**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington      D.C. 20549**

| (Mark                One)                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                             |            **FORM 10-QSB**                                                              |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
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| [X]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | QUARTERLY                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
| **For                the quarterly period ended September 30, 2007**                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
| [   ]                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | TRANSITION                REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT                                                                                                                                                                                                                   |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
| For                the transition period from ________________ to                ________________                                                                                                                                                                                                                                                                                                                                                                                        |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
| 000-51561                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (Commission                file number)                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
| **HEALTHCARE                PROVIDERS DIRECT, INC.**                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (Exact                name of small business issuer as specified in its                charter)                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                  | **     **                                                                                                             |   |   |
|                                                                              **Nevada** |                                                                                                                                                                                                                                                                                             |  **                               20-1063591**  |
|                                     (State                or other jurisdiction of incorporation or organization)                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                             |  (IRS                Employer Identification No.)                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
| **3371****Route                One, Suite 200**                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **Lawrenceville,                New Jersey 08648**                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (Address                of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
| (609)                919-1932                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (Issuer’s                telephone number)                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
| **N/A**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (Former                name, former address and former fiscal year, if changed since last                report)                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
| Check                whether the issuer (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                [  ]                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
| State                the number of shares outstanding of each of the issuer’s classes of common                equity, as of the latest practicable date: As of November 14, 2007–                44,879,038 shares of common stock                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
| Indicate                by check mark whether the registrant is a shell company (as defined                in                Rule 12b-2 of the Exchange Act). Yes [  ] No                [X]                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                             |                                                                                                                                           |   |   |
| Transitional                Small Business Disclosure Format (check one): Yes [  ] No                [X]                                                                                                                                                                                                                                                                                                                                                                       |

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**HEALTHCARE      PROVIDERS DIRECT, INC.**

**Index**

|                   |                                                                                                                                                        | Page Number |
|------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|
|                   |                                                                                                                                                        |             |
| PART                I. | FINANCIAL                INFORMATION                                                                                                                        | 3                |
|                   |                                                                                                                                                        |             |
| Item                1. | Financial                Statements                                                                                                                         | 3                |
|                   |                                                                                                                                                        |             |
|                   | Condensed                Balance Sheet as of September 30, 2007 (unaudited)                                                                                 | 3                |
|                   |                                                                                                                                                        |             |
|                   | Condensed                Statements of Operations for the three and nine months ended September                30,                2007 and 2006 (unaudited) | 4                |
|                   |                                                                                                                                                        |             |
|                   | Condensed                Statement of Stockholders’ Equity / (Deficiency) for the nine months ended                September 30, 2007 (unaudited)     | 5                |
|                   |                                                                                                                                                        |             |
|                   | Condensed                Statements of Cash Flows for the nine months ended September 30,                2007 and                2006 (unaudited)           | 6                |
|                   |                                                                                                                                                        |             |
|                   | Notes                to the Condensed Financial Statements                                                                                                  | 7                |
|                   |                                                                                                                                                        |             |
| Item                2. | Management’s                Discussion and Analysis of Plan of Operations                                                                             | 17               |
|                   |                                                                                                                                                        |             |
| Item                3. | Controls                and Procedures                                                                                                                      | 24               |
|                   |                                                                                                                                                        |             |
| PART                II | OTHER                INFORMATION                                                                                                                            | 25               |
|                   |                                                                                                                                                        |             |
| Item                1. | Legal                Proceedings                                                                                                                            | 25               |
|                   |                                                                                                                                                        |             |
| Item                2. | Unregistered                Sales of Equity Securities and  Use of Proceeds                                                                       | 25               |
|                   |                                                                                                                                                        |             |
| Item                3. | Defaults                Upon Senior Securities                                                                                                              | 25               |
|                   |                                                                                                                                                        |             |
| Item                4. | Submission                of Matters to a Vote of Security Holders                                                                                          | 25               |
|                   |                                                                                                                                                        |             |
| Item                5. | Other                Information                                                                                                                            | 25               |
|                   |                                                                                                                                                        |             |
| Item                6. | Exhibits                                                                                                                                                    | 25               |
|                   |                                                                                                                                                        |             |
| SIGNATURES             | 26                                                                                                                                                          |

----

|                                                                                                                                                              |   |   |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|
| ASSETS                                                                                                                                                            |   |   |       |
| Current                assets:                                                                                                                                    |   |   |       |
|      Cash                and cash equivalents                                                                                            |   | $      | 962,542    |   |
|      Accounts                receivable, net of allowance for doubtful accounts, of                $33,345                               |   |   | 41,020     |   |
|      Deferred                financing costs - current                                                                                   |   |   | 135,530    |   |
|      Inventories                                                                                                                         |   |   | 152,479    |   |
|      Prepaid                and other current assets                                                                                     |   |   | 66,423     |   |
|           Total                current assets                                                                   |   |   | 1,357,994  |   |
|                                                                                                                                                              |   |   |       |   |
| Deferred                financing  costs – long term , net of amortization of                $10,851                                              |   |   | 260,209    |   |
| Equipment,                net of accumulated depreciation of $18,930                                                                                              |   |   | 19,381     |   |
| Intangible                assets, net of accumulated amortization  of                $27,778                                                            |   |   | 22.222     |   |
|           Total                assets                                                                           |   | $      | 1,659,806  |   |
|                                                                                                                                                              |   |   |       |   |
|                                                                                                                                                              |   |   |       |   |
| LIABILITIES                AND STOCKHOLDERS’ EQUITY                                                                                                         |   |   |       |   |
| Current                liabilities:                                                                                                                               |   |   |       |   |
| Accounts                payable                                                                                                                                   |   | $      | 253,921    |   |
| Accrued                expenses and other current liabilities                                                                                                     |   |   | 310,808    |   |
| Accrued                royalties                                                                                                                                  |   |   | 114,179    |   |
| Convertible                notes payable,  net of discounts of $2,055,172                                                                               |   |   | 94,828     |   |
| Note                payable – related party                                                                                                                 |   |   | 90,000     |   |
|           Total                current liabilities                                                              |   |   | 863,736    |   |
|                                                                                                                                                              |   |   |       |   |
|      Total                liabilities                                                                                                    |   |   | 863,736    |   |
|                                                                                                                                                              |   |   |       |   |
| Commitments                and contingency                                                                                                                        |   |   | -          |   |
|                                                                                                                                                              |   |   |       |   |
| Stockholders’                equity                                                                                                                         |   |   |       |   |
|      Common                stock,  $.001 par  value;                                                                 |   |   |       |   |
|           375,000,000                shares authorized; 44,879,038 shares issued and                outstanding |   |   | 44,879     |   |
|      Additional                paid-in capital                                                                                           |   |   | 8,585,240  |   |
|      Accumulated                deficit                                                                                                  |   |   | (7,834,049 | ) |
|           Total                stockholders’ equity                                                       |   |   | 796,070    |   |
|           Total                liabilities and stockholders’ equity                                       |   | $      | 1,659,806  |   |

----

|                                                                  |   | For                The Three Months Ended |       |   | For                The Nine Months Ended |   |
|-----------------------------------------------------------------------|--------|-------------------------------------------|------------|--------|-----------------------------------------------|--------|
|                                                                  |   | September                30, 2007         |       |   | September                30, 2006             |   |   | September                30, 2007 |   |   | September                30, 2006 |   |
| Revenues,                net                                          |   | $                                         | 131,581    |   |                                          | $      | 119,212 |   |   | $ | 439,151 |   |   | $ | 401,200 |   |
| Cost                of revenues                                       |   |                                      | 69,828     |   |                                          |   | 46,709 |   |   |   | 217,300 |   |   |   | 181,981 |   |
|                                                                  |   |                                      |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Gross                profit                                           |   |                                      | 61,753     |   |                                          |   | 72,503 |   |   |   | 221,851 |   |   |   | 219,219 |   |
|                                                                  |   |                                      |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Operating                expenses:                                    |   |                                      |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Research  and                development                    |   |                                      | 63,958     |   |                                          |   | 6,173 |   |   |   | 271,645 |   |   |   | 34,906 |   |
| Sales                and marketing costs                              |   |                                      | 115,627    |   |                                          |   | 81,096 |   |   |   | 600,990 |   |   |   | 268,401 |   |
| Issuance                of warrants in connection with reverse merger |   |                                      | -          |   |                                          |   | - |   |   |   | 2,927,285 |   |   |   | - |   |
| General                and administrative                             |   |                                      | 694,402    |   |                                          |   | 285,019 |   |   |   | 2,026,349 |   |   |   | 779,774 |   |
|                                                                  |   |                                      |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Total                operating expenses                               |   |                                      | 873,987    |   |                                          |   | 372,288 |   |   |   | 5,826,269 |   |   |   | 1,083,081 |   |
|                                                                  |   |                                      |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Loss                from operations                                   |   |                                      | (812,234   | )      |                                          |   | (299,785 | ) |   |   | (5,604,418 | ) |   |   | (863,862 | ) |
|                                                                  |   |                                      |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Other                income and expense:                              |   |                                      |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
|      Interest                income          |   |                                      | 3,587      |   |                                          |   | 14 |   |   |   | 5,895 |   |   |   | 172 |   |
|      Interest                expense         |   |                                      | (115,259   | )      |                                          |   | (7,663 | ) |   |   | (122,522 | ) |   |   | (14,517 | ) |
| Other                income, net                                      |   |                                      | (111,672   | )      |                                          |   | (7,649 | ) |   |   | (116,627 | ) |   |   | (14,345 | ) |
| Net                loss                                               |   | $                                         | (923,906   | )      |                                          | $      | (307,434 | ) |   | $ | (5,721,045 | ) |   | $ | (878,207 | ) |
|                                                                  |   |                                      |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative                dividends on Preferred Stock                |   |                                      | -          |   |                                          |   | (11,680 | ) |   |   | - |   |   |   | (40,482 | ) |
| Net                loss applicable to Common Shareholders             |   | $                                         | (923,906   | )      |                                          | $      | (319,114 | ) |   | $ | (5,721,045 | ) |   | $ | (918,689 | ) |
|                                                                  |   |                                      |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                                      |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss Per Common Share -Basic and Diluted           |   | $                                         | (0.02      | )      |                                          | $      | (0.02 | ) |   | $ | (0.13 | ) |   | $ | (0.05 | ) |
| Weighted                average common shares - Basic and Diluted (1) |   |                                      | 44,874,038 |   |                                          |   | 20,360,979 |   |   |   | 44,867,371 |   |   |   | 19,852,363 |   |
| (1)                On an as-converted basis                           |   |                                      |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |

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|                                                                                                                                                                                                                                                                             |   |                                    |   |   |                            |   |       |       |   |   |       |   |   |                                          |   |   |                                   |   |      |                              |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|--------|---------------------------------|--------|------------|------------|--------|--------|------------|--------|--------|-----------------------------------------------|--------|--------|----------------------------------------|--------|-----------|-----------------------------------|--------|
|                                                                                                                                                                                                                                                                             |   | **Series                B Convertible** |   |   |                            |   |       |       |   |   |       |   |   |                                          |   |   | **Total**                              |   |
|                                                                                                                                                                                                                                                                             |   | **Preferred                Stock (1)**  |   |   | **Common                Stock** |   |       |       |   |   |       |   |   | **Stockholders’**                       |   |
|                                                                                                                                                                                                                                                                             |   | **Shares**                              |   |   | **Amount**                      |   |       | **Shares** |   |   | **Amount** |   |   | **Additional                Paid-In-Capital** |   |   | **Accumulated                Deficit** |   |      | **Equity/**** (Deficiency)** |   |
| Balance                as of December 31, 2006                                                                                                                                                                                                                                   |   |                                    | -      |   |                            | $      | -          |       |   |   | 44,464,038 |   |   | $                                             | 44,464 |   |                                   | $      | 1,328,392 |                              |   | $ | (2,113,004 | ) |   | $ | (740,148 | ) |
|                                                                                                                                                                                                                                                                             |   |                                    |   |   |                            |   |       |       |   |   |       |   |   |                                          |   |   |                                   |   |      |                              |   |   |   |   |   |   |   |   |
|  Issuance                of Series B Preferred  stock                                                                                                                                                                                                             |   |                                    | 1,303  |   |                            |   | 1,144,153  |       |   |   | -          |   |   |                                          | -      |   |                                   |   | -         |                              |   |   | - |   |   |   | 1,144,153 |   |
|  Series                B Preferred Stock  conversion                                                                                                                                                                                                              |   |                                    | (1,303 | )      |                            |   | (1,144,153 | )          |   |   | -          |   |   |                                          | -      |   |                                   |   | 1,144,153 |                              |   |   | - |   |   |   | - |   |
|  Issuance                of common stock in       connection                with reverse merger                                                                                                                                          |   |                                    | -      |   |                            |   | -          |       |   |   | 400,000    |   |   |                                          | 400    |   |                                   |   | 499,600   |                              |   |   | - |   |   |   | 500,000 |   |
|  Issuance                of common stock for  services                                                                                                                                                                                                            |   |                                    | -      |   |                            |   | -          |       |   |   | 15,000     |   |   |                                          | 15     |   |                                   |   | 23,535    |                              |   |   | - |   |   |   | 23,550 |   |
|  Beneficial                conversion of  convertible                notes                                                                                                                                                                                        |   |                                    | -      |   |                            |   | -          |       |   |   | -          |   |   |                                          | -      |   |                                   |   | 655,830   |                              |   |   | - |   |   |   | 655,830 |   |
|  Warrants                issued to placement  agent                on issuance of convertible  notes                                                                                                                                                    |   |                                    | -      |   |                            |   | -          |       |   |   | -          |   |   |                                          | -      |   |                                   |   | 118,005   |                              |   |   | - |   |   |   | 118,005 |   |
|  Stock                based  compensation                expense                                                                                                                                                                                                  |   |                                    | -      |   |                            |   | -          |       |   |   | -          |   |   |                                          | -      |   |                                   |   | 378,200   |                              |   |   | - |   |   |   | 378,200 |   |
|  Issuance                of warrants in connection  with                convertible notes                                                                                                                                                                    |   |                                    | -      |   |                            |   | -          |       |   |   | -          |   |   |                                          | -      |   |                                   |   | 1,483,084 |                              |   |   | - |   |   |   | 1,483,084 |   |
|  Warrants                issued to board members  for                services                                                                                                                                                                                |   |                                    | -      |   |                            |   | -          |       |   |   | -          |   |   |                                          | -      |   |                                   |   | 27,156    |                              |   |   | - |   |   |   | 27,156 |   |
|  Issuance                of warrants in connection  with                reverse merger                                                                                                                                                                            |   |                                    | -      |   |                            |   | -          |       |   |   | -          |   |   |                                          | -      |   |                                   |   | 2,927,285 |                              |   |   | - |   |   |   | 2,927,285 |   |
|  Net                loss for the nine                months                          .  ended                September 30, 2007 |   |                                    | -      |   |                            |   | -          |       |   |   | -          |   |   |                                          | -      |   |                                   |   | -         |                              |   |   | (5,721,045 | ) |   |   | (5,721,045 | ) |
|                                                                                                                                                                                                                                                                             |   |                                    |   |   |                            |   |       |       |   |   |       |   |   |                                          |   |   |                                   |   |      |                              |   |   |   |   |   |   |   |   |
| Balance                as of September 30, 2007                                                                                                                                                                                                                                  |   |                                    | -      |   |                            | $      | -          |       |   |   | 44,879,038 |   |   | $                                             | 44,879 |   |                                   | $      | 8,585,240 |                              |   | $ | (7,834,049 | ) |   | $ | 796,070 |   |
|                                                                                                                                                                                                                                                                             |   |                                    |   |   |                            |   |       |       |   |   |       |   |   |                                          |   |   |                                   |   |      |                              |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                             |   |                                    |   |   |                            |   |       |       |   |   |       |   |   |                                          |   |   |                                   |   |      |                              |   |   |   |   |   |   |   |   |
|  (1)                See Note 1 of the Notes to the Condensed Financial Statements for                a                discussion of the Series A Preferred.                                                                                                                 |   |                                    |   |   |                            |   |       |       |   |   |       |   |   |                                          |   |   |                                   |   |      |                              |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                             |   |                                    |   |   |                            |   |       |       |   |   |       |   |   |                                          |   |   |                                   |   |      |                              |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                               |   | **For                the Nine Months Ended September 30, 2007** |       |   | **For                the Nine Months Ended September 30, 2006** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|------------|--------|-----------------------------------------------------------------|--------|
|                                                                                                                                                               |   |                                                            |       |   |                                                            |   |
| Cash                flows from operating activities:                                                                                                               |   |                                                            |       |   |                                                            |   |
| Net                loss                                                                                                                                            |   | $                                                               | (5,721,045 | )      |                                                            | $      | (878,207 | ) |
| Adjustments                to reconcile net loss to net cash used in operating                activities:                                                          |   |                                                            |       |   |                                                            |   |   |   |
|      Depreciation                                                                                                                         |   |                                                            | 8,327      |   |                                                            |   | 2,591 |   |
|      Amortization                and write off of intangible assets                                                                       |   |                                                            | 130,556    |   |                                                            |   | 41,666 |   |
|      Amortization                of debt discount on convertible notes                                                                    |   |                                                            | 83,742     |   |                                                            |   | - |   |
|      Amortization                of deferred financing costs                                                                              |   |                                                            | 10,851     |   |                                                            |   | - |   |
|      Stock-based                compensation expense                                                                                      |   |                                                            | 378,200    |   |                                                            |   | - |   |
|      Issuance                of common stock for services                                                                                 |   |                                                            | 23,550     |   |                                                            |   | - |   |
|      Issuance                of warrants for services                                                                                     |   |                                                            | 27,156     |   |                                                            |   | - |   |
|      Issuance                of warrants in connection with reverse merger                                                                |   |                                                            | 2,927,285  |   |                                                            |   | - |   |
|      Provision                for doubtful accounts                                                                                       |   |                                                            | -          |   |                                                            |   | 12,154 |   |
|      Changes                in operating assets and liabilities:                                                                          |   |                                                            |       |   |                                                            |   |   |   |
|        Accounts                receivable                                                                                       |   |                                                            | 19,140     |   |                                                            |   | 2,352 |   |
|        Inventories                                                                                                              |   |                                                            | 8,592      |   |                                                            |   | (44,508 | ) |
|        Prepaid                expenses and other current assets                                                                 |   |                                                            | (35,926    | )      |                                                            |   | (23,595 | ) |
|        Accounts                payable                                                                                          |   |                                                            | (136,715   | )      |                                                            |   | 151,563 |   |
|        Accrued                expenses                                                                                          |   |                                                            | (266,866   | )      |                                                            |   | 256,476 |   |
| Net                cash used in operating activities                                                                                                               |   |                                                            | (2,543,153 | )      |                                                            |   | (479,508 | ) |
|                                                                                                                                                               |   |                                                            |       |   |                                                            |   |   |   |
| Cash                flows from investing activities:                                                                                                               |   |                                                            |       |   |                                                            |   |   |   |
|      Purchases                of equipment                                                                                                |   |                                                            | (13,367    | )      |                                                            |   | (1,341 | ) |
| Net                cash used in investing activities                                                                                                               |   |                                                            | (13,367    | )      |                                                            |   | (1,341 | ) |
|                                                                                                                                                               |   |                                                            |       |   |                                                            |   |   |   |
| Cash                flows from financing activities:                                                                                                               |   |                                                            |       |   |                                                            |   |   |   |
|      Proceeds                from notes payable                                                                                           |   |                                                            | 50,000     |   |                                                            |   | 240,000 |   |
|      Repayment                of notes payable                                                                                            |   |                                                            | (300,000   | )      |                                                            |   | - |   |
|      Proceeds                from issuance of common stock                                                                                |   |                                                            | 500,000    |   |                                                            |   | - |   |
|      Proceeds                from convertible notes, net of issuance costs of $288,585                                                    |   |                                                            | 1,861,415  |   |                                                            |   | - |   |
|      Proceeds                from sale of Series B preferred stock, net of issuance costs of $158,847                 and $0 respectively |   |                                                            | 1,144,153  |   |                                                            |   | 125,000 |   |
| Net                cash provided by financing activities                                                                                                           |   |                                                            | 3,255,568  |   |                                                            |   | 365,000 |   |
|                                                                                                                                                               |   |                                                            |       |   |                                                            |   |   |   |
| Net                increase (decrease) in cash and cash equivalents                                                                                                |   |                                                            | 699,048    |   |                                                            |   | (115,849 | ) |
| Cash                and cash equivalents at beginning of period                                                                                                    |   |                                                            | 263,494    |   |                                                            |   | 122,976 |   |
| Cash                and cash equivalents at end of period                                                                                                          |   | $                                                               | 962,542    |   |                                                            | $      | 7,127 |   |
|                                                                                                                                                               |   |                                                            |       |   |                                                            |   |   |   |
| Supplemental                disclosures of cash flow information:                                                                                                  |   |                                                            |       |   |                                                            |   |   |   |
| Cash                paid during period for interest                                                                                                                |   | $                                                               | 19,892     |   |                                                            | $      | 2,638 |   |
| Cash                paid during period for taxes                                                                                                                   |   |                                                            | 1,830      |   |                                                            |   | 750 |   |
|                                                                                                                                                               |   |                                                            |       |   |                                                            |   |   |   |
| Supplemental                Non-Cash Financing Transactions:                                                                                                       |   |                                                            |       |   |                                                            |   |   |   |
|      Conversion                of note payable into Series A redeemable preferred stock                (1)                                |   | $                                                               | -          |   |                                                            | $      | 41,666 |   |
|      Conversion                of Series B preferred stock into common stock (2)                                                          |   |                                                            | 1,144,153  |   |                                                            |   | - |   |
|      Beneficial                conversion on convertible notes (2)                                                                        |   |                                                            | 655,830    |   |                                                            |   | - |   |
|      Warrants                issued to holders of convertible notes (2)                                                                   |   |                                                            | 1,483,084  |   |                                                            |   | - |   |
|      Warrants                issued to placement agent on issuance of convertible notes                (2)                                |   |                                                            | 118,005    |   |                                                            |   | - |   |
|                                                                                                                                                               |   |                                                            |       |   |                                                            |   |   |   |
|                                                                                                                                                               |   |                                                            |       |   |                                                            |   |   |   |
| (1)                See Note 1 of the Notes to the Condensed Financial Statements for                a                discussion of the Series A Preferred.         |   |                                                            |       |   |                                                            |   |   |   |
| (2)                See Note 5 of the Notes to the Condensed Financial Statements for                a                discussion of the Convertible Notes Payable   |   |                                                            |       |   |                                                            |   |   |   |
|                                                                                                                                                               |   |                                                            |       |   |                                                            |   |   |   |

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**Healthcare      Providers Direct, Inc.**

**NOTES      TO THE CONDENSED FINANCIAL STATEMENTS**

**For        the three and nine months ended September 30, 2007 and        2006**

**I.       BASIS      OF PRESENTATION**

| ***Basis                of Presentation*****—**Healthcare Providers                Direct, Inc (the “Company”) was incorporated in the state of Delaware on                October 29, 2004 and commenced operations on January3,                2005. The Company, located in Lawrenceville, New Jersey, sells and                distributes diagnostic tests directly to physician offices and other                healthcare providers in the United States. During the nine months                ended                September 30, 2007, the Company completed a share exchange with a                public                shell company (Reverse Merger) that was treated as a capital transaction,                which requires equity to be restated to reflect the merger and share                exchange as of the earliest period presented.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
| The              accompanying condensed financial statements included herein have              been  prepared  by the  Company  pursuant to the              rules and  regulations  of the Securities and              Exchange Commission  (the  "Commission")  for              interim  financial information.  Accordingly, they do not              include all of the information and footnotes required by accounting              principles generally accepted in the United States of America for              complete financial  statement  presentation and should be              read in conjunction with the audited  consolidated               financial  statements and related footnotes  thereto for              the fiscal year ended December 31, 2006  included in the               Company's  Current  Report on Form  8-K/A,               filed  with the  Commission on May 8, 2007.              The financial  statements  presented  in this               quarterly  report are  unaudited  but include all              adjustments  that are of a normal  recurring  nature that              management considers  necessary for the fair               statement  of the  results  for the  interim              periods.  Results for interim periods are not              necessarily indicative of results for the full fiscal              year. |

|   |   |   |   |
|--------|--------|--------|--------|

|                                                                                                                               | Common                stock of HPD before share exchange |   | Shares                of common stock in registrant after share exchange |
|------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|--------|--------------------------------------------------------------------------|
| Series                A Preferred Stock                                                                                            | 577                                                      |   |                  4,246,370                                          |
| Series                B Preferred Stock                                                                                            | 2,548                                                    |   | 18,751,734                                                               |
| Common                Stock                                                                                                        | 1,558                                                    |   | 11,465,934                                                               |
| Total                                                                                                                              | 4,683                                                    |   | 34,464,038                                                               |
|                                                                                                                               |                                                     |   |                                                                     |
| Total                outside shares of Alpha Mortorsport, Inc. issued upon closing of                share                exchange |                                                     |   | 10,000,000                                                               |
| Total                shares outstanding subsequent to the share exchange                                                           |                                                     |   | 44,464,038                                                               |
|                                                                                                                               |                                                     |   |                                                                     |

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**Healthcare      Providers Direct, Inc.**

**NOTES      TO THE CONDENSED FINANCIAL STATEMENTS**

**For        the three and nine months ended September 30, 2007 and        2006**

|   | Investa                Warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | On                February 7, 2007, the Company issued warrants to Investa Capital                Partners                Inc. (“Investa”) for services performed in connection with the reverse                merger transaction, which are exercisable in two tranches. The tranche                A                warrants give Investa the right to purchase 2,705,659 shares of common                stock at an exercise price of $0.1848 per share. The tranche B warrants                give Investa the right to purchase 2,032,982 shares of common stock                at an                exercise price of $0.2459 per share. The warrants had a fair value                of                $2,927,285 and have been recorded as an expense for the three months                ended                March 31, 2007.  Both the tranche A and the tranche B warrants are                exercisable for a period of 365 days from the date of issuance. Until                such                time that the Company has raised an aggregate of $2,500,000, the                Company                shall have the right to force Investa to exercise the tranche A and                the                tranche B Warrants in the following manner:                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | -  With                respect to the tranche A warrants, in the event the Company has not                raised                an aggregate of $2,500,000, the Company may force the exercise of                up to                $500,000 (2,705,659 shares) of the tranche A warrants no earlier                than 90                days from the date of issuance. - With                respect to the tranche B warrants, in the event the Company has not                raised                an aggregate of $2,500,000 and the Company has an effective registration                statement pursuant to the Securities Act covering all the shares                of common                stock underlying the tranche A warrant and the tranche B warrant,                the                Company may force the exercise of up to an $500,000 (2,032,982 shares)                of                the tranche B warrants no earlier than 90 days from the exercise                of                tranche A warrants.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | The                Company valued the put feature associated with these warrants and                determined that the value did not have a significant impact on the                financial statements for the nine month period ended September 30,                2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | ***Liquidity*****—**The Company has net losses of ($5,721,045) and negative                cash flow                from operating activities of ($2,543,153) for the nine months ended                September 30, 2007, and an accumulated deficit of ($7,834,049) as                of                September 30, 2007. These circumstances raise substantial doubt about                the                Company’s ability to continue as a going concern. The Company has taken                steps to mitigate the negative operating results by attempting to                increase                their sales by expanding their market, introducing new products,                and                increasing the emphasis on sales and marketing. The Company’s ultimate                success is dependent upon fulfilling its operating plans and raising                additional capital or financing. The Company completed a Share exchange                into a public company shell on February 7, 2007, thereby offering                access                to the public markets (as mentioned above). The financial statements                have                been prepared on the basis that the Company will continue as a going                concern, which contemplates the realization of assets and the satisfaction                of liabilities in the normal course of business. There have been                no                adjustments to the financial statements to reflect the outcome of                this                uncertainty. |

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**Healthcare      Providers Direct, Inc.**

**NOTES      TO THE CONDENSED FINANCIAL STATEMENTS**

**For        the three and nine months ended September 30, 2007 and        2006**

**2.       SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES**

|   | ***Uses                of Estimates*****—**The preparation of financial                statements in conformity with accounting principles generally accepted                in                the United States of America 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. Significant accounting estimates used                in the                Company’s financial statements included depreciation rates, allowances for                doubtful accounts, and valuations of options and warrants. Actual                results                could differ from those estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | ***Income                Taxes*****—**The Company accounts for income tax                in accordance with Statement of Financial Accounting Standards (“SFAS”)                No. 109, *Accounting for Income Taxes*, which requires an asset and                liability approach to financial reporting for income taxes. Deferred                income tax assets and liabilities are computed for differences between                the                financial statement and tax bases of assets and liabilities that                will                result in taxable or deductible amounts in the future, based on enacted                tax laws and rates applicable to the periods in which the differences                are                expected to affect taxable income. Valuation allowances are established,                when necessary, to reduce the deferred tax assets to the amount expected                to be realized.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | ***Revenue                Recognition*****—**Revenue is recognized when                goods are shipped, provided that there is evidence of an arrangement                with                the customer, the price is fixed and determinable and collection                is                reasonably assured. The Company accrues for sales returns and other                allowances based upon specific customer situations and the Company's                history of sales returns.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | ***Share-Based                Compensation*****—**The Company accounts for its                stock options in accordance with SFAS No. 123(R), which requires                the                measurement and recognition of compensation expense for all share-based                payment awards based on estimated fair values at the date of the                grant.                Determining the fair value of share-based awards at the grant date                requires judgment in developing assumptions, which involve a number                of                variables. These variables include, but are not limited to, the expected                stock price volatility over the term of the awards, and expected                stock                option exercise behavior. In addition, we also use judgment in estimating                the number of share-based awards that are expected to be                forfeited.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | ***Recent                Accounting Pronouncements*****—**In June, 2006                the FASB issued FASB Interpretation No. 48, Accounting for Uncertainty                in                Income Taxes, an interpretation of FASB Statement No. 109, Accounting                for                Income Taxes ("FIN 48"). FIN 48 clarifies the accounting for uncertainty                in income taxes recognized in a company's financial statements in                accordance with FASB Statement No. 109. FIN 48 stipulates a recognition                threshold and measurement attribute for the financial statement                recognition and measurement of a tax position taken or expected to                be                taken in a tax return. FIN 48 also provides guidance on derecognition,                classification, and interest and penalties. The provisions of FIN                48 are                to be effective for fiscal years beginning after December 15, 2006.                We                adopted FIN 48 on January 1, 2007. The adoption of FIN 48 did not                have a significant impact on our results of operations or financial                position. As a result of our continuing tax losses, we have historically                not paid income taxes and have recorded a full valuation allowance                against                our net deferred tax asset. Therefore, we have not recorded a liability                for unrecognized tax benefits prior to adoption of FIN 48 and there                was no                adjustment from the implementation. There continues to be no liability                related to unrecognized tax benefits at September 30, 2007. We recognize                interest and penalties related to unrecognized tax benefits in income                tax                expense. There was no accrued interest related to unrecognized tax                benefits at September 30, 2007. The tax years 2004-2006 remain open                to                examination by the major taxing jurisdictions to which we are                subject. |

----

**Healthcare      Providers Direct, Inc.**

**NOTES      TO THE CONDENSED FINANCIAL STATEMENTS**

**For        the three and nine months ended September 30, 2007 and        2006**

**3.       NOTES      PAYABLE**

|   | On                January 22, 2007, the Company paid off the $150,000 note payable                outstanding at December 31, 2006. On February 7, 2007, the Company                paid                off the $100,000 bridge loan outstanding at December 31,                2006.  On June 28, 2007, the maturity date of the note dated                June 1, 2006 in the amount of $90,000  was extended to December                31, 2007 at a per annum rate of 11.5%.   On                August 9, 2007, the Company paid off the July 16, 2007 $50,000                non-interest bearing loan from management.  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**4.       CONVERTIBLE      NOTES PAYABLE**

|  From                July 31, 2007 through August 31, 2007, the Company issued $2,150,000                of                its 9% Senior Secured Convertible Debentures (the “Debentures”) in a                private placement. The debentures are convertible into the Company’s                common stock, at the option of the holder, at any time up to maturity                at                an initial conversion price equal to $0.25 per share. The debentures                have                a three-year term and accrue interest at 9% per year. Accrued                interest on the convertible debt is payable semi-annually in cash                or in                Common Stock, at the Company’s option provided, however, payment in shares                of common stock may only occur if during the 20 Trading Days immediately                prior to the applicable Interest Payment Date (i) the Company shall                have                given the Investor notice (ii) such shares to be delivered on the                Interest                Payment Date are registered at the time of issuance, (iii) at the                time of                issuance there are a sufficient number of registered shares to cover                all                of the shares of common stock issuable upon conversion of the debenture                and (iv) the Common Stock is trading on the Trading Market and the                Registrable Securities are listed for trading on a Trading Market                (and the                Company believes, in good faith, that trading of the Common Stock                on a                Trading Market will continue uninterrupted for the foreseeable                future).  Accrued interest at September 30, 2007 is                approximately $28,000. Beginning                on the six-month anniversary of the Closing of each Debenture, and                continuing on the same day of each successive month thereafter, the                Company must repay 1/29th                of the                aggregate face amount of the Debentures, plus all accrued interest                thereon, either in cash or in Common Stock, at the Company’s option. If                prepaid in Common Stock, the number of shares issued will be based                on a                25% discount to the volume weighted average price (VWAP) of the Common                Stock for the ten (10) trading days immediately preceding (but not                including) the applicable prepayment date. Notwithstanding the foregoing,                the Company’s right to prepay the Debentures in shares of Common Stock on                each prepayment date is subject to the condition that the Registration                Statement must be effective on such prepayment date and available                for use                by the investors. The                Company will have the ability to cause the investors to convert their                Debentures and any accrued but as yet unpaid interest thereon into                Common                Stock if (i) the Registration Statement is effective and available                for use                by the Investors on the date the conversion notice is given by the                Company, (ii) the closing price of the Common Stock exceeded 200%                of the                conversion price then in effect for each of the 20 consecutive trading                days immediately preceding the date that the conversion notice is                given by                the Company, and (iii) the average daily trading volume for the Common                Stock during such 20 consecutive trading day period exceeded 125,000                shares. For                each aggregate face amount of Debentures purchased, each investor                received                a Warrant to purchase such number of shares of Common Stock equal                to the                aggregate face amount of their respective Debenture divided by the                Conversion Price.  The Warrants are exercisable for a period of                five years at an exercise price of $0.50 per share.  At                September 30, 2007 there are 8,600,000 warrants outstanding with                an                aggregate value of $1,483,000.  The costs associated with the                warrants were recorded as a debt discount and are being amortized                using                the effective interest method over the 3 year term of the                notes.  For the three and nine months ended September 30, 2007,                approximately $60,000 of this debt discount was expensed and the                remaining                balance approximated $1,424,000 at September 30, 2007. In                addition, the debentures conversion feature has been valued at                approximately $656,000 due to the excess of the market value of the                Common                Stock over the conversion price. The discount attributable to the                beneficial conversion is being amortized using the effective interest                method over the term of the debentures and approximately $24,000                is                reflected in interest expense in the accompanying statement of operations                for the three months and nine months ended September 30,                2007. In                consideration for placement services, the Company has paid the Placement                Agent a commission of 8% of the gross proceeds of the debentures                plus                5-year warrants to purchase up to such number of Warrants equal to                8% of                the aggregate amount of Securities subscribed for at $0.50 per                share.  The commissions paid to the placement agent and other                costs of issuance were recorded as deferred financing costs which                approximated $407,000 of which $118,000 were related to the issuance                of                warrants and approximately $289,000 was paid as cash for placement                agent                fees and various other direct costs of issuance.  The deferred                financing costs are being amortized using the effective interest                method                over the term of the debentures. Approximately $11,000 was charged                to                operations for the three and nine months ended September 30,                2007. On                September 28, 2007, the Company filed a registration statement on                form                SB-2 with the United States Securities and Exchange Commission in                connection with the above mentioned financing activities.The                following table summarizes the above mentioned transaction as of                September                30, 3007. |
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |

|   |   |  |
|--------|--------|--|

| Convertible                notes payable                                                                                |   |   |      |   | $      | 2,150,000 |       |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|-----------|------------|
| Debt                discount on convertible notes attributable   to                beneficial conversion |   |   | 655,830   |   |   |      |       |   |
| Less:                Amortization                                                                                       |   |   | (24,183   | )      |   |      | (631,647   | ) |
|                                                                                                                    |   |   |      |   |   |      |       |   |
| Debt                discount attributable to warrants                                                                   |   |   | 1,483,084 |   |   |      |       |   |
| Less:                Amortization                                                                                       |   |   | (59,559   | )      |   |      | (1,423,525 | ) |
|                                                                                                                    |   |   |      |   |   |      |       |   |
| Convertible                notes payable, net of discounts                                                              |   |   |      |   |   | $         | 94,828     |   |
|                                                                                                                    |   |   |      |   |   |      |       |   |

----

**5.       INCOME      TAXES**

|   | The                Company has incurred losses since inception, which have resulted                in net                operating loss carry forwards (NOL’s).                                                      |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                       |
|   | The                tax effect of the temporary differences that give rise to the Company’s                net deferred tax assets (in thousands) at September 30, 2007 are                as                follows: |

|                                                                                                       |   |   |       |
|------------------------------------------------------------------------------------------------------------|--------|--------|------------|
| Assets:                                                                                                    |   |   |       |
| Deferred                tax assets:                                                                        |   |   |       |
| Net                operating loss carry forwards                                                           |   | $      | 1,640,000  |   |
|           Allowance                for doubtful accounts |   |   | 13,000     |   |
|           Stock                based compensation        |   |   | 162,000    |   |
|           Accrued                salaries                |   |   | 96,000     |   |
|                                                                                                       |   |   |       |   |
| Subtotal                                                                                                   |   |   | 1,911,000  |   |
| Valuation                allowance                                                                         |   |   | (1,911,000 | ) |
| Net                deferred tax assets                                                                     |   | $      | -          |   |
|                                                                                                       |   |   |       |   |

|   | The                Company has recorded a full valuation allowance to reflect the estimated                amount of deferred tax assets that may not be realized due to the                Company’s inability to generate profits to utilize the NOL’s. The net                increase in the valuation allowance is primarily related to increases                in                federal and state NOL carryovers.                              |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | The                Company has approximately $1,600,000 in federal and state NOL’s expiring                beginning in 2025 and 2012, respectively, as of December 31,                2006.  Pursuant to Section 382 of the Internal Revenue Code, in                the event of an ownership change of more than 50%, the ability of                the                Company to utilize the NOL carry forwards may be                limited. |

----

**Healthcare      Providers Direct, Inc.**

**NOTES      TO THE CONDENSED FINANCIAL STATEMENTS**

**For        the three and nine months ended September 30, 2007 and        2006**

**6.      COMMITMENTS AND CONTINGENCY**

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | **Consulting                Agreements**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | On                January 14, 2005, the Company entered into a consulting arrangement                with                W. Barry McDonald, under which, Mr. McDonald is to provide the Company                with certain business development assistance in exchange for monthly                payments, success fees and stock options to earn up to 5% of the                Company’s                common stock on a fully diluted basis. Mr. McDonald was also given                a seat                on the Company’s Board of Directors. Subsequent to the adoption of the                Company’s Stock Option Plan, in February 2007, our Board of Directors                agreed to grant W. Barry McDonald an option to purchase one share                of HPD                Common Stock (pre-merger common stock) for every five hours of consulting                services that Mr. McDonald provides to HPD in 2007. The exercise                price for                each share of HPD Common Stock is $0.1354 per share (on a post-merger                basis). Mr. McDonald agreed to work with our management team and                provide                36 hours of consulting services per month, such consulting services                consisting of identifying and developing relationships with companies                whose diagnostic products are consistent with our strategy (each,                a                “Target”) and objectives and assisting us with the implementation of our                business model. Such options vest at the end of each quarter following                the                performance of the consulting services by Mr. McDonald. In connection                with                the agreement noted above, Mr. McDonald was granted 890,487 options                valued                at $80,144, which represented 4% of the Company on a fully-diluted                basis                as of December 14, 2006. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Mr.                McDonald shall have the right to earn the remaining 1% of the Company’s                Common Stock on a fully-diluted basis as set forth above, upon the                consummation of a definitive agreement with a Target. The exercise                price                for such shares of HPD Common Stock is $0.1354 per                share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

**Leases**

|   | In                January 2006, the Company entered into a two year lease agreement                with an                annual rent of $75,350 per year. In March 2007, the Company entered                into a                one year lease for additional rental space with annual rent in the                amount                of $17,600 per year.  Office lease commitments as of September                30, 2007 are as follows: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                            |   | **Remaining****2007** |   | **2008** |
|-------------------------------------------------------------------------------------------------|--------|-----------------------|--------|----------|
|         Office                Lease commitment schedule | $      | 23,238                | $      | 15,081   |

**       Purchase      Commitments**

|      |   | **Number                of Units** |        |   | **Amount** |       |
|-----------|--------|------------------------------------|-------------|--------|------------|------------|
|      |   |                               |        |   |       |       |
| **2007**  |   | ** **                         | **25,280**  |   |       | **$**      | **81,548** |   |
| **2008**  |   | ** **                         | **75,000**  |   |       | ** ** | **241,935** |   |
|      |   |                               |        |   |       |       |   |   |
| **Total** |   | ** **                         | **100,280** |   |       | **$**      | **323,483** |   |
|      |   |                               |        |   |       |       |   |   |

----

**Healthcare      Providers Direct, Inc.**

**NOTES      TO THE CONDENSED FINANCIAL STATEMENTS**

**For        the three and nine months ended September 30, 2007 and        2006**

**7.       DEFINED      CONTRIBUTION RETIREMENT PLAN**

|   | The                Company maintains a 401(k) plan for its employees. Employees are                eligible                to participate in the plan immediately upon joining the Company.                Under the                terms of the plan, employees are entitled to contribute from 1% to                20% of                their total compensation, within the limitations established by the                Internal Revenue Code. The Company has agreed to make matching                contributions in the amount of 100% on the first 5% of the elective                deferral. For the three and nine months ended September 30, 2007,                the                Company’s contribution was approximately $5,500 and $15,625, respectively,                as compared to the same prior year periods of $1,125 and $7,125,                respectively. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**8.       STOCK      BASED COMPENSATION**

|   | On                December 18, 2006, the HPD Board of Directors adopted the Healthcare                Providers Direct, Inc. Stock Option Plan (the “Plan”) which provides for                the grant of Incentive Stock Options and Nonqualified Stock Options.                On                December 27, 2006 our shareholders approved the Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | The                Board of Directors has approved and adopted the 2007 Stock Incentive                Plan                by Unanimous Written Consent effective and dated June 26, 2007. Options                granted on March 28, 2007 to HPD employees were exchanged for options                granted to the same employees under the 2007 HPD’s Incentive Stock Option                Plan for an equal number of options originally granted in March and                at the                exercise price representing the closing price of the Company’s common                stock on June 26, 2007. This transaction was accounted for as a                modification.                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | Key                employees, consultants and non-employee directors of the Company                are                eligible to receive awards under the Plan. Except to the extent set                forth                in any award agreement to the contrary, options granted under the                Plan                vest in three equal annual installments for non-employee directors                and in                four equal annual installments for all other option holders commencing                on                the first anniversary of the date of grant. Options are granted at                no less                than fair market value of the Company’s stock on the date of                grant.                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | The                Plan is administered by the Board of Directors which has full power                to                construe, administer and interpret the Plan, and to adopt such rules                and                regulations they deem desirable to administer the Plan. The determination                of the Board of Directors regarding disputes, questions, construction                and                interpretation of the Plan, is final, conclusive and binding. The                plan                permits the Board of Directors to delegate its authority to any person                it                deems appropriate.                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | There                are 6,402,672 shares of Common Stock reserved for issuance upon the                exercise of options. Options have a term of ten years. In the event                of a                termination of employment or service, options that are vested at                the time                of such termination generally remain exercisable for ninety days                in the                event of involuntary termination or termination due to retirement                or                disability, and for one year in the event of termination due to death.                Vested options are immediately canceled upon termination for “Cause”. All                unvested options are canceled immediately upon termination for any                reason.                Upon the date of a “change in control”, all outstanding unvested options                become immediately vested and fully exercisable. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | With                the initial grants of stock options during the nine months ended                September                30, 2007, the Company began recording compensation expense associated                with                stock options in accordance with SFAS No. 123(R).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | The                Company’s net loss for the three and nine months ending September 30, 2007                includes $34,522 and $378,200, respectively, of compensation expense                related to stock option awards (“stock                options”).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

**Healthcare      Providers Direct, Inc.**

**NOTES      TO THE CONDENSED FINANCIAL STATEMENTS**

**For        the three and nine months ended September 30, 2007 and        2006**

|   | ***Stock                Options***Compensation                expense related to stock options granted is recognized ratably over                the                service vesting period for the entire option award. The total number                of                stock option awards expected to vest is adjusted by the estimated                forfeiture rate. The Company does not anticipate any forfeitures.                The                estimated fair market value of each stock option award was determined                on                the date of grant using the Black-Scholes option pricing model using                the                following weighted-average assumptions for the nine months ended                September                30, 2007: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Assumptions:                                   |   |        |   |
|--------|------------------------------------------------|--------|-------------|--------|
|   | Risk-free                interest rate         | 4.6%   |        |   |
|   | Expected                option life in years   | 5.0    |  years |   |
|   | Expected                stock price volatility | 85.7%  |        |   |
|   | Expected                dividend yield         | 0.0%   |        |   |

|   | The                computation of the expected option life is based on a weighted-average                calculation combining the average life of options that have already                been                exercised and post-vest cancellations with the estimated life of                the                remaining vested and unexercised options. The expected volatility                is based                on The Company’s historical stock price. The risk-free interest rate is                based on the U.S. Treasury yield curve over the expected term of                the                option. The Company has never paid cash dividends on its common stock                and                does not anticipate paying cash dividends in the foreseeable future.                Consequently, the Company uses an expected dividend yield of zero                in the                Black-Scholes option valuation model. The Company’s estimated forfeiture                rate is based on its historical experience.                                     |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | The                Company’s determination of fair value is affected by the Company’s stock                price as well as a number of assumptions that require judgment. The                weighted-average fair value per share was approximately $0.203 and                $0.143                for the three and nine months ended September 30, 2007, respectively,                and                no options were granted for the three and nine months ended September                30,                2006. No options were exercised during the three and nine months                ended                September 30, 2007 and 2006. As of September 30, 2007, total unrecognized                compensation cost related to stock options was approximately $230,460                and                the related weighted-average period over which it is expected to                be                recognized is approximately 3.0 years. The maximum contractual term                of the                Company’s stock options is 10                years. |

----

**Healthcare      Providers Direct, Inc.**

**NOTES      TO THE CONDENSED FINANCIAL STATEMENTS**

**For        the three and nine months ended September 30, 2007 and        2006**

|                                              |   |                                |      |   |                                      |   |   |                                                 |   |   |                   |   |
|---------------------------------------------------|--------|-------------------------------------|-----------|--------|-------------------------------------------|--------|--------|-------------------------------------------------|--------|--------|------------------------|--------|
|                                              |   |                                |      |   | **Weighted**                              |   |   | **Weighted                  Average**           |   |   | **Aggregate**          |   |
| Summary                of activity:               |   | **Number                of Shares** |      |   | **Exercise                Average Price** |   |   | **Contractual                  Term**(in years) |   |   | **Intrinsic****Value** |   |
| Outstanding                at December 31, 2006:  |   |                                | -         |   |                                      | $      | -      |                                            |   |   | -                      |   |   | $ | - |   |
| Granted                                           |   |                                | 2,697,209 |   |                                      | $      | 0.28   |                                            |   |   | 10                     |   |   |   | 760,112 |   |
| Exercised                                         |   |                                | -         |   |                                      | $      | -      |                                            |   |   | -                      |   |   |   | - |   |
| Cancelled                                         |   |                                | (350,000  | )      |                                      | $      | 0.60   |                                            |   |   | -                      |   |   |   | (210,000 | ) |
| Outstanding                at September 30, 2007: |   |                                | 2,347,209 |   |                                      | $      | 0.23   |                                            |   |   | 10                     |   |   | $ | 550,112 |   |
|                                              |   |                                |      |   |                                      |   |   |                                            |   |   |                   |   |   |   |   |   |
| Vested                and Expected to Vest:       |   |                                | 2,347,209 |   |                                      |   |   |                                            |   |   |                   |   |   |   |   |   |
| Exercisable:                                      |   |                                | 1,161,269 |   |                                      |   |   |                                            |   |   |                   |   |   |   |   |   |
|                                              |   |                                |      |   |                                      |   |   |                                            |   |   |                   |   |   |   |   |   |
| Available                for future grants:       |   |                                | 4,054,863 |   |                                      |   |   |                                            |   |   |                   |   |   |   |   |   |
|                                              |   |                                |      |   |                                      |   |   |                                            |   |   |                   |   |   |   |   |   |

|                                        |                                   | **Weighted                Average**      |                                                                                                                    |                                   | **Weighted                Average**                                                                                                       |
|---------------------------------------------|----------------------------------------|------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|----------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|
|                                        |                                   | **Remaining                Contractual** | **Weighted                Average**                                                                                     |                                   | **Exercise                Prices of**                                                                                                     |
| **Range                of Exercise Prices** | **Options                Outstanding** | **Life**                                 | **Exercise                Price**                                                                                       | **Options                Exercisable** | **Options                Exercisable**                                                                                                    |
| $0.13                to $0.14               | 1,847,209                              | 9.35                                     |                 $                0.1354 | 1,111,269                              | $                0.1354                                                                                                                   |
| $0.60                                       | 500,000                                | 9.66                                     |                 $                0.60   | 50,000                                 |      $                0.60                                                                                       |
|                                        | 2,347,209                              |                                     |                                                                                                                    | 1,161,269                              |                                    $0.1554 |

----

** Item      2. Management’s Discussion and Analysis or Plan of      Operations**

**Financial      Overview**

**Current      trends and outlook**

----

**Revenue      Sources**

**Critical      Accounting Estimates**

*Allowance      for Doubtful Accounts*

* *

*Impairment      of Long Lived Assets*

*Share-Based      Compensation*

*Valuation      allowance for Income Taxes*

*Accounting for Income Taxes*

----

**Results      of Operations**

**Three      Months Ended September 30, 2007 and 2006**

**Revenues**

**Cost      of Sales**

**Gross      Profit**

**Expenses**

*General      and Administrative*

*Research      and Development*

----

*Sales      and Marketing*

*Operating      Loss*

*Other      Income (Expense)*

*Net      Loss*

**Nine      Months Ended September 30, 2007 and 2006**

**Revenues**

**Cost      of Sales**

**Gross      Profit**

**Expenses**

*Merger      Related*

*General      and Administrative*

----

*Research      and Development*

*Sales      and Marketing*

*Operating      Loss*

*Other      Income (Expense)*

*Net      Loss*

**Seasonality**

----

**Liquidity and**
**Capital      Resources**

*Future      Liquidity and Capital Needs*

----

| ·   | The                magnitude and scope of our research and development programs and                our                ability to establish, enforce and maintain strategic                arrangement |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | for                research, development, clinical testing, manufacturing and                marketing; |
|--------|---------------------------------------------------------------------------------------------------------|

| ·   | our                progress with preclinical development and clinical                trials; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | the                time and costs involved in obtaining regulatory                approvals; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | the                costs involved in preparing, filing, prosecuting, maintaining, defending                and enforcing patents; and claims;                and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the                number and type of product candidates that we                pursue. |
|--------------------|-----------------------------------------------------------------------------------------|

**Contractual      Obligations Balances:**

|                                                             |   | Total  |      |   | Less                than 1 year |   |    | 1-3                years |   |
|------------------------------------------------------------------|--------|--------|-----------|--------|---------------------------------|--------|---------|--------------------------|--------|
|                                                             |   |   |      |   |                            |   |    |                     |   |
| Operating                leases                                  |   | $      | 38,319    |   |                            | $      | 38,319  |                     |   | $ | - |   |
| Purchase                commitments  (a)               |   |   | 323,483   |   |                            |   | 262,999 |                     |   |   | 60,484 |   |
| Note                payable                                      |   |   | 90,000    |   |                            |   | 90,000  |                     |   |   |   |   |
| Interest                on note payable                          |   |   | 11,323    |   |                            |   | 11,323  |                     |   |   |   |   |
| Convertible                notes payable                         |   |   | 2,150,000 |   |                            |   | 663,448 |                     |   |   | 1,486,552 |   |
| Interest                on convertible notes payable (b) (c) (d) |   |   | 334,463   |   |                            |   | 206,018 |                     |   |   | 128,445 |   |
|                                                             |   |   |      |   |                            |   |    |                     |   |   |   |   |
|                                                             |   |   |      |   |                            |   |    |                     |   |   |   |   |

| (a)   | The                Company has two licensing agreements for diagnostic tests with terms                generally ranging from one to three years, which require the Company                to                order minimum amounts of diagnostic tests. Should the Company fail                to meet                these minimum ordering amounts, the agreements can be terminated                by the                licensing party. Minimum orders (expressed as number of units) required                under existing agreements for the next two years as of September                30, 2007                are as follows: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|      | **Number                of Units** |   |  **Amount**                                |
|-----------|------------------------------------|--------|-------------------------------------------------|
|      |                               |   |                                            |
| **2007**  | **25,280**                         |   | **$      81,548** |
| **2008**  | **75,000**                         |   | **     241,935**       |
|      |                               |   |                                            |
| **Total** | **100,280**                        |   | **$   323,483**                  |
|      |                               |   |                                            |

| (b)   | From                July 31, 2007 through August 31, 2007 the Company issued $2,150,000                of its                9% Senior Secured Convertible Debentures in a private placement.                The                debentures are convertible into the Company’s common stock, at the option                of the holder, at any time up to maturity at an initial conversion                price                equal to $0.25 per share. The debentures have a three year term and                accrue                interest at 9% per year. Accrued interest on the convertible debt                is                payable semi-annually in cash or in Common Stock, at the Company’s option                provided, however, payment in shares of common stock may                only occur if during the 20 Trading Days immediately prior to the                applicable Interest Payment Date (i) the Company shall have given                the                Investor notice (ii) such shares to be delivered on the Interest                Payment                Date are registered at the time of issuance, (iii) at the time of                issuance                there are a sufficient number of registered shares to cover all of                the                shares of common stock issuable upon conversion of the debenture                and (iv)                the Common Stock is trading on the Trading Market and the Registrable                Securities are listed for trading on a Trading Market (and the Company                believes, in good faith, that trading of the Common Stock on a Trading                Market will continue uninterrupted for the foreseeable                future).  Accrued interest at September 30, 2007 is                approximately $28,000.   |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Beginning                on the six-month anniversary of the Closing of each Debenture, and                continuing on the same day of each successive month thereafter, the                Company must repay 1/29th                of the                aggregate face amount of the Debentures, plus all accrued interest                thereon, either in cash or in Common Stock, at the Company’s option. If                prepaid in Common Stock, the number of shares issued will be based                on a                25% discount to the volume weighted average price (VWAP) of the Common                Stock for the ten (10) trading days immediately preceding (but not                including) the applicable prepayment date. Notwithstanding the foregoing,                the Company’s right to prepay the Debentures in shares of Common Stock on                each prepayment date is subject to the condition that the Registration                Statement must be effective on such prepayment date and available                for use                by the investors. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | The                Company will have the ability to cause the investors to convert their                Debentures and any accrued but as yet unpaid interest thereon into                Common                Stock if (i) the Registration Statement is effective and available                for use                by the Investors on the date the conversion notice is given by the                Company, (ii) the closing price of the Common Stock exceeded 200%                of the                conversion price then in effect for each of the 20 consecutive trading                days immediately preceding the date that the conversion notice is                given by                the Company, and (iii) the average daily trading volume for the Common                Stock during such 20 consecutive trading day period exceeded 125,000                shares |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Off      Balance Sheet Arrangements**

**ITEM      3.**
**CONTROLS      AND      PROCEDURES**

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**Part      II.**
**OTHER      INFORMATION**

**Item      1.**
**Legal      Proceedings**

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

**Item      3.**
**Defaults      Upon      Senior Securities**

**Item      4.**
**Submission      of      Matters to a Vote of Security Holders**

**Item      5.**
**Other      Information**

**Item      6.**
**Exhibits**

| (a)   | Exhibits |
|-----------------|----------|

| **Exhibit                Number** |   | **Description                of Exhibit**                                                                                                                                                                    |
|-----------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1                              |   | Certification                of Principal Executive Officer pursuant to Rule 13a-14 and Rule 15d-14(a),                promulgated under the Securities and Exchange Act of 1937, asamended                  |
| 31.2                              |   | Certification                of Principal Financial Officer pursuant to Rule 13a-14 and Rule 15d                14(a),                promulgated under the Securities and Exchange Act of 1934, asamended   |
| 32.1                              |   | Certification                pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002 (Chief Executive                Officer) |
| 32.2                              |   | Certification                pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002 (Chief Executive                Officer) |

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**SIGNATURES**

| In                accordance with the requirements of the Exchange Act, the registrant                caused this report to be signed on its behalf by the undersigned,                thereunto duly authorized. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                              |   |   |   |   |
|                                                                                                                                                                                                              |   |   |   |   |
|                                                                                                                                                                                                              |   | Healthcare                Providers Direct, Inc. |
|                                                                                                                                                                                                              |   |   |   |   |
|                                                                                                                                                                                                              |   |   |   |   |
| Date:  November                14, 2007                                                                                                                                                                 |   | By:  /s/                Norman Proulx |   |   |
|                                                                                                                                                                                                              |   |   |   |   |
|                                                                                                                                                                                                              |   | Norman                Proulx |   |   |
|                                                                                                                                                                                                              |   | Chief                Executive Officer (Principal Executive Officer) and Chief Financial                Officer (Principal Financial |
|                                                                                                                                                                                                              |   | and                Accounting Officer) |
|                                                                                                                                                                                                              |   |   |
|                                                                                                                                                                                                              |   |   |