**UNITED
        STATES**
 **SECURITIES
        AND EXCHANGE COMMISSION**
 **WASHINGTON,
        D.C. 20549**
 
  **FORM
        10-QSB**
    **Quarterly
        Report Pursuant to Section 13 or 15(d) of the**
 **Securities
        Exchange Act of 1934**
  **For
        the Quarterly Period Ended** **March
        31, 2007**
  **Commission
        File Number:** **0-21475**
 
 
 **EMERGENT
        GROUP INC.**
 (Exact
        name of registrant as specified in its charter)
 **Nevada**
              **93-1215401**(State
                  of jurisdiction of
                  Incorporation)
              (I.R.S.
                  Employer Identification No.)
 
 **10939
        Pendleton Street**
 **Sun
        Valley, CA 91352**
 (Address
        of principal executive offices)
 
 **(818)
        394-2800**
 (Registrant’s
        telephone number)
 
 **Not
        Applicable**
 (Former
        name, address and fiscal year, if changed since last report)
  **___________________________________**
 
 
 Indicate
        by check mark whether the registrant (1) has filed all reports required to
        be
        filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
        the
        preceding 12 months (or for such shorter period that the registrant was required
        to file such reports) and (2) has been subject to such filing requirements
        for
        the past 90 days.
 Yes
        [X]
        No [ ]
 
 Indicate
        by check mark whether the registrant is an accelerated filer (as defined
        in Rule
        12b-2 of the Exchange Act).
  Yes
        [ ]
        No [X]
 
 Indicate
        by check mark whether the registrant is a shell company (as defined in Rule
        12b-2 of the Exchange Act).
  Yes
        [ ]
        No [X]
 
 As
        of May
        14, 2007, the registrant had a total of 5,539,578 shares of Common Stock
        outstanding.
 
  
  **EMERGENT
        GROUP INC.**
 
 **FORM
        10-QSB Quarterly Report**
 
 **Table
        of Contents**
  
 **Page****PART
                I. FINANCIAL
                INFORMATION**Item
                1.Financial
                StatementsCondensed
                  Consolidated Balance Sheet as of March 31, 2007
                  (unaudited)
              
              
              3Condensed
                  Consolidated Statements of Income for the Three Months
                  Ended
                  March 31, 2007 and 2006 (unaudited)
              
              
              4Condensed
                  Consolidated Statements of Cash Flows for the Three
                  Months Ended
                  March 31, 2007 and 2006 (unaudited)
              
              
              5Notes
                  to Condensed Consolidated Financial Statements
              
              
              6Item
                2.Management’s
                Discussion and Analysis of Financial Conditionand
                Results of Operations
              
              
              11Item
                3.Controls
                and Procedures
              
              
              14**PART
                  II. OTHER INFORMATION**Item
                1.Legal
                Proceedings
              
              
              15Item
                2.Changes
                in Securities
              
              
              15Item
                3.Defaults
                Upon Senior Securities
              
              
              15Item
                4.Submissions
                of Matters to a Vote of Security Holders
              
              
              15Item
                5.Other
                Information
              
              
              15Item
                6.Exhibits
              
              
              15**Signatures**
              
              
              16
    2
  
 **PART
        I. FINANCIAL INFORMATION**
 
 **Item
        1. Financial Statements**
 
 **Emergent
                    Group Inc. and Subsidiaries****Condensed
                    Consolidated Balance Sheet****March
                    31,****2007****ASSETS**
                
                
                
                (Unaudited)**Current
                    assets**Cash
                
                
                
                
                $
                682,989Accounts
                    receivable, net of allowance for doubtfulaccounts
                    of $19,478
                
                
                
                
                
                2,625,918Inventory,
                    net of reserves of $63,408
                
                
                
                
                
                658,867Prepaid
                    expenses
                
                
                
                
                
                153,992Deferred
                    tax assets
                
                
                
                
                
                905,400Total
                    current assets
                
                
                
                
                
                5,027,166**Property
                    and equipment, net of accumulated depreciation and****amortization
                    of $4,875,973**
                
                
                
                
                
                4,072,038**Goodwill**
                
                
                
                
                
                1,120,058**Other
                    intangible assets, net of accumulated amortization
                    of****$**129,450
                
                
                
                
                
                136,835**Deposits
                    and other assets**
                
                
                
                
                
                106,857**Total
                    assets**
                
                
                
                
                $
                10,462,954**LIABILITIES
                    AND SHAREHOLDERS' EQUITY****Current
                    liabilities**Current
                    portion of capital lease obligations
                
                
                
                
                $
                843,847Current
                    portion of notes payable
                
                
                
                
                
                160,978Accounts
                    payable
                
                
                
                
                
                1,155,280Accrued
                    expenses and other liabilities
                
                
                
                
                
                1,426,620Total
                    current liabilities
                
                
                
                
                
                3,586,725**Capital
                    lease obligations**,
                    net of current portion
                
                
                
                
                
                1,767,217**Notes
                    payable**,
                    net of current portion
                
                
                
                
                
                75,666Total
                    liabilities
                
                
                
                
                
                5,429,608**Minority
                    interest**
                
                
                
                
                
                411,871**Shareholders'
                    equity**Preferred
                    stock, $0.001 par value, non-voting 10,000,000shares
                    authorized, no shares issued and outstanding
                
                
                
                
                
                -Common
                    stock, $0.04 par value, 100,000,000 shares authorized5,534,104
                    shares issued and outstanding
                
                
                
                
                
                221,361Additional
                    paid-in capital
                
                
                
                
                
                14,756,465Accumulated
                    deficit
                
                
                
                
                
                (10,356,351
                )Total
                    shareholders' equity
                
                
                
                
                
                4,621,475**Total
                    liabilities and shareholders' equity**
                
                
                
                
                $
                10,462,954
 
 The
        accompanying notes are an integral part of these condensed financial
        statements.
  3
   **Emergent
                    Group Inc. and Subsidiaries****Condensed
                    Consolidated Statements of Income****(Unaudited)****Three
                    Months Ended****March
                    31,****2007**
                
                **2006****Revenue**
                
                $
                4,382,808
                
                $
                3,990,817**Cost
                    of goods sold**
                
                
                2,567,105
                
                
                2,439,680**Gross
                    profit**
                
                
                1,815,703
                
                
                1,551,137**Selling,
                    general, and administrative expenses**
                
                
                1,088,224
                
                
                976,328**Income
                    from operations**
                
                
                727,479
                
                
                574,809**Other
                    income (expense)**Interest
                    expense
                
                
                (51,804
                )
                
                (46,741
                )Gain
                    on disposal of property and equipment
                
                
                8,102
                
                
                1,300Other
                    income, net
                
                
                14,220
                
                
                30,577Total
                    other income (expense)
                
                
                (29,482
                )
                
                (14,864
                )**Income
                    before provision for income taxes****and
                    minority interest**
                
                
                697,997
                
                
                559,945**Provision
                    for income taxes**
                
                
                (55,902
                )
                
                (23,864
                )**Income
                    before minority interest**
                
                
                642,095
                
                
                536,081**Minority
                    interest in income of consolidated****limited
                    liability companies**
                
                
                (124,985
                )
                
                (72,086
                )**Net
                    income**
                
                **$**
                **517,110**
                
                **$**
                **463,995****Basic
                    earnings per share**
                
                **$**
                **0.10**
                
                **$**
                **0.09****Diluted
                    earnings per share**
                
                **$**
                **0.09**
                
                **$**
                **0.08****Basic
                    weighted average shares outstanding**
                
                
                **5,442,961**
                
                
                **5,451,631****Diluted
                    weighted-average shares outstanding**
                
                
                **5,783,891**
                
                
                **5,816,939**
 The
        accompanying notes are an integral part of these condensed financial
        statements.
  4
 **Emergent
                      Group Inc. and Subsidiaries****Condensed
                      Consolidated Statements of Cash Flows****(Unaudited)**March
                      31,2007
                  
                  2006**Cash
                      flows from operating activities**Net
                      income
                  
                  $
                  517,110
                  
                  $
                  463,995Adjustments
                      to reconcile net income to net cashprovided
                      by operating activities:Depreciation
                      and amortization
                  
                  
                  347,841
                  
                  
                  250,275Amortization
                      of finance fees
                  
                  
                  13,576
                  
                  
                  3,348(Gain)
                      loss on disposal of property and equipment and other
                  
                  
                  (8,102
                  )
                  
                  (1,300
                  )Minority
                      interest in income
                  
                  
                  124,985
                  
                  
                  72,086Stock-based
                      compensation expense
                  
                  
                  21,490
                  
                  
                  19,073Other
                      income
                  
                  
                  -
                  
                  
                  (17,000
                  )(Increase)
                      decrease inAccounts
                      receivable
                  
                  
                  (90,684
                  )
                  
                  (154,522
                  )Inventory
                  
                  
                  160,724
                  
                  
                  3,505Prepaid
                      expenses
                  
                  
                  (2,095
                  )
                  
                  17,268Deposits
                      and other assets
                  
                  
                  38,476
                  
                  
                  (61,262
                  )Increase
                      (decrease) inAccounts
                      payable
                  
                  
                  (64,760
                  )
                  
                  261,334Accrued
                      expenses
                  
                  
                  10,229
                  
                  
                  68,262**Net
                      cash provided by operating activities**
                  
                  
                  1,068,790
                  
                  
                  925,062**Cash
                      flows from investing activities**Purchase
                      of property and equipment
                  
                  
                  (78,831
                  )
                  
                  (96,027
                  )Cash
                      paid to members of limited liability companies
                  
                  
                  (177,935
                  )
                  
                  (73,115
                  )Contributions
                      from new members to limited liability companies
                  
                  
                  7,500
                  
                  
                  -Proceeds
                      from the sale of property and equipment
                  
                  
                  4,580
                  
                  
                  5,050Net
                      cash used in investing activities
                  
                  
                  (244,686
                  )
                  
                  (164,092
                  )**Cash
                      flows from financing activities**Payments
                      on capital lease obligations
                  
                  
                  (263,048
                  )
                  
                  (139,642
                  )Payments
                      on dividends declared
                  
                  
                  (1,094,249
                  )
                  
                  (512,861
                  )Borrowings
                      under line of credit
                  
                  
                  3,928,100
                  
                  
                  3,954,691Repayments
                      on line of credit
                  
                  
                  (3,928,100
                  )
                  
                  (3,954,691
                  )Payments
                      on notes payable, net
                  
                  
                  (102,430
                  )
                  
                  (105,016
                  )Net
                      cash used in financing activities
                  
                  
                  (1,459,727
                  )
                  
                  (757,519
                  )**Net
                      (decrease) increase in cash**
                  
                  
                  (635,623
                  )
                  
                  3,451**Cash,
                      beginning of period**
                  
                  
                  1,318,612
                  
                  
                  585,377**Cash,
                      end of period**
                  
                  **$**
                  **682,989**
                  
                  **$**
                  **588,828****Supplemental
                      disclosures of cash flow information:****Interest
                      paid**
                  
                  **$**
                  **58,123**
                  
                  **$**
                  **47,468**
 
  The
        accompanying notes are an integral part of these condensed financial
        statements.
  5
  **EMERGENT
        GROUP INC and SUBSIDIARIES**
 **NOTES
        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**
 
 **1.**  **BUSINESS**
 
 Emergent
        Group Inc. (“Emergent”) is the parent company of PRI Medical Technologies, Inc.
        (“PRI Medical”), its wholly owned and only operating subsidiary. Emergent and
        PRI Medical are referred to collectively hereinafter as the “Company.” PRI
        Medical provides mobile laser/surgical services, along with technical support,
        on a per procedure basis to hospitals, out-patient surgery centers, and
        physicians' offices.
 
 **2.**  **BASIS
        OF PRESENTATION**
 
 The
        accompanying unaudited condensed consolidated financial statements of Emergent
        have been prepared pursuant to the rules of the Securities and Exchange
        Commission ("SEC"). Certain information and footnote disclosures normally
        included in financial statements prepared in accordance with accounting
        principles generally accepted in the United States have been condensed or
        omitted pursuant to such rules and regulations. These unaudited condensed
        consolidated financial statements should be read in conjunction with the
        audited
        consolidated financial statements and notes thereto included in the Company’s
        Annual Report on Form 10-KSB for the year ended December 31, 2006. In the
        opinion of management, the accompanying unaudited condensed consolidated
        financial statements reflect all adjustments, which are of a normal recurring
        nature, necessary for a fair presentation of the results for the periods
        presented.
 
 The
        results of operations presented for the three months ended March 31, 2007
        are
        not necessarily indicative of the results to be expected for any other interim
        period or any future fiscal year.
 
 *Principles
        of Consolidation*
 The
        consolidated financial statements include the accounts of Emergent and its
        wholly owned subsidiaries. Also, in accordance with the Financial Accounting
        Standards Board Interpretation No. 46R, “Consolidation of Variable Interest
        Entities” the Company has accounted for its equity investments in six limited
        liability companies under the full consolidation method. All significant
        intercompany transactions and balances have been eliminated through
        consolidation.
 
 *Use
        of Estimates*
 The
        preparation of the condensed consolidated financial statements in accordance
        with generally accepted accounting principles requires management to make
        estimates and assumptions that affect the reported amounts of assets and
        liabilities, disclosure of contingent assets and liabilities at the date
        of the
        financial statements, and the reported amounts of income and expenses during
        the
        reporting period. Actual results could differ significantly from those
        estimates.
 
 *Accounts
        Receivable and Concentration of Business and Credit Risks*
 We
        market
        our services primarily to hospitals and out-patient centers located in
        California, Nevada, Utah, Colorado, Arizona and New York. Our equipment rental
        and technician services are subject to competition from other similar
        businesses. Our accounts receivable represent financial instruments with
        potential credit risk. We offer credit terms and credit limits to most of
        our
        customers based on the creditworthiness of such customers. However, we retain
        the right to place such customers on credit hold should their account become
        delinquent. We maintain an allowance for doubtful accounts for estimated
        losses
        should customers fail to make required payments. In addition, we monitor
        the age
        of customer account balances, historical bad debt experience, customer
        creditworthiness, customer specific information, and changes in payment patterns
        when making estimates of the collectibility of trade receivables. Accounts
        receivable are written off when all collection attempts have failed. Our
        allowance for doubtful accounts will be increased if circumstances warrant.
        Based on the information available, management believes that our net accounts
        receivable are collectible.
 
 *Inventory*
 Inventory
        consists of finished goods primarily used in connection with the delivery
        of our
        mobile surgical equipment rental and services business. Inventory is stated
        at
        the lower of cost or market, on a first-in, first-out basis.
 
 *Reclassifications*
 Certain
        amounts presented for the prior year have been reclassified to conform to
        the
        current year’s presentation.
  6
  *Stock-Based
        Compensation*
 In
        December 2004, the FASB issued SFAS No. 123(R),”Share-Based Payment”. SFAS
        123(R) amends SFAS No. 123,”Accounting for Stock-Based Compensation”, and APB
        Opinion 25,”Accounting for Stock Issued to Employees.” SFAS No.123(R) requires
        that the cost of share-based payment transactions (including those with
        employees and non-employees) be recognized in the financial statements. SFAS
        No.
        123(R) applies to all share-based payment transactions in which an entity
        acquires goods or services by issuing (or offering to issue) its shares,
        share
        options, or other equity instruments (except for those held by an ESOP) or
        by
        incurring liabilities (1) in amounts based (even in part) on the price of
        the
        entity’s shares or other equity instruments, or (2) that require (or may
        require) settlement by the issuance of an entity’s shares or other equity
        instruments. This statement is effective for public companies qualifying
        as SEC
        small business issuers for the fiscal year beginning after December 15,
        2005.
  Effective
        January 1, 2006, we adopted Statement of Financial Accounting Standards (“SFAS”)
        No. 123R, Share-Based Payment, using the modified prospective method. Under
        this method, compensation cost recognized during the three months ended March
        31, 2007 and 2006 includes compensation cost for all share-based payments
        granted prior to, but not yet vested as of January 1, 2006, based on the
        grant
        date fair value estimated in accordance with the original provisions of SFAS
        No.
        123 amortized over the remaining vesting period for such options. There were
        no
        options granted during the three months ended March 31, 2007 and 2006. The
        implementation of the provisions of SFAS No. 123R on January 1, 2006
        resulted in additional compensation costs of $2,761 and $3,079 for the three
        months ended March 31, 2007 and 2006, respectively.
  The
        2002
        Employee Benefit and Consulting Services Compensation Plan (the “2002 Plan”) was
        adopted in 2002 for the purpose of providing incentives to key employees,
        officers, and consultants of the Company who provide significant services
        to the
        Company. As of March 31, 2007, there are 650,000 common shares authorized
        for
        grant under the 2002 Plan. The 2002 Plan originally adopted with 325,000
        shares
        was approved by the Company’s stockholders and the increase of 325,000 shares
        was approved the Company’s Board of Directors and the Compensation Committee in
        accordance with the Plan. Options will not be granted for a term of more
        than
        ten years from the date of grant. Generally, options will vest evenly over
        a
        period of five years, and the 2002 Plan expires in March 2012. Since shareholder
        approval was not obtained on or before April 1, 2003, all incentive stock
        options granted under the 2002 Plan have automatically become non-statutory
        stock options, and the Board is limited to granting non-statutory stock options
        under the 2002 Plan. As of March 31, 2007, the number of shares reserved
        for
        future awards was 230,607.
  A
        summary
        of the Company's outstanding options and activity is as follows:
  Remaining
                
                WeightedNumber
                
                Contractual
                    Life
                
                AverageOutstanding
                
                (in
                    years)
                
                Exercise
                    PriceNon
                    Vested, January 1, 2006
                
                
                162,813
                
                
                
                
                $
                0.47Granted
                
                
                -
                
                
                
                
                $
                -Forfeited
                
                
                16,437
                
                
                
                
                $
                4.74Vested
                
                
                42,025
                
                
                
                
                $
                1.72Non
                    Vested, December 31, 2006
                
                
                104,351
                
                
                5.25
                
                $
                0.40Granted
                
                
                -Forfeited
                
                
                -Vested
                
                
                10,100
                
                
                
                
                $
                0.40Non
                    Vested, March 31, 2007
                
                
                94,251
                
                
                5
                
                $
                0.40
  The
        weighted-average remaining contractual life of the options outstanding at
        March
        31, 2007 is 6.3 years. The exercise prices for the options outstanding at
        March
        31, 2007 ranged from $0.40 to $162.16, and information relating to these
        options
        is as follows:
  7
 Range
                    of Exercise Prices
                
                Stock
                    Options Outstanding
                
                Stock
                    Options Exercisable
                
                Weighted-Average
                    Remaining Contractual Life
                
                Weighted-Average
                    Exercise Price of Options Outstanding
                
                Weighted-Average
                    Exercise Price of Options Exercisable$
                0.40
                
                
                385,063
                
                
                292,987
                
                
                6.40
                    years
                
                $
                0.40
                
                $
                0.40$
                2.00
                    - 8.00
                
                
                4,000
                
                
                4,000
                
                
                5.76
                    years
                
                $
                5.00
                
                $
                5.00$
                20.00
                    - 51.00
                
                
                7,844
                
                
                7,844
                
                
                4.39
                    years
                
                $
                38.41
                
                $
                38.41$
                162.16
                
                
                5
                
                
                5
                
                
                2.15
                    years
                
                $
                162.16
                
                $
                162.16$
                0.40
                    - 162.16
                
                
                396,912
                
                
                304,836
                
                
                6.35
                    years
                
                $
                1.20
                
                $
                1.44
   As
        of
        March 31, 2007, the total unrecognized fair value compensation cost related
        to
        unvested stock options was $35,507, which is to be recognized over a remaining
        weighted average period of approximately 3.1 years.
 
 In
        addition to options granted under the 2002 Plan, as of March 31, 2007 we
        have
        215,000 restricted award shares issued and outstanding of which 105,000 shares
        were granted to executive officers and directors in March 2007. Award shares
        generally vest in equal installments over five years from the date of issuance.
        Such award shares are issued from time to time to executive officers, directors
        and employees of the Company. Non-vested award shares are subject to forfeiture
        in the event that the recipient is no longer employed by the Company at the
        time
        of vesting, subject to the Board’s right to waive the forfeiture provisions.
        Compensation expense related to such shares is determined as of the issuance
        date based on the fair value of the shares issued and is amortized over the
        related vesting period. Total compensation expense related to the award shares
        issued in March 2007 was $341,250, which is being amortized over the vesting
        period of five years. Compensation expense related to outstanding award shares
        was $5,729 and $4,990 for the three months ended March 31, 2007 and 2006,
        respectively.
 
 Earnings
        Per Share
 The
        Company utilizes SFAS No. 128, "Earnings per Share." Basic earnings per share
        are computed by dividing earnings available to common shareholders by the
        weighted-average number of common shares outstanding. Diluted earnings per
        share
        is computed similar to basic earnings per share except that the denominator
        is
        increased to include the number of additional common shares that would have
        been
        outstanding if the potential common share equivalents had been issued and
        if the
        additional common shares were dilutive. Common equivalent shares are excluded
        from the computation if their effect is anti-dilutive.
 
 *Recent
        Accounting Pronounments*
 In
        July
        2006, the FASB released FASB Interpretation No. 48, *Accounting
        for Uncertainty in Income Taxes, an interpretation of FASB Statement No.
        109* (FIN
        48).  FIN 48 clarifies the accounting and reporting for uncertainties in
        income tax law.  This interpretation prescribes a comprehensive model for
        the financial statement recognition, measurement, presentation and disclosure
        of
        uncertain tax positions taken or expected to be taken in income tax
        returns.  This statement is effective for fiscal years beginning after
        December 15, 2006.  The Company is currently in the process of evaluating
        the expected effect of FIN 48 on its results of operations and financial
        position.
  In
        September 2006, the FASB issued SFAS No. 157, *Fair
        Value Measurements* (SFAS
        157). SFAS 157 establishes a framework for measuring fair value in generally
        accepted accounting principles, and expands disclosures about fair value
        measurements.  SFAS 157 is effective for financial statements issued for
        fiscal years beginning after November 15, 2007.  The Company is required to
        adopt the provision of SFAS 157, as applicable, beginning in fiscal year
        2008.  Management does not believe the adoption of SFAS 157 will have a
        material impact on the Company's financial position or results of
        operations.
  8
 **3.**  **DEBT
        OBLIGATIONS**
  On
        May
        25, 2005, the Company entered into a two-year agreement with a lender to
        provide
        a revolving credit line (the “Revolver”) and term note (the “Term Note”) of up
        to $1,000,000, collateralized by accounts receivable and certain fixed assets
        (collectively referred to herein as the "Credit Facility"). Advances under
        the Revolver,
        as amended, are based on 80% of each eligible receivable, as defined. In
        addition, the Credit Facility provides for an annual fee equal to 1% of the
        capital availability amount, as defined, upon closing and on each anniversary
        of
        the closing date. Borrowings
        under the Revolver and Term Note bear interest at the prime rate (8.25% as
        of
        March 31, 2006), plus 2%. The Company incurred loan and closing costs of
        $26,785
        in connection with the negotiation and execution of the Credit Facility which
        is
        being amortized over the loan term of 24 months. As of March 31, 2007, total
        borrowings outstanding under the Credit Facility amounted to $24,370 all
        of
        which was outstanding under the Term Note. The Company has $975,630 of borrowing
        availability under the Credit Facility as of March 31, 2007.
 
 The
        terms
        and conditions of the Credit Facility included limited guarantees from three
        executive officers and one director of the Company. In connection with providing
        such limited guarantees to the lender, the guarantors were issued an aggregate
        of 260,000 shares of the Company’s common stock, of which an aggregate of
        200,500 were issued to the executive officers, and 59,500 shares to one outside
        director. The guarantors have each entered into an agreement with the Company
        to
        return the shares that they received in consideration of their limited guarantee
        in the event the guarantor on his own volition breaches (other than a breach
        that is cured within the terms of the limited guarantee agreement) or terminates
        his own respective limited guarantee, prior to the payment in full of the
        Company’s obligations to the lender or to the voluntary release from the limited
        guarantee by the lender. The Company recorded deferred compensation costs
        of
        $104,000 in connection with the issuance of common stock for the limited
        guarantees, which is being amortized to compensation expense over the loan
        term
        of 24 months. Compensation expense related to such guarantees amounted to
        $13,000 for each of the quarters ended March 31, 2007 and 2006,
        respectively.
 
 In
        June
        2006, the Credit Facility was amended, whereby the minimum borrowing amount,
        monthly collateral management fee, early termination fees and limited guarantees
        were eliminated. The amended agreement also requires the Company to maintain
        a
        tangible net worth of at least $1.5 million and requires the lender to pay
        the
        Company interest on cash collections in excess of amounts borrowed under
        the
        Revolver at a rate of 3% below the prime rate. In connection with the amendment,
        the Company incurred a fee of $30,000, which is being amortized over the
        loan
        term.
 
 In
        May
        2006 the Company entered into a master lease agreement with a bank to provide
        a
        lease line of credit of $500,000 for the financing of equipment purchases.
        Under
        the agreement, the Company may finance equipment purchases on an installment
        basis at a rate of interest determined at each respective borrowing date.
        Such
        rates will generally approximate the bank’s prime rate. As of March 31, 2007, we
        had $417,592 outstanding under the credit facility payable in monthly
        installments over a term of 36 to 48 months.
 
 As
        of
        March 31, 2007 we have certain outstanding debt and lease obligations amounting
        to $37,300, which require additional principal payments of up to $187,500,
        in
        the event of default. As of March 31, 2007 and the filing date of this Quarterly
        Report on Form 10-QSB, we were in compliance with the terms and conditions
        of
        such debt and lease agreements.
  The
        Company incurred net interest expense of $51,804 and $46,741 for the three
        months ended March 31, 2007 and 2006, respectively.
  4. 
COMMITMENTS
        AND
        CONTINGENCIES
  *Legal
        Matters*
 Byong
        Y.
        Kwon, Plaintiff against Daniel J. Yun, Emergent Group Inc., Emergent Capital
        Investment Management, LLC, Metedeconk Holdings, LLC, Voyager Advisors, LLC,
        Millennium Tradition Limited (f/k/a Millennium Heritage, Limited), Emergent
        Management Company, LLC, Endurance Advisors, Limited, SK Networks Co., Ltd.
        (f/k/a SK Global Co., Ltd.), Hye Min Kang, John Does 1-2 and Richard Roes
        1-2
        (collectively the “Defendants”).
 
 Plaintiff’s
        complaint against the Defendants named above is a civil lawsuit, which was
        signed by the clerk on February 2, 2005. This action is brought in the United
        States District Court, Southern District of New York by Plaintiff against
        the
        Company, a former director, Daniel Yun, and other parties to recover money
        damages for alleged fraud, negligent misrepresentations and aiding and abetting
        fraud. The Amended Complaint alleges that the factual basis involving the
        action
        against the Company involves alleged false representations to Plaintiff to
        induce him to leave his then employment in 2001 and accept the Company’s and
        another named Defendant’s alleged offer of employment. Plaintiff seeks
        compensatory damages and punitive damages each in the amount of not less
        than
        $2,100,000 together with interest thereon, reasonable attorneys’ fees and other
        specific relief against
        Defendants other than the Company. Management has denied the Plaintiff’s
        allegations against the Company and intends to vigorously defend this lawsuit.
        During the quarter ended March 31, 2007, there were no material developments
        in
        this matter.
  9
  
 **5.**  **RELATED
        PARTY TRANSACTIONS**
 
 *Transactions
        with BJH Management*
 The
        Company’s Chairman and Chief Executive Officer maintains his primary office in
        New York. In this regard, the Company reimbursed BJH Management, LLC (“BJH”), a
        company owned by the Company’s Chairman and Chief Executive Officer, for office
        rent and related expenses totaling $13,846 and $9,458 for the three months
        ended
        March 31, 2007 and 2006, respectively.
 
 Effective
        July 1, 2006, the services of the Company’s Chairman and Chief Executive Officer
        are contracted through BJH Management for a monthly fee of $15,167. In March
        2007, the services agreement with BJH Management was extended to June 30,
        2010.
 
 In
        March
        2007, the Company agreed to extend Mr. Buther’s employment contract for one year
        to June 2008.
 
 **6.**  **LIMITED
        LIABILITY COMPANIES**
 
 In
        connection with expanding its business in certain commercial and geographic
        areas, PRI Medical will at times help to form Limited Liability Companies
        (“LLCs”) in which it will acquire a minority interest and offer the remaining
        interest to other investors. These LLCs acquire certain equipment for use
        in
        their respective business activities which generally focus on surgical
        procedures. As of March 31, 2007, PRI Medical holds minority equity interests
        in
        six LLCs, which conduct business in California and Colorado. In accordance
        with
        the Financial Accounting Standards Board Interpretation No. 46R, “Consolidation
        of Variable Interest Entities” the Company accounted for its equity investments
        in its LLCs under the full consolidation method whereby transactions between
        the
        Company and LLCs have been eliminated through consolidation.
  10
  **Item
        2.**  **Management's
        Discussion and Analysis of Financial Condition and Results of
        Operations** ****
 
 **Forward-Looking
        Statements**
 
 The
        information contained in this Form 10-QSB and documents incorporated herein
        by
        reference are intended to update the information contained in the Company’s
        Annual Report on Form 10-KSB for the year ended December 31, 2006 and such
        information presumes that readers have access to, and will have read, the
        “Management’s Discussion and Analysis of Financial Condition and Results of
        Operations,” “Risk Factors” and other information contained in such Form 10-KSB
        and other Company filings with the Securities and Exchange Commission (“SEC”).
 
 This
        Quarterly Report on Form 10-QSB contains forward-looking statements within
        the
        meaning of Section 27A of the Securities Act of 1933, as amended, and Section
        21E of the Securities Exchange Act of 1934, as amended. These forward-looking
        statements involve risks and uncertainties, and actual results could be
        significantly different than those discussed in this Form 10-QSB. Certain
        statements contained in Management's Discussion and Analysis, particularly
        in
        "Liquidity and Capital Resources," and elsewhere in this Form 10-QSB are
        forward-looking statements. These statements discuss, among other things,
        expected growth, future revenues and future performance. Although we believe
        the
        expectations expressed in such forward-looking statements are based on
        reasonable assumptions within the bounds of our knowledge of our business,
        a
        number of factors could cause actual results to differ materially from those
        expressed in any forward-looking statements, whether oral or written, made
        by us
        or on our behalf. The forward-looking statements are subject to risks and
        uncertainties including, without limitation, the following: (a) changes in
        levels of competition from current competitors and potential new competition,
        (b) possible loss of significant customer(s), (c) the Company’s ability to
        effectively integrate new and changing medical technologies into to its product
        and service offerings, (d) the Company’s ability to meet the terms and
        conditions of its debt and lease obligations, and (e) changes in availability
        or
        terms of working capital financing from vendors and lending institutions.
        The
        foregoing should not be construed as an exhaustive list of all factors that
        could cause actual results to differ materially from those expressed in
        forward-looking statements made by us. All forward-looking statements included
        in this document are made as of the date hereof, based on information available
        to the Company on the date thereof, and the Company assumes no obligation
        to
        update any forward-looking statements.
 
 **Overview**
 
 Emergent
        Group Inc. (“Emergent”) is the parent company of PRI Medical Technologies, Inc.
        (“PRI Medical”), its wholly owned and only operating subsidiary. Emergent and
        PRI Medical are referred to collectively hereinafter as the “Company.” PRI
        Medical provides mobile laser/surgical services, along with technical support,
        on a per procedure basis to hospitals, out-patient surgery centers, and
        physicians' offices.
 
 **Critical
        Accounting Policies**
 
 Our
        discussion and analysis of our financial condition and results of operations
        are
        based upon our financial statements, which have been prepared in accordance
        with
        generally accepted accounting principles in the United States. The preparation
        of financial statements requires managers to make estimates and disclosures
        on
        the date of the financial statements. On an on-going basis, we evaluate our
        estimates including, but not limited to, those related to revenue recognition,
        inventory valuation and property and equipment. We use authoritative
        pronouncements, historical experience and other assumptions as the basis
        for
        making judgments. Actual results could differ from those estimates. We believe
        that the following critical accounting policies affect our more significant
        judgments and estimates in the preparation of our financial
        statements.
 
 *Revenue
        Recognition* .
        Revenue
        is recognized when the services are performed and billable. We are required
        to
        make judgments based on historical experience and future expectations, as
        to the
        realizability of goods and services billed to our customers. These judgments
        are
        required to assess the propriety of the recognition of revenue based on Staff
        Accounting Bulletin (“SAB”) No. 104, “Revenue Recognition,” and related
        guidance. We make such assessments based on the following factors: (a)
        customer-specific information, and (b) historical experience for issues not
        yet
        identified.
  11
  *Inventory
        Valuation* .
        We are
        required to make judgments based on historical experience and future
        expectations as to the realizability of our inventory. We make these assessments
        based on the following factors: (a) existing orders and usage, (b) age of
        the
        inventory, and (c) historical experience.
 
 *Property
        and Equipment* .
        We are
        required to make judgments based on historical experience and future
        expectations as to the realizability of our property and equipment. We made
        these assessments based on the following factors: (a) the estimated useful
        lives
        of such assets, (b) technological changes in our industry, and (c) the changing
        needs of our customers.
 
 **Results
        of Operations**
 
 The
        following table sets forth certain selected unaudited condensed consolidated
        statements of income data for the periods indicated in dollars and as a
        percentage of total revenues. The following discussions relates to our results
        of operations for the periods noted and are not necessarily indicative of
        the
        results expected for any other interim period or any future fiscal year.
        In
        addition, we note that the period-to-period comparison may not be indicative
        of
        future performance.
  **March
                    31,**2007
                
                %
                
                2006
                
                %**Revenue**
                
                $
                4,382,808
                
                
                100
                %
                $
                3,990,817
                
                
                100
                %**Cost
                    of goods sold**
                
                
                2,567,105
                
                
                59
                %
                
                2,439,680
                
                
                61
                %**Gross
                    profit**
                
                
                1,815,703
                
                
                41
                %
                
                1,551,137
                
                
                39
                %**Selling,
                    general, and administrative expenses**
                
                
                1,088,224
                
                
                25
                %
                
                976,328
                
                
                24
                %**Income
                    from operations**
                
                
                727,479
                
                
                17
                %
                
                574,809
                
                
                14
                %**Other
                    income (expense)**
                
                
                (29,482
                )
                
                -1
                %
                
                (14,864
                )
                
                0
                %**Income
                    before provision for income****taxes
                    and minority interest**
                
                
                697,997
                
                
                16
                %
                
                559,945
                
                
                14
                %**Provision
                    for income taxes**
                
                
                (55,902
                )
                
                -1
                %
                
                (23,864
                )
                
                0
                %**Net
                    income before minority interest**
                
                
                642,095
                
                
                15
                %
                
                536,081
                
                
                14
                %**Minority
                    interest in income of consolidated****limited
                    liability companies**
                
                
                (124,985
                )
                
                -3
                %
                
                (72,086
                )
                
                -2
                %**Net
                    income**
                
                $
                517,110
                
                
                12
                %
                $
                463,995
                
                
                12
                %
 
 **Comparison
        of the Three Months Ended March 31, 2007 to March 31, 2006**
 
 The
        Company generated revenues of $4,382,808 in 2007 compared to $3,990,817 in
        2006.
        The increase in revenues in 2007 of $391,991, or 10% is primarily related
        to an
        increase in revenues from our surgical procedures. Revenues from our surgical
        and cosmetic procedures represented approximately 94% and 6% of total revenues
        for 2007 and 92% and 8% for 2006, respectively.
 
 Cost
        of
        goods sold was $2,567,105 in 2007 or 59% of revenues compared to $2,439,680
        or
        61% in 2006. Costs of good sold primarily consist of payroll costs and related
        expenses for technicians, cost of disposables consumed, insurance costs and
        other operating costs incurred in rendering mobile medical equipment and
        technician services. The overall increase in cost of goods sold of $127,425
        or
        5% for 2007 is generally due to increases in disposable costs, payroll and
        related costs and an increase in depreciation expense. Disposable costs
        increased as a result of a change in the mix of surgical procedures rendered
        to
        customers whereby a greater number of higher priced procedures were performed
        in
        2007 compared to 2006, which required more expensive disposable items while
        payroll costs increased as a result of the increase in the number of surgical
        and cosmetic procedures performed in 2007. Depreciation and amortization
        expense
        increased due to equipment purchases in second half of 2006. The net change
        in
        other cost categories included in cost of goods sold remained relatively
        unchanged in 2007 compared to 2006.
 
 Gross
        profit from operations was $1,815,703 in 2007 compared to $1,551,137 in 2006.
        Gross profit as a percentage of revenues was 41% in 2007 compared to 39%
        for
        2006. The improvement in our gross profit margin in 2007 is primarily due
        to the
        mix of surgical procedures performed in 2007, whereby we performed a greater
        number of higher priced surgical procedures compared to 2006, which resulted
        in
        higher overall margins. In addition, profit margins
        after disposable costs will vary depending on the type of surgical procedure
        performed due to the fact that certain procedures require more expensive
        disposable items. Gross margin rates will vary from period to period depending
        upon various factors including product and service mix, pricing considerations,
        and equipment and technician utilization rates. The gross margin for 2007
        is not
        necessarily indicative of the margins that may be realized in future
        periods.
  12
  
 Selling,
        general, and administrative expenses were $1,088,224 or 25% of revenues in
        2007
        compared to $976,328 or 24% of revenues in 2006. Such costs include, among
        others, payroll and related expenses, insurance costs and occupancy costs.
        The
        increase in selling, general and administrative expenses of $111,896 in 2007
        is
        primarily related to increases in incentive compensation and to increases
        in
        sales management and other payroll related expenses.
 
 Other
        income (expense) was $(29,482) in 2007 compared to $(14,864) in 2006. Other
        income (expense) includes interest expense, gains and losses on disposal
        of
        property and equipment, and other miscellaneous income and expense items.
        The
        net increase in other income (expense) of $(14,618) is primarily related
        to an
        increase the amortization of loan fees and interest expense in 2007 compared
        to
        2006. Such increases relate to loan fees paid in connection with an amendment
        to
        our line of credit agreement during mid-2006 and to increased interest costs
        related to new equipment leases during the second half of 2006.
 
 The
        minority interest in net income of limited liability companies was $124,985
        in
        2007 compared to $72,086 in 2006. Minority interest in income relates to
        the
        consolidation of six entities in 2007 and four entities in 2006 in which
        we hold
        an equity investment interest. As of March 31, 2007 and 2006, in accordance
        with
        the Financial Accounting Standards Board Interpretation No. 46R, “Consolidation
        of Variable Interest Entities”, the Company accounted for its equity investments
        in these entities under the full consolidation method.
 
 Net
        income was $517,110 in 2007 compared to $463,995 in 2006. Provision for income
        taxes was $55,902 in 2007 compared to $23,864 in 2006. The Company has net
        operating loss carryforwards for federal tax purposes. The provision for
        income
        taxes of $55,902 as of March 31, 2007 relates to estimated Alternative Minimum
        Taxes (AMT) and to state taxes payable. Basic net income per share for 2007
        and
        2006 was $0.10 and $0.09, respectively, while fully diluted net income per
        share
        for 2007 and 2006 was $0.09 and $0.08, respectively. Basic and fully diluted
        shares outstanding for 2007 were 5,442,961 and 5,783,891, respectively, and
        5,451,631 and 5,816,939 for 2006, respectively.
 
 **Liquidity
        and Capital Resources**
 
 On
        May
        25, 2005, the Company entered into a two-year agreement with a new lender
        to
        provide a revolving credit line (the “Revolver”) and term note (the “Term Note”)
        of up to $1,000,000 collateralized by accounts receivable and certain fixed
        assets (collectively referred to herein as the "Credit Facility"). Advances
        under the Revolver, as amended, are based on 80% of each eligible receivable,
        as
        defined. In
        addition, the Credit Facility provides for an annual fee equal to 1% of the
        capital availability amount, as defined, upon closing and on each anniversary
        of
        the closing date. Borrowings
        under the Revolver and Term Note bear interest at the prime rate (8.25% as
        of
        March 31, 2006), plus 2%. The Company incurred loan and closing costs of
        $26,785
        in connection with the negotiation and execution of the Credit Facility which
        is
        being amortized over the loan term of 24 months. As of March 31, 2007, total
        borrowings outstanding under the Credit Facility amounted to $24,370, all
        of
        which was outstanding under the Term Note. The Company has $975,630 of borrowing
        availability under the Credit Facility as of March 31, 2007.
 
 The
        terms
        and conditions of the Credit Facility included limited guarantees from three
        executive officers and one director of the Company. In connection with providing
        such limited guarantees to the lender, the guarantors were issued an aggregate
        of 260,000 shares of the Company’s common stock, of which an aggregate of
        200,500 were issued to the executive officers, and 59,500 shares to one outside
        director. The guarantors have each entered into an agreement with the Company
        to
        return the shares that they received in consideration of their limited guarantee
        in the event the guarantor on his own volition breaches (other than a breach
        that is cured within the terms of the limited guarantee agreement) or terminates
        his own respective limited guarantee, prior to the payment in full of the
        Company’s obligations to the lender or to the voluntary release from the limited
        guarantee by the lender. The Company recorded deferred compensation costs
        of
        $104,000 in connection with the issuance of common stock for the limited
        guarantees, which is being amortized to compensation expense over the loan
        term
        of 24 months.
 
 In
        June
        2006, the Credit Facility was amended, whereby the minimum borrowing amount,
        monthly collateral management fee, early termination fees and limited guarantees
        were eliminated. The amended agreement also requires
        the Company to maintain a tangible net worth of at least $1.5 million and
        requires the lender to pay the Company interest on cash collections in excess
        of
        amounts borrowed under the Revolver at a rate of 3% below the prime rate.
        In
        connection with the amendment, the Company incurred a fee of $30,000, which
        is
        being amortized over the loan term.
  13
  
 In
        May
        2006 the Company entered into a master lease agreement with a bank to provide
        a
        lease line of credit of $500,000 for the financing of equipment purchases.
        Under
        the agreement, the Company may finance equipment purchases on an installment
        basis at a rate of interest determined at each respective borrowing date.
        Such
        rates will generally approximate the bank’s prime rate. As of March 31, 2007, we
        had $417,592 outstanding under the credit facility payable in monthly
        installments over a term of 36 to 48 months.
 
 As
        of
        March 31, 2007 we have certain outstanding debt and lease obligations amounting
        to $37,300, which require additional principal payments of up to $187,500,
        in
        the event of default. As of March 31, 2007 and the filing date of this Quarterly
        Report on Form 10-QSB, we were in compliance with the terms and conditions
        of
        such debt and lease agreements.
 
 The
        Company had cash and cash equivalents of $682,989 at March 31, 2007. Cash
        provided by operating activities for the three months ended March 31, 2007
        was
        $1,068,790. Cash generated from operations includes net income of $517,110,
        depreciation and amortization of $361,417, minority interest in net income
        of
        $124,985, decrease in inventory of $160,724, stock-based compensation expense
        of
        $21,490, decreases in deposits and other assets of $38,476, and an increase
        in
        accrued expenses of $10,229; offset by increases in accounts receivable of
        $90,684 and a decrease in accounts payable of $64,760. Cash used in investing
        activities was $244,686 related to the purchase of property and equipment
        of
        $78,831 and to cash distributions of $177,935 to members of limited liability
        companies; offset by net proceeds of $4,580 from the disposition of property
        and
        equipment and contributions for new members to limited liability companies
        of
        $7,500. Cash used for financing activities was $1,459,727 from payments on
        lease
        and debt obligations of $263,048 and $102,430, respectively, and payment
        of
        dividends on common stock of $1,094,249. In addition, during the three months
        ended March 31, 2007 we borrowed and repaid $3,928,100 under our line of
        credit.
 
 The
        Company had cash and cash equivalents of $588,828 at March 31, 2006. Cash
        provided by operating activities for the three months ended March 31, 2006
        was
        $925,062. Cash generated from operations includes net income of $463,995,
        depreciation and amortization of $272,696, including stock-based compensation
        expense of $19,073, minority interest in net income of $72,086 and an
        increase in accounts payable and accrued expenses of $329,596; offset by
        an
        increase in accounts receivable of $154,522 and a decrease in prepaid expenses
        of $17,268. Cash used in investing activities was $164,092 related to the
        purchase of property and equipment of $96,027 and to cash distributions of
        $73,115 to members of limited liability companies, offset by net proceeds
        of
        $5,050 from the disposition of property and equipment. Cash used for financing
        activities was $757,519 from payments on lease and debt obligations of $139,642
        and $105,016, respectively, and payment of dividends on common stock of
        $512,861. In addition, during the quarter ended March 31, 2006 we borrowed
        and
        repaid $3,954,691 under our line of credit.
 
 We
        anticipate that our future liquidity requirements will arise from the need
        to
        finance our accounts receivable and inventories, and from the need to fund
        our
        current debt and lease obligations and capital expenditures. The primary
        sources
        of funding for such requirements will be cash generated from operations,
        borrowings under debt facilities and trade payables, and raising additional
        capital from the sale of equity or other securities. The Company believes
        that
        it can generate sufficient cash flow from these sources to fund its on-going
        operations.
 
 **Item
        3. Controls and Procedures**
 
 The
        Company maintains disclosure controls and procedures that are designed to
        ensure
        that information required to be disclosed in the Company's Exchange Act reports
        is recorded, processed, summarized and reported within the time periods
        specified in the SEC's rules and forms, and that such information is accumulated
        and communicated to the Company's management, including its Chief Executive
        Officer and Chief Financial Officer, as appropriate, to allow timely decisions
        regarding required disclosure based closely on the definition of “disclosure
        controls and procedures” in Rule 13a-15(e). In designing and evaluating the
        disclosure controls and procedures, management recognized that any controls
        and
        procedures, no matter how well designed and operated, can provide only
        reasonable assurance of achieving the desired control objectives, and management
        necessarily was required to apply its judgment in evaluating the cost-benefit
        relationship of possible controls and procedures. The Company carried out
        an
        evaluation, under the supervision and with the participation of the Company's
        management, including the Company's Chief Executive Officer and the Company's
        Chief Financial Officer, of the effectiveness of the design and operation
        of the
        Company's disclosure controls and procedures. Based on the foregoing, the
        Company’s Chief Executive Officer and Chief Financial Officer concluded that the
        Company's disclosure controls and procedures were effective at the reasonable
        assurance level at the end of our most recent quarter ended March 31, 2007.
        There have been no changes in the Company’s disclosure controls and procedures
        or in other factors that could affect the disclosure controls subsequent
        to the
        date the Company completed its evaluation.
  14
  Management
        has not yet completed, and is not yet required to have completed, its assessment
        of the effectiveness of internal control over financial reporting as required
        by
        Section 404 of the Sarbanes-Oxley Act of 2002, as amended.
 
 **PART
        II. OTHER INFORMATION**
 
 **Item
        1.**  **Legal
        Proceedings**
 
 See
        Note
        4 to Notes to Condensed Consolidated Financial Statements included herein
        for a
        description of legal matters.
  **Item
        2.**  **Changes
        in Securities**
 
 (a)
              In
                  the first quarter ended March 31, 2007, there were no sales of
                  unregistered securities, except for the issuance of 105,000 shares
                  of the
                  Company’s Common Stock to its executive officers and directors in
                  connection with services rendered. These shares will vest in five
                  equal
                  annual installments commencing on March 19, 2008. Exemption is
                  claimed
                  under Section 4(2) of the Securities Act of 1933, as amended, in
                  connection with the issuance of the 105,000 shares of restricted
                  Common
                  Stock.
 (b)
              Rule
                  463 of the Securities Act is not applicable to the Company.
 (c)
              In
                  the first quarter ended March 31, 2007 there were no repurchases
                  by the
                  Company of its Common Stock.
  **Item
        3.**  **Defaults
        Upon Senior Securities**
 
 None.
  **Item
        4.**  **Submissions
        of Matters to a Vote of Security Holders**
  In
        the
        first quarter ended March 31, 2007 there were no matters submitted to a vote
        of
        security holders.
 
 **Item
        5.**  **Other
        Information**
  None.
  **I** **tem
        6.**  **Exhibits**
  Except
        for the exhibits listed below, other required exhibits have been previously
        filed with the Securities and Exchange Commission under the Securities Exchange
        Act of 1934, as amended.
 
 Number
        Exhibit Description
   11.1
              Statement
                  re: computation of earnings per share. See condensed consolidated
                  statement of operations and notes
                  thereto.
 31.1
              Certification
                  of Chief Executive Officer Pursuant to Rule
                  13a-14(a) under the Securities Exchange Act of 1934, as adopted
                  pursuant
                  to Section 302 of the Sarbanes-Oxley Act of
                  2002*
 31.2
              Certification
                  of Chief Financial Officer Pursuant to Rule
                  13a-14(a) under the Securities Exchange Act of 1934, as adopted
                  pursuant
                  to Section 302 of the Sarbanes-Oxley Act of
                  2002*
 32.1
              Certification
                  of Chief Executive Officer 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 Chief Financial Officer pursuant to 18
                  U.S.C. Section 1350, as adopted pursuant to Section 906 of the
                  Sarbanes-Oxley Act of 2002*
 99.1
              Press
                  Release*
  ________________________
 *
        Filed
        herewith.
 
 15
 **SIGNATURES**
 
 
 Pursuant
        to the requirements of Section 13 or 15(d) of the Securities Exchange Act
        of
        1934, the registrant has duly caused this report to be signed on its behalf
        by
        the undersigned, thereunto duly authorized.
 
 **EMERGENT GROUP
                INC.**Date: May
                14,
                2007
              By:
              /s/ Bruce
                J.
                HaberBruce
                  J. Haber,
                Chairman
                  and Chief Executive Officer
  Date: May
                14, 2007
              By:
              /s/ William
                M. McKayWilliam
                  M. McKay
                Chief
                  Financial Officer and Secretary
 
  16