amendment to Subordinated Revolving Line of Credit Agreement, dated                as of                August 11, 2007, by and between Echo Healthcare Acquisition Corp.,                a                Delaware corporation, and certain lenders set forth on Schedule A                of the                Subordinated Revolving Line of Credit Agreement. |
|------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1       |   | Rule                13a-14(a)/15d-14(a) Certification of the Chief Executive                Officer.                                                                                                                                                                                                                                                                                    |
| 31.2       |   | Rule                13a-14(a)/15d-14(a) Certification of the Chief Financial                Officer.                                                                                                                                                                                                                                                                                    |
| 32.1       |   | Section                1350 Certification of the Chief Executive Officer.                                                                                                                                                                                                                                                                                                               |
| 32.2       |   | Section                1350 Certification of the Chief Financial                Officer.                                                                                                                                                                                                                                                                                                |

----

|                                 | ECHO                HEALTHCARE ACQUISITION CORP.                                                                                                                     |
|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                 |                                        Registrant |
|                                 |                                                                                                                                                                 |
|                                 |                                                                                                                                                                 |
| Date:                August 14, 2007 | By:                 /S/                JOEL KANTER                                                                                                              |
|                                 |                        Joel Kanter                                                                                                |
|                                 |                        President                                                                                                  |
|                                 |                                                                                                                                                                 |
| Date:                August 14, 2007 | By:                  /S/                KEVIN PENDERGEST                                                                                                   |
|                                 |                         Kevin Pendergest                                                                                          |
|                                 |                         Chief Financial Officer                                                                              |