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

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

| x      | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|--------|----------------------------------------------------------------------------------------------------|
|   |                                                                                               |
|   | For the quarterly period ended March 31, 2011                                                      |
|   |                                                                                               |
|   | 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, 2011 (unaudited) and June 30, 2010                                     | 4       |
|     |                                                                                                    |    |
|     | Statements of Operations (unaudited) – Three Months and Nine Months Ended March 31, 2011 and 2010 | 5       |
|     |                                                                                                    |    |
|     | Statements of Cash Flows (unaudited) – Nine Months Ended March 31, 2011 and 2010                  | 6       |
|     |                                                                                                    |    |
|     | Notes to Financial Statements                                                                           | 7       |
|     |                                                                                                    |    |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations             | 10      |
|     |                                                                                                    |    |
| Item 4.  | Controls and Procedures                                                                                 | 16      |
|     |                                                                                                    |    |
| PART II. | OTHER INFORMATION:                                                                                      |    |
|     |                                                                                                    |    |
| Item 6.  | Exhibits                                                                                                | 17      |
|     |                                                                                                    |    |
|     | SIGNATURES                                                                                              | 18      |
|     |                                                                                                    |    |
|     | CERTIFICATIONS                                                                                          | 19      |
|     |                                                                                                    |    |

----

----

|                                                                                                                                           |   | March 31, |        |   | June 30, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|----------|--------|
|                                                                                                                                           |   | 2011      |        |   | 2010     |   |
| Assets                                                                                                                                         |   |      |        |   |     |   |
| Current Assets:                                                                                                                                |   |      |        |   |     |   |
|    Cash and cash equivalents                                                                                                    |   | $         | 822,114     |   |     | $      | 1,053,648 |   |
|    Accounts receivable                                                                                                          |   |      | 4,793       |   |     |   | 38,073 |   |
|    Inventory, net                                                                                                               |   |      | 395,088     |   |     |   | 442,005 |   |
|    Prepaids and other current assets                                                                                            |   |      | 14,216      |   |     |   | 4,986 |   |
|                Total Current Assets                                 |   |      | 1,236,211   |   |     |   | 1,538,712 |   |
|                                                                                                                                           |   |      |        |   |     |   |   |   |
| 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                                                                                                       |   |      | 172,877     |   |     |   | 162,351 |   |
| Total Property and Equipment                                                                                                                   |   |      | 942,455     |   |     |   | 931,929 |   |
|    Less accumulated depreciation and amortization                                                                               |   |      | (931,489    | )      |     |   | (930,591 | ) |
|                Property and Equipment, net                          |   |      | 10,966      |   |     |   | 1,338 |   |
|                                                                                                                                           |   |      |        |   |     |   |   |   |
| Other Assets                                                                                                                                   |   |      | 6,530       |   |     |   | 6,530 |   |
|                Total Assets                                         |   | $         | 1,253,707   |   |     | $      | 1,546,580 |   |
|                                                                                                                                           |   |      |        |   |     |   |   |   |
| Liabilities and Shareholders' Equity (Deficit)                                                                                                 |   |      |        |   |     |   |   |   |
| Current Liabilities:                                                                                                                           |   |      |        |   |     |   |   |   |
|    Accounts payable                                                                                                             |   | $         | 15,724      |   |     | $      | 14,090 |   |
|    Accrued vacation, payroll and payroll taxes                                                                                  |   |      | 76,833      |   |     |   | 82,369 |   |
|    Deferred revenue                                                                                                             |   |      | 47,761      |   |     |   | 72,202 |   |
|    Accrued commissions                                                                                                          |   |      | 26,075      |   |     |   | 110,500 |   |
|    Other accrued expenses                                                                                                       |   |      | 19,258      |   |     |   | 27,438 |   |
|                Total Current Liabilities                            |   |      | 185,651     |   |     |   | 306,599 |   |
|                                                                                                                                           |   |      |        |   |     |   |   |   |
| Long Term Liabilities:   Deferred compensation                                                                                  |   |      | 1,059,750   |   |     |   | 1,316,250 |   |
|    Deferred revenue, less current portion                                                                                       |   |      | 48,729      |   |     |   | 70,549 |   |
|                Total Long Term Liabilities                          |   |      | 1,108,479   |   |     |   | 1,386,799 |   |
|                                                                                                                                           |   |      |        |   |     |   |   |   |
| Shareholders' Equity (Deficit):                                                                                                                |   |      |        |   |     |   |   |   |
|    Series A Convertible Preferred Stock, $.01 par value:                                                                        |   |      |        |   |     |   |   |   |
|       Authorized shares--5,000,000                                                                               |   |      |        |   |     |   |   |   |
|       Issued and outstanding shares--626,004 and 710,993                                                         |   |      |        |   |     |   |   |   |
|         at March 31, 2011 and June 30, 2010, respectively;                                             |   |      |        |   |     |   |   |   |
|         each share of preferred stock is convertible into 12 shares                                    |   |      |        |   |     |   |   |   |
|         of common stock at the option of the holder (aggregate                                         |   |      |        |   |     |   |   |   |
|         liquidation preference of $8,256,740 and $8,419,333 at                                         |   |      |        |   |     |   |   |   |
|         March 31, 2011 and June 30, 2010, respectively)                                                |   |      | 6,260       |   |     |   | 7,110 |   |
|    Common Stock, $.01 par value:                                                                                                |   |      |        |   |     |   |   |   |
|       Authorized shares--150,000,000                                                                             |   |      |        |   |     |   |   |   |
|       Issued and outstanding shares--43,150,475 and 41,916,320                                                   |   |      |        |   |     |   |   |   |
|       at March 31, 2011 and June 30, 2010, respectively                                                          |   |      | 431,505     |   |     |   | 419,163 |   |
|    Additional paid-in capital                                                                                                   |   |      | 27,965,528  |   |     |   | 27,851,275 |   |
|    Accumulated deficit                                                                                                          |   |      | (28,443,716 | )      |     |   | (28,424,366 | ) |
|                Total Shareholders' Equity (Deficit)                 |   |      | (40,423     | )      |     |   | (146,818 | ) |
|                Total Liabilities and Shareholders' Equity (Deficit) |   | $         | 1,253,707   |   |     | $      | 1,546,580 |   |
|                                                                                                                                           |   |      |        |   |     |   |   |   |
| See accompanying notes.                                                                                                                        |   |      |        |   |     |   |   |   |

----

|                                                                                                                                                                      |   | Three Months Ended |       |   | Nine Months Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                                                                                                                                                      |   | March 31,          |       |   | March 31,         |   |
|                                                                                                                                                                      |   | 2011               |       |   | 2010              |   |   | 2011 |   |   | 2010 |   |
| Revenue:                                                                                                                                                                  |   |               |       |   |              |   |   |   |   |   |   |   |
|    Equipment sales                                                                                                                                         |   | $                  | 293,300    |   |              | $      | 71,000 |   |   | $ | 900,200 |   |   | $ | 730,825 |   |
|    Equipment rental                                                                                                                                        |   |               | 11,399     |   |              |   | 15,092 |   |   |   | 34,970 |   |   |   | 60,335 |   |
|    Service/contract income                                                                                                                                 |   |               | 42,482     |   |              |   | 40,169 |   |   |   | 127,205 |   |   |   | 95,501 |   |
|                                                                                                                                                                      |   |               | 347,181    |   |              |   | 126,261 |   |   |   | 1,062,375 |   |   |   | 886,661 |   |
| Cost of Sales:                                                                                                                                                            |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
|   Cost of sales                                                                                                                                                 |   |               | 69,901     |   |              |   | 31,445 |   |   |   | 191,376 |   |   |   | 162,889 |   |
|   Inventory obsolescence allowance                                                                                                                              |   |               | 14,865     |   |              |   | (7,859 | ) |   |   | 24,416 |   |   |   | (63,325 | ) |
|                Net Cost of Sales                                                               |   |               | 84,766     |   |              |   | 23,586 |   |   |   | 215,792 |   |   |   | 99,564 |   |
|                Gross Profit                                                                    |   |               | 262,415    |   |              |   | 102,675 |   |   |   | 846,583 |   |   |   | 787,097 |   |
|                                                                                                                                                                      |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                                                                                                 |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
|    Selling, general and administrative                                                                                                                     |   |               | 366,069    |   |              |   | 440,388 |   |   |   | 876,081 |   |   |   | 2,141,895 |   |
|                Total Expenses                                                                  |   |               | 366,069    |   |              |   | 440,388 |   |   |   | 876,081 |   |   |   | 2,141,895 |   |
| Operating income (loss)                                                                                                                                                   |   |               | (103,654   | )      |              |   | (337,713 | ) |   |   | (29,498 | ) |   |   | (1,354,798 | ) |
|                                                                                                                                                                      |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Other Income:                                                                                                                                                             |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
|     Interest income                                                                                                                                   |   |               | 1,480      |   |              |   | 3,336 |   |   |   | 7,341 |   |   |   | 7,225 |   |
|     Miscellaneous income                                                                                                                              |   |               | -          |   |              |   | - |   |   |   | 2,807 |   |   |   | - |   |
|                 Total Other Income                                                        |   |               | 1,480      |   |              |   | 3,366 |   |   |   | 10,148 |   |   |   | 7,225 |   |
|                       Net income (loss) before income taxes |   |               | (102,174   | )      |              |   | (334,377 | ) |   |   | (19,350 | ) |   |   | (1,347,573 | ) |
| Income taxes                                                                                                                                                              |   |               | -          |   |              |   | - |   |   |   | - |   |   |   | - |   |
|                       Net income (loss)                     |   | $                  | (102,174   | )      |              | $      | (334,377 | ) |   | $ | (19,350 | ) |   | $ | (1,347,573 | ) |
|                                                                                                                                                                      |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (loss) per Common Share:                                                                                                                                       |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                   Basic                                                         |   | $                  | (0.00      | )      |              | $      | (0.01 | ) |   | $ | (0.00 | ) |   | $ | (0.03 | ) |
|                   Diluted                                                       |   | $                  | (0.00      | )      |              | $      | (0.01 | ) |   | $ | (0.00 | ) |   | $ | (0.03 | ) |
|                                                                                                                                                                      |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Average Common Shares Outstanding:                                                                                                                               |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                   Basic                                                         |   |               | 43,150,475 |   |              |   | 41,238,664 |   |   |   | 42,455,200 |   |   |   | 41,142,729 |   |
|                   Diluted                                                       |   |               | 43,150,475 |   |              |   | 41,238,664 |   |   |   | 42,455,200 |   |   |   | 41,142,729 |   |
| See accompanying notes.                                                                                                                                                   |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                          |   |  Nine Months Ended |      |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|
|                                                                                                                                          |   |  March 31,         |      |
|                                                                                                                                          |   | 2011                    |      |   | 2010 |   |
| Operating Activities:                                                                                                                         |   |                    |      |   |   |   |
| Net income(loss)                                                                                                                              |   | $                       | (19,350   | ) |   | $ | (1,347,573 | ) |
| Adjustments to reconcile net income(loss) to net                                                                                              |   |                    |      |   |   |   |   |   |
|    cash provided by(used in) operating activities:                                                                             |   |                    |      |   |   |   |   |   |
|       Deferred stock based compensation expense                                                                 |   |                    | (256,500  | ) |   |   | 1,322,250 |   |
|       Depreciation                                                                                              |   |                    | 898       |   |   |   | 2,074 |   |
|       Stock options expense                                                                                     |   |                    | 95,745    |   |   |   | 76,001 |   |
|       Change in operating assets and liabilities:                                                               |   |                    |      |   |   |   |   |   |
|             Accounts receivable                                                   |   |                    | 33,280    |   |   |   | 37,615 |   |
|             Inventory                                                             |   |                    | 36,391    |   |   |   | (9,714 | ) |
|             Prepaids and other current assets                                     |   |                    | (9,230    | ) |   |   | (4,684 | ) |
|             Accounts payable                                                      |   |                    | 1,634     |   |   |   | (7,863 | ) |
|             Accrued vacation, payroll and payroll taxes                           |   |                    | (5,536    | ) |   |   | 54,324 |   |
|             Deferred revenue                                                      |   |                    | (46,261   | ) |   |   | 64,054 |   |
|             Accrued commissions                                                   |   |                    | (84,425   | ) |   |   | - |   |
|             Other accrued expenses                                                |   |                    | (8,180    | ) |   |   | 56,924 |   |
|                Net cash provided by (used in) operating activities |   |                    | (261,534  | ) |   |   | 243,408 |   |
|                                                                                                                                          |   |                    |      |   |   |   |   |   |
| Financing Activities:                                                                                                                         |   |                    |      |   |   |   |   |   |
|       Proceeds from exercise of warrant/stock options                                                           |   |                    | 30,000    |   |   |   | 1,650 |   |
|                                                                                                                                          |   |                    |      |   |   |   |   |   |
| Net increase(decrease) in cash and cash equivalents                                                                                           |   |                    | (231,534  | ) |   |   | 245,058 |   |
|                                                                                                                                          |   |                    |      |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                                                                                              |   |                    | 1,053,648 |   |   |   | 697,918 |   |
|                                                                                                                                          |   |                    |      |   |   |   |   |   |
| Cash and cash equivalents at end of period                                                                                                    |   | $                       | 822,114   |   |   | $ | 942,976 |   |
|                                                                                                                                          |   |                    |      |   |   |   |   |   |
| See accompanying notes.                                                                                                                       |   |                    |      |   |   |   |   |   |

----

| 1.   | Basis of Presentation |
|----------------|-----------------------|

|   2. |         Recent Accounting Pronouncements |
|-----------|----------------------------------------------------------------------------------|

----

|                                                       |   | March 31, |       |   | March 31, |   |
|------------------------------------------------------------|--------|-----------|------------|--------|-----------|--------|
|                                                       |   | 2011      |       |   | 2010      |   |
| Basic earnings (loss) per share calculation:               |   |      |       |   |      |   |
| Net income (loss) to common shareholders                   |   | $         | (19,350    | )      |      | $      | (1,347,573 | ) |
| Weighted average of common shares outstanding              |   |      | 42,455,200 |   |      |   | 41,142,729 |   |
| Basic net earnings (loss) per share                        |   | $         | (0.00      | )      |      | $      | (0.03 | ) |
|                                                       |   |      |       |   |      |   |   |   |
| Diluted earnings (loss) per share calculation:             |   |      |       |   |      |   |   |   |
| Net income (loss) to common shareholders                   |   | $         | (19,350    | )      |      | $      | (1,347,573 | ) |
| Weighted average of common shares outstanding              |   |      | 42,455,200 |   |      |   | 41,142,729 |   |
| Series A Convertible Preferred Stock (1)                   |   |      | -          |   |      |   | - |   |
|            Stock Options (2) |   |      | -          |   |      |   | - |   |
|            Warrants (3)      |   |      | -          |   |      |   | - |   |
| Diluted weighted average common shares outstanding         |   |      | 42,455,200 |   |      |   | 41,142,729 |   |
| Diluted net income (loss) per share                        |   | $         | (0.00      | )      |      | $      | (0.03 | ) |

----

| (1)       | At March 31, 2011, there were 626,004 shares of Series A Convertible Preferred Stock outstanding and 722,488 at March 31, 2010. Using the preferred stock conversion ratio of 12:1, the common stock equivalents attributable to these preferred shares 7,512,048 at March 31, 2011 and 8,669,856 at March 31, 2010.  These common stock equivalents were anti-dilutive at March 31, 2011 and 2010, and therefore have been excluded from diluted earnings per share.  |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  (2) | At March 31, 2011, there were common stock equivalents attributable to outstanding stock options of 8,446,914 common shares and 7,259,914 common shares at March 31, 2010. The stock options are anti-dilutive at March 31, 2011, and 2010 due to the loss, and therefore have been excluded from diluted earnings per share.                                                                                                                                                    |
| (3)       | At March 31, 2011 and 2010, there were common stock equivalents of 18,498,636 and 18,895,254 common shares attributable to warrants, respectively.  The warrants expire on September 30, 2011, and have an exercise price of $.14 to $.30 per share. The warrants are anti-dilutive at March 31, 2011 and 2010 due to their exercise price being above the current trading price, and therefore have been excluded from diluted earnings per share.                    |

| 9.   | Subsequent Event |
|----------------|------------------|

----

| ·   | 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 with patients 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 we no 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 |
|----------------------------------|

----

|          |   |  Three Months Ended March 31, 2011 |    |
|---------------|--------|-----------------------------------------|---------|
|          |   |                                    |    |   | Equipment |   |   | Equipment |   |   | Service/ |   |
|          |   | Total                                   |    |   | Sales |   |   | Rental |   |   | Contract |   |
|          |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Revenue       |   | $                                       | 347,181 |   |   | $ | 293,300 |   |   | $ | 11,399 |   |   | $ | 42,482 |   |
| Cost of Sales |   |                                    | 84,766  |   |   |   | 73,120 |   |   |   | 1,396 |   |   |   | 10,250 |   |
| Gross Profit  |   | $                                       | 262,415 |   |   | $ | 220,180 |   |   | $ | 10,003 |   |   | $ | 32,232 |   |
|          |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
|          |   |  Three Months Ended March 31, 2010 |    |
|          |   |                                    |    |   |   | Equipment |   |   | Equipment |   |   | Service/ |   |
|          |   | Total                                   |    |   | Sales |   |   | Rental |   |   | Contract |   |
|          |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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,          |    |
|                                                                                                                                                      |   | 2011                     |    |   |   | 2010 |   |
| Wages, expenses, benefits before deferred compensation                                                                                                    |   | $                        | 127,060 |   |   |   | $ | 139,665 |   |
| Deferred compensation..........................................                                       |   |                     | 5,250   |   |   |   |   | 198,750 |   |
| Outside consultants.......................................................... |   |                     | 39,269  |   |   |   |   | 13,158 |   |
| Patents and related expenses                                                                                                                              |   |                     | 1,400   |   |   |   |   | - |   |
| Research & Development.....................................................       |   |                     | 1,500   |   |   |   |   | - |   |
| Rent (building/equipment) and utilities.....................................                              |   |                     | 21,283  |   |   |   |   | 14,186 |   |
| Insurance-general and directors/officers liability........................                                                |   |                     | 5,678   |   |   |   |   | 5,614 |   |
| Selling, marketing and promotion, including applicable wages and sales commissions.....                                                               |   |                     | 101,975 |   |   |   |   | 10,000 |   |
| Legal and audit/accounting fees............................................                       |   |                     | 7,872   |   |   |   |   | 6,742 |   |
| Depreciation and amortization..............................................                   |   |                     | 264     |   |   |   |   | 317 |   |
| Stock option expense........................................................      |   |                     | 34,125  |   |   |   |   | 30,251 |   |
| Other-general and administrative...........................................                       |   |                     | 20,393  |   |   |   |   | 21,705 |   |
|             Total selling, general and administrative expenses.............   |   | $                        | 366,069 |   |   |   | $ | 440,388 |   |

----

|          |   |  Nine Months Ended March 31, 2011 |                                   |
|---------------|--------|----------------------------------------|----------------------------------------|
|          |   |                                   |                                   |   | Equipment |   |   | Equipment |   |   | Service/ |   |
|          |   | Total                                  |                                   |   | Sales |   |   | Rental |   |   | Contract |   |
|          |   |                                   |                                   |   |   |   |   |   |   |   |   |   |
| Revenue       |   | $                                      | 1,062,375                              |   |   | $ | 900,200 |   |   | $ | 34,970 |   |   | $ | 127,205 |   |
| Cost of Sales |   |                                   | 215,792                                |   |   |   | 189,292 |   |   |   | 3,272 |   |   |   | 23,228 |   |
| Gross Profit  |   | $                                      | 846,583                                |   |   | $ | 710,908 |   |   | $ | 31,698 |   |   | $ | 103,977 |   |
|          |   |                                   |                                   |   |   |   |   |   |   |   |   |   |   |   |    |   |
|          |   |                                   |  Nine Months Ended March 31, 2010 |   |
|          |   |                                   |                                   |   |   | Equipment |   |   | Equipment |   |   | Service/ |   |
|          |   | Total                                  |                                   |   | Sales |   |   | Rental |   |   | Contract |   |
|          |   |                                   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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 |   |

|                                                                                                                                                        |   | Nine Months Ended |     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|----------|
|                                                                                                                                                        |   | March 31,         |     |
|                                                                                                                                                        |   | 2011              |     |   | 2010 |   |
| Wages, expenses, benefits before deferred compensation...............                                                                   |   | $                 | 330,896  |   |   | $ | 401,133 |   |
| Deferred compensation........................................................           |   |              | (256,500 | ) |   |   | 1,322,250 |   |
| Outside consultants............................................................ |   |              | 171,678  |   |   |   | 26,525 |   |
| Patents and related expenses.................................................                   |   |              | 4,210    |   |   |   | 2,875 |   |
| Research & Development.....................................................         |   |              | 5,646    |   |   |   | 1,470 |   |
| Rent (building/equipment) and utilities....................................                                 |   |              | 48,474   |   |   |   | 40,772 |   |
| Insurance-general and directors/officers liability.........................                                                 |   |              | 16,219   |   |   |   | 15,227 |   |
| Selling, marketing and promotion, including applicable wages and sales commissions.                                                                         |   |              | 353,000  |   |   |   | 152,740 |   |
| Legal and audit/accounting fees..............................................                       |   |              | 38,248   |   |   |   | 38,193 |   |
| Depreciation and amortization...............................................                    |   |              | 898      |   |   |   | 2,074 |   |
| Stock option expense.........................................................       |   |              | 95,744   |   |   |   | 76,001 |   |
| Other-general and administrative...........................................                         |   |              | 67,568   |   |   |   | 62,635 |   |
|             Total selling, general and administrative expenses.............     |   | $                 | 876,081  |   |   | $ | 2,141,895 |   |

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|                                                 |                                                                                                                                                  |                        |   |    |
|------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|--------|---------|
|                                                 |                                                                                                                                                  | Nine Months Ended March 31, |
|                                                 |                                                                                                                                                  | 2011                        |   | 2010    |
| Net cash provided by (used in) operating activities: |                                                                                                                                                  |                        |   |
|                                                 |                                                                                                                                                  |                        |   | .       |
|                                                 | Net income(loss), as adjusted for non-cash items (expenses associated with deferred stock based compensation, depreciation, and stock option expense) | ($179,207)                  |   | $52,752 |
|                                                 |                                                                                                                                                  |                        |   |    |
| -----                                                | (Increase)Decrease in accounts receivable:                                                                                                            |                        |   |    |
|                                                 | The decrease in outstanding customer balances from sales, and less sales at quarter end.                                                              | 33,280                      |   | 37,615  |
|                                                 |                                                                                                                                                  |                        |   |    |
| -----                                                | (Increase)Decrease in inventory:                                                                                                                      |                        |   |    |
|                                                 | The decrease in inventory balances due to write-down of inventory value and selling off inventory with limited new purchases.                         | 36,391                      |   | (9,714) |
|                                                 |                                                                                                                                                  |                        |   |    |
| -----                                                | (Increase)Decrease in prepaids and other assets:                                                                                                      | (9,230)                     |   | (4,684) |
|                                                 |                                                                                                                                                  |                        |   |    |
| -----                                                | Increase(Decrease) in accrued payroll and payroll taxes:                                                                                              |                        |   |    |
|                                                 | Expense amounts that relate to the amount of accrued vacation, accrued payroll, and accrued payroll taxes.                                            | (5,536)                     |   | 54,324  |
|                                                 |                                                                                                                                                  |                        |   |    |
| -----                                                | Increase(Decrease) in deferred revenue:                                                                                                               |                        |   |    |
|                                                 | Cash received from warranty maintenance contracts, is amortized over the length of the contract.                                                      | (46,261)                    |   | 64,054  |
|                                                 |                                                                                                                                                  |                        |   |    |
| -----                                                | Increase(Decrease) in accrued commissions:                                                                                                            |                        |   |    |
|                                                 | Expense amounts to commissions paid to our third-party distributors.                                                                                  | (84,425)                    |   | 0       |
|                                                 |                                                                                                                                                  |                        |   |    |

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| 31.1   | Certification of Chief Executive Officer pursuant to |
|------------------|------------------------------------------------------|

| 31.2   | Certification of Chief Financial Officer pursuant to |
|------------------|------------------------------------------------------|

| 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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| 1.   | I have reviewed this Form 10-Q of Hypertension Diagnostics, Inc.; |
|----------------|-------------------------------------------------------------------|

| 2.   | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | The small business issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small business issuer and have: |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | The small business issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer’s auditors and the audit committee of the small business issuer’s board of directors (or persons performing the equivalent functions): |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 1.   | I have reviewed this Form 10-Q of Hypertension Diagnostics, Inc.; |
|----------------|-------------------------------------------------------------------|

| 2.   | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report; |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | The small business issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small business issuer and have: |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | The small business issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer’s auditors and the audit committee of the small business issuer’s board of directors (or persons performing the equivalent functions): |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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