UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON D.C. 20549

FORM 10-Q

x	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2009

o	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number: 000-29531

ADVANCED MEDICAL INSTITUTE INC.

(Exact Name of Registrant as Specified in Its Charter)

NEVADA		88-0409144
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

Level 4, Terrace Tower, 80 William Street

Sydney, NSW

Australia 2000

(Address of Principal Executive Offices) (Zip Code)

	(61) 2 9640 5253
	(Registrant’s Telephone Number, Including Area Code)


	(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 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.

Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every, Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer, ” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated Filer o	Accelerated Filer o	Non-Accelerated Filer o	Smaller Reporting Company x
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act). Yes o No x

There were 53,507,450 shares of the Registrant’s Common Stock issued and outstanding on November 23, 2009.

TABLE OF CONTENTS

		Page

Part I.	Financial Information	3

	Item 1. Financial Statements	3

	Consolidated Balance Sheets (Unaudited) as at September 30, 2009 and June 30, 2009	3

	Consolidated Statements of Operations (Unaudited) for the Three Month Periods Ended September 30, 2009 and 2008	4

	Consolidated Statements of Cash Flows (Unaudited) for the Three Month Periods Ended September 30, 2009 and 2008	5

	Notes to Consolidated Unaudited Financial Statements	7

	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	17

	Item 3. Quantitative and Qualitative Disclosures About Market Risk	21

	Item 4T. Controls and Procedures	22

Part II.	Other Information	22

	Item 1. Legal Proceedings	22

	Item 1A. Risk Factors	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	22

	Item 6. Exhibits	22

SIGNATURES		23

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ADVANCED MEDICAL INSTITUTE INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	September 30, 2009			June 30, 2009
ASSETS
CURRENT ASSETS
Cash & cash equivalents	$	344,270		$	295,245
Receivables, net		27,632,227			24,021,361
Receivables due from related parties		380,677			428,525
Inventory		897,671			911,405
Other assets		813,678			1,014,424
TOTAL CURRENT ASSETS		30,068,523			26,670,960

NON-CURRENT ASSETS
Security deposits		191,384			181,584
Property and equipment, net		1,717,528			1,630,979
Assets related to discontinued operations		301,542			289,977
Deferred tax assets		264,479			678,270
Intangible assets, net		19,538,754			18,327,078
TOTAL NON-CURRENT ASSETS		22,013,687			21,107,888

TOTAL ASSETS	$	52,082,210		$	47,778,848

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Unearned revenue	$	7,983,157		$	8,003,468
Accounts payable & accrued expenses		17,576,748			15,852,436
Payables due to related parties		107,201			278,737
Interest bearing liabilities – current		692,468			1,083,908
Liabilities related to discontinued operations		5,171			4,100
TOTAL CURRENT LIABILITIES		26,364,745			25,222,649

NON-CURRENT LIABILITIES
Interest bearing liabilities - non-current		783,086			642,453
Payable due to related parties		4,827,936			3,803,131
TOTAL NON-CURRENT LIABILITIES		5,611,022			4,445,584

TOTAL LIABILITIES		31,975,767			29,668,233

Commitments & Contingency

STOCKHOLDERS’ EQUITY
Common stock, par value $0.001 per share, 90,000,000 shares authorized, 53,507,450 issued and outstanding as at September 30, 2009 and June 30, 2009		53,507			53,507
Additional paid in capital		24,149,420			24,149,420
Other comprehensive loss		2,133,221			953,945
Accumulated deficit		(6,229,705	)		(7,046,257	)
TOTAL STOCKHOLDERS’ EQUITY		20,106,443			18,110,615

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	52,082,210		$	47,778,848

The accompanying notes are an integral part of these unaudited financial statements.

ITEM 1. FINANCIAL STATEMENTS (CONTINUED)

ADVANCED MEDICAL INSTITUTE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Month Periods Ended
	September 30, 2009			September 30, 2008

NET REVENUE	$	14,507,711		$	15,944,448

COST OF REVENUE		(3,291,231	)		(3,591,200	)

GROSS PROFIT		11,216,480			12,353,248

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		(9,774,975	)		(11,753,265	)

OPERATING INCOME		1,441,505			599,983

OTHER INCOME AND (EXPENSE)
Bank interest		1,736			34,610
Other income		-			20,646
Interest expense		(154,022	)		(71,745	)

TOTAL OTHER INCOME (EXPENSE)		(152,286	)		(16,489	)

INCOME FROM CONTINUED OPERATIONS		1,289,219			583,494

DISCONTINUED OPERATIONS
Loss from discontinued operations		(23,334	)		(95,001	)
Total loss from discontinued operations		(23,334	)		(95,001	)

INCOME BEFORE INCOME TAXES		1,265,885			488,493

INCOME TAX EXPENSE		(449,333	)		(373,847	)

NET INCOME		816,552			114,646

Other Comprehensive item - Foreign currency translation income (loss)		1,179,276			(4,854,822	)

Net Comprehensive Income (Loss)	$	1,995,828		$	(4,740,176	)

Earnings per common share – continued operations	$	0.02		$	0.00
Earnings per common share – discontinued operations	$	(0.00	)	$	0.00
Earnings per common share – basic & diluted	$	0.02		$	0.00
Weighted average number of shares, basic & diluted		53,507,450			53,507,450

The accompanying notes are an integral part of these unaudited financial statements.

ITEM 1. FINANCIAL STATEMENTS (CONTINUED)

ADVANCED MEDICAL INSTITUTE INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Month Periods Ended
	September 30, 2009			September 30, 2008

Cash Flows from Operating Activities

Receipts from Customers	$	10,964,097		$	11,383,497
Interest Received		1,736			34,610
Payment to Suppliers & Employees		(10,295,645	)		(10,749,565	)
Interest Paid		(154,022	)		(71,745	)
Income Tax Paid		(107,885	)		(115,570	)
Net cash provided by operating activities of continued operations		408,281			481,227
Net cash provided by (used in) discontinued operations		6,949			(100,639	)
Net cash provided by operating activities		415,230			380,588

Cash Flows from Investing Activities

Loans to related entities		-			(784,233	)
Payment for Property, Plant & Equipment		(6,272	)		(143,452	)
Payment for Intangible Assets		(24,659	)		(17,629	)

Net cash used in investing activities		(30,931	)		(945,314	)

Cash Flows From Financing Activities
Proceeds from Borrowings		869,900			356,696
Repayment of Borrowings		(855,769	)		(91,130	)

Net cash provided by (used in) financing activities		14,131			265,566

Net increase(decrease) in cash and cash equivalents		398,430			(299,160	)
Effect of exchange rate on cash		(349,405	)		(486,066	)
Cash and cash equivalents at beginning of period		295,245			3,127,029

Cash and cash equivalents at end of period	$	344,270		$	2,341,803

The accompanying notes are an integral part of these unaudited financial statements.

ITEM 1. FINANCIAL STATEMENTS (CONTINUED)

ADVANCED MEDICAL INSTITUTE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(CONTINUED)

	Three Months Ended
	September 30, 2009			September 30, 2008

Reconciliation of Cash & Cash Equivalents

Cash & cash equivalents at the end of financial period as shown in the Statement of Cash Flows is reconciled to the related items in the Consolidated Balance Sheets as follows:

Cash & Cash Equivalents	$	344,270		$	2,341,803

Reconciliation of Cash Flow from Operations with Profit from Ordinary Activities after Income Tax
Net Income	$	816,552		$	114,646

Non-Cash Flows in Profit from Ordinary Activities
Depreciation and amortization		410,348			463,165
Provision for doubtful accounts		1,373,313			1,764,158

Changes in Assets and Liabilities
Decrease in inventories		86,643			210,906
Increase in receivables		(2,524,889	)		(5,188,309	)
(Decrease) Increase in unearned revenue		(665,211	)		612,625
Increase in payables		382,107			2,175,148
Increase in provisions for compensated absences		74,777			70,431
Increase in deferred tax liabilities		449,333			633,613
Increase in security deposit		5,308			183
Decrease in income tax payable		-			(375,339	)

Net cash provided by operating activities of continued operations		408,281			481,227
Net cash provided by (used in) operating activities of discontinued operations		6,949			(100,639	)
Net cash provided by operating activities	$	415,230		$	380,588

Supplemental Cash Flow Disclosures:
Interest paid	$	154,022		$	71,745

Income tax paid	$	-		$	115,570

Non-Cash Investing/Financing Activities:
Assets acquired under capital leases	$	-		$	136,303

The accompanying notes are an integral part of these unaudited financial statements.

ADVANCED MEDICAL INSTITUTE INC.

AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2009

1.	NATURE OF BUSINESS

Nature of Business

We were originally incorporated under the name of Hawksdale Financial Visions, Inc. on December 6, 1996 under the laws of the State of Nevada. We were involved in the business of timeshares, but became dormant on March 31, 1997, and until January 28, 2005, we were a “blank check” company with nominal assets. On October 15, 2004, we changed our name to “Advanced Medical Institute, Inc.” On March 21, 2005, we completed a Share Exchange Agreement with Advanced Medical Institute Pty Limited, a privately owned Australian company (“AMI Australia”), whereby AMI Australia became our wholly-owned subsidiary. On November 17, 2005, we entered into a Share Exchange Agreement with PE Patent Holdco Pty Limited, a privately owned Australian company (“PE Patent Holdco”), whereby PE Patent Holdco became our wholly-owned subsidiary. On September 8, 2006, we entered into a Share Exchange Agreement with Worldwide PE Patent Holdco Pty Limited (ACN 117 157 727), a privately owned Australian company (“Worldwide PE”), whereby Worldwide PE became our wholly-owned subsidiary.

Business Overview

AMI is a service provider company, which arranges for patients with sexual dysfunction and prostate problems in Australia, New Zealand and the United Kingdom to be provided with medical services, pharmaceuticals and associated clinical support services.

For the year ended June 30, 2009, AMI’s revenues were approximately $53.4 million.

2.	BASIS OF PRESENTATION

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair presentation of AMI’s financial position and the results of operations for the interim periods presented. Notes to the unaudited consolidated financial statements that would substantially duplicate the disclosures contained in AMI’s audited consolidated financial statements for its most recent fiscal year have been omitted.

3.	RECENT PRONOUNCEMENTS

In June 2009, the FASB issued SFAS No.167, Consolidation of Variable Interest Entities, which changes the consolidation rules as they relate to variable interest entities. Specifically, the new standard makes significant changes to the model for determining who should consolidate a variable interest entity, and also addresses how often this assessment should be performed. This standard will be effective for us on July 1, 2010. We do not expect the adoption will have a material impact on our consolidated financial statements.

In August 2009, the FASB issued Accounting Standards Update (“ASU”) 2009-05, which amends Accounting Standards Codification (“ASC”) Topic 820, Measuring Liabilities at Fair Value, which provides additional guidance on the measurement of liabilities at fair value. Specifically, when a quoted price in an active market for the identical liability is not available, the new standard requires that the fair value of a liability be measured using one or more of the valuation techniques that should maximize the use of relevant observable inputs and minimize the use of unobservable inputs. In addition, an entity is not required to include a separate input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer of a liability. This standard will be effective for us on October 1, 2009. We do not expect the adoption will have a material impact on our consolidated financial statements.

In October 2009, the FASB issued ASU 2009-13, which amends ASC Topic 605, Revenue Recognition, to require companies to allocate revenue in multiple-element arrangements based on an element’s estimated selling price if vendor-specific or other third-party evidence of value is not available. ASU 2009-13 is effective beginning July 1, 2010. Earlier application is permitted. The Company is currently evaluating both the timing and the impact of the pending adoption of the ASU on its consolidated financial statements.

4.	INTANGIBLE ASSETS

The Company applies the criteria specified in SFAS No. 141 (ASC 805), “Business Combinations” to determine whether an intangible asset should be recognized separately from goodwill. Intangible assets acquired through business acquisitions are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion. Per SFAS 142 (ASC 350), intangible assets with definite lives are amortized over their estimated useful life and reviewed for impairment in accordance with SFAS No. 144 (ASC 360), “Accounting for the Impairment or Disposal of Long-lived Assets.” Intangible assets, such as purchased technology, trademark, customer list, user base and non-compete agreements, arising from the acquisitions of subsidiaries and variable interest entities are recognized and measured at fair value upon acquisition. Intangible assets are amortized over their estimated useful lives from one to ten years. The Company reviews the amortization methods and estimated useful lives of intangible assets at least annually or when events or changes in circumstances indicate that it might be impaired. The recoverability of an intangible asset to be held and used is evaluated by comparing the carrying amount of the intangible asset to its future net undiscounted cash flows. If the intangible asset is considered to be impaired, the impairment loss is measured as the amount by which the carrying amount of the intangible asset exceeds the fair value of the intangible asset, calculated using a discounted future cash flow analysis. The Company uses estimates and judgments in its impairment tests, and if different estimates or judgments had been utilized, the timing or the amount of the impairment charges could be different.

Goodwill, trademarks and other intangible assets determined to have indefinite useful lives are not amortized. We test such trademarks and other intangible assets with indefinite useful lives for impairment annually, or more frequently if events or circumstances indicate that an asset might be impaired. Goodwill, trademarks, patents and other intangible assets determined to have definite lives are amortized over their estimated useful lives or the life of the trademark, patent and other intangible asset, whichever is less.

Impairment is determined by assessing the recoverable amount of the cash-generating unit (group of cash-generating units), to which the intangible asset relates. When the recoverable amount of the cash-generating unit (group of cash-generating units) is less than the carrying amount, an impairment loss is recognised.

At September 30, 2009 and June 30, 2009, intangibles consist of the following:

Intangibles	Gross Carrying Amount		Accumulated Amortization			Impairment Loss			Net Carrying Amount September 30, 2009		Net Carrying Amount June 30, 2009

Amortized intangibles:
Australian Patents	$	5,764,240	$	(1,193,929	)	$	-		$	4,570,311	$	4,284,773

Worldwide Patents		4,364,496		(735,881	)		(1,494,711	)		2,133,904		2,011,523

Intellectual Property		17,667,245		(2,891,419	)		(5,380,966	)		9,394,860		8,865,082

Computer Software		540,322		(361,888	)		-			178,434		158,883

Unamortized intangibles:
Intellectual Property		3,261,245		-			-			3,261,245		3,006,817

	$	31,597,548	$	(5,183,117	)	$	(6,875,677	)	$	19,538,754	$	18,327,078

The Company assigned an 18 year life to the patents that are held by Worldwide PE Patent and a 19 year life to the patents that are held by PE Patent.

The exchange rate used for the period ended June 30, 2009 was A$:US$ 1:0.80480, and the rate used for the period ended September 30, 2009 was A$:US$ 1:0.87290. The rate change caused net book value of intangible assets to increase, notwithstanding the addition to accumulated amortization.

For intellectual property, the Company assigned an 18 year life to the intellectual property that arose from Worldwide PE Patent, a 19 year life to the intellectual property that arose from PE Patent, and indefinite life to the intellectual property that arose from IMT.

Computer software was assigned a 3 year life.

Amortization expense from continuing operations for the three months ended September 30, 2009 and 2008 were $325,658 and $414,219, respectively. The Company expects the amortization expenses for the next five years to be as follows:

Year Ending September 30,	Annual Amount

2010	$	1,303,000
2011	$	1,303,000
2012	$	1,303,000
2013	$	1,303,000
2014	$	1,303,000

5.	OTHER ASSETS

Following is the summary of other assets as of September 30, 2009 and June 30, 2009.

	September 30		June 30
Bank guarantees	$	224,367	$	206,863
Advances and prepayments		37,361		42,640
Other receivables		9,907		9,134
Other debtors		542,043		755,787

Total	$	813,678	$	1,014,424

6.	PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment comprised of the following as of September 30, 2009 and June 30, 2009:

	September 30		June 30

Leasehold improvements	$	634,330	$	590,908
Less: Accumulated depreciation		85,078		62,258
		549,252		528,650

Motor Vehicles		81,601		75,235
Less: Accumulated Depreciation		44,122		38,966
		37,479		36,269

Office Furniture & Equipment		1,363,136		1,217,911
Less: Accumulated Depreciation		372,814		289,911
		990,322		928,000

Computer Hardware		451,224		413,800
Less: Accumulated Depreciation		352,553		315,635
		98,671		98,165

Low Value Pooled Fixed Assets		190,457		173,057
Less: Accumulated Depreciation		148,653		133,162
		41,804		39,895

Total Property, Plant and Equipment, net	$	1,717,528	$	1,630,979

Included in property and equipment are assets of approximately $531,261 and $489,814, as of September 30, 2009 and June 30, 2009, that are leased under non-cancellable leases and accounted for as capital leases, which expire through October 2013. The accumulated depreciation included in the property and equipment for these leases is approximately $127,044 and $102,469 as of September 30, 2009 and June 30, 2009.

7.	INTEREST BEARING LIABILITIES

Interest bearing liabilities comprised of the following as of September 30, 2009 and June 30, 2009:

	September 30		June 30
Current, as of the period ended
Capitalized lease liability	$	183,071	$	165,533
Secured loan (1)		509,397		918,375
	$	692,468	$	1,083,908

Non-current, as of the period ended
Capitalized lease liability	$	183,314	$	212,720
Secured loan (1)		599,772		429,733
Total non-current	$	783,086	$	642,453

(1) The Company borrowed A$2.4 million from St George Bank Limited in December 2008 comprising a A$1.9 million term facility and a A$500,000 overdraft facility. The loan is secured by a first ranking security interest in all of AMI Australia’s assets and undertakings (including its existing equity interests in PE Patent Holdco Pty Limited, Intelligent Medical Technologies Pty Limited and Advanced Medical Institute (NZ) Limited). The term facility is a commercial bill acceptance/discount facility whereby the Company regularly discounts bills with the bank at the prevailing interest rate plus a margin of 1.65%. The average all-up cost of this facility during the period was 5.26%. On each rollover the interest rate is reset. The loan is due for repayment in December 2011, however the Company is required to make principal repayments of A$50,000 per month during each month of the term. As at September 30, 2009, the total outstanding under the facility was A$1,774,967.

The interest bearing liabilities require monthly payments of principal and interest at a per annum interest rate ranging from 5.26% to 14.17%. Interest expense on the interest bearing liabilities amounted to $152,286 and $71,745 for the three month periods ended September 30, 2009 and 2008, respectively.

8. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses as of September 30, 2009 and June 30, 2009 are summarized as follows:

	September 30		June 30

Bank overdraft	$	436,201	$	481,319
Accounts payable		8,830,145		8,642,972
Accrued salaries		750,266		480,436
Accrued professional fees		30,552		60,360
Other current liabilities		1,318,458		1,087,589
Accrued DDR medication cost		1,585,186		1,259,512
Accrued DDR sales commission		1,681,205		1,377,818
Accrued DDR collection fee		1,681,205		1,377,818
Provision for patient refund		139,664		120,720
Accrued compensated absences		1,123,866		963,892
Total	$	17,576,748	$	15,852,436

9.	LEGAL PROCEEDINGS

As of September 30, 2009, there was no litigation pending or threatened by or against the Company or any of its direct or indirect subsidiaries other than AMI Australia. AMI Australia currently is involved in the following litigation and administrative matters:

On October 25, 2006, Bade Medical Institute Pty Limited, Mr. David Wade, Mr. Buddy Beani and others (collectively “Bade”) applied for Trade Mark No. 114322021 in respect of the words “AMI Nasal Spray.” AMI Australia lodged an objection to the registration of that application with IP Australia on June 21, 2007 and that application was subsequently refused. On December 13, 2007, AMI Australia commenced proceedings in the Federal Court of Australia Sydney Registry against Bade alleging Bade was infringing upon AMI Australia’s trademarks and other intellectual property rights. On December 19, 2007, Bade consented to orders that Bade transfer ownership of certain domain names and telephone numbers to AMI Australia and consented to orders that Bade would not use certain names which contained the word AMI. Bade appear to have ceased operation since the orders were obtained and has transferred the required names to AMI Australia. AMI subsequently applied for final orders and damages against Bade and final hearing of this matter concluded on September 2, 2009. The court has indicated that judgment will be released shortly.

On June 12, 2009, AMI Australia obtained an interlocutory injunction from the Supreme Court of New South Wales preventing Fairfax Media Publications Limited (“Fairfax”) from publishing information which AMI Australia alleges was disclosed to Fairfax in breach of a duty of confidence owed to AMI Australia. Final hearing of this matter commenced on October 26, 2009 but was unable to be concluded by October 28, 2009, the final scheduled date for the hearing of the matter. Final hearing of the matter is now scheduled for February 24 and 25, 2010 and AMI Australia’s interlocutory injunction has been extended until that date.

10.	LEASE COMMITMENTS

The Company is party to long-term, non-cancellable operating leases for its administrative offices and clinic locations. The future aggregate minimum annual lease payments arising from these leases are as follows:

	September 30

Due during the period ended,

2010	$	539,699
2011		463,806
2012		365,869
2013		315,523
2014		295,519
2015		295,519
2016		73,880

	$	2,349,815

Rent paid for the three month periods ended September 30, 2009 and 2008 were $353,037 and $389,178, respectively.

11.	DISCONTINUED OPERATION

AMI Japan Kabushiki Gaisya

AMI Japan Kabushiki Gaisya (“AMI Japan”) was an indirect 75% owned subsidiary of the Company. AMI Japan had formed an alliance with a Japanese party with expertise in marketing in the Japanese market and two financial investors. AMI Japan commenced operations on October 1, 2006.

On or about February 4, 2008, the operation of AMI Japan was wound down and discontinued due to unsatisfactory operating results.

Loss from the discontinued operation of AMI Japan during the period ended September 30, 2009 was $13,042.

The capital contributed to AMI Japan of $217,897 has been classified as assets pending sale on the accompanying consolidated balance sheet as of September 30, 2009.

Following is the summary of net assets held as of September 30 and June 30, 2009:

	September 30		June 30
Assets
Cash and cash equivalents	$	853	$	1,704
Other current assets		89,196		84,005
Property, Plant & Equipment, net		130,449		126,552
Intangible assets		2,547		3,837
Total Assets		223,045		216,098
Liabilities
Accounts payable and accrued expense		5,148		4,078

Total Liabilities		5,148		4,078

Net Assets Held for disposal	$	217,897	$	212,020

The components of loss from operations related to the entity held for disposal for the periods ended September 30, 2009 and 2008 are shown below.

	September 30, 2009			September 30, 2008
Net sales	$	37,673		$	1,503

Operating expenses
Selling, general and administrative		50,715			49,232
Total operating expenses		50,715			49,232

Loss from operations		(13,042	)		(47,729	)

Non-operating income (expenses)
Other income		-			2
Interest income		-			21

Net Loss before income tax		(13,042	)		(47,686	)

Provision for income tax		-			-

Net loss from entity held for disposal	$	(13,042	)	$	(47,686	)

AMI China

AMI China was a fully owned subsidiary of the Company.

During the second half of the last financial year, the operation of AMI China was wound down and discontinued due to unsatisfactory operating results.

Loss from the discontinued operation of AMI China during the period ended September 30, 2009 was US$10,292.

The capital contributed to AMI Japan of US$78,474 has been classified as assets pending sale on the accompanying consolidated balance sheet as of September 30, 2009.

Following is the summary of net assets held as of September 30 and June 30, 2009:

	September 30		June 30
Assets
Cash and cash equivalents	$	13,137	$	13,121
Other current assets		44,108		39,532
Property, Plant & Equipment, net		21,252		21,226
Total Assets		78,497		73,879
Liabilities
Accounts payable and accrued expense		23		22

Total Liabilities		23		22

Net Assets Held for disposal	$	78,474	$	73,857

The components of loss from operations related to the entity held for disposal for the periods ended September 30, 2009 and 2008 are shown below.

	2009			2008
Net sales	$	-		$	4,854

Operating expenses
Selling, general and administrative		10,292			(52,169	)
Total operating expenses		10,292			(52,169	)

Net loss before income tax		(10,292	)		(47,315	)

Provision for Income tax		-			-

Net loss from entity held for disposal	$	(10,292	)	$	(47,315	)

12.	RELATED PARTY TRANSACTIONS

	September 30, 2009		June 30, 2009

Related party transactions comprised of the following:

Prostate Health Clinic Pty. Ltd. (an AU co.)
Relationship: Under common management control by Jack Vaisman
Receivable from this related party		1,865		1,719

Loan to affiliate in Indonesia		378,812		426,806

Receivable due from related parties - current	$	380,677	$	428,525

Peter Riley
Relationship: Director of AMI UK
Payable to this related party		70,845		73,513

Jacov Vaisman
Relationship: Director of AMI Inc.
Payable to this related party		1,440		173,032

Tony Khan
Relationship: Executive Vice President of AMI Inc.
Payable to this related party		34,916		32,192


Payable due to related parties - current	$	107,201	$	278,737

Secare Health Centre Pty Limited
Relationship: Under common management control by Jack Vaisman
Payable to this related party – non current	$	4,827,936	$	3,803,131

Total receivables due from related parties included in the Company’s balance sheets were $380,677 and $428,525, as of September 30, 2009 and June 30, 2009, respectively.

Total payables due to related parties included in the Company’s balance sheets were $4,935,137 as of September 30, 2009 and $4,081,868 as of June 30, 2009.

Receivables from related parties are unsecured, interest-free, and due on demand.

Payables to related parties are as follows:

The Company originally borrowed A$1.0 million from Secare Health Centre Pty Limited (“Secare”) in November 2008. Secare is controlled by the company’s chief executive officer and founder, Jack Vaisman. The Company subsequently borrowed a further A$4,281,489 from Secare. The loan is secured by a second ranking security interest in all of AMI Australia’s assets and undertakings (including its existing equity interests in PE Patent Holdco Pty Limited, Intelligent Medical Technologies Pty Limited and Advanced Medical Institute (NZ) Limited). The loan attracts an interest cost of 10% per annum. No repayment of this loan has been made up to September 30, 2009. The loan is due for repayment in December 2011.

13.	INCOME TAXES

Total income tax expense for the three months ended September 30, 2009 and 2008 amounted to $449,333 and $373,847, respectively. For the three month periods ended September 30, 2009 and 2008 there is a difference of 1% between the Australian federal statutory tax rate and the effective tax rate. This difference is due to the domicile of operating profits and losses in the Group as well as the impact of timing and past operating profits (losses) on these matters.

September 30, 2009	U.S.		State		International			Total
Current	$	-	$	-	$	548,690		$	548,690
Deferred	$	-	$	-	$	(99,357	)	$	(99,357	)
Total	$	-	$	-	$	449,333		$	449,333

September 30, 2008	U.S.		State		International		Total
Current	$	-	$	-	$	146,548	$	146,548
Deferred	$	-	$	-	$	227,299	$	227,299
Total	$	-	$	-	$	373,847	$	373,847

Reconciliation of the differences between the statutory U.S. Federal income tax rate and the effective rate is as follows:

	September 30, 2009			September 30, 2008

Federal statutory tax rate		34	%		34	%
Decrease in rate resulting from:
Non US income taxed at different rates		(1	)%		(1	)%
		33	%		33	%
Temporary Difference		2	%		44	%
Effective Tax Rate		35	%		77	%

Deferred tax liability arises due to the following temporary differences:

	September 30, 2009			Future tax rate %		Deferred tax liability			June 30, 2009			Future tax rate %		Deferred tax liability
Owing by patients via ACFC	$	(34,413,617	)	30	%	$	(10,324,085	)	$	(28,861,821	)	30	%	$	(8,658,546	)
Provision DDR cancellation		18,634,670		30	%		5,590,401			16,788,933		30	%		5,036,680
Provision un-dispensed DDR medications		1,585,187		30	%		475,556			1,259,512		30	%		377,854
Accrued ACFC collection and commission		3,362,410		30	%		1,008,723			2,755,635		30	%		826,691
Provision for patient refund		139,663		30	%		41,899			120,720		30	%		36,216
Unutilized tax losses		6,764,857		30	%		2,029,457			5,663,851		30	%		1,699,155
Amortization of patents		(2,416,213	)	30	%		(724,864	)		(2,083,987	)	30	%		(625,196	)
Impairment loss		6,160,770		30	%		1,848,231			5,680,134		30	%		1,704,040
Other miscellaneous		1,063,871		30	%		319,161			937,806		30	%		281,354
Total	$	881,598		30	%	$	264,479		$	2,260,783		30	%	$	678,248

14.	OTHER COMPREHENSIVE INCOME (LOSS)

Balances of related after-tax components comprising accumulated other comprehensive income (loss), included in stockholders’ equity, at September 30, 2009 and June 30, 2009 are as follows:

	Accumulated Other Comprehensive Income
Balance at June 30, 2008	$	6,972,500
Change for year ended June 30, 2009		(6,018,555	)
Balance at June 30, 2009		953,945
Change for three months ended September 30, 2009		1,179,276
Balance at September 30, 2009	$	2,133,221

The change for the three months ended September 30, 2009 is primarily attributable to the appreciation in the Australian dollar against the US dollar from the closing rate of A$:US$ 1:0.80480 for the year ended June 30, 2009 to A$:US$ 1:0.87290 for the three-month period ended September 30, 2009.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

THE FOLLOWING DISCUSSION SHOULD BE READ IN CONJUNCTION WITH THE INFORMATION CONTAINED IN THE FINANCIAL STATEMENTS OF THE COMPANY AND THE NOTES THERETO APPEARING ELSEWHERE HEREIN AND IN CONJUNCTION WITH THE MANAGEMENT’S DISCUSSION AND ANALYSIS SET FORTH IN THE COMPANY’S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED JUNE 30, 2009.

Preliminary Note Regarding Forward-Looking Statements

The statements contained in this Form 10-Q that are not purely historical are 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. These include statements about the Company’s expectations, beliefs, intentions or strategies for the future, which are indicated by words or phrases such as “anticipate,” “expect,” “intend,” “plan,” “will,” “the Company believes,” “management believes” and similar words or phrases. The forward-looking statements are based on the Company’s current expectations and are subject to certain risks, uncertainties and assumptions. The Company’s actual results could differ materially from results anticipated in these forward-looking statements. All forward-looking statements included in this document 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.

Overview

We were originally incorporated under the name of Hawksdale Financial Visions, Inc. on December 6, 1996 under the laws of the State of Nevada. We were involved in the business of timeshares, but became dormant on March 31, 1997, and until January 28, 2005, we were a “blank check” company with nominal assets. On October 15, 2004, we changed our name to “Advanced Medical Institute Inc.” On March 21, 2005, we completed a Share Exchange Agreement with Advanced Medical Institute Pty Limited, a privately owned Australian company (“AMI Australia”), whereby AMI Australia became our wholly-owned subsidiary. On November 17, 2005, we entered into a Share Exchange Agreement with PE Patent Holdco Pty Limited, a privately owned Australian company (“PE Patent Holdco”), whereby PE Patent Holdco became our wholly-owned subsidiary. On September 8, 2006, we entered into a Share Exchange Agreement with Worldwide PE Patent Holdco Pty Limited (ACN 117 157 727), a privately owned Australian company (“Worldwide PE”), whereby Worldwide PE became our wholly-owned subsidiary.

Business Overview

For the year ended June 30, 2009, AMI’s revenues were approximately $53.4 million.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Our discussion and analysis of financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related to accounts receivable reserves, provisions for impairment losses of affiliated companies and other intangible assets, income taxes and contingencies. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

We believe the following critical accounting policies reflect our more significant estimates and assumptions used in the preparation of our consolidated financial statements:

REVENUE RECOGNITION Sales are reported as deferred income when the sales contracts are executed and the term of the contract exceeds three months. Up to three months medication is delivered to the patient upon the signing of a contract. Generally the terms of the sales contracts are up to one year, but they can be for longer periods of time. The deferred income arising from the contracts that exceed three months is then amortized, on a straight-line basis, into income during the approximated composite remaining medication delivery period. This approximated composite is an estimate that may vary from period to period.

ALLOWANCE FOR DOUBTFUL ACCOUNTS We evaluate the collectibility of our trade receivables based on a combination of factors. We regularly analyze our significant customer accounts, and, when we become aware of a specific customer’s inability to meet its financial obligations to us, such as in the case of bankruptcy filings or deterioration in the customer’s ability to pay for our services, we record a specific reserve for bad debt to reduce the related receivable to the amount we reasonably believe is collectible. The allowances are calculated based on detailed review of certain individual customer accounts, historical rates and an estimation of the overall economic conditions affecting our customer base. We review a customer’s credit history with the Company before extending credit. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required.

INCOME TAXES Income taxes have been provided based upon the tax laws and rates in the countries in which operations are conducted and income is earned. The income tax rates imposed by the taxing authorities vary. Taxable income may vary from pre-tax income for financial accounting purposes. There is no expected relationship between the provision for income taxes and income before income taxes because the countries have different taxation rules, which vary not only as to nominal rates, but also in terms of available deductions, credits and other benefits. Deferred tax assets and liabilities are recognized for the anticipated future tax effects of temporary differences between the financial statement basis and the tax basis of the Company’s assets and liabilities using the applicable tax rates in effect at year end as prescribed by SFAS 109 (ASC 740) “Accounting for Income Taxes.”

CONTINGENCIES We may be subject to certain asserted and unasserted claims encountered in the normal course of business. It is our belief that the resolution of these matters will not have a material adverse effect on our financial position or results of operations; however, we cannot provide assurance that damages that result in a material adverse effect on our financial position or results of operations will not be imposed in these matters. We account for contingent liabilities when it is probable that future expenditures will be made, and such expenditures can be reasonably estimated.

LONG-LIVED ASSETS Effective January 1, 2002, the Company adopted Statement of Financial Accounting Standards No. 144 (ASC 360), “Accounting for the Impairment or Disposal of Long-Lived Assets” (“SFAS 144”), which addresses financial accounting and reporting for the impairment or disposal of long-lived assets and supersedes SFAS No. 121, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of,” and the accounting and reporting provisions of APB Opinion No. 30, “Reporting the Results of Operations for a Disposal of a Segment of a Business.” The Company periodically evaluates the carrying value of long-lived assets to be held and used in accordance with SFAS 144 (ASC 360). SFAS 144 (ASC 360) requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost of disposal.

CURRENCY CONVERSION As of September 30, 2009 and 2008, the accounts of AMI Australia were maintained, and its financial statements were expressed, in Australian Dollars (A$). Such financial statements were translated into US Dollars ($) in accordance with Statement of Financial Accounts Standards (“SFAS”) No. 52, “Foreign Currency Translation”, with the Australian Dollar as the functional currency. In accordance with the Statement, all assets and liabilities were translated at the exchange rate (A$1 = US$0.87290) as of September 30, 2009, stockholder’s equity are translated at the historical rates and income statement items are translated at the weighted-average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with SFAS No. 130, “Reporting Comprehensive Income”.

The following table sets forth, for the periods indicated, certain operating information expressed as a percentage of revenue:

Results of operations:

	Three Months ended September 31,			Three Months ended September 31,
	2009			2008
Revenue		100	%		100	%
Cost of revenue		22.7	%		22.5	%
Gross profit		77.3	%		77.5	%
Selling, general and administrative expenses		67.4	%		73.7	%
Other income and expenses		(1.0	)%		(0.1	)%
Discontinued operations		(0.2	)%		(0.6	)%
Income before income tax		8.7	%		3.1	%
Income tax expenses		3.1	%		2.4	%
Net income		5.6	%		0.7	%

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2009, we had total liabilities of $31,975,767, including unearned revenue of $7,983,157, and we had a positive net worth of $20,106,443. As of June 30, 2009, we had total liabilities of $29,668,233, including unearned revenue of $8,003,468, and we had a positive net worth of $18,110,615. The predominant reason for the significant increase in the net worth of the Company between June 30, 2009 and September 30, 2009 is due to a significant appreciation in the A$ exchange rate as compared to the US$ exchange rate.

Our aggregate cash balances as at September 30, 2009 were $344,270, our inventory was $897,671, and our net receivables were approximately $27.6 million. These receivables are due on average within 90-180 days. We forecast that we will be able to generate sufficient funds from our business in order to fund our operations in the ordinary course during the next 12 months. This forecast is based on the significant positive cash flow from operating activities generated by the Company over the past 3 months.

In the event that we continue to expand our business, we may need to raise debt or equity funding in order to undertake such expansion. However, there can be no assurance that we can or will obtain sufficient funds from operations or from additional financings on terms acceptable to us. If we are unable to obtain sufficient additional financing, we may not be able to expand our operations as considered or we could be required to reduce spending and operations.

The Company borrowed A$3 million from ANZ Nominees Limited in its capacity as custodian of the Professional Pensions PST in September 2006. The outstanding balance of this loan was fully repaid in December 2008 using funds from the St George facility discussed below.

The Company borrowed A$2.4 million from St George Bank Limited in December 2008 comprising a A$1.9 million term facility and a A$500,000 overdraft facility. The loan is secured by a first ranking security interest in all of AMI Australia’s assets and undertakings (including its existing equity interests in PE Patent Holdco Pty Limited, Intelligent Medical Technologies Pty Limited and Advanced Medical Institute (NZ) Limited). The term facility is a commercial bill acceptance/discount facility whereby the Company regularly discounts bills with the bank at the prevailing interest rate plus a margin of 1.65%. The average all-up cost of this facility during the period was 5.26%. On each rollover the interest rate is reset. The loan is due for repayment in December 2011, however the Company is required to make principal repayments of A$50,000 per month during each month of the term. As at September 30, 2009, the total outstanding under the facility was A$1,774,967.

The Company borrowed a further A$1 million from Secare Health Centre Pty Limited (“Secare”) in December 2008. Secare is controlled by the company’s chief executive officer and founder, Jack Vaisman and the Company has subsequently borrowed a further A$4,281,489 from Secare. The loan is secured by a second ranking security interest in all of AMI Australia’s assets and undertakings (including its existing equity interests in PE Patent Holdco Pty Limited, Intelligent Medical Technologies Pty Limited and Advanced Medical Institute (NZ) Limited). The loan attracts an interest cost of 10% per annum. No repayment of this loan has been made up to September 30, 2009. The loan is due for repayment in December 2011.

The loans referred to above were provided to repay the ANZ facility, to fund expansion into the United Kingdom and to meet operational expenses.

RESULTS OF OPERATIONS

THREE MONTHS ENDED SEPTEMBER 30, 2009 COMPARED TO THREE MONTHS ENDED SEPTEMBER 30, 2008

Revenue. Revenue was $14,507,711 in the three months ended September 30, 2009, compared to $15,944,448 in the three months ended September 30, 2008, a decrease of $1,436,737, or 9%. The decrease in the three-month period ended September 30, 2009 is primarily attributable to the depreciation in the Australian dollar against the US dollar from the rate of A$:US$ 1:0.89174 for the three-month period ended September 30, 2008 to A$:US$ 1:0.83244 for the three-month period ended September 30, 2009. Revenue in Australian dollars was A$17,427,936 in the three months ended March 31, 2009 compared to A$17,880,153 in the three months ended September 30, 2008, an decrease of A$452,217 or 2.5%. We attribute this decrease primarily to the decrease in the number of patients purchasing our programs which is due to difficult economic conditions and a reduction in the advertising and promotion of our programs in Australia during the relevant period.

Our unearned revenue as at September 30, 2009 was $7,983,157 compared to $6,476,016 as at September 30, 2008. The gross increase in unearned revenue from the three months ended September 30, 2008 to the three months ended September 30, 2009 was $1,507,141, or an increase of 23.2%. The increase in unearned revenue in the three-month period is primarily attributed to the increase in weighted average program length of treatment programs during the quarter ended September 30, 2009.

Revenue in our PE treatments has increased by $2,619,643 or 34.9% to $10,119,678, and revenue in our ED treatments decreased by $3,501,986 or 44.7% to $4,327,937, in the three months ended September 30, 2009, compared to the three months ended September 30, 2008. We attribute the increase in revenue in our PE treatments to the increase in the number of sales per patient along with the higher sales price of the treatment programs sold. Revenue in our prostate treatments has decreased by $409,296 or 79.8%, to $103,460, in the three months ended September 30, 2009, compared to the three months ended September 30, 2008. We attribute the decrease in revenue in our prostate treatments to decreases in the number of patients. We attribute the decrease in revenue in our ED treatments to the decrease in the number of patients as well as the depreciation in Australian dollar against the US dollar.

Revenue in our Australian operations was $11,675,252 in the three months ended September 30, 2009, compared to $15,407,506 in the three months ended September 30, 2008. Compared to the same period in the previous year, there is a decrease of $3,732,254, or 24.2%, in the three months ended September 30, 2009. The decrease in the three-month period ended September 30, 2009 is primarily attributable to the decrease in the number of patients purchasing our programs which is due to difficult economic condition and a reduction in the advertising and promotion of our programs in Australia during the relevant period.

Revenue in our UK operations was $2,627,632 in the three months ended September 30, 2009, compared to $149,412 in the three months ended September 30, 2008. The Company’s UK operation started its business activities in September 2008.

Cost of Revenue. Cost of revenue was $3,291,231 in the three months ended September 30, 2009, compared to $3,591,200 in the three months ended September 30, 2008. The increase in cost of revenue was attributable to an increase in the medication cost incurred by AMI Australia and AMI’s UK operation. As a percentage of revenue, cost of revenue was 22.7% in the three months ended September 30, 2009, compared to 22.5% in the three months ended September 30, 2008. The stable cost of revenue percentage in 2009 is primarily attributable to management’s efforts to address operation performance and control its costs.

Gross Profit. Gross profit was $11,126,480 in the three months ended September 30, 2009, compared to $12,353,248 in the 2008 comparable period. As a percentage of revenue, gross profit decreased to 77.3% in the quarter ended September 30, 2009 from 77.5% in the 2008 quarter. The stable gross profit percentage in 2009 is primarily attributable to management’s efforts to address operation performance and control its costs.

Gross profit in our UK operations was $1,967,813 in the three months ended September 30, 2009, compared to $15,035 in the three months ended September 30, 2008. The Company’s UK operation started its business activities in September 2008.

Selling, General and Administrative Expenses. Selling, general and administrative expenses were $9,774,975 in the three months ended September 30, 2009, compared to $11,753,265 in the three months ended September 30, 2008. As a percentage of revenue, selling, general and administrative expenses decreased to 67.4% in the three months ended September 30, 2009 from 73.7% in the three months ended September 30, 2008. The decrease in the three months ended September 30, 2009 is primarily attributable to management’s efforts to address operation performance which significantly reduced advertising expenses and staff costs.

Selling, general and administrator expenses in our UK operations was $2,144,635 in the three months ended September 30, 2009, compared to $524,021 in the three months ended September 30, 2008. The Company’s UK operation started its business activities in September 2008.

Other Income. Other income and expenses was ($152,286) in the three months ended September 30, 2009, compared to ($16,489) in the three months ended September 30, 2008. As a percentage of revenue, other income and expenses was (1.0%) in the three months ended September 30, 2009 and (0.1%) in the three months ended September 30, 2008. The 0.9% increase in the other income and expenses in 2009 is primarily attributable to the increase in interest expenses, following the increase in interest bearing borrowings.

Net Income Before Income Tax and Income Tax Expenses. Net income before income tax was $1,265,885 in the three months ended September 30, 2009, compared to $488,493 in the three months ended September 30, 2008. This increase was primarily attributable to the significant decrease in selling, general and administrative expenses as a percentage of revenue in the three months ended September 30, 2009 as well as the improvement in the UK operations for the relevant period.

Income tax expenses were $449,333 in the three months ended September 30, 2009 compared to $373,847 in the three months ended September 30, 2008. As a percentage of revenue, income tax expense increased to 3.1% in the three months ended September 30, 2009 from 2.4% in the three months ended September 30, 2008. This increase is attributable to the decrease in selling, general and administrative expenses.

Net Income. Net income was $816,552 in the three months ended September 30, 2009, compared to $114,646 in the three months ended September 30, 2008. This increase in the 2009 quarter compared to the 2008 quarter is attributable to the significant decrease in selling, general and administrative expenses as a percentage of revenue for the three-month period ended September 30, 2009 as well as the improvement in the UK operations for the relevant period.

Net income in our Australian operations was $1,030,471 in the three months ended September 30, 2009, compared to $876,185 in the three months ended September 30, 2008. The increase is primarily attributable to the decrease in selling, general and administrative expenses in the three months ended September 30, 2009.

Net loss in our UK operations was $176,824 in the three months ended September 30, 2009, compared to $508,986 in the three months ended September 30, 2008. The decrease is primarily attributable to the UK operations being in a loss making start up period during the period ending September 30, 2008 and the improvement in operating performance in the UK operation during the three months ended September 30, 2009.

The above discussions of results exclude those entities which have no or what management deems insignificant operations.

OFF-BALANCE SHEET ARRANGEMENTS

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide this information

ITEM 4T. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, the Company conducted an evaluation of the effectiveness, as of the end of the period covered by this report, of our disclosure controls and procedures, as such term is defined in Exchange Act Rule 13a-15(e). Based on this evaluation, our principal executive officer and principal financial officer have concluded that, as of such date, the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in internal controls over financial reporting

Not applicable.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

Please see Note 8 to our financial statements above.

ITEM 1A. RISK FACTORS

There have been no material changes in our business, operations or prospects that would require a change to the Risk Factor disclosure included in our most recent Annual Report on Form 10-K for the year ended June 30, 2009 that have not already been disclosed.

ITEM 6. EXHIBITS.

The following exhibits are filed as part of this report:

Exhibit Number		Description

31.1		Certification of Chief Executive Officer pursuant to Rule 13A-14(A)/15D-14(A) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of the Chief Financial Officer pursuant to Rule 13A-14(A)/15D-14(A) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1		Certification of Chief Executive Officer and the Chief Financial Officer Pursuant to 18 U.S.C. 1350 (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.

Date: November 23, 2009	By:	/s/ Jacov (Jack) Vaisman
		Jacov (Jack) Vaisman
		Chief Executive Officer

Exhibit Index

Exhibit Number		Description

31.1		Certification of Chief Executive Officer pursuant to Rule 13A-14(A)/15D-14(A) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of the Chief Financial Officer pursuant to Rule 13A-14(A)/15D-14(A) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1		Certification of Chief Executive Officer and the Chief Financial Officer Pursuant to 18 U.S.C. 1350 (Section 906 of the Sarbanes-Oxley Act of 2002).

ADVANCED MEDICAL INSTITUTE INC. 10-Q