UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 30, 2008

o	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to __________

Commission file number: 000-50221

InforMedix Holdings, Inc.

(Exact name of small business issuer as specified in its charter)

Nevada	88-0462762
(State or other jurisdiction of	(IRS Employer
incorporation or organization)	Identification No.)

Georgetowne Park

5880 Hubbard Drive

Rockville, MD 20852-4821

(Address of principal executive offices)

(301) 984-1566

(Issuer's telephone number)

Indicate by check mark whether the issuer (1) filed all reports required to filed by Section 13 or 15(d) of the Securities Exchange Act during the past 12 months (or 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.

Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, and accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer o Non-accelerated filer o Smaller reporting company x

Indicate by check mark if the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):

Yes o No x

As of November 18, 2008, the registrant had outstanding 119,985,827 shares of common stock, par value $.001 per share.

InforMedix Holdings, Inc.

Quarterly Report on Form 10-Q

Period Ended September 30, 2008

Table of Contents

	Page
PART I - FINANCIAL INFORMATION	3

Item 1. Financial Statements:	3

Condensed Consolidated Balance Sheet as of September 30, 2008 (Unaudited) and December 31, 2007 (Audited)	3

Condensed Consolidated Statements of Operations for the Nine and Three month Periods Ended September 30, 2008 and 2007 (Unaudited)	4

Condensed Consolidated Statements of Cash Flows for the Nine month Periods Ended September 30, 2008 and 2007 (Unaudited)	5

Notes to Condensed Consolidated Financial Statements (Unaudited)	6

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	15

Item 3. Quantitative and Qualitative Disclosures About Market Risk	20

Item 4T. Controls and Procedures	21

PART II - OTHER INFORMATION	22

Item 1. Legal Proceedings	22
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	22
Item 3. Defaults Upon Senior Securities	22
Item 4. Submission of Matters to a Vote of Security Holders	22
Item 5. Other Information	23
Item 6. Exhibits	23

SIGNATURES	24

EXHIBIT INDEX

EXHIBITS

PART 1 - FINANCIAL INFORMATION

Item 1- Financial Statements

INFORMEDIX HOLDINGS, INC. and SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

AS OF SEPTEMBER 30, 2008 AND DECEMBER 31, 2007

	2008			2007
	(Unaudited)
ASSETS

Current Assets
Cash and Cash Equivalents	$	37,757		$	370,284
Accounts Receivable		99,207			71,695
Inventory		321,846			309,622
Deposits		6,947			54,910
Prepaid Expenses and other Current Assets		33,986			6,333
Total Current Assets		499,743			812,844

Fixed Assets, Net of Depreciation		45,991			51,654

TOTAL ASSETS	$	545,734		$	864,498

LIABILITIES & STOCKHOLDERS' DEFICIT

Current Liabilities
Subordinated Convertible Promissory Notes, Net of Discount of $21,971	$	848,029		$	-
Notes Payable		130,000			-
Common Stock to be Issued		83,333			-
Accounts Payable and Accrued Expenses		960,204			637,104
Total Current Liabilities		2,021,566			637,104

Stockholders' Deficit
Preferred Stock, $0.001 Par Value, 4,500,000 shares authorized
12.3 shares issued and outstanding		-			-
Common Stock, $0.001 Par Value, 300,000,000 shares authorized
119,985,827 and 119,273,556 shares issued and outstanding
in 2008 and 2007		119,986			119,274
Additional Paid-in-Capital		30,011,153			29,378,562
Accumulated Deficit		(31,606,971	)		(29,270,442	)
Total Shareholders' Deficit		(1,475,832	)		227,394

TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$	545,734		$	864,498

See the accompanying notes to these condensed consolidated financial statements

Item 1- Financial Statements

INFORMEDIX HOLDINGS, INC. and SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE NINE AND THREE MONTH PERIODS ENDED SEPTEMBER 30, 2008 AND 2007

(Unaudited)

	Nine Months Ended Sept 30,						Three Months Ended Sept 30,
	2008			2007			2008			2007

REVENUES	$	151,667		$	292,625		$	81,010		$	62,027

COST OF REVENUE		47,566			181,144			45,665			13,956

GROSS MARGIN		104,101			111,481			35,345			48,071

OPERATING EXPENSES
Selling, General and Administrative Expenses		2,057,733	(a)		3,724,185			732,326	(a)		2,391,528
Product and Development (formerly Research and Development)		316,555			312,271			109,518			102,141
Depreciation and Amortization		27,597			34,187			8,417			10,886
Total Operating Expenses		2,401,884			4,070,643			850,260			2,504,555

LOSS BEFORE OTHER INCOME/(EXPENSE)		(2,297,783	)		(3,959,162	)		(814,915	)		(2,456,484	)

OTHER INCOME/(EXPENSE)
Interest Income		406			3,380			31			1,550
Interest Expense		(25,922	)		(55	)		(16,956	)		-
Accretion of Interest on Convertible Notes		(13,229	)					(8,087	)		-
Total Other Income/(Expense)		(38,746	)		3,325			(25,013	)		1,550

LOSS BEFORE PROVISION FOR TAXES		(2,336,529	)		(3,955,837	)		(839,928	)		(2,454,934	)

PROVISION FOR TAXES		-			-			-			-

LOSS BEFORE ACCRETION OF PREFERRED
STOCK DIVIDEND		(2,336,529	)		(3,955,837	)		(839,928	)		(2,454,934	)

ACCRETION OF PREFERRED STOCK DIVIDENDS		-			-			-			-

NET LOSS APPLICABLE TO COMMON SHARES	$	(2,336,529	)	$	(3,955,837	)	$	(839,928	)	$	(2,454,934	)

Net Loss per Basic and Diluted Shares	$	(0.02	)		(0.05	)	$	(0.01	)		(0.01	)

Weighted Average Number of Common Shares Outstanding		119,985,827			85,267,046			119,985,827			108,254,034

(a)

Include stock based compensation expense of $504,376 and $131,342 associated with the Black Scholes valuation of options issued to management and Members of the Board of Directors, which became vested during the respective periods reported.

See the accompanying notes to these condensed consolidated financial statements

Item 1- Financial Statements

INFORMEDIX HOLDINGS, INC. and SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2008 AND 2007

(Unaudited)

	2008			2007
CASH FLOWS FROM OPERATING ACTIVITIES -
Net Loss	$	(2,336,529	)	$	(3,955,837	)

Adjustments to Reconcile Net Loss to Net Cash used in Operations -
Depreciation		27,597			34,187
Stock Option Expense - Employees		504,376			1,927,670
Common Stock to be Issued for Services		83,333			46,200
Common Stock Issued for Services		56,227			45,000
Financing Costs Incurred		20,000			-
Accretion of Loan Discount on Convertible Notes		13,229			-
Warrants Issued for Services		22,500			5,625
Changes in Assets and Liabilities
(Increase) Decrease in Accounts Receivable		(27,512	)		(42,543	)
(Increase) Decrease in Inventory		(11,230	)		(35,468	)
(Increase) Decrease in Deposits		(2,039	)		-
(Increase) Decrease in Prepaid Expenses and Other Assets		(27,653	)		(13,430	)
(Decrease) Increase in Accounts Payable and Accrued Expenses		323,100			(41,350	)
Net Cash (Used in) Operating Activities		(1,354,600	)		(2,029,946	)

CASH FLOWS FROM INVESTING ACTIVITIES -
Purchase of Property and & Equipment		(3,862	)		(4,996	)
Reimbursement for Unrecovered Med-eMonitors		30,935
Net Cash Provided by (Used in) Investing Activities		27,073			(4,996	)

CASH FLOWS FROM FINANCING ACTIVITIES -
Proceeds from Issuance of Subordinated Convertible Promissory Notes		885,000			-
Proceeds from Common Stock Issuances		-			2,091,000
Notes Payable		110,000			(100,000	)
Net Cash Provided by Financing Activities		995,000			1,991,000

Net Increase (Decrease) in Cash and Cash Equivalents		(332,527	)		(43,942	)

Cash and Cash Equivalents - Beginning of Period		370,284			435,879

Cash and Cash Equivalents - End of Period	$	37,757		$	391,937

Supplemental Disclosure of Cash Flow Information:
Cash Paid during the Period for:
Interest Expense	$	311		$	55
Income Taxes	$	-		$	-
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
(Increase) in Fixed Assets	$	(47,864	)	$	-
Decrease in Deposits	$	50,000		$	-
Conversion ofConvertible Note	$	(15,000	)	$	-
Discount on Convertible Debt	$	35,200		$	-
Common Stock issued to satisfy Common Stock to be Issued Liability	$	-		$	1,949,625

See the accompanying notes to these condensed consolidated financial statements

Item 1 - NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - ORGANIZATION AND BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statement includes the accounts of InforMedix Holdings, Inc. (the “Company”) and its wholly owned subsidiaries. These condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complex financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. These condensed consolidated financial statements should be read in conjunction with the December 31, 2007 audited financial statements and the accompanying notes thereto filed with the Securities and Exchange Commission on Form 10-KSB. The interim operating results for the three and nine months ended September 30, 2008 may not be indicative of operating results expected for the full year.

The Company was organized under the laws of the State of Nevada on January 19, 2000 under the name Hunapu, Inc.

The Company has developed, patented and integrated portable patient monitoring units, hardware, software and networked communications system to enable consumers, pharmacists, health plans, disease management organizations, pharmaceutical and biomedical companies, medical researchers and physicians to efficiently monitor and manage patients’ medication adherence and clinical response. The Med-eMonitor system leverages our patent portfolio of 15 issued and 14 pending patents.

Principle of Consolidation

The accompanying consolidated financial statements include the accounts of InforMedix Holdings, Inc. and its wholly owned subsidiaries. All inter-company transactions have been eliminated in consolidation.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Internal Use Software Costs

Internal use software and Web site development costs are capitalized in accordance with Statement of Position (SOP) No. 98-1,"Accounting for the Costs of Computer Software Developed or Obtained for Internal Use," and Emerging Issues Task Force(EITF) Issue No. 00-02, "Accounting for Web Site Development Costs." Qualifying costs incurred during the application development stage, which consist primarily of outside services and the Company's consultants, are capitalized and amortized over the estimated useful life of the asset. All other costs are expensed as incurred. All costs for internal use software for the nine and three month periods ended September 30, 2008 and 2007 were expensed as research and development.

Revenue Recognition

In accordance with Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin (‘SAB”) No. 104, Revenue Recognition , the Company recognizes revenue when (i) persuasive evidence of a customer or distributor arrangement exists or acceptance occurs, (ii) a retailer, distributor or wholesaler receives the goods, (iii) the price is fixed or determinable, and (iv) collectability of the sales revenues is reasonably assured.

The Company has adopted a policy of leasing as opposed to selling Med-eMonitor units. As such, programs are currently offered for month-to-month leases, six month leases, and twelve month leases. Discounts are currently offered for both six and twelve month leases. Revenues are recognized monthly based on the monthly lease rate determined by the term of the lease. In addition, the Company retains the right to offer initial discounts such as free first month service, free set-up, shipping, etc. Given the discounts provided for six and twelve month leases, the Company retains the right to hold lessees to the full payment provided under the respective lease(s).

In all leases, the Company processes leases via credit cards with consumer customers, and via usual and customary payment arrangements with institutional customers, and includes a clause in all contracts relating to timing of cancellations, and return of the Med-eMonitor units in an undamaged condition. In the event a Med-eMonitor or an expired lease is not return or returned damaged, the lease provides for recovery of the costs to repair or fully replace a damaged or unreturned unit.

In accordance with FAS 13, Accounting for Leases (as amended), all material costs incurred by the Company that would not have been incurred had the leasing transaction not occurred will be deemed direct costs. As such, these material initial direct costs will be deferred and allocated over the lease term in proportion to the recognition of rental income.

Revenues are derived as follows:

	a)	Front-end training, set-up and installation support services are earned at the time the service is rendered.

	b)	Revenue is recognized as a “Sales” transaction for any Med-eMonitor units wherein the title legally transfers to the patient or intermediary service provider.

	c)	Revenue is recognized on a monthly basis as rental income, wherein the Company retains title to the Med-eMonitor units.

	d)	Revenue is recognized on a monthly basis for a separate service fee for the back-end Med-eXpert hosting service, regardless of whether the Med-eMonitor units are deployed under the sales or rental transaction model as aforementioned. This fee includes reimbursement for the requisite monitoring and connectivity service to the individual deployed Med-eMonitor units.

	e)	Revenues from government grants are recognized at the time the services and/or provisioned equipment are rendered or provided respectively.

Out of pocket costs and directly allowable internal costs incurred in producing the above revenues are allocated to “Costs of Revenues” at the time the corresponding revenues are recognized. Until such time as Med-eMonitor units included in Fixed Assets are deployed in rental programs with sufficient scale, the related depreciation charges are recorded as period depreciation operating expenses.

For the nine month periods ended September 30, 2008 and 2007, the Company’s revenues equaled $151,667 and $292,625 respectively.

Product Development

Product development costs are related primarily to the Company obtaining its 15 issued U.S. and Foreign and 14 pending U.S. and Foreign patents and patent valuation analysis, continuing to prosecute new patent applications, developing early prototypes and beta products of its Med-e Monitor unit, development of first, second and third generation Med-eXpert databases to monitor patient data and remotely program the Med-eMonitor units and Med-ePhones, communications connectivity between the units and the databases via the Internet, continuing improvement of the firmware in the unit and Med-eXpert software to better meet customer needs, and Website development. Research and development costs are expensed as incurred.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expense during the reporting period. Actual results could differ from those estimates.

Recent Accounting Pronouncements

During September 2006, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 157, Fair Value Measurements (“SFAS 157”), which is effective for fiscal years beginning after November 15, 2007 with earlier adoption encouraged. SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. In February 2008, the FASB issued FASB Staff Position FAS 157-2, Effective Date of FASB Statement No. 157, which delayed the effective date of SFAS 157 for all non-financial assets and liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis, until January 1, 2009. The Company adopted SFAS 157 on January 1, 2008 for all financial assets and liabilities, but the implementation did not require additional disclosures or have a significant impact on the Company's financial statements. The Company has not yet determined the impact the implementation of SFAS 157 will have on the Company’s non-financial assets and liabilities which are not recognized or disclosed on a recurring basis. However, the Company does not anticipate that the full adoption of SFAS 157 will significantly impact their consolidated financial statements.

During February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities—including an amendment of FASB Statement No. 115 (“SFAS 159”), which permits entities to choose to measure many financial instruments and certain other items at fair value. The objective of SFAS 159 is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. The Company has adopted SFAS 159 on January 1, 2008 and has elected not to measure any additional financial assets, liabilities or other items at fair value.

In December 2007, the FASB issued SFAS No. 141 (revised 2007), Business Combinations (“SFAS 141R”). SFAS 141R establishes principles and requirements for how an acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, any non-controlling interest in the acquiree and the goodwill acquired. SFAS 141R also establishes disclosure requirements to enable the evaluation of the nature and financial effects of the business combination. This statement is effective for the Company beginning January 1, 2009 and will change the accounting for business combinations on a prospective basis.

In December 2007, the FASB issued SFAS No. 160, Non-controlling Interests in Consolidated Financial Statements—an amendment of Accounting Research Bulletin No. 51 (“SFAS 160”). SFAS 160 establishes accounting and reporting standards for ownership interests in subsidiaries held by parties other than the parent, the amount of consolidated net income attributable to the parent and to the non-controlling interest, changes in a parent’s ownership interest, and the valuation of retained non-controlling equity investments when a subsidiary is deconsolidated. SFAS 160 also establishes disclosure requirements that clearly identify and distinguish between the interests of the parent and the interests of the non-controlling owners. This statement is effective for the Company beginning January 1, 2009. This statement is not currently applicable since its subsidiaries are wholly-owned.

In March 2008, the FASB issued Statement No. 161, Disclosures about Derivative Instruments and Hedging Activities (“SFAS 161”), which is effective January 1, 2009. SFAS 161 requires enhanced disclosures about derivative instruments and hedging activities to allow for a better understanding of their effects on an entity’s financial position, financial performance, and cash flows. Among other things, SFAS 161 requires disclosures of the fair values of derivative instruments and associated gains and losses in a tabular formant. SFAS 161 is not currently applicable to the Company since the Company does not have derivative instruments or hedging activity.

In May 2008, the FASB issued Statement of Financial Accounting Standards No. 162, The Hierarchy of Generally Accepted Accounting Principles (“FAS 162"). This Standard identifies the sources of accounting principles and the framework for selecting the principles to be used in the preparation of financial statements of nongovernmental entities that are presented in conformity with generally accepted accounting principles. FAS 162 directs the hierarchy to the entity, rather than the independent auditors, as the entity is responsible for selecting accounting principles for financial statements that are presented in conformity with generally accepted accounting principles. The Standard is effective 60 days following SEC approval of the Public Company Accounting Oversight Board amendments to remove the hierarchy of generally accepted accounting principles from the auditing standards. FAS 162 is not expected to have an impact on the financial statements.

In April 2008, the FASB issued FASB Staff Position (FSP) FAS 142-3, Determination of the Useful Life of Intangible Assets, which amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under FASB Statement No. 142, Goodwill and Other Intangible Assets. This Staff Position is effective for financial statements issued for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years. Early adoption is prohibited. Application of this FSP is not expected to have a significant impact on the financial statements.

In June 2008, the FASB issued FSP EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities . This FSP provides that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. The Company does not currently have any share-based awards that would qualify as participating securities. Therefore, application of this FSP is not expected to have an effect on the Company's financial reporting.

In May 2008, the FASB issued FASB Staff Position (FSP) APB 14-1, Accounting for Convertible Debt That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement) ("FSP 14-1"). FSP 14-1 will be effective for financial statements issued for fiscal years beginning after December 15, 2008. The FSP includes guidance that convertible debt instruments that may be settled in cash upon conversion should be separated between the liability and equity components, with each component being accounted for in a manner that will reflect the entity's nonconvertible debt borrowing rate when interest costs are recognized in subsequent periods. However, because our existing convertible debt instruments are settled only in stock upon maturity, this guidance will not apply, and as a result will not have an impact on the financial statements.

NOTE 3 - GOING CONCERN

As shown in the accompanying consolidated financial statements, the Company incurred net operating losses for the nine and three month periods ending September 30, 2008 and 2007. There is no assurance that the Company will be able to generate enough revenue and/or raise capital to support current operations and expand sales. This raises doubt about the Company’s ability to continue as a going concern.

In March 2008, the Company entered into an agreement with Murdock Capital Partners (“MCP”) based on New York City. Murdock will provide InforMedix with capital market advisory services, advice concerning financial matters, including raising additional capital (which will initially involve raising $1.0 to $ 1.3 million of convertible bridge financing), guidance with merger and acquisition opportunities, pursuit of exchange listings, Sarbanes Oxley requirements, investor relations services, other related services such as meeting with current MCP and other highly sophisticated micro cap oriented investors, and general ramp up efforts of the Company’s basic businesses. The Maximum Amount of this offering was subsequently increased to $2.0 million with an over-subscription allowance for an additional $1.0 million. The relationship with MCP was terminated on May 27, 2008, and the Company began to directly offer its securities under the Offering.

As of November 14, 2008, the Company had raised a total of $870,000 under the March 2008 offering.

NOTE 4 - FIXED ASSETS

Fixed assets consist of the following at September 30, 2008 and 2007:

	2008		2007

Office Equipment	$	38,457	$	38,457
Med-eMonitors on operating leases and held for lease		118,749		94,262
Computer Equipment and Software		106,687		102,826
Furn, Fixtures; Marketing, Testing, and Design Eqpt		45,622		45,622
Sub-total		309,551		281,165
Less: Accumulated Depreciation		263,524		229,511

Net Book Value	$	45,991	$	51,654

During the nine month period ending September 30, 2008, the Company transferred 120 Med-eMonitor units from Inventory - Finished Goods to Fixed Assets - Med-eMonitors, on operating leases, with a book value of $47,864. Also, the Company sold 94 Med-eMonitor Units.

Depreciation expense for the nine month periods ended September 30, 2008 and 2007 was $27,597 and $34,187 respectively. Depreciation expense for the three month periods ended September 30, 2008 and 2007 was $8,417 and $10,886 respectively..

NOTE 5 – NOTE PAYABLE

On August 22, 2008, the Company entered into a promissory notes in the amount of $130,000 from a recent participant in the Subordinated Convertible Promissory Note financing program. Under this note, the Company received $110,000 in cash, with the remaining $20,000 payable under the note recognized as a Financing Fee. As of September 30, 2008, the note remained payable. As of September 30, 2008, the Company had accrued $833 of interest expense for this obligation.

NOTE 6 – COMMON STOCK TO BE ISSUED

In conformance with Generally Accepted Accounting Principles, the Company recognizes Common Stock to be Issued as a liability until the shares are issued. The amount represents the value assigned to stock which has been requested, but was not released as of September 30, 2008. For the nine months ended September 30, 2008, a total of $83,333 of Common Stock to be Issued was recognized.

NOTE 7 - SUBORDINATED CONVERTIBLE NOTES

On March 19, 2008, the Company commenced a Private Placement Offering for a maximum $1,000,000 of 8% Subordinated Convertible Promissory Notes with a unit/face value of $25,000, and related warrants (Series M Warrants). The Notes become due and payable, together with accrued interest, on the earlier of one year from the date funds are received or upon the commencement and completion of a subsequent Equity offering of at least $2,000,000. The initial offering also allowed for up to a $300,000 over-subscription. In May 2008, the Company and the then existing participants in the offering agreed to increase the maximum value of the offering to $2,000,000, with an increase in the amount of the over-subscription to $1,000,000.

The Notes are also convertible into shares of equity or equity linked securities offered in the future by the Company, or into shares of the Company’s common stock at a fixed price per share of $0.10. In addition, one-half Class M warrant will be issued for every dollar invested through this offering, which can be exercised to purchase additional shares of the Company’s common stock within five years from the date acquired at a price of $0.15 per share. As of September 30, 2008, $885,000 of funds were received from this offering. Of this total, one of the subscribers elected to convert their $15,000 Note into the common stock of the Company at the $0.10 fixed share price. As of September 30, 2008, the outstanding Notes under this offering equaled $870,000.

The gross proceeds of the convertible notes (net of the $15,000 converted in April 2008 and related warrants, were allocated $35,200 to the warrants and $834,800 to the convertible notes. The warrants were valued under the Black Sholes method. Based on the guidance under EITF No. 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company Own Stock the warrants were classified as equity since the warrant holders have no alternative other than to receive shares of common stock upon exercise of the Series M warrants.

In accordance with EITF No. 00-27, Application of Issue No. 98-5 to Certain Convertible Instruments, these is no intrinsic value to the embedded conversion option since the conversion price is higher that the fair market value.

The convertible notes are being accreted to their maturity value over the term of the notes. As of September 30, 2008, $13,229 has been accreted as interest on convertible notes.

NOTE 8 - PROVISION FOR INCOME TAXES

There is no income tax benefit for the losses for the nine months ended September 30, 2008 and 2007 since management has determined that the realization of the net deferred tax asset is not assured and has created a valuation allowance for the entire amount of such benefits.

The Company’s policy is to record interest and penalties associated with unrecognized tax benefits as additional income taxes in the statement of operations. As of January 1, 2008, the Company had no unrecognized tax benefits, or any tax related interest of penalties.

There were no changes in the Company’s unrecognized tax benefits during the period ended September 30, 2008. The Company did not recognize any interest or penalties during 2008 related to unrecognized tax benefits. Tax years from 2005 through 2007 remain subject to examination by major tax jurisdictions.

NOTE 9 - STOCKHOLDERS’ EQUITY

During the nine month period ending September 30, 2008, the Company issued 712,271 shares of the Company’s common stock valued at a total of $71,271, fair value, of which $56,227 (562,271 shares of the Company’s common stock) was issued for services rendered, and $15,000 (150,000 shares of the Company’s common stock) was issued in conjunction with the conversion of a $15,000 convertible note payable.

The Company follows Statement of Financial Accounting Standard No. 123(R) (“SFAS 123(R)”), Share-Based Payment (as amended) , using the modified prospective method as permitted under SFAS 123(R).

The fair market values for options was estimated using the Black-Sholes model with the following assumptions: no dividend yield, expected volatility of 220% and a risk free interest rate based on the 10 year Treasury bill rate at the time of issuance. The term of the options is ten years.

During the nine month period ended September 30, 2008, the Company expensed $504,376 for time of service options issued to employees ($254,533 related to the 2008 Plan, $234,053 related to the 2007 plan, and $15,790 from previously issued plans). The vesting of the performance portion of granted options for the nine month period ended September 30, 2008, under the 2007 and 2008 Plans is subject to determination later in the year. As of September 30, 2008 there was approximately $693,500 of unrecognized compensation expense related to non-vested market-based employee stock option awards that is expected to be recognized through June 30, 2010.

Stock Options

A summary of stock option transactions during the nine month period ending September 30, 2008 is as follows:

	Granted		Vested		Common Share Range

Balance , December 31, 2007		26,886,571		18,807,557	$	$0.11 to $1.00
Granted/Vested during Q1, Q2 and Q3 2008		21,294,000		5,170,553	$	0.10 to $0.29
Exercised during Q1, Q2 and Q3 2008		-		-	$	0.10 to $1.00
Balance, September 30, 2008		48,180,571		23,978,110	$	0.10 to $1.00

Information with respect to stock options that are outstanding at September 30, 2008 is as follows:

Range of Exercise Prices	Number of Options Currently Exercisable at September 30, 2008		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price of Options Currently Exercisable

$0.10 to $1.00		23,978,110		3.8 years	$	0.15

Warrants

A summary of warrant transactions during the nine month period ending September 30 2008 is as follows:

	Warrant Shares		Vested Shares		Exercise Price per Common Share Range

Balance , December 31, 2007		46,867,846		46,867,846	$	0.10 to $3.00
Granted/Vested during Q1, Q2 and Q3 2008		692,500		692,500	$	0.15 to $0.20
Exercised during Q1, Q2 and Q3 2008		-		-		-
Balance , September 30, 2008		47,560,346		47,560,346	$	0.10 to $3.00

Information with respect to warrants outstanding and exercisable as of September 30, 2008 is as follows:

Range of Exercise Prices	Number of Warrants Currently Exercisable at September 30 2008		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price of Warrants Currently Exercisable

$0.10 to $3.00		47,560,346		7.8 years	$	0.18

NOTE 10 - COMMITMENTS AND CONTINGENCIES

Employment Agreements

On June 30, 2007, the employment agreement with the CEO, which was due to expire, was extended through August 31, 2007, and subsequently further extended through October 30, 2007, and December 31, 2007. The Compensation Committee engaged Compensia, a firm specializing in senior management compensation to evaluate an appropriate compensation range, from which the Compensation Committee negotiated a new multi-year agreement.

In February of 2008, the Company announced the completion of an Amended and Restated Employment Agreement with Bruce A. Kehr, M.D., the CEO of the Company. This Agreement extends the term of Dr. Kehr’s employment with the Company through January 31, 2011. In connection with this new agreement, the Board of Directors also adopted the 2008 Equity Incentive Plan, which increased the cumulative shares available under all Equity Incentive Plans to nearly 20% of the total authorized shares of the Company’s common stock, or 58,850,000 shares.

Consulting Agreements

CMSCO International - In December 2006, the Company entered into a consulting agreement with CMSCO International (“CMSCO”), in connection with certain efforts to improve the awareness of InforMedix and more specifically the Med-eXpert and Med-eMonitor Systems to governmental and other potential third party insurers and related parties for the purpose of seeking to obtain third party reimbursement. The Company believes that the Med-eXpert Information System, which links to the Med-eMonitor, provides the type of information which could be used by governmental authorities to reduce healthcare costs and expand the services realized from current expenditures, while also providing private insurers and related parties with significant cost saving opportunities, through reduced hospitalizations and lessened demands for interactions with skilled caregivers, while also promoting improved health among both the aged as well as younger populations taking multiple medications to treat chronic conditions. The relationship was initially launched as a six month program, with a monthly retainer of $15,000 and a $25,000 initial fee. The agreement also contained certain bonus features based on achievements.

On May 9, 2008 the Company entered into a new Consulting Services Agreement with CMSCO. Under the terms of this Agreement, the Consultant will provide services related to product research; development and value engineering for potential off-shore manufacturing of Next Generation Med-eMonitor appliances to utilize the Med-eXpert System; coordinate efforts directed at obtaining third-party reimbursement; assist the Company in developing strategic business relationships to drive the Company’s revenues; make introductions and assist in building relationships with potential strategic alliance parties in areas including media, consumer marketing, sales and product promotion, and identify, make introductions to, and assist in building relationships with selected businesses relative to international opportunities. For the three month periods ended September 30, 2008 and 2007, $12,000 and $12,000 respectively were expensed as fees to CMSCO.

The Andreotti Group - On May 23, 2008, the Company entered into a Consulting Agreement with The Andreotti Group. Under the terms of this Agreement, The Andreotti Group was engaged to:

1.	Evaluate and validate the InforMedix solutions, including the market opportunity, target customers, competitive landscape, and the value propositions for the Med-eXpert System, Med-eMonitor, and Med-ePhone;

2.	Evaluate the current and alternative business model(s) and go-to-market options; examine the capacity to scale for growth in the event of accelerated market demand;

3.	Prepare a comprehensive business plan and model, including financial targets, funding requirements, market and channel programs, supply chain requirements, operating and organizational plans, and an overall business roadmap;

4.	Prepare an investor package and information, and assist in investor meetings.

Cindy K. Andreotti is President and CEO of The Andreotti Group LLC. The Andreotti Group is a strategic business advisory firm serving Domestic and Global Enterprise Clients, Private Equity and Institutional Firms, and International Investment Groups. Prior to the launch of The Andreotti Group, Ms. Andreotti enjoyed a 26 year career in the telecommunications industry, (12 years with AT&T and 14 years with MCI), and held positions of progressively increasing executive and corporate management responsibility.

While at MCI, Ms. Andreotti was responsible for a $14B P&L, 9500 employees worldwide, 62,000 customers billing from $30K through $150M annually, both domestic and global, retail and wholesale, including Government Markets. Most recently, Ms. Andreotti was President of Enterprise Markets, and helped to lead the Company out of bankruptcy following its acquisition by WorldCom. She was responsible for sales, service and bottom-line performance for the most successful and profitable business unit at MCI. Previous assignments at MCI included President of Business Markets, and President of Global Accounts and Strategic Ventures and Alliances. Before joining MCI in 1990, Ms. Andreotti held executive management positions at AT&T Corporation. Ms. Andreotti was recently ranked as one of the most powerful women in the Washington, D.C. metropolitan area by The Washington Post, serves as Vice Chairman of the Japan American Society, a cabinet member of the Los Angeles Music Center, a member of the Executive Committee for the Red Cross, a member of the Accenture Women’s Leadership Forum, a member of the board of directors for APAC Customer Services, Inc., a leading provider of customer interactive solutions, and a member of the board of directors for Rivermine Software Inc., a leading provider of enterprise Telecommunications Expense Management solutions.

The Company is party to other consulting agreements with various third parties for the development of software and production of the Med-eXpert System and appliance/program adaptations, including the Med-ePhone programs, and varying adaptations of the Med-eMonitor.

2007 Equity Incentive Plan

In August 2007, the Company adopted an Equity Incentive Plan, which is administered by the Board of Directors and has 31,400,000 shares available under the plan. The Company granted approximately 12,098,000 options and approximately 9,942,000 performance options for a total of approximately 22,040,000 options valued at approximately $1,331,000 and approximately $1,094,000 respectively, or a total of $2,425,000. All of the options were valued at the fair market value at the time of issuance.

2008 Equity Incentive Plan

On January 10, 2008, the Board of Directors (the “Board”) approved and adopted the Company’s 2008 Equity Incentive Plan, which supersedes amends and restates the previously issued 2007 Equity Incentive Plan, which was approved by the Company’s stockholders at the 2007 annual meeting of stockholders. Concurrent with the adoption of the 2008 Equity Incentive Plan, the Board approved three option grants to Bruce A. Kehr, the Company’s Chief Executive Officer and Chairman of the Board, each with an exercise price equal to the fair market value of the Company’s common stock on that date. The three option grants (i.e. 7.5, 7.0 and 6.5 million options) vest over three years, and are each subject to achieving performance targets established by the Board, and a portion for continued time of service. One of the grants is also subject to achieving fund raising targets. In accordance with SFAS No. 123(R), the Company has recorded stock-based compensation expense of $254,533 in connection with the issuance of these options during the nine month period ended September 30, 2008.

Production Agreement

The Company had a production agreement with a third party contract manufacturer which completed the production of the 750 additional units of the Med-eMonitor delivered in 2007.

During the third quarter of 2007, the Company entered into a new production agreement calling for the production of 1,500 additional Med-eMonitors units for delivery during 2008. The new units will be produced in quantities of 250 units. To shorten the production time, the Company provided the manufacturer with a deposit of $50,000 to purchase items which normally have a longer lead time to acquire. As the future units are completed, additional deposits may be necessary. As of September 30, 2008, the $50,000 had been used to acquire long lead time items, and the deposit was transferred to Inventory - Component Parts.

Under the terms of the production agreement, the new units will have a cost to the Company of approximately $360 per unit.

NOTE 11 - CUSTOMER CONCENTRATION

The Company leases a substantial portion of its product to a limited number of customers. During the nine month period ended September 30, 2008, revenue from the Company’s four largest customers, aggregated $150,555, or approximately 99% of total net revenue. At September 30, 2008, amounts due from these customers were $90,957.

Item 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Portions of the discussion in this Form 10-Q contain forward-looking statements, all of which included herein are based on information available to the Company on the date hereof, and the Company assumes no obligation to update any such forward-looking statements. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth elsewhere in this Form 10-Q, and as set forth in the Company's Form 10-KSB for the year ended December 31, 2007, filed with the SEC on April 8, 2008.

In December 2001, the Securities and Exchange Commission requested that all registrants discuss their "critical accounting policies" in management's discussion and analysis of financial condition and results of operations. The SEC indicated that a "critical accounting policy" is one that is both important to the portrayal of the company's financial condition and results and that requires management's most difficult, subjective or complex judgments. Such judgments are often the result of a need to make estimates about the effect of matters that are inherently uncertain. InforMedix currently believes the following accounting policies to be critical:

Revenue Recognition

In accordance with Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin (‘SAB”) No. 104, Revenue Recognition , the Company recognizes revenue when (I) persuasive evidence of a customer or distributor arrangement exists or acceptance occurs, (ii) a retailer, distributor or wholesaler receives the goods, (iii) the price is fixed or determinable, and (iv) collectability of the sales revenues is reasonably assured.

In all leases, the Company processes leases via credit cards with consumer customers and via usual and customary billing practices with institutional customers, and includes a clause in all contracts relating to timing of cancellations, and return of the Med-eMonitor units in an undamaged condition. In the event a Med-eMonitor or an expired lease is not returned or returned damaged, the lease provides for recovery of the costs to repair or fully replace a damaged or unreturned unit.

Revenues are derived as follows:

	a)	Front-end training, set-up and installation support services are earned at the time the service is rendered.

	b)	Revenue is recognized as a “Sales” transaction for any Med-eMonitor units wherein the title legally transfers to the patient or intermediary service provider.

	c)	Revenue is recognized on a monthly basis as rental income, wherein the Company retains title to the Med-eMonitor units.

	d)	Revenue is recognized on a monthly basis for a separate service fee for the back-end Med-eXpert hosting service, regardless of whether the Med-eMonitor units are deployed under the sales or rental transaction model as aforementioned. This fee includes reimbursement for the requisite monitoring and connectivity service to the individual deployed Med-eMonitor units.

	e)	Revenues from government grants are recognized at the time the services and/or provisioned equipment are rendered or provided respectively.

RESULTS OF OPERATIONS

For the three month period ended September 30, 2008, compared to the three month period ended September 30, 2007

The Company recognized $81,010 in revenues from the lease and sale of its Med-eMonitor(TM) System for the three month period ended September 30, 2008. This represents an increase of $18,983 from sales of $62,027 for the three month period ended September 30, 2007, which increase was primarily the result of revenues from the completed ADT/XL Health program. During the three month period ended September 30, 2008, certain grant revenues available during the comparable period in 2007 were also no longer available to the Company as the programs funded by the grants had been completed. The Company is transitioning from a principally grant-funded revenue base to a commercial customer revenue base.

Selling, General and Administrative Expenses (including all Selling, Marketing, and General/Administrative compensation and Black Sholes valuations of stock options expensed) for the three month period ended September 30, 2008 of $732,326 include a Black-Sholes adjustment recognizing the 2007 and 2008 Equity Incentive Plans in the amount of $129,876, along with the current vesting of previously awarded options of $1,466. During the three month period ended September 30, 2007, the Company recognized $1,796,083 of Black Sholes expense related to the 2007 Equity Incentive Plan, and $13,957 of vesting related to previously awarded options. Without this expense, the Selling Marketing and Administrative Expenses for the three month period ended September 30, 2007 was $581,488. By excluding the Black Sholes adjustments in both periods, the comparable Selling, General and Administrative Expenses for the three month period ended September 30, 2008 equaled $600,984 or an increase of $19,496 compared to $581,488 for the three month period ended September 30, 2007.

Product development expenses (including all Product development compensation, previously referred to as Research and Development) for the three month period ended September 30, 2008 of $109,518 increased by $7,377 compared to $102,141 for the three month period ended September 30, 2007. This increase reflects development costs related to the design and programming of the Med-eMonitor/Med-eXpert system and the development of the Company’s new Med-ePhone System.

Depreciation and Amortization expense for the three month period ended September 30, 2008 of $8,417 decreased by $2,469 compared to $10,886 for the three month period ended September 30, 2007. This decrease is principally related to the combination of the reduced depreciation related to fixed assets recorded as of December 31, 2007, the additional depreciation related to Med-eMonitors moved to fixed assets during 2008, and the sale of 94 units during the period.

The Company recognized interest income during the three month period ended September 30, 2008 in the amount of $31 for a decrease of $1,519 compared to the $1,550 recognized for the three month period ended September 30, 2007 due to reduced cash balances in its money market account. For the three month period ended September 30, 2008, the Company recognized $16,956 of interest expense related to the Subordinated Convertible Promissory Notes and Note Payable, along with $8,087 of Accretion of Interest in connection with the Black Sholes valuation related to the Subordinated Convertible Promissory Notes.

For the nine month period ended September 30, 2008, compared to the nine month period ended September 30, 2007

The Company recognized $151,667 in revenues from the lease and sale of its Med-eMonitor(TM) System for the nine month period ended September 30, 2008. This represents a decrease of $140,958 from sales of $292,625 for the nine month period ended September 30, 2007, which decrease was primarily the result of revenues from completed programs funded by grant monies. During the nine month period ended September 30, 2008, grant revenues were no longer available to the Company as the programs funded by the grants had been completed. The Company is transitioning from a principally grant-funded revenue base to a commercial customer revenue base.

During the nine month period ended September 30, 2007, the Company recognized $1,796,083 of Black Sholes expense related to the 2007 Equity Incentive Plan, and $131,586 of vesting related to previously awarded options. Without this expense, the Selling Marketing and Administrative Expenses for the nine month period ended September 30, 2007 was $1,796,516. By excluding the Black Sholes adjustments in both periods, the comparable Selling, General and Administrative Expenses for the nine month period ended September 30, 2008 equaled $1,553,357 or an increase of $243,159 compared to $1,796,516 for the nine month period ended September 30, 2007.

Product development expenses (including all Product development compensation, previously referred to as Research and Development) for the nine month period ended September 30, 2008 of $316,555 increased by $4,284 compared to $312,271 for the nine month period ended September 30, 2007. This increase reflects development costs related to improving the design and programming of the Med-eMonitor/Med-eXpert system and the development of the Company’s new Med-ePhone System.

Depreciation and Amortization expense for the nine month period ended September 30, 2008 of $27,597 decreased by $6,590 compared to $34,187 for the nine month period ended September 30, 2007. This decrease is principally related to the combination of the reduced depreciation related to fixed assets recorded as of December 31, 2007, the additional depreciation related to Med-eMonitors moved to fixed assets during 2008, and the sale of 94 units during the period.

The Company recognized interest income during the nine month period ended September 30, 2008 in the amount of $406 for a decrease of $2,974 compared to the $3,380 recognized for the nine month period ended September 30, 2007 due to reduced cash balances in its money market account. For the nine month period ended September 30, 2008, the Company recognized $25,922 of interest expense related to the Subordinated Convertible Promissory Notes and Note Payable, along with $13,229 of Accretion of Interest in connection with the Black Sholes valuation related to the Subordinated Convertible Promissory Notes.

LIQUIDITY AND CAPITAL RESOURCES

For the nine month period ended September 30, 2008, the Company did not have an operating line of credit from a financial institution and consequently has relied on equity financing from investors to manufacture Med-eMonitor™ units. We had cash and cash equivalents on deposit of $37,757 at September 30, 2008, as compared with $370,284 at December 31, 2007. In addition, as of September 30, 2008, the Company had accounts receivable equaling $99,297 or an increase of $27,512 from the $71,695 accounts receivable recorded as of December 31, 2007.

At September 30, 2008 the Company had $854,219 in uncontested trade debt and accrued expenses, and $105,985 of contested trade debt, as more fully discussed in Part II, Item 1 - Legal Proceedings.

As more fully described in the Financial Statements for the nine month period ended September 30, 2008, we initiated PPM 8, a private placement offering through Murdock Capital Partners in March 2008, with a maximum limit of $1,000,000, subject to an over-subscription allowance of an additional $300,000. In May 2008, we modified this offering by increasing the maximum limit to $2,000,000 with an over-subscription allowance of an additional $1,000,000. On May 27, 2008 the Company terminated its relationship with Murdock, and continued the Offering through its own efforts.

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business.

To date, we have not invested in derivative securities or any other financial instruments that involve a high level of complexity or risk. We plan to invest any excess cash in investment grade interest bearing securities.

The Company had a working capital deficit of $1,521,823 at September 30, 2008, which produced a current ratio of 0.25 to 1.0. At December 31, 2007, the Company had a working capital surplus of $175,740 and a current ratio was 1.3 to 1.0.

We have not declared any cash dividends on our common stock since our inception and do not anticipate paying such dividends in the foreseeable future. We plan to retain earnings, to support the development of our business. Payment of future dividends, if any, will be at the discretion of our Board of Directors after taking into account various factors, including our financial condition, operating results, current and anticipated cash needs and plans for expansion.

IMPLEMENTATION OF BUSINESS PLAN

Revenue recognition will be critical to our future success. The following eight phases summarize the strategies and tactics that we have employed and will continue to employ in order to generate future revenues:

In Phase I, we have established and expanded upon its Pioneer Patent Portfolio to protect the substantial investment involved in launching the Med-eMonitor System.

In Phase II, we developed and tested the Med-eMonitor System to maximize its functionality and value proposition.

In Phase III, we scientifically established that the Med-eMonitor System improves patient medication and care plan adherence, using independent third party academic medical center trials, peer-reviewed medical journal articles, presentations at national and international scientific symposia, and receiving a national award for technologic excellence. These research studies and awards provide a scientific basis for the marketing and sales claims that we make to customer prospects.

In Phase IV, we increased our visibility to customer prospects without building a large infrastructure, by establishing strategic alliances to penetrate the disease management markets. We also increased our visibility through positioning our CEO as a national expert in the field of medication adherence, by his being appointed to Chair a prestigious Medical Board, being personally invited by hosts of prestigious seminars to network with CEOs of prospective customers, and by public speaking including symposia presentations and print, radio, and televised interviews.

In Phase V, we improved the Company's ability to make direct sales into the disease management and managed care markets, through

strategic channel partner relationships with companies that employ top performing sale people experienced in these markets.

In Phase VI, we believe we will achieve significant revenue recognition, and began achieving revenues with nationally recognized customers, including programs with XLHealth and ADT (a Medicare Program in Tennessee), the University of Pennsylvania (two programs, including one funded by the Aetna Foundation), the University of California San Francisco (an HIV Program), and the University of Texas Health Science Center at San Antonio (treatment of Schizophrenia).

In Phase VII, we intend to advance our awareness program to improve the visibility of the Company and its Med-eMonitor/Med-ePhone/Med-eXpert system to both the general public, and within our industry, In connection with this effort, we have also initiated efforts to make the Company's products available on a both a retail pharmacy and E-Store basis.

In Phase VIII, we have begun working with Cindy Andreotti and the Andreotti group, who have become actively involved in assisting the Company in securing revenue-producing contracts through: traveling with the Company’s CEO to attend business development meetings with business alliance partners and customers; actively engaging in negotiating customer and alliance transactions with the Company’s CEO and Senior Management; originating and sourcing potential customers and alliance partners from The Andreotti Group’s contacts; meeting with prospective investors in InforMedix; attracting prospective investors to meet with the Company’s CEO and facilitating and attending those meetings; and revising the Company’s business and financial plan to address how the Company can generate increased revenues over both the shorter and longer terms, target customers at more senior levels of management who have strategic responsibility and budgetary authority to commit to projects using the Med-eXpert System, repositioning the Company’s product and service offerings to create higher value in the minds of prospective customers; and other activities. Through this process we have begun to take steps to broaden our investor base to strengthen our balance sheet, and to thereby improve the marketability of our products to institutional customer prospects by attracting individual investors with both the capability to invest larger sums of money as well as possessing business and government contacts that may be of use to expand the Company’s business. This type of investor has already been attracted to invest in the Company’s current round of convertible debt financing.

On March 26, 2008 InforMedix Holdings, Inc. announced that results presented by Dr. David Bangsberg, an internationally renowned expert on medical adherence, at the Third International Conference on HIV Adherence. Dr. Bangsberg’s report showed that HIV+ patients using its Med-eMonitor “smart pillbox”, that monitors medication and care plan adherence, achieved an average 89.5% medication adherence rate. The Med-eMonitor “smart pillbox”, which is linked and supported by the Med-eXpert™ software system analyzes patient information and provides real-time Web-enabled reports and urgent outbound alerts to caregivers when patients miss medication or suffer declining health. Approximately 1.2 million people in the US are living with HIV, with an additional 40,000 are reportedly becoming infected each year, costing the US health care system approximately $50,000-$75,000 per year per patient, or $50 to $75 billion in total annual costs. Average adherence to HIV antiretroviral therapy is under 70%, and 20-33% of HIV-positive patients will miss at least one of their doses over any given 3-day period. Given that a 10% difference in adherence by individuals is associated with a doubling of viral load, and a 21% increase in the risk of progression to full-blown AIDS; based upon the statistics above Med-eMonitor/Med-eXpert offers the potential for a 40% decrease in the risk of an HIV patient developing full blown AIDS. . The challenging population of 76 patients that were enrolled in the program not only suffered from HIV infection, but frequently were also suffering from drug abuse and severe mental illness, and were near-homeless situations.

On April 17, 2008, the Company announced a strategic relationship with InnovationRx a provider of prescription medication adherence solutions, wherein we announced an agreement to market and sell a combined product line to a broad spectrum of Federal and State Governmental Agencies, insurance companies, health plans, managed care companies, disease management organizations, and other related private and public industry organizations and plans. InnovationRx, the healthcare division of Innovation Group employs an inter-disciplinary, multi-modal methodology to assess and improve medication adherence, which provides clinical evaluation, customized interventions and progress reports. Their services, developed in a research grant partnership with Northeastern University School of Pharmacy, are anchored by proprietary medication adherence risk-assessment instruments and intervention plans, combined with interactive Web-based tools and live pharmacists in call centers. These licensed pharmacists, trained in motivational interviewing and compliance, provide patients with personalized, one-to-one support and consultation. Innovation Group is a global company with revenues in excess of $250 million and is focused on providing risk management business solutions to various industries and marketplaces throughout the world. InforMedix and InnovationRx have begun joint marketing and sales activities to a series of health plan, managed care, pharmaceutical company and military prospects

On May 5 2008 the Company initiated the commercial availability of its Med-ePhone System. The Med-ePhone system provides a simple, inexpensive method for reminding users to take their medications regularly, and records and monitors patient medication adherence and health status over mobile phones and landlines. The Med-ePhone system sends patient-reported data to be analyzed by proprietary software algorithms already operational in InforMedix’s Med-eXpert™ System which will then alert loved ones and/or care managers when a patient’s medications are missed or health declines. Once Med-ePhone users are linked into the system, they receive up to three daily reminders which include prompts to provide answers to simple health status queries. In addition to tracking patient adherence to their medication use and their health status the Med-ePhone System provides healthcare professionals with automated real-time alerts when patients miss their medications or they report that their health status is worsening.

To advance the commercial prospects for Med-ePhone, on August 12^th, 2008, the Company announced that it is teaming up with Audiopoint, also of Rockville, to provide advanced voice-enabled communications, automatic speech recognition, and medication compliance and persistence information services in real-time on mobile appliances; to improve medication compliance and persistence, which reduces healthcare costs and increases pharmaceutical company and pharmacy sales revenues. Audiopoint is a leading provider of innovative voice and data services for consumer-oriented businesses in the Fortune 500.

InforMedix’s Med-eXpert and Med-ePhone systems provide real-time, customizable, and actionable information about the medication adherence and health status of chronically ill patients using any cellular or home telephone service. The joint technology combines Audiopoint’s world class, consumer-centric voice portal with InforMedix’s Med-eXpert intelligent system to link patient data with each of the key stakeholders administering care including family members, pharmacists, caregivers and physicians.

Under the agreement, Audiopoint and InforMedix will seek to sell InforMedix’s Med-ePhone System to both companies’ existing and future non-healthcare corporate and consumer customers. The newly combined services will be marketed to pharmaceutical manufacturers interested in improving brand compliance and persistence; pharmacy customers seeking improved medication and care plan adherence; and chronic care management companies who are searching for technologies to improve health outcomes and reduce costs. Additionally, the Audiopoint solution will include a revenue generating Ad Model. This unique opportunity to communicate with the consumer is a bright spot in a declining advertising market due to its granular target-ability and extremely high ROI.

According to eyeforpharma.com and the Managing Director of Eularis Dr. Andrew Bates, medication non-adherence costs the pharmaceutical industry estimated $30 B annually in lost revenues. Acquiring new patients can be six times more costly than retaining current patients, so increasing the focus on medication adherence can translate into additional top line and bottom line revenues to pharmaceutical manufacturers. In fact, a recent report from MIT’s Sloan School of Management found that improving customers’ medication adherence by 25% can benefit a community pharmacy with increased gross revenues of $1.7 M, or gross profits of $400,000 a year.

In 2005, research by Arar published in the journal Informatics in Primary Care reported that a phone reminder system used in a therapy setting for which forgetting to take medication is a key underlying issue can substantially improve the return-on-investment. Even if just 6.5% of a patient population participates in the program and increases their adherence rate from the typical 40% to 85%, using a drug that generates 2 million prescriptions a year at a cost of $80 a month could lead to increased revenues of $45 million. If the intervention costs $5 per patient per month, companies could potentially realize an ROI of upwards of 300% to 600%. Balance that with fact that pharmaceutical manufacturers spent, according to ProQuest, more than $4.2 billion in direct-to-consumer advertising in 2005, and that amount is accelerating upward.

SUBSEQUENT EVENTS

During the period October 1 through October 31, 2008, the Company closed on an additional $50,000 investment through the March convertible debt offering. As mentioned earlier in this report, the Offering increased the maximum funding to $2.0 million, and also increased the over subscription allowance to $1.0 million.

During October, 2008, the Andreotti Group completed its strategic review of InforMedix and submitted a comprehensive Business Plan, Five Year Financial Model, Revised Investor Power Point Presentation, and Executive Summary of the Business Plan. The review included strategic assessments of the various offerings within the growing competitive market area, and focused on the unique strengths of the InforMedix Med-eXpert System, and the Med-eMonitor and Med-ePhone capabilities. In addition, the review also underscored the substantial benefits, whether significant cost savings or expanded revenues, available to pharmaceutical companies, disease management organizations, health care providers and agencies, which can be achieved through adoption of the InforMedix information solutions.

On October 28, 2008, the Andreotti Group and InforMedix’s CEO presented the Investor PowerPoint Presentation, along with its findings, observations and recommendations to the InforMedix Board of Directors during the Company’s Board Meeting.

During the October Board of Directors Meeting, senior management reviewed the status of current financing efforts in view of the weakening economy and the effect on micro-cap companies, in addition to current discussions with various marketing opportunities. Based on this review, the Company believes several opportunities exist, which should advance efforts to secure short term and longer term financing.

The Company and the Andreotti Group are in active discussions with respect to the Andreotti Group’s ongoing engagement with the Company in business development to drive increased revenues, fundraising activities, and assistance with scaling operations to plan for potential increased levels of orders for the Company’s products and services.

In addition, in view of management’s deferral of salaries over the past year, the Board authorized the Company to compute interest at the rate equal to the rate used in the current Subordinated Convertible Debt offering and issue warrants consistent with the offering equal to the deferred payrolls prior to the end of the current calendar year to management. The Board also increased the number of options granted to the Chief Financial Officer (2.1 million options), and to certain members (250,000 each) of the Board for their roles as Committee Chairman, and also authorized an increase in the number of options granted to each Board Member by 500,000 options per member. In total 5.1 million additional options were granted as of October 28, 2008.

InforMedix and Audiopoint have initiated platform integration development activities. On November 5, 2008 business development executives from Audiopoint, InforMedix, and the Andreotti Group met with one of the top five (by revenues) pharmaceutical companies to present the InforMedix/Audiopoint joint product and service offerings to improve medication adherence (compliance and persistence) for consumers of prescription medications. Joint presentations are being pursued with additional pharmaceutical manufacturers.

On November 17, 2008 the Company was notified in writing by a physician at the University of Pennsylvania Health System, that its Specialty Coagulation Clinic, already using the Med-eXpert System under a novel lottery-based incentive program involving 100 patients to prevent stroke through improved adherence to Coumadin, (in a program funded by the Aetna Foundation), that their National Heart Lung and Blood Institute proposal for a 4-arm study of incentives for warfarin adherence has been funded. The physician indicated that they are hoping to start recruiting participants in January/February, and that he wants to talk soon about formally placing an order with InforMedix to activate the contract for which InforMedix had previously submitted its budget, for a study which would involve 268 patient participants to be placed on the Med-eMonitor/Med-eXpert System.

Item - 3 Quantitative and Qualitative Disclosures About Market Risk

As a Smaller Reporting Company as defined by Rule 12b-2 of the Exchange Act, and in Item 10(f)(1) of Regulation 8-K, we are electing scaled disclosure reporting obligation and therefore are not required to provide the information requested by this item

Item - 4T CONTROLS AND PROCEDURES

Based on an evaluation of our disclosure controls and procedures as of the end of the quarterly period covered by this report (and the financial statements contained in the report), our Chief Executive Officer and Chief Financial Officer believe that our current disclosure controls and procedures are effective as of this date, given the Company’s limited staffing. Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our Disclosure Controls and internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, with the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of controls.

The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, a control may become inadequate because of changes in conditions or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and may not be detected.

In the most recently completed fiscal quarter, the Company was required to reduce its operating expenses, and suspended the services of its local accounting services firm and assistant bookkeeper. We do not believe that the suspension of these services in this fiscal quarter has materially altered the Company’s financial controls.

PART II - OTHER INFORMATION

Item - 1 LEGAL PROCEEDINGS

In the ordinary course of business, InforMedix may be involved in legal proceedings from time to time. Private litigants may also make claims against InforMedix for violations of healthcare laws in actions known as qui tam suits and the government may intervene in, and take control of, such actions.

No governmental agency has instituted any proceedings or served InforMedix with any complaints. InforMedix anticipates that, from time to time, it will receive inquiries from the FDA and other government agencies requesting records and other documents. It is InforMedix's policy to cooperate with all such requests for information.

The Company previously advised two former service providers that their billings (amounting to an aggregate of $147,777) are contested. The Company also notified these firms that the Company would seek not only forgiveness of the billings, but also a yet to be determined monetary recovery.

Following our notices of February 1, 2007, the Company entered into a settlement agreement with Wolfe Axelrod Weinberger Associates, LLC (“WAW”), and the terms of the settlement agreement were fully satisfied as of March 1, 2008. The Company has not received any settlement offers from the remaining notice former service provider as of November 14, 2008.

Item - 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The Company has not offered any straight Equity financing offering during 2008. However, the Company is currently seeking to raise funds through a Convertible Note offering, which is described below.

The Notes are also convertible into shares of equity or equity linked securities offered in the future by the Company, or into shares of the Company’s common stock at a fixed price per share of $0.10. In addition, one-half Class M warrant will be issued for every dollar invested through this offering, which can be exercised to purchase additional shares of the Company’s common stock within five years from the date acquired at a price of $0.15 per share. As of June 30, 2008 $705,000 of funds were received from this offering. Of this total, one of the subscribers elected to convert their $15,000 Note into the common stock of the Company at the $0.10 fixed share price. As of September 30, 2008, the outstanding Notes under this offering equaled $870,000.

These sales were intended to be exempt from the registration requirements of the Securities Act, pursuant to Regulation D there under.

Item - 3 DEFAULTS UPON SENIOR SECURITIES

None.

Item - 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

Item - 5 OTHER MATTERS

None.

ITEM - 6 EXHIBITS

Set forth below is a list of the Exhibits to this Quarterly Report for the three months ended September 30, 2008:

Exhibit #		Description
31.1		Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1		Certification pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2		Certification pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

SIGNATURES

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.


Dated: November 18, 2008	InforMedix Holdings, Inc.

	By:	/s/ Bruce A. Kehr
		Bruce A. Kehr, Chief Executive Officer
		(Principal executive officer)


	By:	/s/ Harry M. Stokes
		Harry M. Stokes, Chief Financial Officer
		(Principal financial officer)

InforMedix Holdings, Inc.

Quarterly Report on Form 10

Nine and Three month Periods Ended September 30, 2008

EXHIBIT INDEX

Exhibit Number		Description
31.1		Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1		Certification pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2		Certification pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

INFORMEDIX HOLDINGS INC 10-Q