SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549





FORM
10-Q








(Mark
One)





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





For the
quarterly period ended June 30, 2008





OR





[    ]
TRANSITION REPORT UNDER SECTION
13 OF 15(d) OF THE EXCHANGE ACT OF 1934





From the
transition period from ___________ to ____________.





Commission
File Number 000-51750





TRIPLE A MEDICAL,
INC.


(Exact
name of small business issuer as specified in its charter)





Nevada
            20-4846807(State
      or other jurisdiction of incorporation or organization)
            (IRS
      Employer Identification No.)





604 Creekview, Ovilla, Texas
75154


(Address
of principal executive offices)





(800)
843-8179


(Issuer's
telephone number)





N/A


(Former
name, former address and former fiscal year, if changed since last
report)





Indicate by check mark whether the
registrant (1) filed all reports required to be filed by Section 13 or 15(d) of
the Exchange Act during the past 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days:.  Yes [ X
]   No [     ].





Indicate
by a check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of “large accelerated filer,” ”accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act.





Large
      Accelerated Filer [  ]
            
            Accelerated
      Filer [  ]Non-Accelerated
      Filer [    ].
            
            Smaller
      Reporting Company [X]








Indicate
by a check mark whether the company is a shell company (as defined by Rule 12b-2
of the Exchange Act:  Yes [   ]   No
[X].





As of
July 31, 2008 there were 14,050,500 shares of Common Stock of the issuer
outstanding.








TABLE OF
CONTENTS





PART
      I FINANCIAL STATEMENTSItem
      1
            Financial
      Statements
            3Item
      2
            Management's
      Discussion and Analysis or Plan of Operation
            9Item
      4
            Controls
      and Procedures
            13PART
      II OTHER INFORMATIONItem
      1
            Legal
      Proceedings
            15Item
      2
            Changes
      in Securities
            15Item
      3
            Default
      upon Senior Securities
            15Item
      4
            Submission
      of Matters to a Vote of Security Holders
            15Item
      5
            Other
      Information
            15Item
      6
            Exhibits
      and Reports on Form 8-K
            15











2


TRIPLE
      A MEDICAL, INC.CONSOLIDATED
      BALANCE SHEETSJUNE
      30, 2008 AND DECEMBER 31, 2007(Unaudited)ASSETSJune
      30, 2008
            
            
            December
      31, 2007CURRENT
      ASSETS:Cash
            
            $
            159,212
            
            
            $
            270,906Accounts
      receivables
            
            
            128,116
            
            
            
            -Other
      receivables
            
            
            21,221
            
            
            
            1,100Prepaid
      expenses
            
            
            -
            
            
            
            29,363Total
      current assets
            
            
            308,549
            
            
            
            301,369Computer
      equipment, net
            
            
            21,901
            
            
            
            23,270Developed
      software, net
            
            
            349,797
            
            
            
            362,549TOTAL
      ASSETS
            
            $
            680,247
            
            
            $
            687,188LIABILITIES AND STOCKHOLDERS'
      EQUITYCURRENT
      LIABILITIES:Accounts
      payable and accrued expenses
            
            $
            38,357
            
            
            $
            67,756STOCKHOLDERS'
      EQUITYPreferred
      stock, $0.01 par value, 20,000,000 authorized,-0-  issued
      and outstanding
            
            
            -
            
            
            
            -Common
      stock, $0.01 par value, 50,000,000 authorized,14,050,500 
      and 13,744,000 issued and outstanding, respectively
            
            
            14,050
            
            
            
            13,744Additional
      paid-in-capital
            
            
            1,473,699
            
            
            
            1,258,756Subscription
      receivable
            
            
            (2,000
            )
            
            
            -Accumulated
      deficit
            
            
            (843,859
            )
            
            
            (653,068
            )Total
      stockholders’ equity
            
            
            641,890
            
            
            
            619,432TOTAL
      LIABILITIES AND STOCKHOLDERS' EQUITY
            
            $
            680,247
            
            
            $
            687,188See
      accompanying summary of accounting policies and notes to consolidated
      financial statements.


3


TRIPLE
      A MEDICAL, INC.CONSOLIDATED
      STATEMENTS OF OPERATIONSFor
      the Three and Six Months Ended June 30, 2008 and 2007(Unaudited)Three
      Months Ended
            
            
            Three
      Months Ended
            
            
            Six
      Months Ended
            
            
            Six
      Months EndedJune
      30, 2008
            
            
            June
      30, 2007
            
            
            June
      30, 2008
            
            
            June
      30, 2007REVENUE
            
            $
            259,447
            
            
            $
            -
            
            
            $
            420,856
            
            
            $
            -OPERATING
      EXPENSES:Depreciation
      and amortization
            
            
            7,061
            
            
            
            -
            
            
            
            14,121
            
            
            
            -Selling,
      general and administrative
            
            
            283,361
            
            
            
            9,227
            
            
            
            598,504
            
            
            
            18,060Software
      development costs
            
            
            -
            
            
            
            116,150
            
            
            
            1,228
            
            
            
            235,417Total
      operating expenses
            
            
            290,422
            
            
            
            125,379
            
            
            
            613,853
            
            
            
            253,477OTHER
      INCOMEInterest
      income
            
            
            755
            
            
            
            1,625
            
            
            
            2,206
            
            
            
            4,095Net
      loss
            
            $
            (30,220
            )
            
            $
            (123,754
            )
            
            $
            (190,791
            )
            
            $
            (249,382
            )Basic
      and diluted weighted average shares outstanding
            
            
            14,048,522
            
            
            
            13,500,000
            
            
            
            13,963,534
            
            
            
            13,500,000Basic
      and diluted net loss per share
            
            $
            (0.00
            )
            
            $
            (0.01
            )
            
            $
            (0.01
            )
            
            $
            (0.02
            )






See
accompanying summary of accounting policies and notes to consolidated financial
statements.





4


TRIPLE
      A MEDICAL, INC.CONSOLIDATED
      STATEMENTS OF STOCKHOLDERS' EQUITYFor
      the Year Ended December 31, 2007 and the Six Months Ended June 30,
      2008(Unaudited)AdditionalCommon
            
            
            Common
            
            
            Paid
      In
            
            
            Subscription
            
            
            AccumulatedShares
            
            
            Amount
            
            
            Capital
            
            
            Receivable
            
            
            Deficit
            
            
            TotalBalance  December
      31, 2006
            
            
            13,500,000
            
            
            $
            13,500
            
            
            $
            753,000
            
            
            $
            -
            
            
            $
            (154,446
            )
            
            $
            612,054Contributed
      capital
            
            
            -
            
            
            
            -
            
            
            
            376,000
            
            
            
            -
            
            
            
            -
            
            
            
            376,000Imputed
      rent
            
            
            -
            
            
            
            -
            
            
            
            8,000
            
            
            
            -
            
            
            
            -
            
            
            
            8,000Cash
      received for stock
            
            
            244,000
            
            
            
            244
            
            
            
            121,756
            
            
            
            -
            
            
            
            -
            
            
            
            122,000Net
      loss
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (498,622
            )
            
            
            (498,622
            )Balance  December
      31, 2007
            
            
            13,744,000
            
            
            
            13,744
            
            
            
            1,258,756
            
            
            
            -
            
            
            
            (653,068
            )
            
            
            619,432Contributed
      capital
            
            
            -
            
            
            
            -
            
            
            
            60,000
            
            
            
            -
            
            
            
            -
            
            
            
            60,000Imputed
      rent
            
            
            -
            
            
            
            -
            
            
            
            2,000
            
            
            
            -
            
            
            
            -
            
            
            
            2,000Cash
      received for stock
            
            
            276,500
            
            
            
            276
            
            
            
            137,973
            
            
            
            (2,000
            )
            
            
            -
            
            
            
            136,249Stock
      issued for services
            
            
            30,000
            
            
            
            30
            
            
            
            14,970
            
            
            
            -
            
            
            
            -
            
            
            
            15,000Net
      loss
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            (190,791
            )
            
            
            (190,791
            )Balance  June
      30, 2008
            
            
            14,050,500
            
            
            $
            14,050
            
            
            $
            1,473,699
            
            
            $
            (2,000
            )
            
            $
            (843,859
            )
            
            $
            641,890See
      accompanying summary of accounting policies and notes to consolidated
      financial statements.








5


TRIPLE
      A MEDICAL, INC.CONSOLIDATED
      STATEMENTS OF CASH FLOWSFor
      the Six Months Ended June 30, 2008 and 2007(Unaudited)Six
      Months Ended
            
            
            Six
      Months EndedJune
      30, 2008
            
            
            June
      30, 2007CASH
      FLOWS FROM OPERATING ACTIVITIES:Net
      loss
            
            $
            (190,791
            )
            
            $
            (249,382
            )Adjustments
      to reconcile net loss to netcash
      used in operating activities:Depreciation
      and amortization
            
            
            14,121
            
            
            
            -Change
      in accounts receivable
            
            
            (128,116
            )
            
            
            -Change
      in other receivables
            
            
            (20,121
            )
            
            
            -Stock
      issued for services
            
            
            15,000
            
            
            
            -Imputed
      rent
            
            
            2,000
            
            
            
            4,000Prepaid
      expenses and other current assets
            
            
            29,363
            
            
            
            -Change
      in accounts payable and accrued expenses
            
            
            (29,399
            )
            
            
            (16,452
            )NET
      CASH USED IN OPERATING ACTIVITIES
            
            
            (307,943
            )
            
            
            (261,834
            )CASH
      FLOWS FROM FINANCING ACTIVITIES:Proceeds
      from sale of stock
            
            
            136,249
            
            
            
            -Contributed
      capital
            
            
            60,000
            
            
            
            108,000NET
      CASH PROVIDED BY FINANCING ACTIVITIES
            
            
            196,249
            
            
            
            108,000NET
      INCREASE IN CASH
            
            
            (111,694
            )
            
            
            (153,834
            )CASH,
      BEGINNING OF PERIOD
            
            
            270,906
            
            
            
            265,728CASH,
      END OF PERIOD
            
            $
            159,212
            
            
            $
            111,894NON-CASH
      TRANSACTIONSCommon
      stock issued for subscription receivable
            
            $
            2,000
            
            
            $
            -SUPPLEMENTAL
      DISCLOSURESInterest
      paid
            
            $
            -
            
            
            $
            -Income
      taxes paid
            
            $
            -
            
            
            $
            -






See
accompanying summary of accounting policies and notes to consolidated financial
statements.








6








TRIPLE
A MEDICAL, INC.





Notes to
the Consolidated Financial Statements


June 30,
2008











NOTE 1--BASIS OF
PRESENTATION





The
accompanying unaudited interim consolidated financial statements of Triple A
Medical, Inc. (“Triple A”) have been prepared in accordance with accounting
principles generally accepted in the United States of America for interim
financial information and with the rules and regulations of the Securities and
Exchange Commission.  They do not include all information and notes
required by U.S. generally accepted accounting principles for complete financial
statements.  These interim consolidated financial statements should be read
in conjunction with the audited consolidated financial statements and the
accompanying notes contained in Triple A’s Annual Report on Form 10-K filed on
April 10, 2008 for the year ended December 31, 2007.





In the
opinion of management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation of the financial position, results
of operations and cash flows for the interim periods presented have been
included.  The results of operations for interim periods are not
necessarily indicative of the results that may be expected for any other interim
period or for the full year.





The
preparation of consolidated financial statements in conformity with accounting
principles generally accepted in the U.S. requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period.  Actual results could differ from those
estimates.





NOTE 2--STOCK BASED
COMPENSATION





Triple A
adopted SFAS No. 123(R), on January 1, 2008.  SFAS 123(R)
requires companies to measure the cost of employee services received in exchange
for an award of an equity instrument based on the grant-date fair value of the
award.  We account for non-employee share-based awards in accordance
with EITF No. 96-18, “Accounting for Equity Instruments That Are
Issued to Other Than Employees for Acquisition, or in Conjunction with Selling,
Goods or Services.”  During the six months ended June 30, 2008,
Triple A issued 30,000 shares for services valued at
$15,000.





NOTE 3--GOING
CONCERN





Triple
A's financial statements have been presented on the basis that it is a going
concern, which contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business.  Triple A has recurring
losses and an accumulated deficit.  Additionally, Triple A has
incurred recurring deficits in cash flows from operating
activities.


7





Triple A's ability to continue as a
going concern is dependent upon its ability to successfully market and implement
its developed software product and to achieve profitable
operations.  The accompanying financial statements do not include any
adjustments that might result from the outcome of these
uncertainties.




NOTE 4--EQUITY
TRANSACTIONS
  During
the year ended December 31, 2007, Triple A issued 244,000 shares of common stock
in exchange for cash at $0.50 per shares.
  During
the year ended December 31, 2007 and the six month period ended June 30, 2008,
Triple A received additional paid-in capital in conjunction with the Investment
and Net Revenue Agreement as more fully described in Note 5 in the amounts of
$108,000 and $60,000, respectively.
  During
the year ended December 31, 2007 and the six month period ended June 30, 2008,
Triple A benefited from rent expense credited to additional paid-in capital from
a related party as more fully described in Note 5 in the amounts of $8,000 and
$2,000, respectively.
  In March
2008 Triple A issued 30,000 shares of common stock in exchange for consulting
services.  The issuance of shares for services was valued at $0.50 per
share resulting in compensation expense of $15,000.
  During
the three month period ended March 31, 2008, Triple A issue 276,500 shares of
common stock for cash at $0.50 per share.


NOTE 5--RELATED PARTY
TRANSACTIONS





In order
to fund the development of the software, Triple A entered into an ‘Investment
and Net Revenue Agreement’ with Phoenix Ortho, LLC (ORTHO), an entity controlled
by a relative of the President of Triple A.  In connection with this
agreement, ORTHO provided Triple A $745,000 during 2006, $108,000 in 2007, and
$60,000 in the six months ended 2008.  This cash is reflected as
additional paid-in capital as of June 30, 2008, and December 31, 2007 and
2006.  In exchange for this contributed capital, Triple A provided
ORTHO with an income participation interest in its operations.  The
terms of this agreement require Triple A to pay ORTHO 33.1% of the net revenues
generated by the business in the immediately preceding month.





In
addition, office space has been contributed by related parties from January 1
thru March 31, 2008 rent-free.  Two thousand dollars of
rent expense has been imputed related to this office space in the first
quarter of 2008.  In the three months ended June 30, 2008, the Company
paid a related party $11,000 for office space rent.





8





Item
2.  MANAGEMENT’S DISCUSSION AND ANALYSIS





This
report contains forward looking statements within the meaning of Section 27A of
the Securities Act of 1933, as amended and Section 21E of the Securities
Exchange Act of 1934, as amended.  The Company’s actual results could
differ materially from those set forth on the forward looking statements as a
result of the risks set forth in the Company’s filings with the Securities and
Exchange Commission, general economic conditions, and changes in the assumptions
used in making such forward looking statements.





General





The
Company was founded to create electronic healthcare software
applications.  The initial development is an Electronic Health Record
(EHR), specifically designed to meet the needs of orthopedic physicians. For the
past four years, our President, Morgan McCune, has worked directly with dozens
of orthopedic physicians in more than 40 states.  He has reviewed
orthopedic clinical research and extensively surveyed reference
materials.  Based upon the research, Mr. McCune created a database
with a graphical interface to assist orthopedic physicians with the
documentation of the patient encounter.





The
Market





Phoenix
Ortho is participating in an $18 billion market for Electronic Health Records
(EHR).  The Orthopedics market approaches $2 billion.  There
are more than 20,500 board certified orthopedists and 12,872 orthopedic group
practices.  Research indicates that this market is less than 10%
penetrated.  Recent surveys indicate that 58% of medical practices are
looking at purchasing an EHR in the next two years.  In 2005 the
average orthopedic EHR sale was $171,000. (2001 AAOS Census, 2004 MGMA
Survey)  Recent growth rate in new sales has averaged about
30%.  We expected this growth rate will accelerate sharply over the
next two years.





Keys
to Success





Focus: We believe focus is the
essential ingredient to successful EHR development and deployment. Phoenix Ortho
is unique in its extensive experience and singular focus on
orthopedics.  By focusing on one specialty, we can avoid the wholesale
generalities that have plagued EHR vendors and frustrated their orthopedic
clients.  Phoenix Ortho understands the unique requirements of
orthopedic physicians.  Focus promotes the creation of relevant
content and specialty specific application functionality.  Content
relevance is a significant factor in physician adoption.





In
mid-2007 we began marketing our new orthopedic EHR software.  The new
project was focused on resolving the key problems that have historically posed
barriers to adoption, successful implementation, and client
satisfaction.  These obstacles can be grouped together in four
categories; Product Functionality, Product Implementation, Product Support, and
Product Acquisition Cost.





Product Functionality:The
software will establishnew standards for ease
of use, efficiency, stability, and availability facilitating end user
adoption.  The software is designed and scaled specifically for the
pen tablet environment.  We believe the pen tablet is the device of
choice for EHR end users.  Our development
will utilize input tools such as sliders, combo boxes, role over images and
other custom designed tools to provide a truly keyboard


9


free
interface.  Other tablet input options such as “Pen and Ink” and
“Voice to Text” will be available as needed to capture representative
content.  The ODClient will improve stability, performance, and
availability by utilizing .NET automatic versioning and auto-recovery from
deadlock errors and memory leaks.  Advanced compilation and caching
techniques substantially lower CPU utilization.  The ODClient (smart
client) will support both disconnected and low bandwidth clients supporting end
user mobility and minimizing the frustration of “Systems Down”.





Product Implementation:We
have developed an orthopedic, client focused implementation methodology we call
the “AAA” implementation plan.  This plan focuses on the three
critical aspects of implementation; Assessment, Adoption, and
Adaptation.  All implementations will begin with
Assessment.  During the assessment phase the unique needs of the end
users are identified.  Each user is profiled to determine their needs
and potential road blocks to success.  The physicians are identified
as Champions, Contenders, or Challengers.  An implementation strategy
is designed around these “Adoption Profiles”.  The Champions are the
eager adopters and should be the first users.  The Contenders are
frequently indifferent but, usually agreeable adopters.  The
Challengers represent approximately 30% of the physicians who will resist
implementation for a variety of reasons.  Sometimes they feel they are
too technology challenged and fearful, some are too busy and may fear loss of
revenue by adoption, while others are just resistant to anything
new.  When these objections are clearly understood, “Adaptation” can
take place and in most cases mitigate the Challengers
objection(s).  Adaptation is the process of introducing (training) the
end users to the application “Best Practices”.  It also takes into
account the “Profile” of the end user to create a “Best Practices” by provider
(See Challengers above).





Product Support:The ODClient
on the .NET framework makes it easier than ever to update and deploy new
applications.  Thanks to intelligent, one touch updates and
intelligent support client PCs can be updated by copying the application to the
target directory.  Client PCs may be updated automatically with no
interruption or the may be updated on demand.





Product Acquisition Cost:Wewill
provide alternative acquisition models to help overcome purchase resistance due
to capital costs.  Although we will make the EHR software available on
the traditional for- purchase basis, through our innovative 3-Tier ODClient
architecture we will also offer a service based model.  Our customers
will be able to utilize the full function and features of the EHR software for
an affordable monthly service charge.





Utilizing
their extensive experience and knowledge of orthopedics, coupled with state of
the art rapid development tools, we believe these obstacles can be overcome and
their goals are achievable.  The recent completion of their fully
functional prototype, suggests that their development strategies are on
track.





Technology
Overview





For many
technologists and software developers, 2006 is a “watershed
year.”  With the official release of Visual Studio 2005, providing a
seamless integration between C#, the .Net Framework 2.0 and SQL Server 2005, a
new paradigm for software development has arrived.  According to Bill
Gates “the transition to .NET is as dramatic as the move from MS-DOS to
Windows.”  The emergence of these companion technologies has created
an opportunity for rapid development, application flexibility,  architectural
mobility, simplified deployment and support/updates that did not exist prior to
November 2005.


10







We are
positioned to take full advantage of this shifting technological
paradigm.  The software is the first orthopedic EHR to be developed
utilizing innovative 3-Tier architecture on SQL 2005, the .NET framework, C#,
Visual Studio 2005 and the Microsoft Enterprise Library.





Implementation
of 3-Tier Architecture





ODClient:Combines the best of
traditional rich client functionality with the ease of thin client deployment
and maintenance.  ODClient raises the standard by adding support for
mobile, offline or low bandwidth users with intelligent connection management
(data caching and batch requests).  Even fully connected clients will
see performance and stability benefits.  ODClient will reduce
management costs by avoiding the complexities and “application fragility” of
traditional rich client deployments (shared code, registered components, and
DLLs in a common folder).  ODClient will utilize a seamless,
simplified, predictable “no touch deployment”.  Updates may occur in
the background or on demand. Tools: Visual C# 2005, Microsoft Office 2003, and
XML underlying structure.





Application Server Tier:Business-objects that implement the business rules reside
here.  This tier isolates the data from direct access by the
clients.  Tools: .Net Framework 2.0 and Microsoft Enterprise
Library.





Data Server Tier: This tier is
responsible for data storage.  SQL Server 2005 with .NET integration
is the database of choice.  However, the 3-Tier architecture supports
application portability and database independence.  Tools: SQL Server
2005, T-SQL, CLR Execution Environment, .Net Code Integration, Business
Intelligence, Indexed, and Full Text Search.





Mission





We
develop, document, and market EHR solutions that are efficient, intuitive, easy
to use, and promote physician acceptance.  This software will reduce
the cost and risks associated with manual paper based systems.  This
will in turn improve the quality of care by more completely documenting patient
care, eliminating common errors and tracking relevant procedures, events, and
outcomes.  The EHR will provide an excellent ROI to the physician by
reducing costs and enhancing revenues do to improved documentation and optimal
billable code levels.





Conclusion





The
orthopedic EHR market is emerging rapidly with nearly $2 billion in potential
sales.  We believe that our software is uniquely positioned to fill a
substantial void in the orthopedic vertical market for EHR.Our extensive orthopedic
experience, our singular focus, our dedicated, proactive approach to training,
implementation and support, coupled with our utilization of state of the art
development tools will distinguish us from every alternative EHR in the
orthopedic vertical market space.  The result will be a uniquely
relevant orthopedic encounter management solution that is efficient, intuitive,
easy to use, and promotes
physician acceptance. We expect this EHR to be well received, quickly adopted,
and widely endorsed by the orthopedic community.


11







RESULTS
FOR THE FISCAL QUARTER ENDED June 30, 2008





During
the six months ended June 30, 2008, we had continued marketing our software and
following up on sales leads which had been generated throughout 2007 and into
2008.  The sales cycle can be anywhere from three months to one
year.  In addition to a couple independent sales persons and alliances
with marketing partners, we hired a full time salesman on commission
only.  Our sales leads continue to be generated and followed up on as
we receive them from our own efforts by attendance at trade shows and from
referrals from our industry cross marketing agreements.  In addition,
we expect to see sales from our full time salesman starting in the last quarter
of 2008 into the first quarter of 2009.





REVENUE.
Revenue for the three months ended June 30, 2008 continued as it increased from
the first quarter of 2008, where we saw first revenue from
sales.  Revenue in the three months ended June 30, 2008 was $259,447
compared to $161,409 in the three months ended March 31, 2008.  Our
sales in the same periods last year were zero since we had no sales and were
finishing the development of our product and starting to attend trade
shows.  Our revenue for the six months ended June 30, 2008 was
$420,856 compared to zero in the same six months of 2007.





EXPENSES.
Depreciation and amortization expense was $7,061 for the three months ended June
30, 2008 and $14,121 for the six months ended June 30, 2008 where in the same
periods of 2007 it was zero.




Software
development costs totaled zero for the three months ended June 30, 2008 compared
to $116,150 for the same three months in 2007 and $1,228 and $235,417 for the
six months ended June 30, 2008 and 2007, respectively.  The
significant decrease was due to the capitalization of many of the software
development costs in 2007, where in 2008 our software was basically complete and
we were marketing and installing it.




Other
selling, general and administrative costs were $283,361 and
$9,227  for the three months ended June 30, 2008 and 2007,
respectively, and $598,504 and $18,060 for the six months ended June 30, 2008
and 2007, respectively.  The significant increase was due to most
costs in the first quarter of 2007 associated with the development of our
software, were capitalized, and secondly, in 2008 we were marketing, installing,
and supporting our software and in order to do this effectively.  We
have added a number of support personnel to install and support our
software.





OTHER
INCOME. We had interest income of $755 and $1,625 for the three months ended
June 30, 2008 and 2007, respectively, and interest income of $2,206 and $4,095
for the six months ended June 30, 2008 and 2007, respectively.





NET LOSS.
Net loss for the three months ended June 30, 2008 was ($30,220) compared to a
net loss of ($123,754) for the three months ended June 30, 2007.  Net
loss for the six months ended June 30, 2008 was ($190,791) compared to a net
loss of ($249,382) for the six months ended June 30, 2007.





LIQUIDITY
AND CAPITAL RESOURCES. Our cash balance at June 30, 2008 was $159,212 which we
believe will be sufficient liquidity to carry us to the point where all of our
software will provide enough cash flow to internally fund our operations,
although we expect to raise more than the minimum amount.











12


Employees





As of
June 30, 2008, the Company had nine employees which it pays through an employee
leasing agreement.  Four of the employees are support and/or technical
personnel.





ITEM
4.  CONTROLS AND PROCEDURES





Evaluation of Disclosure
Controls and Procedures


Disclosure
controls and procedures include, without limitation, controls and procedures
designed to ensure that information required to be disclosed by an issuer in the
reports that it files or submits under the Securities Exchange Act of 1934, as
amended (the "Act") is accumulated and communicated to the issuer's management,
including its principal executive and principal financial officers, or persons
performing similar functions, as appropriate to allow timely decisions regarding
required disclosure. It should be noted that the design of any system of
controls is based in part upon certain assumptions about the likelihood of
future events, and there can be no assurance that any design will succeed in
achieving its stated goals under all potential future conditions, regardless of
how remote.  As of the end of the period covered by this Annual Report, we
carried out an evaluation, under the supervision and with the participation of
our President, also serving as our Chief Financial Officer, of the effectiveness
of the design and operation of our disclosure controls and procedures. 
Based on this evaluation, our President has concluded that the Company’s
disclosure controls and procedures are not effective because of the
identification of a material weakness in our internal control over financial
reporting which is identified below, which we view as an integral part of our
disclosure controls and procedures.




Changes in Internal Controls
over Financial Reporting


We have
not yet made any changes in our internal controls over financial reporting that
occurred during the period covered by this report on Form 10-KSB that has
materially affected, or is reasonably likely to materially affect, our
internal control over financial reporting.




Management’s Annual Report
on Internal Control Over Financial Reporting


Our
management is responsible for establishing and maintaining adequate internal
control over financial reporting, as such term is defined in
Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Our internal control
system was designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes, in accordance with generally accepted accounting principles. Because
of inherent limitations, a system of internal control over financial reporting
may not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate due to change in conditions, or that the degree of compliance with
the policies or procedures may deteriorate.




Our
management conducted an evaluation of the effectiveness of our internal control
over financial reporting using the criteria set forth by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO) in Internal
Control—Integrated Framework. Based on its evaluation, our management concluded
that there is a material weakness in our internal control over financial
reporting. A material weakness is a deficiency, or a combination of control
deficiencies, in internal control over financial reporting such that there is a
reasonable possibility that a material misstatement of the Company’s annual or
interim financial statements will not be prevented or detected on a timely
basis.




The
material weakness relates to the lack of segregation of duties in financial
reporting, as our financial reporting and all accounting functions are performed
by an external consultant with no oversight by a professional with accounting
expertise.  Our President does not possess accounting expertise and our
company does not have an audit committee.  This weakness is due to the
Company’s lack of working capital to hire additional staff.  To remedy this
material weakness, we intend to engage another accountant to assist with
financial reporting as soon as our finances will
allow.


13






This
annual report does not include an attestation report of the Company’s registered
public accounting firm regarding internal control over financial
reporting. Management’s report was not subject to the attestation by the
Company’s registered public accounting firm pursuant to temporary rules of the
SEC that permit the Company to provide only management’s report in this annual
report.




The
Company’s management carried out an assessment of the effectiveness of the
Company’s internal control over financial reporting as of June 30, 2008. The
Company’s management based its evaluation on criteria set forth in the framework
in Internal Control—Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission. Based on that assessment, management
has concluded that the Company’s internal control over financial reporting was
not effective as of June 30, 2008.


14


PART
II





Items No.
1, 2, 3, 4, 5 - Not Applicable.








Item No.
6 - Exhibits and Reports on Form 8-K





(a) No
reports on Form 8-K were filed during the three months ended June 30,
2008.





(b)   Exhibits





Exhibit
      Number
            Name
      of Exhibit





31.1
            Certification
      of Chief Executive Officer, pursuant to Rule 13a-14(a) of the Exchange
      Act, as enacted by Section 302 of the Sarbanes-Oxley Act of
      2002.31.2
            Certification
      of Chief Financial Officer, pursuant to Rule 13a-14(a) of the Exchange
      Act, as enacted by Section 302 of the Sarbanes-Oxley Act of
      2002.32.
            Certification
      of Chief Executive Officer and Chief Financial Officer, pursuant to 18
      United States Code Section 1350, as enacted by Section 906 of the
      Sarbanes-Oxley Act of 2002.








SIGNATURES





In
accordance with the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.





TRIPLE A
MEDICAL, INC.





By /s/ P. Morgan
McCune


P. Morgan
McCune, President, CFO





Date:
August 9, 2008





15