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, 2009





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
August 13, 2009 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
            9PART
      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
            15











2


TRIPLE
      A MEDICAL, INC.CONSOLIDATED
      BALANCE SHEETSJUNE
      30, 2009 AND DECEMBER 31, 2008(Unaudited)ASSETSJune
      30, 2009
                                              
                                              
                                              December
      31, 2008CURRENT
      ASSETS:Cash
                                              
                                              $
                                              31,438
                                              
                                              
                                              $
                                              47,954Accounts
      receivable, net of allowance for doubtful accounts of $95,799
                                                In
      2009 & 2008
                                              
                                              
                                              7,663
                                              
                                              
                                              
                                              22,083Total
      current assets
                                              
                                              
                                              39,101
                                              
                                              
                                              
                                              70,037Computer
      equipment, net
                                              
                                              
                                              10,951
                                              
                                              
                                              
                                              15,057Developed
      software, net
                                              
                                              
                                              247,777
                                              
                                              
                                              
                                              286,035TOTAL
      ASSETS
                                              
                                              $
                                              297,829
                                              
                                              
                                              $
                                              371,129LIABILITIES AND STOCKHOLDERS'
      EQUITYCURRENT
      LIABILITIES:Accounts
      payable and accrued expenses
                                              
                                              $
                                              64,764
                                              
                                              
                                              $
                                              95,140Line
      of credit
                                              
                                              
                                              40,082
                                              
                                              
                                              
                                              -Customer
      deposits
                                              
                                              
                                              76,954
                                              
                                              
                                              
                                              -Short-term
      debt
                                              
                                              
                                              60,000
                                              
                                              
                                              
                                              40,398Total
      Current Liabilities
                                              
                                              
                                              241,800
                                              
                                              
                                              
                                              135,538Commitments
      and contingencies
                                              
                                              
                                              -
                                              
                                              
                                              
                                              -STOCKHOLDERS'
      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 14,050,500 issued and outstanding, respectively
                                              
                                              
                                              14,051
                                              
                                              
                                              
                                              14,051Additional
      paid-in-capital
                                              
                                              
                                              1,769,697
                                              
                                              
                                              
                                              1,655,697Accumulated
      deficit
                                              
                                              
                                              (1,727,719
                                              )
                                              
                                              
                                              (1,434,157
                                              )Total
      stockholders’ equity
                                              
                                              
                                              56,029
                                              
                                              
                                              
                                              235,591TOTAL
      LIABILITIES AND STOCKHOLDERS' EQUITY
                                              
                                              $
                                              297,829
                                              
                                              
                                              $
                                              371,129See
      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, 2009 and 2008(Unaudited)Three
      Months Ended
                                                    
                                                    
                                                    Three
      Months Ended
                                                    
                                                    
                                                    Six
      Months Ended
                                                    
                                                    
                                                    Six
      Months EndedJune
      30, 2009
                                                    
                                                    
                                                    June
      30, 2008
                                                    
                                                    
                                                    June
      30, 2009
                                                    
                                                    
                                                    June
      30, 2008REVENUE
                                                    
                                                    $
                                                    66,711
                                                    
                                                    
                                                    $
                                                    259,447
                                                    
                                                    
                                                    $
                                                    390,720
                                                    
                                                    
                                                    $
                                                    420,856OPERATING
      EXPENSES:Depreciation
      and amortization
                                                    
                                                    
                                                    21,183
                                                    
                                                    
                                                    
                                                    7,061
                                                    
                                                    
                                                    
                                                    42,364
                                                    
                                                    
                                                    
                                                    14,121Selling,
      general and administrative
                                                    
                                                    
                                                    239,369
                                                    
                                                    
                                                    
                                                    283,361
                                                    
                                                    
                                                    
                                                    641,929
                                                    
                                                    
                                                    
                                                    598,504Software
      development costs
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    1,228Total
      operating expenses
                                                    
                                                    
                                                    260,552
                                                    
                                                    
                                                    
                                                    290,422
                                                    
                                                    
                                                    
                                                    684,293
                                                    
                                                    
                                                    
                                                    613,853Loss
      from operations
                                                    
                                                    
                                                    (193,841
                                                    )
                                                    
                                                    
                                                    (30,975
                                                    )
                                                    
                                                    
                                                    (293,573
                                                    )
                                                    
                                                    
                                                    (192,997
                                                    )OTHER
      INCOMEInterest
      income
                                                    
                                                    
                                                    3
                                                    
                                                    
                                                    
                                                    755
                                                    
                                                    
                                                    
                                                    11
                                                    
                                                    
                                                    
                                                    2,206Net
      loss
                                                    
                                                    $
                                                    (193,838
                                                    )
                                                    
                                                    $
                                                    (30,220
                                                    )
                                                    
                                                    $
                                                    (293,562
                                                    )
                                                    
                                                    $
                                                    (190,791
                                                    )Basic
      and diluted weighted average shares outstanding
                                                    
                                                    
                                                    14,050,500
                                                    
                                                    
                                                    
                                                    14,048,522
                                                    
                                                    
                                                    
                                                    14,050,500
                                                    
                                                    
                                                    
                                                    13,963,534Basic
      and diluted net loss per share
                                                    
                                                    $
                                                    (0.01
                                                    )
                                                    
                                                    $
                                                    (0.00
                                                    )
                                                    
                                                    $
                                                    (0.02
                                                    )
                                                    
                                                    $
                                                    (0.01
                                                    )See
      accompanying summary of accounting policies and notes to consolidated
      financial statements.


4


TRIPLE
      A MEDICAL, INC.CONSOLIDATED
      STATEMENTS OF CASH FLOWSFor
      the Six Months Ended June 30, 2009 and 2008(Unaudited)Six
      Months Ended
                      
                      
                      Six
      Months EndedJune
      30, 2009
                      
                      
                      June
      30, 2008CASH
      FLOWS FROM OPERATING ACTIVITIES:Net
      loss
                      
                      $
                      (293,562
                      )
                      
                      $
                      (190,791
                      )Adjustments
      to reconcile net loss to netcash
      used in operating activities:Depreciation
      and amortization
                      
                      
                      42,364
                      
                      
                      
                      14,121Stock
      issued for services
                      
                      
                      -
                      
                      
                      
                      15,000Imputed
      rent
                      
                      
                      -
                      
                      
                      
                      2,000Change
      in operating assets and liabilities:Accounts
      receivable
                      
                      
                      14,420
                      
                      
                      
                      (128,116
                      )Other
      receivables
                      
                      
                      -
                      
                      
                      
                      (20,121
                      )Prepaid
      expenses and other current assets
                      
                      
                      -
                      
                      
                      
                      29,363Customer
      deposits
                      
                      
                      76,954
                      
                      
                      
                      -Accounts
      payable and accrued expenses
                      
                      
                      (30,376
                      )
                      
                      
                      (29,399
                      )NET
      CASH USED IN OPERATING ACTIVITIES
                      
                      
                      (190,200
                      )
                      
                      
                      (307,943
                      )CASH
      FLOWS FROM FINANCING ACTIVITIES:Proceeds
      from sale of stock
                      
                      
                      -
                      
                      
                      
                      136,249Payments
      on line of credit
                      
                      
                      (316
                      )
                      
                      
                      -Advances
      from shareholder
                      
                      
                      60,000
                      
                      
                      
                      -Contributed
      capital
                      
                      
                      114,000
                      
                      
                      
                      60,000NET
      CASH PROVIDED BY FINANCING ACTIVITIES
                      
                      
                      173,684
                      
                      
                      
                      196,249NET
      DECREASE IN CASH
                      
                      
                      (16,516
                      )
                      
                      
                      (111,694
                      )CASH,
      BEGINNING OF PERIOD
                      
                      
                      47,954
                      
                      
                      
                      270,906CASH,
      END OF PERIOD
                      
                      $
                      31,438
                      
                      
                      $
                      159,212NON-CASH
      TRANSACTIONSCommon
      stock issued for subscription receivable
                      
                      $
                      -
                      
                      
                      $
                      2,000SUPPLEMENTAL
      DISCLOSURESInterest
      paid
                      
                      $
                      -
                      
                      
                      $
                      -Income
      taxes paid
                      
                      $
                      -
                      
                      
                      $
                      -See
      accompanying summary of accounting policies and notes to consolidated
      financial statements.


5





TRIPLE
A MEDICAL, INC.





Notes to
the Consolidated Financial Statements


June 30,
2009











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 15, 2009 for the year ended December 31, 2008.





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.





Accounting
Policies





Customer
Deposits





Customer
deposits reflect payments received from customers prior to service being
rendered.





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 three and six months ended June 30,
2009 Triple A did not issue shares for services.  During the three
month period ended June 30, 2008 Triple A did not issue any shares for services
and issued 30,000 shares valued at $15,000 in the three months ended March 31,
2008.








6







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.





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--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,
$244,000 in 2008, and $114,000 during the six months ended June 30,
2009.  This cash is reflected as additional paid-in capital as of June
30, 2009, and December 31, 2008.  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 was contributed by related parties from January 1 thru
June 30, 2008 rent-free.  Two thousand of expense has been imputed
related to this office space in the first quarter of 2008.  During the
six months ended June 30, 2009, the Company paid a related party $30,000 for
office space rent.





On
January 16, 2009 and February 2, 2009, Triple A borrowed an aggregate of $40,000
in the form of short term debt from Paul McCune, President of Triple
A.  On June 16, 2009, Triple A borrowed an additional $20,000 in the
form of short term debt from Paul McCune.  The loan has no definitive
repayment terms.





NOTE 5-RECENTLY ADOPTED
ACCOUNTING PROUNCEMENTS





In 2009,
the FASB issued the following guidance;




SFAS No. 166: 
"Accounting for Transfers of Financial Assets—an amendment of FASB Statement No.
140"




SFAS
No. 167:  "Accounting for Transfers of Financial Assets"




FSP
No. FAS 107-1 and APB 28-1:   Interim Disclosures about Fair Value of
Financial Instruments.




FSP
No. FAS 115-2 and FAS 124-2:    Recognition and Presentation of
Other-Than-Temporary Impairments.




FSP No. FAS
157-4:   Determining Fair
Value When the Volume and Level of Activity for the Asset or Liability Have
Significantly Decreased and Identifying Transactions That Are Not
Orderly.




Management
has reviewed these new standards and believe that they will have no material
impact on the financial statements of the Company.








7





In May
2009, the FASB issued SFAS No. 165, “Subsequent
Events,” which establishes general standards for accounting for and
disclosure of events that occur after the balance sheet date but before the
financial statements are issued or are available to be issued. The pronouncement
requires the disclosure of the date through which an entity has evaluated
subsequent events and the basis for that date, whether that date represents the
date the financial statements were issued or were available to be issued. SFAS
165 is effective with interim and annual financial periods ending after June 15,
2009. Management is currently evaluating the impact of the adoption of SFAS 165
but does not expect the adoption of SFAS 165 to impact the Company’s results of
operations, financial position or cash flows.





In July
2009, the FASB issued SFAS No. 168, “FASB Accounting
Standards Codification” (“SFAS 168”), as the single source of
authoritative nongovernmental U.S. generally accepted accounting principles
(GAAP). The Codification is effective for interim and annual periods ending
after September 15, 2009. All existing accounting standards are superseded as
described in SFAS 168. All other accounting literature not included in the
Codification is nonauthoritative. Management is currently evaluating the impact
of the adoption of SFAS 168 but does not expect the adoption of SFAS 168 to
impact the Company’s results of operations, financial position or cash
flows.





NOTE 6 –
RECLASSIFICATION





Certain
2008 amounts have been reclassed to agree with the 2009
classifications.





NOTE 7 – SUBSEQUENT
EVENTS
  The
Company has evaluated subsequent events through August 12, 2009 which is the
date the consolidated financial statements were issued.



























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 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”.








9





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.





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.












10





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.





RESULTS
FOR THE FISCAL QUARTER ENDED June 30, 2009





During
the three months ended June 30, 2009, we continued marketing our software and
following up on sales leads. 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. We have hit a stage in
our business where we have our software developed and running smoothly and our
infrastructure built so that we can install and maintain a multiple number of
installations. During the first six months of 2009 we ran into a cash squeeze
whereby the cost to maintain our infrastructure, which we estimate we need sales
of approximately $500,000 per quarter, was considerably more than our sales.
However, we believe that we are well positioned to increase sales in the final
six months of 2009 as we retained a full time salesman who started in the last
quarter of 2008 and has generated many leads in the first six months of
2009.  We have a pipeline of sales presentations and commitments which
we expect to give us the momentum and the cash flow to get past our cash flow
hurdles and propel us into the last half of 2009.








11





REVENUE.
Revenue in the three months ended June 30, 2009 was $66,711 compared to $259,447
in the three months ended June 30, 2008.  Revenue in the six months
ended June 30, 2009 was $390,719 compaed to $420,856 in the six months ended
June 30, 2008.





The
fluctuation in sales is due to the timing of closing sales
contracts.  Please reference the table below to view the Installation
Contracts quarter-to-date (QTD) and year-to-date (YTD) for 2009 versus
2008.





2009
            2008QTD
            YTD
            QTD
            YTDInstallation
      Contracts
            0
            288,857
            239,581
            393,084Maintenance/Other
            66,711
            101,863
            19,866
            27,772TOTAL
            66,711
            390,720
            259,447
            420,856





Revenue
for the three month period ended June 30, 2009 was related to
maintenance/service on existing installations.  During the three and
six month periods ended June 30, 2009 there were a total of six customers making
up the service revenue of $66,711 and $101,863, respectively.  Monthly
service agreements can vary from $500 to over $2,000 depending on the
installation and support contracted.  In contrast, during the three
and six month periods ended June 30, 2008 there were a total of three customers
making up the service revenue of $19,866 and $27,772,
respectively.  Monthly maintenance revenue is important to
establishing consistent cash flow and profitability once the Company reaches the
right level of critical mass.





Installation
contract revenue for the three and six months ended June 30, 2009 was $0 and
$288,858 compared to $239,581 and $393,084 for the three and six months ended
June 30, 2008.  In 2009 there were five new installation contracts
averaging $57,770.  In 2008 there were four new installation contracts
averaging $98,270.  The 2008 numbers are larger due to one agreement
that was $220,000; backing this out the average contract was $57,700 or
comparable to 2009.





EXPENSES.
Total operating expenses, not including depreciation expense, were $239,369 for
the three months June 30, 2009 compared to $283,361 for the three months ended
June 30, 2008.  Total operating expenses, not including depreciation
expense, were $641,929 for the six months June 30, 2009, compared to $599,732
for the six months ended June 30, 2008.





The
decrease in expenses of about $44,000 in the three month period ended June 30,
2009 is due to three main factors. First, employee leasing was down $39,900 due
to lower sales; second, travel was down $42,000 as the Company was utilizing an
agent for part of the revenue; third, this was partially off-set by third party
commissions of $37,500.  By paying a third party agent commissions on
sales the Company saves at least an equivalent amount in travel and
installations costs.








12





The
increase in expenses of about $42,000 in the six month period ended June 30,
2009 is comprised mainly of four components.  First, commissions were
up $119,000 as in 2008 the Company was not using a third party agent; second,
bad debt expense of $20,700 was recognized to provide for an old account; third,
reduced travel by $94,000 as the third party agent is responsible for the
installations; and four, reduced employee leasing by $2,500 due to lower
sales.





Depreciation
and amortization expense was $21,183 for the three months ended June 30, 2009
and $7,061 for the three months ended June 30, 2008.  Depreciation and
amortization expense was $42,364 for the six months ended June 30, 2009 and
$14,121 for the six months ended June 30, 2008.





OTHER
INCOME. We had interest income of $3 and $755 for the three months ended June
30, 2009 and 2008, respectively; and $11 and $2,206 for the six months ended
June 30, 2009 and 2008, respectively.  The reduction in other income
is due to less cash-on-hand drawing interest income.





NET LOSS.
Net loss for the three months ended June 30, 2009 was $193,838 compared to a net
loss of $30,220 for the three months ended June 30, 2008.  Net loss
for the six months ended June 30, 2009 was $293,562 compared to a net loss of
$190,791 for the three months ended June 30, 2008.





Net loss
for the three month period ended June 30, 2009 increased by
$163,618.  The increase in loss is directly related to the reduction
in installation contract sales of $239,581 impacting net margins about $190,000
in the quarter and being partially off-set by increased expenses discussed above
by about $30,000.





Net loss
for the six month period ended June 30, 2009 increased by
$102,771.  The increase in loss is made up of the increase in expense
of $42,000 discussed above and the reduction in installation contract sales of
$104,000 impacting net margins about $60,000.





LIQUIDITY
AND CAPITAL RESOURCES. Our cash balance at June 30, 2009 was $31,438 compared to
$47,954 at December 31, 2009.  The Company plans for liquidity needs
on a short term and long term basis as follows:





Short Term
Liquidity:


The
company currently relies on short-term financing of working capital from
individual investors and also shareholder advances, when necessary, to fund
operations.





Long Term
Liquidity:


The long
term liquidity needs of the Company are projected to be met primarily through
the cash flow provided by operations.  Although our operating cash
flow from operations is negative $190,200 for the six months ended June 30, 2009
it is an improvement versus the same period in 2008 which has a negative
operating cash flow of $307,943.  As we sign new contracts and
perpetuate maintenance revenue we expect cash flow from operations to fund
itself.





Capital
Resources





During
the six months ended June 30, 2009, the Company was advanced $60,000 by a
shareholder.  There is no interest associated with this advance and it
is expected to be repaid in the third quarter of 2009.








13





Over the
past few years we have noticed that our business does not have a seasonal
trend.  Currently our revenue stream is geared toward installation
contracts and as we grow we expect to see a more balanced revenue line between
installation and maintenance sales.





We do not
expect any significant change to our equity or debt structure and do not
anticipate entering into any off-balance sheet arrangements.





Material Changes in
Financial Condition





WORKING
CAPITAL: Working capital decreased by $137,198 to ($202,699).  This
reduction is mainly due to a customer deposit of $76,954 that was received
during the three month period ended June 30, 2009 and the shareholder advances
of $60,000.  This was off-set by a reduction in accounts payable of
$40,300.








Employees





As of
June 30, 2009, the Company had seven employees which it pays through an employee
leasing agreement.  Four of the employees are support and/or technical
personnel.







ITEM
3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK




Not
applicable.







ITEM
4: CONTROLS AND PROCEDURES







We
carried out an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) as of June 30, 2009.  This
evaluation was accomplished under the supervision and with the participation of
our chief executive officer / principal executive officer, and chief financial
officer / principal financial officer who concluded that our disclosure controls
and procedures are not effective to ensure that all material information
required to be filed in the quarterly Form 10-Q has been made known to
them.




For
purposes of this section, the term disclosure controls and procedures means
controls and other procedures of an issuer that are designed to ensure that
information required to be disclosed by the issuer in the reports that it files
or submits under the Act (15 U.S.C. 78a et seg.) is recorded, processed,
summarized and reported, within the time periods specified in the Commission’s
rules and forms.  Disclosure, controls and procedures include, without
limitation, controls and procedures designed to ensure that information required
to be disclosed by in our reports filed 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.




In our
Form 10-KSB, we identified material weakness related to deficiencies in our
control environment, the staffing of our financial accounting department and
segregation of duties.




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-Q/A that has
materially affected, or is reasonably likely to materially affect, our
internal control over financial reporting.


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,
2009.





(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.





32.1           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 14, 2009


15