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

|   | (Mark One) |
|--------|------------|

| x      | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|--------|----------------------------------------------------------------------------------------------------|
|   |                                                                                               |
|   | For the quarterly period ended December 31, 2009                                              |
|   |                                                                                               |
|   | 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 – December 31, 2009 (unaudited) and June 30, 2009                                    | 4       |
|     |                                                                                                      |    |
|     | Statements of Operations (unaudited) – Three Months and Six Months Ended December 31, 2009 and 2008 | 5       |
|     |                                                                                                      |    |
|     | Statements of Cash Flows (unaudited) – Six Months Ended December 31, 2009 and 2008                  | 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                                                                                   | 17      |
|     |                                                                                                      |    |
| PART II. | OTHER INFORMATION:                                                                                        |    |
|     |                                                                                                      |    |
| Item 6.  | Exhibits                                                                                                  | 17      |
|     |                                                                                                      |    |
|     | SIGNATURES                                                                                                | 18      |
|     |                                                                                                      |    |
|     | CERTIFICATIONS                                                                                            | 19      |
|     |                                                                                                      |    |

----

----

|                                                                                                                                                                                                           |   |                                             |       December 31,                       June 30, |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                           |   |                                             | 2009                                                                                                                                                                                |   | 2009 |
| Assets                                                                                                                                                                                                         |   |                                             |                                                                                                                                                                                |   |   |
| Current Assets:                                                                                                                                                                                                |   |                                             |                                                                                                                                                                                |   |   |
|    Cash and cash equivalents                                                                                                                                                                    |   |                                             |  $    1,071,822                                                                                                                                            |   |  $       697,918 |
|    Accounts receivable                                                                                                                                                                          |   |                                             |               5,586                                                                                           |   |             42,500 |
|    Inventory, net                                                                                                                                                                               |   |                                             |           281,255                                                                                                                 |   |           278,873 |
|    Prepaid and other current assets                                                                                                                                                             |   |                                             |               6,192                                                                                           |   |               3,237 |
|                Total Current Assets                                                                                                 |   |                                             |        1,364,855                                                                                                                                 |   |        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                                                                                                                                               |   |                                             |          (929,957)                                                                                                                     |   |          (928,200) |
|                Property and Equipment, net                                                                                          |   |                                             |               1,972                                                                                           |   |               3,729 |
|                                                                                                                                                                                                           |   |                                             |                                                                                                                                                                                |   |   |
| Other Assets                                                                                                                                                                                                   |   |                                             |               6,530                                                                                           |   |               6,530 |
|                Total Assets                                                                                                         |   |                                             |  $    1,373,357                                                                                                                                            |   |  $    1,032,787 |
|                                                                                                                                                                                                           |   |                                             |                                                                                                                                                                                |   |   |
| Liabilities and Shareholders' Equity / (Deficit)                                                                                                                                                               |   |                                             |                                                                                                                                                                                |   |   |
| Current Liabilities:                                                                                                                                                                                           |   |                                             |                                                                                                                                                                                |   |   |
|    Accounts payable                                                                                                                                                                             |   |                                             |  $          40,623                                                                                                           |   |  $          16,343 |
|    Accrued vacation, payroll and payroll taxes                                                                                                                                                  |   |                                             |              74,537                                                                                                |   |              47,579 |
|    Deferred revenue                                                                                                                                                                             |   |          |              62,690                                                                                                     |   |              48,246 |
|    Deposits from customers                                                                                                                                                                      |   |                                             |              47,331                                                                                                     |   |                   970 |
|    Other accrued expenses                                                                                                                                                                       |   |                                             |              29,828                                                                                                |   |                6,746 |
|                Total Current Liabilities                                                                                            |   |                                             |            255,009                                                                                                           |   |            119,884 |
|                                                                                                                                                                                                           |   |                                             |                                                                                                                                                                                |   |   |
| Long Term Liabilities:   Deferred compensation                                                                                                                                                  |   |                                             |         1,344,000                                                                                                                           |   |           220,500 |
|    Deferred revenue, less current portion                                                                                                                                                       |   |                                             |              81,753                                                                                                |   |             32,362 |
|                Total Long Term Liabilities                                                                                          |   |                                             |         1,425,753                                                                                                                           |   |            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 December 31, 2009 and June 30, 2009, respectively;                                                                                                          |   |                                             |                                                                                                                                                                                |   |   |
|         each share of preferred stock convertible into 12 shares        of common stock at the option of the holder (aggregate |   |                                             |                                                                                                                                                                                |   |   |
|         liquidation preference $7,908,637 and $7,422,487 at                                                                                                            |   |                                             |                                                                                                                                                                                |   |   |
|         December 31, 2009 and June 30, 2009, respectively)                                                                                                             |   |                                             |              7,225                                                                                                 |   |              7,445 |
|    Common Stock, $.01 par value:                                                                                                                                                                |   |                                             |                                                                                                                                                                                |   |   |
|       Authorized shares--150,000,000                                                                                                                                             |   |                                             |                                                                                                                                                                                |   |   |
|       Issued and outstanding shares--41,227,664 and 40,963,088                                                                                                                   |   |                                             |                                                                                                                                                                                |   |   |
|       at December 31, 2009 and June 30, 2009, respectively                                                                                                                       |   |                                             |           412,277                                                                                                                 |   |           409,631 |
|    Additional paid-in capital                                                                                                                                                                   |   |                                             |       27,720,896                                                                                                                                      |   |       27,677,572 |
|    Accumulated deficit                                                                                                                                                                          |   |                                             |     (28,447,803)                                                                                                                                                |   |     (27,434,607) |
|                Total Shareholders' Equity / (Deficit)                                                                               |   |                                             |          (307,405)                                                                                                                     |   |            660,041 |
|                Total Liabilities and Shareholders' Equity / (Deficit)                                                               |   |                                             |  $     1,373,357                                                                                                                                      |   |  $     1,032,787 |
|                                                                                                                                                                                                           |   |                                             |                                                                                                                                                                                |   |   |
| See accompanying notes.                                                                                                                                                                                        |   |                                             |                                                                                                                                                                                |   |   |

----

|                                                                                                             | 2009                                                               |   | 2008                                                             |   | 2009                                                         |   | 2008                                                       |
|------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|--------------------------------------------------------------|--------|------------------------------------------------------------|
| Revenue:                                                                                                         |                                                               |   |                                                             |   |                                                         |   |
|    Equipment sales                                                                                |  $405,590                                                     |   |  $96,837                                                    |   |  $659,825                                               |   |  $178,837                                             |
|    Equipment rental                                                                               |  20,082                                                       |   |  24,119                                                     |   |  45,243                                                 |   |  49,816                                               |
|    Warranty, parts & supplies income                                                          |  32,653                                                       |   |  16,251                                                     |   |  55,332                                                 |   | 45,066                                                     |
|                                                                                                             |  458,325                                                      |   |  137,207                                                    |   |  760,400                                                |   |  273,719                                              |
| Cost of Sales:                                                                                                   |                                                               |   |                                                             |   |                                                         |   |                                                       |
|    Cost of sales                                                                                  |  80,822                                                       |   |  48,618                                                     |   | 131,444                                                      |   |  97,880                                               |
|    Inventory reserve allowance                                                                    |  (37,628)                                                     |   |  (12,979)                                                   |   |  (55,466)                                               |   | (26,094)                                                   |
|              Net Cost of Sales                  |  43,194                                                       |   |  35,639                                                     |   | 75,978                                                       |   | 71,786                                                     |
|              Gross Profit                       |  415,131                                                      |   |  101,568                                                    |   |  684,422                                                |   | 201,933                                                    |
|                                                                                                             |                                                               |   |                                                             |   |                                                         |   |                                                       |
| Expenses:                                                                                                        |                                                               |   |                                                             |   |                                                         |   |                                                       |
|    Selling, general and administrative expenses                                                   | 650,666                                                            |   |  296,096                                                    |   |  1,701,507                                              |   | 281,340                                                    |
|              Total Expense                      |  650,666                                                      |   |  296,096                                                    |   |  1,701,507                                              |   | 281,340                                                    |
| Operating Income (Loss)                                                                                          |  (235,535)                                                    |   |  (194,528)                                                  |   |  (1,017,085)                                            |   |  (79,407)                                             |
|                                                                                                             |                                                               |   |                                                             |   |                                                         |   |                                                       |
| Other Income:                                                                                                    |                                                               |   |                                                             |   |                                                         |   |                                                       |
|    Interest income                                                                                |  2,406                                                        |   |  3,363                                                      |   | 3,889                                                        |   | 9,847                                                      |
|               Total Other Income                | 2,406                                                              |   | 3,363                                                            |   | 3,889                                                        |   | 9,847                                                      |
|                                                                                                             |                                                               |   |                                                             |   |                                                         |   |                                                       |
| Net loss before income taxes                                                                                     |  (233,129)                                                    |   |  (191,165)                                                  |   |  (1,013,196)                                            |   |  (69,560)                                             |
|    Income Taxes                                                                                   | -                                                                  |   |  -                                                          |   | -                                                            |   |  -                                                    |
|               Net loss before income taxes |  $(233,129)                                                   |   |  $(191,165)                                                 |   |  $(1,013,196)                                           |   |  $(69,560)                                            |
|                                                                                                             |                                                               |   |                                                             |   |                                                         |   |                                                       |
|                                                                                                             |                                                               |   |                                                             |   |                                                         |   |                                                       |
| Basic and Diluted Net Loss per Share                                                                             | $          (.01) |   | $          .00 |   | $         (.02) |   | $         .00 |
| Weighted Average Shares Outstanding Basic & Diluted                                                          |  41,217,897                                                   |   |  40,795,820                                                 |   |  41,095,804                                             |   |  40,579,411                                           |
|                                                                                                             |                                                               |   |                                                             |   |                                                         |   |                                                       |
| See accompanying notes.                                                                                          |                                                               |   |                                                             |   |                                                         |   |                                                       |

----

|                                                                                                                                            |    | 2009                         |      | 2008                       |
|-------------------------------------------------------------------------------------------------------------------------------------------------|---------|------------------------------|-----------|----------------------------|
| Operating Activities:                                                                                                                           |    |                         |      |                       |
| Net loss                                                                                                                                        |    | $  (1,013,196)     |      | $  (69,560)      |
| Adjustments to reconcile net loss to net                                                                                                        |    |                         |      |                       |
|    cash provided by / (used in) operating activities:                                                                            |    |                         |      |                       |
|       Deferred stock based compensation expense                                                                   |    | 1,123,500                    |      | (162,750)                  |
|       Depreciation                                                                                                |    | 1,757                        |      | 5,145                      |
|       Stock options expense                                                                                       |    | 45,750                       |      | 45,750                     |
|       Change in operating assets and liabilities:                                                                 |    |                         |      |                       |
|             Accounts receivable                                                     |    | 36,914                       |      | 25,282                     |
|             Inventory                                                               |    | (2,382)                      |      | 8,151                      |
|             Prepaid and other current assets                                        |    | (2,955)                      |      | 6,379                      |
|             Accounts payable                                                        |    | 24,280                       |      | (15,367)                   |
|             Accrued payroll and payroll taxes                                       |    | 26,958                       |      | (38,788)                   |
|             Deferred revenue                                                        |    | 63,835                       |      | 25,023                     |
|             Other accrued expenses                                                  |    | 69,443                       |      | 3,608                      |
|                Net cash provided by / (used in) operating activities | 373,904 |                         | (167,127) |
|                                                                                                                                            |    |                         |      |                       |
| Net increase/(decrease) in cash and cash equivalents                                                                                            | 373,904 |                         | (167,127) |
|                Cash and cash equivalents at beginning of period      | 697,918 |                         | 1,081,868 |
| Cash and cash equivalents at end of period                                                                                                      |    | $   1,071,822 |      | $   914,741 |
|                                                                                                                                            |    |                         |      |                       |
| See accompanying notes.                                                                                                                         |    |                         |      |                       |

----

----

----

|   |                                                       |   |     December 31                              |   |   |     December 31                                     |   |
|--------|------------------------------------------------------------|--------|------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------|--------|
|   |                                                       |   |           2009 |   |   |           2008             |   |
|   | Basic earnings (loss) per share calculation:               |   |                                                             |   |   |                                                                    |   |
|   | Net income (loss) to common shareholders                   | $      |    (1,013,196)                                         |   | $      |   (69,560)                                                         |   |
|   | Weighted average of common shares outstanding              |   | 41,095,804                                                       |   |   |   40,579,411                                                       |   |
|   | Basic net earnings (loss) per share                        | $      |         (0.02)                |   | $      |             0.00 |   |
|   |                                                       |   |                                                             |   |   |                                                                    |   |
|   | Diluted earnings (loss) per share calculation:             |   |                                                             |   |   |                                                                    |   |
|   | Net income (loss) to common shareholders                   | $      |    (1,013,196)                                         |   | $      |   (69,560)                                                         |   |
|   | Weighted average of common shares outstanding              |   | 41,095,804                                                       |   |   |   40,579,411                                                       |   |
|   | Series A Convertible Preferred Stock (1)                   |   | -                                                                |   |   | -                                                                       |   |
|   |            Stock Options (2) |   | -                                                                |   |   | -                                                                       |   |
|   |            Warrants (3)      |   | -                                                                |   |   | -                                                                       |   |
|   | Diluted weighted average common shares outstanding         |   |  41,095,804                                                 |   |   |  40,579,411                                                        |   |
|   | Diluted net income (loss) per share                        | $      |          (0.02)          |   | $      |             0.00      |   |

| (1) | At December 31, 2009, there were 722,488 shares of  Series A Convertible Preferred Stock outstanding and 744,536 at December 31, 2008. Using the preferred stock conversion ratio of 12:1, the common  stock equivalents attributable to these preferred shares are 8,669,856 at December 31, 2009 and 8,934,432 at December 31,2008.  These common stock equivalents are anti-dilutive at December 31, 2009 and 2008 and therefore have been excluded from diluted earnings per share.  |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | At December 31, 2009, there were common stock equivalents attributable to outstanding stock options of 7,310,342 common shares and 6,080,342 common shares at December 31, 2008. The stock options are anti-dilutive at December 31, 2009 and 2008 and therefore have been excluded from diluted earnings per share.                                                                                                                                                                                                   |
| (3) | At December 31, 2009 and 2008, 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 December 31, 2009 and 2008 and therefore have been excluded from diluted earnings pershare.                                                                                                                                                               |

| 10.   | Subsequent Events: |
|-----------------|--------------------|

----

| ·   | The CR-2000 Research System is being marketed worldwide “for research purposes only” to clinical research investigators for the purpose of collecting data in cardiovascular studies. Because the CR-2000 Research System bears the CE Mark and meets the European Union Medical Device Directive, physicians may use the CR-2000 Research System withpatients in a clinical setting in the European Union. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In the U.S., the CVProfilor® DO-2020 System is being marketed to primary care physicians and other health care professionals on a purchase or lease basis.  Some Systems previously marketed under a “per-patient-tested rental basis remain in use although weno longer offer that option in our current marketing. Utilizing our Central Data Management Facility, we are able to track rental unit utilization of the CVProfilor® DO-2020 System in each physician’s office and medical clinic and to invoice our physician customers on the number of CardioVascular Profile Reports (CVProfileTM Reports) which they generate each month. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Recent Accounting Pronouncements |
|----------------------------------|

----

|          |   |           |   | Equipment      |   | Equipment     |   | Warranty,            |
|---------------|--------|----------------|--------|----------------|--------|---------------|--------|----------------------|
|          |   | Total          |   | Sales          |   | Rental        |   | Parts & Supplies |
|          |   |           |   |           |   |          |   |                 |
| Revenue       |   |  $458,325 |   |  $405,590 |   |  $20,082 |   |  $32,653        |
| Cost of Sales |   |  43,194   |   | 38,224         |   | 1,893         |   |  3,077          |
| Gross Profit  |   |  $415,131 |   |  $367,366 |   |  $18,189 |   |  $29,576        |
|          |   |           |   |           |   |          |   |                 |

|          |   |           |   | Equipment     |   | Equipment     |   | Warranty,            |
|---------------|--------|----------------|--------|---------------|--------|---------------|--------|----------------------|
|          |   | Total          |   | Sales         |   | Rental        |   | Parts & Supplies |
|          |   |           |   |          |   |          |   |                 |
| Revenue       |   |  $137,207 |   |  $96,837 |   |  $24,119 |   |  $16,251        |
| Cost of Sales |   |  35,639   |   |  25,153  |   | 6,265         |   |  4,221          |
| Gross Profit  |   |  $101,568 |   |  $71,684 |   |  $17,854 |   |  $12,030        |
|          |   |           |   |          |   |          |   |                 |

----

|                                                                                                                                                        |           | Three Months Ended |                                                                                                                                                           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                        |           | December 31        |                                                                                                                                                           |
|                                                                                                                                                        | 2009           |               | 2008                                                                                                                                                           |
| Wages, expenses, benefits before deferred compensation...............                                                                   |  $121,549 |               |  $122,149                                                                                                                                                 |
| Deferred compensation........................................................           |  359,625  |               |  66,938                                                                                                                                                   |
| Outside consultants............................................................ |  5,312    |               |  3,088                                                                                                                                                    |
| Patents and related expenses.................................................                   |  2,875    |               |    -                                                                                                                                            |
| Research & Development.....................................................         |  1,470    |               |    -                                                                                                                                            |
| Rent (building/equipment) and utilities.....................................                                    | 13,360         |               |  14,036                                                                                                                                                   |
| Insurance-general and directors/officers liability...........................                                                   |  4,783    |               |  8,471                                                                                                                                                    |
| Selling, marketing and promotion, including applicable wages and sales commissions.                                                                         |  92,750   |               |                            - |
| Legal and audit/accounting fees..............................................                       |  5,538    |               |  28,884                                                                                                                                                   |
| Depreciation and amortization...............................................                    |  317      |               |  2,220                                                                                                                                                    |
| Stock option expense.........................................................       |  22,875   |               |  22,875                                                                                                                                                   |
| Other-general and administrative...........................................                         |  20,212   |               |  27,435                                                                                                                                                   |
|             Total selling, general and administrative expenses.............     |  $650,666 |               | $296,096                                                                                                                                                       |

----

|          |   |           |   | Equipment      |   | Equipment     |   | Warranty,            |
|---------------|--------|----------------|--------|----------------|--------|---------------|--------|----------------------|
|          |   | Total          |   | Sales          |   | Rental        |   | Parts & Supplies |
|          |   |           |   |           |   |          |   |                 |
| Revenue       |   |  $760,400 |   |  $659,825 |   |  $45,243 |   |  $55,332        |
| Cost of Sales |   |  75,978   |   |  65,815   |   | 4,624         |   |  5,539          |
| Gross Profit  |   |  $684,422 |   |  $594,010 |   |  $40,619 |   |  $49,793        |
|          |   |           |   |           |   |          |   |                 |

|          |   |           |   | Equipment      |   | Equipment     |   | Warranty,            |
|---------------|--------|----------------|--------|----------------|--------|---------------|--------|----------------------|
|          |   | Total          |   | Sales          |   | Rental        |   | Parts & Supplies |
|          |   |           |   |           |   |          |   |                 |
| Revenue       |   |  $273,719 |   |  $178,837 |   |  $49,816 |   |  $45,066        |
| Cost of Sales |   |  71,786   |   |  46,866   |   | 13,069        |   |  11,851         |
| Gross Profit  |   |  $201,933 |   |  $131,971 |   |  $36,747 |   |  $33,215        |
|          |   |           |   |           |   |          |   |                 |

----

|                                                                                                                                                        |                                                              |   Six Months Ended                                                                                                                                                                                                                                                             |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                        |                                                              |       December 31                                                                                                                                                                                                                                          |
|                                                                                                                                                        |            2009 |                                               2008 |
| Wages, expenses, benefits before deferred compensation...............                                                                   |  $261,468                                                    |                                                                                                                                                                                                                                                                                |  $229,819 |
| Deferred compensation........................................................           |  1,123,500                                                   |                                                                                                                                                                                                                                                                                |  (162,750) |
| Outside consultants............................................................ |  13,367                                                      |                                                                                                                                                                                                                                                                                | 16,720 |
| Patents and related expenses.................................................                   |  2,875                                                       |                                                                                                                                                                                                                                                                                |    - |
| Research & Development.....................................................         |  1,470                                                       |                                                                                                                                                                                                                                                                                |    - |
| Rent (building/equipment) and utilities....................................                                 |  26,586                                                      |                                                                                                                                                                                                                                                                                |  28,139 |
| Insurance-general and directors/officers liability.........................                                                 |  9,613                                                       |                                                                                                                                                                                                                                                                                |  17,023 |
| Selling, marketing and promotion, including applicable wages and sales commissions.                                                                         |  142,740                                                     |                                                                                                                                                                                                                                                                                |                                 - |
| Legal and audit/accounting fees..............................................                       |  31,451                                                      |                                                                                                                                                                                                                                                                                |  56,874 |
| Depreciation and amortization...............................................                    |  1,757                                                       |                                                                                                                                                                                                                                                                                | 4,481 |
| Stock option expense.........................................................       |  45,750                                                      |                                                                                                                                                                                                                                                                                |  45,750 |
| Other-general and administrative...........................................                         |  40,930                                                      |                                                                                                                                                                                                                                                                                |  45,284 |
|             Total selling, general and administrative expenses.............     |  $1,701,507                                                  |                                                                                                                                                                                                                                                                                |  $281,340 |

----

|                                                                          |    Three Months Ended December 31 |   |     Six Months Ended December 31             |
|-------------------------------------------------------------------------------|--------------------------------------------------|--------|------------------------------------------------------------------|
|                                                                          |   2009                                 |   |           2008 |   |        2009 |   |         2008 |
| Cost of Sales............................ | $80,822                                          |   | $48,618                                                          |   | $131,444 |   | $97,880 |
| Inventory Allowance Adjustment....                                        | (37,628)                                         |   | (12,979)                                                         |   | (55,466) |   | (26,094) |
| Cost of Sales, as reported............                        | $43,194                                          |   | $35,639                                                          |   | $75,978 |   | $71,786 |

----

| Net cash provided by / (used in) operating activities:                                                                                                                                                               |                   Six Months Ended December 31 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                 |   2009                                                                  |         2008                       |   |
| —  Net loss, as adjusted for non-cash items (expenses associated with deferred stock based compensation, depreciation, and stock option expense)                                                     | $    157,811                                                                                                              |        $          (181,415)  |   |
|  —  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)  36,914                                     |                   (A)   25,282  |   |
|  —  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)   26,958                         |                    (B)  (38,788)  |   |

|  —  Increase / (Decrease) in inventory:–  (C)We sell mostly reconditioned units, and only replenish inventory for items that are needed to build new units. |  (C)     2,382 |   (C)   (8,151)       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|-----------------------------------------------------|
|  —  Increase / (Decrease) in deferred revenue:–  (D)Cash received from warranty maintenance contracts, is amortized over the length of the contract.   |  (D)   63,835            |   (D)    25,023  |

----

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

----

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

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

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

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

----