----

----

**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**FORM        10-QSB**

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

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

**Commission        File Number 0-23153**

**REMOTEMDX,        INC.**

| **Utah**                                                                        | **87-0543981**                                     |
|---------------------------------------------------------------------------------|----------------------------------------------------|
| (State                  or other jurisdiction of incorporation or organization) | (IRS                  Employer Identification No.) |

**150        West Civic Center Drive**

**Suite        400**

**Sandy,        Utah 84070**

**(801)        451-6141**

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**TABLE        OF CONTENTS**

|                                           |                                                                                                                                                                      | Page                                       No.  |
|------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|
|                                           |                                                                                                                                                                      |                                                                |
| PART                  I. FINANCIAL INFORMATION |                                                                                                                                                                      |
|                                           |                                                                                                                                                                      |                                                                |
| Item                  1.                       | Financial                  Statements                                                                                                                                     |                                                                |
|                                           |                                                                                                                                                                      |                                                                |
|                                           | Condensed                  Consolidated Balance Sheet as of March 31, 2007                  (Unaudited)                                                                   | 3                                                                   |
|                                           |                                                                                                                                                                      |                                                                |
|                                           | Condensed                  Consolidated Statements of Operations for the three and six months                  ended                  March 31, 2007 and 2006 (Unaudited) | 4                                                                   |
|                                           |                                                                                                                                                                      |                                                                |
|                                           | Condensed                  Consolidated Statements of Cash Flows for the six months ended                  March 31,                  2007 and 2006 (Unaudited)           | 5                                                                   |
|                                           |                                                                                                                                                                      |                                                                |
|                                           | Notes                  to Condensed Consolidated Financial Statements (Unaudited)                                                                                         | 7                                                                   |
|                                           |                                                                                                                                                                      |                                                                |
| Item                  2.                       | Management’s                  Discussion and Analysis or Plan of Operation                                                                                          | 15                                                                  |
|                                           |                                                                                                                                                                      |                                                                |
| Item                  3.                       | Controls                  and Procedures                                                                                                                                  | 21                                                                  |
|                                           |                                                                                                                                                                      |                                                                |
| PART                  II. OTHER INFORMATION    |                                                                                                                                                                      |
|                                           |                                                                                                                                                                      |                                                                |
| Item                  1.                  | Legal Proceedings                                                                                                                                                    | 22                                                                  |
|                                           |                                                                                                                                                                      |                                                                |
| Item                  2.                       | Unregistered                  Sales Equity Securities and Use of Proceeds                                                                                                 | 22                                                                  |
|                                           |                                                                                                                                                                      |                                                                |
| Item                  6.                       | Exhibits                                                                                                                                                                  | 23                                                                  |
|                                           |                                                                                                                                                                      |                                                                |
|                                           | Signatures.                                                                                                                                                               | 25                                                                  |

----

**PART        I - FINANCIAL INFORMATION**

**Item        1. Financial Statements**

**REMOTEMDX,        INC.**

**CONDENSED        CONSOLIDATED BALANCE SHEET**

**(Unaudited)**

|                                                                                                                                                                                                                                          |   | **March                  31, 2007** |         |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------------|
| **Assets**                                                                                                                                                                                                                                    |   |                                |         |   |
| Current                  assets:                                                                                                                                                                                                              |   |                                |         |   |
| Cash                                                                                                                                                                                                                                          |   | $                                   | 4,859,282    |   |
| Accounts                  receivable, net of allowance for doubtful accounts of                  $43,000                                                                                                                                      |   |                                | 1,495,857    |   |
| Inventories                  (note 2)                                                                                                                                                                                                         |   |                                | 203,766      |   |
| Interest                  receivable                                                                                                                                                                                                          |   |                                | 6,767        |   |
| Prepaid                  expenses                                                                                                                                                                                                             |   |                                | 507,736      |   |
| Total                  current assets                                                                                                                                                                                                         |   |                                | 7,073,408    |   |
|                                                                                                                                                                                                                                          |   |                                |         |   |
| Property                  and equipment, net of accumulated depreciation and amortization                  of                  $844,904 (note 3)                                                                                              |   |                                | 1,550,963    |   |
| Monitoring                  equipment, net of accumulated depreciation of $943,897 (note                  4)                                                                                                                                  |   |                                | 6,438,723    |   |
| Other                  assets                                                                                                                                                                                                                 |   |                                | 49,259       |   |
| Total                  assets                                                                                                                                                                                                                 |   | $                                   | 15,112,353   |   |
|                                                                                                                                                                                                                                          |   |                                |         |   |
| **Liabilities                  and Stockholders’ Deficit**                                                                                                                                                                              |   |                                |         |   |
| Current                  liabilities:                                                                                                                                                                                                         |   |                                |         |   |
| Bank                  line of credit                                                                                                                                                                                                          |   | $                                   | 3,797,650    |   |
| Accounts                  payable                                                                                                                                                                                                             |   |                                | 4,431,392    |   |
| Accrued                  liabilities (note 6)                                                                                                                                                                                                 |   |                                | 2,019,566    |   |
| Dividends                  payable                                                                                                                                                                                                            |   |                                | 91,512       |   |
| Deferred                  revenue                                                                                                                                                                                                             |   |                                | 3,001        |   |
| Related                  party line of credit (note 8)                                                                                                                                                                                        |   |                                | 78,580       |   |
| Notes                  payable (note 7)                                                                                                                                                                                                       |   |                                | 169,676      |   |
| Total                  current liabilities                                                                                                                                                                                                    |   |                                | 10,591,377   |   |
| Total                  liabilities                                                                                                                                                                                                            |   |                                | 10,591,377   |   |
|                                                                                                                                                                                                                                          |   |                                |         |   |
| SecureAlert                  Series A Preferred Stock                                                                                                                                                                                         |   |                                | 3,590,000    |   |
| Minority                  interest (note 9)                                                                                                                                                                                                   |   |                                | 386,112      |   |
|                                                                                                                                                                                                                                          |   |                                |         |   |
| Stockholders’                  deficit:                                                                                                                                                                                                 |   |                                |         |   |
| Preferred                  stock:                                                                                                                                                                                                             |   |                                |         |   |
| Series                  A; 10% dividend, convertible, non-voting; $0.0001 par value; 40,000                  shares                  designated; 8,620 shares                  outstanding (aggregate liquidation preference of $22,928) |   |                                | 1            |   |
| Series                  B; convertible; $0.0001 par value; 2,000,000 shares                  designated; 12,999 shares outstanding (aggregate liquidation preference                  of                  $38,997)                       |   |                                | 1            |   |
| Series                  C; convertible; $0.0001 par value; 7,357,144 shares                  designated; 5,194,720 shares outstanding (aggregate liquidation                  preference                  of $8,727,130)                 |   |                                | 519          |   |
| Common                  stock; $0.0001 par value; 175,000,000 shares authorized, 96,701,918 shares                  outstanding                                                                                                     |   |                                | 9,670        |   |
| Additional                  paid-in capital                                                                                                                                                                                                   |   |                                | 124,490,656  |   |
| Deferred                  compensation                                                                                                                                                                                                        |   |                                | (2,371,904   | ) |
| Accumulated                  deficit                                                                                                                                                                                                          |   |                                | (121,584,079 | ) |
| Total                  stockholders’ equity                                                                                                                                                                                             |   |                                | 544,864      |   |
| Total                  liabilities and stockholders’ equity                                                                                                                                                                             |   | $                                   | 15,112,353   |   |

----

**REMOTEMDX,        INC.**

**CONDENSED        CONSOLIDATED STATEMENTS OF OPERATIONS**

**(Unaudited)**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Three                  months endedMarch                  31, |       | Six                  months endedMarch                  31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|------------|-------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2007                                                          |       | 2006                                                        |   | 2007 |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                          |       |                                                        |   |   |   |   |   |
| Net                  sales                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                                                             | 1,649,931  |                                                        | $      | 252,415 |   | $ | 2,638,168 |   | $ | 471,908 |   |
| Cost                  of goods sold                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                          | 2,145,872  |                                                        |   | 119,318 |   |   | 4,351,265 |   |   | 226,461 |   |
| Gross                  profit (loss)                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                          | (495,941   | )                                                           |   | 133,097 |   |   | (1,713,097 | ) |   | 245,447 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                          |       |                                                        |   |   |   |   |   |   |   |   |   |
| Research                  and development expenses                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                          | 1,934,392  |                                                        |   | 424,239 |   |   | 3,154,051 |   |   | 1,154,172 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                          |       |                                                        |   |   |   |   |   |   |   |   |   |
| Selling,                  general and administrative expenses (including $1,469,554 and $2,270,705                  for the three months ended March 31, 2007 and 2006 respectively,                  and                  $3,214,991 and $2,655,444 for the six months ended March 31, 2007                  and 2006                  respectively, of compensation expense paid in stock or stock options                  /                  warrants) |   |                                                          | 3,782,843  |                                                        |   | 4,297,817 |   |   | 8,979,769 |   |   | 6,041,429 |   |
| Loss                  from operations                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                          | (6,213,176 | )                                                           |   | (4,588,959 | ) |   | (13,846,917 | ) |   | (6,950,154 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                          |       |                                                        |   |   |   |   |   |   |   |   |   |
| Other                  income (expense):                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                          |       |                                                        |   |   |   |   |   |   |   |   |   |
| Derivative                  valuation gain (loss)                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                          | -          |                                                        |   | 388,540 |   |   | - |   |   | (102,361 | ) |
| Registration                  payment arrangement expense                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                          | (618,000   | )                                                           |   | - |   |   | (565,500 | ) |   | - |   |
| Minority                  interest                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                          | 13,888     |                                                        |   | - |   |   | 13,888 |   |   | - |   |
| Other                  income                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                          | 22,241     |                                                        |   | 324 |   |   | 22,597 |   |   | 2,324 |   |
| Interest                  income                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                          | 23,957     |                                                        |   | 1,995 |   |   | 75,478 |   |   | 3,248 |   |
| Interest                  expense                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                          | (272,965   | )                                                           |   | (5,058,988 | ) |   | (557,250 | ) |   | (5,655,898 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                          |       |                                                        |   |   |   |   |   |   |   |   |   |
| Loss                  before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                          | (7,044,055 | )                                                           |   | (9,257,088 | ) |   | (14,857,704 | ) |   | (12,702,841 | ) |
| Income                  tax benefit                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                          | -          |                                                        |   | - |   |   | - |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                          |       |                                                        |   |   |   |   |   |   |   |   |   |
| Net                  loss                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                          | (7,044,055 | )                                                           |   | (9,257,088 | ) |   | (14,857,704 | ) |   | (12,702,841 | ) |
| Dividends                  on Series A preferred stock                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                          | (210,868   | )                                                           |   | (98,869 | ) |   | (448,724 | ) |   | (223,330 | ) |
| Net                  loss attributable to common stockholders                                                                                                                                                                                                                                                                                                                                                                                              |   | $                                                             | (7,254,923 | )                                                           | $      | (9,355,957 | ) | $ | (15,306,428 | ) | $ | (12,926,171 | ) |
| Net                  loss per common share basic and diluted                                                                                                                                                                                                                                                                                                                                                                                               |   | $                                                             | (0.08      | )                                                           | $      | (0.17 | ) | $ | (0.18 | ) | $ | (0.26 | ) |
| Weighted                  average shares - basic and diluted                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                          | 90,618,000 |                                                        |   | 56,683,000 |   |   | 86,699,000 |   |   | 49,969,000 |   |

----

**REMOTEMDX,        INC.**

**CONDENSED        CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                                          |   | **Six                  months ended March 31,** |        |
|---------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|-------------|
|                                                                                                          |   | **2007**                                        |        | **2006** |   |
|                                                                                                          |   |                                            |        |   |   |   |   |
| **Cash                  flows from operating activities:**                                                    |   |                                            |        |   |   |   |   |
| Net                  loss                                                                                     |   | $                                               | (14,857,704 | ) | $ | (12,702,841 | ) |
| Adjustments                  to reconcile net loss to net cash used in operating                  activities: |   |                                            |        |   |   |   |   |
| Depreciation                  and amortization                                                                |   |                                            | 1,060,106   |   |   | 32,932 |   |
| Derivative                  liability valuation                                                               |   |                                            | -           |   |   | 102,362 |   |
| Registration                  payment arrangement expense                                                     |   |                                            | 565,500     |   |   | - |   |
| Beneficial                  conversion feature recorded as interest expense                                   |   |                                            | -           |   |   | 321,429 |   |
| Stock                  options and warrants issued for services                                               |   |                                            | 2,011,200   |   |   | 873,915 |   |
| Accretion                  of interest expense related to redeemable common stock                             |   |                                            | -           |   |   | 1,413,333 |   |
| Amortization                  on debt discount                                                                |   |                                            | -           |   |   | 1,233,802 |   |
| Amortization                  of deferred consulting and financing costs                                      |   |                                            | 411,941     |   |   | 3,182,946 |   |
| Common                  stock issued for services and interest                                                |   |                                            | 595,050     |   |   | 1,106,565 |   |
| Common                  stock issued to settle lawsuit                                                        |   |                                            | 196,800     |   |   | - |   |
| Impairment                  of monitoring test equipment                                                      |   |                                            | 1,414,244   |   |   | - |   |
| Minority                  interest in net loss                                                                |   |                                            | (13,888     | ) |   | - |   |
| Interest                  income on restricted cash                                                           |   |                                            | -           |   |   | (2,924 | ) |
| Increases                  in related party line of credit for service                                        |   |                                            | 302,870     |   |   | 338,740 |   |
| Changes                  in operating assets and liabilities:                                                 |   |                                            |        |   |   |   |   |
| Accounts                  receivable, net                                                                     |   |                                            | (1,266,429  | ) |   | (32,990 | ) |
| Interest                  receivable                                                                          |   |                                            | 8,837       |   |   | - |   |
| Inventories                                                                                                   |   |                                            | 1,295,816   |   |   | (10,386 | ) |
| Prepaid                  expenses and other assets                                                            |   |                                            | 1,995,517   |   |   | (65,251 | ) |
| Accounts                  payable                                                                             |   |                                            | 2,735,227   |   |   | 352,037 |   |
| Accrued                  liabilities                                                                          |   |                                            | 467,395     |   |   | 204,705 |   |
| Deferred                  revenue                                                                             |   |                                            | (14,816     | ) |   | (1,489 | ) |
| Net                  cash used in operating activities                                                        |   |                                            | (3,092,334  | ) |   | (3,653,115 | ) |
|                                                                                                          |   |                                            |        |   |   |   |   |
| **Cash                  flows used in investing activities:**                                                 |   |                                            |        |   |   |   |   |
| Purchase                  of monitoring equipment                                                             |   |                                            | (8,015,371  | ) |   | - |   |
| Purchase                  of property and equipment                                                           |   |                                            | (426,254    | ) |   | (19,278 | ) |
| Net                  cash used in investing activities                                                        |   |                                            | (8,441,625  | ) |   | (19,278 | ) |

----

**REMOTEMDX,        INC.**

**CONDENSED        CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)**

**(Unaudited)**

|                                                                              |   | **Six                  months ended March 31,** |       |
|------------------------------------------------------------------------------|--------|-------------------------------------------------|------------|
|                                                                         |   | **2007**                                        |       | **2006** |   |
| **Cash                  flows from financing activities:**                   |   |                                                 |       |  |   |
| Net                  advances from related-party line of credit              |   |                                            | (268,839   | ) |   | (333,846 | ) |
| Net                  payments on bank line of credit                         |   |                                            | (99,461    | ) |   | (423 | ) |
| Payments                  of accrued SecureAlert Series A Preferred dividend |   |                                            | (28,452    | ) |   | - |   |
| Decrease                  in subscription receivable                         |   |                                            | -          |   |   | 504,900 |   |
| Proceeds                  from issuance of Series C Preferred Stock          |   |                                            | -          |   |   | 921,120 |   |
| Proceeds                  from the exercise of options and warrants          |   |                                            | 4,355,464  |   |   | - |   |
| Proceeds                  from the issuance of SecureAlert Preferred Stock   |   |                                            | -          |   |   | 600,000 |   |
| Proceeds                  from sale of common stock                          |   |                                            | 6,162,000  |   |   | 700,000 |   |
| Proceeds                  from the sale of Volu-Sol Reagents stock           |   |                                            | 400,000    |   |   | - |   |
| Net                  proceeds from issuance of notes payable                 |   |                                            | -          |   |   | 1,092,003 |   |
| Net                  cash provided by financing activities                   |   |                                            | 10,520,712 |   |   | 3,483,754 |   |
|                                                                         |   |                                            |       |   |   |   |   |
| Net                  decrease in cash                                        |   |                                            | (1,013,247 | ) |   | (188,639 | ) |
|                                                                         |   |                                            |       |   |   |   |   |
| Cash,                  beginning of period                                   |   |                                            | 5,872,529  |   |   | 416,036 |   |
|                                                                         |   |                                            |       |   |   |   |   |
| Cash,                  end of period                                         |   | $                                               | 4,859,282  |   | $ | 227,397 |   |

|                                                                                                                                                                |   |   |    |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|
| **Cash                  paid for interest and taxes:**                                                                                                              |   |   |    |   |   |   |   |
| Cash                  paid for income taxes                                                                                                                         |   | $      | -       |   | $      | - |   |
| Cash                  paid for interest                                                                                                                             |   | $      | 387,393 |   | $      | 111,778 |   |
|                                                                                                                                                                |   |   |    |   |   |   |   |
| **Supplemental                  schedule of non-cash investing and financing                  activities:**                                                         |   |   |    |   |   |   |   |
|                                                                                                                                                                |   |   |    |   |   |   |   |
| Issuance                  of shares of common stock in exchange for shares of Series A preferred                  stock                                             |   |   | 345     |   |   | 208 |   |
| Issuance                  of shares of common stock in exchange for shares of Series B Preferred                  Stock                                             |   |   | 35      |   |   | 566 |   |
| Issuance                  of shares of common stock and warrants in exchange for deferred                  consulting                  services and financing costs |   |   | 134,757 |   |   | 932,500 |   |
| Accrual                  of Series A and C Preferred stock dividends                                                                                                |   |   | 448,724 |   |   | 223,330 |   |
| SecureAlert                  Series A Preferred dividends                                                                                                           |   |   | 99,088  |   |   | - |   |
| Payment                  of accrued preferred stock dividends through the issuance of Series                  A and                  C preferred stock              |   |   | -       |   |   | 44 |   |

----

**REMOTEMDX,        INC. AND SUBSIDIARIES**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

| **(1)** | **BASIS                  OF PRESENTATION** |
|---------|--------------------------------------------|

***Going        Concern***

***Principles        of Consolidation***

***Stock-Based        Compensation***

----

|                                     |   | March                  31, 2007 |   | March                  31, 2006 |
|------------------------------------------|--------|---------------------------------|--------|---------------------------------|
|                                     |   |                            |   |                            |
| Risk                  free interest rate |   | 4.54%                           |   | 4.40%                           |
| Expected                  life           |   | 5                  Years        |   | 5                  Years        |
| Dividend                  yield          |   | n/a                             |   | n/a                             |
| Volatility                               |   | 145%                            |   | 113%                            |

|                                               |   |   |      |     |   | Weighted    |   |                        |   |
|----------------------------------------------------|--------|--------|-----------|----------|--------|-------------|--------|-----------------------------|--------|
|                                               |   |   |      | Weighted |   | Average     |   |                        |   |
|                                               |   | Shares |      | Average  |   | Remaining   |   | Aggregate                   |   |
|                                               |   | Under  |      | Exercise |   | Contractual |   | Intrinsic                   |   |
|                                               |   | Option |      | Price    |   | Life        |   | Value                       |   |
|                                               |   |   |      |     |   |        |   |                        |   |
| Outstanding                  at September 30, 2006 |   |   | 3,607,500 |     | $      | 0.63        |   |                        |   |   |   |   |   |
| Granted                                            |   |   | 275,000   |     |   | 1.59        |   |                        |   |   |   |   |   |
| Exercised                                          |   |   | (225,000  | )        |   | 0.58        |   |                        |   |   |   |   |   |
| Forfeited                                          |   |   | (100,000  | )        |   | 0.60        |   |                        |   |   |   |   |   |
| Expired                                            |   |   | -         |     |   | -           |   |                        |   |   |   |   |   |
| Outstanding                  at March 31, 2007     |   |   | 3,557,500 |     | $      | 0.71        |   | 3.94                  Years |   |   | 2,997,525 |   |
| Exercisable                  at March 31, 2007     |   |   | 3,557,500 |     | $      | 0.71        |   | 3.94                  Years |   |   | 2,997,525 |   |

***Impairment        of Long-Lived Assets***

----

***Net        Loss Per Common Share***

***Revenue        Recognition***

**Registration        payment arrangements**

*Accounting        for Registration Payment Arrangements*
*Accounting        for Contingencies*

----

| **(2)** | **INVENTORIES** |
|---------|-----------------|

| Offender                  tracking devices and accessories                  |   | $      | 168,918 |   |
|-----------------------------------------------------------------------------|--------|--------|---------|--------|
| Reagent                  stains, net of reserve for obsolescence of $53,824 |   |   | 34,848  |   |
| Total                                                                       |   | $      | 203,766 |   |

| **(3)** | **PROPERTY                  AND EQUIPMENT** |
|---------|---------------------------------------------|

| Property                  and equipment         |   | $      | 2,395,867 |   |
|-------------------------------------------------|--------|--------|-----------|--------|
| Less:                  accumulated depreciation |   |   | (844,904  | )      |
| Total                                           |   | $      | 1,550,963 |   |

** **

| **(4)** | **MONITORING                  EQUIPMENT** |
|---------|-------------------------------------------|

| Monitoring                  equipment           |   | $      | 7,382,620 |   |
|-------------------------------------------------|--------|--------|-----------|--------|
| Less:                  accumulated depreciation |   |   | (943,897  | )      |
| Total                                           |   | $      | 6,438,723 |   |

| **(5)** | **BANK                  LINE OF CREDIT** |
|---------|------------------------------------------|

| **(6)** | **ACCRUED                  LIABILITIES** |
|---------|------------------------------------------|

| Accrued                  interest                           |   | $      | 46,786    |   |
|-------------------------------------------------------------|--------|--------|-----------|--------|
| Accrued                  bonuses and director fees          |   |   | 100,000   |   |
| Accrued                  payroll and employee benefits      |   |   | 204,822   |   |
| Accrued                  cellular costs                     |   |   | 224,828   |   |
| Accrued                  legal expenses                     |   |   | 155,452   |   |
| Accrued                  engineering costs                  |   |   | 128,200   |   |
| Registration                  payment arrangement liability |   |   | 1,147,500 |   |
| Other                  accrued expenses                     |   |   | 11,978    |   |
| Total                                                       |   | $      | 2,019,566 |   |

----

| **(7)** | **NOTES                  PAYABLE** |
|---------|------------------------------------|

| **(8)** | **RELATED-PARTY                  LINE OF CREDIT AND                  NOTE** |
|---------|-----------------------------------------------------------------------------|

| **(9)** | **MINORITY                  INTEREST** |
|---------|----------------------------------------|

| **(10)** | **PREFERRED                  STOCK** |
|----------|--------------------------------------|

**Series        A 10% Convertible Non-Voting Preferred Stock**

----

**Series        B Convertible Preferred Stock**

**Series        C Convertible Preferred Stock**

**SecureAlert,        Inc., Preferred Shares**

----

| **(11)** | **COMMON                  STOCK** |
|----------|-----------------------------------|

|   | · | 478,333                  shares were issued for services performed and the settlement of                  a lawsuit                  for a value of $791,850. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 5,458,129                  shares were issued in connection with Series A, B and C Preferred                  Stock                  conversions. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 7,549,603                  shares were issued in connection with the exercise of                  warrants. |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | 3,081,000                  shares were issued for $6,162,000 in                  cash. |
|--------|--------|----------------------------------------------------------------------------------------|

***Common        Stock Options and Warrants***

| **(12)** | **SEGMENT                  INFORMATION** |
|----------|------------------------------------------|

|                                                 |   | Three                  Months EndedMarch                  31, |       |
|------------------------------------------------------|--------|---------------------------------------------------------------|------------|
|                                                 |   | 2007                                                          |       | 2006 |   |
| Sales                  to external customers:        |   |                                                          |       |   |   |   |   |
| SecureAlert                                          |   | $                                                             | 1,475,829  |   | $ | 75,872 |   |
| Reagents                                             |   |                                                          | 174,102    |   |   | 176,543 |   |
|                                                 |   | $                                                             | 1,649,931  |   | $ | 252,415 |   |
| Net                  (loss) income from operations : |   |                                                          |       |   |   |   |   |
| SecureAlert                                          |   | $                                                             | (4,002,722 | ) | $ | (1,313,022 | ) |
| Reagents                                             |   |                                                          | (138,873   | ) |   | (9,279 | ) |
| Other                  (unallocated)                 |   |                                                          | (2,902,460 | ) |   | (7,934,787 | ) |
|                                                 |   | $                                                             | (7,044,055 | ) | $ | (9,257,088 | ) |

----

|                                                 |   | Six                  Months EndedMarch                  31, |        |
|------------------------------------------------------|--------|-------------------------------------------------------------|-------------|
|                                                 |   | 2007                                                        |        | 2006 |   |
| Sales                  to external customers:        |   |                                                        |        |   |   |   |   |
| SecureAlert                                          |   | $                                                           | 2,311,212   |   | $ | 152,932 |   |
| Reagents                                             |   |                                                        | 326,956     |   |   | 318,976 |   |
|                                                 |   | $                                                           | 2,638,168   |   | $ | 471,908 |   |
| Net                  (loss) income from operations : |   |                                                        |        |   |   |   |   |
| SecureAlert                                          |   | $                                                           | (8,883,046  | ) | $ | (2,662,642 | ) |
| Reagents                                             |   |                                                        | (205,595    | ) |   | 14,551 |   |
| Other                  (unallocated)                 |   |                                                        | (5,769,063  | ) |   | (10,054,750 | ) |
|                                                 |   | $                                                           | (14,857,704 | ) | $ | (12,702,841 | ) |

| Identifiable                  assets: |   |   |       |   |   |  |   |
|---------------------------------------|--------|--------|------------|--------|--------|--|--------|
| SecureAlert                           |   | $      | 10,127,418 |   |   |  |        |
| Reagents                              |   |   | 257,691    |   |   |  |   |
| Other                  (unallocated)  |   |   | 4,727,244  |   |   |  |   |
| Total                  assets         |   | $      | 15,112,353 |   |   |  |   |

| **(13)** | **SUBSEQUENT                  EVENTS** |
|----------|----------------------------------------|

|   | 1) | Subsequent                  to March 31, 2007, 5,107,942 shares of Series C Convertible Preferred                  Stock were converted into 15,323,826 shares of common stock. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2) | Subsequent                  to March 31, 2007, the Company issued 355,547 shares of common                  stock in                  connection with the exercise of warrants for cash proceeds of                  $199,107. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | 3) | On                  April 30, 2007, 4,187 (including 34 shares of accrued but unpaid                  dividends                  for the month of April 2007) shares of Series A Preferred Stock                  converted                  into 1,549,365 shares of common                  stock. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4) | Subsequent                  to March 31, 2007, the Company sold 2,500,000 shares of Volu-Sol                  Reagents                  common stock for cash proceeds of                  $1,000,000. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5) | In                  April 2007, the Company sent out a letter to all Series C Preferred                  shareholders giving them notice to redeem all Series C Preferred                  stock.                  The holders were required to convert their shares of Series C Preferred                  into common stock or redeem them for $4 per                  share. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

***Special        Note Regarding Forward-looking Information***

**General        **

**Our        Strategy**

**Critical        Accounting Policies**

**Inventory        Reserves**

|   | · | Current                  inventory quantities on hand; |
|--------|--------|--------------------------------------------------------|

|   | · | Product                  acceptance in the marketplace; |
|--------|--------|---------------------------------------------------------|

----

|   | · | Customer                  demand; |
|--------|--------|-----------------------------------|

|   | · | Historical                  sales; |
|--------|--------|------------------------------------|

|   | · | Forecast                  sales; |
|--------|--------|----------------------------------|

|   | · | Product                  obsolescence; and |
|--------|--------|--------------------------------------------|

|   | · | Technological                  innovations. |
|--------|--------|---------------------------------------------|

**Revenue        Recognition**

**Impairment        of Long-lived Assets**

**Accounting        for Stock-based Compensation**

----

|                                     |   | March                  31, 2007 |   | March                  31, 2006 |
|------------------------------------------|--------|---------------------------------|--------|---------------------------------|
|                                     |   |                            |   |                            |
| Risk                  free interest rate |   | 4.54%                           |   | 4.40%                           |
| Expected                  life           |   | 5                  Years        |   | 5                  Years        |
| Dividend                  yield          |   | n/a                             |   | n/a                             |
| Volatility                               |   | 145%                            |   | 113%                            |

|                                               |   |   |      |     |   | Weighted    |   |                        |   |
|----------------------------------------------------|--------|--------|-----------|----------|--------|-------------|--------|-----------------------------|--------|
|                                               |   |   |      | Weighted |   | Average     |   |                        |   |
|                                               |   | Shares |      | Average  |   | Remaining   |   | Aggregate                   |   |
|                                               |   | Under  |      | Exercise |   | Contractual |   | Intrinsic                   |   |
|                                               |   | Option |      | Price    |   | Life        |   | Value                       |   |
|                                               |   |   |      |     |   |        |   |                        |   |
| Outstanding                  at September 30, 2006 |   |   | 3,607,500 |     | $      | 0.63        |   |                        |   |   |   |   |   |
| Granted                                            |   |   | 275,000   |     |   | 1.59        |   |                        |   |   |   |   |   |
| Exercised                                          |   |   | (225,000  | )        |   | 0.58        |   |                        |   |   |   |   |   |
| Forfeited                                          |   |   | (100,000  | )        |   | 0.60        |   |                        |   |   |   |   |   |
| Expired                                            |   |   | -         |     |   | -           |   |                        |   |   |   |   |   |
|                                               |   |   |      |     |   |        |   |                        |   |   |   |   |   |
| Outstanding                  at March 31, 2007     |   |   | 3,557,500 |     | $      | 0.71        |   | 3.94                  Years |   |   | 2,997,525 |   |
|                                               |   |   |      |     |   |        |   |                        |   |   |   |   |
| Exercisable                  at March 31, 2007     |   |   | 3,557,500 |     | $      | 0.71        |   | 3.94                  Years |   |   | 2,997,525 |   |

----

|                                                                                                                                                                                                            |   | **March                  31, 2006** |                    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|-------------------------|
|                                                                                                                                                                                                            |   |                                |                    |
| Net                  loss applicable to common shareholders - as reported                                                                                                                                       |   | $                                   | (12,926,171             | ) |
|                                                                                                                                                                                                            |   |                                |                    |   |
| Add:                  intrinsic value of employee stock based compensation                                                                                                                                      |   |                                | -                       |   |
| Deduct:                  total stock based employee compensation expense determined under                  fair                  value based method for all awards, net of related tax                  effects |   |                                | (13,858                 | ) |
|                                                                                                                                                                                                            |   |                                |                    |   |
| Net                  loss - pro forma                                                                                                                                                                           |   | $                                   | (12,940,029             | ) |
|                                                                                                                                                                                                            |   |                                |                    |   |
| Basic                  and diluted loss per share - as reported                                                                                                                                                 |   | $                                   | (                  0.26 | ) |
|                                                                                                                                                                                                            |   |                                |                    |   |
| Basic                  and diluted loss per share - pro forma                                                                                                                                                   |   | $                                   | (                  0.26 | ) |

***Three        months ended March 31, 2007, compared to three months ended March 31,        2006***

*Net        Sales*

*Cost        of Goods Sold*

----

*Research        and Development Expenses*

*Selling,        General and Administrative Expenses*

*Interest        Income and Expense*

***Six        months ended March 31, 2007, compared to six months ended March 31,        2006***

*Net        Sales*

*Cost        of Goods Sold*

----

*Research        and Development Expenses*

*Selling,        General and Administrative Expenses*

*Interest        Income and Expense*

***Liquidity        and Capital Resources***

----

***Recent        Developments***

|   | A. | 5,107,942                  shares of Series C Convertible Preferred Stock were converted into                  15,323,826 shares of common stock. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | The                  Company issued 355,547 shares of common stock in connection with                  the                  exercise of warrants for cash proceeds of                  $199,107. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | C. | 4,187                  shares of Series A Preferred Stock converted into 1,549,365 shares                  of                  common stock. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | D. | Subsequent                  to March 31, 2007, the Company sold 2,500,000 shares of Volu-Sol                  Reagents                  common stock for cash proceeds of                  $1,000,000. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | E. | In                  April 2007, the Company sent out a letter to all Series C Preferred                  shareholders giving them notice to redeem all Series C Preferred                  stock.                  The holders were required to convert their shares of Series C Preferred                  into common stock or redeem them for $4 per                  share. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Item                  3.** | **Controls                  and Procedures** |
|------------------------------|----------------------------------------------|

*Evaluation        of Disclosure Controls and Procedures*

*Changes        in Internal Controls*

----

**PART        II. OTHER INFORMATION**

| **I****tem                  1.** | **Legal                  Proceedings** |
|----------------------------------|----------------------------------------|

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

|   | · | 478,333                  shares were issued for services performed for a value of                  $791,850. |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | 3,829,408                  shares were issued in connection with Series A, B and C Preferred                  Stock                  conversions. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 7,549,603                  shares were issued in connection with the exercise of                  warrants. |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | 3,081,000                  shares were issued for $6,162,000 in                  cash. |
|--------|--------|----------------------------------------------------------------------------------------|

----

| **Item                  6.** | **Exhibits                  and Reports on Form 8-K** |
|------------------------------|-------------------------------------------------------|

| *(a)* | *Exhibits                  Required by Item 601 of Regulation                  S-B* |
|-------|-------------------------------------------------------------------------------------|

| Exhibit                  Number | Title                  of Document |
|---------------------------------|------------------------------------|

|   | 3.01 | Articles                  of Incorporation (incorporated by reference to the Company's Registration                  Statement and Amendments thereto on Form 10-SB, effective December                  1,                  1997). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.01(1) | Amendment                  to Articles of Incorporation for Change of Name (previously filed                  as                  Exhibit on Form 10-KSB for the year ended September 30,                  2001) |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.01(2) | Amendment                  to Articles of Incorporation Amending Rights and Preferences of                  Series A                  Preferred Stock (previously filed as Exhibit on Form 10-KSB for                  the year                  ended September 30, 2001) |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.01(3) | Amendment                  to Articles of Incorporation Adopting Designation of Rights and                  Preferences of Series B Preferred Stock (previously filed as Exhibit                  on                  Form 10-QSB for the six months ended March 31,                  2002) |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.01(4) | Certificate                  of Amendment to the Designation of Rights and Preferences Related                  to                  Series A 10% Cumulative Convertible Preferred Stock of RemoteMDx,                  Inc.                  (incorporated by reference to the Company’s annual report on Form 10-KSB                  for the year ended September 30,                  2001) |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.01(5) | Certificate                  of Amendment to the Designation of Rights and Preferences Related                  to                  Series C 8% Convertible Preferred Stock of RemoteMDx, Inc. (incorporated                  by reference to the Company’s Current Report on Form 8-K, filed with the                  Commission on March 24, 2006) |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.01(6) | Articles                  of Amendment to Articles of Incorporation filed July 12, 2006 (previously                  filed as exhibits to the Company’s current report on Form 8-K filed July                  18, 2006, and incorporated herein by                  reference). |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.02 | Bylaws                  (incorporated by reference to the Company’s Registration Statement on Form                  10-SB, effective December 1, 1997) |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.01 | 2006                  Equity Incentive Award Plan (previously filed in August 2006 the                  Form                  10-QSB for the nine months ended June 30,                  2006) |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.01 | Distribution                  and Separation Agreement (incorporated by reference to the Company's                  Registration Statement and Amendments thereto on Form 10-SB, effective                  December 1, 1997). |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.02 | 1997                  Stock Incentive Plan of the Company, (incorporated by reference                  to the                  Company’s Registration Statement and Amendments thereto on Form 10-SB,                  effective December 1, 1997). |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.03 | 1997                  Transition Plan (incorporated by reference to the Company’s Registration                  Statement and Amendments thereto on Form 10-SB, effective December                  1,                  1997). |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.03 | Securities                  Purchase Agreement for $1,200,000 of Series A Preferred Stock                  (incorporated by reference to the Company’s Registration Statement and                  Amendments thereto on Form 10-SB, effective December 1,                  1997) |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.04 | Loan                  Agreement (as amended) dated June 2001 between ADP Management and the                  Company (incorporated by reference to the Company’s annual report on Form                  10-KSB for the year ended September 30,                  2001) |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.05 | Loan                  Agreement (as amended and extended) dated March 5, 2002 between                  ADP                  Management and the Company, effective December 31, 2001 (filed                  as an                  exhibit to the Company’s quarterly report on Form 10-QSB for the quarter                  ended December 31, 2001) |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 10.06 | Agreement                  with ADP Management, Derrick and Dalton (April 2003) (previously                  filed as                  Exhibit on Form 10-QSB for the six months ended March 31,                  2003) |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.07 | Security                  Agreement between Citizen National Bank and the Company (previously                  filed                  on Form 8-K in July 2006). |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.08 | Promissory                  Note between Citizen National Bank and the Company (previously                  filed on                  Form 8-K in July 2006). |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.09 | Common                  Stock Purchase Agreement dated as of August 4, 2006 (previously                  filed as                  an exhibit to the Company’s current report on Form 8-K filed August 7,                  2006 and incorporated herein by                  reference). |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.10 | Change                  in Terms Agreement between Citizen National Bank and the Company                  (previously filed as Exhibit on Form 10-KSB for the year ended                  September                  30, 2006) |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.11 | Securities                  Purchase Agreement between the Company and VATAS Holding GmbH,                  a German                  limited liability company (previously filed on Form 8-K in November                  2006). |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.12 | Common                  Stock Purchase Warrant between the Company and VATAS Holding GmbH                  dated                  November 9, 2006 (previously filed as Exhibit on Form 10-QSB for                  the three                  months ended December 31, 2006 filed in February                  2007). |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.13 | Settlement                  Agreement and Mutual Release between the Company and Michael Sibbett                  and                  HGR Enterprises, LLC, dated as of February 1, 2007 (previously                  filed as                  Exhibit on Form 10-QSB for the three months ended December 31,                  2006 filed                  in February 2007). |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.14 | Distributor                  Sales, Service and License Agreement between the Company and Seguridad                  Satelital Vehicular S.A. de C.V., dated as of February 5, 2007                  (previously                  filed as Exhibit on Form 10-QSB for the three months ended December                  31,                  2006 filed in February 2007). |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.1 | Certification                  of President and Chief Executive Officer under Section 302 of                  Sarbanes-Oxley Act of 2002 |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification                  of Chief Financial Officer under Section 302 of Sarbanes-Oxley                  Act of                  2002 |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32 | Certification                  under Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C.                  SECTION                  1350) |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

|                                | **REMOTEMDX,                  INC.** |
|-------------------------------------|--------------------------------------|
|                                |                                 |   |
|                                |                                 |   |
|                                |                                 |   |
| Date:                  May 15, 2007 | By:                                  |                        /s/ David G.                  Derrick                |
|                                |                                 | David                  G. Derrick, |
|                                |                                 | Chief                  Executive Officer |
|                                |                                 |   |
|                                |                                 |   |
|                                |                                 |   |
|                                |                                 |   |
| Date:                  May 15, 2007 | By:                                  |                        /s/ Michael G.                  Acton               |
|                                |                                 | Michael                  G. Acton, |
|                                |                                 | Principal                  Accounting Officer |

----