UNITED STATES

| ý | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                  |
|--------|-------------------------------------------------------------------------------|
|   | SECURITIES      EXCHANGE ACT OF 1934                                          |
|   |                                                                          |
|   | For      the quarterly period ended March 31, 2008                            |
|   |                                                                          |
|   | OR                                                                            |
|   |                                                                          |
| o      | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                 |
|   | SECURITIES      EXCHANGE ACT OF 1934                                          |
|   |                                                                          |
|   | For      the transition period from ________________ to      ________________ |

| Delaware                                      |   | 13-2698053               |
|-----------------------------------------------|--------|--------------------------|
| (State      or Other Jurisdiction of          |   | (IRS      Employer       |
| Incorporation      or Organization)           |   | Identification      No.) |
|                                          |   |                     |
| 55      Lane Road, Fairfield, New Jersey      |   | 07004                    |
| (Address      of Principal Executive Offices) |   | (Zip      Code)          |

| Large accelerated      filer [   ]                                              | Accelerated filer      [   ]  |
|----------------------------------------------------------------------------------------------------------|---------------------------------------------------|
| Non-accelerated      filer [   ] (Do not check if a smaller reporting      company)  | Smaller reporting      company [X]           |

| Class                                       |   | Outstanding      at May 1, 2008 |
|---------------------------------------------|--------|---------------------------------|
| Common      Stock, $.01 par value per share |   | 23,462,336      shares          |

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| PART      I:     | FINANCIAL      INFORMATION                                                    |     |
|--------------------------------------|------------------------------------------------------------------------------------|----------|
|                                 |                                                                               |     |
| Item 1.                         | Financial      Statements                                                     |     |
|                                 |                                                                               |     |
|                                 | Consolidated Balance      Sheets as of March 31, 2008 (Unaudited)             |     |
|                                 | and December 31,      2007 (Audited)                                          | 3        |
|                                 |                                                                               |     |
|                                 | Consolidated      Statements of Operations for the three                      |     |
|                                 | months ended      March 31, 2008 and 2007 (Unaudited)     | 5   |
|                                 |                                                                               |     |
|                                 | Consolidated      Statements of Cash Flows for the three                      |     |
|                                 | months ended      March 31, 2008 and 2007 (Unaudited)                    | 6   |
|                                 |                                                                               |     |
|                                 | Notes to      Consolidated Financial Statements (Unaudited)              | 7        |
|                                 |                                                                               |     |
| Item      2.                    | Management’s      Discussion and Analysis of Financial                  |     |
|                                 | Condition      and Results of Operations                                      | 11       |
|                                 |                                                                               |     |
| Item      3.                    | Qualitative      and Quantitative Disclosures                                 |     |
|                                 | About      Market Risk                                                        | 17  |
|                                 |                                                                               |     |
| Item      4.                    | Controls      and Procedures                                                  | 18  |
|                                 |                                                                               |     |
| PART      II:                   | OTHER      INFORMATION                                                        |     |
|                                 |                                                                               |     |
| Item      1A.                   | Risk      Factors                                                        | 19  |
|                                 |                                                                               |     |
| Item      6.                    | Exhibits                                                                      | 19  |
|                                 |                                                                               |     |
| SIGNATURES                 | 21                                                                            |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | March 31,2008 |      |   | December      31,2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-----------|--------|-----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | (Unaudited)        |      |   | (Audited)             |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |               |      |   |                  |   |
| Current      Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               |      |   |                  |   |
| Cash      and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                  | 1,039,313 |   |                  | $      | 10,914 |   |
| Accounts      Receivable (Less Allowance for Doubtful Accountsof      $25,000 in 2008 and 2007)                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |               | 2,767,765 |   |                  |   | 3,672,421 |   |
| Prepaid      Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               | 406,507   |   |                  |   | 293,396 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               |      |   |                  |   |   |   |
| Total      Current Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |               | 4,213,585 |   |                  |   | 3,976,731 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               |      |   |                  |   |   |   |
| Property      and Equipment – At Cost:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               |      |   |                  |   |   |   |
| Furniture,      Fixtures and Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |               | 464,207   |   |                  |   | 466,622 |   |
| Less:  Accumulated      Depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               | (241,811  | )      |                  |   | (297,074 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               |      |   |                  |   |   |   |
| Property      and Equipment – Net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |               | 222,396   |   |                  |   | 169,548 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               |      |   |                  |   |   |   |
| Capitalized      Software (Less Accumulated Amortization of$10,403,482      and $10,180,752 respectively)                                                                                                                                                                                                                                                                                                                                                                                                                           |   |               | 1,545,593 |   |                  |   | 1,580,971 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               |      |   |                  |   |   |   |
| Deferred      Financing Costs (Net of Accumulated Amortization of$223,656      and $215,038, respectively)                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               | 17,655    |   |                  |   | 26,273 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               |      |   |                  |   |   |   |
| Other      Assets                                                                                    |   |               | 110,151   |   |                  |   | 110,151 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               |      |   |                  |   |   |   |
| Total      Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $                  | 6,109,380 |   |                  | $      | 5,863,674 |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | March 31,2008 |        |   | December      31, 2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-------------|--------|------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | (Unaudited)        |        |   | (Audited)              |   |
| Liabilities and Stockholders’      Equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               |        |   |                   |   |
| Current      Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |               |        |   |                   |   |
|    Accounts      Payable                                                                                                                    |   | $                  | 293,774     |   |                   | $      | 579,446 |   |
|    Accrued      Liabilities                                                                                                                 |   |               | 653,091     |   |                   |   | 1,080,136 |   |
|    Deferred      Charges                                                                                                                    |   |               | 22,503      |   |                   |   | 22,503 |   |
|    Convertible      Debentures                                                                                                              |   |               | 196,699     |   |                   |   | 196,699 |   |
|    Convertible      Debenture – Related      Party                                                                                    |   |               | 65,566      |   |                   |   | 65,566 |   |
|    Unearned      Revenue                                                                                                                    |   |               | 1,576,962   |   |                   |   | 1,487,545 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               |        |   |                   |   |   |   |
|    Total      Current      Liabilities                                                                                                      |   |               | 2,808,595   |   |                   |   | 3,431,895 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               |        |   |                   |   |   |   |
| Long-Term      Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               |        |   |                   |   |   |   |
|    Deferred      Charges                                                                                                                    |   |               | 140,721     |   |                   |   | 146,347 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               |        |   |                   |   |   |   |
|    Total      Long-Term      Liabilities                                                                                                    |   |               | 140,721     |   |                   |   | 146,347 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               |        |   |                   |   |   |   |
|    Total      Liabilities                                                                                                                   |   |               | 2,949,316   |   |                   |   | 3,578,242 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               |        |   |                   |   |   |   |
| Commitments      and      Contingencies                                                                                                                                   |   |               | —     |   |                   |   | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               |        |   |                   |   |   |   |
| Stockholders’      Equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |               |        |   |                   |   |   |   |
| Common      Stock, $.01 Par Value, Authorized 75,000,000 Shares;23,457,336      and 23,192,302 Shares Issued and 23,457,336and      23,192,302 Shares Outstanding, Respectively                                                                                                                                                                                                                                                                                                                                                                                                           |   |               | 234,573     |   |                   |   | 231,923 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               |        |   |                   |   |   |   |
| Capital      In Excess Of Par      Value                                                                                                                                                                     |   |               | 28,365,683  |   |                   |   | 28,073,659 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               |        |   |                   |   |   |   |
| Accumulated      Deficit                                                                                                                                                                                               |   |               | (25,440,192 | )      |                   |   | (26,020,150 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               |        |   |                   |   |   |   |
| Total      Stockholders’      Equity                                                                                                                                                         |   |               | 3,160,064   |   |                   |   | 2,285,432 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               |        |   |                   |   |   |   |
| Total      Liabilities and Stockholders’      Equity                                                                                                                                                                  |   | $                  | 6,109,380   |   |                   | $      | 5,863,674 |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Three      months ended March 31, |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2008                              |       |   | 2007 |   |
| Revenues:                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                              |       |   |   |   |
| Licenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                                 | 698,500    |   |   | $ | 203,465 |   |
| Maintenance                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                              | 988,843    |   |   |   | 826,074 |   |
| Professional    Services                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              | 855,430    |   |   |   | 517,308 |   |
| Applications Service Provider      (“ASP”) Services                                                                                                                                                                                                                                                                                                                                                                                                               |   |                              | 453,635    |   |   |   | 384,618 |   |
| Total Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                              | 2,996,408  |   |   |   | 1,931,465 |   |
| Cost      of Revenues:                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              |       |   |   |   |   |   |
| Licenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              | 278,495    |   |   |   | 215,214 |   |
| Maintenance                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                              | 454,585    |   |   |   | 726,487 |   |
| Professional    Services                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              | 381,742    |   |   |   | 239,917 |   |
| ASP Services                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                              | 308,176    |   |   |   | 94,592 |   |
| Total Cost of      Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                              | 1,422,998  |   |   |   | 1,276,210 |   |
| Direct Margin                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              | 1,573,410  |   |   |   | 655,255 |   |
| Operating      Expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              |       |   |   |   |   |   |
| Sales and    Marketing                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              | 234,327    |   |   |   | 110,196 |   |
| General and      Administrative                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                              | 555,849    |   |   |   | 277,703 |   |
| Research and      Development                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              | 215,628    |   |   |   | 90,713 |   |
| Total Operating      Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              | 1,005,804  |   |   |   | 478,612 |   |
| Operating Income                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                              | 567,606    |   |   |   | 176,643 |   |
| Other      Income (Expense):                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                              |       |   |   |   |   |   |
| Interest Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                              | (4,532     | ) |   |   | (35,641 | ) |
| Interest Expense – Related      Party                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                              | (1,308     | ) |   |   | (1,459 | ) |
| Interest Income                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                              | 2          |   |   |   | 2 |   |
| Other Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                              | 18,190     |   |   |   | — |   |
| Total Other Income      (Expense)                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                              | 12,352     |   |   |   | (37,098 | ) |
| Income Before Income      Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                              | 579,958    |   |   |   | 139,545 |   |
| Income      Taxes                                                                           |   |                              | —    |   |   |   | — |   |
| Net      Income                                                                             |   | $                                 | 579,958    |   |   | $ | 139,545 |   |
| Basic      Earnings Per Common Share                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $                                 | 0.02       |   |   | $ | 0.01 |   |
| Diluted      Earnings Per Common Share                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                 | 0.02       |   |   | $ | 0.01 |   |
| Weighted Average Number of      CommonSharesOutstanding      for Basic EarningsPer      Common Share                                                                                                                                                                                                                                                                                                                                                                          |   |                              | 23,362,000 |   |   |   | 17,873,000 |   |
| Weighted Average Number of      CommonSharesOutstanding      for Diluted EarningsPer      Common Share                                                                                                                                                                                                                                                                                                                                                                        |   |                              | 24,873,000 |   |   |   | 19,431,000 |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Three      months ended March 31, |      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2008                                   |      |   | 2007 |   |
| Cash      Flows from Operating Activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                   |      |   |   |   |
| Net      Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                                      | 579,958   |   |   | $ | 139,545 |   |
| Adjustments      to Reconcile Net Income to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                   |      |   |   |   |   |   |
| Net      Cash Provided From Operating Activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                   |      |   |   |   |   |   |
| Depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                   | 12,353    |   |   |   | 15,079 |   |
| Amortization      of Capitalized Software                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                   | 222,730   |   |   |   | 212,629 |   |
| Amortization      of Deferred Financing Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                   | 8,618     |   |   |   | 8,618 |   |
| Noncash      Stock-Based Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                   | 270,874   |   |   |   | — |   |
| Changes      in Assets and Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                   |      |   |   |   |   |   |
| (Increase)      Decrease in:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                   |      |   |   |   |   |   |
| Accounts      Receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                   | 904,656   |   |   |   | 238,746 |   |
| Prepaid      Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                   | (113,111  | ) |   |   | (25,631 | ) |
| Other      Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                   | —   |   |   |   | 125 |   |
| Increase      (Decrease) in:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                   |      |   |   |   |   |   |
| Accounts      Payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                   | (285,672  | ) |   |   | 33,668 |   |
| Accrued      Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                   | (427,045  | ) |   |   | (197,952 | ) |
| Deferred      Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                   | (5,626    | ) |   |   | 1,300 |   |
| Unearned      Revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                   | 89,417    |   |   |   | 165,828 |   |
| Net      Cash Provided From Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                   | 1,257,152 |   |   |   | 591,955 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                   |      |   |   |   |   |   |
| Cash      Flows from (Used For) Investing Activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                   |      |   |   |   |   |   |
| Capital      Expenditures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                   | (65,201   | ) |   |   | — |   |
| Capitalized      Software Expenditures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   | (187,352  | ) |   |   | (265,404 | ) |
| Net      Cash Provided From (Used For) Investing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                   | (252,553  | ) |   |   | (265,404 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                   |      |   |   |   |   |   |
| Cash      Flows from Financing Activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                   |      |   |   |   |   |   |
| Proceeds      from Exercise of Stock Options and Warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                   | 23,800    |   |   |   | 38,421 |   |
| Net      Cash Provided From Financing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                   | 23,800    |   |   |   | 38,421 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                   |      |   |   |   |   |   |
| Change      in Cash and Cash      Equivalents                                                                                                            |   |                                   | 1,028,399 |   |   |   | 364,972 |   |
| Cash      and Cash Equivalents – Beginning of      Period                                                                                          |   |                                   | 10,914    |   |   |   | 131,847 |   |
| Cash      and Cash Equivalents – End of      Period                                                                                                |   | $                                      | 1,039,313 |   |   | $ | 496,819 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                   |      |   |   |   |   |   |
| Supplemental      Disclosures of Cash Flow Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   |      |   |   |   |   |   |
| Cash      Paid During the Periods for:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   |      |   |   |   |   |   |
| Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                                      | 4,532     |   |   | $ | 35,641 |   |
| Interest – Related      Party                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                   | 1,308     |   |   |   | 1,459 |   |
| Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                   | —   |   |   |   | — |   |

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| 2008       |   | $      | 262,265 |   |
|------------|--------|--------|---------|--------|
| Thereafter |   |   | — |   |
| Total      |   | $      | 262,265 |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | For      the three months endedMarch 31,      2008 |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Income(Numerator)                                       |    |   | Shares(Denominator) |   |   | Per      ShareAmount |   |
| Basic      EPS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                    |    |   |   |   |   |   |   |
|  Income      Available to Common   Stockholders                                                                             |   | $                                                       | 579,958 |   |   |   | 23,361,759 |   |   | $ | 0.02 |   |
| Interest      Reversal Convertible Debentures  (Net      of      Tax)                                                                 |   |                                                    | 3,147   |   |   |   | — |   |   |   | — |   |
| Effect      of Dilutive Securities:                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                    |    |   |   |   |   |   |   |   |   |   |
|   Exercise      of      Options                                                                                                       |   |                                                    | — |   |   |   | 554,054 |   |   |   | — |   |
|   Exercise      of      Warrants                                                                                                      |   |                                                    | — |   |   |   | 83,141 |   |   |   | — |   |
|   Conversion      of Convertible Debentures                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                    | — |   |   |   | 874,217 |   |   |   | — |   |
| Diluted      EPS:                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                    |    |   |   |   |   |   |   |   |   |   |
|        Income Available to Common Stockholders    Plus      Assumed      Conversions                                                                                                                                                                                              |   | $                                                       | 583,105 |   |   |   | 24,873,171 |   |   | $ | 0.02 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | For      the three months endedMarch 31,      2007 |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | Income(Numerator)                                       |    |   | Shares(Denominator) |   |   | Per      ShareAmount |   |
| Basic      EPS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                    |    |   |   |   |   |   |   |
|  Income      Available to Common   Stockholders                                                                                                                |   | $                                                       | 139,545 |   |   |   | 17,873,480 |   |   | $ | 0.01 |   |
| Interest      Reversal Convertible Debentures  (Net      of      Tax)                                                                                                    |   |                                                    | 3,551   |   |   |   | — |   |   |   | — |   |
| Effect      of Dilutive Securities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                    |    |   |   |   |   |   |   |   |   |   |
|   Exercise      of      Options                                                                                                                                          |   |                                                    | — |   |   |   | 492,889 |   |   |   | — |   |
|   Exercise      of      Warrants                                                                                                                                         |   |                                                    | — |   |   |   | 78,572 |   |   |   | — |   |
|   Conversion      of Convertible Debentures                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                    | — |   |   |   | 986,272 |   |   |   | — |   |
| Diluted      EPS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                    |    |   |   |   |   |   |   |   |   |   |
|   Income      Available to Common Stockholders    Plus      Assumed      Conversions                                                                 |   | $                                                       | 143,096 |   |   |   | 19,431,213 |   |   | $ | 0.01 |   |

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|                            |   | Shares |      |   | Exercise      PricePer      Share |   | Weighted-Average      Remaining Contractual Life |   | Weighted-Average      Exercise Price |   |
|---------------------------------|--------|--------|-----------|--------|-----------------------------------|--------|--------------------------------------------------|--------|--------------------------------------|--------|
| Balance,      December 31, 2007 |   |   | 2,533,000 |   |                              | $      | 0.34      – 2.00                           |   | 2.1      years                       |   | $ | 0.97 |   |
| Granted                         |   |   | —   |   |                              |   | —                                          |   |                                 |   |   | — |   |
| Exercised                       |   |   | (150,000  | )      |                              | $      | 0.34      – 0.60                           |   |                                 |   | $ | 0.48 |   |
| Canceled                        |   |   | —   |   |                              |   | —                                          |   |                                 |   |   | — |   |
| Expired                         |   |   | (758,000  | )      |                              | $      | 1.13      – 2.00                           |   |                                 |   | $ | 0.51 |   |
| Balance,      March 31, 2008    |   |   | 1,625,000 |   |                              | $      | 0.36      – 1.40                           |   | 2.9      years                       |   | $ | 0.80 |   |

|                  ●   | Level 1-Inputs are      unadjusted quoted prices in active markets for identical assets or      liabilities available at the measurementdate. |
|---------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|                  ●   | Level 2-Inputs are      unadjusted quoted prices for similar assets and liabilities in active      markets, quoted prices for identical or similar assets and liabilities in      markets that are not active, inputs other than quoted prices that are      observable and inputs derived from or corroborated by observable market      data. |
|---------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                  ●       | Level 3-Inputs are      unobservable inputs which reflect the reporting entity's own assumptions      on what assumptions the market participants would use in pricing the      assets or liabilities based on the best available    information. |
|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                            |   | Three      MonthsEnded      March 31, |
|-----------------------------------------------------------------|--------|--------------------------------------------|
|                                                            |   | 2008                                       |   |   | 2007 |
| Revenues:                                                       |   |                                       |   |   |   |
| License                                                         |   | 23.3                                       | % |   |   | 10.5 | % |
| Maintenance                                                     |   | 33.0                                       |   |   |   | 42.8 |   |
| Professional      Services                                      |   | 28.5                                       |   |   |   | 26.8 |   |
| Applications      Service Provider (“ASP”) Services |   | 15.2                                       |   |   |   | 19.9 |   |
| Total      Revenues                                             |   | 100.0                                      |   |   |   | 100.0 |   |
| Cost      of Revenues:                                          |   |                                       |   |   |   |   |   |
| License                                                         |   | 9.3                                        |   |   |   | 11.2 |   |
| Maintenance                                                     |   | 15.2                                       |   |   |   | 37.6 |   |
| Professional      Services                                      |   | 12.7                                       |   |   |   | 12.4 |   |
| ASP      Services                                               |   | 10.3                                       |   |   |   | 4.9 |   |
| Total      Cost of Revenues                                     |   | 47.5                                       |   |   |   | 66.1 |   |
| Direct      Margin                                              |   | 52.5                                       |   |   |   | 33.9 |   |
| Operating      Expenses:                                        |   |                                       |   |   |   |   |   |
| Sales      and Marketing                                        |   | 7.8                                        |   |   |   | 5.7 |   |
| General      and Administrative                                 |   | 18.6                                       |   |   |   | 14.4 |   |
| Research      and Development                                   |   | 7.2                                        |   |   |   | 4.7 |   |
| Total      Operating Expenses                                   |   | 33.6                                       |   |   |   | 24.8 |   |
| Operating      Income                                           |   | 18.9                                       |   |   |   | 9.1 |   |
| Other      Expense (Income):                                    |   |                                       |   |   |   |   |   |
| Interest      Expense                                           |   | 0.2                                        |   |   |   | 1.9 |   |
| Interest      Income                                            |   | —                                    |   |   |   | — |   |
| Other      Income                                               |   | (0.6                                       | ) |   |   | — |   |
| Total      Other Expense (Income)                               |   | (0.4                                       | ) |   |   | 1.9 |   |
| Income      Before Income Taxes                                 |   | 19.3                                       |   |   |   | 7.2 |   |
| Income      Taxes                                               |   | —                                    |   |   |   | — |   |
| Net      Income                                                 |   | 19.3                                       | % |   |   | 7.2 | % |

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| ·            | Our      ability to generate cash is subject to general economic, financial,      competitive and other factors beyond our  control. |
|--------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| ·            | Our      need to invest resources in product development in order to continue to      enhance our current product, develop new products, attract and retain      customers and keep pace with competitive product introductions and      technological developments. |
|--------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·            | We      experience intense competition in our industry and continuing      technological changes. |
|--------------------------------------------|---------------------------------------------------------------------------------------------------|

| ·            | Insurance      companies typically are slow in making decisions and have numerous      bureaucratic and institutional obstacles, which can make our efforts to      attain new customers difficult. |
|--------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·            | We      compete with a number of larger companies who have greater resources than      those of ours.  We compete on the basis of insurance knowledge,      products, services, price, technological advances and system functionality      and performance. |
|--------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·            | Our      operations continue to depend upon the continuing business of our existing      customers and our ability to attract new  customers. |
|--------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| ·            | A      decline in software spending in the insurance industry could result in a      decrease in our revenue. |
|--------------------------------------------|---------------------------------------------------------------------------------------------------------------|

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| ·      | Revenue      Recognition |
|--------------------------------------|--------------------------|

| ·           | Valuation      of Capitalized Software |
|--------------------------------------|----------------------------------------|

| ·           | Valuation      of Allowance for Doubtful AccountsReceivable |
|--------------------------------------|-------------------------------------------------------------|

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| Exhibit          |   |                                                                                                                                                                                                                                                                                                    |
|------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| No.              |   | Description                                                                                                                                                                                                                                                                                             |
| 3(a)             |   | Certificate      of Incorporation of the Registrant filed on April 22, 1985 [incorporated      by reference to Exhibit 3(a) to the Registrant’s Annual Report on Form      10-K (Commission File No. 0-13124) filed on January 29,    1986].                                                      |
|             |   |                                                                                                                                                                                                                                                                                                    |
| 3(b)             |   | Certificate      of Amendment of Certificate of Incorporation of the Registrant filed on      May 6, 1987 [incorporated by reference to Exhibit 3.2 to the      Registrant’s Registration Statement on Form S-1 (Commission File No.      33-17533) filed on September 29, 1987].            |
|             |   |                                                                                                                                                                                                                                                                                                    |
| 3(c)             |   | Certificate      of Amendment of Certificate of Incorporation of the Registrant filed on      March 26, 1990 [incorporated by reference to Exhibit 3(d) to the      Registrant’s Quarterly Report on Form 10-Q (Commission File No. 0-13124)      filed on June 14, 1990].                        |
|             |   |                                                                                                                                                                                                                                                                                                    |
| 3(d)             |   | Certificate      of Amendment of Certificate of Incorporation of the Registrant filed on      March 18, 1992 [incorporated by reference to Exhibit 1 to the Registrant’s      Current Report on Form 8-K (Commission File No. 0-13124) filed on March      30, 1992].                             |
|             |   |                                                                                                                                                                                                                                                                                                    |
| 3(e)             |   | Certificate      of Amendment of Certificate of Incorporation of the Registrant filed on      June 21, 1996 [incorporated by reference to Exhibit 3(e) to the      Registrant’s Amendment No. 1 to Registration Statement on Form S-3      (Commission File No. 0-13124) filed on July 10, 1996]. |
|             |   |                                                                                                                                                                                                                                                                                                    |
| 3(f)             |   | Certificate      of Amendment of Certificate of Incorporation of the Registrant filed on      July 12, 2000 [incorporated by reference to Exhibit 3(g) to the      Registrant’s Quarterly Report on Form 10-Q (Commission File No. 0-13124)      filed on August 11, 2000].                       |
|             |   |                                                                                                                                                                                                                                                                                                    |
| 3(g)             |   | Bylaws      of the Registrant, as amended [incorporated by reference to Exhibit 3(g)      to the Registrant’s Amendment No. 1 to Registration Statement on Form S-3      (Commission file No. 0-13124) filed on July 10, 1996].                                                                   |
|             |   |                                                                                                                                                                                                                                                                                                    |
| 4                |   | Form      of Common Stock Certificate of the Registrant [incorporated by reference      to Exhibit 4(a) to the Registrant’s Annual Report on Form 10-K (Commission      File No. 0-13124) filed on January 29, 1986].                                                                             |
|             |   |                                                                                                                                                                                                                                                                                                    |
| 10(c)(18)† |   | Cover-All      Technologies, Inc. Amended and Restated 2005 Stock Incentive Plan      [incorporated by reference to Exhibit 10(c)(18) to the Registrant’s Form      8-K (Commission File No. 0-13124) filed on March 27,  2008].                                                                  |
|             |   |                                                                                                                                                                                                                                                                                                    |
| 10(c)(19)† |   | Summary      of 2008 Non-Employee Director Compensation dated March 25, 2008      [incorporated by reference to Exhibit 99.1 the Registrant’s Form 8-K      (Commission File No. 0-13124) filed on March 27,  2008].                                                                              |

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| 10(e)(7)† |   | Employment      Agreement, dated December 26, 2007, by and between the Registrant and John      Roblin [incorporated by reference to Exhibit 10(e)(7) to the Registrant’s      Form 8-K (Commission File No. 0-13124) filed on December 27,      2007]. |
|-----------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|            |   |                                                                                                                                                                                                                                                          |
| 31.1*           |   | Chief      Executive Officer Certification pursuant to Section 13a-15(e) of the      Securities Exchange Act.                                                                                                                                            |
|            |   |                                                                                                                                                                                                                                                          |
| 31.2*           |   | Chief      Financial Officer Certification pursuant to Section 13a-15(e) of the      Securities Exchange Act.                                                                                                                                            |
|            |   |                                                                                                                                                                                                                                                          |
| 32.1*           |   | Certification      of John W. Roblin pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.                                                                                            |
|            |   |                                                                                                                                                                                                                                                          |
| 32.2*           |   | Certification      of Ann F. Massey pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.                                                                                             |

| *       | Filed      herewith.                                                        |
|---------|-----------------------------------------------------------------------------|
| † | Denotes      a management contract or      compensatory plan orarrangement. |

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|                        | COVER-ALL TECHNOLOGIES      INC. |                                                                                               |
|-----------------------------|----------------------------------|----------------------------------------------------------------------------------------------------|
|                        |                             |                                                                                               |   |
|                        |                             |                                                                                               |   |
| Date: May      9, 2008 | By:                              | /s/ John      W. Roblin                                                                       |   |
|                        |                             | John      W. Roblin, Chairman of the Board of Directors,President      and Chief Executive Officer |   |
|                        |                             |                                                                                          |   |
|                        |                             |                                                                                               |   |
|                        |                             |                                                                                               |   |
| Date: May      9, 2008 | By:                              | /s/      Ann F. Massey                                                                             |   |
|                        |                             | Ann      F. Massey, Chief Financial Officer                                                        |   |