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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

| þ | Quarterly                report under Section 13 or 15(d) of the Securities Exchange Act of                1934 |
|--------|-----------------------------------------------------------------------------------------------------------------|

**      September 30, 2007**

| o | Transition                report under Section 13 or 15(d) of the Exchange                Act |
|---|-----------------------------------------------------------------------------------------------|

**1-9043**

| **B.H.I.T.                Inc.**                                                                |
|-------------------------------------------------------------------------------------------------|
| (Exact                name of small business issuer as specified in its                charter) |
|                                                                                            |
| **Delaware**                                                                                    |   | **36-3361229** |
| (State                of incorporation)                                                         |   | (I.R.S.                Employer Identification No.) |
|                                                                                            |
| **7005                Stadium Drive, Suite 100, Brecksville, Ohio                44141**        |
| (Address                of principal executive offices)                                         |
|                                                                                            |
| **212-895-3526**                                                                                |
| (Issuer’s                telephone number)                                                |

**24,988,051      shares of common stock, $0.01 par value per share, as of November 9,      2007.**

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**Table      of Contents**

| Part              I — Financial Information |                                                                        | 1      |
|---------------------------------------------------|-----------------------------------------------------------------------------|--------|
|                                              |                                                                        |   |   |
| Item                1.                            | Financial                Statements                                         |   | 1 |
|                                              |                                                                        |   |   |
| Item                2.                            | Management’s                Discussion and Analysis                   |   | 1 |
|                                              |                                                                        |   |   |
|                                              | Our                History                                                  |   | 1 |
|                                              |                                                                        |   |   |
|                                              | Forward                Looking Statements                                   |   | 1 |
|                                              |                                                                        |   |   |
|                                              | Results                of Operations                                        |   | 2 |
|                                              |                                                                        |   |   |
|                                              | Comparison                of Nine Months Ended September 30, 2007 and 2006  |   | 2 |
|                                              |                                                                        |   |   |
|                                              | Comparison                of Three Months Ended September 30, 2007 and 2006 |   | 2 |
|                                              |                                                                        |   |   |
|                                              | Financial                Condition and Liquidity                            |   | 3 |
|                                              |                                                                        |   |   |
|                                              | Off-Balance                Sheet Arrangements                               |   | 3 |
|                                              |                                                                        |   |   |
|                                              | How                to Learn More About BHIT                                 |   | 3 |
|                                              |                                                                        |   |   |
| Item                3.                            | Controls                and Procedures                                      |   | 3 |
|                                              |                                                                        |   |
| Part              II — Other Information    |                                                                        | 3      |
|                                              |                                                                        |   |   |
| Item                1.                            | Legal                Proceedings                                            |   | 3 |
|                                              |                                                                        |   |   |
| Item                2.                            | Unregistered                Sales of Equity Securities and Use of Proceeds  |   | 3 |
|                                              |                                                                        |   |   |
| Item                3.                            | Defaults                Upon Senior Securities                              |   | 4 |
|                                              |                                                                        |   |   |
| Item                4.                            | Submission                of Matters to a Vote of Security Holders          |   | 4 |
|                                              |                                                                        |   |   |
| Item                5.                            | Other                Information                                            |   | 4 |
|                                              |                                                                        |   |   |
| Item                6.                            | Exhibits                                                                    |   | 4 |
|                                              |                                                                        |   |   |
| Signatures                                        |                                                                        | 5      |

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**Part      I — Financial Information**

**Item      1.**
**Financial      Statements**

**Item      2.**
**Management’s      Discussion and Analysis**

**Our      History**

**Forward      Looking Statements**

| · | our                ability to execute our business plan by identifying and acquiring                an                operating company; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

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| · | our                ability to effectively invest our existing funds and raise additional                capital to fund our operations; and |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

| · | our                ability to comply with SEC regulations and filing requirements applicable                to us as a public company. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

**Results      of Operations**

*Comparison      of Nine Months Ended September 30, 2007 and 2006*

*Comparison      of Three Months Ended September 30, 2007 and 2006*

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**Financial      Condition and Liquidity**

**Off-Balance      Sheet Arrangements**

**How      to Learn More About **
**BHIT**

**Item      3.**
**Controls      and Procedures**

**Part      II — Other Information**

**Item      1.**
**Legal      Proceedings**

**Item      2.**
**Unregistered      Sales of Equity Securities and Use of Proceeds**

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**Item      3.**
**Defaults      Upon Senior Securities**

**Item      4.**
**Submission      of Matters to a Vote of Security Holders**

**Item      5.**
**Other      Information**

**Item      6.**
**Exhibits**

| 31.1 | Rule                13a-14(a)/15d-14(a) Certification of Principal Executive Officer                Pursuant                to § 302 of the Sarbanes-Oxley Act of                2002 |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 | Rule                13a-14(a)/15d-14(a) Certification of Principal Financial Officer                Pursuant                to § 302 of the Sarbanes-Oxley Act of                2002 |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32 | Rule                13a-14(b)/15d-14(b) Certification Pursuant to § 906 of the Sarbanes-Oxley                Act of 2002 |
|----|-------------------------------------------------------------------------------------------------------------------------------|

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**Signatures**

|                                 |                                    |                                         |
|--------------------------------------|-----------------------------------------|----------------------------------------------|
|                                 | B.H.I.T.              Inc.              |
|                            |                               |                                    |
| Date:              November 13, 2007 | By                       | /s/              Paul              S. Dennis |
|                                 | Paul S. Dennis, Chief Financial Officer |
|                                 |                                         |

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| **B.H.I.T.                  Inc.**                                                   |
|--------------------------------------------------------------------------------------|
|                                                                                 |   |   |   |   |   |
| **Balance                  Sheets**                                                  |
| **As                  of September 30, 2007 and December 31,                  2006** |

|                                                                                                              |   | **September                  30, 2007** |        | **December                  31, 2006** |   |
|-------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|-------------|----------------------------------------|--------|
|                                                                                                                   |   | (Unaudited)                             |        |                                   |   |
| **ASSETS**                                                                                                        |
| **Current                  Assets**                                                                               |   |                                    |        |                                   |   |
| Cash                  and cash equivalents                                                                        |   | $                                       | 2,356,701   |                                   | $      | 1,420,313 |   |
| Interest                  receivable on cash and cash equivalents                                                 |   |                                    | 958         |                                   |   | 5,640 |   |
| Prepaid                  insurance                                                                                |   |                                    | 18,382      |                                   |   | 14,026 |   |
|                                                                                                              |   |                                    |        |                                   |   |   |   |
| Total                  Current Assets                                                                             |   | $                                       | 2,376,041   |                                   | $      | 1,439,979 |   |
|                                                                                                              |   |                                    |        |                                   |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                         |
|                                                                                                              |   |                                    |        |                                   |   |   |   |
| **Current                  Liabilities**                                                                          |   |                                    |        |                                   |   |   |   |
|                                                                                                              |   |                                    |        |                                   |   |   |   |
| Accounts                  payable and other accrued expenses                                                      |   | $                                       | 13,386      |                                   | $      | 47,646 |   |
|                                                                                                              |   |                                    |        |                                   |   |   |   |
| **Stockholders'                  Equity**                                                                         |   |                                    |        |                                   |   |   |   |
|                                                                                                              |   |                                    |        |                                   |   |   |   |
| Shares                  of Common Stock, $0.01 par value,                                                         |   |                                    |        |                                   |   |   |   |
| 75,000,000                  shares authorized and 25,020,808 shares issued at September 30,                  2007 |   |                                    |        |                                   |   |   |   |
| and                  20,000,000 authorized and 15,020,808 issued at December 31,                  2006            |   |                                    | 89,240,847  |                                   |   | 88,060,847 |   |
|                                                                                                              |   |                                    |        |                                   |   |   |   |
| Accumulated                  deficit                                                                              |   |                                    | (86,870,003 | )                                      |   | (86,660,325 | ) |
|                                                                                                              |   |                                    |        |                                   |   |   |   |
| Treasury                  stock, at cost, for 32,757 shares of Common Stock                                       |   |                                    | (8,189      | )                                      |   | (8,189 | ) |
|                                                                                                              |   |                                    |        |                                   |   |   |   |
| Total                  Stockholders' Equity                                                                       |   |                                    | 2,362,655   |                                   |   | 1,392,333 |   |
|                                                                                                              |   |                                    |        |                                   |   |   |   |
| Total                  Liabilities and Stockholders' Equity                                                       |   | $                                       | 2,376,041   |                                   | $      | 1,439,979 |   |

*See        accompanying notes to the Financial Statements.*

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| **B.H.I.T.                  Inc.**                                                                    |
|-------------------------------------------------------------------------------------------------------|
|                                                                                                  |   |   |   |   |   |   |   |   |   |
| **Statements                  of Operations**                                                         |
| **For                  the Three and Nine Months Ended September 30, 2007 and                  2006** |
| (Unaudited)                                                                                           |
|                                                                                                  |
|                                                                                                  |   | **Three                  Months** |   | **Nine                  Months** |   |
|                                                                                                  |   | **2007** |   | **2006** |   | **2007** |   | **2006** |   |
|                                                                                                  |   |   |   |   |   |   |   |   |   |
| **Revenue**                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  earned on cash and cash equivalents                                         |   | $ | 25,820 |   | $ | 19,023 |   | $ | 56,468 |   | $ | 53,538 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Expenses**                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General                  and Administrative                                                           |   |   | 34,281 |   |   | 28,872 |   |   | 86,146 |   |   | 92,092 |   |
| Stock                  based compensation                                                             |   |   | — |   |   | — |   |   | 180,000 |   |   | — |   |
| Total                  Expenses                                                                       |   |   | 34,281 |   |   | 28,872 |   |   | 266,146 |   |   | 92,092 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                  Loss**                                                                         |   | $ | (8,461 | ) | $ | (9,849 | ) | $ | (209,678 | ) | $ | (38,554 | ) |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                  average number of shares outstanding                                        |   |   | 24,988,051 |   |   | 14,988,051 |   |   | 19,200,505 |   |   | 14,988,051 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                  and diluted net loss per share of Common Stock                                 |   | $ | (0.0003 | ) | $ | (0.001 | ) | $ | (0.011 | ) | $ | (0.003 | ) |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| *See                  accompanying notes to the Financial                  Statements.*               |

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| **B.H.I.T.                  Inc.**                                                                                      |
|-------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                    |   |   |   |   |   |
| **Statements                  of Cash Flows**                                                                           |
| **For                  the Nine Months Ended September 30, 2007 and                  2006**                             |
| (Unaudited)                                                                                                             |
|                                                                                                                    |   |   |   |   |   |
|                                                                                                                    |   | **2007** |   | **2006** |   |
|                                                                                                                    |   |   |   |   |   |
| **Operating                  Activities**                                                                               |   |   |   |   |   |
| Net                  Loss                                                                                               |   | $ | (209,678 | ) | $ | (38,554 | ) |
|                                                                                                                    |   |   |   |   |   |   |   |
| ** **Adjustments                  to reconcile net loss to net cash used in operating                  activities: |   |   |   |   |   |   |   |
|                                                                                                                    |   |   |   |   |   |   |   |
| Stock                  based compensation                                                                               |   |   | 180,000 |   |   | — |   |
|                                                                                                                    |   |   |   |   |   |   |   |
| Changes                  in assets and liabilities:                                                                     |   |   |   |   |   |   |   |
| Interest                  receivable on cash and cash equivalents                                                       |   |   | 4,682 |   |   | (852 | ) |
| Prepaid                  insurance and miscellaneous expenses                                                           |   |   | (4,356 | ) |   | — |   |
| Accounts                  payable and accrued expenses                                                                  |   |   | (34,260 | ) |   | (697 | ) |
|                                                                                                                    |   |   |   |   |   |   |   |
| Net                  cash used in operations                                                                            |   |   | (63,612 | ) |   | (40,103 | ) |
|                                                                                                                    |   |   |   |   |   |   |   |
| **Financing                  Activities**                                                                               |   |   |   |   |   |   |   |
| Proceeds                  from sale of common stock                                                                     |   |   | 1,000,000 |   |   | — |   |
|                                                                                                                    |   |   |   |   |   |   |   |
| Net                  cash from financing                                                                                |   |   | 1,000,000 |   |   | — |   |
|                                                                                                                    |   |   |   |   |   |   |   |
| Net                  increase (decrease) in cash                                                                        |   | $ | 936,388 |   | $ | (40,103 | ) |
|                                                                                                                    |   |   |   |   |   |   |   |
| Cash                  and cash equivalents at beginning of period                                                       |   | $ | 1,420,313 |   | $ | 1,466,353 |   |
|                                                                                                                    |   |   |   |   |   |   |   |
| Cash                  and cash equivalents at end of period                                                             |   | $ | 2,356,701 |   | $ | 1,426,250 |   |
|                                                                                                                    |   |   |   |   |   |   |   |
| *See                  accompanying notes to the Financial                  Statements.*                                 |

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**B.H.I.T.      Inc.**

**Notes      to Financial Statements**

**Basis      of Presentation**

**Stock      Based Compensation**

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| Discount                interest rate |   |   | 4.5   | %      |
|---------------------------------------|--------|--------|-------|--------|
| Expected                life (years)  |   |   | 3     |   |
| Expected                volatility    |   |   | 81.07 | %      |
| Dividend                yield         |   |   | 0     |   |

**Adoption      of New Accounting Standard**

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