UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   -----------

                                   FORM 10-QSB

               |X| QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2005

              |_| TRANSITION REPORT UNDER TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                  FOR THE TRANSITION PERIOD FROM _____ TO_____

                        Commission File Number: 000-29531

                         ADVANCED MEDICAL INSTITUTE INC.
              (Exact name of small business issuer in its charter)

             NEVADA                                   88-0409144
 -------------------------------            ------------------------------------
 (State or other jurisdiction of            (I.R.S. Employer Identification No.)
 incorporation or organization)

  Level 1, 204-218 Botany Road
         Alexandria, NSW
            Australia                                     2015
 -------------------------------            ------------------------------------
(Address of principal                                  (Zip code)
executive offices)

                   Issuer's Telephone Number: (61) 2 9640 5253

                   -------------------------------------------
                            (Former Name and Address)

Check  whether  the issuer  (1) has filed all  reports  required  to be filed by
Section 13 or 15(d) of the Securities 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 check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). YES |_| NO |X|

There were 31,122,450 shares of the Issuer's common stock outstanding on October
31, 2005.

Transitional Small Business Disclosure Format (check one): YES |_| NO |X|

<PAGE>
<TABLE>
<CAPTION>


                                TABLE OF CONTENTS

                                                                                                              Page

<S>                                                                                                            <C>
PART I -          FINANCIAL INFORMATION.........................................................................2

         ITEM 1.           FINANCIAL STATEMENTS.................................................................2

         ITEM 2.           MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION...........................17

         ITEM 3.           CONTROLS AND PROCEDURES.............................................................25

PART II -         OTHER INFORMATION............................................................................26

         ITEM 1.           LEGAL PROCEEDINGS...................................................................26

         ITEM 2.           UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.........................26

         ITEM 3.           DEFAULTS UPON SENIOR SECURITIES.....................................................26

         ITEM 4.           SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.................................27

         ITEM 5.           OTHER INFORMATION...................................................................27

         ITEM 6.           EXHIBITS............................................................................27
</TABLE>

                                        1
<PAGE>


                         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

      CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
<TABLE>
<CAPTION>

                                               Notes        September 30,
                                                                 2005
                                                              (unaudited)   June 30, 2005

CURRENT ASSETS
<S>                                                              <C>            <C>
Cash                                                             $580,308       $295,961
Receivables                                                     4,118,694      2,812,704
Inventory                                                         227,654        228,163
Deferred tax assets                                               159,861              -
                                                           --------------  --------------
TOTAL CURRENT ASSETS                                            5,086,517      3,336,828
                                                           --------------  --------------
NON-CURRENT ASSETS
Receivables due from related parties             10                70,903        220,995
Security deposits                                                  92,551         87,494
Property and equipment, net                       3               338,493        330,872
Intangible assets                                               1,007,058        973,302
                                                           --------------  --------------
TOTAL NON-CURRENT ASSETS                                        1,509,005      1,612,663
                                                           --------------  --------------
TOTAL ASSETS                                                   $6,595,522     $4,949,491
                                                           ==============  ==============
CURRENT LIABILITIES
Unearned revenue                                               $3,087,472     $1,803,044
Payables                                                        2,536,539      1,802,246
Payables due to related parties                  10                     -          1,835
Interest bearing liabilities                      5                44,459        144,685
Provisions for compensated absences                               102,320        190,685
Income taxes payable                                              107,375        108,097
                                                           --------------  --------------
TOTAL CURRENT LIABILITIES                                       5,878,165      4,050,592
                                                           --------------  --------------
NON-CURRENT LIABILITIES
Payables due to related parties                  10                65,402         18,427
Rental deposit received                                             3,973          3,981
Interest bearing liabilities                      5                78,684         76,275
Deferred tax liabilities                                                -            415
Minority interests                                                 (4,629)             -
                                                           --------------  --------------
TOTAL NON-CURRENT LIABILITIES                                     143,430         99,098
                                                           --------------  --------------
TOTAL LIABILITIES                                               6,021,595      4,149,690
                                                           --------------  --------------
STOCKHOLDERS' EQUITY
Common stock, par value $0.001 per share,
  90,000,000 shares authorized,
  31,122,450 and 31,122,450 issued and
   outstanding, respectively                                       31,122         31,122
Additional paid in capital                                        782,805        782,805
Other comprehensive income                                       (172,222)      (173,407)
Retained earnings (deficit)                                       (67,778)       159,281
                                                           --------------  --------------
TOTAL STOCKHOLDERS' EQUITY                                        573,927        799,801
                                                           --------------  --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                     $6,595,522     $4,949,491
ITEM 1.  FINANCIAL STATEMENTS (CONTINUED)                  ==============  ==============
</TABLE>


                                       2
<PAGE>

      CONSOLIDATED STATEMENTS OF INCOME

                                                     Three Months Ended
                                                September 30,    September 30,
                                                    2005              2004
                                                 (unaudited)       (unaudited)

TOTAL REVENUE                                   $  5,094,700    $  2,832,816

COST OF REVENUE                                   (1,910,514)       (849,784)
                                                ------------    ------------
GROSS PROFIT                                       3,184,186       1,983,032
                                                ------------    ------------
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES      (3,558,002)     (1,780,167)
                                                ------------    ------------
OTHER INCOME AND EXPENSE
Rental income                                         12,933           5,540
Bank interest                                          2,691           1,704
Sundry income                                            379               -
Provision for doubtful debt written back                   -         211,845
Interest expense                                      (1,246)        (10,118)
                                                ------------    ------------
TOTAL OTHER INCOME AND (EXPENSE)                      14,757         208,971
                                                ------------    ------------
NET (LOSS) INCOME (before income tax expense)       (359,059)        411,836

INCOME TAX (EXPENSE) BENEFIT                         127,473        (123,550)
                                                ------------    ------------
NET INCOME (LOSS) (before minority interest)        (231,586)        288,286

NET LOSS ATTRIBUTABLE TO OUTSIDE EQUITY
INTERESTS                                              4,527               -
                                                ------------    ------------
NET INCOME (LOSS)                                   (227,059)        288,286
                                                ============    ============
Net income (loss) per share, basic              ($      0.01)   $       0.01
                                                ============    ============
Weighted average number of shares                 31,122,450      25,000,000
                                                ============    ============


                                        3
<PAGE>

ITEM 1.  FINANCIAL STATEMENTS (CONTINUED)

      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                              Three Months Ended
                                                                        September 30,   September 30,
                                                                            2005           2004
                                                                         (unaudited)    (unaudited)

Cash Flows from Operating Activities

<S>                                                                      <C>            <C>
Receipts from Customers                                                  $ 4,874,955    $ 2,764,682
Interest Received                                                              2,691          1,704
Payment to Suppliers & Employees                                          (4,578,659)    (2,810,732)
                                                                         ------------   ------------
Net cash provided by (used in) operating
activities                                                                   298,987        (44,346)
                                                                         ------------   ------------
Cash Flows from Investing Activities

Proceeds from Sale of Plant & Equipment                                            -          2,205
Payment for Property, Plant & Equipment                                      (10,839)        (3,584)
Payment for Intellectual Properties                                          (33,652)             -
Loans to related entities                                                       (755)       (75,663)
(Payment for) Receipt on  security deposit                                    (5,218)           686
                                                                         ------------   ------------
Net cash used in investing activities                                        (50,464)       (76,356)
                                                                         ------------   ------------
Cash Flows From Financing Activities
Collection of Receivable                                                     150,771              -
Interest & Other Finance costs paid                                           (1,246)       (10,118)
Proceeds from Borrowings                                                           -        141,230
Repayment of Borrowings                                                     (115,219)        (7,360)
                                                                         ------------   ------------
Net cash provided by financing activities                                     34,306        123,752
                                                                         ------------   ------------
Net increase in cash held                                                    282,829          3,050
Foreign currency conversion                                                    1,518          6,688
Cash at beginning of Financial Year                                          295,961        172,984
                                                                         ------------   ------------
Cash at end of period                                                    $   580,308    $   182,722
                                                                         ============   ============
</TABLE>

                                       4
<PAGE>

ITEM 1.  FINANCIAL STATEMENTS (CONTINUED)

      CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
<TABLE>
<CAPTION>

                                                                            Three Months Ended
                                                                      September 30,     September 30,
                                                                           2005             2004
                                                                       (unaudited)       (unaudited)

Reconciliation of Cash

Cash at the end of financial period as shown
in the Statement of Cash Flows is reconciled
to the related items in the Statement of
Financial Position as follows:

<S>                                                                      <C>            <C>
Cash                                                                     $   580,308    $   182,722
                                                                         ============   ============
Reconciliation of Cash Flow from Operations
with (Loss) Profit from Ordinary Activities
after Income Tax
Net Income                                                                  (231,586)       288,286

Non-Cash Flows in (Loss) Profit from
Ordinary Activities
Depreciation                                                                  21,764         19,066
Provision for doubtful debt (written back)                                   199,375       (211,845)

Cash Flows in (Loss) Profit from Financing
Activities
Interest & Other Finance costs paid                                            1,246         10,118

Changes in Assets and Liabilities
(Increase) Decrease in receivables                                        (1,502,848)       120,233
Increase in deferred tax assets                                             (159,202)             -
Increase (Decrease) in unearned revenue                                    1,279,819       (211,350)
Increase (Decrease) in payables                                              778,248       (182,404)
Decrease in provisions for compensated
absences                                                                     (87,351)             -
(Decrease) Increase in income tax payable                                       (478)       123,550
                                                                         ------------   ------------
Cash Flows Provided by (Used in) Operating
Activities                                                               $   298,987    $   (44,346)
                                                                         ============   ============
</TABLE>


                                       5
<PAGE>


     ITEM 1.                            FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>

                           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

                                            Common Stock         Additional        Other          Retained
                                     -------------------------     Paid-In     Comprehensive      Earnings
                                        Shares        Amount       Capital         Income         (Deficit)       Total
                                     ------------- -----------  -------------  ---------------  -------------  -------------

<S>                                   <C>               <C>           <C>            <C>            <C>           <C>
      Balance June 30, 2004            25,000,000        25,000        (6,074)        (54,904)       (839,874)     (875,852)
      Issuance of stock                 6,122,450         6,122       755,878                -              -       762,000
      Recapitalization as result
      of merger                                 -             -        33,001                -              -        33,001
      Other comprehensive income                -             -             -        (118,503)              -      (118,503)
      Net income, June 30, 2005                 -             -             -                -        999,155       999,155
                                     ------------- --------------- --------------- ------------ -------------- -------------

      Balance June 30, 2005            31,122,450       $31,122      $782,805       ($173,407)       $159,281      $799,801
      Other comprehensive income
      (unaudited)                               -             -             -           1,185               -         1,185
      Net income, September 30,
      2005 (unaudited)                          -             -             -                -       (227,059)     (227,059)
                                     ------------- --------------- --------------- ------------ -------------- -------------

      Balance September 30, 2005       31,122,450       $31,122      $782,805       ($172,222)       ($67,778)     $573,927
                                     ============= =============== =============== ============ ============== =============
</TABLE>

                                       6
<PAGE>


                        ADVANCED MEDICAL INSTITUTE, INC.
                                AND SUBSIDIARIES

                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2005 AND 2004

1.    NATURE OF BUSINESS

      Nature of Business

      Advanced Medical Institute,  Inc. (fka Hawksdale Financial Visions,  Inc.)
      ("Company") was organized  December 6, 1996 under the laws of the State of
      Nevada and was previously in the development stage through March 21, 2005.

      On March 21, 2005 the Company  completed a Stock  Exchange  Agreement with
      Advanced  Medical   Institute  Pty  Ltd  (an  Australian   Company)  ("AMI
      Australia"). As a result of the exchange agreement, the reorganization was
      treated  as an  acquisition  by the  accounting  acquiree  that  is  being
      accounted for as a  recapitalization  and as a reverse merger by the legal
      acquirer for accounting purposes.  Pursuant to the  recapitalization,  all
      capital   stock   shares  and   amounts  and  per  share  data  have  been
      retroactively restated.  Accordingly, the financial statements include the
      following:

            (1) The balance sheet  consists of the net assets of the  accounting
      acquirer at  historical  cost and the net assets of the legal  acquirer at
      historical cost.
            (2) The  statements  of  operations  include the  operations  of the
      accounting  acquirer for the period  presented  and the  operations of the
      legal acquirer from the date of the merger.

      AMI Australia is a company limited by shares,  incorporated  and domiciled
      in  Australia.  The  principal  activity of AMI  Australia  is the medical
      treatment  of sexual  dysfunction.  AMI  Australia  is a service  provider
      company which arranges for patients with sexual dysfunction to be provided
      with medical services,  pharmaceuticals  and associated  support services.
      AMI  Australia  operates a centralized  call center and seventeen  clinics
      Australia wide. The  pharmaceuticals are obtained from a limited number of
      vendors.  On July  15,  2005 AMI  Australia  commenced  operations  in New
      Zealand.  AMI Australia's New Zealand services are being provided from its
      head  office  in  Sydney,  where 2 of its  doctors  are  licensed  in both
      Australia and New Zealand.

2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      The accounting and reporting policies of the Company conform to accounting
      principles  generally  accepted  in the  United  States  of  America.  The
      following are descriptions of the more significant policies:

      Basis of Accounting

      The accompanying financial statements are prepared on an accrual basis.

      Cash Equivalents

      For  purposes of the  statement  of cash flows the Company  considers  all
      highly liquid  investments  with  maturities of three months or less to be
      cash equivalents.

      Use of Estimates

      The  preparation  of financial  statements  in conformity  with  generally
      accepted  accounting  principles requires management to make estimates and
      assumptions   that  affect  certain   reported  amounts  and  disclosures.
      Accordingly, actual results could differ from those estimates.

                                       7
<PAGE>

2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

      Revenue Recognition

      Sales  are  reported  as  deferred  income  when the sales  contracts  are
      executed and the term of the contract  exceeds three  months.  Up to three
      months  medication  is  delivered  to the  patient  upon the  signing of a
      contract.  Generally  the term of the sales  contracts are up to one year,
      but they can be for longer  periods of time.  The deferred  income arising
      from the  contracts  that  exceed  three  months is then  amortized,  on a
      straight  line  basis,  into  income  during  the  approximated  composite
      remaining  medication delivery period.  This approximated  composite is an
      estimate that may vary from period to period.

      Advertising Expense

      Advertising costs are charged to expense as incurred.

      Income Tax

      Income taxes have been  provided  based upon the tax laws and rates in the
      countries in which  operations  are  conducted  and income is earned.  The
      income tax rates imposed by the taxing  authorities  vary.  Taxable income
      may vary from pre-tax income for financial accounting  purposes.  There is
      no expected relationship between the provision for income taxes and income
      before income taxes because the countries have different  taxation  rules,
      which  vary  not only to  nominal  rates  but  also in terms of  available
      deductions,   credits  and  other   benefits.   Deferred  tax  assets  and
      liabilities  are  recognized  for the  anticipated  future tax  effects of
      temporary  differences  between the financial  statement basis and the tax
      basis of the Company's  assets and  liabilities  using the  applicable tax
      rates in  effect at year end as  prescribed  by SFAS 109  "Accounting  for
      Income Taxes".

      Inventories

      Inventories  are  measured at the lower of cost or net  realizable  value.
      Costs are assigned on a first-in first-out basis.

      Property and Equipment

      Property and equipment are carried at cost.  Expenditures  for maintenance
      and repairs are expenses as incurred and  expenditures  for major renewals
      and betterments are  capitalized.  Assets retired or sold are removed from
      the  property  accounts,  with  gains or losses on  disposal  included  in
      income.

                                       8
<PAGE>

2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

      Depreciation

      Equipment placed in service is depreciated over the estimated useful lives
      of the assets using the straight line depreciation method.

      Employee Entitlements

      Contributions are made to an employee  superannuation fund and are charged
      as expenses when incurred.

      Foreign Currency

      As of September 30, 2005 and June 30, 2005,  the accounts of AMI Australia
      and its  subsidiaries  were  maintained and its financial  statements were
      expressed in Australian  Dollars  (AUD).  Such financial  statements  were
      translated  into  U.S.  Dollars  (USD) in  accordance  with  Statement  of
      Financial   Accounts   Standards   ("SFAS")  No.  52,  "Foreign   Currency
      Translation",  with the AUD as the functional  currency.  According to the
      Statement,  all assets and  liabilities  were  translated  at the  current
      exchange rate,  stockholders' equity is translated at the historical rates
      and income statement items are translated at the average exchange rate for
      the period. The resulting translation adjustments are reported under other
      comprehensive   income  in  accordance  with  SFAS  No.  130,   "Reporting
      Comprehensive Income".

      As of September  30, 2005 and June 30, 2005 the exchange  rate between AUD
      and the USD was AUD$1=USD $0.7603 and AUD$1=USD$0.7620,  respectively. The
      weighted-average    rate   of   exchange   between   AUD   and   USD   was
      AUD$1=USD$0.75521 and AUD$1 = USD$0.75581, respectively.

      Research and Development Costs

      Research and  development  costs are charged  against income from ordinary
      activities before income tax as incurred.

      Principles of Consolidation

      The consolidated  financial statements include the accounts of the Company
      and its wholly owned subsidiary, Advanced Medical Institute Pty., Ltd. and
      its majority owned subsidiaries,  Intelligent Medical Technologies Pty Ltd
      ("IMT") and Whygo Video  Conferencing  Pty Ltd ("WHYGO").  All significant
      intercompany   accounts  and   transactions   have  been  eliminated  upon
      consolidation.

      Intangible Assets

      Trademarks  and other  intangible  assets  determined  to have  indefinite
      useful  lives  are  not  amortized.  We test  such  trademarks  and  other
      intangible assets with indefinite useful lives for impairment annually, or
      more frequently if events or circumstances indicate that an asset might be
      impaired.  Trademarks  and  other  intangible  assets  determined  to have
      definite  lives are  amortized  over their useful lives or the life of the
      trademark and other intangible asset, whichever is less.

      Earnings Per Share

      The Company uses SFAS No. 128,  "Earnings Per Share",  for calculating the
      basic and diluted  earnings  (loss) per share.  Basic earnings  (loss) per
      share are computed by dividing net income  (loss)  attributable  to common
      stockholders by the weighted average number of common shares  outstanding.
      Diluted  earnings  per share are  computed  similar to basic  earnings per
      share except that the  denominator  is  increased to include  common stock
      equivalents, if any, as if the potential common shares had been issued.

                                       9
<PAGE>

                                                     September 30,      June 30,
                                                         2005            2005

3.    PROPERTY, PLANT AND EQUIPMENT

Land and Buildings

Leasehold improvements at cost                         123,402           123,402
Less: Accumulated depreciation                          31,343            28,879
                                                --------------    --------------
                                                        92,059            94,523
                                                --------------    --------------
Motor Vehicles                                          37,770            37,770
Less: Accumulated Depreciation                          13,797            12,292
                                                --------------    --------------
                                                        23,973            25,478
                                                --------------    --------------
Office Furniture & Equipment                           157,644           140,029
Less: Accumulated Depreciation                          36,706            32,883
                                                --------------    --------------
                                                       120,938           107,146
                                                --------------    --------------
Computer Hardware - at Cost                            132,539           125,981
Less: Accumulated Depreciation                          95,572            90,400
                                                --------------    --------------
                                                        36,967            35,581
                                                --------------    --------------
Low Value Pooled Fixed Assets                           66,745            65,745
Less: Accumulated Depreciation                          50,117            47,425
                                                --------------    --------------
                                                        16,628            18,320
                                                --------------    --------------
Computer Software at cost                              133,740           129,529
Less: Accumulated Depreciation                          85,812            79,705
                                                --------------    --------------
                                                        47,928            49,824
                                                --------------    --------------
Total Property, Plant and Equipment                    338,493           330,872
                                                ==============    ==============


                                                     September 30,      June 30,
                                                         2005            2005

4.    INTANGIBLE ASSETS

Intellectual Properties                              1,007,058           973,302
                                                --------------    --------------
Total Intangible Assets                              1,007,058           973,302
                                                ==============    ==============

                                       10
<PAGE>


                                                     September 30,      June 30,
                                                         2005            2005
5.       INTEREST BEARING LIABILITIES

Current, as of the period ended;
Capitalized lease liability                             44,459            38,005
Unsecured loan                                               -           106,680
                                                --------------    --------------
                                                        44,459           144,685
                                                ==============    ==============
Non-current, due during the period ended:
Capitalized lease liability
2006                                                    49,263            42,182
2007                                                    29,421            34,093
                                                --------------    --------------
Total non-current                                       78,684            76,275
                                                ==============    ==============

      The interest bearing liabilities require monthly payments of principal and
      interest  at a per  annum  interest  rate  ranging  from  7.40% to  11.4%.
      Obligations under the notes are secured by the financed assets included in
      property and equipment.

6.    LEGAL PROCEEDINGS

      As of September 30, 2005, there was no litigation pending or threatened by
      or  against  the  Company  or IMT or Whygo.  AMI  Australia  currently  is
      involved in the following litigation and administrative matters.

      On September 27, 2004,  Rocco  Licastro,  a former  patient,  filed a suit
      against AMI Australia in the District Court of NSW, Sydney  Registry.  Mr.
      Licastro's  claims  result from an  injection  therapy  that Mr.  Licastro
      claims caused physical injuries. Mr. Licastro is seeking damages including
      medical  expenses,  but no  amount  has  been  specified  to  date.  These
      proceeding are in an early stage. AMI Australia has denied the allegations
      and is vigorously defending this suit.

      On August 24, 2004, AMI Australia  initiated a suit against Mr. Mark Ryan,
      a former  consultant,  two  companies  controlled  by Mr.  Ryan  which now
      compete with us, Dr. Ian Davies,  Mr. Ryan's partner,  and a third company
      controlled  by Dr.  Davies  (the  "Defendants")  in the  Federal  Court of
      Australia.   AMI   Australia   alleges   that  Mr.   Ryan   breached   his
      confidentiality  agreement with it and misused its intellectual  property.
      AMI  Australia  obtained  interim  orders in late 2004.  AMI  Australia is
      seeking a permanent  injunction  restraining the Defendants from using its
      confidential  information and intellectual property. AMI Australia is also
      seeking an as of yet  unspecified  amount of damages.  This  proceeding is
      still in the discovery stage. The Defendants have denied the allegations.

      On August 10, 2004,  Bradley Joyce, AMI Australia's former Chief Executive
      Officer filed a suit against AMI Australia in the Industrial Commission of
      NSW. Mr.  Joyce  alleges that his contract is unfair and seeks to have the
      Industrial  Commission  of NSW amend the  contract  to include a six month
      severance  payment  (which  would  be  approximately  AU$100,000).   These
      proceedings are at an early stage and a compulsory conciliation conference
      did not resolve the claim. AMI Australia has denied the allegations and is
      vigorously defending this suit.

      On July 19, 2004,  the  Australian  Competition  and  Consumer  Commission
      (collectively,  the  "ACCC")  filed a suit  against AMI  Australia  in the
      Federal Court of Australia Sydney Registry.  The ACCC claims that a series
      of  advertisements  made  by AMI  Australia  involving  a  celebrity  that
      confessed  impotence  were  misleading  and  deceptive.  AMI Australia has
      denied the  allegation  and is  vigorously  defending  this suit.  ACCC is
      seeking  corrective  advertising for the alleged  misleading and deceptive
      advertisements.  The ACCC has not made any claim for damages.  The hearing
      of the  proceedings  concluded on September 2, 2005 with a final  judgment
      expected later this calendar year.

                                       11
<PAGE>

6.    LEGAL PROCEEDINGS (CONTINUED)

      On December 17, 2002,  Alan Hibberd,  a former  patient,  notified a claim
      against AMI Australia in accordance with the Personal Injuries  Proceeding
      Act of 2002 (Qld).  AMI Australia  received the  notification  on April 5,
      2004. Mr.  Hibberd claims that we did not properly  notify him of possible
      adverse  effects of the medical  procedure he  underwent.  Mr.  Hibberd is
      seeking  reimbursement  of wages in the amount of AU$1,731  and  presently
      unspecified  damages  for  physical  injuries.  These  proceedings  are in
      pre-court  procedure.  AMI  Australia  has denied the  allegations  and is
      vigorously defending this suit.

      On September 27, 2004,  Rocco  Licastro,  a former  patient,  filed a suit
      against AMI Australia in the District Court of NSW, Sydney  Registry.  Mr.
      Licastro's  claims  result from an  injection  therapy  that Mr.  Licastro
      claims caused physical injuries. Mr. Licastro is seeking damages including
      medical  expenses,  but no  amount  has  been  specified  to  date.  These
      proceeding are in an early stage. AMI Australia has denied the allegations
      and is vigorously defending this suit.

      On August 24, 2004, AMI Australia  initiated a suit against Mr. Mark Ryan,
      a former  consultant,  two  companies  controlled  by Mr.  Ryan  which now
      compete with us, Dr. Ian Davies,  Mr. Ryan's partner,  and a third company
      controlled  by Dr.  Davies  (the  "Defendants")  in the  Federal  Court of
      Australia.   AMI   Australia   alleges   that  Mr.   Ryan   breached   his
      confidentiality  agreement with it and misused its intellectual  property.
      AMI  Australia  obtained  interim  orders in late 2004.  AMI  Australia is
      seeking a permanent  injunction  restraining the Defendants from using its
      confidential  information and intellectual property. AMI Australia is also
      seeking an as of yet  unspecified  amount of damages.  This  proceeding is
      still in the discovery stage. The Defendants have denied the allegations.

7.    LEASE COMMITMENTS

      The  Company  is  party  to  long-term,   non-cancelable  operating  lease
      agreements for  administrative  offices and clinic  locations.  The future
      aggregate   minimum  annual  lease  payments   arising  from  these  lease
      agreements are as follows:

                                           September 30,       September 30,
                                              2005                 2004

Due during the period ended
September 30:
2005                                                  -           439,529
2006                                            400,771           259,775
2007                                            290,651           145,701
2008                                            170,811             7,677
2009                                             89,411                 -

                                                951,644           852,682

8.    CONCENTRATION

      Sales  Markets - The  Company's  revenues  arise from  Australian  and New
      Zealand customers.

                                       12
<PAGE>

      Suppliers - Although the Company has access to a variety of suppliers, the
      majority  of the  Company's  products  that are  obtained  for  resale are
      purchased from a limited number of suppliers.

                                       13
<PAGE>

9.    SHARE EXCHANGE AGREEMENT

      On March 21, 2005 (the "Closing Date"),  Advanced Medical Institute,  Inc.
      (a  Nevada,   USA  company)  ("AMI  USA")   consummated  the  transactions
      contemplated by that certain Share Exchange  Agreement dated as of January
      28, 2005 (the "Exchange Agreement") by and among AMI USA, Advanced Medical
      Institute  Pty  Limited,   a  privately  owned  Australian  company  ("AMI
      Australia"),  and  AMI  Australia's  shareholders,  (the  "Shareholders"),
      pursuant  to which AMI USA  acquired  all of the  issued  and  outstanding
      shares of stock of AMI  Australia  in  exchange  for the  issuance  in the
      aggregate of 14,600,000 of AMI USA's shares of common stock (the "Shares")
      to the  Shareholders.  The issuance of AMI USA's shares of common stock to
      the Shareholders was exempt from registration  under the Securities Act of
      1933,  as  amended   ("Securities  Act")  pursuant  to  Section  4(2)  and
      Regulation S promulgated under the Act.

      Following the Closing Date, AMI Australia became a wholly-owned subsidiary
      of AMI USA, and upon the issuance of the Shares,  the Shareholders  became
      the  owners  of  approximately  58.4%  of  all  of AMI  USA's  issued  and
      outstanding stock.
<TABLE>
<CAPTION>

                                                       September 30,                     September 30,
                                                           2005        June 30, 2005        2004

10.   RELATED PARTY TRANSACTIONS

  Advance Medical Solutions Pty. Ltd. (an
  AU co.)
  Relationship: Under common management
  control (dissolved as of September 30,
  2005)
<S>                                                                                           <C>
  Call center fees charged to the Company                          -                          62,765
  Customer service fees charged to the
  Company                                                          -                          36,353

  Jack Vaisman  (an AU citizen)
  Relationship: Director of the Company
  Director salary                                            131,639                          29,129
  Payable to this related party
  (including annual leave)                                    65,402          18,427

  James Matthews  (an AU citizen)
  Relationship: Director of the
  subsidiary (Whygo)
  Director salary                                             16,278                               -
  Receivable from this related party                          37,270          36,591

  Total Health Screening Pty. Ltd. (an AU
  co.)
  Relationship: Affiliated with a
  director of the Company (Jack Vaisman
  was previously a director - he took
  over management in order to try to
  recover monies owed to AMI)
  Rental revenue received from this entity                     2,171                           5,540
        Payable to this related party                              -           1,835
</TABLE>

                                       14
<PAGE>
<TABLE>
<CAPTION>

                                                           September 30,                    September 30,
                                                               2005       June 30, 2005        2004

 10.         RELATED PARTY TRANSACTIONS (CONTINUED)

  Zinalda Vaisman  (an AU citizen)
  Relationship: Jack Vaisman's wife
<S>                                                           <C>           <C>                  <C>
  Salary                                                      12,141                               -

  Dragon Enterprises Ltd.
  Relationship: This entity owns
  1,850,000 shares of the Company
  Receivable from this related party                          33,633         184,404

  TOTAL Receivables due from related
   parties                                                    70,903         220,995
                                                              ======         =======              =======

  TOTAL Payables due to related parties                       65,402          20,262
                                                              ======         =======              =======

  Receivables from, and payables to, related
  parties are unsecured, interest-free and
  have no fixed repayment term.
</TABLE>

11.   CONTINGENT LIABILITY

      A dispute  with a previous  telecommunication  carrier over billing in the
      amount of $122,924 arose in 2002.  Since the time that AMI Australia filed
      a counter claim of $550,904 against the carrier in 2003, no correspondence
      has been received,  from the carrier. No settlement has been reached,  but
      in the opinion of the Company's directors,  the $122,924 will not be paid.
      The financial  statements do not include any adjustments that might result
      from the outcome of this uncertainty.

12.   INVESTING TRANSACTIONS

      AMI  Australia   acquired  51%  of  the  shares  in  Intelligent   Medical
      Technologies Pty Ltd on October 28, 2004 for $666,214.  On May 4, 2005 AMI
      Australia  also  purchased  an  additional  42%  of  Intelligent   Medical
      Technologies  Pty Ltd for $190,500,  increasing its shareholding to 93% of
      IMT.

                                       15
<PAGE>

13.   STOCK

      On October 28, 2004 the officers and directors of the Company  surrendered
      for cancellation 1,450,000 shares of common stock.

      On November 8, 2004 the Company  issued a stock  dividend of 15 shares for
      each share outstanding on November 8, 2004.

      On May 25, 2005 the Company's  Articles of  Incorporation  were amended to
      increase  the  number of  authorized  shares of the  capital  stock of the
      Company to 100,000,000. The Company designated 90,000,000 shares as Common
      Stock and 10,000,000 shares as Preferred Stock.

      On June 29, 2005 the Company  entered into a  subscription  agreement with
      certain non-U.S. persons pursuant to which the Company issued an aggregate
      of  6,122,450  shares of common  stock for  aggregate  gross  proceeds  of
      $762,000.

      All  prior  year  information  has been  adjusted  to  reflect  the  stock
      cancellation and the stock dividend.

14.   OTHER COMPREHENSIVE INCOME

      Balances of related  after-tax  components  comprising  accumulated  other
      comprehensive  income  (loss),   included  in  stockholders'   equity,  at
      September 30, 2005 and June 30, 2004 and 2005, and are as follows:
<TABLE>
<CAPTION>

                                                                 Foreign Currency         Accumulated
                                                                    Translation              Other
                                                                    Adjustment           Comprehensive
                                                                                            Income
                                                                 ------------------    ------------------
<S>                                                                 <C>                  <C>
       Balance at June 30, 2004                                     $ (54,904)           $ (54,904)
       Change for 2005                                               (118,503)            (118,503)
                                                                 ------------------    ------------------
       Balance at June 30, 2005                                      (173,407)            (173,407)
       Change for three months ended September 30,
          2005                                                         (1,940)              (1,940)
                                                                 ------------------    ------------------
       Balance at September 30, 2005                                $(175,347)           $(175,347)
                                                                 ==================    ==================
</TABLE>

                                       16
<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

THE FOLLOWING  DISCUSSION  SHOULD BE READ IN  CONJUNCTION  WITH THE  INFORMATION
CONTAINED  IN THE  FINANCIAL  STATEMENTS  OF THE COMPANY  AND THE NOTES  THERETO
APPEARING  ELSEWHERE HEREIN AND IN CONJUNCTION WITH THE MANAGEMENT'S  DISCUSSION
AND ANALYSIS  SET FORTH IN THE  COMPANY'S  ANNUAL  REPORT ON FORM 10-KSB FOR THE
YEAR ENDED JUNE 30, 2005.

PRELIMINARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

The statements  contained in this Form 10-QSB that are not purely historical are
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. These include statements about the Company's expectations,  beliefs,
intentions or strategies for the future, which are indicated by words or phrases
such  as  "anticipate,"   "expect,"   "intend,"  "plan,"  "will,"  "the  Company
believes,"   "management   believes"   and  similar   words  or   phrases.   The
forward-looking  statements are based on the Company's current  expectations and
are subject to certain  risks,  uncertainties  and  assumptions.  The  Company's
actual  results  could  differ  materially  from  results  anticipated  in these
forward-looking  statements.  All  forward-looking  statements  included in this
document are based on  information  available to the Company on the date hereof,
and the  Company  assumes  no  obligation  to  update  any such  forward-looking
statements.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Our   discussion  and  analysis  or  plan  of  operations  are  based  upon  our
consolidated  financial statements,  which have been prepared in accordance with
accounting  principles  generally accepted in the United States. The preparation
of these financial  statements  requires us to make estimates and judgments that
affect the reported amounts of assets,  liabilities,  revenues and expenses, and
related  disclosure of contingent assets and liabilities.  On an on-going basis,
we evaluate  our  estimates,  including  those  related to  accounts  receivable
reserves,  provisions  for impairment  losses of affiliated  companies and other
intangible  assets,  income taxes and  contingencies.  We base our  estimates on
historical  experience and on various other  assumptions that are believed to be
reasonable  under the  circumstances,  the  results  of which form the basis for
making  judgments about the carrying  values of assets and liabilities  that are
not readily  apparent from other  sources.  Actual results may differ from these
estimates under different assumptions or conditions.

We  believe  the  following  critical   accounting  policies  reflect  our  more
significant   estimates  and   assumptions   used  in  the  preparation  of  our
consolidated financial statements:

REVENUE  RECOGNITION  - Sales are  reported  as  deferred  income when the sales
contracts are executed and the term of the contract exceeds three months.  Up to
three  months  medication  is  delivered  to the  patient  upon the signing of a
contract. Generally the term of the sales contracts are up to one year, but they
can be for  longer  periods  of  time.  The  deferred  income  arising  from the
contracts that exceed three months is then amortized,  on a straight-line basis,
into income during the  approximated  composite  remaining  medication  delivery
period. This approximated  composite is an estimate that may vary from period to
period.

ALLOWANCE FOR DOUBTFUL  ACCOUNTS - We evaluate the  collectibility  of our trade
receivables  based  on a  combination  of  factors.  We  regularly  analyze  our
significant  customer  accounts,  and,  when  we  become  aware  of  a  specific
customer's  inability to meet its  financial  obligations  to us, such as in the
case of bankruptcy filings or deterioration in the customer's  operating results
or financial  position,  we record a specific reserve for bad debt to reduce the
related  receivable  to the amount we  reasonably  believe is  collectible.  The
allowances  are  calculated  based on  detailed  review  of  certain  individual
customer  accounts,  historical  rates and an estimation of the overall economic
conditions  affecting our customer  base. We review a customer's  credit history
before  extending  credit.  If the financial  condition of our customers were to
deteriorate,  resulting  in an  impairment  of their  ability to make  payments,
additional allowances may be required.

                                       17
<PAGE>

INCOME TAXES - We record a valuation allowance to reduce our deferred tax assets
to the amount that is more likely than not to be  realized.  We have  considered
future market growth,  forecasted  earnings,  future taxable income, and prudent
and feasible tax planning  strategies  in  determining  the need for a valuation
allowance.

CONTINGENCIES  - We may be subject to certain  asserted  and  unasserted  claims
encountered  in the  normal  course  of  business.  It is our  belief  that  the
resolution  of these  matters  will not have a  material  adverse  effect on our
financial  position  or  results  of  operations,  however,  we  cannot  provide
assurance that damages that result in a material adverse effect on our financial
position  or results of  operations  will not be  imposed in these  matters.  We
account for contingent  liabilities when it is probable that future expenditures
will be made and such expenditures can be reasonably estimated.

LONG-LIVED  ASSETS - We  periodically  assesses  the need to  record  impairment
losses on long-lived assets, such as property, plant and equipment, goodwill and
purchased  intangible  assets,  used  in  operations  and its  investments  when
indicators of impairment  are present  indicating  the carrying value may not be
recoverable. An impairment loss is recognized when estimated undiscounted future
cash  flows  expected  to  result  from the use of the asset  plus net  proceeds
expected from disposition of the asset (if any) are less than the carrying value
of the asset. When an impairment is identified, the carrying amount of the asset
is reduced to its estimated fair value. All goodwill will no longer be amortized
and  potential  impairment  of goodwill  and  purchased  intangible  assets with
indefinite  useful lives will be evaluated using the specific  guidance provided
by SFAS No. 142 and SFAS No. 144,  "Accounting for the Impairment or Disposal of
Long-Lived  Assets."  This  impairment  analysis  will  be  performed  at  least
annually. For investments in affiliated companies that are not majority-owned or
controlled,  indicators or value generally  include  revenue  growth,  operating
results, cash flows and other measures. Management then determines whether there
has been a permanent  impairment  of value  based upon events and  circumstances
that  have  occurred  since  acquisition.  It is  reasonably  possible  that the
impairment  factors  evaluated by management will change in subsequent  periods,
given that the Company operates in a volatile environment.  This could result in
material impairment charges in future periods.

NATURE OF THE OPERATIONS OF THE COMPANY

NATURE OF BUSINESS

      We were incorporated under the name of Hawksdale  Financial Visions,  Inc.
(sometimes  the  "Company")  on  December 6, 1996 under the laws of the State of
Nevada.  We originally had intended to time share a single family dwelling house
in the Rum Cay area of the Bahamas,  offering a one-twelfth fractional interest.
As at March 31, 1997,  all funds raised by the sale of shares of $.001 par value
common stock ("Common Stock") in order to fulfill our initial objective had been
expended and we, thereafter,  become dormant.  From March 31, 1997 until January
28, 2005, we were in the developmental  stage and had no operations and we could
be defined as a "shell"  company,  an entity  which is  generally  described  as
having  no or  nominal  operations  and  with no or  nominal  assets  or  assets
consisting solely of cash and cash equivalents.

      On October 1, 2004, we formed a corporation under the laws of the State of
Nevada  called  "Advanced  Medical  Institute  Inc." and on October 5, 2004,  we
acquired one hundred  shares of its common stock for cash.  On October 15, 2004,
the  subsidiary  was  merged  with and into the  Company  and as a result of the
merger, the Company's  corporate name was changed to "Advanced Medical Institute
Inc."

                                       18
<PAGE>

      On January 28,  2005,  we entered  into a Share  Exchange  Agreement  (the
"Exchange  Agreement") with Advanced Medical Institute Pty Limited,  a privately
owned Australian  company ("AMI Australia"),  and AMI Australia's  shareholders,
(the "Shareholders"), pursuant to which the parties agreed that we would acquire
all of the issued and  outstanding  shares of stock of AMI Australia in exchange
for the issuance in the  aggregate  of  14,600,000,  or 58.4%,  of our shares of
Common Stock (the  "Shares") to the  Shareholders.  On March 21, 2005, we closed
the transaction and issued our Shares, resulting in us acquiring the business of
AMI Australia (the "Share Exchange"),  which is discussed below. As used herein,
the  "Company"  shall  also  mean AMI  Australia  after  the  close of the Share
Exchange when used for events after March 21, 2005, described herein.

General Business Plan.

      AMI  Australia  was  established  in February 2001 when it entered into an
agreement with Health Services For Men and Australian Momentum Health to acquire
two chains of medical clinics which provide  services  relating to the treatment
of sexual  dysfunction.  AMI Australia  currently  operates 17 clinics Australia
wide and on July 15, 2005 AMI Australia commenced operations in New Zealand. For
the first  quarter  ended  September  30, 2005,  AMI  Australia's  revenues were
approximately $5 million ( AU$7 million ).

      AMI Australia is a service provider company which arranges for patients to
be provided  with medical  services,  pharmaceuticals  and  associated  clinical
support services to men and women with sexual dysfunction. Its treatment options
for men include:

      (a) injections,  lozenges, tablets and nasal spray program options for the
treatment of erectile dysfunction; and

      (b) injections, lozenges and nasal spray program options for the treatment
of premature ejaculation.

      AMI Australia is currently  developing and trialing  menopause  treatments
for women.  Less than 1% of AMI  Australia's  total  revenue is  generated  from
treatments for women.

      AMI  Australia's  efforts  to  penetrate  the  market  for  its  premature
ejaculation  treatments is still in an early implementation phase. AMI Australia
has achieved growth on a month by month basis since October 2004,  shortly after
AMI Australia  commenced  concentrating  on this part of the sexual  dysfunction
market.  Prior to this time AMI Australia did not directly  market its premature
ejaculation   programs.    AMI   Australia's   erectile   dysfunction   programs
predominantly  focus on men aged 40 and over whereas AMI  Australia's  premature
ejaculation  programs are  targeted at a broader  market (men aged 18 and over).
AMI  Australia  changed its  marketing  focus during  fiscal 2005 to target this
broader market for its premature ejaculation treatment programs.

      Each of its AMI Australia's  treatment  options are prescribed by licensed
Australian  and New Zealand  doctors and prepared and delivered by an Australian
or a New  Zealand  registered  compounding  pharmacy  in  full  compliance  with
Australian and New Zealand regulatory requirements. AMI Australia's products and
services  are only  available  by  prescription  and are sold on an  "off-label"
basis. AMI Australia's  treatment  options are generally only available  through
its medical clinics.

      Since August 1, 2003 AMI Australia has used in its business certain of the
intellectual  property  that since July 2005 has been  orally  licensed  from PE
Patent  Holdco Pty  Limited  on a  short-term  royalty  free  arrangement.  This
intellectual property consists solely of an Australian innovation patent for its
premature  ejaculation  programs (which patent is due to expire on July 9, 2012)
and an  Australian  standard  patent  application  (Australian  standard  patent
application No. 2004222783).  The Australian innovation patent was issued to Dr.
Jack Vaisman,  the Chief Executive Officer,  President and Chairman of the Board
of  Directors  of the Company and the  Founder,  President  and Chief  Executive
Officer of AMI  Australia  who on July 22,  2005  subsequently  transferred  the
patent to PE Patent  Holdco Pty Limited.  The  development  of the  intellectual
property  underlying the patents was undertaken and funded by Dr.  Vaisman.  The
innovation  patent,  titled  "Treatment  of  Premature  Ejaculation"  relates to
various methods of treatment delivery via nasal (mucosal) inhalation and topical
application of certain formulations which are used in AMI Australia's  treatment
programs for premature ejaculation.  The patents and associated formulations are
integral  to AMI  Australia's  premature  ejaculation  treatment  programs.  AMI
Australia's  injection,  lozenge and tablet  impotence and erectile  dysfunction
treatment programs are not patent protected.

                                       19
<PAGE>

      AMI Australia obtains  customers through direct  advertising and marketing
and through its existing customer database which exceeds 250,000 people.

      On July 15, 2005 AMI Australia  commenced  operations in New Zealand.  AMI
Australia's  services are being provided from its head office in Sydney, where 2
of its doctors are licensed in both  Australia  and New Zealand.  AMI  Australia
intends  to move  towards  full  operations  in New  Zealand  as a result of its
initial positive outcomes.

      AMI Australia is also in the process of developing  new treatment  options
to expand the range of treatment  methods and delivery systems  available to its
customers.

      AMI Australia's 93% owned subsidiary, Intelligent Medical Technologies Pty
Limited  ("IMT") was  granted the  exclusive  worldwide  right and license  from
Sheiman  Ultasonic  Research  Foundation  Pty  Limited  ("SURF")  to exploit and
sub-license  certain  inventions,  patents  and other  intellectual  property in
relation to certain ultrasonic nebuliser technology (including Australian Patent
No's  693064 and  753817,  European  Patent  No's 0 705 145 and 1 071 479 and US
Patent No's 5,908,158 and 6,379,616) within the field of the treatment of sexual
dysfunction in men and women (including impotence, premature ejaculation and the
treatment of female sexual arousal  disorders).  Some of these patents expire in
October 2013, with the remaining patents expiring around 2023. IMT applied for 4
worldwide  patents  relating to its  ultrasonic  nebuliser  device in July 2005.
Anantoly Fanshil,  a director of the Company,  owns 5% of the outstanding equity
of IMT.  IMT's  license is a broad based  license  which  includes  the right to
manufacture,  market,  sell and distribute  products based on the technology and
patents  within the field of use. IMT also has the option to extend its field of
use to the treatment of prostate diseases on payment of AU$1.

      IMT  acquired its license in order to develop an  ultrasonic  nebulizer to
deliver  medications to patients' lungs for the treatment of sexual  dysfunction
as it believes that this delivery  system will be more  efficient and clinically
effective  than any other  alternative  treatment  option and will reduce dosage
levels and the likelihood of side effects.

      IMT has  completed  development  of an initial  working  prototype  of the
nebulizer device.  Four further  prototypes of this device were completed during
August and September 2005.

      Additional  prototypes,  which  incorporate  various  improvements  to the
functionality  and efficiency of the device (the "Beta Devices"),  are scheduled
for completion during mid December 2005.

      IMT has received  advice from Brandwood  Biomed Pty Limited (an Australian
regulatory expert on TGA requirements) that it does not need to conduct clinical
trials to list its device with the TGA.

      On  completion  of the Beta  Devices,  IMT  intends to  commence a phase I
pharmacokinetic  clinical trial of a liquid form of a well known  medication for
the  treatment  of  erectile  dysfunction  which is capable  of being  delivered
through  the device in order to formally  prove the  efficacy of the device at a
conceptual  level. IMT has begun its preparation to commence these trials at the
direction  of and under  analysis by Q-Pharm,  the  commercial  arm of a leading
Australian  university.  IMT estimates the cost of this clinical  trial to be in
the order of $200,000

                                       20
<PAGE>

      IMT has been  spending a large  portion of its  capital  on  research  and
development  activities  with financial  support from AMI Australia  (AU$379,000
during fiscal 2005 being  approximately  US$284,000,  and AU$86,000 during three
months ended September 30, 2005 being approximately US$65,000).  AMI Australia's
loan to IMT is on an unsecured at call interest  free basis.  Such loan is an on
demand loan and may be called by AMI  Australia at any time.  IMT has compiled a
leading  team of  experts  to  assist it with  these  research  and  development
activities.  AMI Australia has entered into a  distribution  agreement  with IMT
whereby AMI Australia has the exclusive  worldwide  distribution rights to IMT's
nebulizer  device.  As of September 30, 2005,  the IMT research and  development
into the efficacy of the nebulizer is still in a development stage and there has
been no income generated by AMI Australia as a result of its agreement with IMT.

Competition

      AMI Australia  competes with rival  treatments such as Viagra,  Cialis and
Levitra in the erectile dysfunction field. AMI Australia does not currently have
any competitors in the premature ejaculation market.

      Companies   of   all   sizes   are   engaged   in  the   development   and
commercialization  of  technologies  in the erectile  dysfunction  and premature
ejaculation  market  segments.  At present no  alternate  premature  ejaculation
technology  has been  commercialized.  Competition  is intense  in the  erectile
dysfunction   segment  of  our  business  and  includes  many  large  and  small
competitors who have greater  revenues,  more customers and a higher level brand
recognition than AMI Australia.  The efficacy,  safety, patients' and customers'
ease of use and cost  effectiveness  of our products are  important  factors for
success  in  all of our  principal  businesses.  Many  of our  competitors  have
substantially  greater  financial  and  other  resources,  larger  research  and
development  staffs and more  experience  in the  regulatory  approval  process.
Moreover,  potential  competitors  have or may have patents or other rights that
conflict with patents covering our technologies.

Significant Subsidiaries of AMI Australia.

AMI Australia's  significant  subsidiaries are IMT and Whygo Video  Conferencing
Pty Ltd ("Whygo").

Details of IMT are set forth in the General Business Description above.

AMI Australia holds 70% of the outstanding shares of Whygo. Whygo provides video
conferencing   services,   which  facilitates  its  client  by  providing  video
conferencing rooms across Australia and around the world. Whygo uses some of AMI
Australia  clinic  facilities  and pays room hire fees for the  usage.  In those
locations  where  AMI  Australia  does  not  have  clinics,   Whygo  uses  other
facilities.

Whygo owns proprietary scheduling software,  which allows its corporate partners
to login and book rooms anywhere around the world.  The source of Whygo's income
is derived from video  conferencing  rooms to its corporate partners through AMI
Australia and its other channeling partners.

                                       21
<PAGE>

Staff

      As of September 30, 2005, AMI Australia had a total staff of approximately
186 people,  of which 140 are full-time and 46 are part-time  staff,  working in
the areas of sales and marketing, customer support, product development and back
office  functions.  Of  the  186  people,  AMI  Australia's  staff  includes  26
consultants and 33 licensed medical personnel.  None of the Company's  employees
are members of a union or labor organization.

      AMI Australia's subsidiary,  IMT, does not have any employees. Whygo has 2
full-time employees and 1 part-time employee.

      AMI Australia's core staff include:

      DR. JACOV (JACK) VAISMAN,  CHIEF EXECUTIVE OFFICER AND MANAGING DIRECTOR -
Dr.  Vaisman  has  served as the  Company's  Chief  Executive  Officer  and as a
Director  since  March  21,  2005.  Dr.  Vaisman  is a  pioneer  in  the  sexual
dysfunction  business in  Australia.  Since 2001,  he has served as the managing
director and chief executive officer of AMI Australia. He is responsible for the
overall  management  and  strategic  direction  of  AMI  Australia's   impotency
operations with the support of AMI Australia's  chief operations  officer,  Tony
Khan, and AMI's chief financial  officer,  Dilip  Shrestha.  Dr. Vaisman is also
currently a consultant to and shareholder in Yayasan On Clinic, which operates a
similar business in Indonesia.

      From 1993  through  2001,  Dr.  Vaisman was the founder and director of On
Clinic International in Australia, a predecessor of AMI Australia. The holder of
a Bachelor of Medicine, a Master of Gynecology and a PhD in Medical Science, Dr.
Vaisman  has more  than 35 years of  experience  and  expertise  in the field of
sexual health care  provision and was recently  granted an innovation  patent in
the field of premature ejaculation treatment by the Australian patent office.

      DILIP SHRESTHA, CHIEF FINANCIAL OFFICER - Mr. Shrestha was appointed, as a
result of the Share Exchange,  as the Company's Chief Financial Officer on April
7, 2005.  Mr.  Shrestha  has also served as the chief  financial  officer of AMI
Australia  since July 1, 2005.  From 2001 to July 1, 2005, Mr.  Shrestha was the
Financial  Controller  of AMI  Australia.  Prior  to  that  he was an  Assistant
Accountant with Australian Momentum Health Pty Ltd, a position he held from 1999
until 2001.  Mr.  Shrestha  holds a Bachelor of Business  Accounting,  Master of
E-Commerce and a Graduate Diploma of Information System and E-Commerce.

      FORHAD (TONY) KHAN, EXECUTIVE VICE PRESIDENT, SECRETARY AND DIRECTOR - Mr.
Khan has served as the Company's  Executive Vice President  since July 30, 2005,
he has been the  Company's  Secretary  since March 21,  2005.  Mr. Khan has also
served as the chief operating  officer of AMI Australia since July 1, 2005. From
2001 to July 1, 2005, Mr. Khan was the General  Manager of AMI Australia.  Prior
to joining  AMI  Australia,  Mr.  Khan was the  Director  and sole  operator  of
Australian Momentum Health ("AMH"), one of two medical establishments leading in
providing impotency treatment in Australia.  Mr. Khan was Sales Manager and then
Operations  Manager for On Clinic  International  prior to establishing AMH. Mr.
Khan holds a Masters  degree in Commerce and Accounting and has been involved in
the industry for over 10 years.

Currency Conversion

      As of  September  30, 2005 and 2004,  the accounts of AMI  Australia  were
maintained,  and its financial statements were expressed,  in Australian Dollars
(AUD).  Such  financial  statements  were  translated  into US Dollars  (USD) in
accordance  with  Statement of  Financial  Accounts  Standards  ("SFAS") No. 52,
"Foreign  Currency  Translation",  with  the  AUD  as the  functional  currency.
According to the Statement,  all assets and  liabilities  were translated at the
exchange rate (AUD1 = USD0.76030) as of September 30, 2005, stockholder's equity
are translated at the historical rates and income statement items are translated
at the weighted-average  exchange rate for the period. The resulting translation
adjustments  are reported under other  comprehensive  income in accordance  with
SFAS No. 130, "Reporting Comprehensive Income".

                                       22
<PAGE>

The following table sets forth,  for the periods  indicated,  certain  operating
information expressed as a percentage of revenue:

Result of operation:

                                                      Three months ended
                                                         September 30,
                                                     2005            2004
                                                     ----            ----

      Revenues                                       100%            100%

      Cost of Revenues                               37.5%          30.0%

      Gross Profit                                   62.5%          70.0%

      General and administrative expenses            69.8%          62.8%

      Other income and expenses                      0.3%            7.3%

      Income before income tax                      (7.0%)          14.5%

      Income tax expenses                           (2.5%)           4.3%

      NET INCOME                                    (4.5%)          10.2%


LIQUIDITY AND CAPITAL RESOURCES

As of September  30, 2005,  we had total  liabilities  of  $6,021,595  including
unearned  revenue of $3,087,472 and we had a positive net worth of $573,927.  As
of June 30, 2005,  we had total  liabilities  of $4,149,690  including  unearned
revenue of $1,803,044 and a positive net worth of $799,801.

Our bank  balances as at September  30, 2005 were  AU$763,263  (US$580,308).  We
forecast that we will be able to generate  sufficient funds from our business in
order to fund our  operations in the ordinary  course during the next 12 months.
As set out  previously,  we are  considering  further  expansion of our business
offshore.  If we  expand  our  business  in this  manner  we may  need to  raise
additional  debt or equity  funding in order to  undertake  any such  expansion.
However,  there can be no assurance that we can or will obtain  sufficient funds
from operations or from additional  financings on terms  acceptable to us. If we
are  unable to obtain  sufficient  additional  financing,  we may not be able to
expand our operations as proposed or we could be required to reduce spending and
operations.

THREE MONTHS ENDED  SEPTEMBER 30, 2005 COMPARED TO THREE MONTHS ENDED  SEPTEMBER
30, 2004

REVENUES.  Revenues were $5,094,700 in the three months ended September 30, 2005
compared to $2,832,816 in the three months ended September 30, 2004, an increase
of $2,261,884 or 79%.

The Company recognizes all expenses on the date they are incurred  regardless of
whether they relate to recognized or unearned  revenue whereas  unearned revenue
(which is  generated  by current  expenses)  is unable to be  recognized  in the
current period.

In addition,  the Company's  unearned revenue (or forward sales) as at September
30, 2005 was  $3,087,472  compared to $1,438,041  as at September 30, 2004.  The
gross increase in unearned revenue from September 30, 2004 to September 30, 2005
was $1,649,431, or an increase of 114.6%.

                                       23
<PAGE>

The  increase in revenues  and unearned  revenues in the  three-month  period is
attributable  to an increase in advertising  expenses and improved  targeting of
our  advertising,  resulting  in an  increase  in  revenue  generated  from  AMI
Australia's  Premature  Ejaculation (PE) treatment  programs and AMI Australia's
Erectile  Dysfunction  (ED) treatment  programs.  Revenue in AMI  Australia's PE
treatment  programs  has  increased  by 231% and revenue in AMI  Australia's  ED
treatment  programs has increased by 39% in the first quarter  ending  September
30, 2005, compared to the first quarter ending September 30, 2004. The number of
patients in AMI Australia's PE and ED treatment  programs  increased by 231% and
32% respectively compared to the quarter ending September 30, 2004.

COST OF REVENUES.  Cost of revenues  were  $1,910,514  in the three months ended
September 30, 2005 compared to $849,784 in the three months ended  September 30,
2004  primarily  as a result of growth in AMI  Australia's  PE and ED  treatment
programs during the first three months ended September 30, 2005. As a percentage
of revenues, cost of revenues were 37.5% in the three months ended September 30,
2005  compared  to 30.0% in the three  months  ended  September  30,  2004.  The
increase is due to growth in AMI  Australia's PE & ED treatment  programs,  as a
result of additional advertising, additional staff and increase in other working
capital costs.

GROSS PROFIT.  Gross profit was  $3,184,186 in the three months ended  September
30, 2005 compared to $1,983,032 in the three months ended September 30, 2004. As
a percentage  of revenue,  gross  profit  decreased to 62.5% in the three months
ended  September  30, 2005 from 70.0% in the three  months ended  September  30,
2004.  The 7.5% decrease in the gross profit  percentage is  attributable  to an
increase  in medical  consulting  fees due to an  increase  in number of medical
personnel  contracted  to meet the increase in the number of patients  served in
AMI Australia's PE and ED treatment programs and the accounting policies adopted
by AMI Australia.

SELLING,   GENERAL   AND   ADMINISTRATIVE   EXPENSES.   Selling,   general   and
administrative  expenses were $3,558,002 in the three months ended September 30,
2005 compared to  $1,780,167 in the three months ended  September 30, 2004. As a
percentage of revenues,  general and administrative  expenses increased to 69.8%
in the three  months  ended  September  30, 2005 from 62.8% in the three  months
ended September 30, 2004. The increase is due to, firstly,  the increases in the
Company's  advertising  expenses,  employee benefits and commission resulting in
significant  growth of business during the three months ended September 30, 2005
as reflected in the significant increases in revenue and unearned revenue during
the  period.  Moreover,  it is also due to the  increase  in rent  resulting  in
consolidation of rent in Whygo.

OTHER INCOME AND  EXPENSES.  Other income and expenses were $14,757 in the three
months ended  September  30, 2005 compared to $208,971 in the three months ended
September  30,  2004.  As a percentage  of  revenues,  other income and expenses
decreased to 0.3% in the three months ended  September 30, 2005 from 7.3% in the
three months ended  September  30, 2004.  The decrease is due to no provision of
doubtful  debts being  written back during the three months ended  September 30,
2005.

NET INCOME BEFORE  INCOME TAX AND INCOME TAX EXPENSES.  Income before income tax
was $(359,059) in the three months ended September 30, 2005 compared to $411,836
in the three months ended September 30, 2004. This decrease, despite an increase
in revenue,  was  attributable to the increase in cost of revenues,  general and
administrative expenses during the three months ended September 30, 2005.

Income tax expenses were $(127,473) in the three months ended September 30, 2005
compared to $123,550 in the three months ended September 30, 2004. This decrease
is attributable to the loss incurred during the three months ended September 30,
2005.

NET INCOME.  Net income was  $(231,586) in the three months ended  September 30,
2005  compared to $288,286 in the three months ended  September  30, 2004.  This
decrease is attributable to the reasons set forth above. Net income attributable
to outside equity  interests was $4,527 in the three months ended  September 30,
2005 compared to $Nil in the three months ended September 30, 2004. The increase
is because AMI Australia did not have a subsidiary during the three months ended
September 30, 2004. Net income  attributable to the members of parent entity was
$227,059 in the three months ended  September  30, 2005  compared to $288,286 in
the three months ended September 30, 2004.  Reasons for the decrease is the same
as the decrease in net income.
                                       24
<PAGE>

ITEM 3. CONTROLS AND PROCEDURES

      Under  the  supervision  and  with  the  participation  of  the  Company's
management,   including  our  principal  executive  officer  and  the  principal
accounting officer,  the Company conducted an evaluation of the effectiveness of
the design and operation of its disclosure  controls and procedures,  as defined
in Rules 13a-15(e) and 15d-15(e)  under the Securities  Exchange Act of 1934, as
of the end of the period covered by this report (the "Evaluation  Date").  Based
on this  evaluation,  the Company's  principal  executive  officer and principal
accounting  officer  concluded  as of the  Evaluation  Date  that the  Company's
disclosure  controls  and  procedures  were  effective  such  that the  material
information  required to be included in our Securities  and Exchange  Commission
("SEC") reports is recorded, processed,  summarized and reported within the time
periods specified in SEC rules and forms relating to the Company,  including our
consolidated  subsidiaries,  and was made known to them by others  within  those
entities, particularly during the period when this report was being prepared.

      Additionally,  there were no significant changes in the Company's internal
controls or in other  factors that could  significantly  affect  these  controls
subsequent  to the  Evaluation  Date.  We have not  identified  any  significant
deficiencies  or material  weaknesses  in our internal  controls,  and therefore
there were no corrective actions taken.

                                       25
<PAGE>

                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.

      As of September 30, 2005, there was no litigation pending or threatened by
or against the Company or IMT or Whygo.  AMI Australia  currently is involved in
the following litigation and administrative matters.

      On September 27, 2004,  Rocco  Licastro,  a former  patient,  filed a suit
against  AMI  Australia  in the  District  Court of NSW,  Sydney  Registry.  Mr.
Licastro's  claims  result from an injection  therapy that Mr.  Licastro  claims
caused physical  injuries.  Mr. Licastro is seeking  damages  including  medical
expenses,  but no amount has been specified to date.  These proceeding are in an
early  stage.  AMI  Australia  has  denied  the  allegations  and is  vigorously
defending this suit.

      On August 24, 2004, AMI Australia  initiated a suit against Mr. Mark Ryan,
a former consultant, two companies controlled by Mr. Ryan which now compete with
us, Dr. Ian Davies,  Mr. Ryan's partner,  and a third company  controlled by Dr.
Davies (the  "Defendants")  in the Federal  Court of  Australia.  AMI  Australia
alleges that Mr. Ryan breached his confidentiality agreement with it and misused
its intellectual  property.  AMI Australia obtained interim orders in late 2004.
AMI Australia is seeking a permanent injunction  restraining the Defendants from
using its confidential  information and intellectual  property. AMI Australia is
also seeking an as of yet  unspecified  amount of damages.  This  proceeding  is
still in the discovery stage. The Defendants have denied the allegations.

      On August 10, 2004,  Bradley Joyce, AMI Australia's former Chief Executive
Officer filed a suit against AMI Australia in the Industrial  Commission of NSW.
Mr. Joyce  alleges that his contract is unfair and seeks to have the  Industrial
Commission  of NSW amend the contract to include a six month  severance  payment
(which would be  approximately  AU$100,000).  These  proceedings are at an early
stage and a compulsory  conciliation  conference did not resolve the claim.  AMI
Australia has denied the allegations and is vigorously defending this suit.

      On July 19, 2004,  the  Australian  Competition  and  Consumer  Commission
(collectively,  the "ACCC")  filed a suit  against AMI  Australia in the Federal
Court  of  Australia  Sydney  Registry.   The  ACCC  claims  that  a  series  of
advertisements  made by AMI  Australia  involving  a  celebrity  that  confessed
impotence were misleading and deceptive. AMI Australia has denied the allegation
and is vigorously  defending this suit. ACCC is seeking  corrective  advertising
for the alleged misleading and deceptive  advertisements.  The ACCC has not made
any claim for damages. The hearing of the proceedings  concluded on September 2,
2005 with a final judgment expected later this calendar year.

      On December 17, 2002,  Alan Hibberd,  a former  patient,  notified a claim
against AMI Australia in accordance with the Personal Injuries Proceeding Act of
2002 (Qld).  AMI  Australia  received  the  notification  on April 5, 2004.  Mr.
Hibberd claims that we did not properly  notify him of possible  adverse effects
of the medical procedure he underwent.  Mr. Hibberd is seeking  reimbursement of
wages in the amount of AU$1,731 and presently  unspecified  damages for physical
injuries. These proceedings are in pre-court procedure. AMI Australia has denied
the  allegations  and is vigorously  defending this suit.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES.

None.

                                       26
<PAGE>

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

ITEM 5.  OTHER INFORMATION.

None.

ITEM 6. EXHIBITS.

The following exhibits are filed as part of this report:

----------------- --------------------------------------------------------------
 Exhibit Number                        Description
----------------- --------------------------------------------------------------
31.1              Certification of Chief Executive Officer pursuant to Rule
                  13A-14(A)/15D-14(A) of the Securities Exchange Act of 1934, as
                  adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
                  2002.
----------------- --------------------------------------------------------------
31.2              Certification of the Chief Financial Officer pursuant to
                  Rule  13A-14(A)/15D-14(A) of the Securities Exchange Act of
                  1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley
                  Act of 2002.
----------------- --------------------------------------------------------------
32.1              Certification of Chief Executive Officer and the Principal
                  Financial Officer Pursuant to 18 U.S.C. 1350 (Section 906 of
                  the Sarbanes-Oxley Act of 2002).
----------------- --------------------------------------------------------------

                                       27
<PAGE>

                                   SIGNATURES

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

                                                 ADVANCED MEDICAL INSTITUTE INC.

Date: November 14, 2005                          By: /s/ Jacov (Jack) Vaisman
                                                    ----------------------------
                                                       Jacov (Jack) Vaisman
                                                       Chief Executive Officer

Date: November 14, 2005                         By: /s/ Dilip Shrestha
                                                    ----------------------------
                                                       Dilip Shrestha
                                                       Chief Financial Officer

                                       28