**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      DC 20549**

**FORM      10-QSB/A**

**Amendment      No. 1**

| [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 |
|--------------------------|------------------------------------------------------------------------------------------------------------------|

**PureDepth,      Inc.**

| Delaware(State                or other jurisdiction ofincorporation                or organization) | 20-4831825(I.R.S.                Employer Identification No.) |
|-----------------------------------------------------------------------------------------------------|---------------------------------------------------------------|

----

**Restatement      Explanatory Note**

**Part      I Financial Information**

----

**Part      II Other Information**

----

**PART      I - FINANCIAL INFORMATION**

**Item      1. Unaudited Condensed Consolidated Financial Statements**

**PUREDEPTH,      INC. AND SUBSIDIARIES**

**(A      Development Stage Company)**

**CONDENSED      CONSOLIDATED BALANCE SHEET**

**(unaudited)**

|                                                                                                                                                 |   | **July                31,****2006****(Restated)** |           |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|----------------|
|                                                                                                                                                 |   | **Unaudited**                                     |           |
| **ASSETS**                                                                                                                                           |   |                                              |           |   |
| Current                assets:                                                                                                                       |   |                                              |           |   |
| Cash                and cash equivalents                                                                                                             |   | $                                                 | 7,780,011      |   |
| Accounts                receivable                                                                                                                   |   |                                              | 69,985         |   |
| Prepaid                expenses                                                                                                                      |   |                                              | 119,882        |   |
| **Total                current assets**                                                                                                              |   |                                              | **7,969,878**  |   |
|                                                                                                                                                 |   |                                              |           |   |
| **Property                & Equipment (net) (restated)**                                                                                         |   |                                              | **382,250**    |   |
|                                                                                                                                                 |   |                                              |           |   |
| Other                Assets:                                                                                                                         |   |                                              |           |   |
| Intellectual                property (net)                                                                                                           |   |                                              | 2,543,308      |   |
| Other                assets held for sale                                                                                                            |   |                                              | 796            |   |
| **Total                other assets**                                                                                                                |   |                                              | **2,544,104**  |   |
|                                                                                                                                                 |   |                                              |           |   |
| **Total                assets (restated)**                                                                                                           |   | **$**                                             | **10,896,232** |   |
|                                                                                                                                                 |   |                                              |           |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                                              |   |                                              |           |   |
| Current                liabilities:                                                                                                                  |   |                                              |           |   |
| Current                portion - notes payable                                                                                                       |   | $                                                 | 108,661        |   |
| Accrued                interest                                                                                                                      |   |                                              | 44,226         |   |
| Accounts                payable                                                                                                                      |   |                                              | 257,223        |   |
| Accrued                expenses                                                                                                                 |   |                                              | 440,262        |   |
| Accrued                payroll                                                                                                                       |   |                                              | 78,934         |   |
| **Total                current liabilities**                                                                                                         |   |                                              | **929,306**    |   |
|                                                                                                                                                 |   |                                              |           |   |
| Note                payable                                                                                                                          |   |                                              | 554,726        |   |
| **Total                liabilities**                                                                                                                 |   |                                              | **1,484,032**  |   |
|                                                                                                                                                 |   |                                              |           |   |
| Commitments              & Contingencies                                                                                                    |   |                                              | -              |   |
|                                                                                                                                                 |   |                                              |           |   |
| Stockholders'                equity                                                                                                                  |   |                                              |           |   |
| Preferred                stock, $0.001 par value,   10,000,000 shares authorized, no                shares outstanding                |   |                                              |           |   |
| Common                stock, $0.001 par value, 190,000,000 shares authorized, 65,474,999                shares                issued and outstanding |   |                                              | 65,475         |   |
| Additional                paid-in-capital (restated)                                                                                                 |   |                                              | 30,439,145     |   |
| Accumulated                deficit (restated)                                                                                                        |   |                                              | (20,381,519    | ) |
| Accumulated                other comprehensive loss                                                                                             |   |                                              | (710,901       | ) |
| **Total                stockholders' equity (restated)**                                                                                             |   |                                              | **9,412,200**  |   |
|                                                                                                                                                 |   |                                              |           |   |
| **Total                liabilities and stockholders' equity (restated)**                                                                             |   | **$**                                             | **10,896,232** |   |

----

**PUREDEPTH,      INC. AND SUBSIDIARIES**

**(A      Development Stage Company)**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

**and      COMPREHENSIVE INCOME /(LOSS)**

**(Unaudited)**

|                                                                                |   | **Three                Months Ended****July                31,** |           |   | **Six                Months Ended****July                31,** |       |           | **Inception                to****July                31,** |   |
|-------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|----------------|--------|----------------------------------------------------------------|------------|----------------|------------------------------------------------------------|--------|
|                                                                                |   | **2006****(Restated)**                                           |           |   | **2005**                                                       |       |           | **2006****(Restated)**                                     |   |   | **2005** |   |   | **2006****(Restated)** |   |
| Net                sales                                                            |   | $                                                                | -              |   |                                                           | $          | -              |                                                       |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Cost                of goods sold                                                   |   |                                                             | -              |   |                                                           |       | -              |                                                       |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                |   |                                                             |           |   |                                                           |       |           |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                profit                                                         |   |                                                             | -              |   |                                                           |       | -              |                                                       |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                |   |                                                             |           |   |                                                           |       |           |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                expenses**                                               |   |                                                             |           |   |                                                           |       |           |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                and amortization (restated)                             |   |                                                             | 80,979         |   |                                                           |       | 82,498         |                                                       |   |   | 153,009 |   |   |   | 202,745 |   |   |   | 2,545,985 |   |
| Sales                and marketing (restated)                                       |   |                                                             | 142,012        |   |                                                           |       | 161,168        |                                                       |   |   | 995,249 |   |   |   | 353,481 |   |   |   | 4,620,004 |   |
| Professional                fees (restated)                                         |   |                                                             | 57,605         |   |                                                           |       | 29,449         |                                                       |   |   | 375,544 |   |   |   | 131,524 |   |   |   | 1,947,721 |   |
| Loss                on fixed asset disposal                                         |   |                                                             | -              |   |                                                           |       | -              |                                                       |   |   | - |   |   |   | 5,444 |   |   |   | 111,194 |   |
| General                and administrative (restated)                                |   |                                                             | 1,110,843      |   |                                                           |       | 642,313        |                                                       |   |   | 2,620,063 |   |   |   | 928,726 |   |   |   | 8,518,157 |   |
| Research                and development (restated)                                  |   |                                                             | 469,746        |   |                                                           |       | 421,616        |                                                       |   |   | 1,548,649 |   |   |   | 888,558 |   |   |   | 5,518,931 |   |
| **Total                operating expenses**(restated)                               |   | ** **                                                       | **1,861,185**  |   |                                                           | ** ** | **1,337,044**  |                                                       |   | ** ** | **5,692,514** |   |   | ** ** | **2,510,478** |   |   | ** ** | **23,261,992** |   |
|                                                                                |   |                                                             |           |   |                                                           |       |           |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                loss**(restated)                                         |   | ** **                                                       | **(1,861,185** | **)**  |                                                           | ** ** | **(1,337,044** | **)**                                                      |   | ** ** | **(5,692,514** | **)** |   | ** ** | **(2,510,478** | **)** |   | ** ** | **(23,261,992** | **)** |
|                                                                                |   |                                                             |           |   |                                                           |       |           |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| **Other                income (expense)**                                           |   |                                                             |           |   |                                                           |       |           |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest,                net                                                        |   |                                                             | (9,549         | )      |                                                           |       | (57            | )                                                          |   |   | 10,074 |   |   |   | (49,885 | ) |   |   | (942,337 | ) |
| Grant                receipts                                                       |   |                                                             | -              |   |                                                           |       | -              |                                                       |   |   | 1,850 |   |   |   | 7,324 |   |   |   | 600,605 |   |
| Foreign                exchange gain (loss)                                         |   |                                                             | 24,467         |   |                                                           |       | (3,592         | )                                                          |   |   | 49,227 |   |   |   | 79,901 |   |   |   | 448,085 |   |
| Other                income                                                         |   |                                                             | (5,669         | )      |                                                           |       | -              |                                                       |   |   | 84,230 |   |   |   | 90,797 |   |   |   | 2,758,841 |   |
| **Total                other net income (loss)**                                    |   | ** **                                                       | **9,249**      |   |                                                           | ** ** | **(3,649**     | **)**                                                      |   | ** ** | **145,381** |   |   | ** ** | **128,137** |   |   | ** ** | **2,865,194** |   |
|                                                                                |   |                                                             |           |   |                                                           |       |           |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| **Loss                before income tax**(restated)                                 |   | ** **                                                       | **(1,851,936** | **)**  |                                                           | ** ** | **(1,340,693** | **)**                                                      |   | ** ** | **(5,547,133** | **)** |   | ** ** | **(2,382,341** | **)** |   | ** ** | **(20,396,798** | **)** |
|                                                                                |   |                                                             |           |   |                                                           |       |           |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                tax provision                                                 |   |                                                             | -              |   |                                                           |       | -              |                                                       |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                |   |                                                             |           |   |                                                           |       |           |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| **Loss                from continuing operations**(restated)                        |   | ** **                                                       | **(1,851,936** | **)**  |                                                           | ** ** | **(1,340,693** | **)**                                                      |   | ** ** | **(5,547,133** | **)** |   | ** ** | **(2,382,341** | **)** |   | ** ** | **(20,396,798** | **)** |
|                                                                                |   |                                                             |           |   |                                                           |       |           |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                (loss) from discontinued operations, net of income tax        |   |                                                             | (2,368         | )      |                                                           |       | -              |                                                       |   |   | 15,279 |   |   |   | - |   |   |   | 15,279 |   |
|                                                                                |   |                                                             |           |   |                                                           |       |           |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net loss**(restated)                                                         |   | **$**                                                            | **(1,854,304** | **)**  |                                                           | **$**      | **(1,340,693** | **)**                                                      |   | **$** | **(5,531,854** | **)** |   | **$** | **(2,382,341** | **)** |   | **$** | **(20,381,519** | **)** |
|                                                                                |   |                                                             |           |   |                                                           |       |           |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                comprehensive income gain/loss                                 |   |                                                             |           |   |                                                           |       |           |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss per statement of operations(restated)                       |   | $                                                                | (1,854,304     | )      |                                                           | $          | (1,340,693     | )                                                          |   | $ | (5,531,854 | ) |   | $ | (2,382,341 | ) |   | $ | (20,381,519 | ) |
| Foreign                currency gain (loss) adjustments                             |   |                                                             | -              |   |                                                           |       | (41,807        | )                                                          |   |   | 33,132 |   |   |   | (138,206 | ) |   |   | (710,901 | ) |
|                                                                                |   |                                                             |           |   |                                                           |       |           |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                comprehensive loss (restated)                                  |   | $                                                                | (1,854,304     | )      |                                                           | $          | (1,382,500     | )                                                          |   | $ | (5,498,722 | ) |   | $ | (2,520,547 | ) |   | $ | (21,092,420 | ) |
|                                                                                |   |                                                             |           |   |                                                           |       |           |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| **Pro                forma Information for restatement:**                           |   |                                                             |           |   |                                                           |       |           |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss as previously reported                                      |   | $                                                                | (1,859,270     | )      |                                                           |       |           |                                                       |   | $ | (6,204,080 | ) |   |   |   |   |   | $ | (21,053,745 | ) |
|      Adjustment                in stock based compensation |   |                                                             |           |   |                                                           |       |           |                                                       |   |   | 601,894 |   |   |   |   |   |   |   | 601,894 |   |
|      Adjustment                in depreciation expense     |   |                                                             | 4,966          |   |                                                           |       |           |                                                       |   |   | 70,332 |   |   |   |   |   |   |   | 70,332 |   |
|                                                                                |   |                                                             |           |   |                                                           |       |           |                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                loss** (restated)                                              |   | $                                                                | (1,854,304     | )      |                                                           |       |           |                                                       |   | $ | (5,531,854 | ) |   |   |   |   |   | $ | (20,381,519 | ) |

----

**PUREDEPTH,      INC. AND SUBSIDIARIES**

**(A      Development Stage Company)**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

**and      COMPREHENSIVE INCOME /(LOSS)**

**(Unaudited)**

|                                                                   |   | **Three                Months Ended****July                31,** |       |   | **Six                Months Ended****July                31,** |   |       | **Inception                to****July                31,** |   |
|------------------------------------------------------------------------|--------|------------------------------------------------------------------|------------|--------|----------------------------------------------------------------|--------|------------|------------------------------------------------------------|--------|
|                                                                   |   | **2006****(Restated)**                                           |       |   | **2005**                                                       |   |       | **2006****(Restated)**                                     |   |   | **2005** |   |   | **2006****(Restated)** |   |
| **Basic                and diluted loss per share**                    |   |                                                             |       |   |                                                           |   |       |                                                       |   |   |   |   |   |   |   |
| Loss                from continuing operations (restated)              |   | $                                                                | (0.04      | )      |                                                           | $      | (0.04      | )                                                          |   | $ | (0.12 | ) |   | $ | (0.07 | ) |   | $ | (1.28 | ) |
| Net loss                (restated)                                |   | $                                                                | (0.04      | )      |                                                           | $      | (0.04      | )                                                          |   | $ | (0.12 | ) |   | $ | (0.07 | ) |   | $ | (1.28 | ) |
| Weighted                average shares outstanding basic & diluted |   |                                                             | 45,975,626 |   |                                                           |   | 36,319,854 |                                                       |   |   | 45,975,626 |   |   |   | 36,319,854 |   |   |   | 15,940,347 |   |

----

**PUREDEPTH,      INC. AND SUBSIDIARIES**

**(A      Development Stage Company)**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                                          |   | **Six                months ended July 31,** |           |   | **Inception                to** |       |
|---------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|----------------|--------|---------------------------------|------------|
|                                                                                                          |   | **2006**                                     |           |   | **2005**                        |       |   | **July                31, 2006** |   |
|                                                                                                          |   | **(Restated)**                               |           |   |                            |       |   | **(Restated)** |   |
| **Cash                flows from operating activities:**                                                      |   |                                         |           |   |                            |       |   |   |   |
| Net loss                                                                                                 |   | $                                            | (5,531,854     | )      |                            | $          | (2,382,341 | ) |   | $ | (20,381,519 | ) |
| Adjustments                to reconcile net loss to net cash provided by operating                activities: |   |                                         |           |   |                            |       |   |   |   |   |   |   |
| Depreciation                and amortization                                                                  |   |                                         | 153,009        |   |                            |       | 202,745 |   |   |   | 2,545,985 |   |
| Stock-based                compensation expense                                                               |   |                                         | 2,539,644      |   |                            |       | 632,032 |   |   |   | 5,150,100 |   |
| Non-cash                interest expense                                                                      |   |                                         | 25,692         |   |                            |       | 68,978 |   |   |   | 170,782 |   |
| Loss                on disposal of fixed assets                                                               |   |                                         | -              |   |                            |       | 5,444 |   |   |   | 111,194 |   |
| Foreign                exchange (gain)                                                                        |   |                                         | (34,888        | )      |                            |       | (79,901 | ) |   |   | (433,746 | ) |
| Changes                in operating assets and liabilities:                                                   |   |                                         |           |   |                            |       |   |   |   |   |   |   |
| (Increase)                decrease in accounts receivable, trade                                              |   |                                         | 2,010          |   |                            |       | 35,382 |   |   |   | (69,985 | ) |
| (Increase)                decrease in prepayments                                                             |   |                                         | (66,393        | )      |                            |       | 51,667 |   |   |   | (119,877 | ) |
| Increase (decrease)                in accounts payable                                                   |   |                                         | (38,084        | )      |                            |       | (38,063 | ) |   |   | 254,292 |   |
| Increase                (decrease) in other payables & accruals                                           |   |                                         | 440,126        |   |                            |       | (124,471 | ) |   |   | 554,481 |   |
| Increase (decrease)                in accrued interest                                                   |   |                                         | 13,396         |   |                            |       | 1,546 |   |   |   | 18,534 |   |
| **Net                cash used in operating activities**                                                      |   | ** **                                   | **(2,497,342** | **)**  |                            | ** ** | **(1,626,982** | **)** |   | ** ** | **(12,199,759** | **)** |
|                                                                                                          |   |                                         |           |   |                            |       |   |   |   |   |   |   |
| **Cash                flows from investing activities:**                                                      |   |                                         |           |   |                            |       |   |   |   |   |   |   |
| Payments                for purchases of fixed assets                                                         |   |                                         | (234,979       | )      |                            |       | (153,218 | ) |   |   | (1,298,674 | ) |
| Expenditures                - intellectual property                                                           |   |                                         | (132,358       | )      |                            |       | (81,692 | ) |   |   | (3,019,807 | ) |
| **Net                cash used in investing activities**                                                      |   | ** **                                   | **(367,337**   | **)**  |                            | ** ** | **(234,910** | **)** |   | ** ** | **(4,318,481** | **)** |
|                                                                                                          |   |                                         |           |   |                            |       |   |   |   |   |   |   |
| **Cash                flows from financing activities:**                                                      |   |                                         |           |   |                            |       |   |   |   |   |   |   |
| Proceeds                from issuance of common stock, net                                                    |   |                                         | -              |   |                            |       | - |   |   |   | 9,002,652 |   |
| Proceeds                from issuance of Series A preferred stock, net                                        |   |                                         | 4,227,472      |   |                            |       | - |   |   |   | 4,227,472 |   |
| Proceeds                from conversion of B Warrants, net                                                    |   |                                         | 5,558,543      |   |                            |       | - |   |   |   | 5,558,543 |   |
| Issuance                of related party note payable                                                         |   |                                         | -              |   |                            |       | 1,753,250 |   |   |   | 6,229,806 |   |
| Principal                payments on note payable                                                             |   |                                         | (23,136        | )      |                            |       | - |   |   |   | (617,576 | ) |
| **Net                cash provided by financing activities**                                                  |   | ** **                                   | **9,762,879**  |   |                            | ** ** | **1,753,250** |   |   | ** ** | **24,400,897** |   |
|                                                                                                          |   |                                         |           |   |                            |       |   |   |   |   |   |   |
| Effect                of exchange rate changes on cash and cash equivalents                                   |   |                                         | 23,813         |   |                            |       | 69,255 |   |   |   | (102,646 | ) |
|                                                                                                          |   |                                         |           |   |                            |       |   |   |   |   |   |   |
| **Net                increase in cash and cash equivalents**                                             |   | ** **                                   | **6,922,013**  |   |                            | ** ** | **(39,387** | **)** |   | ** ** | **7,780,011** |   |
|                                                                                                          |   |                                         |           |   |                            |       |   |   |   |   |   |   |
| Cash                and cash equivalents at beginning of period                                               |   |                                         | 857,998        |   |                            |       | 114,817 |   |   |   | - |   |
| **Cash                and cash equivalents at end of period**                                                 |   | **$**                                        | **7,780,011**  |   |                            | **$**      | **75,430** |   |   | **$** | **7,780,011** |   |
|                                                                                                          |   |                                         |           |   |                            |       |   |   |   |   |   |   |
| **Supplemental                cash information:**                                                        |   |                                         |           |   |                            |       |   |   |   |   |   |   |
| Notes                and accrued interest converted to stock                                                  |   | $                                            | 774,330        |   |                            | $          | 2,704,784 |   |   | $ | 5,598,620 |   |
| Cash                paid for interest                                                                         |   | $                                            | 2,491          |   |                            | $          | 769 |   |   | $ | 851,071 |   |
| Cash                paid for income taxes                                                                     |   | $                                            | -              |   |                            | $          | - |   |   | $ | - |   |
| Purchase                of intellectual property via issuance of note                payable             |   | $                                            | -              |   |                            | $          | - |   |   | $ | 1,257,929 |   |
| Warrants                issued for stock issuance costs (restated)                                            |   | $                                            | 1,840,779      |   |                            | $          | - |   |   | $ | 1,840,779 |   |

----

**PUREDEPTH,      INC. AND SUBSIDIARIES**

**(A      Development Stage Company)**

**NOTES      TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL      STATEMENTS**

**Note      1 - Basis of Presentation**

**Note      2 – Restatement**

*Restatements*

----

*Reclassifications*

|                                           |   | **Three                months ended July 31, 2005** |       |   | **Six                months ended July 31,****2005** |   |
|------------------------------------------------|--------|-----------------------------------------------------|------------|--------|------------------------------------------------------|--------|
|                                           |   | **As****reported**                                  |       |   | **change**                                           |   |   | **As                reclassified** |   |   | **As****reported** |   |   | **change** |   |   | **As                reclassified** |   |
| **Selected                Operating Expenses** |   |                                                |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                and amortization   |   | $                                                   | 82,498     |   |                                                 | $      | 0 |   |   | $ | 82,498 |   |   | $ | 202,745 |   |   | $ | 0 |   |   | $ | 202,745 |   |
| Sales                and marketing             |   |                                                | 182,144    |   |                                                 |   | (20,976 | ) |   |   | 161,168 |   |   |   | 364,395 |   |   |   | (10,914 | ) |   |   | 353,481 |   |
| Professional                fees               |   |                                                | 29,449     |   |                                                 |   | 0 |   |   |   | 29,449 |   |   |   | 131,524 |   |   |   | 0 |   |   |   | 131,524 |   |
| Fixed                asset disposals           |   |                                                | 0          |   |                                                 |   | 0 |   |   |   | 0 |   |   |   | 5,444 |   |   |   | 0 |   |   |   | 5,444 |   |
| General                and administrative      |   |                                                | 715,569    |   |                                                 |   | (73,256 | ) |   |   | 642,313 |   |   |   | 1,045,836 |   |   |   | (117,110 | ) |   |   | 928,726 |   |
| Research                and development        |   |                                                | 327,384    |   |                                                 | $      | 94,232 |   |   |   | 421,616 |   |   | $ | 760,534 |   |   |   | 128,024 |   |   | $ | 888,558 |   |
|                                           |   |                                                |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Loss                from Operations**        |   |                                                | (1,337,044 | )      |                                                 |   | 0 |   |   |   | (1,337,044 | ) |   |   | (2,510,478 | ) |   |   | 0 |   |   |   | (2,510,478 | ) |
|                                           |   |                                                |       |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                effect of Changes           |   |                                                |       |   |                                                 |   | 0 |   |   |   |   |   |   |   |   |   |   |   | 0 |   |   |   |   |   |

|                                           |   | **Inception                to July 31, 2006** |        |
|------------------------------------------------|--------|-----------------------------------------------|-------------|
|                                           |   | **As****reported**                            |        |   | **reclassified** |   |   | **restatement** |   |   | **As****restated** |   |
| **Selected                Operating Expenses** |   |                                          |        |   |   |   |   |   |   |   |
| Depreciation                and amortization   |   | $                                             | 2,573,423   |   |   | $ | 42,894 |   |   | $ | (70,332 | ) |   | $ | 2,545,985 |   |
| Sales                and marketing             |   |                                          | 2,082,016   |   |   |   | 2,609,508 |   |   |   | (71,520 | ) |   |   | 4,620,004 |   |
| Professional                fees               |   |                                          | 1,980,496   |   |   |   | (32,775 | ) |   |   | 0 |   |   |   | 1,947,721 |   |
| Fixed                asset disposals           |   |                                          | 111,194     |   |   |   | 0 |   |   |   | 0 |   |   |   | 111,194 |   |
| General                and administrative      |   |                                          | 13,724,185  |   |   |   | (4,758,298 | ) |   |   | (447,730 | ) |   |   | 8,518,157 |   |
| Research                and development        |   |                                          | 3,462,904   |   |   |   | 2,138,671 |   |   |   | (82,644 | ) |   |   | 5,518,931 |   |
|                                           |   |                                          |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Loss                from Operations**        |   |                                          | (23,934,218 | ) |   |   | 0 |   |   |   | (672,226 | ) |   |   | (23,261,992 | ) |
|                                           |   |                                          |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Grant                receipts                  |   |                                          | 682,625     |   |   |   | (82,020 | ) |   |   | 0 |   |   |   | 600,605 |   |
| Other                income                    |   |                                          | 2,676,821   |   |   |   | 82,020 |   |   |   | 0 |   |   |   | 2,758,841 |   |
|                                           |   |                                          |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                effect of Changes           |   |                                          |        |   |   |   | 0 |   |   |   | (672,226 | ) |   |   |   |   |

----

**Note      3 -Description of Business**

*The      Company - Description of Business*

*Accounting and Reporting by      Development Stage Enterprises*

**Note      4 – Merger**

* *

----

*Business Combinations in which *

|                                                         |   | Six months                ended July 31, |       |
|--------------------------------------------------------------|--------|-----------------------------------------------|------------|
|                                                         |   | 2006                                          |       |   | 2005 |   |
| Net                Sales                                     |   | $                                             | -          |   |   | $ | - |   |
| Operating                loss                                |   |                                          | (5,692,514 | ) |   |   | (2,510,478 | ) |
| Other                income (expense)                        |   |                                          | 145,381    |   |   |   | 128,137 |   |
| Income                from discontinued operations           |   |                                          | 15,279     |   |   |   | (26,642 | ) |
| Pro-forma                net loss (restated)                 |   |                                          | (5,531,854 | ) |   |   | (2,408,983 | ) |
| Pro-forma                net loss per share *                |   | $                                             | (0.12      | ) |   | $ | (0.07 | ) |
| Pro-forma                weighted average shares outstanding |   |                                          | 45,975,626 |   |   |   | 36,319,854 |   |

|   | * | Pro-forma                net loss per share is computed as if all preferred shares are converted                as                of the beginning of the period. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Note      5 – Discontinued Operations**

*Divestiture      of Former Business*

**Note      6 - Stockholder’s Equity**

----

**Note      7 - Stock Option Plan**

----

|   **Options**                           |   |   **Shares** |       |   | **Weighted-****Average****Exercise****Price** |   |
|---------------------------------------------------|--------|------------------------|------------|--------|-----------------------------------------------|--------|
| Outstanding                at beginning of period |   |                   | 12,450,570 |   |                                          | $      | 0.28 |   |
| Granted                                           |   |                   | -          |   |                                          | $      | - |   |
| Exercised                                         |   |                   | -          |   |                                          | $      | - |   |
| Forfeited                or expired               |   |                   | -          |   |                                          | $      | - |   |
| Outstanding                at July 31, 2006       |   |                   | 12,450,570 |   |                                          | $      | 0.28 |   |
| Exercisable                at July 31, 2006       |   |                   | 12,450,570 |   |                                          | $      | 0.28 |   |

|                                       |   |   | **Stock                Options Outstanding** |       |   | **Stock                Options Exercisable**                                          |   |
|--------------------------------------------|--------|--------|----------------------------------------------|------------|--------|---------------------------------------------------------------------------------------|--------|
| **Range                of Exercise Price** |   |   | **Number****Outstanding**                    |       |   | **Weighted****Average****Remaining****Contractual****Life                (In Years)** |   |   | **Weighted****Average****Exercise****Price                per****Share** |   |   | **Aggregate****Intrinsic****Value                ($000)** |   |   | **Number****Exercisable** |   |   | **Weighted****Average****Exercise****Price                per****Share** |   |   | **Aggregate****Intrinsic****Value                ($000)** |   |
|  $0.28                - $0.44         |   |   |                                         | 12,450,570 |   |                                                                                  |   | 6.2 |   |   |   | $0.28 |   |   |   | $23,282 |   |   |   | 12,450,570 |   |   |   | $0.28 |   |   |   | $23,282 |   |

*Stock      Compensation*

----

**Note      8 - Income Taxes**

**Note      9 - Related Party Transactions**

**Note      10 - Subsequent Events**

----

**SIGNATURES**

|                                         |                                                                            |                                     |
|----------------------------------------------|---------------------------------------------------------------------------------|------------------------------------------|
|                                         | PUREDEPTH,                INC.                                                  |
|                                    |                                                                       |                                |
| Date: September                12, 2007 | By:                                                                   | /s/ Thomas                L. Marcus |
|                                         | Thomas                L. Marcus*Interim                Chief Executive Officer* |

|         |                                                                                                                                                         |                                        |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------|
|    |                                                                                                                                                    |                                   |
|         | By:                                                                                                                                                | /s/ Jonathan                J. McCaman |
|         | Jonathan                J. McCaman                *Chief                  Financial Officer and**Chief                  Accounting                  Officer* |

**Index      to Exhibits Filed with this Report**

| (a)                Exhibits |                                                                                                                                                                                        |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        |                                                                                                                                                                                        |
| Exhibit                No.  | Description                                                                                                                                                                                 |
|                        |                                                                                                                                                                                        |
| 31.1                        | Certification                of Chief Executive Officer                                                                                                                                     |
| 31.2                        | Certification                of Chief Financial Officer                                                                                                                                     |
| 32.1                        | Certification                of Chief Executive Officer and Chief Financial Officer pursuant to                Section                906 of the Sarbanes-Oxley Act of                2002. |