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**UNITED      STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.      20549**

**FORM      10-QSB**

** **

| **HEALTH                DISCOVERY CORPORATION**                                                 |
|-------------------------------------------------------------------------------------------------|
| (Exact                name of small business issuer as specified in its                charter) |

| Texas                                                                         |   | 74-3002154                                       |
|-------------------------------------------------------------------------------|--------|--------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) |   | (IRS                Employer Identification No.) |
|                                                                          |   |                                             |
| 5501                1⁄2 Abercorn StreetSavannah, Georgia                   |   | 31405                                            |
| (Address                of principal executive offices)                       |   | (Zip                Code)                        |

| 912-352-7488                                                                                                                        |
|-------------------------------------------------------------------------------------------------------------------------------------|
| (Issuer’s                telephone number, including area code)                                                               |
|                                                                                                                                |
|                                                                                                                                |
|                                                                                                                                |
|                                                                                                                                |
| (Former                name, former address and former fiscal year, if changed since the                last                report) |

**APPLICABLE      ONLY TO ISSUERS INVOLVED IN BANKRUPTCYPROCEEDINGS DURING THE PRECEDING FIVE      YEARS**

**APPLICABLE      ONLY TO CORPORATE ISSUERS**

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**TABLE      OF CONTENTS**

| PART                I  | FINANCIAL                INFORMATION                                                                                           | Page   |
|------------------------|--------------------------------------------------------------------------------------------------------------------------------|--------|
|                   |                                                                                                                           |   |
| Item                1. | Financial                Statements                                                                                            |   |
|                   |                                                                                                                           |   |
|                   | Balance                Sheet                                                                                                   | 1      |
|                   |                                                                                                                           |   |
|                   | Statements                of Operations                                                                                        | 2      |
|                   |                                                                                                                           |   |
|                   | Statements                of Cash Flows                                                                                        | 3      |
|                   |                                                                                                                           |   |
|                   | Notes                to Financial Statements                                                                                   | 4-8    |
|                   |                                                                                                                           |   |
| Item                2. | Management’s                Discussion and Analysis                Of Financial Condition and Results of Operation  | 8-12   |
|                   |                                                                                                                           |   |
| Item                3. | Controls                and Procedures                                                                                         | 13     |
|                   |                                                                                                                           |   |
| PART                II | OTHER                INFORMATION                                                                                               |   |
|                   |                                                                                                                           |   |
| Item                1. | Legal                Proceedings                                                                                               | 13     |
|                   |                                                                                                                           |   |
| Item                2. | Unregistered                Sales of Equity Securities and Use of Proceeds                                                     | 13     |
|                   |                                                                                                                           |   |
| Item                6. | Exhibits                                                                                                                       | 14     |
|                   |                                                                                                                           |   |
|                   | Signatures                                                                                                                     | 16     |

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**HEALTH      DISCOVERY CORPORATION**

| Assets                                                                                                                           |   |                             |       |
|----------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|------------|
|                                                                                                                             |   |                             |       |
|                                                                                                                             |   | September                30,2006 |       |
| Current                Assets                                                                                                    |   |                             |       |
| Cash                                                                                                                             |   | $                                | 817,530    |   |
| Accounts                Receivable                                                                                               |   |                             | 20,000     |   |
| Prepaid                Expenses and Other Assets                                                                                 |   |                             | 48,767     |   |
| Total                Current Assets                                                                                              |   |                             | 886,297    |   |
| Equipment,                Less Accumulated Depreciation of $11,929                                                               |   |                             | 8,286      |   |
| Other                Assets                                                                                                      |   |                             |       |   |
| Patents,                Less Accumulated Amortization of $614,574                                                                |   |                             | 3,371,219  |   |
|                                                                                                                             |   |                             |       |   |
| Total                Assets                                                                                                      |   | $                                | 4,265,802  |   |
|                                                                                                                             |   |                             |       |   |
| Liabilities                and Stockholders’ Equity                                                                        |   |                             |       |   |
|                                                                                                                             |   |                             |       |   |
| Current                Liabilities                                                                                               |   |                             |       |   |
| Accounts                Payable - Trade                                                                                     |   | $                                | 184,636    |   |
| Accrued                Liabilities                                                                                               |   |                             | 181,164    |   |
| Deferred                Revenue                                                                                                  |   |                             | 9,167      |   |
|                                                                                                                             |   |                             |       |   |
| Total                Current Liabilities                                                                                         |   |                             | 374,967    |   |
|                                                                                                                             |   |                             |       |   |
| Long-Term                Debt                                                                                                    |   |                             | 321,911    |   |
| Convertible                Notes Payable                                                                                         |   |                             | 665,643    |   |
| Notes                Payable                                                                                                     |   |                             | 1,000,000  |   |
|                                                                                                                             |   |                             |       |   |
| Total                Liabilities                                                                                                 |   |                             | 2,362,521  |   |
|                                                                                                                             |   |                             |       |   |
| Commitments                                                                                                                      |   |                             |       |   |
|                                                                                                                             |   |                             |       |   |
| Stockholders’                Equity                                                                                        |   |                             |       |   |
| Common                Stock, No Par Value, 200,000,000 Shares Authorized116,393,384                Shares Issued and Outstanding |   |                             | 10,469,590 |   |
| Accumulated                Deficit                                                                                               |   |                             | (8,566,309 | ) |
|                                                                                                                             |   |                             |       |   |
| Total                Stockholders’ Equity                                                                                  |   |                             | 1,903,281  |   |
|                                                                                                                             |   |                             |       |   |
| Total                Liabilities and Stockholders’ Equity                                                                  |   | $                                | 4,265,802  |   |

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**HEALTH      DISCOVERY CORPORATION**

|                                                      |   | Three                Months Ended September 30,2006 |        | Three                Months Ended September 30, 2005 |   | Nine                Months Ended September 30, 2006 |   | Nine                Months Ended September 30, 2005 |        |
|-----------------------------------------------------------|--------|-----------------------------------------------------|-------------|------------------------------------------------------|--------|-----------------------------------------------------|--------|-----------------------------------------------------|-------------|
| Revenues:                                                 |   |                                                |        |                                                 |   |                                                |   |                                                |        |
| Licensing                                                 |   | $                                                   | 20,833      |                                                 |   | —                                             |   |                                                | 195,833     |   |   | — |   |
| Total                Revenues                             |   |                                                | 20,833      |                                                 |   | —                                             |   |                                                | 195,833     |   |   | — |   |
|                                                      |   |                                                |        |                                                 |   |                                                |   |                                                |        |   |   |   |   |
| Cost                of Sales:                             |   |                                                |        |                                                 |   |                                                |   |                                                |        |   |   |   |   |
| Internal                Development                       |   |                                                | 9,480       |                                                 |   | —                                             |   |                                                | 19,134      |   |   | — |   |
|                                                      |   |                                                |        |                                                 |   |                                                |   |                                                |        |   |   |   |   |
|                                                      |   |                                                |        |                                                 |   |                                                |   |                                                |        |   |   |   |   |
| Total                Cost of Sales                        |   |                                                | 9,480       |                                                 |   | —                                             |   |                                                | 19,134      |   |   | — |   |
| Gross                Profit                               |   |                                                | 11,353      |                                                 |   | —                                             |   |                                                | 176,699     |   |   | — |   |
|                                                      |   |                                                |        |                                                 |   |                                                |   |                                                |        |   |   |   |   |
| Operating                Expenses:                        |   |                                                |        |                                                 |   |                                                |   |                                                |        |   |   |   |   |
| Amortization                                              |   |                                                | 65,680      |                                                 |   | 65,728                                              |   |                                                | 197,039     |   |   | 185,325 |   |
| Professional                and Consulting Fees           |   |                                                | 178,681     |                                                 |   | 448,796                                             |   |                                                | 925,946     |   |   | 1,280,895 |   |
| Compensation                                              |   |                                                | 51,587      |                                                 |   | 259,080                                             |   |                                                | 611,609     |   |   | 628,235 |   |
| Other                General and Administrative Expenses  |   |                                                | 111,859     |                                                 |   | 139,074                                             |   |                                                | 447,274     |   |   | 543,605 |   |
| Total                Operating Expenses                   |   |                                                | 407,807     |                                                 |   | 912,678                                             |   |                                                | 2,181,868   |   |   | 2,638,060 |   |
|                                                      |   |                                                |        |                                                 |   |                                                |   |                                                |        |   |   |   |   |
| Loss                From Operations                       |   |                                                | (396,454    | )                                                    |   | (912,678                                            | )      |                                                | (2,005,169  | ) |   | (2,638,060 | ) |
|                                                      |   |                                                |        |                                                 |   |                                                |   |                                                |        |   |   |   |   |
| Other                Income (Expense)                     |   |                                                |        |                                                 |   |                                                |   |                                                |        |   |   |   |   |
| Interest                Income                            |   |                                                | 3,946       |                                                 |   | 103                                                 |   |                                                | 11,945      |   |   | 103 |   |
| Gains                on Restructuring of Accounts Payable |   |                                                | 20,318      |                                                 |   | —                                             |   |                                                | 97,864      |   |   | — |   |
| Interest                Expense                           |   |                                                | (79,698     | )                                                    |   | (11,105                                             | )      |                                                | (120,550    | ) |   | (42,647 | ) |
| Total                Other Income (Expense)               |   |                                                | (55,434     | )                                                    |   | (11,002                                             | )      |                                                | (10,741     | ) |   | (42,544 | ) |
|                                                      |   |                                                |        |                                                 |   |                                                |   |                                                |        |   |   |   |   |
| Net                Loss                                   |   | $                                                   | (451,888    | )                                                    |   | (923,680                                            | )      |                                                | (2,015,910  | ) |   | (2,680,604 | ) |
|                                                      |   |                                                |        |                                                 |   |                                                |   |                                                |        |   |   |   |   |
| Weighted                Average Outstanding Shares        |   |                                                | 116,220,884 |                                                 |   | 114,156,189                                         |   |                                                | 115,746,384 |   |   | 99,739,934 |   |
|                                                      |   |                                                |        |                                                 |   |                                                |   |                                                |        |   |   |   |   |
| Loss                Per Share                             |   | $                                                   | (.00        | )                                                    |   | (.01                                                | )      |                                                | (.02        | ) |   | (.03 | ) |

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**HEALTHDISCOVERY      CORPORATION**

**Statements      of Cash Flows**

|                                                                                                                                     |   | Nine                MonthsEnded September 30, 2006 |       | Nine                Months EndedSeptember 30, 2005 |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|------------|----------------------------------------------------|--------|
| Cash                Flows From Operating Activities:                                                                                     |   |                                               |       |                                               |   |
| Net                Loss                                                                                                                  |   | $                                                  | (2,015,910 | )                                                  |   | (2,680,604 | ) |
| Adjustments                to Reconcile Net Loss to Net Cash Used by Operating                Activities:                                |   |                                               |       |                                               |   |   |   |
| Noncash                Compensation                                                                                                      |   |                                               | 250,037    |                                               |   | 120,000 |   |
| Services                Exchanged for Warrants                                                                                           |   |                                               | 380,548    |                                               |   | — |   |
| Services                Exchanged for Common Stock                                                                                       |   |                                               | 61,917     |                                               |   | 341,876 |   |
| Interest                Expense Exchanged for Warrants                                                                                   |   |                                               | 55,400     |                                               |   | — |   |
| Increase                in Accounts Receivable                                                                                           |   |                                               | (20,000    | )                                                  |   | — |   |
| Increase                in Deferred Revenue                                                                                              |   |                                               | 9,167      |                                               |   | — |   |
| Gains                on Restructuring of Accounts Payable                                                                                |   |                                               | (97,864    | )                                                  |   | — |   |
| Depreciation                and Amortization                                                                                             |   |                                               | 202,308    |                                               |   | 188.643 |   |
| Increase                in Employee Advances                                                                                             |   |                                               | (12,764    | )                                                  |   | (7,716 | ) |
| Increase                in Prepaid Expenses and Other Assets                                                                             |   |                                               | (18,294    | )                                                  |   | (12,021 | ) |
| Decrease                in Accounts Payable –                Trade                                                                 |   |                                               | (83,336    | )                                                  |   | (3,020 | ) |
| Increase                (Decrease) in Accrued Liabilities                                                                                |   |                                               | 288,036    |                                               |   | (48,819 | ) |
|                                                                                                                                     |   |                                               |       |                                               |   |   |   |
| Net                Cash Used by Operating Activities                                                                                     |   |                                               | (1,000,755 | )                                                  |   | (2,101,661 | ) |
| Cash                Flows From Investing Activities:                                                                                     |   |                                               |       |                                               |   |   |   |
| Purchase                of Equipment                                                                                                     |   |                                               | (502       | )                                                  |   | (6,813 | ) |
| Amounts                Paid to Acquire Patents                                                                                           |   |                                               | —    |                                               |   | (293,738 | ) |
|                                                                                                                                     |   |                                               |       |                                               |   |   |   |
| Net                Cash Used by Investing Activities                                                                                     |   |                                               | (502       | )                                                  |   | (300,551 | ) |
|                                                                                                                                     |   |                                               |       |                                               |   |   |   |
| Cash                Flows From Financing Activities:                                                                                     |   |                                               |       |                                               |   |   |   |
| Repayments                of Notes Payable                                                                                               |   |                                               | (26,780    | )                                                  |   | (538,246 | ) |
| Proceeds                from Sales of Common Stock, Net                                                                                  |   |                                               | 126,400    |                                               |   | 3,815,703 |   |
| Proceeds                from Borrowing                                                                                                   |   |                                               | 1,000,000  |                                               |   | — |   |
|                                                                                                                                     |   |                                               |       |                                               |   |   |   |
| Net                Cash Provided by Financing Activities                                                                                 |   |                                               | 1,099,620  |                                               |   | 3,277,457 |   |
|                                                                                                                                     |   |                                               |       |                                               |   |   |   |
| Net                Increase in Cash                                                                                                      |   |                                               | 98,363     |                                               |   | 875,245 |   |
|                                                                                                                                     |   |                                               |       |                                               |   |   |   |
| Cash,                at Beginning of Period                                                                                              |   |                                               | 719,167    |                                               |   | 163,477 |   |
|                                                                                                                                     |   |                                               |       |                                               |   |   |   |
| Cash,                at End of Period                                                                                                    |   | $                                                  | 817,530    |                                               |   | 1,038,722 |   |
|                                                                                                                                     |   |                                               |       |                                               |   |   |   |
| Non-Cash                Investing and Financing Transactions:                                                                            |   |                                               |       |                                               |   |   |   |
| Patents                Purchased Using Debt                                                                                              |   | $                                                  | —    |                                               |   | 185,272 |   |
| Stock                and Warrants Issued for Professional and Consulting                Services                                         |   | $                                                  | 442,465    |                                               |   | 341,876 |   |
| Non-cash                Compensation Warrants and Options                                                                                |   | $                                                  | 250,037    |                                               |   | 120,000 |   |
| Non-cash                Stock Issuance Costs                                                                                             |   | $                                                  | —    |                                               |   | 168,795 |   |
| Warrants                Issued in Restructuring of Accounts Payable                                                                      |   | $                                                  | 55,454     |                                               |   | — |   |
| Stock                Issued for Convertible Notes Payable                                                                                |   | $                                                  | —    |                                               |   | 609,575 |   |
| Non-Cash                Interest Expense Amortization of Warrants issued in connection with                debt                agreement |   | $                                                  | 55,400     |                                               |   | — |   |
| Supplemental                disclosures of cash flow information:                                                                        |   |                                               |       |                                               |   |   |   |
| Cash                Paid for Interest                                                                                                    |   | $                                                  | 2,764      |                                               |   | 18,066 |   |

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**HEALTH      DISCOVERY CORPORATION**

**Notes      to Financial Statements **

**Note      A - BASIS OF PRESENTATION**

**RECLASSIFICATIONS**

**Note      B - REVENUE RECOGNITION**

**Note      C - NET LOSS PER SHARE**

**Note      D - STOCK-BASED      COMPENSATION**

*Share-Based      Payment*
*Accounting      for Stock Issued to Employees*

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**HEALTH      DISCOVERY CORPORATION**

**Notes      to Financial Statements, continued**

**Note      D - STOCK-BASED COMPENSATION, continued**

*Accounting for Stock-Based Compensation*

|                                                                                                                          |   | Three                monthsended September 30, 2005 |     | Nine                monthsended September 30, 2005 |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|----------|----------------------------------------------------|--------|
| Net                loss as reported                                                                                           |   | $                                                   | (923,680 | )                                                  | $      | (2,680,604 | ) |
| Deduct:                Stock-based Expense Determined Under Fair Value Based Method for                Employee Stock Options |   |                                                | —  |                                               |   | — |   |
| Proforma                Net Loss                                                                                              |   | $                                                   | (923,680 | )                                                  | $      | (2,680,604 | ) |
| Stock-based                Expense Included in Net Loss                                                                       |   | $                                                   | 223,600  |                                               | $      | 461,876 |   |
| Loss                Per Share:                                                                                                |   |                                                |     |                                               |   |   |   |
| Basic                - As Reported                                                                                            |   | $                                                   | (.01     | )                                                  | $      | (.03 | ) |
| Basic                - Proforma                                                                                               |   | $                                                   | (.01     | )                                                  | $      | (.03 | ) |

|                                           |   | Option                Shares |       | Weighted                Average Exercise Price |   |
|------------------------------------------------|--------|------------------------------|------------|------------------------------------------------|--------|
| Outstanding,                January 1, 2005    |   |                         | 3,000,000  |                                           | $      | 0.08 |   |
| Granted                                        |   |                         | 1,500,000  |                                           |   | 0.10 |   |
| Forfeited                                      |   |                         | (2,000,000 | )                                              |   | 0.10 |   |
| Outstanding,                December 31, 2005  |   |                         | 2,500,000  |                                           | $      | 0.08 |   |
| Granted                                        |   |                         | 2,000,000  |                                           |   | 0.11 |   |
| Exercised                                      |   |                         | (600,000   | )                                              |   | 0.01 |   |
| Forfeited                                      |   |                         | (400,000   | )                                              |   | 0.10 |   |
| Outstanding,                September 30, 2006 |   |                         | 3,500,000  |                                           | $      | 0.11 |   |

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**HEALTH      DISCOVERY CORPORATION**

**Notes      to Financial Statements, continued**

**Note      D      - STOCK-BASED      COMPENSATION, continued**

| **Exercise                Prices** |   | **Number                Outstanding** |       | **Weighted-AverageRemainingContractualLife                (years)** |   | **NumberExercisable** |   | **WeightedAverage                RemainingContractual Life (years) of                ExercisableWarrants** |       |
|------------------------------------|--------|---------------------------------------|------------|---------------------------------------------------------------------|--------|-----------------------|--------|------------------------------------------------------------------------------------------------------------|------------|
| $0.01                              |   |                                  | 1,200,000  |                                                                |   | 1                     |   |                                                                                                       | 1,200,000  |   |   | 1 |   |
| $0.08                              |   |                                  | 370,000    |                                                                |   | 1                     |   |                                                                                                       | 370,000    |   |   | 1 |   |
| $0.10                              |   |                                  | 1,365,000  |                                                                |   | 3                     |   |                                                                                                       | 1,065,000  |   |   | 3 |   |
| $0.11                              |   |                                  | 1,000,000  |                                                                |   | 2                     |   |                                                                                                       | 500,000    |   |   | 2 |   |
| $0.12                              |   |                                  | 150,000    |                                                                |   | 2                     |   |                                                                                                       | 150,000    |   |   | 2 |   |
| $0.13                              |   |                                  | 5,500,000  |                                                                |   | 3                     |   |                                                                                                       | 3,000,000  |   |   | 2 |   |
| $0.15                              |   |                                  | 1,000,000  |                                                                |   | 2                     |   |                                                                                                       | 1,000,000  |   |   | 2 |   |
| $0.16                              |   |                                  | 10,000,000 |                                                                |   | 3                     |   |                                                                                                       | 1,000,000  |   |   | 3 |   |
| $0.20                              |   |                                  | 500,000    |                                                                |   | 2                     |   |                                                                                                       | 500,000    |   |   | 2 |   |
| $0.22                              |   |                                  | 500,000    |                                                                |   | 3                     |   |                                                                                                       | 500,000    |   |   | 2 |   |
| $0.24                              |   |                                  | 32,546,250 |                                                                |   | 2                     |   |                                                                                                       | 32,546,250 |   |   | 2 |   |
| $0.35                              |   |                                  | 15,235,000 |                                                                |   | 1                     |   |                                                                                                       | 15,235,000 |   |   | 1 |   |
| Total                              |   |                                  | 69,366,250 |                                                                |   |                  |   |                                                                                                       | 57,066,250 |   |   |   |   |

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**HEALTH      DISCOVERY CORPORATION**

**Notes      to Financial Statements, continued**

**Note      E - DEBT RESTRUCTURING**

**Note      F - PATENTS**

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**Note      G - STOCKHOLDERS’ EQUITY**

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

**Corporate      Overview **

*First-Phase      Biomarker Discovery*

*First      Phase Biomarker Discovery*

**Three      Months Ended September 30, 2006 Compared with Three Months Ended September      30,      2005**

**Revenue**

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**Cost      of Sales and Gross Margin**

**Operating      and Other Expenses**

**Loss      from Operations**

**Other      Income and Expense**

**Net      Loss **

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**Nine      Months Ended September 30, 2006 Compared with Nine Months Ended September 30,      2005**

**Revenue**

**Cost      of Sales and Gross Margin**

**Operating      and Other Expenses**

**Loss      from Operations**

**Other      Income and Expense**

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**Net      Loss **

**Liquidity      and Capital Resources**

|   |                                     |   | Total  |      | Less                than1 Year |   | 1-3Years |   |
|--------|------------------------------------------|--------|--------|-----------|--------------------------------|--------|----------|--------|
|   | Accounts                Payable Deferred |   | $      | 151,990   |                           | $      | 151,990  |   | $ | — |   |
|   | Deferred                Compensation     |   |   | 15,000    |                           |   | 15,000   |   |   | — |   |
|   | Convertible                Notes Payable |   |   | 665,643   |                           |   | —  |   |   | 665,643 |   |
|   | Term                Debt                 |   |   | 321,911   |                           |   | —  |   |   | 321,911 |   |
|   | Promissory                Note           |   |   | 1,000,000 |                           |   | —  |   |   | 1,000,000 |   |
|   | Total                                    |   | $      | 2,154,544 |                           | $      | 166,990  |   | $ | 1,987,554 |   |

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**Off-Balance      Sheet Arrangements**

**Subsequent      Events and Developments**

**Forward-Looking      Statements**

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**Item      3. Controls and Procedures.**

**PART      II—OTHER INFORMATION**

**Item      1. Legal Proceedings.**

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

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**Item      6. Exhibits.**

| 3.1                    |   | Articles                of Incorporation. Registrant incorporates by reference Exhibit 3.1                to                Registration Statement on Form SB-2, filed June 4,                2001.                                                                                                                                         |
|------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 3.1                (a) |   | Articles                of Amendment to Articles of Incorporation Registrant incorporates                by                reference Exhibit 2.2 to Form10-QSB, filed November 14,                2001.                                                                                                                                     |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 3.1(b)                 |   | Articles                of Amendment to Articles of Incorporation changing Registrant name                from                Direct Wireless Communications, Inc., to Health Discovery Corporation.                Registrant incorporates by reference Exhibit 3.1 (b) to Form 10-KSB,                filed                March 3, 2004. |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 3.2                    |   | By-Laws.                Registrant incorporates by reference Exhibit 3.2 to Registration                Statement                on Form SB-2, filed June 4, 2001.                                                                                                                                                                          |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 4.1                    |   | Copy                of Specimen Certificate for shares of common stock. Registrant                incorporates by reference Exhibit 4.1 to Registration Statement on                Form                SB-2, filed June 4, 2001.                                                                                                           |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 4.1                (b) |   | Copy                of Specimen Certificate for shares of common stock. Registrant                incorporates by reference Exhibit 4.1 (b) to Form 10-KSB, filed March                30,                2004.                                                                                                                             |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 4.2                    |   | Excerpt                from By-Laws. Registrant incorporates by reference Exhibit 4.2 to                Registration Statement on Form SB-2, filed June 4,                2001.                                                                                                                                                             |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 4.2(A)                 |   | Corrected                Article 3.02 of By-Laws. Registrant incorporates by reference Exhibit                4.2(A) to Amendment No. 2 to Registration Statement on Form SB-2,                filed                August 15, 2001.                                                                                                        |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 4.3(a)                 |   | Non                Qualified Stock Option Agreements dated October 30, 2003 between                registrant and David Cooper. Registrant incorporates by reference                Exhibit                4.3(a) to Form 10-KSB, filed March 30, 2004.                                                                                     |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 10.1                   |   | Asset                Purchase Agreement between Registrant and Barnhill Group LLC, dated                September 15, 2003. Registrant incorporates by reference Exhibit                10.2 to                Form 10-KSB, filed March 30, 2004.                                                                                           |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 10.2                   |   | Asset                Purchase Agreement between Registrant and Fractal Genomics LLC, dated                December 30, 2003. Registrant incorporates by reference Exhibit 10.3                to                Form 10-KSB, filed March 30, 2004.                                                                                          |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 10.3                   |   | Employment                Agreement with Stephen Barnhill. Registrant incorporates by reference                Exhibit 10.3 to Form 10-KSB, filed April 19, 2005. *                                                                                                                                                                         |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 10.4                   |   | Employment                Agreement with David Cooper. Registrant incorporates by reference                Exhibit                10.4 to Form 10-KSB, filed April 19, 2005. *                                                                                                                                                              |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 10.5                   |   | Form                of Asset Purchase Agreement between the Registrant and the Sellers                of the                SVM Portfolio and related assets. Registrant incorporates by reference                Exhibit 10.5 to form 10-KSB, filed March 30, 2004.                                                                        |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 10.6                   |   | Form                of Securities Purchase Agreement. Registrant incorporates by reference                Exhibit 10.6 to Form 10-KSB, filed April 19, 2005.                                                                                                                                                                                |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 10.7                   |   | Form                of Warrant. Registrant incorporates by reference Exhibit 10.7 to                Form                10-KSB, filed April 19, 2005.                                                                                                                                                                                       |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 10.8                   |   | Form                of Securities Purchase Agreement. Registrant incorporates by reference                Exhibit 10.8 to Form 10-KSB, filed April 19, 2005.                                                                                                                                                                                |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 10.9                   |   | Form                of Warrant. Registrant incorporates by reference Exhibit 10.9 to                Form                10-KSB, filed April 19, 2005.                                                                                                                                                                                       |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 10.10                  |   | Form                of Amendment to Securities Purchase Agreement. Registrant incorporates                by                reference Exhibit 10.10 to Form SB-2/A, filed December 14,                2005.                                                                                                                                 |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 10.11                  |   | Employment                Agreement with Daniel R. Furth, dated as of December 5, 2005. Registrant                incorporates by reference Exhibit 10.11 to Form SB-2/A, filed December                14,                2005.                                                                                                            |
|                   |   |                                                                                                                                                                                                                                                                                                                                        |
| 10.12                  |   | Employment                Agreement with Robert S. Braswell IV, dated as of January 1, 2006.                Registrant incorporates by reference Exhibit 99.1 to Form 8-K, filed                February 2, 2006.                                                                                                                           |

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| 10.13  |   | Form                of Amendment to Promissory Note. Registrant incorporates by reference                Exhibit 99.1 to form 8-K, filed January 3, 2006.                                                                                                                                  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                       |
| 10.14  |   | Promissory                Note by the Company in favor of William F. Quirk, Jr. Registrant                incorporates by reference Exhibit 99.1 to Form 8-K, filed September                5,                2006.                                                                       |
|   |   |                                                                                                                                                                                                                                                                                       |
| 10.15  |   | Warrant                by the Company in favor of William F. Quirk, Jr. Registrant incorporates                by reference Exhibit 99.2 to Form 8-K, filed September 5,                2006.                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                       |
| 10.16  |   | Second                Amendment to the Employment Agreement between the Company and Stephen                D.                Barnhill, M.D. dated September 1, 2006. Registrant incorporates by                reference Exhibit 99.3 to Form 8-K, filed September 5,                2006. |
|   |   |                                                                                                                                                                                                                                                                                       |
| 10.17  |   | Form                of Second Amendment to Promissory Note. Registrant incorporates by                reference Exhibit 99.4 to Form 8-K, filed September 5,                2006.                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                       |
| 31.1   |   | Rule                13a-14(a)/15(d)-14(a) Certifications of Chief Executive                Officer.                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                       |
| 31.2   |   | Rule                13a-14(a)/15(d)-14(a) Certifications of Principal Financial                Officer.                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                       |
| 32.1   |   | Section                1350 Certification of Chief Executive Officer.                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                       |
| 32.2   |   | Section                1350 Certification of Principal Financial                Officer.                                                                                                                                                                                                   |

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SIGNATURES

|   |                                              |                                                | Health              Discovery              CorporationRegistrant |
|--------|---------------------------------------------------|-----------------------------------------------------|------------------------------------------------------------------|
|   | Date:              November              14, 2006 |                                                     | /s/ Stephen              D. Barnhill M.D.                   |
|   |                                              | Printed              Name: Stephen D. Barnhill M.D. |
|   |                                              | Title:              Chief Executive Officer         |
|   |                                              |                                                    |                                          |
|--------|---------------------------------------------------|---------------------------------------------------------|-----------------------------------------------|
|   | Date:              November              14, 2006 |                                                         | /s/              Daniel R.              Furth |
|   |                                              | Printed              Name: Daniel R. Furth              |
|   |                                              | Title:              Chief Financial Officer / Secretary |

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