----

----

**U.      S. SECURITIES AND EXCHANGE COMMISSION**

**Washington,      DC 20549**

----

**FORM        10-QSB**

----

**QUARTERLY        REPORT UNDER SECTION 13 OR 15 (d) OF THE**

**SECURITIES        EXCHANGE ACT OF 1934**

**March 31, 2007**

**333-90738**

**Biomoda,        Inc.**

| **New                  Mexico**           |   | **85-0392345**                                     |
|-------------------------------------------|--------|----------------------------------------------------|
| (State                  of incorporation) |   | (IRS                  Employer Identification No.) |

**8301        Washington NE, Suite 6, Albuquerque, New Mexico 87113**

**(505) 821-0875**

----

----

----

Table            of Contents

**TABLE        OF CONTENTS**

|                            |                                                                                              | **Page** |
|---------------------------------|---------------------------------------------------------------------------------------------------|----------|
| **PART                    I.**  | **Financial                    Information**                                                      |     |
|                            |                                                                                              |     |
| Item                    1.      | Consolidated                    Financial Statements                                              | 4        |
|                            |                                                                                              |     |
| Item                    2.      | Management's                    Discussion and Analysis or Plan of                    Operation   | 9        |
|                            |                                                                                              |     |
| Item                    3.      | Controls                    and Procedures                                                        | 11       |
|                            |                                                                                              |     |
| **PART                    II.** | **Other                    Information**                                                          |     |
|                            |                                                                                              |     |
| Item                    1.      | Legal                    Proceedings                                                              | 12       |
|                            |                                                                                              |     |
| Item                    2.      | Unregistered                    Sales of Equity Securities and Use of                    Proceeds | 12       |
|                            |                                                                                              |     |
| Item                    3.      | Defaults                    Upon Senior Securities                                                | 12       |
|                            |                                                                                              |     |
| Item                    4.      | Submission                    of Matters to a Vote of Security                    Holders         | 12       |
|                            |                                                                                              |     |
| Item                    5.      | Other                    Information                                                              | 12       |
|                            |                                                                                              |     |
| Item                    6.      | Exhibits                                                                                          | 12       |
|                            |                                                                                              |     |
| Signatures                      |                                                                                              | 13       |

----

Table            of Contents

**PART        I: FINANCIAL INFORMATION**

----

Table              of Contents

Item

**BIOMODA,            INC. AND SUBSIDIARY**

**(A            DEVELOPMENT STAGE COMPANY)**

**CONSOLIDATED            BALANCE SHEETS**

**(UNAUDITED)**

|                                                                                                                                                                                                                                                                                                                     |  **March                      31, 2007** |       | **December                      31, 2006** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------|------------|--------------------------------------------|--------|
| **ASSETS**                                                                                                                                                                                                                                                                                                               |
| Current                      Assets                                                                                                                                                                                                                                                                                      |                                          |       |                                       |   |   |   |
| Cash                                                                                                                                                                                                                                                                                                                     | $                                             | 981        |                                       | $      | 116 |   |
| Prepaid                      expenses                                                                                                                                                                                                                                                                                    |                                          | 3,241      |                                       |   | 3,241 |   |
| Total                      Current Assets                                                                                                                                                                                                                                                                                |                                          | 4,222      |                                       |   | 3,357 |   |
|                                                                                                                                                                                                                                                                                                                     |                                          |       |                                       |   |   |   |
| Patents,                      net of accumulated amortization of $93,168 and $88,717                                                                                                                                                                                                                                     |                                          | 231,490    |                                       |   | 234,140 |   |
|                                                                                                                                                                                                                                                                                                                     |                                          |       |                                       |   |   |   |
| Property                      and Equipment, net of accumulated depreciation of $10,360 and                      $9,621                                                                                                                                                                                                  |                                          | 5,684      |                                       |   | 6,424 |   |
|                                                                                                                                                                                                                                                                                                                     |                                          |            |                                       |   |  |   |
|                                                                                                                                                                                                                                                                                                                     | $                                             | 241,396    |                                       | $      | 243,921 |   |
|                                                                                                                                                                                                                                                                                                                     |                                          |       |                                       |   |   |   |
|                                                                                                                                                                                                                                                                                                                     |                                          |       |                                       |   |   |   |
| **LIABILITIES                      AND STOCKHOLDERS' DEFICIT**                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                     |                                          |       |                                       |   |   |   |
| Current                      Liabilities                                                                                                                                                                                                                                                                                 |                                          |       |                                       |   |   |   |
| Accounts                      payable and accrued liabilities                                                                                                                                                                                                                                                            | $                                             | 626,736    |                                       | $      | 580,050 |   |
| Common                      stock payable                                                                                                                                                                                                                                                                                |                                          | 15,750     |                                       |   | 45,750 |   |
| Advances                      from stockholders                                                                                                                                                                                                                                                                          |                                          | 168,997    |                                       |   | 164,842 |   |
| Line                      of credit from an affiliated entity                                                                                                                                                                                                                                                            |                                          | 2,091,928  |                                       |   | 1,318,623 |   |
| Total                      Current Liabilities                                                                                                                                                                                                                                                                           |                                          | 2,903,411  |                                       |   | 2,109,265 |   |
|                                                                                                                                                                                                                                                                                                                     |                                          |       |                                       |   |   |   |
| Commitments                      and Contingencies                                                                                                                                                                                                                                                                       |                                          |       |                                       |   |   |   |
|                                                                                                                                                                                                                                                                                                                     |                                          |       |                                       |   |   |   |
| Stockholders'                      Deficit                                                                                                                                                                                                                                                                               |                                          |       |                                       |   |   |   |
| Class                      A redeemable preferred stock; no par value 2,000,000shares                      authorized; cumulative and  convertible;                      liquidation and redemption values of                      $1.50 and $1.80 per share; no shares issued and                      outstanding |                                          | -          |                                       |   | - |   |
| Undesignated                      preferred stock; 2,000,000 shares authorized;                      no shares issued and outstanding                                                                                                                                                                                    |                                          | -          |                                       |   | - |   |
| Common                      stock, no par value, 100,000,000 shares                                                                                                                                                                                                                                                      |                                          |       |                                       |   |   |   |
| authorized;                      9,931,039 and 9,086,253 issued and outstanding                                                                                                                                                                                                                                          |                                          | 3,950,972  |                                       |   | 3,052,213 |   |
| Treasury                      stock                                                                                                                                                                                                                                                                                      |                                          | (9,000     | )                                          |   | (9,000 | ) |
| Deficit                      accumulated during development stage                                                                                                                                                                                                                                                        |                                          | (6,603,987 | )                                          |   | (4,908,557 | ) |
|                                                                                                                                                                                                                                                                                                                     |                                          |       |                                       |   |   |   |
| Total                      Stockholders' Deficit                                                                                                                                                                                                                                                                         |                                          | (2,662,015 | )                                          |   | (1,865,344 | ) |
|                                                                                                                                                                                                                                                                                                                     |                                          |            |                                       |   |  |   |
|                                                                                                                                                                                                                                                                                                                     | $                                             | 241,396    |                                       | $      | 243,921 |   |

----

Table              of Contents

**BIOMODA,              INC. AND SUBSIDIARY**

**(A              DEVELOPMENT STAGE COMPANY)**

**CONSOLIDATED              STATEMENTS OF OPERATIONS**

**(UNAUDITED)**

|                                                                                                      |   |                                                   |       |     |   | **January                      3, 1990 (Inception) to March 31, 2007** |   |
|-----------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|------------|----------|--------|------------------------------------------------------------------------|--------|
|                                                                                                      |   |  **Three                      Months Ended March 31,** |       |
|                                                                                                      |   |  **2007**                                              |       | **2006** |   |
|                                                                                                      |   |                                                        |       |     |   |                                                                   |   |   |   |   |
| Revenue                                                                                                   |   | $                                                           | -          |     | $      | -                                                                      |   | $ | 23 |   |
|                                                                                                      |   |                                                        |       |     |   |                                                                   |   |   |   |   |
| Operating                      expenses                                                                   |   |                                                        |       |     |   |                                                                   |   |   |   |   |
| Professional                      fees                                                                    |   |                                                        | 89,300     |     |   | 13,500                                                                 |   |   | 840,794 |   |
| General                      and administrative                                                           |   |                                                        | 1,109,888  |     |   | 113,582                                                                |   |   | 2,522,298 |   |
| Licensing                      fees                                                                       |   |                                                        | 50         |     |   | -                                                                      |   |   | 134,843 |   |
| Research                      and development                                                             |   |                                                        | 471,807    |     |   | 112,278                                                                |   |   | 2,658,450 |   |
| Depreciation                      and amortization                                                        |   |                                                        | 5,189      |     |   | 4,847                                                                  |   |   | 106,640 |   |
| Total                      Operating Expenses                                                             |   |                                                        | 1,676,234  |     |   | 244,207                                                                |   |   | 6,263,025 |   |
|                                                                                                      |   |                                                        |       |     |   |                                                                   |   |   |   |   |
| Loss                      from continuing operations                                                      |   |                                                        | (1,676,234 | )        |   | (244,207                                                               | )      |   | (6,263,002 | ) |
|                                                                                                      |   |                                                        |       |     |   |                                                                   |   |   |   |   |
| Other                      income (expense)                                                               |   |                                                        |       |     |   |                                                                   |   |   |   |   |
| Gain                      on forgiveness of debt                                                          |   |                                                        | -          |     |   | -                                                                      |   |   | 53,035 |   |
| Interest                      income                                                                      |   |                                                        | -          |     |   | -                                                                      |   |   | 3,870 |   |
| Interest                      expense                                                                     |   |                                                        | (19,196    | )        |   | (24,556                                                                | )      |   | (397,890 | ) |
| Total                      Other Expenses                                                                 |   |                                                        | (19,196    | )        |   | (24,556                                                                | )      |   | (340,985 | ) |
|                                                                                                      |   |                                                        |       |     |   |                                                                   |   |   |   |   |
| Net                      loss                                                                             |   | $                                                           | (1,695,430 | )        | $      | (268,763                                                               | )      | $ | (6,603,987 | ) |
|                                                                                                      |   |                                                        |       |     |   |                                                                   |   |   |   |   |
| Basic                      and diluted weighted average number of shares                      outstanding |   |                                                        | 9,476,126  |     |   | 7,187,282                                                              |   |   |   |   |
|                                                                                                      |   |                                                        |       |     |   |                                                                   |   |   |   |   |
| Basic                      and diluted loss per common share                                              |   | $                                                           | (0.18      | )        | $      | (0.04                                                                  | )      |   |   |   |

----

Table              of Contents

**BIOMODA,            INC. AND SUBSIDIARY**

**(A            DEVELOPMENT STAGE COMPANY)**

**CONSOLIDATED            STATEMENTS OF CASH FLOWS**

**(UNAUDITED)**

|                                                                        |                                                  |       |     |   | **January                      3, 1990 (Inception) to****March                      31, 2007** |   |
|-----------------------------------------------------------------------------|-------------------------------------------------------|------------|----------|--------|------------------------------------------------------------------------------------------------|--------|
|                                                                        | **Three                      Months Ended March 31,** |       |
|                                                                        | **2007**                                              |       | **2006** |   |
| NET                      CASH FLOWS FROM OPERATING ACTIVITIES               |                                                  |       |     |   |                                                                                           |   |   |   |   |
|                                                                        |                                                  |       |     |   |                                                                                           |   |   |   |   |
| Net                      loss                                               | $                                                     | (1,695,430 | )        | $      | (268,763                                                                                       | )      | $ | (6,603,987 | ) |
| Adjustments                      to reconcile net loss to                   |                                                  |       |     |   |                                                                                           |   |   |   |   |
| net                      cash used in operating activities:                 |                                                  |       |     |   |                                                                                           |   |   |   |   |
| Stock                      options expense                                  |                                                  | 1,491      |     |   | 3,250                                                                                          |   |   | 183,533 |   |
| Issuance                      of common stock for services                  |                                                  | 792,500    |     |   | -                                                                                              |   |   | 1,536,471 |   |
| Issuance                      of common stock for bonuses to employees      |                                                  | -          |     |   | -                                                                                              |   |   | 17,250 |   |
| Loss                      on sale of assets                                 |                                                  | -          |     |   | -                                                                                              |   |   | 358 |   |
| Foreign                      currency transactions                          |                                                  | -          |     |   | -                                                                                              |   |   | 3,247 |   |
| Non-cash                      gain on debt settlement                       |                                                  | -          |     |   | -                                                                                              |   |   | (11,171 | ) |
| Depreciation                      and amortization                          |                                                  | 5,191      |     |   | 4,847                                                                                          |   |   | 106,642 |   |
| Changes                      in operating assets and liabilities:           |                                                  |       |     |   |                                                                                           |   |   |   |   |
| Accounts                      receivable                                    |                                                  | -          |     |   | -                                                                                              |   |   | (7,620 | ) |
| Other                      assets                                           |                                                  | -          |     |   | 3,195                                                                                          |   |   | 4,379 |   |
| Bank                      overdraft                                         |                                                  | -          |     |   | 14,961                                                                                         |   |   | - |   |
| Accounts                      payable and accrued liabilities               |                                                  | 46,686     |     |   | 100,435                                                                                        |   |   | 748,758 |   |
| Net                      cash flows used in operating activities            |                                                  | (849,562   | )        |   | (142,075                                                                                       | )      |   | (4,022,140 | ) |
|                                                                        |                                                  |       |     |   |                                                                                           |   |   |   |   |
| CASH                      FLOWS FROM INVESTING ACTIVITIES                   |                                                  |       |     |   |                                                                                           |   |   |   |   |
| Purchase                      of property and equipment                     |                                                  | -          |     |   | -                                                                                              |   |   | (24,179 | ) |
| Sale                      of property and equipment                         |                                                  | -          |     |   | -                                                                                              |   |   | 1,139 |   |
| Investment                      in restricted cash                          |                                                  | -          |     |   | (30,000                                                                                        | )      |   | - |   |
| Organizational                      costs                                   |                                                  | -          |     |   | -                                                                                              |   |   | (560 | ) |
| Patent,                      trademark and license fee                      |                                                  | (1,801     | )        |   | -                                                                                              |   |   | (324,658 | ) |
| Net                      cash flows used in investing activities            |                                                  | (1,801     | )        |   | (30,000                                                                                        | )      |   | (348,258 | ) |
|                                                                        |                                                  |       |     |   |                                                                                           |   |   |   |   |
| CASH                      FLOWS FROM FINANCING ACTIVITIES                   |                                                  |       |     |   |                                                                                           |   |   |   |   |
| Proceeds                      from stockholders' advances                   |                                                  | 4,155      |     |   | 3,756                                                                                          |   |   | 129,587 |   |
| Proceeds                      from line of credit from an affiliated entity |                                                  | 847,073    |     |   | 168,295                                                                                        |   |   | 3,228,597 |   |
| Repayments                      on line of credit from an affiliated entity |                                                  | -          |     |   | -                                                                                              |   |   | (62,901 | ) |
| Purchase                      of treasury stock                             |                                                  | -          |     |   | -                                                                                              |   |   | (9,000 | ) |
| Issuance                      of common stock for cash                      |                                                  | 1,000      |     |   | -                                                                                              |   |   | 1,085,096 |   |
| Net                      cash flows provided by financing activities        |                                                  | 852,228    |     |   | 172,051                                                                                        |   |   | 4,371,379 |   |
|                                                                        |                                                  |       |     |   |                                                                                           |   |   |   |   |
| Net                      (decrease) increase in cash                        |                                                  | 865        |     |   | (24                                                                                            | )      |   | 981 |   |
|                                                                        |                                                  |       |     |   |                                                                                           |   |   |   |   |
| Cash,                      beginning of period                              |                                                  | 116        |     |   | 24                                                                                             |   |   | - |   |
|                                                                        |                                                  |       |     |   |                                                                                           |   |   |   |   |
| Cash,                      end of period                                    | $                                                     | 981        |     | $      | -                                                                                              |   | $ | 981 |   |

| Supplemental                          disclosure of cash flow information - |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Cash                          paid during the year for:                     |   |   |   |   |   |   |   |   |   |
| Interest                                                                    | $      | -      |   | $      | -      |   | $      | -      |   |
| Income                          taxes                                       | $      | -      |   | $      | -      |   | $      | -      |   |

----

Table              of Contents

**BIOMODA,            INC.**

**(A            Development Stage Company)**

**NOTES            TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

----

Table              of Contents

**BIOMODA,          INC.**

**(A          Development Stage Company)**

**NOTES          TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

----

Table              of Contents

Item

**COMPANY          OVERVIEW**

**PLAN          OF OPERATION**

----

Table              of Contents

**RESULTS          OF OPERATIONS**

**LIQUIDITY          AND CAPITAL RESOURCES**

----

Table              of Contents

**INFLATION**

ITEM

**CHANGES          IN CONTROLS AND PROCEDURES**

**LIMITATIONS          ON THE EFFECTIVENESS OF INTERNAL CONTROL**

----

Table              of Contents

**PART          II.  OTHER INFORMATION**

Item

Item

Item

Item

OTHER 

EXHIBITS

----

Table              of Contents

**SIGNATURES**

|                                      |                                                                   |                                                                                                                                                                                                                                                                                                                                                              |
|-------------------------------------------|------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                      | **BIOMODA,                  INC. and Subsidiary**                      |
|                                 |                                                              |                                                                                                                                                                                                                                                                                                                                                         |
| Dated: May                  15, 2007 | By:                                                          | /s/                  John J.                  Cousins                                                                  |
|                                      | John J. Cousins                                                        |
|                                      | President(Principal                  Executive and Accounting Officer) |

----

Table            of Contents