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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 March 31, 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.
  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) 838-4700  Registrants telephone number, including area code
 þ o
 þ o
 14,988,051
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B.H.I.T. INC.
 
  PAGEPART I FINANCIAL INFORMATIONITEM 1. Financial StatementsBalance Sheets as of March 31, 2006 (unaudited)
and December 31, 2005
    
    
    3Statements of Operations for the
three months ended March 31, 2006 and 2005 (unaudited)
    
    
    4Statement of Stockholders Equity for the
three months ended March 31, 2006 (unaudited)
    
    
    5Statements of Cash Flows for the
three months ended March 31, 2006 and 2005 (unaudited)
    
    
    6Notes to Financial Statements (unaudited)
    
    
    7ITEM 2. Managements Discussion and Analysis of Financial Condition
and Results of Operations
    
    
    7-9ITEM 3. Controls and Procedures
    
    
    9PART II OTHER INFORMATIONITEM 1. Legal Proceedings
    
    
    10ITEM 6. Exhibits and Reports on Form 8-K
    
    
    10SIGNATURES
    
    
    11
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B.H.I.T. INC.
 Part I  FINANCIAL INFORMATION
 Balance Sheets
 March 31, 2006
    
    
    December 31, 2005(Unaudited)ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    1,456,416
    
    
    $
    1,466,353Interest receivable on cash and cash equivalents
    
    
    6,054
    
    
    
    5,615Total Current Assets
    
    $
    1,462,470
    
    
    $
    1,471,968LIABILITIES AND STOCKHOLDERS EQUITYCURRENT LIABILITIESAccounts payable and other accrued expenses
    
    $
    37,820
    
    
    $
    31,108STOCKHOLDERS EQUITYShares of Common Stock, $0.01 par value,
20,000,000 shares authorized, 15,020,808 shares
issued at March 31, 2006
and December 31, 2005
    
    
    88,060,847
    
    
    
    88,060,847Accumulated deficit
    
    
    (86,628,008
    )
    
    
    (86,611,798
    )Treasury stock, at cost, for 32,757 shares
of Common Stock
    
    
    (8,189
    )
    
    
    (8,189
    )Total Stockholders Equity
    
    
    1,424,650
    
    
    
    1,440,860Total Liabilities and Stockholders Equity
    
    $
    1,462,470
    
    
    $
    1,471,968
 See accompanying notes to the Financial Statements.
 3




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##### 



B.H.I.T. INC.
 Statements of Operations
For the Three Months Ended March 31, 2006 and 2005
 2006
    
    
    2005REVENUEInterest earned on cash and cash equivalents
    
    $
    16,596
    
    
    $
    9,336EXPENSESGeneral and administrative
    
    
    32,806
    
    
    
    33,570NET LOSS
    
    ($
    16,210
    )
    
    ($
    24,234
    )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
    )
    
    ($
    0.002
    )
 See accompanying notes to the Financial Statements.
 4




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##### 



B.H.I.T. INC.
 Statement of Stockholders Equity
For the Three Months Ended March 31, 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 three months
ended March 31, 2006
    
    
    
    
    
    
    
    
    
    
    (16,210
    )
    
    
    
    
    
    
    
    
    
    
    (16,210
    )Stockholders equity (unaudited)
March 31, 2006
    
    
    15,020,808
    
    
    $
    88,060,847
    
    
    
    ($86,628,008
    )
    
    
    32,757
    
    
    
    ($8,189
    )
    
    $
    1,424,650
 See accompanying notes to the Financial Statements.
 5




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##### 



B.H.I.T. INC.
 Statements of Cash Flows
For the Three Months Ended March 31, 2006 and 2005
 2006
    
    
    2005Operating Activities:Net Loss
    
    ($
    16,210
    )
    
    ($
    24,234
    )Adjustments to reconcile net loss to net cash
used in operating activities:Changes in assets and liabilities:Interest receivable on cash and cash equivalents
    
    
    (439
    )
    
    
    (290
    )Prepaid insurance and miscellaneous expenses
    
    
    
    
    
    
    101Accounts payable and accrued expenses
    
    
    6,712
    
    
    
    (1,027
    )Net cash used in operating activities
    
    
    (9,937
    )
    
    
    (25,450
    )Cash and cash equivalents at beginning of period
    
    
    1,466,353
    
    
    
    1,536,596Cash and cash equivalents at end of period
    
    $
    1,456,416
    
    
    $
    1,511,146
 See accompanying notes to the Financial Statements.
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B.H.I.T. INC.
 NOTES TO FINANCIAL STATEMENTS
 (Unaudited)
 BASIS OF PRESENTATION
      ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS
AND RESULTS OF OPERATIONS
   7




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B.H.I.T. INC.
 ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS
AND RESULTS OF OPERATIONS (Continued)
        8




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B.H.I.T. INC
          ITEM 3.
    
    CONTROLS AND PROCEDURES
  9




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B.H.I.T. INC.
  ITEM 1.
    
    LEGAL PROCEEDINGS
  ITEM 6.
    
    EXHIBITS AND REPORTS ON FORM 8-K
 (a)
    
    EXHIBITS
    (b)
    
    REPORTS ON FORM 8-K
  10




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SIGNATURES
   By:
    
    /s/ John V. Curci

John V. Curci
    
    
    
    Date:  May 12, 2006Vice-President, Treasurer & Chief Financial OfficerPrincipal Accounting Officer
 11