| x      | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|--------|----------------------------------------------------------------------------------------------------|
|   |                                                                                               |
|   | For the quarterly period ended March 31, 2010                                                      |
|   |                                                                                               |
|   | or                                                                                                 |
|   |                                                                                               |
| o      | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|   | For the transition period from          to         |
|--------|-------------------------------------------------------------------------------------------------------------------------------|

| MINNESOTA(State of incorporation) |   | 41-1618036(I.R.S. Employer Identification No.) |
|-----------------------------------|--------|------------------------------------------------|

|   | Large accelerated filer  |   | Accelerated filer   |
|--------|----------------------------------|--------|----------------------------------|
|   | Non-accelerated filer    |   | Smaller reporting company x |

|   | YES  NO x |
|--------|-------------------|

----

|     |                                                                                                    | Page No |
|----------|---------------------------------------------------------------------------------------------------------|---------|
|     |                                                                                                    |    |
| PART I.  | FINANCIAL INFORMATION:                                                                                  |    |
|     |                                                                                                    |    |
| Item 1.  | Financial Statements                                                                                    |    |
|     |                                                                                                    |    |
|     | Balance Sheets – March 31, 2010 (unaudited) and June 30, 2009                                     | 4       |
|     |                                                                                                    |    |
|     | Statements of Operations (unaudited) – Three Months and Nine Months Ended March 31, 2010 and 2009 | 5       |
|     |                                                                                                    |    |
|     | Statements of Cash Flows (unaudited) – Nine Months Ended March 31, 2010 and 2009                  | 6       |
|     |                                                                                                    |    |
|     | Notes to Financial Statements                                                                           | 7       |
|     |                                                                                                    |    |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations             | 10      |
|     |                                                                                                    |    |
| Item 4T. | Controls and Procedures                                                                                 | 18      |
|     |                                                                                                    |    |
| PART II. | OTHER INFORMATION:                                                                                      |    |
|     |                                                                                                    |    |
| Item 6.  | Exhibits                                                                                                | 18      |
|     |                                                                                                    |    |
|     | SIGNATURES                                                                                              | 19      |
|     |                                                                                                    |    |
|     | CERTIFICATIONS                                                                                          | 20      |
|     |                                                                                                    |    |

----

----

|                                                                                                                                                                                                              |   |   | March 31,                                June 30, |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                              |   |   | 2010                                                                                                                                                                                                    |   | 2009 |
| Assets                                                                                                                                                                                                            |   |   |                                                                                                                                                                                                    |   |   |
| Current Assets:                                                                                                                                                                                                   |   |   |                                                                                                                                                                                                    |   |   |
|    Cash and cash equivalents                                                                                                                                                                       |   |   |      $       942,976                                                                                                                        |   |  $       697,918 |
|    Accounts receivable                                                                                                                                                                             |   |   |               4,885                                                                                                               |   |             42,500 |
|    Inventory, net                                                                                                                                                                                  |   |   |           288,587                                                                                                                                     |   |           278,873 |
|    Prepaid and other current assets                                                                                                                                                                |   |   |               7,921                                                                                                               |   |               3,237 |
|                Total Current Assets                                                                                                    |   |   |        1,244,369                                                                                                                                                     |   |        1,022,528 |
|                                                                                                                                                                                                              |   |   |                                                                                                                                                                                                    |   |   |
| Property and Equipment:                                                                                                                                                                                           |   |   |                                                                                                                                                                                                    |   |   |
|    Leasehold improvements                                                                                                                                                                          |   |   |             17,202                                                                                                                          |   |             17,202 |
|    Furniture and equipment                                                                                                                                                                         |   |   |           172,052                                                                                                                                     |   |           172,052 |
|    Computer & electronic equipment                                                                                                                                                             |   |   |           580,324                                                                                                                                     |   |           580,324 |
|    Equipment rental units                                                                                                                                                                          |   |   |           162,351                                                                                                                                     |   |           162,351 |
| Total Property and Equipment                                                                                                                                                                                      |   |   |           931,929                                                                                                                                |   |           931,929 |
|    Less accumulated depreciation and amortization                                                                                                                                                  |   |   |          (930,274)                                                                                                                                         |   |          (928,200) |
|                Property and Equipment, net                                                                                             |   |   |               1,655                                                                                                               |   |               3,729 |
|                                                                                                                                                                                                              |   |   |                                                                                                                                                                                                    |   |   |
| Other Assets                                                                                                                                                                                                      |   |   |               6,530                                                                                                               |   |               6,530 |
|                Total Assets                                                                                                            |   |   |  $    1,252,554                                                                                                                                                                |   |  $    1,032,787 |
|                                                                                                                                                                                                              |   |   |                                                                                                                                                                                                    |   |   |
| Liabilities and Shareholders' Equity / (Deficit)                                                                                                                                                                  |   |   |                                                                                                                                                                                                    |   |   |
| Current Liabilities:                                                                                                                                                                                              |   |   |                                                                                                                                                                                                    |   |   |
|    Accounts payable                                                                                                                                                                                |   |   |  $            8,480                                                                                                                    |   |  $          16,343 |
|    Accrued vacation, payroll and payroll taxes                                                                                                                                                     |   |   |            101,903                                                                                                                               |   |              47,579 |
|    Deferred revenue                                                                                                                                                                                |   |   | 71,755                                                                                                                                                                                                  |   |         48,246  |
|    Deposits from customers                                                                                                                                                                         |   |   |        44,012                                                                                                                                                        |   |             970  |
|    Other accrued expenses                                                                                                                                                                          |   |   |              20,628                                                                                                                    |   |                6,746 |
|                Total Current Liabilities                                                                                               |   |   |            246,778                                                                                                                               |   |             119,884 |
|                                                                                                                                                                                                              |   |   |                                                                                                                                                                                                    |   |   |
| Long Term Liabilities:   Deferred compensation                                                                                                                                                     |   |   |        1,542,750                                                                                                                                                     |   |           220,500 |
|    Deferred revenue, less current portion                                                                                                                                                          |   |   |           72,907                                                                                                                                      |   |             32,362 |
|                Total Long Term Liabilities                                                                                             |   |   |         1,615,657                                                                                                                                               |   |            252,862 |
|                                                                                                                                                                                                              |   |   |                                                                                                                                                                                                    |   |   |
| Shareholders' Equity / (Deficit):                                                                                                                                                                                 |   |   |                                                                                                                                                                                                    |   |   |
|    Series A Convertible Preferred Stock, $.01 par value:                                                                                                                                           |   |   |                                                                                                                                                                                                    |   |   |
|       Authorized shares--5,000,000                                                                                                                                                  |   |   |                                                                                                                                                                                                    |   |   |
|       Issued and outstanding shares--722,488 and 744,536                                                                                                                            |   |   |                                                                                                                                                                                                    |   |   |
|         at March 31, 2010 and June 30, 2009, respectively;                                                                                                                |   |   |                                                                                                                                                                                                    |   |   |
|         each share of preferred stock is convertible into 12 shares        of common stock at the option of the holder (aggregate |   |   |                                                                                                                                                                                                    |   |   |
|         liquidation preference of $8,279,869 and $7,422,487 at                                                                                                            |   |   |                                                                                                                                                                                                    |   |   |
|         March 31, 2010 and June 30, 2009, respectively)                                                                                                                   |   |   |              7,225                                                                                                                     |   |              7,445 |
|    Common Stock, $.01 par value:                                                                                                                                                                   |   |   |                                                                                                                                                                                                    |   |   |
|       Authorized shares--150,000,000                                                                                                                                                |   |   |                                                                                                                                                                                                    |   |   |
|       Issued and outstanding shares--41,242,664 and 40,963,088                                                                                                                      |   |   |                                                                                                                                                                                                    |   |   |
|       at March 31, 2010 and June 30, 2009, respectively                                                                                                                             |   |   |           412,427                                                                                                                                     |   |           409,631 |
|    Additional paid-in capital                                                                                                                                                                      |   |   |       27,752,647                                                                                                                                                          |   |       27,677,572 |
|    Accumulated deficit                                                                                                                                                                             |   |   |     (28,782,180)                                                                                                                                                                    |   |     (27,434,607) |
|                Total Shareholders' Equity / (Deficit)                                                                                  |   |   |         (609,881)                                                                                                                                               |   |          660,041 |
|                Total Liabilities and Shareholders' Equity / (Deficit)                                                                  |   |   |  $     1,252,554                                                                                                                                                          |   |  $     1,032,787 |
|                                                                                                                                                                                                              |   |   |                                                                                                                                                                                                    |   |   |
| See accompanying notes.                                                                                                                                                                                           |   |   |                                                                                                                                                                                                    |   |   |

----

|                                                                                                             |  Three Months Ended                                           |   |  Nine Months Ended                                          |
|------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------|--------|------------------------------------------------------------------|
|                                                                                                             |  March 31,                                                    |   |  March 31,                                                  |
|                                                                                                             |  2010                                                         |   |  2009                                                       |   |  2010 |   |  2009 |
| Revenue:                                                                                                         |                                                               |   |                                                             |   |   |   |
|    Equipment sales                                                                                |  $ 71,000                                                     |   |  $28,000                                                    |   |  $730,825 |   |  $206,837 |
|    Equipment rental                                                                               |  15,092                                                       |   | 17,627                                                           |   |  60,335 |   |  67,443 |
|    Warranty, parts & supplies income                                                          |  40,169                                                       |   |  19,138                                                     |   |  95,501 |   | 64,204 |
|                                                                                                             |  126,261                                                      |   |   64,765                                               |   |  886,661 |   |  338,484 |
| Cost of Sales:                                                                                                   |                                                               |   |                                                             |   |   |   |   |
|    Cost of sales                                                                                  |  31,445                                                       |   | 30,840                                                           |   | 162,889 |   | 128,720 |
|    Inventory reserve allowance                                                                    |  (7,859)                                                      |   |  (3,471)                                                    |   |  (63,325) |   | (29,565) |
|              Net Cost of Sales                  |  23,586                                                       |   | 27,369                                                           |   | 99,564 |   | 99,155 |
|              Gross Profit                       | 102,675                                                            |   | 37,396                                                           |   |  787,097 |   | 239,329 |
|                                                                                                             |                                                               |   |                                                             |   |   |   |   |
| Expenses:                                                                                                        |                                                               |   |                                                             |   |   |   |   |
|    Selling, general and administrative expenses                                                   | 440,388                                                            |   |   58,331                                               |   |  2,141,895 |   | 339,671 |
|              Total Expense                      |  440,388                                                      |   |   58,331                                               |   |  2,141,895 |   | 339,671 |
| Operating Income (Loss)                                                                                          |  (337,713)                                                    |   |  (20,935)                                                   |   |  (1,354,798) |   |  (100,342) |
|                                                                                                             |                                                               |   |                                                             |   |   |   |   |
| Other Income:                                                                                                    |                                                               |   |                                                             |   |   |   |   |
|    Interest income                                                                                |  3,336                                                        |   |  1,946                                                      |   | 7,225 |   | 11,793 |
|               Total Other Income                | 3,336                                                              |   | 1,946                                                            |   | 7,225 |   | 11,793 |
|                                                                                                             |                                                               |   |                                                             |   |   |   |   |
| Net loss before income taxes                                                                                     |  (334,377)                                                    |   |  (18,989)                                                   |   |  (1,347,573) |   |  (88,549) |
|    Income Taxes                                                                                   | -                                                                  |   |  -                                                          |   | - |   |  - |
|               Net loss before income taxes |  $(334,377)                                                   |   |  $(18,989)                                                  |   |  $(1,347,573) |   |  $(88,549) |
|                                                                                                             |                                                               |   |                                                             |   |   |   |   |
|                                                                                                             |                                                               |   |                                                             |   |   |   |   |
| Basic and Diluted Net Loss per Share                                                                             | $          (.01) |   | $          .00 |   | $         (.03) |   | $         .00 |
| Weighted Average Shares Outstanding Basic & Diluted                                                          |  41,238,664                                                   |   |  40,795,820                                                 |   |  41,142,729 |   |  40,650,494 |
|                                                                                                             |                                                               |   |                                                             |   |   |   |   |
| See accompanying notes.                                                                                          |                                                               |   |                                                             |   |   |   |   |

----

|                                                                                                                                            |    |                                  Nine Months Ended |
|-------------------------------------------------------------------------------------------------------------------------------------------------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                            |    | March 31,                                                                                                                                                                                                     |
|                                                                                                                                            |    | 2010                                                                                                                                                                                                          |   | 2009 |
| Operating Activities:                                                                                                                           |    |                                                                                                                                                                                                          |   |   |
| Net loss                                                                                                                                        |    | $  (1,347,573)                                                                                                                                                                                      |   | $  (88,549) |
| Adjustments to reconcile net loss to net                                                                                                        |    |                                                                                                                                                                                                          |   |   |
|    cash provided by / (used in) operating activities:                                                                            |    |                                                                                                                                                                                                          |   |   |
|       Deferred stock based compensation expense                                                                   |    | 1,322,250                                                                                                                                                                                                     |   | (309,750) |
|       Depreciation                                                                                                |    | 2,074                                                                                                                                                                                                         |   | 7,146 |
|       Stock options expense                                                                                       |    | 76,001                                                                                                                                                                                                        |   | 68,625 |
|       Change in operating assets and liabilities:                                                                 |    |                                                                                                                                                                                                          |   |   |
|             Accounts receivable                                                     |    | 37,615                                                                                                                                                                                                        |   | 26,000 |
|             Inventory                                                               |    | (9,714)                                                                                                                                                                                                       |   | 7,994 |
|             Prepaid and other current assets                                        |    | (4,684)                                                                                                                                                                                                       |   | 2,202 |
|             Accounts payable                                                        |    | (7,863)                                                                                                                                                                                                       |   | (12,166) |
|             Accrued payroll and payroll taxes                                       |    | 54,324                                                                                                                                                                                                        |   | (33,010) |
|             Deferred revenue                                                        |    | 64,054                                                                                                                                                                                                        |   | 21,430 |
|             Other accrued expenses                                                  |    | 56,924                                                                                                                                                                                                        |   | 31,995 |
|                Net cash provided by / (used in) operating activities | 243,408 |                                                                                                                                                                                                          | (278,083) |
|                                                                                                                                            |    |                                                                                                                                                                                                          |   |   |
|  Financing Activities:                                                                                                                     |    |                                                                                                                                                                                                          |   |   |
|    Proceeds from stock option exercise                                                                                                |    |   1,650                                                                                                                                                                                                  |   |   |
|                                                                                                                                            |    |                                                                                                                                                                                                          |   |
| Net increase/(decrease) in cash and cash equivalents                                                                                            | 245,058 |                                                                                                                                                                                                          | (278,083) |
|                Cash and cash equivalents at beginning of period      | 697,918 |                                                                                                                                                                                                          | 1,081,868 |
| Cash and cash equivalents at end of period                                                                                                      |    | $     942,976                                                                                                                                                                        |   | $   803,785 |
|                                                                                                                                            |    |                                                                                                                                                                                                          |   |   |
| See accompanying notes.                                                                                                                         |    |                                                                                                                                                                                                          |   |   |

----

----

----

|   |                                                       |   |             March 31               |   |   |               March 31                     |   |
|--------|------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------|--------|
|   |                                                       |   |                2010 |   |   |                   2009 |   |
|   | Basic earnings (loss) per share calculation:               |   |                                                                                      |   |   |                                                                                                        |   |
|   | Net income (loss) to common shareholders                   | $      |      (1,347,573)                                                      |   | $      |         (88,549)                                                              |   |
|   | Weighted average of common shares outstanding              |   |          41,142,729                               |   |   |        40,650,494                                                             |   |
|   | Basic net earnings (loss) per share                        | $      |         (0.03)                                              |   | $      |                0.00                   |   |
|   |                                                       |   |                                                                                      |   |   |                                                                                                        |   |
|   | Diluted earnings (loss) per share calculation:             |   |                                                                                      |   |   |                                                                                                        |   |
|   | Net income (loss) to common shareholders                   | $      |      (1,347,573)                                                           |   | $      |          (88,549)                                                        |   |
|   | Weighted average of common shares outstanding              |   |  41,142,729                                                                          |   |   |         40,650,494                                                       |   |
|   | Series A Convertible Preferred Stock (1)                   |   |      -                                                           |   |   |       -                                                                       |   |
|   |            Stock Options (2) |   |      -                                                           |   |   |       -                                                                       |   |
|   |            Warrants (3)      |   |      -                                                           |   |   |       -                                                                       |   |
|   | Diluted weighted average common shares outstanding         |   |  41,142,729                                                                          |   |   |           40,650,494                                           |   |
|   | Diluted net income (loss) per share                        | $      |        (0.03)                                               |   | $      |                  0.00            |   |

| (1) | At March 31, 2010, there were 722,488 shares of  Series A Convertible Preferred Stock outstanding and 758,475 at March 31, 2009. Using the preferred stock conversion ratio of 12:1, the common stock equivalents attributable to these preferred shares are 8,669,856 at March 31, 2010 and 9,101,700 at March 31, 2009.  These common stock equivalents are anti-dilutive at March 31, 2010 and 2009 and therefore, have been excluded from diluted earnings per share.  |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | At March 31, 2010, there were common stock equivalents attributable to outstanding stock options of 7,259,914 common shares and 6,050,342 common shares at March 31, 2009. The stock options are anti-dilutive at March 31, 2010 and 2009 and therefore, have been excluded from diluted earnings per share.                                                                                                                                                                                   |
| (3) | At March 31, 2010 and 2009, there were common stock equivalents of 18,895,254 common shares attributable to warrants. The warrants expire on September 30, 2010, and have an exercise price of $.22 to $.30 per share. The warrants are anti- dilutive at March 31, 2010 and 2009 and therefore, have been excluded from diluted earnings per share.                                                                                                                                           |

----

----

|          |   | Three Months Ended March 31, 2010 |
|---------------|--------|-----------------------------------|
|          |   |                              |   |  Equipment |   |  Equipment |   |  Warranty, |
|          |   | Total                             |   | Sales |   | Rental |   | Parts & Supplies |
|          |   |                              |   |   |   |   |   |   |
| Revenue       |   |  $126,261                    |   |  $ 71,000 |   |  $ 15,092 |   |  $ 40,169 |
| Cost of Sales |   | 23,586                            |   | 13,263 |   | 2,820 |   | 7,503 |
| Gross Profit  |   |  $102,675                    |   |  $ 57,737 |   |  $ 12,272 |   |  $ 32,666 |
|          |   |                              |   |   |   |   |   |   |

|          |   | Three Months Ended March 31, 2009 |
|---------------|--------|-----------------------------------|
|          |   |                              |   | Equipment |   | Equipment |   | Warranty, |
|          |   | Total                             |   | Sales |   | Rental |   | Parts & Supplies |
|          |   |                              |   |   |   |   |   |   |
| Revenue       |   |  $ 64,765                    |   |  $ 28,000 |   |  $ 17,627 |   |  $ 19,138 |
| Cost of Sales |   |  27,369                      |   | 11,833 |   |  7,449 |   |  8,087 |
| Gross Profit  |   |  $ 37,396                    |   |  $ 16,167 |   |  $ 10,178 |   |  $ 11,051 |
|          |   |                              |   |   |   |   |   |   |

----

|                                                                                                                                                        |                                            | Three Months Ended |                                                                                                                                               |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                        |                                            | March 31           |                                                                                                                                               |
|                                                                                                                                                        |         2010 |               |    2009                                                                                                                             |
| Wages, expenses, benefits before deferred compensation...............                                                                   |  $139,665                                  |               |       $ 123,489                                                                                                      |
| Deferred compensation........................................................           |   198,750                             |               |         (147,000)                                                                                          |
| Outside consultants............................................................ |  13,158                                    |               |                     2,739                           |
| Rent (building/equipment) and utilities.....................................                                    | 14,186                                          |               |            15,637                                                                           |
| Insurance-general and directors/officers liability...........................                                                   |  5,614                                     |               |              4,841                                                                |
| Selling, marketing and promotion, including applicable wages and sales commissions.                                                                         | 10,000                                          |               |                          - |
| Legal and audit/accounting fees..............................................                       |  6,742                                     |               |            13,102                                                                           |
| Depreciation and amortization...............................................                    |  317                                       |               |              2,002                                                                |
| Stock option expense.........................................................       | 30,251                                          |               |            22,875                                                                           |
| Other-general and administrative...........................................                         | 21,705                                          |               |            20,646                                                                           |
|             Total selling, general and administrative expenses.............     |  $440,388                                  |               | $   58,331                                                                                            |

----

----

|          |   |           |   | Equipment      |   | Equipment     |   | Warranty,            |
|---------------|--------|----------------|--------|----------------|--------|---------------|--------|----------------------|
|          |   | Total          |   | Sales          |   | Rental        |   | Parts & Supplies |
|          |   |           |   |           |   |          |   |                 |
| Revenue       |   |  $886,661 |   |  $730,825 |   |  $60,335 |   |  $95,501        |
| Cost of Sales |   |  99,564   |   |  79,078   |   | 7,444         |   | 13,042               |
| Gross Profit  |   |  $787,097 |   |  $651,747 |   |  $52,891 |   |  $82,459        |

|          |   |           |   | Equipment      |   | Equipment     |   | Warranty,            |
|---------------|--------|----------------|--------|----------------|--------|---------------|--------|----------------------|
|          |   | Total          |   | Sales          |   | Rental        |   | Parts & Supplies |
|          |   |           |   |           |   |          |   |                 |
| Revenue       |   |  $338,484 |   |  $206,837 |   |  $67,443 |   |  $64,204        |
| Cost of Sales |   |  99,155   |   |  58,699   |   | 20,518        |   |  19,938         |
| Gross Profit  |   |  $239,329 |   |  $148,138 |   |  $46,925 |   |  $44,266        |
|          |   |           |   |           |   |          |   |                 |

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

----

|                                                                                                                                                        |        | Nine Months Ended                                                                                                                                                                                                                                                       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                        |             |             March 31                                                                                                                                                                                             |
|                                                                                                                                                        |   2010 |                                             2009 |
| Wages, expenses, benefits before deferred compensation...............                                                                   |  $ 401,133  |                                                                                                                                                                                                                                                                    |  $353,308 |
| Deferred compensation........................................................           |  1,322,250  |                                                                                                                                                                                                                                                                    |  (309,750) |
| Outside consultants............................................................ |  26,525     |                                                                                                                                                                                                                                                                    | 19,459 |
| Patents and related expenses.................................................                   |  2,875      |                                                                                                                                                                                                                                                                    |    -       |
| Research & Development.....................................................         |  1,470      |                                                                                                                                                                                                                                                                    |    -       |
| Rent (building/equipment) and utilities....................................                                 |  40,772     |                                                                                                                                                                                                                                                                    |  43,776 |
| Insurance-general and directors/officers liability.........................                                                 |  15,227     |                                                                                                                                                                                                                                                                    |  21,864 |
| Selling, marketing and promotion, including applicable wages and sales commissions.                                                                         |  152,740    |                                                                                                                                                                                                                                                                    |                                    - |
| Legal and audit/accounting fees..............................................                       |  38,193     |                                                                                                                                                                                                                                                                    |  69,976 |
| Depreciation and amortization...............................................                    |  2,074      |                                                                                                                                                                                                                                                                    | 6,483 |
| Stock option expense.........................................................       |  76,001     |                                                                                                                                                                                                                                                                    |  68,625 |
| Other-general and administrative...........................................                         |  62,635     |                                                                                                                                                                                                                                                                    |  65,930 |
|             Total selling, general and administrative expenses.............     |  $2,141,895 |                                                                                                                                                                                                                                                                    |  $339,671 |

----

|                                                                          |                   Three Months Ended March 31 |   |                          Nine Months Ended March 31 |
|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                          |   2010                                                                                                              |   |           2009                                                                                                       |   |        2010 |   |         2009 |
| Cost of Sales............................ | $31,445                                                                                                                       |   | $30,840                                                                                                                                                                |   | $162,889 |   | $128,720 |
| Inventory Allowance Adjustment....                                        | (7,859)                                                                                                                       |   | (3,471)                                                                                                                                                                |   | (63,325) |   | (29,565) |
| Cost of Sales, as reported............                        | $23,586                                                                                                                       |   | $27,369                                                                                                                                                                |   | $99,564 |   | $99,155 |

| Net cash provided by / (used in) operating activities:                                                                                                                                                                                                                      |       Nine Months Ended March 31         |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                        | 2010            |  2009                    |   |
|                                                                                                                                                                                                                                                                        |                                                                   |   |   |
| —  Net loss, as adjusted for non-cash items        (expenses associated with deferred stock based compensation, depreciation,           and stock option expense) |     $    52,752           |    $      (322,528)         |   |
| —  (Increase) / Decrease in accounts receivable:–  (A) The increase in the collection of outstanding customer balances from unit sales,        and less sales at quarter end.                            | (A)    37,615                                 | (A)     26,000 |   |
| —  Increase / (Decrease) in accrued payroll and payroll taxes:–  (B) Expense amounts that relate to the amount of accrued vacation, accrued payroll,        and accrued payroll taxes.                   | (B)    54,324                                      | (B)    (33,010)  |   |
| —  (Increase) / Decrease in inventory:–  (C) We sell mostly reconditioned units, and only replenish inventory for items that        are needed to build new units.                                       | (C)      (9,714)                              |  (C)     7,994  |   |
| —  Increase / (Decrease) in deferred revenue:–  (D) Cash received from warranty maintenance contracts, is amortized over the        length of the contract.                                              |  (D)    64,055                                |  (D)     21,430  |   |

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| 31.1   | Certification of Chief Executive Officer pursuant to 13a-14 and 15d-14 of the Exchange Act |
|------------------|--------------------------------------------------------------------------------------------|

| 31.2   | Certification of Chief Financial Officer pursuant to 13a-14 and 15d-14 of the Exchange Act |
|------------------|--------------------------------------------------------------------------------------------|

| 32   | Certificate pursuant to 18 U.S.C. § 1350 |
|----------------|-----------------------------------------------|

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|   | HYPERTENSION DIAGNOSTICS, INC. |
|--------|--------------------------------|

|                                                                                                 | By /s/ Mark N. Schwartz |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|--------|

|   | Mark N. Schwartz |
|--------|------------------|

|   | Chief Executive Officer |
|--------|-------------------------|

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