----

----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      DC 20549**

**FORM      10-Q**

| **x** | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                SECURITIES  EXCHANGE ACT OF                1934** |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| For                the quarterly period ended | June                30, 2007 |
|-----------------------------------------------|------------------------------|

| **o** | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------|

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

| ORTHOLOGIC                CORP.                                                      |
|--------------------------------------------------------------------------------------|
| (Exact                name of registrant as specified in its                charter) |

| Delaware                                                                      | 86-0585310                                       |
|-------------------------------------------------------------------------------|--------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) | (IRS                Employer Identification No.) |
|                                                                          |                                             |
| 1275                W. Washington Street, Tempe, Arizona                      | 85281                                            |
| (Address                of principal executive offices)                       | (Zip                Code)                        |

| (602)                286-5520                                                                                    |
|------------------------------------------------------------------------------------------------------------------|
| (Registrant's                telephone number, including area code)                                              |
|                                                                                                             |
|                                                                                                             |
| (Former                name, former address and former fiscal year, if changed since last                report) |

**o**

** **

| Large                  accelerated filer  **o** | Accelerated                  filer  x | Non-accelerated                  filer  **o** |
|-----------------------------------------------------------|-------------------------------------------------|---------------------------------------------------------|

**o**

----

----

----

**ORTHOLOGIC      CORP.**

**(A      Development Stage Company)**

**INDEX**

|                   |                                 |                                                                                                                       | PageNo. |
|------------------------|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------|---------|
| Part                I  | Financial                Information |                                                                                                                       |
|                   |                                 |                                                                                                                       |    |
|                   | Item                1.               | Financial                Statements (Unaudited)                                                                            |    |
|                   |                                 |                                                                                                                       |    |
|                   |                                 | Condensed                Balance Sheets as of June 30, 2007 and December 31,                2006                           | 3       |
|                   |                                 |                                                                                                                       |    |
|                   |                                 | Condensed                Statements of Operations for the three and six                months ended June 30, 2007 and 2006 | 4       |
|                   |                                 |                                                                                                                       |    |
|                   |                                 | Condensed                Statements of Cash Flow for the six months                ended June 30, 2007 and 2006            | 5       |
|                   |                                 |                                                                                                                       |    |
|                   |                                 | Notes                to Condensed Financial Statements                                                                     | 6       |
|                   |                                 |                                                                                                                       |    |
|                   | Item                2.               | Management’s                Discussion and Analysis of Financial Condition                and Results of Operations  | 12      |
|                   |                                 |                                                                                                                       |    |
|                   | Item                4.               | Controls                and Procedures                                                                                     | 16      |
|                   |                                 |                                                                                                                       |    |
|                   |                                 |                                                                                                                       |    |
| Part                II | Other                Information     |                                                                                                                       |
|                   |                                 |                                                                                                                       |    |
|                   | Item                1A.              | Risk                Factors                                                                                                | 17      |
|                   |                                 |                                                                                                                       |    |
|                   | Item                4.               | Submission                of Matters to a Vote of Security                Holders                                          | 18      |
|                   |                                 |                                                                                                                       |    |
|                   | Item                6.               | Exhibits                                                                                                                   | 18      |
|                   |                                 |                                                                                                                       |    |
|                   |                                 |                                                                                                                       |    |
|                   | EXHIBIT                31.1          |                                                                                                                       |
|                   | EXHIBIT                31.2          |                                                                                                                       |
|                   | EXHIBIT                32            |                                                                                                                       |

----

*Index*

**PART      I – Financial Information**

**Item1.  Financial      Statements**

**ORTHOLOGIC      CORP.**

**(A      Development Stage Company)**

**CONDENSED      BALANCE SHEETS**

***(in      thousands, except share and per share data)***

|                                                                                                                                  |   | **June                  30,****2007** |     |   | **December                  31,****2006** |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|----------|--------|-------------------------------------------|--------|
|                                                                                                                                  |   | **(Unaudited)**                       |     |   |                                      |   |
| **ASSETS**                                                                                                                            |   |                                  |     |   |                                      |   |
| Current                assets                                                                                                         |   |                                  |     |   |                                      |   |
| Cash                and cash equivalents                                                                                              |   | $                                     | 14,295   |   |                                      | $      | 18,047 |   |
| Short-term                investments                                                                                                 |   |                                  | 23,858   |   |                                      |   | 35,977 |   |
| Prepaids                and other current assets                                                                                      |   |                                  | 1,160    |   |                                      |   | 1,950 |   |
|                                                                                                                                  |   |                                  |     |   |                                      |   |   |   |
| Total                current assets                                                                                                   |   |                                  | 39,313   |   |                                      |   | 55,974 |   |
|                                                                                                                                  |   |                                  |     |   |                                      |   |   |   |
| Furniture                and equipment, net                                                                                           |   |                                  | 369      |   |                                      |   | 409 |   |
| Long-term                investments                                                                                                  |   |                                  | 26,103   |   |                                      |   | 16,206 |   |
|                                                                                                                                  |   |                                  |     |   |                                      |   |   |   |
| **Total                assets**                                                                                                       |   | $                                     | 65,785   |   |                                      | $      | 72,589 |   |
|                                                                                                                                  |   |                                  |     |   |                                      |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                               |   |                                  |     |   |                                      |   |   |   |
|                                                                                                                                  |   |                                  |     |   |                                      |   |   |   |
| Current                liabilities                                                                                                    |   |                                  |     |   |                                      |   |   |   |
| Accounts                payable                                                                                                       |   | $                                     | 420      |   |                                      | $      | 1,621 |   |
| Accrued                compensation                                                                                                   |   |                                  | 335      |   |                                      |   | 584 |   |
| Accrued                clinical                                                                                                       |   |                                  | 95       |   |                                      |   | 133 |   |
| Accrued                severance and other restructuring costs                                                                        |   |                                  | 166      |   |                                      |   | 366 |   |
| Other                accrued liabilities                                                                                              |   |                                  | 519      |   |                                      |   | 737 |   |
|                                                                                                                                  |   |                                  |     |   |                                      |   |   |   |
| Total                current liabilities                                                                                              |   |                                  | 1,535    |   |                                      |   | 3,441 |   |
|                                                                                                                                  |   |                                  |     |   |                                      |   |   |   |
|                                                                                                                                  |   |                                  |     |   |                                      |   |   |   |
| **Stockholders'                Equity**                                                                                               |   |                                  |     |   |                                      |   |   |   |
|                                                                                                                                  |   |                                  |     |   |                                      |   |   |   |
| Common                Stock  $.0005 par value;                                                                              |   |                                  | 21       |   |                                      |   | 21 |   |
| 100,000,000                shares authorized; 41,670,650 and   41,564,291 shares                issued and outstanding |   |                                  |     |   |                                      |   |   |   |
| Additional                paid-in capital                                                                                             |   |                                  | 188,591  |   |                                      |   | 188,236 |   |
| Accumulated                deficit                                                                                                    |   |                                  | (124,362 | )      |                                      |   | (119,109 | ) |
|                                                                                                                                  |   |                                  |     |   |                                      |   |   |   |
| Total                stockholders' equity                                                                                             |   |                                  | 64,250   |   |                                      |   | 69,148 |   |
|                                                                                                                                  |   |                                  |     |   |                                      |   |   |   |
| **Total                liabilities and stockholders' equity**                                                                         |   | $                                     | 65,785   |   |                                      | $      | 72,589 |   |

*See      notes to unaudited condensed financial statements*

----

*Index*

**OrthoLogic      Corp.**

**(A      Development Stage Company)**

**CONDENSED      STATEMENTS OF OPERATIONS**

***(in      thousands, except  per share data)***

**(Unaudited)**

|                                                                                                                                           |   |                                         |   |   |                                       |   |   |                           |   |   |   |   |   | As                  a Development     |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|--------|--------------------------------------------|--------|--------|--------------------------------|--------|--------|--------|--------|--------|---------------------------------------|--------|
|                                                                                                                                           |   | Three                  months ended June 30, |   |   | Six                  months ended June 30, |   |   | Stage                  Company |   |
|                                                                                                                                           |   | 2007                                         |   |   | 2006                                       |   |   | 2007                           |   |   | 2006   |   |   | 8/5/2004                  - 6/30/2007 |   |
|                                                                                                                                           |   |                                         |   |   |                                       |   |   |                           |   |   |   |   |   |                                  |   |
| OPERATING                  EXPENSES                                                                                                            |   |                                         |   |   |                                       |   |   |                           |   |   |   |   |   |                                  |   |
| General                  and administrative                                                                                                    |   | $                                            | 928    |   |                                       | $      | 2,061  |                           |   | $      | 1,908  |   |   | $                                     | 4,153  |   |   | $ | 15,254 |   |
| Research                  and development                                                                                                      |   |                                         | 2,252  |   |                                       |   | 4,208  |                           |   |   | 5,070  |   |   |                                  | 10,924 |   |   |   | 58,255 |   |
| Purchased                  in-process research and development                                                                                 |   |                                         | -      |   |                                       |   | 34     |                           |   |   | -      |   |   |                                  | 8,469  |   |   |   | 34,311 |   |
| Other                  gains                                                                                                                   |   |                                         | -      |   |                                       |   | -      |                           |   |   | -      |   |   |                                  | -      |   |   |   | (375 | ) |
| Total                  operating expenses                                                                                                      |   |                                         | 3,180  |   |                                       |   | 6,303  |                           |   |   | 6,978  |   |   |                                  | 23,546 |   |   |   | 107,445 |   |
|                                                                                                                                           |   |                                         |   |   |                                       |   |   |                           |   |   |   |   |   |                                  |   |   |   |   |   |   |
| Interest                  and other income, net                                                                                                |   |                                         | (841   | )      |                                       |   | (867   | )                              |   |   | (1,725 | )      |   |                                  | (1,629 | ) |   |   | (8,999 | ) |
| Loss                  from continuing operations                                                                                               |   |                                         | 2,339  |   |                                       |   | 5,436  |                           |   |   | 5,253  |   |   |                                  | 21,917 |   |   |   | 98,446 |   |
| Income                  tax expense                                                                                                            |   |                                         | -      |   |                                       |   | 1,106  |                           |   |   | -      |   |   |                                  | 1,106  |   |   |   | 356 |   |
|                                                                                                                                           |   |                                         |   |   |                                       |   |   |                           |   |   |   |   |   |                                  |   |   |   |   |   |   |
| Loss                  from continuing operations                                                                                               |   |                                         | 2,339  |   |                                       |   | 6,542  |                           |   |   | 5,253  |   |   |                                  | 23,023 |   |   |   | 98,802 |   |
|                                                                                                                                           |   |                                         |   |   |                                       |   |   |                           |   |   |   |   |   |                                  |   |   |   |   |   |   |
| Discontinued                  operations - net gain on sale of the bone device business, net                  of taxes                  ($267) |   |                                         | -      |   |                                       |   | -      |                           |   |   | -      |   |   |                                  | -      |   |   |   | (2,202 | ) |
|                                                                                                                                           |   |                                         |   |   |                                       |   |   |                           |   |   |   |   |   |                                  |   |   |   |   |   |   |
| NET                  LOSS                                                                                                                      |   | $                                            | 2,339  |   |                                       | $      | 6,542  |                           |   | $      | 5,253  |   |   | $                                     | 23,023 |   |   | $ | 96,600 |   |
|                                                                                                                                           |   |                                         |   |   |                                       |   |   |                           |   |   |   |   |   |                                  |   |   |   |   |   |   |
| Per                  Share Information:                                                                                                        |   |                                         |   |   |                                       |   |   |                           |   |   |   |   |   |                                  |   |   |   |   |   |   |
| Net                  loss, basic and diluted                                                                                                   |   | $                                            | 0.06   |   |                                       | $      | 0.16   |                           |   | $      | 0.13   |   |   | $                                     | 0.58   |   |   |   |   |   |
| Basic                  and diluted shares outstanding                                                                                          |   |                                         | 41,637 |   |                                       |   | 40,622 |                           |   |   | 41,616 |   |   |                                  | 39,962 |   |   |   |   |   |

*See      notes to unaudited condensed      financial statements*

----

*Index*

**ORTHOLOGIC      CORP.**

**(A      Development Stage Company)**

**CONDENSED      STATEMENTS OF CASH FLOW**

***(in      thousands)***

**(Unaudited)**

|                                                                |   | Six                months endedJune                30, |    |   | As                a DevelopmentStage                CompanyAugust                5th 2004 - |   |
|---------------------------------------------------------------------|--------|--------------------------------------------------------|---------|--------|---------------------------------------------------------------------------------------------|--------|
|                                                                |   | 2007                                                   |    |   | 2006                                                                                        |   |   | June                30, 2007 |   |
| OPERATING                ACTIVITIES                                 |   |                                                   |    |   |                                                                                        |   |   |   |   |
| Net                loss                                             |   | $                                                      | (5,253  | )      |                                                                                        | $      | (23,023 | ) |   | $ | (96,600 | ) |
| Non                cash items:                                      |   |                                                   |    |   |                                                                                        |   |   |   |   |   |   |   |
| Deferred                tax expense                                 |   |                                                   | -       |   |                                                                                        |   | 1,106 |   |   |   | 770 |   |
| Depreciation                and amortization                        |   |                                                   | 39      |   |                                                                                        |   | 507 |   |   |   | 3,304 |   |
| Non-cash                stock compensation                          |   |                                                   | 354     |   |                                                                                        |   | 1,652 |   |   |   | 3,297 |   |
| Gain                on sale of bone device business                 |   |                                                   | -       |   |                                                                                        |   | - |   |   |   | (2,298 | ) |
| In-process                research and development                  |   |                                                   | -       |   |                                                                                        |   | 8,469 |   |   |   | 34,311 |   |
| Change                in other operating items:                     |   |                                                   |    |   |                                                                                        |   |   |   |   |   |   |   |
| Prepaids                and other current assets                    |   |                                                   | 791     |   |                                                                                        |   | 310 |   |   |   | 550 |   |
| Accounts                payable                                     |   |                                                   | (1,201  | )      |                                                                                        |   | (251 | ) |   |   | (551 | ) |
| Accrued                liabilities                                  |   |                                                   | (605    | )      |                                                                                        |   | (1,105 | ) |   |   | (1,538 | ) |
| Cash                flows used in operating activities              |   |                                                   | (5,875  | )      |                                                                                        |   | (12,335 | ) |   |   | (58,755 | ) |
| INVESTING                ACTIVITIES                                 |   |                                                   |    |   |                                                                                        |   |   |   |   |   |   |   |
| Expenditures                for furniture and equipment, net        |   |                                                   | (99     | )      |                                                                                        |   | (83 | ) |   |   | (614 | ) |
| Proceeds                from sale of assets                         |   |                                                   | -       |   |                                                                                        |   | - |   |   |   | 7,000 |   |
| Cash                paid for assets of AzERx/CBI                    |   |                                                   | -       |   |                                                                                        |   | (390 | ) |   |   | (4,058 | ) |
| Cash                paid for patent assignment rights               |   |                                                   | -       |   |                                                                                        |   | (100 | ) |   |   | (650 | ) |
| Purchases                of investments                             |   |                                                   | (23,906 | )      |                                                                                        |   | (24,463 | ) |   |   | (169,800 | ) |
| Maturities                of investments                            |   |                                                   | 26,128  |   |                                                                                        |   | 34,377 |   |   |   | 177,777 |   |
| Cash                flows provided by investing activities          |   |                                                   | 2,123   |   |                                                                                        |   | 9,341 |   |   |   | 9,655 |   |
| FINANCING                ACTIVITIES                                 |   |                                                   |    |   |                                                                                        |   |   |   |   |   |   |   |
| Net                proceeds from stock option exercises             |   |                                                   | -       |   |                                                                                        |   | 2,962 |   |   |   | 4,612 |   |
| Net                proceeds from sale of stock                      |   |                                                   | -       |   |                                                                                        |   | 1,913 |   |   |   | 3,376 |   |
| Cash                flows provided by financing activities          |   |                                                   | -       |   |                                                                                        |   | 4,875 |   |   |   | 7,988 |   |
|                                                                |   |                                                   |    |   |                                                                                        |   |   |   |   |   |   |   |
| NET                (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS |   |                                                   | (3,752  | )      |                                                                                        |   | 1,881 |   |   |   | (41,112 | ) |
| CASH                AND CASH EQUIVALENTS, BEGINNING OF PERIOD       |   |                                                   | 18,047  |   |                                                                                        |   | 35,111 |   |   |   | 55,407 |   |
| CASH                AND CASH EQUIVALENTS, END OF PERIOD             |   | $                                                      | 14,295  |   |                                                                                        | $      | 36,992 |   |   | $ | 14,295 |   |

| **Supplemental                Disclosure of Non-Cash Investing Activities** |   | **AzERx** |   |   | **AzERx                and CBI** |   |
|-----------------------------------------------------------------------------|--------|-----------|--------|--------|----------------------------------|--------|
| **AzERx/CBI                Acquisition**                                    |   |      |   |   |                             |   |
| Current                assets acquired                                      |   | $         | -      |   |                             | $      | 29 |   |
| Patents                acquired                                             |   |      | -      |   |                             |   | 2,142 |   |
| Liabilities                acquired, and accrued acquisition costs          |   |      | (315   | )      |                             |   | (457 | ) |
| Original                investment reversal                                 |   |      | -      |   |                             |   | (750 | ) |
| In-process                research and development acquired                 |   |      | 8,469  |   |                             |   | 34,311 |   |
| Common                stock issued for acquisition                          |   |      | (7,764 | )      |                             |   | (31,217 | ) |
| Cash                paid for acquisition                                    |   | $         | 390    |   |                             | $      | 4,058 |   |

*See      notes to unaudited condensed financial statements*

----

*Index*

**ORTHOLOGIC      CORP.**

**(A      Development Stage Company)**

**NOTES      TO UNAUDITED CONDENSED FINANCIAL STATEMENTS**

**June      30, 2007**

**OVERVIEW      OF BUSINESS**

**Description      of the business**

**Company      History**

----

*Index*

**Financial      Statement Presentation**

----

*Index*

| **A.** | **STOCK                BASED COMPENSATION** |
|--------|---------------------------------------------|

----

*Index*

**Stock      Options issued prior to December 31, 2005**

**2006      Stock Options**

**2007      Stock Options**

|                                      | Three                months endedMarch                31, 2007 | Three                months endedJune                30, 2007 |
|-------------------------------------------|----------------------------------------------------------------|---------------------------------------------------------------|
| Risk                free interest rate    | 4.6%                                                           | 4.87%                                                         |
| Volatility                                | 66%                                                            | 61%                                                           |
| Expected                term from vesting | 2.8                Years                                       | 2.8                Years                                      |
| Dividend                yield             | 0%                                                             | 0%                                                            |

----

*Index*

**2007      Awards of Shares of Common Stock**

**Summary**

|                                                                |   | Number                ofOptions |      |   | WeightedAverageExerciseprice |   |   | WeightedAverageRemainingContractualterm(years) |   |
|---------------------------------------------------------------------|--------|---------------------------------|-----------|--------|------------------------------|--------|--------|------------------------------------------------|--------|
| Options                outstanding December 31, 2006                |   |                            | 3,438,126 |   |                         | $      | 3.69   |                                           |   |   |   |
| Plus:                Options granted                                |   |                            | 128,889   |   |                         |   | 1.47   |                                           |   |   |   |
| Less:                                                               |   |                            |      |   |                         |   |   |                                           |   |   |   |
| Options                exercised                                    |   |                            | -         |   |                         |   |   |                                           |   |   |   |
| Options                expired/forfeited                            |   |                            | (323,050  | )      |                         |   | 4.59   |                                           |   |   |   |
| Options                outstanding at June 30, 2007                 |   |                            | 3,243,965 |   |                         |   | 3.51   |                                           |   |   | 6.65 |   |
| Options                exercisable at June 30, 2007                 |   |                            | 2,321,773 |   |                         |   | 3.80   |                                           |   |   | 5.79 |   |
| Options                vested and expected to vest at June 30, 2007 |   |                            | 3,031,365 |   |                         |   | 3.54   |                                           |   |   | 6.50 |   |

----

*Index*

| Unvested                Shares                      |   | Number                ofOptions |    |   | WeightedaverageGrant                dateFair                Value |   |
|-----------------------------------------------------|--------|---------------------------------|---------|--------|-------------------------------------------------------------------|--------|
| Unvested                shares at December 31, 2006 |   |                            | -       |   |                                                              | $      | - |   |
| Granted                                             |   |                            | 181,057 |   |                                                              | $      | 1.46 |   |
| Vested                                              |   |                            | (76,159 | )      |                                                              | $      | 1.51 |   |
| Canceled/forfeited                                  |   |                            | (17,483 | )      |                                                              | $      | 1.43 |   |
| Unvested                shares at June 30, 2007     |   |                            | 87,415  |   |                                                              | $      | 1.43 |   |

**Warrants**

| **B.** | **AUTHORIZED                PREFERRED STOCK AND NEW RIGHTS                AGREEMENT** |
|--------|---------------------------------------------------------------------------------------|

----

*Index*

| **C.** | **FACILITY                LEASE** |
|--------|-----------------------------------|

| **Item                2.** | **Management’s                Discussion and Analysis of Financial Condition and Results of                Operations.** |
|----------------------------|--------------------------------------------------------------------------------------------------------------------------------|

**Overview      of the Business**

----

*Index*

**Chrysalin®      (TP508)**

*Wound Repair and      Regeneration*

*post hoc*
*post      hoc*

**Chrysalin      Product Platform Status**

|   | · | Demonstration                of statistically significant healing in the primary endpoint and                multiple                secondary endpoints within the osteopenic female cohort from the                Phase 3                distal radius fracture study.  This is a patient population                where bone tissue was physiologically                compromised. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Demonstration                of statistically significant healing with respect to wound closure                endpoints in the Phase 1/2 diabetic foot ulcer trial, an example                of                Chrysalin’s biologic activity in compromised dermal                tissue. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

|   | · | Laboratory                experiments tying Chrysalin to potential modulation of the health                of                endothelial tissue in blood vessels and other mechanism-of-action                studies. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Evaluations                are ongoing as to the appropriate pre-clinical and clinical studies                which                would serve to strengthen our portfolio and partnering                possibilities. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**AZX100**

**Results      of Operations Comparing Three-Month Period Ended June 30, 2007 to the      Corresponding Period in 2006**

*General      and Administrative (“G&A”) Expenses:*

*Research      and Development Expenses:*

*Interest      and Other Income, Net*

*Net      Loss*

----

*Index*

**Results      of Operations Comparing Six-Month Period Ended June 30, 2007 to the      Corresponding Period in 2006**

*General      and Administrative (“G&A”) Expenses:*

*Research      and Development Expenses:*

*Interest      and Other Income, Net*

*Net      Loss*

----

*Index*

**Liquidity      and Capital Resources**

| **Item                4.** | **Controls                and Procedures** |
|----------------------------|--------------------------------------------|

----

*Index*

**Part      II– Other Information**

| **Item                1A.** | **Risk                Factors** |
|-----------------------------|---------------------------------|

|   | · | unfavorable                results of our product candidate development                efforts; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | unfavorable                results of our pre-clinical or clinical                testing; |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | delays                in obtaining, or failure to obtain FDA                approvals; |
|--------|--------|----------------------------------------------------------------------------------------|

|   | · | increased                regulation by the FDA and other                agencies; |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | the                introduction of competitive                products; |
|--------|--------|-------------------------------------------------------------------------|

|   | · | impairment                of license, patent or other proprietary                rights; |
|--------|--------|------------------------------------------------------------------------------------------|

|   | · | failure                to achieve market acceptance of our                products; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | the                impact of present and future collaborative agreements;                and |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | failure                to successfully implement our drug development                strategy. |
|--------|--------|------------------------------------------------------------------------------------------------|

----

*Index*

| **Item                4.** | Submission                of Matters to a Vote of Security                Holders |
|----------------------------|-----------------------------------------------------------------------------------|

| **Item                6.** | Exhibits |
|----------------------------|----------|

----

*Index*

**SIGNATURES**

| **ORTHOLOGIC                CORP.**      |   |
|------------------------------------------|--------|
| (Registrant)                             |   |   |   |
|                                     |   |   |   |
| Signature                                |   | Title | Date |
|                                     |   |   |   |
| /s/                John M. Holliman, III |   | Executive                Chairman | August                8, 2007 |
| John                M. Holliman, III     |   | (Principal                Executive Officer) |   |
|                                     |   |   |   |
| /s/                Les M. Taeger         |   | Senior                Vice-President and Chief | August                8, 2007 |
| Les                M. Taeger             |   | Financial                Officer |   |
|                                     |   | (Principal                Financial and Accounting Officer) |   |

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*Index*

**OrthoLogic          Corp.**

**(the          “Company”)**

**Exhibit          Index to Quarterly Report on Form 10-Q**

**For          the Period Ended June 30, 2007**

| **Exhibit****No.** |   | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | **Incorporated                    by Reference To:**                                                                                                                                                                              |   | **Filed****Herewith** |
|--------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|
|               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                              |   |                  |
| 3.1                |   | Amended                    and Restated Certificate of Incorporation, executed April 15,                    2005                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Exhibit                    3.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended                    March 31, 2005, filed with the SEC on May 10, 2005                                                   |   |                  |
|               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                              |   |                  |
| 3.2                |   | Amended                    and Restated Certificate of Designation of Series A Preferred                    Stock,                    executed June 19, 2007                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Exhibit                    3.1 to the Company’s Current Report on Form 8-K filed with the SEC on June                    25, 2007 (“June 2007 8-K”)                                                             |   |                  |
|               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                              |   |                  |
| 3.3                |   | Bylaws                    of the Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Exhibit                    3.4 to the Company’s Amendment No. 2 to Registration Statement on Form S-1                    (No.  33-47569) filed with the SEC on January 25,                    1993                |   |                  |
|               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                              |   |                  |
| 4.1                |   | Rights                    Agreement dated as of June 19, 2007, between the Company and                    The Bank of                    New York, and Exhibits A, B and C thereto                                                                                                                                                                                                                                                                                                                                                                                           |   | Exhibit                    4.1 to the June 2007 8-K                                                                                                                                                                               |   |                  |
|               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                              |   |                  |
| 4.2                |   | Class A                    Warrant Agreement dated February 24, 2006, between OrthoLogic                    Corp. and                    PharmaBio Development Inc.  (d/b/a NovaQuest)                                                                                                                                                                                                                                                                                                                                                                        |   | Exhibit                    4.1 to the Company’s Current Report on Form 8-K, filed with the SEC on                    March 3, 2006                                                                                          |   |                  |
|               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                              |   |                  |
| 4.3                |   | Amended                    and Restated Class B Warrant Agreement dated February 24, 2006,                    and                    amended and restated as of June 30, 2006, between OrthoLogic                    Corp. and                    PharmaBio Development Inc. (d/b/a NovaQuest) (asterisks located                    within                    exhibit denote information that has been deleted pursuant to                    a request for                    confidential treatment filed with the Securities and Exchange                    Commission) |   | Exhibit                    4.5 to the Company’s Amendment No. 1 to Registration Statement on Form S-3                    filed with the SEC on September 22, 2006 (the “September 22nd                    S-3”) |   |                  |
|               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                              |   |                  |
| 4.4                |   | Amended                    and Restated Class C Warrant Agreement dated February 24, 2006,                    and                    amended and restated as of June 30, 2006, between OrthoLogic                    Corp. and                    PharmaBio Development Inc. (d/b/a NovaQuest)                                                                                                                                                                                                                                                                               |   | Exhibit                    4.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended                    March 31, 2007, filed with the SEC on May 7, 2007                                                    |   |                  |
|               |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                              |   |                  |
| 4.5                |   | Amended                    and Restated Class D Warrant Agreement dated February 24, 2006,                    and amended                    and restated                    as of June 30, 2006, between OrthoLogic Corp. and PharmaBio Development                    Inc. (d/b/a NovaQuest) (asterisks located within exhibit denote                    information that has been deleted pursuant to a request for confidential                    treatment filed with the Securities and Exchange                    Commission)                                  |   | Exhibit                    4.7 to the September 22nd S-3                                                                                                                                                                          |   |                  |

----

*Index*

| **Exhibit****No.** |   | **Description**                                                                                                                                                                   |   | **Incorporated                    by Reference To:**                                                                                     |   | **Filed****Herewith** |
|--------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|
|               |   |                                                                                                                                                                              |   |                                                                                                                                     |   |                  |
| 4.6                |   | Class                    A Warrant Agreement dated June 30, 2006, between OrthoLogic Corp.                    and                    PharmaBio Development Inc. (d/b/a NovaQuest) |   | Exhibit                    4.1 to the Company’s Current Report on Form 8-K, filed with the SEC on                    July 6, 2006  |   |                  |
|               |   |                                                                                                                                                                              |   |                                                                                                                                     |   |                  |
| 10.1               |   | Lease                    Agreement dated July 19, 2007, by and between the Company and                    Phoenix                    Investors #13, L.L.C.                        |   | Exhibit                    10.1 to the Company’s Current Report on Form 8-K filed with the SEC on                    July 23, 2007 |   |                  |
|               |   |                                                                                                                                                                              |   |                                                                                                                                     |   |                  |
| 31.1               |   | Certification                    of Principal Executive Officer Pursuant to Securities Exchange                    Act Rule                    13a-14                             |   |                                                                                                                                     |   | X                     |
|               |   |                                                                                                                                                                              |   |                                                                                                                                     |   |                  |
| 31.2               |   | Certification                    of Chief Financial Officer Pursuant to Securities Exchange Act                    Rule                    13a-14                                 |   |                                                                                                                                     |   | X                     |
|               |   |                                                                                                                                                                              |   |                                                                                                                                     |   |                  |
| 32                 |   | Certification                    of Principal Executive Officer and Chief Financial Officer Pursuant                    to 18                    U.S.C. Section 1350*             |   |                                                                                                                                     |   |                  |
|               |   |                                                                                                                                                                              |   |                                                                                                                                     |   |                  |
|               |   | *                    Furnished herewith                                                                                                                                           |   |                                                                                                                                     |   |                  |

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