| Nevada                                                              | 20-0754724                                |
|---------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (I.R.S.      Employer Identification No.) |
|                                                                |                                      |

| Large      accelerated filer o | Accelerated      filer o | Non-accelerated      filer o(do      not check if smaller reporting company) | Smaller      reporting company  x |
|--------------------------------|--------------------------|------------------------------------------------------------------------------|----------------------------------------|

----

----

|          |                                                                                                 | Page   |
|---------------|------------------------------------------------------------------------------------------------------|--------|
|          | PART      I                                                                                          |   |
| Item      1.  | Financial      Statements                                                                            | F-1    |
| Item      2.  | Management’s      Discussion and Analysis of Financial Condition and Results of      Operation | 3      |
| Item      3.  | Quantitative      and Qualitative Disclosures about Market Risk                                      | 8      |
| Item      4T. | Controls      and Procedures                                                                         | 8      |
|          | PART      II                                                                                         |   |
| Item      1.  | Legal      Proceedings                                                                               |   |
| Item      1A. | Risk      Factors                                                                                    | 9      |
| Item      2.  | Unregistered      Sales of Equity Securities and Use of Proceeds                                     | 9      |
| Item      3.  | Defaults      Upon Senior Securities                                                                 | 9      |
| Item      4.  | Submission      of Matters to a Vote of Security Holders                                             | 9      |
| Item      5.  | Other      Information                                                                               | 9      |
| Item      6.  | Exhibits                                                                                             | 9      |
|          | 9                                                                                                    |
| SIGNATURES    | 10                                                                                                   |

----

|                                                                                                                                                                | Page            |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|
|                                                                                                                                                                |            |
| Condensed      Consolidated Balance Sheets as of March 31, 2008 (unaudited) and June 30,      2007                                                                  | F-2             |
|                                                                                                                                                                |            |
| Condensed      Consolidated Statements of Operations for the three months ended March 31,      2008 and 2007 and the nine months ended March 31, 2008 and      2007 | F-3             |
|                                                                                                                                                                |            |
| Condensed      Consolidated Statements of Stockholders’ Equity for the nine months ended      March 31, 2008                                                  | F-4             |
|                                                                                                                                                                |            |
| Condensed      Consolidated Statements of Cash Flows for the nine months ended March 31,      2008 and 2007.                                                        | F-5             |
|                                                                                                                                                                |            |
| Notes      to Condensed Consolidated Financial Statements                                                                                                           | F-7      - F-11 |

----

|                                                                             |   | March      31, 2008 (Unaudited) |           |   | June      30, 2007 |   |
|----------------------------------------------------------------------------------|--------|---------------------------------|----------------|--------|--------------------|--------|
|                                                                             |   |                            |           |   |               |   |
| ASSETS                                                                           |   |
|                                                                             |   |                            |           |   |               |   |
| CURRENT      ASSETS                                                              |   |                            |           |   |               |   |
|                                                                             |   |                            |           |   |               |   |
| Cash                                                                             |   | $                               | 190,281        |   |               | $      | 1,229,978 |   |
| Accounts      receivable                                                         |   |                            | 29,239         |   |               |   | 705 |   |
| Inventory                                                                        |   |                            | 518,278        |   |               |   | 228,162 |   |
| Investments                                                                      |   |                            | 20,000         |   |               |   | 20,000 |   |
|                                                                             |   |                            |           |   |               |   |   |   |
| TOTAL      CURRENT ASSETS                                                        |   |                            | 757,798        |   |               |   | 1,478,845 |   |
|                                                                             |   |                            |           |   |               |   |   |   |
| EQUIPMENT, net of      accumulated depreciation                                  |   |                            | 32,956         |   |               |   | 37,931 |   |
|                                                                             |   |                            |           |   |               |   |   |   |
| INTANGIBLES, net of      accumulated amortization                                |   |                            | 1,318,113      |   |               |   | 1,386,243 |   |
|                                                                             |   |                            |           |   |               |   |   |   |
| OTHER      ASSETS                                                                |   |                            | 192,889        |   |               |   | 124,128 |   |
|                                                                             |   |                            |           |   |               |   |   |   |
| TOTAL      ASSETS                                                                |   | $                               | 2,301,756      |   |               | $      | 3,027,147 |   |
|                                                                             |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                  |   |
|                                                                             |   |                            |           |   |               |   |   |   |
| CURRENT      LIABILITIES                                                         |   |                            |           |   |               |   |   |   |
|                                                                             |   |                            |           |   |               |   |   |   |
| Accounts      payable and accrued liabilities                                    |   | $                               | 167,307        |   |               | $      | 200,645 |   |
| Accrued      interest                                                            |   |                            | 287,130        |   |               |   | 201,375 |   |
| Payroll      taxes payable                                                       |   |                            | -              |   |               |   | 39,100 |   |
| Deferred      income                                                             |   |                            | -              |   |               |   | 52,140 |   |
| Loss      contingency payable                                                    |   |                            | 592,312        |   |               |   | 592,312 |   |
| Current      portion of long-term debt                                           |   |                            | 1,760,505      |   |               |   | 1,864,675 |   |
|                                                                             |   |                            |           |   |               |   |   |   |
| TOTAL      CURRENT LIABILITIES                                                   |   | $                               | 2,807,254      |   |               | $      | 2,950,247 |   |
|                                                                             |   |                            |           |   |               |   |   |   |
| NOTES PAYABLE, net of      current portion                                       |   |                            | -              |   |               |   | 987,064 |   |
|                                                                             |   |                            |           |   |               |   |   |   |
| TOTAL      LIABILITIES                                                           |   | $                               | 2,807,254      |   |               | $      | 3,937,311 |   |
|                                                                             |   |                            |           |   |               |   |   |   |
| STOCKHOLDERS’      DEFICIT                                                 |   |                            |           |   |               |   |   |   |
|                                                                             |   |                            |           |   |               |   |   |   |
| Preferred      stock, par value $0.001 per share                                 |   |                            |           |   |               |   |   |   |
| Authorized      – 4,000,000 shares                                         |   |                            |           |   |               |   |   |   |
| Issued      and outstanding -0-                                                  |   | $                               | -              |   |               | $      | - |   |
| Common      stock, par value $0.001 per share                                    |   |                            |           |   |               |   |   |   |
| Authorized      – 100,000,000 shares                                       |   |                            |           |   |               |   |   |   |
| Issued      and outstanding – 24,126,486 and 21,364,312,      respectively |   |                            | 24,126         |   |               |   | 21,364 |   |
| Additional      paid-in capital                                                  |   |                            | 6,310,874      |   |               |   | 4,630,962 |   |
| Accumulated      deficit                                                         |   |                            | (6,840,498     | )      |               |   | (5,562,490 | ) |
|                                                                             |   |                            |           |   |               |   |   |   |
| TOTAL      STOCKHOLDERS’ DEFICIT                                           |   |                            | (505,      498 | )      |               |   | (910,164 | ) |
|                                                                             |   |                            |           |   |               |   |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS’ DEFICIT                      |   | $                               | 2,301,756      |   |               | $      | 3,027,147 |   |

----

|                              |   | Three      Months Ended March 31, 2008 |       |   | Three      Months Ended March 31, 2007 |   |       | Nine      Months Ended March 31, 2008 |   |   | Nine      Months Ended March 31, 2007 |   |
|-----------------------------------|--------|----------------------------------------|------------|--------|----------------------------------------|--------|------------|---------------------------------------|--------|--------|---------------------------------------|--------|
|                              |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |
| REVENUES                          |   | $                                      | 38,963     |   |                                   | $      | 93,912     |                                  |   | $      | 461,245                               |   |   |   | 309,077 |   |
|                              |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
| COST      OF REVENUES             |   |                                   | 22,411     |   |                                   |   | 50,913     |                                  |   |   | 294,921                               |   |   |   | 141,196 |   |
|                              |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
| GROSS      PROFIT                 |   |                                   | 16,552     |   |                                   |   | 42,999     |                                  |   |   | 166,324                               |   |   |   | 167,881 |   |
|                              |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
| EXPENSES                          |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
| General      and administrative   |   |                                   | 426,170    |   |                                   |   | 171,373    |                                  |   |   | 1,192,196                             |   |   |   | 738,320 |   |
| Non-cash      compensation        |   |                                   | 50,000     |   |                                   |   | -          |                                  |   |   | 50,000                                |   |   |   | - |   |
|                              |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
| TOTAL      EXPENSES               |   |                                   | 476,170    |   |                                   |   | 171,373    |                                  |   |   | 1,242,196                             |   |   |   | 738,320 |   |
|                              |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
| (LOSS)      FROM OPERATIONS       |   |                                   | (459,618   | )      |                                   |   | (128,374   | )                                     |   |   | (1,075,872                            | )      |   |   | (570,439 | ) |
|                              |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
| OTHER      INCOME (EXPENSE)       |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
| Forgiveness      of debt          |   |                                   | 12,280     |   |                                   |   | -          |                                  |   |   | 18,447                                |   |   |   | - |   |
| Other      income                 |   |                                   | -          |   |                                   |   | 20,248     |                                  |   |   | -                                     |   |   |   | 20,248 |   |
| Interest      expense             |   |                                   | (209,287   | )      |                                   |   | (1,058     | )                                     |   |   | (218,983                              | )      |   |   | (7,122 | ) |
|                              |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
| TOTAL      OTHER INCOME (EXPENSE) |   |                                   | (197,007   | )      |                                   |   | 19,190     |                                  |   |   | (200,536                              | )      |   |   | 13,126 |   |
|                              |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
| (LOSS)      BEFORE INCOME TAXES   |   |                                   | (656,625   | )      |                                   |   | (109,184   | )                                     |   |   | (1,276,408                            | )      |   |   | (557,313 | ) |
|                              |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
| Income      tax expense           |   |                                   | 1,600      |   |                                   |   | -          |                                  |   |   | 1,600                                 |   |   |   | - |   |
|                              |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
|                              |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
| NET      (LOSS)                   |   | $                                      | (658,225   | )      |                                   | $      | (109,184   | )                                     |   | $      | (1,278,008                            | )      |   | $ | (557,313 | ) |
|                              |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
| NET      (LOSS) PER COMMON SHARE  |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
|                              |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
| Basic      and diluted            |   | $                                      | (0.03      | )      |                                   | $      | (0.01      | )                                     |   | $      | (0.06                                 | )      |   | $ | (0.03 | ) |
|                              |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
| WEIGHTED      AVERAGE NUMBER OF   |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
| COMMON      SHARES OUTSTANDING    |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
|                              |   |                                   |       |   |                                   |   |       |                                  |   |   |                                  |   |   |   |   |   |
| Basic      and diluted            |   |                                   | 22,760,575 |   |                                   |   | 21,364,312 |                                  |   |   | 21,826,349                            |   |   |   | 21,364,312 |   |

----

|                                         |   | Common      Stock |       |   | Additional      Paid-in |   |         | Accumulate |   |   | Total      Stockholders’ |   |
|----------------------------------------------|--------|-------------------|------------|--------|-------------------------|--------|--------------|------------|--------|--------|--------------------------------|--------|
|                                         |   | Shares            |       |   | Amount                  |   |         | Capital    |   |   | Deficit                        |   |   | Deficit |   |
|                                         |   |              |       |   |                    |   |         |       |   |   |                           |   |   |   |   |
| Balance,      June 30, 2007 as recapitalized |   |              | 21,364,312 |   |                    | $      | 21,      364 |       |   | $      | 4,630,962                      |   |   | $ | (5,562,490 | ) |   | $ | (910,164 | ) |
|                                         |   |              |       |   |                    |   |         |       |   |   |                           |   |   |   |   |   |   |   |   |   |
| Issuance      of common stock for debt       |   |              | 1,675,000  |   |                    |   | 1,675        |       |   |   | 1,673,325                      |   |   |   | - |   |   |   | 1,675,000 |   |
|                                         |   |              |       |   |                    |   |         |       |   |   |                           |   |   |   |   |   |   |   |   |   |
| Convertible      debt acquisition fees       |   |              | -          |   |                    |   | -            |       |   |   | (129,500                       | )      |   |   | - |   |   |   | (129,500 | ) |
|                                         |   |              |       |   |                    |   |         |       |   |   |                           |   |   |   |   |   |   |   |   |   |
| Issuance      of common stock for            |   |              |       |   |                    |   |         |       |   |   |                           |   |   |   |   |   |   |   |   |   |
| interest      expense                        |   |              | 87,174     |   |                    |   | 87           |       |   |   | 87,087                         |   |   |   | - |   |   |   | 87,174 |   |
|                                         |   |              |       |   |                    |   |         |       |   |   |                           |   |   |   |   |   |   |   |   |   |
| Conversion      of cashless options          |   |              | 1,000,000  |   |                    |   | 1,000        |       |   |   | 49,000                         |   |   |   | - |   |   |   | 50,000 |   |
|                                         |   |              |       |   |                    |   |         |       |   |   |                           |   |   |   |   |   |   |   |   |   |
|                                         |   |              |       |   |                    |   |         |       |   |   |                           |   |   |   |   |   |   |   |   |   |
| Net      (loss) for the nine months          |   |              |       |   |                    |   |         |       |   |   |                           |   |   |   |   |   |   |   |   |   |
| Ended      March 31, 2008                    |   |              | -          |   |                    |   | -            |       |   |   | -                              |   |   |   | (1,278,008 | ) |   |   | (1,278,008 | ) |
|                                         |   |              |       |   |                    |   |         |       |   |   |                           |   |   |   |   |   |   |   |   |   |
| Balance,      March 31, 2008                 |   |              | 24,126,486 |   |                    | $      | 24,126       |       |   | $      | 6,310,874                      |   |   | $ | (6,840,498 | ) |   | $ | (505,498 | ) |

----

|                                                                        |   | Nine      Months Ended March 31, 2008 |       |   | Nine      Months Ended March 31, 2007 |   |
|-----------------------------------------------------------------------------|--------|---------------------------------------|------------|--------|---------------------------------------|--------|
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                  |   |                                  |       |   |                                  |   |
| Net      (loss)                                                             |   | $                                     | (1,278,008 | )      |                                  | $      | (557,313 | ) |
| Adjustments      to reconcile net (loss) to net cash                        |   |                                  |       |   |                                  |   |   |   |
|   (used)      by operating activities:                            |   |                                  |       |   |                                  |   |   |   |
| Non-cash      compensation                                                  |   |                                  | 50,000     |   |                                  |   | - |   |
| Forgiveness      of debt                                                    |   |                                  | (18,447    | )      |                                  |   | - |   |
| Depreciation      expense                                                   |   |                                  | 13,000     |   |                                  |   | 16,919 |   |
| Amortization                                                                |   |                                  | 68,130     |   |                                  |   | 77,402 |   |
| Changes      in operating assets and liabilities:                           |   |                                  |       |   |                                  |   |   |   |
|      Accounts      receivable                      |   |                                  | (28,534    | )      |                                  |   | 4,095 |   |
|      Inventory                                     |   |                                  | (290,116   | )      |                                  |   | - |   |
|      Other      assets                             |   |                                  | (68,761    | )      |                                  |   | - |   |
|      Accounts      payable and accrued liabilities |   |                                  | (33,338    | )      |                                  |   | 226,554 |   |
|      Payroll      taxes payable                    |   |                                  | (39,100    | )      |                                  |   | (328 | ) |
|      Accrued      interest                         |   |                                  | 179,096    |   |                                  |   | - |   |
|      Deferred      income                          |   |                                  | (52,140    | )      |                                  |   | (2,985 | ) |
|   NET      CASH (USED) BY OPERATING ACTIVITIES                    |   |                                  | (1,498,218 | )      |                                  |   | (235,656 | ) |
|  CASH      FLOWS FROM INVESTING ACTIVITIES:                            |   |                                  |       |   |                                  |   |   |   |
| Purchase      of equipment                                                  |   |                                  | (8,025     | )      |                                  |   | - |   |
| Purchase      of investments                                                |   |                                  | -          |   |                                  |   | (20,000 | ) |
|   NET      CASH (USED) PROVIDED BY INVESTING ACTIVITES            |   |                                  | (8,025     | )      |                                  |   | (20,000 | ) |
|  CASH      FLOWS FROM FINANCING ACTIVITIES:                            |   |                                  |       |   |                                  |   |   |   |
| Proceeds      from note payable, net of fees                                |   |                                  | 800,500    |   |                                  |   | 50,000 |   |
| Repayments      of notes payable                                            |   |                                  | (333,954   | )      |                                  |   | (27,693 | ) |
|   NET      CASH PROVIDED BY FINANCING ACTIVITES                   |   |                                  | 466,546    |   |                                  |   | 22,307 |   |
|                                                                        |   |                                  |       |   |                                  |   |   |   |
| NET      INCREASE (DECREASE) IN CASH                                        |   |                                  |       |   |                                  |   |   |   |
| AND      CASH EQUIVALENTS                                                   |   |                                  | (1,039,697 | )      |                                  |   | (233,349 | ) |
| CASH      AND CASH EQUIVALENTS                                              |   |                                  |       |   |                                  |   |   |   |
| AT      THE BEGINNING OFTHE      PERIOD                                     |   |                                  | 1,229,978  |   |                                  |   | 250,147 |   |
| CASH      AND CASH EQUIVALENTS                                              |   |                                  |       |   |                                  |   |   |   |
| AT      THE END OF THE PERIOD                                               |   | $                                     | 190,281    |   |                                  | $      | 16,798 |   |

----

|                                                                     |   | Nine      Months Ended March 31, 2008 |      |   | Nine      Months Ended March 31, 2007 |   |
|--------------------------------------------------------------------------|--------|---------------------------------------|-----------|--------|---------------------------------------|--------|
|                                                                     |   |                                  |      |   |                                  |   |
| SUPPLEMENTAL      DISCLOSURE OF                                          |   |                                  |      |   |                                  |   |
| CASH      FLOW INFORMATION                                               |   |                                  |      |   |                                  |   |
|                                                                     |   |                                  |      |   |                                  |   |
| Interest      paid                                                       |   | $                                     | 39,887    |   |                                  | $      | 7,112 |   |
| Taxes      paid                                                          |   | $                                     | 1,600     |   |                                  | $      | - |   |
|                                                                     |   |                                  |      |   |                                  |   |   |   |
| SCHEDULE      OF NON-CASH INVESTING AND                                  |   |                                  |      |   |                                  |   |   |   |
| FINANCING      ACTIVITIES:                                               |   |                                  |      |   |                                  |   |   |   |
|                                                                     |   |                                  |      |   |                                  |   |   |   |
| Issuance      of 1,675,000 shares of common stock for debt    conversion |   | $                                     | 1,675,000 |   |                                  | $      | - |   |
|                                                                     |   |                                  |      |   |                                  |   |   |   |
| Issuance      of 87,174 shares of common stock for interestexpense       |   | $                                     | 87,174    |   |                                  | $      | - |   |

----

----

----

|                 |   | March      31, 2008 |    |   | June      30, 2007 |   |
|----------------------|--------|---------------------|---------|--------|--------------------|--------|
|                 |   |                |    |   |               |   |
| Raw      materials   |   | $                   | 173,067 |   |               | $      | 107,123 |   |
| Work      in process |   |                | 122,405 |   |               |   | 121,039 |   |
| Finished      goods  |   |                | 222,806 |   |               |   | - |   |
|                 |   |                |    |   |               |   |   |   |
| Total                |   | $                   | 518,278 |   |               | $      | 228,162 |   |

----

|                               |   | March      31, 2008 |     |   | June      30, 2007 |   |
|------------------------------------|--------|---------------------|----------|--------|--------------------|--------|
|                               |   |                |     |   |               |   |
| Furniture      and fixtures        |   | $                   | 4,525    |   |               | $      | 4,525 |   |
| Demonstration      Units           |   |                | 163,514  |   |               |   | 155,489 |   |
|                               |   |                | 168,039  |   |               |   | 160,014 |   |
|                               |   |                |     |   |               |   |   |   |
| Less      accumulated depreciation |   |                | (135,083 | )      |               |   | (122,083 | ) |
|                               |   |                |     |   |               |   |   |   |
| Total                              |   | $                   | 32,956   |   |               | $      | 37,931 |   |

|                               |   | March      31, 2008 |      |   | June      30, 2007 |   |
|------------------------------------|--------|---------------------|-----------|--------|--------------------|--------|
|                               |   |                |      |   |               |   |
| Intellectual      property         |   | $                   | 1,816,827 |   |               | $      | 1,816,827 |   |
|                               |   |                |      |   |               |   |   |   |
| Less      accumulated amortization |   |                | (498,714  | )      |               |   | (430,584 | ) |
|                               |   |                |      |   |               |   |   |   |
| Total                              |   | $                   | 1,318,113 |   |               | $      | 1,386,243 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | March      31, 2008 |       |   | June      30, 2007 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|------------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                |       |   |               |   |
| Loan      payable to a bank, due in monthly installments of $2,500, due May 29,      2008.                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                   | 7,500      |   |               | $      | 42,796 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                |       |   |               |   |   |   |
| Lease      payable due in monthly installments of $1,417, secured by equipment, due      August 16, 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                | 3,005      |   |               |   | 14,343 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                |       |   |               |   |   |   |
| Convertible      note payable, annual interest rates range from 8% to 4%, due March 8,      2009, convertible into common stock at a rate of the lower of $2.50 per      share or the rate of the Company’s most current equity      financing.                                                                                                                                                                                                                                                                                    |   |                | 750,000    |   |               |   | 750,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                |       |   |               |   |   |   |
| Convertible      notes payable, annual interest rate of 10% per annum compounded      annually , due dates range from May 15, 2008 to May 7, 2010. The      principal is convertible at $1.00 per share, subject to proportionate      adjustment for any stock split, combination, stock dividend,      recapitalization or similar transaction effected by the      Company.  Therefore, at March 31, 2008, the notes payable were      convertible at $0.50 per share for a total of 2,000,000 shares of common      stock. |   |                | 1,000,000  |   |               |   | 1,745,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                |       |   |               |   |   |   |
| Note      payable to a private company, 10% interest per annum, and entire balance      in default as of June 30, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                | -          |   |               |   | 250,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                |       |   |               |   |   |   |
| Note      payable to an individual, 10% interest per annum, due December 31,      2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                | -          |   |               |   | 25,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                |       |   |               |   |   |   |
| Note      payable to a shareholder, 10% interest per annum, due December 31,      2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                | -          |   |               |   | 24,600 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                |       |   |               |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                | 1,760,505  |   |               |   | 2,851,739 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                |       |   |               |   |   |   |
| Less      current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                | (1,760,505 | )      |               |   | (1,864,675 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                |       |   |               |   |   |   |
| Notes      payable, net of current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                   | -          |   |               | $      | 987,064 |   |

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| Exhibit      Number |   | Description                                                                                                                                                                                                                  |
|---------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |   |                                                                                                                                                                                                                         |
| 31.1                |   | Certification      by Chief Executive Officer and Chief Financial Officer required by Rule      13a-14(a) or Rule 15d-14(a) of the Exchange Act.                                                                             |
|                |   |                                                                                                                                                                                                                         |
| 32.1                |   | Certification      by Chief Executive Officer and Chief Financial Officer, required by Rule      13a-14(b) or Rule 15d-14(b) of the Exchange Act and Section 1350 of      Chapter 63 of Title 18 of the United States  Code. |

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|                                  | PROVISION      HOLDING, INC. |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------------------------------------|------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                  |                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
| June      17 , 2008    | By:                          | /s/ Curt      Thornton                                                                       |   |
|                                  |                         | Curt      Thornton                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|                                  |                         | Chief      Executive Officer (Principal Executive Officer) and                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|                                  |                         | Chief      Financial Officer (Principal Financial Officer and                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|                                  |                         | Accounting      Officer) and Director                                                                                                                                                                                                                                                                                                                                                                                                                           |   |