UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-QSB  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2007  Commission File Number 033-19411-C   TETRIDYN SOLUTIONS, INC.(Exact name of small business issuer as specified in its charter)Nevada
        20-5081381(State or other jurisdiction of incorporation or organization)
        (I.R.S. Employer Identification No.)1651 Alvin Ricken Drive, Pocatello, ID  83201(Address of principal executive offices)(208) 232-4200(Issuers telephone number)n/a(Former name, former address and former fiscal year, if changed since last report)
   Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   YESxNO o  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   NOxYES o  State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date:As of August 6, 2007, issuer had 21,005,863 outstanding shares of common stock, par value $0.001.  Transitional Small Business Disclosure Format (check one):YES o NOx    TABLE OF CONTENTS   PagePART I  FINANCIAL INFORMATIONItem 1. Financial Statements.
        3Condensed Consolidated Balance Sheets (Unaudited)
        3Condensed Consolidated Statements of Operations (Unaudited)
        4Condensed Consolidated Statements of Cash Flows (Unaudited)
        5Notes to Condensed Consolidated Financial Statements (Unaudited)
        6Item 2. Managements Discussion and Analysis or Plan of Operation.
        11Item 3. Controls and Procedures
        16PART II  OTHER INFORMATIONItem 2. Unregistered Sales of Equity Securities
        17Item 6. Exhibits
        17Signature
        17
   2    PART I  FINANCIAL INFORMATION  ITEM 1. FINANCIAL STATEMENTS    3      4      5    TETRIDYN SOLUTIONS, INC. AND SUBSIDIARY Notes to the Condensed Consolidated Financial Statements (Unaudited)  Note 1  Basis of Presentation  The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information necessary for a comprehensive presentation of financial position and results of operations.  It is managements opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statements presentation. The results for the interim period are not necessarily indicative of the results to be expected for the year. The interim consolidated financial statements should be read in conjunction with the Companys annual report on Form 10-KSB for the year ended December 31, 2006, including the financial statements and notes thereto.  Note 2  Organization and Summary of Significant Accounting Policies  Nature of Business TetriDyn Solutions, Inc. (the Company) and its wholly owned and controlled subsidiaries specialize in providing technology and data integration solutions that increase professional or worker productivity through the use of customized data input screens, wireless technologies, and improved information technology (IT) processes. The Companys solutions are comprised of varying mixtures of proprietary software, third-party products, and IT consulting services. These solutions are currently focused in the healthcare industry, with new applications being developed for the food security and other industries.  Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, an Idaho corporation also named TetriDyn Solutions, Inc., and the equity method earnings of its 40% owned unconsolidated affiliate Southfork Solutions, Inc. As of June 30, 2007, Southfork Solutions, Inc., was inactive and did not have any assets or liabilities (see Note 6). Intercompany accounts and transactions have been eliminated in consolidation.  Cash and Cash Equivalents For purposes of the cash flow statements, the Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents.  Use of Estimates In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from these estimates.  Revenue Recognition The Companys AeroMD EMR software is provided as turnkey software that has been customized for specific medical specializations. The Company typically installs the software at the customers location for a fee and charges the customer a monthly license fee, based on the number of operating workstations, under a one- or two-year usage agreement. The customer is entitled to all systems upgrades during the one- or two-year license. At the end of their contracts, customers may continue using AeroMD  by  entering  into  a  new  license  with  the  Company. The Company also sells installation and
post-contract telephone support service contracts on an hourly basis. The Company does not provide any rights of return or warranties on its AeroMD EMR software.  6    TETRIDYN SOLUTIONS, INC. AND SUBSIDIARY Notes to the Condensed Consolidated Financial Statements (Unaudited)  Revenue from software licenses and related installation and support services is recognized when earned and realizable. Revenue is earned and realizable when persuasive evidence of an arrangement exists, services, if requested by the customers, have been rendered and are determinable, and collectibility is reasonably assured. Amounts received from customers prior to these criteria being met are deferred. Revenue from the sale of software is recognized when delivered to the customer or upon installation of the software if an installation contract exists. Revenue from post-contract telephone support service contracts is recognized as the services are provided, determined on an hourly basis. Revenue applicable to multiple-element fee arrangements is divided among the software, the installation, and post-contract support service contracts using vendor-specific objective evidence of fair value. Fair value is
evidenced by the prices charged when the software and the services are sold as separate products or arrangements.  The Company also provides information technology management consulting services. To date, these services have been primarily in the hospital industry. These services are paid for on a monthly basis and for a flat-fee, which is not cancelable or refundable. Revenue for these services is recognized over the contract period.  The Company had one customer that represented 75% and 74% of sales for the three- and six-month periods ended June 30, 2007, respectively. This same customer represented 75% and 74% of sales for the three- and six-month periods ended June 30, 2006, respectively. This customer is a regional hospital that contracted with the Company for IT consulting and management services.  Income Taxes We utilize the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities and on the amount of operating loss carry-forwards, and are measured using the enacted tax rates and laws that will be in effect when the temporary differences and carry-forwards are expected to reverse. An allowance against deferred tax assets is recorded when it is more likely than not that such tax benefits will not be realized.  Going Concern During the six months ended June 30, 2007, and the three months ended June 30, 2007, the Company suffered losses of $146,090 and $89,447, respectively. At June 30, 2007, the Company had a working capital deficit of $542,800 and a capital deficit of $710,581. These matters raise doubt about the Companys ability to continue. Management is attempting to obtain equity financing for use in the Companys operations. In addition, management is trying to expand the Companys sales and obtain profitable operations. The accompanying condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.  Business Segments The Company operates in one segment and therefore segment information is not presented.  Fair Value of Financial Instruments The carrying amounts of the Companys accounts receivable, restricted cash, accounts payable, notes payable to related parties, notes payable, and deferred compensation approximate fair value due to the relatively short period to maturity for these instruments.  7    TETRIDYN SOLUTIONS, INC. AND SUBSIDIARY Notes to the Condensed Consolidated Financial Statements (Unaudited)  Property and Equipment Property and equipment are recorded at cost. Maintenance, repairs, and renewals which neither materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets. Gains or losses on dispositions of property and equipment are included in the results of operations when realized.  Net Loss Per Common Share Basic and diluted net loss per common share is computed based upon the weighted-average stock outstanding as defined by Financial Accounting Standards No. 128, Earnings Per Share.  As of June 30, 2007 and 2006, 1,639,000 and 0 (zero), respectively, of common share equivalents were antidilutive and not used in the calculation of diluted net loss per share.  Stock-Based Compensation On May 15, 2006, at a special shareholders meeting, the Companys shareholders approved the 2006 Long-Term Incentive Plan under which up to 4,000,000 shares of common stock may be issued. The 2006 plan is to be administered either by the board of directors or by the appropriate committee to be appointed from time to time by such board of directors. Awards granted under the 2006 plan may be incentive stock options (ISOs) (as defined in the Internal Revenue Code), appreciation rights, options that do not qualify as ISOs, or stock bonus awards that are awarded to employees, officers, and directors who, in the opinion of the board or the committee, have contributed or are expected to contribute materially to the Companys success. In addition, at the discretion of the board of directors or the committee, options or bonus
stock may be granted to individuals who are not employees, officers or directors, but contribute to the Companys success.  Effective January 1, 2006, the Company adopted the provisions of Statement of Financial Accounting Standards, or SFAS, No. 123R,Share-Based Payment(SFAS 123R), for its stock-based compensation plan. Under SFAS 123R, all employee stock-based compensation is measured at the grant date, based on the fair value of the option or award, and is recognized as an expense over the requisite service, which is typically through the date the options or awards vest. The Company adopted SFAS 123R using the modified prospective method. Under this method, for all stock-based options and awards granted prior to January 1, 2006, that remain outstanding as of that date, compensation cost is recognized for the unvested portion over the remaining requisite service period, using the grant-date fair value measured under the original provisions of SFAS 123 for pro forma
and disclosure purposes. Furthermore, compensation costs will also be recognized for any awards issued, modified, repurchased, or cancelled after January 1, 2006.  As the result of adoption of SFAS 123R, the Company recognized $23,491 of compensation during three months ended June 30, 2007 relating to stock options granted in May 2007 and that were outstanding at June 30, 2007. Additionally, the Company recognized $11,350 of compensation during the three months ended June 30, 2007 relating to stock issued to outside directors and to an employee in May 2007 (see Note 4).  Recent Accounting PronouncementsIn September 2006, the FASB issued SFAS No. 157, Fair Value Measurements. The objective of SFAS 157 is to increase consistency and comparability in fair value measurements and to expand disclosures about fair value measurements. SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. SFAS 157 applies under other accounting pronouncements that require or permit fair value measurements and does not require any new fair value measurements. The provisions of SFAS No. 157 are effective for fair value measurements made in fiscal years beginning after November 15, 2007. The adoption of this statement is not expected to have
a material effect on the Companys future reported financial position or results of operations.  8    TETRIDYN SOLUTIONS, INC. AND SUBSIDIARY Notes to the Condensed Consolidated Financial Statements (Unaudited)  In February 2007, the Financial Accounting Standards Board (FASB) issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities  Including an Amendment of FASB Statement No. 115. This statement permits entities to choose to measure many financial instruments and certain other items at fair value. Most of the provisions of SFAS No. 159 apply only to entities that elect the fair value option. However, the amendment to SFAS No. 115 Accounting for Certain Investments in Debt and Equity Securities applies to all entities with available-for-sale and trading securities. SFAS No. 159 is effective as of the beginning of an entitys first fiscal year that begins after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins
on or before November 15, 2007, provided the entity also elects to apply the provision of SFAS No. 157, Fair Value Measurements.The adoption of this statement is not expected to have a material effect on the Companys financial statements.  Reclassifications Certain amounts in the 2006 information have been reclassified to conform to the 2007 presentation. These reclassifications had no impact on the Companys net loss or cash flows.  Note 3 Restatement of Financial Statements  The financial statements for the six months ended June 30, 2006, have been restated due to the Company determining that the shares paid to a consultant for services related to the 2006 reverse acquisition needed to be valued at the time of the reverse acquisition rather than at the time of the agreement due to contingencies in the agreement based upon completion of the reverse acquisition. This restatement caused the professional fees expense for the six months ended June 30, 2006, to be increased by $360,000, resulting in the net loss for the same six-month period being increased by $360,000.  Note 4  Stockholders Equity  In January 2007, the Company entered into a consulting agreement with a consultant for investor relations services. The agreement calls for the consultant to provide services for a period of one year. The Company sold the consultant 450,000 shares of common stock for cash proceeds of $450 and recorded the fair value of the common stock of $315,000. The fair value of the common stock will be recognized as an expense over the term of the agreement. For the three and six months ended June 30, 2007, the Company recognized consulting expense of $78,637 and $144,631 under the agreement, respectively.  In April 2007, the Company agreed to pay the amount owed to the stockholder discussed in Note 5, including all accrued interest, with the Companys common stock at the fair value on the date of the conversion. The balance including accrued interest due to the stockholder in April 2007 was $84,080. As a result, the Company issued 420,401 shares of common stock for the cancellation of the debt to the stockholder and no gain or loss was recognized on the conversion.  In May 2007, the Company granted 55,556 shares of common stock to each of its outside directors for their services valued at the fair value on the date of grant of $10,000. The Company also granted 15,000 shares of common stock to an employee as a bonus valued at the fair value on the date of grant of $1,350. Also in May 2007, the Company granted 1,639,000 stock options to employees, executives, and directors. Stock option compensation expense in the six months ended June 30, 2007 is the estimated fair value of options granted amortized on a straight-line basis over the requisite service period for the entire portion of the award.  9    TETRIDYN SOLUTIONS, INC. AND SUBSIDIARY Notes to the Condensed Consolidated Financial Statements (Unaudited)  The fair value of options at the date of grant is estimated using the Black-Scholes option pricing model. The assumptions made in calculating the fair values of options are as follows:  For the Three Months Ended June 30, 2007Employees
        
        Executives
        
        DirectorsExpected term (in years)
        
        2.5
        
        1
        
        0.08 to 0.75Expected volatility
        
        79%
        
        79%
        
        79%Expected dividend yield
        
        0%
        
        0%
        
        0%Risk-free interest rate
        
        4.69%
        
        4.87%
        
        4.72% to 4.91%
  A summary of the status of the Companys stock options as of June 30, 2007 and the changes during the period ended is presented below:  Weighted AverageFixed Options
        
        Shares
        
        Exercise PriceOutstanding at beginning of year
        
        
        --
        
        $
        --Issued
        
        
        285,000
        
        
        .09Issued
        
        
        1,360,000
        
        
        .10Cancelled
        
        
        6,000
        
        
        .09Outstanding at June 30, 2007
        
        
        1,639,000Exercisable at June 30, 2007
        
        
        822,500Weighted average exercise price of options granted to employees at June 30, 2007
        
        $
        0.10
  Exercise Price
        
        NumberOutstandingat June 30, 2007
        
        WeightedAverageRemainingContractual Life
        
        WeightedAverageExercise Price
        
        NumberExercisable atJune 30, 2007
        
        WeightedAverageExercise Price$0.09
        
        
        279,000
        
        
        7.8
        
        $
        0.09
        
        
        142,500
        
        $
        0.09$0.10
        
        
        1,360,000
        
        
        4.9
        
        $
        0.10
        
        
        680,000
        
        $
        0.10
   Note 5 Related Party Transactions  The Company had amounts due to a stockholder for funds loaned to the Company and for Company expenditures covered by the stockholder. The balances due to the stockholder at March 31, 2007, and December 31, 2006, were $77,751 and $77,751, respectively. The notes payable bear interest at 6% per annum. During May 2006, the stockholder and the Company agreed to modify the terms of the notes payable such that they are due on May 30, 2008. During April 2007, the stockholder and the Company agreed to convert the note payable and accrued interest into 420,401 shares of common stock at the fair value on the date of conversion (see Note 4).  10    TETRIDYN SOLUTIONS, INC. AND SUBSIDIARY Notes to the Condensed Consolidated Financial Statements (Unaudited)  Note 6 Subsequent Events  On August 2, 2007, the Companys partially-owned subsidiary, Southfork Solutions, Inc., received the first installment of investment funds that will total $500,000 from the one of the worlds leading cattle feeding operation. The investment is to be utilized specifically to develop livestock tracking trials using TetriDyns E-Trace program and newly-developed Radio Frequency Identification (RFID) livestock ear tags. In addition, a representative from the investing company was added to Southforks board of directors. TetriDyn will be responsible and compensated for the management of Southfork. TetriDyn will also provide and be compensated for all employees as consultants to Southfork for tasks including, but not limited to, technical, engineering, scientific, and administrative duties.  ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION  The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and notes to our financial statements included elsewhere in this report. This discussion contains forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors discussed elsewhere in this report.  Certain information included herein contains statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such as statements relating to our anticipated revenues, gross margin and operating results, future performance and operations, plans for future expansion, capital spending, sources of liquidity, and financing sources. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ from those expressed in any forward-looking statements made herein. These risks and uncertainties include those relating to our liquidity requirements, the continued growth of the mobility software industry, the success of our product-development, marketing,
and sales activities, vigorous competition in the software industry, dependence on existing management, leverage and debt service (including sensitivity to fluctuations in interest rates), domestic or global economic conditions, the inherent uncertainty and costs of prolonged arbitration or litigation, and changes in federal or state tax laws or the administration of such laws.  Overview  We specialize in providing technology and data integration solutions that increase professional or worker productivity through the use of customized data input screens, wireless technologies, and improved information technology (IT) processes. Our solutions are comprised of varying mixtures of proprietary software, third-party products, and IT consulting services. These solutions are currently focused in the healthcare industry, with new applications being developed for the food security and other industries.  We have targeted two major industries that we believe have significant needs that our products help address: healthcare and food security. Our unique proprietary EMR (electronic medical record) software will help hospitals and doctors offices adapt to electronic record systems, cutting down the traditional paper record system. In the food security arena, we believe our E-Trace (electronic tracing) program is the only electronic animal-tracking identification solution ready to meet significant needs of the livestock industry.  11     Description of Expenses  General and administrative expenses consist primarily of salaries and related costs for accounting, administration, finance, human resources, and information systems.  Professional fees expenses consist primarily of fees related to legal, outside accounting, auditing, and investor relations services.  Selling and marketing expenses consist primarily of advertising, promotional activities, trade shows, travel, and personnel-related expenses.  Research and development expenses consist of payroll and related costs for software engineers, management personnel, and the costs of materials used by these employees in the development of new or enhanced product offerings.  In accordance with Financial Accounting Standards Board Statement of Financial Accounting Standards (SFAS) No. 86, Accounting for the Costs of Computer Software to be Sold, Leased or Otherwise Marketed, development costs incurred in the research and development of new software products to be sold, leased, or otherwise marketed are expensed as incurred until technological feasibility in the form of a working model has been established. Internally generated capitalizable software development costs have not been material to date. We have charged our software development cost to research and development expense in our statements of operations.  Property and equipment are recorded at cost. Maintenance, repairs, and renewals that neither materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets. Gains or losses on dispositions of property and equipment are included in the results of operations when realized.  Results of Operations  Comparison of Three and Six Months Ended June 30, 2007 and 2006  Revenues  Our revenue was $275,556 and $559,048 for the three and six months ended June 30, 2007, respectively, compared to $240,382 and $271,821 for the three and six months ended June 30, 2006, respectively, representing an increase of $35,174, or 15%, and $287,227, or 106%, for the three- and six-month periods, respectively. The increase in revenues was due to increases in a consulting services contract with a regional hospital and increased AeroMD and third-party software sales. The revenues associated with the consulting services with the regional hospital constituted 85% of the increased total revenue for the six months ended June 30, 2007.  Cost of Revenue  Our cost of revenue was $97,735 and $193,858 for the three and six months ended June 30, 2007, respectively, compared to $89,719 and $107,009 for the three and six months ended June 30, 2006, respectively, representing an increase of $8,016, or 9%, and $86,849, or 81%, for the three- and six-month periods, respectively. The gross margin percentage on revenue was 65% for both the three and six months ended June 30, 2007, and 63% and 61% for the three and six months ended June 30, 2006, respectively. The increased cost of revenue during the 2007 interim periods was due to the consulting
service contract, which we performed by reassigning some personnel from administrative and research and development functions.  12      Although the net changes and percent changes with respect to our revenues and our cost of revenue for the three and six months ended June 30, 2007 and 2006, are summarized above, the trends contained therein are limited and should not be viewed as a definitive indication of our future results.  Operating Expenses  General and Administrative  General and administrative expenses, including noncash compensation expense, were $76,523 and $126,747 for the three and six months ended June 30, 2007, respectively, compared to $68,033 and $100,263 for the three and six months ended June 30, 2006, respectively, representing an increase of $8,490, or 12%, and $26,484, or 26%, for the three- and six-month periods, respectively. The increase in our general and administrative expenses from the three- and six-month periods ended June 30, 2007, as compared to the three and six months ended June 30, 2006, reflects an increase in payroll costs in 2007 due to additional personnel and increased salaries compared to the first three months of 2006.  Professional Fees  Professional fees expenses, including noncash compensation expense, were $92,486 and $185,485 for the three and six months ended June 30, 2007, respectively, compared to $45,797 and $480,601 for the three and six months ended June 30, 2006, representing an increase of $46,689, or 102%, for the three-month period and a decrease of $295,116, or 61%, for the six-month period. The increase in our professional fees expenses from the three-month period ended June 30, 2007, as compared to the three months ended June 30, 2006, reflects additional noncash consulting fees associated with investor relations in 2007. The decrease in our professional fees expenses from the six-month period ended June 30, 2007, as compared to the six months ended June 30, 2006, reflects legal, auditing, and other consulting fees incurred in the first quarter of 2006 directly related to the reverse acquisition of
TetriDyn Solutions, Inc. by Creative Vending Corp., the name and domicile change to Nevada, and Securities and Exchange Commission filing requirements.  Selling and Marketing  Selling and marketing expenses, including noncash compensation expense, were $59,018 and $122,867 for the three and six months ended June 30, 2007, respectively, compared to $66,301 and $121,036 for the three and six months ended June 30, 2006, respectively, representing a decrease of $7,283, or 11% for the three-month period and an increase of $1,831, or 2%, for the six-month period. The decrease in our selling and marketing expenses from the three months ended June 30, 2007, as compared to the three months ended June 30, 2006, reflects a slight decrease in payroll costs in 2007. The increase in our selling and marketing expenses for the six-month period is immaterial.  Research and Development Expenses  Research and development expenses were $24,102 and $45,944 for the three and six months ended June 30, 2007, respectively, compared to $44,296 and $89,478 for the three and six months ended June 30, 2006, respectively, representing a decrease of $20,194, or 46%, and $43,534, or 49%, for the three- and six-month periods, respectively. The decrease in research and development expenses reflects our increased focus on consulting services and sales and marketing activities while reducing our focus on research and development activities.  Interest expense was $15,051 and $30,230 for the three and six months ended June 30, 2007, respectively, as compared to $13,773 and $41,958 for the three and six months ended June 30, 2006, respectively, representing an increase of $1,278, or 9% for the three-month period and a decrease of $11,728, or 28%, for the six-month period. The decrease in interest expense related primarily to our conversion of outstanding debt to common stock in connection with the reverse acquisition, thereby reducing our interest expense.  13    Critical Accounting Policies  We have identified the policies outlined below as critical to our business operations and an understanding of our results of operations. The list is not intended to be a comprehensive list of all of our accounting policies. In many cases, the accounting treatment of a particular transaction is specifically dictated by accounting principles generally accepted in the United States, with no need for managements judgment in their application. The impact and any associated risks related to these policies on our business operations is discussed throughout Managements Discussion and Analysis or Plan of Operations where such policies affect our reported and expected financial results. For a detailed discussion on the application of these and other accounting policies, see the Notes to the December 31, 2006 Consolidated Financial Statements. Note that our preparation of the financial statements requires
us to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of our financial statements, and the reported amounts of revenue and expenses during the reporting period. There can be no assurance that actual results will not differ from those estimates.  Revenue Recognition  Our AeroMD EMR software is provided as turnkey software that has been customized for specific medical specializations. We typically install the software at the customers location for a fee and charge the customer a monthly license fee, based on the number of operating workstations, under a one- or two-year usage agreement. The customer is entitled to all systems upgrades during the one- or two-year license. At the end of their contracts, customers may continue using AeroMD by entering into a new license with us. We also sell installation and post-contract telephone support service contracts on an hourly basis. We do not provide any rights of return or warranties on our AeroMD EMR software.  Revenue from software licenses and related installation and support services is recognized when earned and realizable, which is when persuasive evidence of an arrangement exists, services, if requested by the customers, have been rendered and are determinable, and collectibility is reasonably assured. Amounts billed to customers prior to these criteria being met are deferred. Revenue from the sale of software is recognized when delivered to the customer or upon installation of the software if an installation contract exists. Revenue from post-contract telephone support service contracts is recognized as the services are provided, determined on an hourly basis. Revenue applicable to multiple-element fee arrangements is divided among the software, the installation, and post-contract support service contracts using vendor-specific objective evidence of fair value. Fair value is evidenced by
the prices charged when the software and the services are sold as separate products or arrangements.  We also provide information technology management consulting services. To date, these services have been primarily in the hospital industry. These services are paid for on a monthly basis and for a flat-fee, which is not cancelable or refundable. Revenue for these services is recognized over the contract period.  Income Taxes  We utilize the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities and on the amount of operating loss carry-forwards, and are measured using the enacted tax rates and laws that will be in effect when the temporary differences and carry-forwards are expected to reverse. An allowance against
deferred tax assets is recorded when it is more likely than not that such tax benefits will not be realized.  14      Stock Based Compensation  Effective January 1, 2006, the Company adopted the provisions of SFAS No. 123 (revised), Share-Based Payment, which replaces SFAS No. 123, Accounting for Stock-Based Compensation, and supersedes APB Opinion No. 25, Accounting for Stock Issued to Employees, and related interpretations. SFAS No. 123(R) requires compensation costs related to share-based payment transactions, including employee stock options, to be recognized in the financial statements. In addition, the Company adheres to the guidance set forth within SEC Staff Accounting Bulletin No. 107, which provides the views of the staff of the SEC regarding the interaction between SFAS No. 123(R) and certain SEC rules and regulations and provides interpretations with respect to the valuation of share-based payments for public companies.  In adopting SFAS No. 123(R), the Company applied the modified prospective approach to transition. Under the modified prospective approach, the provisions of SFAS No. 123(R) are to be applied to new awards and to awards modified, repurchased, or cancelled after the required effective date. Additionally, compensation cost for the portion of awards for which the requisite service has not been rendered that are outstanding as of the required effective date shall be recognized as the requisite service is rendered on or after the required effective date. The compensation costs for that portion of awards shall be based on the grant-date fair value of those awards as calculated for either recognition or pro-forma disclosures under SFAS No. 123.  Recent Accounting Pronouncements  In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements. The objective of SFAS 157 is to increase consistency and comparability in fair value measurements and to expand disclosures about fair value measurements. SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. SFAS 157 applies under other accounting pronouncements that require or permit fair value measurements and does not require any new fair value measurements. The provisions of SFAS No. 157 are effective for fair value measurements made in fiscal years beginning after November 15, 2007. The adoption of this statement is not expected to have a material effect on the Companys future reported financial position or results of operations.  In February 2007, the Financial Accounting Standards Board (FASB) issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities  Including an Amendment of FASB Statement No. 115. This statement permits entities to choose to measure many financial instruments and certain other items at fair value. Most of the provisions of SFAS No. 159 apply only to entities that elect the fair value option. However, the amendment to SFAS No. 115 Accounting for Certain Investments in Debt and Equity Securities applies to all entities with available-for-sale and trading securities. SFAS No. 159 is effective as of the beginning of an entitys first fiscal year that begins after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins
on or before November 15, 2007, provided the entity also elects to apply the provision of SFAS No. 157, Fair Value Measurements.The adoption of this statement is not expected to have a material effect on the Companys financial statements.  15    Liquidity and Capital Resources  At June 30, 2007, our principal source of liquidity consisted of $64,987 of cash, as compared to $81,723 of cash at December 31, 2006. In addition, our stockholders deficit was $710,581 at June 30, 2007, compared to stockholders deficit of $827,851 at December 31, 2006, a decrease in the deficit of $117,270.  Our operations provided net cash of $8,097 during the six months ended June 30, 2007, as compared to using $132,951 of net cash during the six months ended June 30, 2006. The $141,048 decrease in the net cash used by our operating activities primarily resulted from the reduced loss in the first quarter of 2007 compared to the first quarter in 2006.  Investing activities for the six months ended June 30, 2007, used $3,514 of net cash, as compared to $5,918 of net cash used during the six months ended June 30, 2006. The decrease in net cash used related to smaller property or equipment purchases in the six months ended June 30, 2007.  Financing activities used $21,319 during the six months ended June 30, 2007, compared to providing net cash of $112,422 during the six months ended June 30, 2006. The decrease of $133,741 of net cash provided in financing activities was primarily due to the sale of stock in 2006.  We are focusing our efforts on increasing revenue while we explore external funding alternatives. In addition, we intend to seek compromise and resolution of $125,000 in indebtedness due a community development agency, now in default, principally by execution on the collateral. We currently have contracts in place for future deliveries of our AeroMD product and other solutions that we believe will cover our minimum expenditures for operating costs and minimum installments due on our other indebtedness to non-affiliates during the next 12 months. We expect that additional sales will enable us to increase our payments on indebtedness and support the development of other products. In order for us to expand our AeroMD market penetration and to pursue the development of our E-Trace program leading to product roll-out, we will be required to increase our revenues substantially and to seek additional external
capital. Our growth will be severely restricted if we are unable to obtain external funding. On October 25, 2006, our common stock began being quoted on the OTCBB and the Pink Sheets, which we anticipate may improve our access to equity capital. Additionally, as we continue development of new products and identify specific commercialization opportunities, we will focus on those product markets and opportunities for which we might be able to get external funding through joint venture agreements, strategic partnerships, or other direct investments.  We have no significant contractual obligations or commercial commitments not reflected on our balance sheet as of this date.  ITEM 3. CONTROLS AND PROCEDURES  We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit to the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized, and reported within the time periods specified by the Securities and Exchange Commissions rules and forms, and that information is accumulated and communicated to our management, including our principal executive and principal financial officers (whom we refer to in this periodic report as our Certifying Officers), as appropriate to allow timely decisions regarding required disclosure. Our management evaluated, with the participation of our Certifying Officers, the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act) as of June 30, 2007, pursuant
to Rule 13a-15(b) under the Securities Exchange Act. Based upon that evaluation, our Certifying Officers concluded that, as of June 30, 2007, our disclosure controls and procedures were effective.  16      There were no changes in our internal control over financial reporting that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.  PART II  OTHER INFORMATION  ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES  See Current Report on Form 8-K dated May 31, 2007, ITEM 3.02  UNREGISTERED SALES OF EQUITY SECURITIES.  ITEM 6. EXHIBITS  The following exhibits are filed as a part of this report:  Exhibit Number*
        
        Title of Document
        
        LocationItem 10
        
        Material Contracts10.05
        
        Debt Resolution Agreement between TetriDyn Solutions, Inc. and David W. Hempstead signed April 24, 2007
        
        Incorporated by reference from the current report on Form 8-K filed April 27, 2007Item 31
        
        Rule 13a-14(a)/15d-14(a) Certifications31.01
        
        Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Rule 13a-14
        
        AttachedItem 32
        
        Section 1350 Certifications32.01
        
        Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Chief Executive Officer and Chief Financial Officer)
        
        Attached
 _______________ *
        All exhibits are numbered with the number preceding the decimal indicating the applicable SEC reference number in Item 601 and the number following the decimal indicating the sequence of the particular document.
  SIGNATURE  In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  TETRIDYN SOLUTIONS, INC.
 (Registrant)
  Date:  August 7, 2007
        By/s/ David W. Hempstead
 David W. Hempstead, President, Chief Executive Officer, and Chief Financial Officer  17