**UNITED          STATES**

**SECURITIES          AND EXCHANGE COMMISSION**

**WASHINGTON,          D.C.   20549**

**___________________________________**

**FORM          10-QSB**

**___________________________________**

**Quarterly          Report Pursuant to Section 13 or 15(d) of the**

**Securities          Exchange Act of 1934**

**For          the Quarterly Period Ended June 30, 2007**

**Commission          File Number:  0-21475**

**EMERGENT          GROUP INC.**

|  **Nevada**                                                        |   ** ****93-1215401**                                |
|-------------------------------------------------------------------------|---------------------------------------------------------------------|
|   (State                    of jurisdiction of Incorporation) |   (I.R.S.                    Employer Identification No.) |
|                                                                    |                                                                |

**10939          Pendleton Street**

**Sun          Valley, CA 91352**

**(818)          394-2800**

**Not          Applicable**

**___________________________________**

----

**EMERGENT        GROUP INC.**

**FORM        10-QSB Quarterly Report**

**Table        of Contents**

**PART        I.  FINANCIAL INFORMATION**

|                                                    |                                                                                                                              |  **Page** |
|---------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|----------------|
|                                                    |                                                                                                                              |           |
| Item                    1.                              | Financial                    Statements                                                                                           |           |
|                                                    |                                                                                                                              |           |
|                                                         | Condensed                      Consolidated Balance Sheet as of June 30, 2007                      (unaudited)                    | 3              |
|                                                    |                                                                                                                              |           |
|                                                         | Condensed                  Consolidated Statements of Income for the Three and Six                  Months                        |           |
|                                                    | Ended                      June 30, 2007 and 2006 (unaudited)                                                                     | 4              |
|                                                    |                                                                                                                              |           |
|                                                         | Condensed                  Consolidated Statements of Cash Flows for the Six Months                                               |           |
|                                                         | Ended                      June 30, 2007 and 2006 (unaudited)                                                                     | 5              |
|                                                    |                                                                                                                              |           |
|                                                         | Notes                      to Condensed Consolidated Financial Statements                                                         | 6              |
|                                                    |                                                                                                                              |           |
| Item                    2.                              | Management’s                    Discussion and Analysis of Financial Condition and Results of                    Operations | 11             |
|                                                    |                                                                                                                              |           |
| Item                    3.                              | Controls                    and Procedures                                                                                        | 15             |
|                                                    |                                                                                                                              |           |
| **PART                    II. OTHER INFORMATION**  |                                                                                                                              |
|                                                    |                                                                                                                              |           |
| Item                    1.                              | Legal                    Proceedings                                                                                              | 15             |
|                                                    |                                                                                                                              |           |
| Item                    2.                              | Changes                    in Securities                                                                                          | 15             |
|                                                    |                                                                                                                              |           |
| Item                    3.                              | Defaults                    Upon Senior Securities                                                                                | 16             |
|                                                    |                                                                                                                              |           |
| Item                    4.                              | Submissions                    of Matters to a Vote of Security Holders                                                           | 16             |
|                                                    |                                                                                                                              |           |
| Item                    5.                              | Other                    Information                                                                                              | 16             |
|                                                    |                                                                                                                              |           |
| Item                    6.                              | Exhibits                                                                                                                          | 16             |
|                                                    |                                                                                                                              |           |
| Signatures                                              |                                                                                                                              | 17             |

----

**PART        I.  FINANCIAL INFORMATION**

**Item        1.  Financial Statements**

**Emergent          Group Inc. and Subsidiaries**

**Condensed          Consolidated Balance Sheet**

|                                                                                                                                             |   | **June                      30,****2007** |       |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|------------|
| **ASSETS**                                                                                                                                       |   | (Unaudited)                               |       |
|                                                                                                               |   |                                      |       |
| **Current                    assets**                                                                                                  |   |                                      |       |
|  Cash                                                                                                                   |   | $                                         | 1,076,253  |   |
|  Accounts                    receivable, net of allowance for doubtful                                                                      |   |                                      |       |   |
|   accounts                    of $19,478                                                                                               |   |                                      | 2,312,442  |   |
|  Inventory                                                                                                                                  |   |                                      | 460,499    |   |
|  Prepaid                    expenses                                                                                                        |   |                                      | 212,013    |   |
|  Deferred                    tax assets                                                                                                     |   |                                      | 905,400    |   |
|                                                                                                               |   |                                      |       |   |
|    Total                    current assets                                                                                        |   |                                      | 4,966,607  |   |
|                                                                                                               |   |                                      |       |   |
| **Property                  and equipment, net of accumulated depreciation                  and****amortization                  of $5,216,079** |   |                                      | 4,139,020  |   |
| **Goodwill**                                                                                                                 |   |                                      | 1,120,058  |   |
| **Other                  intangible assets, net of accumulated amortization of****$143,960**                                           |   |                                      | 122,326    |   |
| **Deposits                    and other assets**                                                                                                 |   |                                      | 112,662    |   |
|                                                                                                               |   |                                      |       |   |
|                                                                                                               |   |                                      |       |   |
| **Total                    assets**                                                                                               |   | $                                         | 10,460,673 |   |
|                                                                                                               |   |                                      |       |   |
| **LIABILITIES                    AND SHAREHOLDERS' EQUITY**                                                                                      |   |                                      |       |   |
|                                                                                                               |   |                                      |       |   |
| **Current                    liabilities**                                                                                                  |   |                                      |       |   |
|  Current                    portion of capital lease obligations                                                                            |   | $                                         | 991,180    |   |
|  Current                    portion of notes payable                                                                                        |   |                                      | 106,227    |   |
|  Accounts                    payable                                                                                                        |   |                                      | 531,904    |   |
|  Accrued                    expenses and other liabilities                                                                                  |   |                                      | 1,104,913  |   |
|                                                                                                               |   |                                      |       |   |
|    Total                    current liabilities                                                                                   |   |                                      | 2,734,224  |   |
|                                                                                                               |   |                                      |       |   |
| **Capital                    lease obligations**, net of current portion                                                                         |   |                                      | 2,209,323  |   |
| **Notes                    payable**, net of current portion                                                                                     |   |                                      | 50,445     |   |
|                                                                                                               |   |                                      |       |   |
|    Total                  liabilities                                                                                             |   |                                      | 4,993,992  |   |
|                                                                                                               |   |                                      |       |   |
| **Minority                    interest**                                                                                                    |   |                                      | 452,038    |   |
|                                                                                                               |   |                                      |       |   |
| **Shareholders'                    equity**                                                                                                      |   |                                      |       |   |
|  Preferred                    stock, $0.001 par value, non-voting 10,000,000                                                                |   |                                      |       |   |
|   shares                    authorized, no shares issued and outstanding                                                               |   |                                      | -          |   |
|  Common                    stock, $0.04 par value, 100,000,000 shares authorized                                                            |   |                                      |       |   |
|   5,555,881                    shares issued and outstanding                                                                           |   |                                      | 222,232    |   |
|  Additional                    paid-in capital                                                                                              |   |                                      | 14,787,551 |   |
|  Accumulated                    deficit                                                                                                     |   |                                      | (9,995,140 | ) |
|                                                                                                               |   |                                      |       |   |
|    Total                    shareholders' equity                                                                                  |   |                                      | 5,014,643  |   |
|                                                                                                               |   |                                      |       |   |
| ** Total                    liabilities and shareholders' equity**                                                                          |   | $                                         | 10,460,673 |   |
|                                                                                                               |   |                                      |       |   |

----

**Emergent          Group Inc. and Subsidiaries**

**Condensed          Consolidated Statements of Income**

**(Unaudited)**

|                                                                 |   |                                      |          |   |                                    |       |          |     |   |       |          |   |
|----------------------------------------------------------------------|--------|-------------------------------------------|---------------|--------|-----------------------------------------|------------|---------------|----------|--------|------------|---------------|--------|
|                                                                 |   |                                      |          |   |                                    |       |          |     |   |       |          |   |
|                                                                 |   | **Three                    Months Ended** |          |   | **Six                    Months Ended** |       |
|                                                                 |   | **June                    30,**           |          |   | **June                    30,**         |       |
|                                                                 |   | **2007**                                  |          |   | **2006**                                |       |          | **2007** |   |       | **2006**      |   |
|                                                                 |   |                                      |          |   |                                    |       |          |     |   |       |          |   |
| **Revenue**                                                          |   | $                                         | 4,331,488     |   |                                    | $          | 3,993,211     |     |   | $          | 8,714,296     |   |   | $ | 7,984,028 |   |
| **Cost                    of goods sold**                            |   |                                      | 2,623,649     |   |                                    |       | 2,362,269     |     |   |       | 5,190,753     |   |   |   | 4,801,949 |   |
|                                                                 |   |                                      |          |   |                                    |       |          |     |   |       |          |   |   |   |   |   |
| **Gross                    profit**                                  |   |                                      | 1,707,839     |   |                                    |       | 1,630,942     |     |   |       | 3,523,543     |   |   |   | 3,182,079 |   |
|                                                                 |   |                                      |          |   |                                    |       |          |     |   |       |          |   |   |   |   |   |
| **Selling,                    general, and administrative expenses** |   |                                      | 1,099,876     |   |                                    |       | 986,092       |     |   |       | 2,188,100     |   |   |   | 1,962,420 |   |
|                                                                 |   |                                      |          |   |                                    |       |          |     |   |       |          |   |   |   |   |   |
| **Income                    from operations**                        |   |                                      | 607,963       |   |                                    |       | 644,850       |     |   |       | 1,335,443     |   |   |   | 1,219,659 |   |
|                                                                 |   |                                      |          |   |                                    |       |          |     |   |       |          |   |   |   |   |   |
| **Other                    income (expense)**                        |   |                                      |          |   |                                    |       |          |     |   |       |          |   |   |   |   |   |
| Interest                    expense                                  |   |                                      | (59,798       | )      |                                    |       | (42,503       | )        |   |       | (111,602      | )      |   |   | (89,244 | ) |
| Gain                    on disposal of property and equipment        |   |                                      | 112           |   |                                    |       | 1,390         |     |   |       | 8,214         |   |   |   | 2,690 |   |
| Other                    income, net                                 |   |                                      | 21,872        |   |                                    |       | 45,663        |     |   |       | 36,092        |   |   |   | 76,240 |   |
|                                                                 |   |                                      |          |   |                                    |       |          |     |   |       |          |   |   |   |   |   |
| Total                    other income (expense)                      |   |                                      | (37,814       | )      |                                    |       | 4,550         |     |   |       | (67,296       | )      |   |   | (10,314 | ) |
|                                                                 |   |                                      |          |   |                                    |       |          |     |   |       |          |   |   |   |   |   |
| **Income                    before provision for income taxes**      |   |                                      |          |   |                                    |       |          |     |   |       |          |   |   |   |   |   |
| **and                    minority interest**                         |   |                                      | 570,149       |   |                                    |       | 649,400       |     |   |       | 1,268,147     |   |   |   | 1,209,345 |   |
| **Provision                    for income taxes**                    |   |                                      | (39,510       | )      |                                    |       | (9,972        | )        |   |       | (95,412       | )      |   |   | (33,836 | ) |
|                                                                 |   |                                      |          |   |                                    |       |          |     |   |       |          |   |   |   |   |   |
| **Income                    before minority interest**               |   |                                      | 530,639       |   |                                    |       | 639,428       |     |   |       | 1,172,735     |   |   |   | 1,175,509 |   |
|                                                                 |   |                                      |          |   |                                    |       |          |     |   |       |          |   |   |   |   |   |
| **Minority                    interest in income of consolidated**   |   |                                      |          |   |                                    |       |          |     |   |       |          |   |   |   |   |   |
| **limited                    liability companies**                   |   |                                      | (169,435      | )      |                                    |       | (89,621       | )        |   |       | (294,420      | )      |   |   | (161,707 | ) |
|                                                                 |   |                                      |          |   |                                    |       |          |     |   |       |          |   |   |   |   |   |
| **Net                    income**                                    |   | **$**                                     | **361,204**   |   |                                    | **$**      | **549,807**   |     |   | **$**      | **878,315**   |   |   | **$** | **1,013,802** |   |
|                                                                 |   |                                      |          |   |                                    |       |          |     |   |       |          |   |   |   |   |   |
| **Basic                    earnings per share**                      |   | **$**                                     | **0.07**      |   |                                    | **$**      | **0.10**      |     |   | **$**      | **0.16**      |   |   | **$** | **0.19** |   |
|                                                                 |   |                                      |          |   |                                    |       |          |     |   |       |          |   |   |   |   |   |
| **Diluted                    earnings per share**                    |   | **$**                                     | **0.06**      |   |                                    | **$**      | **0.09**      |     |   | **$**      | **0.15**      |   |   | **$** | **0.17** |   |
|                                                                 |   |                                      |          |   |                                    |       |          |     |   |       |          |   |   |   |   |   |
| **Basic                    weighted average shares outstanding**     |   | ** **                                | **5,551,558** |   |                                    | ** ** | **5,459,200** |     |   | ** ** | **5,480,253** |   |   | ** ** | **5,456,127** |   |
|                                                                 |   |                                      |          |   |                                    |       |          |     |   |       |          |   |   |   |   |   |
| **Diluted                    weighted-average shares outstanding**   |   | ** **                                | **5,874,849** |   |                                    | ** ** | **5,805,504** |     |   | ** ** | **5,802,259** |   |   | ** ** | **5,802,431** |   |
|                                                                 |   |                                      |          |   |                                    |       |          |     |   |       |          |   |   |   |   |   |

----

| **Emergent                    Group Inc. and Subsidiaries**                                                                                                                                                                                                          |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **Condensed                    Consolidated Statements of Cash Flows**                                                                                                                                                                                               |   |
| **(Unaudited)**                                                                                                                                                                                                                                                      |   |
|                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                 |   | June                    30,    |   |
|                                                                                                                                                                                                                                                                 |   | 2007 |   |   | 2006 |   |
|                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |
| **Cash                    flows from operating activities**                                                                                                                                                                                                          |   |   |   |   |   |   |
|                      Net income                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|  Adjustments                    to reconcile net income to net cash                                                                                                                                                                                             |   | $ | 878,315 |   |   | $ | 1,013,802 |   |
|  provided                    by operating activities:                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| Depreciation                    and amortization                                                                                                                                                                                                                     |   |   | 716,181 |   |   |   | 468,560 |   |
| Amortization                    of finance fees                                                                                                                                                                                                                      |   |   | 23,459 |   |   |   | 35,717 |   |
| (Gain)                    loss on disposal of property and equipment and other                                                                                                                                                                                       |   |   | (8,214 | ) |   |   | (2,690 | ) |
| Provision                    for doubtful accounts                                                                                                                                                                                                                   |   |   | - |   |   |   | 345 |   |
| Minority                    interest in income                                                                                                                                                                                                                       |   |   | 294,420 |   |   |   | 161,707 |   |
| Stock-based                    compensation expense                                                                                                                                                                                                                  |   |   | 53,447 |   |   |   | 38,885 |   |
|  Other                    income                                                                                                                                                                                                                                |   |   | - |   |   |   | (36,638 | ) |
| (Increase)                    decrease in                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Accounts                    receivable                                                                                                                                                                                                                               |   |   | 75,292 |   |   |   | (114,681 | ) |
|  Inventory                                                                                                                                                                                                                                                      |   |   | 359,092 |   |   |   | (37,223 | )  |
| Prepaid                    expenses                                                                                                                                                                                                                                  |   |   | (60,116 | ) |   |   | (70,670 | ) |
| Deposits                    and other assets                                                                                                                                                                                                                         |   |   | 30,281 |   |   |   | (124,851 | ) |
| Increase                    (decrease) in                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Accounts                    payable                                                                                                                                                                                                                                  |   |   | (218,136 | ) |   |   | 222,410 |   |
| Accrued                    expenses                                                                                                                                                                                                                                  |   |   | (84,992 | ) |   |   | (46,425 | ) |
|                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| **Net                    cash provided by operating activities**                                                                                                                                                                                                     |   |   | 2,059,029 |   |   |   | 1,508,248 |   |
|                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| **Cash                    flows from investing activities**                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Purchase                    of property and equipment                                                                                                                                                                                                                |   |   | (173,816 | ) |   |   | (171,574 | ) |
| Cash                    paid to members of limited liability companies                                                                                                                                                                                               |   |   | (314,699 | ) |   |   | (151,606 | ) |
| Contributions                    from new members to limited liability companies                                                                                                                                                                                     |   |   | 15,000 |   |   |   | - |   |
| Proceeds                    from the sale of property and equipment                                                                                                                                                                                                  |   |   | 4,580 |   |   |   | 6,440 |   |
|                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Net                    cash used in investing activities                                                                                                                                                                                                             |   |   | (468,935 | ) |   |   | (316,740 | ) |
|                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| **Cash                    flows from financing activities**                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Payments                    on capital lease obligations                                                                                                                                                                                                             |   |   | (545,802 | ) |   |   | (280,575 | ) |
| Payment                    of dividends on common stock                                                                                                                                                                                                              |   |   | (1,094,249 | ) |   |   | (512,861 | ) |
| Payments                    of loan fees                                                                                                                                                                                                                             |   |   | (10,000 | ) |   |   | - |   |
| Borrowings                    under line of credit                                                                                                                                                                                                                   |   |   | 4,338,000 |   |   |   | 8,043,826 |   |
| Repayments                    on line of credit                                                                                                                                                                                                                      |   |   | (4,338,000 | ) |   |   | (8,043,826 | ) |
| Payments                    on notes payable, net                                                                                                                                                                                                                    |   |   | (182,402 | ) |   |   | (210,871 | ) |
|                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Net                    cash used in financing activities                                                                                                                                                                                                             |   |   | (1,832,453 | ) |   |   | (1,004,307 | ) |
|                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| **Net                    (decrease) increase in cash**                                                                                                                                                                                                               |   |   | (242,359 | ) |   |   | 187,201 |   |
|                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| **Cash,                    beginning of period**                                                                                                                                                                                                                     |   |   | 1,318,612 |   |   |   | 585,377 |   |
|                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| **Cash,                    end of period**                                                                                                                                                                                                                           |   | **$** | **1,076,253** |   |   | **$** | **772,578** |   |
|                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| **Supplemental                    disclosures of cash flow information:**                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|                   Interest                  paid                                                                                                                           |   | **$** | **127,527** |   |   | **$** | **97,061** |   |
|                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Income                    taxes paid                                                                                                                                                                                                                                 |   | **$** | **54,320** |   |   | **$** | **12,000** |   |
|                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| **Supplemental                    schedule of noncash investing and financing                    activities:**                                                                                                                                                       |   |   |   |   |   |
|                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| During                    the six months ended June 30, 2007 and 2006, the Company incurred                    capital                    lease obligations of $1,005,032 and $1,027,416, respectively,                    for medical                    equipment. |   |
|                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |

----

**EMERGENT        GROUP INC and SUBSIDIARIES**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

| **1.** | **BUSINESS** |
|--------|--------------|

| **2.** | **BASIS                  OF PRESENTATION** |
|--------|--------------------------------------------|

*Principles        of Consolidation*

*Use        of Estimates*

*Accounts        Receivable and Concentration of Business and Credit Risks*

*Inventory*

*Reclassifications*

----

*Stock-Based        Compensation*

|                                              |   | Number of                    Shares |    |   | Weighted                    Average Exercise Price |   |
|---------------------------------------------------|--------|------------------------------------------|---------|--------|----------------------------------------------------|--------|
|                                              |   |                                     |    |   |                                               |   |
| Outstanding                    at January 1, 2007 |   |                                     | 398,912 |   |                                               | $      | 1.20 |   |
|                                              |   |                                     |    |   |                                               |   |   |   |
| Options                    Granted                |   |                                     | -       |   |                                               | $      | - |   |
| Options                    Canceled               |   |                                     | (2,000  | )      |                                               | $      | 0.40 |   |
| Options                    Exercised              |   |                                     | (24,402 | )      |                                               | $      | 0.40 |   |
|                                              |   |                                     |    |   |                                               |   |   |   |
| Outstanding                    at June 30, 2007   |   |                                     | 372,510 |   |                                               | $      | 1.25 |   |
|                                              |   |                                     |    |   |                                               |   |   |   |
| Exercisable                    at June 30, 2007   |   |                                     | 290,431 |   |                                               | $      | 1.49 |   |
|                                              |   |                                     |    |   |                                               |   |   |   |

| 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                                   |                                         |          360,661                                                             |                                                           |        278,582                                                             |                                                                      |                 6.15 |   |  years |   |  $0.40 |   |  $0.40 |
|  $2.00                    - 8.00         |                                         |              4,000                                       |                                                           |            4,000                                       |                                                                      |                 5.51 |   |  years |   |  $5.00 |   |  $5.00 |
|  $20.00                    - 51.00       |                                         |              7,844                                       |                                                           |            7,844                                       |                                                                      |                 4.14 |   |  years |   |  $38.41 |   |  $38.41 |
|  $ 162.16                           |                                         |                     5 |                                                           |                   5 |                                                                      |                 1.90 |   |  years |   |  $162.16 |   |  $162.16 |
|                                          |                                         |                                                                                                                      |                                                           |                                                                                                          |                                                                      |   |   |   |   |   |   |   |
|  $ 0.40                    - 162.16 |                                         |          372,510                                                             |                                                           |        290,431                                                             |                                                                      |                 6.10 |   |  years |   |  $1.25 |   |  $1.49 |
|                                          |                                         |                                                                                                                      |                                                           |                                                                                                          |                                                                      |   |   |   |   |   |   |   |

----

|                                           |   |        |    |   | Remaining                           |   |   | Weighted                          |   |
|------------------------------------------------|--------|-------------|---------|--------|-------------------------------------|--------|--------|-----------------------------------|--------|
|                                           |   | Number      |    |   | Contractual                    Life |   |   | Average                           |   |
|                                           |   | Outstanding |    |   | (in                    years)       |   |   | Exercise                    Price |   |
|                                           |   |        |    |   |                                |   |   |                              |   |
| Non                    Vested, January 1, 2007 |   |        | 104,351 |   |                                |   | 8.00   |                              |   | $ | 0.40 |   |
| Granted                                        |   |        | -       |   |                                |   |   |                              |   |   |   |   |
| Forfeited                                      |   |        | -       |   |                                |   |   |                              |   |   |   |   |
| Vested                                         |   |        | 22,272  |   |                                |   |   |                              |   | $ | 0.40 |   |
| Non                    Vested, June 30, 2007   |   |        | 82,079  |   |                                |   | 7.40   |                              |   | $ | 0.40 |   |
|                                           |   |        |    |   |                                |   |   |                              |   |   |   |   |

*Recent        Accounting Pronounments*

*Accounting for        Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109*

*Fair Value Measurements*

----

| **3.** | **DEBT                  OBLIGATIONS** |
|--------|---------------------------------------|

| **4.** | **COMMITMENTS                  AND CONTINGENCIES** |
|--------|----------------------------------------------------|

*Legal        Matters*

| **5.** | **RELATED                  PARTY TRANSACTIONS** |
|--------|-------------------------------------------------|

*Transactions        with BJH Management*

----

| **6.** | **LIMITED                  LIABILITY COMPANIES** |
|--------|--------------------------------------------------|

----

| **Item                  2.** | **Management's                  Discussion and Analysis of Financial Condition and Results of                  Operations** |
|------------------------------|-----------------------------------------------------------------------------------------------------------------------------|

**Forward-Looking        Statements**

**Overview**

**Critical        Accounting Policies**

*Revenue        Recognition*

*Inventory        Valuation*

----

*Property        and Equipment*

**Results        of Operations**

|                                                                 |   | **Three                    Months Ended**                              |      |   | **Six                    Months Ended**                                |   |
|----------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|-----------|--------|---------------------------------------------------------------------------------------|--------|
|                                                                 |   |    **June                    30,**       |      |   |    **June                    30,**       |   |
|                                                                 |   | **2007**                                                                              |      |   | **%**                                                                                 |   |   | **2006** |   |   | **%** |   |   | **2007** |   |   | **%** |   |   | **2006** |   |   | **%** |   |
|                                                                 |   |                                                                                  |      |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Revenue**                                                          |   | $                                                                                     | 4,331,488 |   |                                                                                  |   | 100 | % |   | $ | 3,993,211 |   |   | 100 | % |   | $ | 8,714,296 |   |   |   | 100 | % |   | $ | 7,984,028 |   |   |   | 100 | % |
| **Cost                    of goods sold**                            |   |                                                                                  | 2,623,649 |   |                                                                                  |   | 61 | % |   |   | 2,362,269 |   |   |   | 59 | % |   |   | 5,190,753 |   |   |   | 60 | % |   |   | 4,801,949 |   |   |   | 60 | % |
|                                                                 |   |                                                                                  |      |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Gross                    profit**                                  |   |                                                                                  | 1,707,839 |   |                                                                                  |   | 39 | % |   |   | 1,630,942 |   |   |   | 41 | % |   |   | 3,523,543 |   |   |   | 40 | % |   |   | 3,182,079 |   |   |   | 40 | % |
|                                                                 |   |                                                                                  |      |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Selling,                    general, and administrative expenses** |   |                                                                                  | 1,099,876 |   |                                                                                  |   | 25 | % |   |   | 986,092 |   |   |   | 25 | % |   |   | 2,188,100 |   |   |   | 25 | % |   |   | 1,962,420 |   |   |   | 25 | % |
|                                                                 |   |                                                                                  |      |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income                    from operations**                        |   |                                                                                  | 607,963   |   |                                                                                  |   | 14 | % |   |   | 644,850 |   |   |   | 16 | % |   |   | 1,335,443 |   |   |   | 15 | % |   |   | 1,219,659 |   |   |   | 15 | % |
|                                                                 |   |                                                                                  |      |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Other                    income (expense)**                        |   |                                                                                  | (37,814   | )      |                                                                                  |   | -1 | % |   |   | 4,550 |   |   |   | 0 | % |   |   | (67,296 | ) |   |   | -1 | % |   |   | (10,314 | ) |   |   | 0 | % |
|                                                                 |   |                                                                                  |      |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income                    before provision for income**            |   |                                                                                  |      |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **taxes                    and minority interest**                   |   |                                                                                  | 570,149   |   |                                                                                  |   | 13 | % |   |   | 649,400 |   |   |   | 16 | % |   |   | 1,268,147 |   |   |   | 15 | % |   |   | 1,209,345 |   |   |   | 15 | % |
| **Provision                    for income taxes**                    |   |                                                                                  | (39,510   | )      |                                                                                  |   | -1 | % |   |   | (9,972 | ) |   |   | 0 | % |   |   | (95,412 | ) |   |   | -1 | % |   |   | (33,836 | ) |   |   | 0 | % |
|                                                                 |   |                                                                                  |      |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                    income before minority interest**           |   |                                                                                  | 530,639   |   |                                                                                  |   | 12 | % |   |   | 639,428 |   |   |   | 16 | % |   |   | 1,172,735 |   |   |   | 13 | % |   |   | 1,175,509 |   |   |   | 15 | % |
|                                                                 |   |                                                                                  |      |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Minority                    interest in income of consolidated**   |   |                                                                                  |      |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **limited                    liability companies**                   |   |                                                                                  | (169,435  | )      |                                                                                  |   | -4 | % |   |   | (89,621 | ) |   |   | -2 | % |   |   | (294,420 | ) |   |   | -3 | % |   |   | (161,707 | ) |   |   | -2 | % |
| **Net                    income**                                    |   | $                                                                                     | 361,204   |   |                                                                                  |   | 8 | % |   | $ | 549,807 |   |   |   | 14 | % |   | $ | 878,315 |   |   |   | 10 | % |   | $ | 1,013,802 |   |   |   | 13 | % |
|                                                                 |   |                                                                                  |      |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 |   |                                                                                  |      |   |                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

**Comparison        of the Three Months Ended June 30, 2007 to June 30, 2006**

----

**Comparison        of the Six Months Ended June 30, 2007 to June 30, 2006**

----

**Liquidity        and Capital Resources**

----

**Item        3. Controls and Procedures**

**PART        II.  OTHER INFORMATION**

| **Item                  1.    ** | **Legal                  Proceedings** |
|------------------------------------------------------|----------------------------------------|

| **Item                  2.  ** | **Changes                  in Securities** |
|------------------------------------------|--------------------------------------------|

| (a)   | In                  the second quarter ended June 30, 2007, there were no sales of                  unregistered securities. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Rule                  463 of the Securities Act is not applicable to the                  Company. |
|-----------------|----------------------------------------------------------------------------------------------------|

| (c)   | In                  the second quarter ended June 30, 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** |
|------------------------------------------|--------------------------------------------------------------------------------------------|

| **Item                  5.  ** | **Other                  Information** |
|------------------------------------------|----------------------------------------|

| **Item                  6. ** | **Exhibits** |
|------------------------------------|--------------|

| 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* |
|------|---------------------------------|

----

**SIGNATURES**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | **EMERGENT                GROUP                INC.** |                                                  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                  |                                                  |   |
| Date:                  August 13,                  2007                                                                            | By:                                                   | /s/ Bruce                J. Haber                |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                  | Bruce                J. Haber,                        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                  | Chairman                  and Chief Executive Officer |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                  |                                                  |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                       |   |
| Date:                  August 13,                  2007                                                                                      | By:    | /s/ William                M. McKay                   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | William                M. McKay,                           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |  Chief                Financial Officer and Secretary |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                       |   |