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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-QSB
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2006
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the transition period from            to
 Commission File Number 1-9043
 B.H.I.T. INC.
 (Exact name of Registrant as specified in its charter)
 Delaware
    
    36-3361229(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)
 6950 South Edgerton Road, Brecksville, Ohio
    
    44141(Address of principal executive offices)
    
    (Zip Code)(440) 838-4700Registrants telephone number, including area code
 þ o
 þ o
 14,988,051 o þ




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B.H.I.T. INC.
 
  PAGEPART I FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTSBalance Sheets as of June 30, 2006 (unaudited)
and December 31, 2005
    
    
    3Statements of Operations for the
three months ended June 30, 2006 and 2005 (unaudited)
    
    
    4Statements of Operations for the
six months ended June 30, 2006 and 2005 (unaudited)
    
    
    5Statement of Stockholders Equity for the
six months ended June 30, 2006 (unaudited)
    
    
    6Statements of Cash Flows for the
six months ended June 30, 2006 and 2005 (unaudited)
    
    
    7Notes to Financial Statements (unaudited)
    
    
    8ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITIONS AND RESULTS OF OPERATIONS
    
    
    9-10ITEM 3. CONTROLS AND PROCEDURES
    
    
    10PART II OTHER INFORMATIONITEM 1. LEGAL PROCEEDINGS
    
    
    11ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
    
    
    11SIGNATURES
    
    
    12EX-31.1EX-31.2EX-32
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B.H.I.T. INC.
 
  
  
 Balance Sheets
 June 30, 2006
    
    
    December 31, 2005(Unaudited)ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    1,437,190
    
    
    $
    1,466,353Interest receivable on cash and cash equivalents
    
    
    6,746
    
    
    
    5,615Total Current Assets
    
    $
    1,443,936
    
    
    $
    1,471,968LIABILITIES AND STOCKHOLDERS EQUITYCURRENT LIABILITIESAccounts payable and other accrued expenses
    
    $
    31,781
    
    
    $
    31,108STOCKHOLDERS EQUITYShares of Common Stock, $0.01 par value,
20,000,000 shares authorized, 15,020,808 shares
issued at June 30, 2006
and December 31, 2005
    
    
    88,060,847
    
    
    
    88,060,847Accumulated deficit
    
    
    (86,640,503
    )
    
    
    (86,611,798
    )Treasury stock, at cost, for 32,757 shares
of Common Stock
    
    
    (8,189
    )
    
    
    (8,189
    )Total Stockholders Equity
    
    
    1,412,155
    
    
    
    1,440,860Total Liabilities and Stockholders Equity
    
    $
    1,443,936
    
    
    $
    1,471,968
 See accompanying notes to the Financial Statements.
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B.H.I.T. INC.
 
 Statements of Operations
 For the Three Months Ended June 30, 2006 and 2005
  2006
    
    
    2005REVENUEInterest earned on cash and cash equivalents
    
    $
    17,919
    
    
    $
    11,289EXPENSESGeneral and administrative
    
    
    30,414
    
    
    
    29,273NET LOSS
    
    ($
    12,495
    )
    
    ($
    17,984
    )Basic and diluted net loss per share of Common
Stock (based on weighted average number of
shares outstanding of 14,988,051 in 2006 and 2005)
    
    ($
    0.001
    )
    
    ($
    0.001
    )
 See accompanying notes to the Financial Statements.
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B.H.I.T. INC.
 
 Statements of Operations
 For the Six Months Ended June 30, 2006 and 2005
  2006
    
    
    2005REVENUEInterest earned on cash and cash equivalents
    
    $
    34,515
    
    
    $
    20,625EXPENSESGeneral and administrative
    
    
    63,220
    
    
    
    62,843NET LOSS
    
    ($
    28,705
    )
    
    ($
    42,218
    )Basic and diluted net loss per share of Common
Stock (based on weighted average number of
shares outstanding of 14,988,051 in 2006 and 2005)
    
    ($
    0.002
    )
    
    ($
    0.003
    )
 See accompanying notes to the Financial Statements.
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B.H.I.T. INC.
 
 Statement of Stockholders Equity
 For the Six Months Ended June 30, 2006
 Common StockShares
    
    
    
    
    
    
    Accumulated
    
    
    Treasury StockIssued
    
    
    Amount
    
    
    Deficit
    
    
    Shares
    
    
    Amount
    
    
    TotalStockholders equity
December 31, 2005
    
    
    15,020,808
    
    
    $
    88,060,847
    
    
    ($
    86,611,798
    )
    
    
    32,757
    
    
    ($
    8,189
    )
    
    $
    1,440,860Net loss for the six months
ended June 30, 2006
    
    
    
    
    
    
    
    
    
    
    (28,705
    )
    
    
    
    
    
    
    
    
    
    
    (28,705
    )Stockholders equity (unaudited)June 30, 2006
    
    
    15,020,808
    
    
    $
    88,060,847
    
    
    ($
    86,640,503
    )
    
    
    32,757
    
    
    ($
    8,189
    )
    
    $
    1,412,155
 See accompanying notes to the Financial Statements.
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B.H.I.T. INC.
 
 Statements of Cash Flows
 For the Six Months Ended June 30, 2006 and 2005
  2006
    
    
    2005Operating Activities:Net Loss
    
    ($
    28,705
    )
    
    ($
    42,218
    )Adjustments to reconcile net loss to net cash
used in operating activities:Changes in assets and liabilities:Interest receivable on cash and cash equivalents
    
    
    (1,131
    )
    
    
    (701
    )Prepaid insurance and miscellaneous expenses
    
    
    
    
    
    
    3,415Accounts payable and accrued expenses
    
    
    673
    
    
    
    (1,336
    )Net cash used in operating activities
    
    
    (29,163
    )
    
    
    (40,840
    )Cash and cash equivalents at beginning of period
    
    
    1,466,353
    
    
    
    1,536,596Cash and cash equivalents at end of period
    
    $
    1,437,190
    
    
    $
    1,495,756
 See accompanying notes to the Financial Statements.
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B.H.I.T. INC.
 
 NOTES TO FINANCIAL STATEMENTS
 (Unaudited)
 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Basis of Presentation
      New Accounting Pronouncements
 Accounting for Uncertainty in Income Taxes Accounting for Income Taxes
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B.H.I.T. INC.
 
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B.H.I.T. INC
           
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B.H.I.T. INC.
 
  
   
  (a)
    
    EXHIBITSEXHIBIT 31.1 Certification of the Chief Executive Officer Pursuant to Rule
13a-14(a) of the Exchange ActEXHIBIT 31.2 Certification of the Chief Financial Officer Pursuant to Rule
13a-14(a) of the Exchange ActEXHIBIT 32 Certification Pursuant to 18 U.S.C. Section 1350(b)
    
    REPORTS ON FORM 8-KNONE
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SIGNATURES
   By:
    
    /s/ John V. CurciJohn V. Curci
    
    
    
    Date: August 11, 2006Vice-President, Treasurer & Chief Financial OfficerPrincipal Accounting Officer
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