----

----

|                                                          |                                |
|---------------------------------------------------------------|-------------------------------------|
| Nevada                                                        | 88-0350448                          |
| (State or other jurisdiction ofincorporation or organization) | (I.R.S. EmployerIdentification No.) |

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TABLE OF CONTENTS

| PART I FINANCIAL INFORMATION |   |
|-----------------------------------|--------|
|                              |   |   |   |
| Item 1                            |   | Financial Statements | 3 |
|                              |   |   |   |
|                              |   | Condensed Consolidated Balance Sheets as of September 30, 2010 (unaudited) and December 31, 2009 | 3 |
|                              |   |   |   |
|                              |   | Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2010 and 2009 (unaudited) | 4 |
|                              |   |   |   |
|                              |   | Condensed Consolidated Statement of Stockholders’ Equity for the Nine Months Ended September 30, 2010 (unaudited) | 5 |
|                              |   |   |   |
|                              |   | Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2010 and 2009 (unaudited) | 6 |
|                              |   |   |   |
|                              |   | Notes to Condensed Consolidated Financial Statements (unaudited) | 8 |
|                              |   |   |   |
| Item 2                            |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 12 |
|                              |   |   |   |
| Item 4                            |   | Controls and Procedures | 16 |
|                              |   |   |   |
| PART II OTHER INFORMATION    |   |
|                              |   |   |   |
| Item 1A                           |   | Risk Factors | 17 |
|                              |   |   |   |
| Item 6                       |   | Exhibits | 20 |
|                              |   |   |   |
| SIGNATURES                        | 21     |

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Table of Contents

PART I – FINANCIAL INFORMATION

| ITEM 1. | FINANCIAL STATEMENTS. |
|---------|-----------------------|

| AUXILIO, INC. AND SUBSIDIARIES                                                                                                                                                     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CONDENSED CONSOLIDATED BALANCE SHEETS                                                                                                                                              |
|                                                                                                                                                                               |   |
|                                                                                                                                                                               |   |
|                                                                                                                                                                               |   | SEPTEMBER 30, 2010 |   |   | DECEMBER 31, 2009 |   |
|                                                                                                                                                                               |   | (unaudited) |   |   |   |   |
|                                                                                                                                                                               |   |
| ASSETS                                                                                                                                                                             |   |
| Current assets:                                                                                                                                                                    |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                                                                          |   | $ | 1,305,478 |   |   | $ | 1,781,586 |   |
| Accounts receivable, net                                                                                                                                                           |   |   | 1,723,523 |   |   |   | 1,397,598 |   |
| Supplies                                                                                                                                                                           |   |   | 492,803 |   |   |   | 537,170 |   |
| Prepaid and other current assets                                                                                                                                                   |   |   | 176,698 |   |   |   | 93,246 |   |
| Total current assets                                                                                                                                                               |   |   | 3,698,502 |   |   |   | 3,809,600 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Property and equipment, net                                                                                                                                                        |   |   | 224,683 |   |   |   | 277,704 |   |
| Deposits                                                                                                                                                                           |   |   | 28,013 |   |   |   | 43,792 |   |
| Goodwill                                                                                                                                                                           |   |   | 1,517,017 |   |   |   | 1,517,017 |   |
| Total assets                                                                                                                                                                       |   | $ | 5,468,215 |   |   | $ | 5,648,113 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                               |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Current liabilities:                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                                                                                                                              |   | $ | 1,213,383 |   |   | $ | 1,246,880 |   |
| Accrued compensation and benefits                                                                                                                                                  |   |   | 475,774 |   |   |   | 554,702 |   |
| Deferred revenue                                                                                                                                                                   |   |   | 280,397 |   |   |   | 349,271 |   |
| Current portion of capital lease obligations                                                                                                                                       |   |   | 27,165 |   |   |   | 3,835 |   |
| Total current liabilities                                                                                                                                                          |   |   | 1,996,719 |   |   |   | 2,154,688 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Capital lease obligations, noncurrent                                                                                                                                              |   |   | 59,744 |   |   |   | 17,537 |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Commitments and contingencies                                                                                                                                                      |   |   | - |   |   |   | - |   |
|                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Stockholders' equity:                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Common stock, par value at $0.001, 33,333,333 shares authorized, 19,336,651 and 19,040,401 shares issued and outstanding at September 30, 2010 and December 31, 2009, respectively |   |   | 19,338 |   |   |   | 19,042 |   |
| Additional paid-in capital                                                                                                                                                         |   |   | 20,264,969 |   |   |   | 19,803,021 |   |
| Accumulated deficit                                                                                                                                                                |   |   | (16,872,555 | ) |   |   | (16,346,175 | ) |
| Total stockholders' equity                                                                                                                                                         |   |   | 3,411,752 |   |   |   | 3,475,888 |   |
| Total liabilities and stockholders’ equity                                                                                                                                   |   | $ | 5,468,215 |   |   | $ | 5,648,113 |   |

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| AUXILIO, INC. AND SUBSIDIARIES                  |
|-------------------------------------------------|
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (UNAUDITED)                                     |
|                                            |   |
|                                            |   | Three Months |   |   | Nine Months |
|                                            |   | Ended September 30, |   |   | Ended September 30, |
|                                            |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |
| Revenues                                        |   | $ | 3,970,654 |   |   | $ | 4,600,021 |   |   | $ | 11,257,127 |   |   | $ | 12,181,532 |   |
| Cost of revenues                                |   |   | 3,135,217 |   |   |   | 3,060,229 |   |   |   | 8,588,800 |   |   |   | 8,961,860 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                    |   |   | 835,437 |   |   |   | 1,539,792 |   |   |   | 2,668,327 |   |   |   | 3,219,672 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales and marketing                             |   |   | 378,654 |   |   |   | 385,959 |   |   |   | 1,015,921 |   |   |   | 1,012,340 |   |
| General and administrative expenses             |   |   | 633,744 |   |   |   | 886,649 |   |   |   | 2,173,041 |   |   |   | 2,074,776 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total operating expenses                        |   |   | 1,012,398 |   |   |   | 1,272,608 |   |   |   | 3,188,962 |   |   |   | 3,087,116 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from operations                   |   |   | (176,961 | ) |   |   | 267,184 |   |   |   | (520,635 | ) |   |   | 132,556 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                |   |   | (2,384 | ) |   |   | (425 | ) |   |   | (3,949 | ) |   |   | (96,271 | ) |
| Interest income                                 |   |   | 456 |   |   |   | 50 |   |   |   | 604 |   |   |   | 1,604 |   |
| Gain on sale of fixed assets                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,860 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total other income (expense)                    |   |   | (1,928 | ) |   |   | (375 | ) |   |   | (3,345 | ) |   |   | (92,807 | ) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before provision for income taxes |   |   | (178,889 | ) |   |   | 266,809 |   |   |   | (523,980 | ) |   |   | 39,749 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax expense                              |   |   | - |   |   |   | - |   |   |   | (2,400 | ) |   |   | (2,400 | ) |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                               |   | $ | (178,889 | ) |   | $ | 266,809 |   |   | $ | (526,380 | ) |   | $ | 37,349 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) per share:                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                           |   | $ | (.01 | ) |   | $ | .01 |   |   | $ | (.03 | ) |   | $ | .00 |   |
| Diluted                                         |   | $ | (.01 | ) |   | $ | .01 |   |   | $ | (.03 | ) |   | $ | .00 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Number of weighted average shares:              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                           |   |   | 19,278,595 |   |   |   | 19,040,401 |   |   |   | 19,189,188 |   |   |   | 18,414,320 |   |
| Diluted                                         |   |   | 19,278,595 |   |   |   | 19,040,401 |   |   |   | 19,189,188 |   |   |   | 18,414,320 |   |

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| AUXILIO, INC. AND SUBSIDIARIES                                                         |
|----------------------------------------------------------------------------------------|
| CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY                               |
| NINE MONTHS ENDED SEPTEMBER 30, 2010                                                   |
| (UNAUDITED)                                                                            |
|                                                                                   |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                   |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Total |   |
|                                                                                   |   | Common Stock |   |   | Paid-in |   |   | Accumulated |   |   | Stockholders' |   |
|                                                                                   |   | Shares |   |   | Amount |   |   | Capital |   |   | Deficit |   |   | Equity |   |
| Balance at December 31, 2009                                                           |   |   | 19,040,401 |   |   | $ | 19,042 |   |   | $ | 19,803,021 |   |   | $ | (16,346,175 | ) |   | $ | 3,475,888 |   |
| Common stock issued through exercise of options and warrants                           |   |   | 296,250 |   |   |   | 296 |   |   |   | 161,154 |   |   |   | - |   |   |   | 161,450 |   |
| Stock compensation expense for options and warrants granted to employees and directors |   |   | - |   |   |   | - |   |   |   | 210,633 |   |   |   | - |   |   |   | 210,633 |   |
| Fair value of warrants issued for marketing services                                   |   |   | - |   |   |   | - |   |   |   | 90,161 |   |   |   | - |   |   |   | 90,161 |   |
| Net loss                                                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (526,380 | ) |   |   | (526,380 | ) |
| Balance at September 30, 2010                                                          |   |   | 19,336,651 |   |   | $ | 19,338 |   |   | $ | 20,264,969 |   |   | $ | (16,872,555 | ) |   | $ | 3,411,752 |   |

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| AUXILIO, INC. AND SUBSIDIARIES                                                          |
|-----------------------------------------------------------------------------------------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                         |
| (UNAUDITED)                                                                             |
|                                                                                    |   |   |
|                                                                                    |   | Nine Months Ended September 30, |
|                                                                                    |   | 2010 |   |   | 2009 |
| Cash flows provided by (used for) operating activities:                                 |   |   |   |   |   |
| Net income (loss)                                                                       |   | $ | (526,380 | ) |   | $ | 37,349 |   |
| Adjustments to reconcile net income (loss) to net cash                                  |   |   |   |   |   |   |   |   |
| provided by (used for) operating activities:                                            |   |   |   |   |   |   |   |   |
| Depreciation                                                                            |   |   | 216,514 |   |   |   | 97,254 |   |
| Obsolete inventory                                                                      |   |   | - |   |   |   | 15,956 |   |
| Stock compensation expense for warrants and options issued to employees and consultants |   |   | 210,633 |   |   |   | 388,736 |   |
| Fair value of warrants issued for marketing services                                    |   |   | 90,161 |   |   |   | 76,807 |   |
| Interest expense related to amortization of warrants issued with loans                  |   |   | - |   |   |   | 23,412 |   |
| Interest expense related to amortization of loan acquisition costs                      |   |   | - |   |   |   | 44,431 |   |
| Changes in operating assets and liabilities:                                            |   |   |   |   |   |   |   |   |
| Accounts receivable                                                                     |   |   | (325,925 | ) |   |   | 2,525,685 |   |
| Supplies                                                                                |   |   | 44,367 |   |   |   | 72,202 |   |
| Prepaid and other current assets                                                        |   |   | (83,452 | ) |   |   | 5,701 |   |
| Deposits                                                                                |   |   | 15,779 |   |   |   | - |   |
| Accounts payable and accrued expenses                                                   |   |   | (33,497 | ) |   |   | (1,713,531 | ) |
| Accrued compensation and benefits                                                       |   |   | (78,928 | ) |   |   | (122,148 | ) |
| Deferred revenue                                                                        |   |   | (68,874 | ) |   |   | (108,852 | ) |
| Net cash provided by (used for) operating activities                                    |   |   | (539,602 | ) |   |   | 1,343,002 |   |
| Cash flows used for investing activities:                                               |   |   |   |   |   |   |   |   |
| Purchases of property and equipment                                                     |   |   | (88,240 | ) |   |   | (292,816 | ) |
| Net cash used for investing activities                                                  |   |   | (88,240 | ) |   |   | (292,816 | ) |
| Cash flows provided by (used for) financing activities:                                 |   |   |   |   |   |   |   |   |
| Net proceeds from issuance of common stock                                              |   |   | 161,450 |   |   |   | 765,001 |   |
| Payments on capital leases                                                              |   |   | (9,716 | ) |   |   | (6,721 | ) |
| Payments on notes payable and long-term debt                                            |   |   | - |   |   |   | (1,332,000 | ) |
| Net cash provided by (used for) financing activities                                    |   |   | 151,734 |   |   |   | (573,720 | ) |
| Net increase (decrease) in cash and cash equivalents                                    |   |   | (476,108 | ) |   |   | 476,466 |   |
| Cash and cash equivalents, beginning of period                                          |   |   | 1,781,586 |   |   |   | 1,198,126 |   |
| Cash and cash equivalents, end of period                                                |   | $ | 1,305,478 |   |   | $ | 1,674,592 |   |

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| AUXILIO, INC. AND SUBSIDIARIES                                   |   |
|------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) |   |
| (UNAUDITED)                                                      |   |
|                                                             |   |   |   |   |   |   |
|                                                             |   | Nine Months Ended September 30, |   |
|                                                             |   | 2010 |   |   | 2009 |   |
|   Supplemental disclosure of cash flow information:    |   |   |   |   |   |   |
|                                                             |   |   |   |   |   |   |
| Interest paid                                                    |   | $ | 3,949 |   |   | $ | 28,102 |   |
|                                                             |   |   |   |   |   |   |   |   |
| Income taxes paid                                                |   | $ | - |   |   | $ | 62,750 |   |
|  Non cash investing and financing activity:            |   |   |   |   |   |   |   |   |
| Property and equipment acquired by capital lease                 |   | $ | 75,253 |   |   | $ | - |   |

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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| Options                           |   | Shares |      |   | Weighted Average Exercise Price |   |   | Weighted Average Remaining Term in Years |   |   | AggregateIntrinsic Value |   |
|-----------------------------------|--------|--------|-----------|--------|---------------------------------|--------|--------|------------------------------------------|--------|--------|--------------------------|--------|
| Outstanding at December 31, 2009  |   |   | 5,226,195 |   |                            | $      | 1.02   |                                     |   |   |                     |   |   |   |
| Granted                           |   |   | 542,000   |   |                            |   | 1.07   |                                     |   |   |                     |   |   |   |
| Exercised                         |   |   | (27,500   | )      |                            |   | 0.56   |                                     |   |   |                     |   |   |   |
| Cancelled                         |   |   | (716,666  | )      |                            |   | 0.96   |                                     |   |   |                     |   |   |   |
| Outstanding at September 30, 2010 |   |   | 5,024,029 |   |                            | $      | 1.03   |                                     |   |   | 6.86                     |   |   | $ | 1,001,640 |   |
| Exercisable at September 30, 2010 |   |   | 3,243,402 |   |                            | $      | 1.09   |                                     |   |   | 5.77                     |   |   | $ | 631,582 |   |

| Warrants                          |   | Shares |      |   | Weighted Average Exercise Price |   |   | Weighted Average Remaining Term in Years |   |   | AggregateIntrinsic Value |   |
|-----------------------------------|--------|--------|-----------|--------|---------------------------------|--------|--------|------------------------------------------|--------|--------|--------------------------|--------|
| Outstanding at December 31, 2009  |   |   | 3,981,871 |   |                            | $      | 1.39   |                                     |   |   |                     |   |   |   |
| Granted                           |   |   | -         |   |                            |   | -      |                                     |   |   |                     |   |   |   |
| Exercised                         |   |   | (268,750  | )      |                            |   | 0.54   |                                     |   |   |                     |   |   |   |
| Cancelled                         |   |   | (187,913  | )      |                            |   | 2.79   |                                     |   |   |                     |   |   |   |
| Outstanding at September 30, 2010 |   |   | 3,525,208 |   |                            | $      | 1.38   |                                     |   |   | 2.59                     |   |   | $ | 401,150 |   |
| Exercisable at September 30, 2010 |   |   | 1,850,208 |   |                            | $      | 1.28   |                                     |   |   | 2.59                     |   |   | $ | 401,150 |   |

|                                                     |   | Three Months        |   |   | Nine months         |   |
|----------------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|
|                                                     |   | Ended September 30, |   |   | Ended September 30, |   |
|                                                     |   | 2010                |   |   | 2009                |   |   | 2010 |   |   | 2009 |   |
| Cost of revenues                                         |   | $                   | 32,920 |   |                | $      | 23,042 |   |   | $ | 85,483 |   |   | $ | 73,773 |   |
| Sales and marketing                                      |   |                | 10,199 |   |                |   | 17,097 |   |   |   | 6,224 |   |   |   | 51,339 |   |
| General and administrative expense                       |   |                | 36,799 |   |                |   | 190,539 |   |   |   | 118,926 |   |   |   | 263,624 |   |
|    Total stock based compensation expense |   | $                   | 79,918 |   |                | $      | 230,678 |   |   | $ | 210,633 |   |   | $ | 388,736 |   |

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|                                                        |   | Three Months Ended September 30, |       |   | Nine Months Ended September 30, |
|-------------------------------------------------------------|--------|----------------------------------|------------|--------|---------------------------------|
|                                                        |   | 2010                             |       |   | 2009                            |   |   | 2010 |   |   | 2009 |   |
| Numerator:                                                  |   |                             |       |   |                            |   |   |   |   |   |   |   |
| Net income (loss)                                           |   | $                                | (178,889   | )      |                            | $ | 266,809 |   |   | $ | (526,380 | ) |   | $ | 37,349 |   |
|                                                        |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Denominator for basic calculation weighted average shares   |   |                             | 19,278,595 |   |                            |   | 19,040,401 |   |   |   | 19,189,188 |   |   |   | 18,414,320 |   |
|                                                        |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Dilutive common stock equivalents:                          |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Options and warrants                                        |   |                             | -          |   |                            |   | - |   |   |   | - |   |   |   | - |   |
|                                                        |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Denominator for diluted calculation weighted average shares |   |                             | 19,278,595 |   |                            |   | 19,040,401 |   |   |   | 19,189,188 |   |   |   | 18,414,320 |   |
|                                                        |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) per share:                                |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic net income (loss) per share                           |   | $                                | (.01       | )      |                            | $ | .01 |   |   | $ | (.03 | ) |   | $ | .00 |   |
|                                                        |   |                             |       |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Diluted net income (loss) per share                         |   | $                                | (.01       | )      |                            | $ | .01 |   |   | $ | (.03 | ) |   | $ | .00 |   |

| Trade receivable                |   | $      | 2,020,935 |   |
|---------------------------------|--------|--------|-----------|--------|
| Customer advances               |   |   | (297,412  | )      |
| Allowance for doubtful accounts |   |   | -         |   |
| Total accounts receivable       |   | $      | 1,723,523 |   |

| 6. | EMPLOYMENT AGREEMENTS |
|----|-----------------------|

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ITEM 2.                      MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OFOPERATIONS.

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| ·   | Revenue recognition |
|--------------------|---------------------|

| ·   | Deferred revenue |
|--------------------|------------------|

| ·   | Accounts receivable valuation and related reserves |
|--------------------|----------------------------------------------------|

| ·   | Impairment of intangible assets |
|--------------------|---------------------------------|

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|             |   | Payments Due by Period |
|------------------|--------|------------------------|
|             |   | Total             |   |   | Less than 1 year |   |   | 1-3 years  |   |   | 3-5 years  |   |   | More than 5 years |
| Capital leases   |   | $                      | 97,725 |   |   | $ | 35,220 |   |   | $ | 61,121 |   |   | $ | 1,384 |   |   | $ | - |
| Operating leases |   |                   | 730,169 |   |   |   | 45,380 |   |   |   | 313,222 |   |   |   | 329,599 |   |   |   | 41,968 |
| Total            |   | $                      | 827,894 |   |   | $ | 80,600 |   |   | $ | 374,343 |   |   | $ | 330,983 |   |   | $ | 41,968 |

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ITEM 4.                      CONTROLS AND PROCEDURES.

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PART II - OTHER INFORMATION

| ·   | greater name recognition and larger marketing budgets and resources; |
|--------------------|----------------------------------------------------------------------|

| ·   | established marketing relationships and access to larger customer bases; |
|--------------------|--------------------------------------------------------------------------|

| ·   | substantially greater financial, technical and other resources; and |
|--------------------|---------------------------------------------------------------------|

| ·   | larger technical and support staffs. |
|--------------------|--------------------------------------|

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| ·   | develop or enhance our service offerings; |
|--------------------|-------------------------------------------|

| ·   | take advantage of future opportunities; or |
|--------------------|--------------------------------------------|

| ·   | respond to customers and competition. |
|--------------------|---------------------------------------|

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| ·   | net tangible assets of at least $2,000,000, if the issuer has been in continuous operation for at least three years, or net tangible assets of at least $5,000,000, if the issuer has been in continuous operation for less than three years; or |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | average annual revenue of at least $6,000,000 for the last three years. |
|--------------------|-------------------------------------------------------------------------|

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ITEM 6.                      EXHIBITS.

| No.  | Item                                                                                                                                                                 |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1 | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended.                       |
| 31.2 | Certification  of the Chief Financial Officer  pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended. |
| 32.1 | Certification of the CEO and CFO pursuant to Rule 13a-14(b) and Rule 15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350 *.                  |

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SIGNATURES

|                                                       | AUXILIO, INC. |                          |
|------------------------------------------------------------|---------------|-------------------------------|
|                                                       |          |                          |   |
| Date:  November 12, 2010     | By:           | /s/ Joseph J. Flynn           |   |
|                                                       |          | Joseph J. Flynn               |   |
|                                                       |          | Chief Executive Officer       |   |
|                                                       |          | (Principal Executive Officer) |   |

|                                                       |   |                           |
|------------------------------------------------------------|--------|--------------------------------|
|                                                       |   |                           |   |
| Date:  November 12, 2010     | By:    | /s/ Paul T. Anthony       |   |
|                                                       |   | Paul T. Anthony                |   |
|                                                       |   | Chief Financial Officer        |   |
|                                                       |   | (Principal Accounting Officer) |   |

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