U.S.
      SECURITIES AND EXCHANGE COMMISSION


Washington,
      D.C. 20549





FORM
      10-Q





(Mark
      One)


x QUARTERLY
      REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
      1934




For
      the
      quarterly period ended June 30, 2008





 ̈  TRANSITION
      REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT





For
      the
      transition period from ___________ to ___________





Commission
      file number: 000-29087





Datascension,
      Inc.


(Exact
      name of registrant as specified in its charter)





Nevada
            
            87-0374623(State
                or other jurisdiction of
            
            (IRS
                Employerincorporation
                or organization)
            
            Identification
                No.)





407
                W Imperial Hwy, Suite 314, Brea, CA
            
            92821(Address
                of principal executive offices)
            
            (Zip
                Code)





888-996-9238


(Issuer's
      telephone number)








(Former
      name, former address and former fiscal year,


if
      changed since last report)





Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Exchange Act during the past 12 months (or for such shorter period
      that the registrant was required to file such reports), and (2) has been subject
      to such filing requirements for the past 90 days.





Yes  ̈  No  ̈





Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, a non-accelerated filer, or a smaller reporting company.
      See
      the definitions of “large accelerated filer,” “accelerated filer” and “smaller
      reporting company” in Rule 12b-2 of the Exchange Act.





Large
                accelerated filer ̈
            
            Accelerated
                filer ̈Non-accelerated
                filer ̈
            (Do
                not check if a smaller reporting company)
            Smaller
                reporting companyx





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act).


Yes
 ̈No x





APPLICABLE
      ONLY TO ISSUERS INVOLVED IN BANKRUPTCY


PROCEEDING
      DURING THE PRECEDING FIVE YEARS





Check
      whether the Registrant filed all documents and reports required to be filed
      by
      Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities
      under a plan confirmed by a court.


Yes  ̈  No  ̈





APPLICABLE
      ONLY TO CORPORATE ISSUERS





The
      Registrant has 21,307,361 shares outstanding, par value $.001 per share as
      of
      August 11, 2008. The Registrant has 508,500 shares of Preferred Stock Series
      B
      issued and outstanding as of August 11, 2008. The Registrant has 15,000 shares
      of Preferred Stock Series C issued and outstanding as of August 11 ,
      2008.







TABLE
      OF
      CONTENTS





Page
              No.PART
                I.
            FINANCIAL
                INFORMATION
            3Item
                1.
            Financial
                Statements
            3Balance
                Sheet (unaudited)
            4Statements
                of Operations (unaudited)
            5Statements
                of Cash Flows (unaudited)
            6Notes
                to Financial Statements
            7Item
                2.
            Management's
                Discussion and Analysis of Plan of Operation
            17Item
                3.
            Quantitative
                and Qualitative Disclosures About Market Risk
            22Item
                4T.
            Controls
                and Procedures
            22PART
                II.
            OTHER
                INFORMATION
            22Item
                1.
            Legal
                Proceedings
            22Item
                2.
            Unregistered
                Sales of Equity and Use of Proceeds
            22Item
                3.
            Defaults
                upon Senior Securities
            22Item
                4.
            Submission
                of Matters to a Vote of Security Holders
            22Item
                5.
            Other
                Information
            22Item
                6.
            Exhibits
                and Reports on Form 8-K
            23Signatures
            23




2


PART
      I.
      FINANCIAL INFORMATION





Item
      1.
      Financial Statements.





The
      condensed financial statements of Datascension, Inc., a Nevada corporation
      ("DSEN") included herein have been prepared in accordance with the instructions
      to quarterly reports on Form 10-Q pursuant to the rules and regulations of
      the
      Securities and Exchange Commission. Certain information and footnote data
      necessary for fair presentation of financial position and results of operations
      in conformity with accounting principles generally accepted in the United States
      of America have been condensed or omitted. It is therefore suggested that these
      financial statements be read in conjunction with the summary of significant
      accounting policies and notes to financial statements included in DSEN's Annual
      Report on Form 10-KSB for the year ended December 31, 2007.





In
      the
      opinion of management, all adjustments necessary in order to make the financial
      position, results of operations and changes in financial position at June 30,
      2008, and for all periods presented not misleading have been made. The results
      of operations for the period ended June 30, 2008 are not necessarily an
      indication of operating results to be expected for the full year ending December
      31, 2008.


3


**DATASCENSION,
      INC.**


**CONDENSED
      CONSOLIDATED BALANCE SHEET**





DATASCENSION,
      INC.


BALANCE
      SHEET





UNAUDITED
            
            AUDITED06/30/2008
            
            12/31/2007**ASSETS**Current
                assetsCash
            
            $
            25,672
            
            $
            46,930Accounts
                receivable
            
            
            2,729,667
            
            
            3,071,764Receivable
                due from related party
            
            
            1,496,560
            
            
            1,530,124Prepaid
                expenses
            
            
            60,877
            
            
            56,666Total
                current assets
            
            
            4,312,776
            
            
            4,705,484Property
                and equipment, net of depreciation
            
            
            3,077,824
            
            
            3,146,788Other
                assetsWebsite,
                net of amortization
            
            
            3,207
            
            
            3,207Deposits
            
            
            22,264
            
            
            15,618Goodwill
            
            
            1,692,782
            
            
            1,692,782Total
                other assets
            
            
            1,718,253
            
            
            1,711,607Total
                assets
            
            
            9,108,853
            
            $
            9,563,879**LIABILITIES
                AND STOCKHOLDERS' EQUITY**Current
                liabilitiesAccounts
                payable
            
            $
            338,378
            
            $
            316,333Accrued
                expenses
            
            
            481,010
            
            
            491,603Short
                term notes payable
            
            
            30,845
            
            
            35,499Loan
                payable to Comerica Bank
            
            
            1,741,372
            
            
            1,727,688Current
                portion of long term debt
            
            
            123,150
            
            
            3,580,816Total
                current liabilities
            
            
            2,714,755
            
            
            6,151,939Long
                term debtLong
                term debt notes payable, net of current portion
            
            
            3,595,409
            
            
            45,977Total
                long-term liabilities
            
            
            3,595,409
            
            
            45,977Total
                liabilities
            
            
            6,310,164
            
            
            6,197,916Stockholders'
                equityCommon
                stock, $0.001 par value, 200,000,000 shares authorized: 36,307,361
                and
                35,775,972 issued and outstanding at June 30, 2008 and December 31,
                2007
                respectively
            
            
            36,307
            
            
            35,776Additional
                paid in capital
            
            
            16,361,757
            
            
            16,188,782Series
                B Preferred stock
            
            
            506
            
            
            506Additional
                paid in capital preferred Series B
            
            
            481,994
            
            
            481,994Less:
                Treasury stock (95,833 shares), at cost
            
            
            (134,388
            )
            
            (134,388
            )Accumulated
                deficit
            
            
            (13,947,487
            )
            
            (13,206,707
            )Total
                stockholders' equity
            
            
            2,798,689
            
            
            3,365,963Total
                liabilities and stockholders' equity
            
            
            9,108,853
            
            $
            9,563,879





The
      accompanying notes to the financial statements should be read in conjunction
      with the above financial statements.


4


**DATASCENSION,
      INC.**


**CONDENSED
      CONSOLIDATED STATEMENTS OF OPERATIONS**


**(UNAUDITED)**




**DATASCENSION,
      INC.**


**CONSOLIDATED
      STATEMENT OF OPERATIONS**


(UNAUDITED)





**For the**
            
            **For the**
            
            **For the**
            
            **For the****3 months**
            
            **3 months**
            
            **6 months**
            
            **6 months****ended**
            
            **ended**
            
            **ended**
            
            **ended****6/30/2008**
            
            **6/30/2007**
            
            **6/30/2008**
            
            **6/30/2007****Revenues**
            
            $
            4,691,116
            
            $
            4,888,821
            
            $
            10,039,103
            
            $
            9,642,694**Cost
                of goods sold**
            
            
            4,413,487
            
            
            3,605,947
            
            
            8,879,642
            
            
            7,900,129**Gross
                profit**
            
            
            277,629
            
            
            1,282,874
            
            
            1,159,461
            
            
            1,742,565**Expenses:**Selling,
                general and administrative
            
            
            670,328
            
            
            570,602
            
            
            1,351,176
            
            
            1,115,655Depreciation
                and amortization
            
            
            60,419
            
            
            51,617
            
            
            120,878
            
            
            103,122**Total
                expenses**
            
            
            730,747
            
            
            622,219
            
            
            1,472,054
            
            
            1,218,777**Operating
                Income**
            
            
            (453,118
            )
            
            660,655
            
            
            (312,593
            )
            
            523,788**Other
                income(expense):**Interest
                expense
            
            
            (220,773
            )
            
            (340,998
            )
            
            (428,188
            )
            
            (514,707
            )**Total
                other income (expense)**
            
            
            (220,773
            )
            
            (340,998
            )
            
            (428,188
            )
            
            (514,707
            )**Net
                Income (loss)**
            
            $
            (673,891
            )
            $
            319,657
            
            $
            (740,781
            )
            $
            9,081**Basic
                weighted average number of common shares
                outstanding**
            
            
            36,257,251
            
            
            24,829,907
            
            
            36,137,808
            
            
            23,558,280**Diluted
                weighted average number of common shares
                outstanding**
            
            
            36,257,251
            
            
            32,269,739
            
            
            36,137,808
            
            
            42,346,042Basic
                net loss per share
            
            $
            (0.02
            )
            $
            0.01
            
            $
            (0.02
            )
            $
            0.00Diluted
                net loss per share
            
            $
            (0.02
            )
            $
            0.01
            
            $
            (0.02
            )
            $
            0.00




The
      accompanying notes to the financial statements should be read in conjunction
      with the above financial statements.


5


**DATASCENSION,
      INC.**


**CONDENSED
      CONSOLIDATED STATEMENTS OF CASH FLOWS**


**(UNAUDITED)**





**DATASCENSION,
      INC.**


**CONSOLIDATED
      STATEMENT OF CASH FLOWS**


**(UNAUDITED)**





**For the**
            
            **For the****6 months ended**
            
            **6 months ended****6/30/2008**
            
            **6/30/2007****Cash flows from
                operating activities**Net
                income (loss)
            
            $
            (740,781
            )
            $
            9,081Adjustments
                to reconcile net loss to net cash provided by operating
                activitiesIssued
                (canceled) for services and debt
            
            
            -
            
            
            23,800Depreciation
                and amortization
            
            
            120,878
            
            
            103,121(Increase)
                decrease in accounts receivable
            
            
            342,097
            
            
            (781,394
            )(Increase)
                decrease in receivable due from related party
            
            
            33,564
            
            
            -(Increase)
                decrease in prepaid expenses
            
            
            (4,211
            )
            
            (405,185
            )(Increase)
                decrease in deposits
            
            
            (6,646
            )
            
            25,000Increase
                (decrease) in accounts payable
            
            
            22,045
            
            
            101,964Increase
                (decrease) in accrued expenses
            
            
            (10,593
            )
            
            261,421**Net
                cash used by operating activities**
            
            
            (243,647
            )
            
            (662,192
            )**Cash
                flows from investing activities**Purchase
                of property and equipment
            
            
            (51,914
            )
            
            (29,964
            )**Net
                cash used by investing activities**
            
            
            (51,914
            )
            
            (29,964
            )**Cash
                flows from financing activities**Increase
                (decrease) in notes payable
            
            
            87,111
            
            
            400,682Increase
                (decrease) in loan payable to Comerica Bank
            
            
            13,684
            
            
            -Issuance
                of common stock
            
            
            173,508
            
            
            -**Net
                cash provided by financing activities**
            
            
            274,303
            
            
            400,682**Net
                increase (decrease) in cash**
            
            
            (21,258
            )
            
            (291,474
            )**Cash,
                beginning balance**
            
            
            46,930
            
            
            592,289**Cash,
                ending balance**
            
            $
            25,672
            
            $
            300,815**Interest
                paid**
            
            $
            81,908
            
            $
            23,898Taxes
                paid
            
            $
            800
            
            $
            -**Supplemental
                disclosure of non-cash transactions**Debt
                converted to equity
            
            $
            77,807
            
            $
            60,000





The
      accompanying notes to the financial statements should be read in conjunction
      with the above financial statements.


6


DATASCENSION,
      INC.


NOTES
      TO
      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS





NOTES
      TO
      CONSOLIDATED FINANCIAL STATEMENTS





Note
      1 -
      HISTORY AND ORGANIZATION OF THE COMPANY





Datascension,
      Inc. (formerly known as Nutek, Inc.) was incorporated in August 1991 under
      the
      laws of the State of Nevada as Nutek, Inc. (the "Company") and is engaged in
      the
      market research industry.





Datascension
      International, Inc. and related assets were purchased on September 27, 2001
      for
      $2,200,000 using company shares at fair market value. Datascension
      International, Inc. is a data solutions company representing a unique expertise
      in the collecting, storage, processing, and interpretation of data. During
      2002,
      Datascension International, Inc. expanded operations into Costa
      Rica.





NOTE
      2 -
      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES





Basis
      of
      Accounting





The
      Company's policy is to prepare the financial statements on the accrual basis
      of
      accounting. The fiscal year end is December 31.





In
      the
      opinion of management, all adjustments necessary in order to make the financial
      position, results of operations and changes in financial position at December
      31, 2007, and for all periods presented not misleading have been made.





Cash
      and
      Cash Equivalents





Cash
      and
      cash equivalents consist of highly liquid investments with maturities of three
      months or less when purchased.





Investments
      and Marketable Securities





The
      Company has adopted FASB No. 115. Equity securities are classified as available
      for sale and reported at fair value.





Investments
      are recorded at the lower of cost or market. Any reductions in market value
      below cost are shown as unrealized losses in the consolidated statement of
      operations.





Consolidation
      Policy





The
      accompanying consolidated financial statements include the accounts of
      Datascension, Inc. and Datascension International, Inc. All significant inter-
      company balances and transactions have been eliminated.





Use
      of
      Estimates





The
      preparation of financial statements in conformity with generally accepted
      accounting principles requires that management make estimates and assumptions
      which affect the reported amounts of assets and liabilities as of the date
      of
      the financial statements and revenues and expenses for the period reported.
      Actual results may differ from these estimates.


7


Comprehensive
      Income





Statements
      of Financial Accounting Standards No. 130, Reporting Comprehensive Income (SFAS
      130), requires that total comprehensive income be reported in the financial
      statements. The Company does not have any items considered to be other
      comprehensive income for the year ended December 31, 2007.





Fixed
      Assets





Fixed
      assets are stated at cost. Expenditures that materially increase the life of
      the
      assets are capitalized. Ordinary maintenance and repairs are charged to expense
      as incurred. When assets are sold or otherwise disposed of, the cost and the
      related accumulated depreciation and amortization are removed from the accounts
      and any resulting gain or loss is recognized at that time.





Depreciation
      is computed primarily on the straight-line method for financial statement
      purposes over the following estimated useful lives:





Computer
                equipment
            5
                yearsFurniture
                and fixtures
            7
                yearsOffice
                equipment
            5
                years





All
      assets are booked at historical purchase price and there is no variance between
      book value and the purchase price.





Revenue
      Recognition





We
      recognize revenues when survey data is completed in accordance with the terms
      of
      our agreements. Research products are delivered within a short period, generally
      ranging from a few days to approximately eight weeks. We do not believe that
      there are realistic alternatives to our revenue recognition policy given the
      short period of service delivery and the requirement to deliver completed
      surveys to our customers. We do not believe there is significant risk of
      recognizing revenue prematurely since our contracts are standardized, the
      earnings process is short and no single project accounts for a significant
      portion of our revenue.





Intangible
      Assets





The
      Company has adopted SFAS No. 142, "Goodwill and Other Intangible Assets", which
      requires that goodwill and other indefinite lived intangible assets are no
      longer amortized, but reviewed annually, or sooner if deemed necessary, for
      impairment. Intangible assets with finite lives are amortized over the useful
      life. Under guidance from SFAS No. 142, management has determined that the
      assets in the subsidiaries determined to be discontinued operations should
      be
      impaired. The respective assets have been written down. See Note 13 Discontinued
      Operations.





Net
      Income (Loss) Per Share





Basic
      net
      income (loss) per share is computed using the weighted average number of shares
      of common stock outstanding for the period end. The net income (loss) for the
      period end is divided by the weighted average number of shares outstanding
      for
      that period to arrive a net income per share.





Diluted
      net income (loss) per share reflects the potential dilution that could occur
      if
      the securities or other contracts to issue common stock were exercised or
      converted into common stock.





Compensated
      Absences





The
      Company has made no accrual for vacation or sick pay because the


Company
      does not provide for these benefits.


8


Advertising





Advertising
      costs are expensed when incurred. Advertising for the year ended December 31,
      2007 amounted to $9,000 and for the six months ended June 30, 2008 amounted
      to $
      24,838.





Research
      and Development





The
      Company expenses its research and development in the periods
      incurred.





Concentrations
      of Credit Risk





Credit
      risk represents the accounting loss that would be recognized at the reporting
      date if counter parties failed completely to perform as contracted.
      Concentrations of credit risk (whether on or off balance sheet) that arise
      from
      financial instruments exist for groups of customers or counter parties when
      they
      have similar economic characteristics that would cause their ability to meet
      contractual obligations to be similarly affected by changes in economic or
      other
      conditions described below.





The
      Company operates in one segment, the market research industry. Over 90% of
      the
      Company's customers are located either in the United States of America or
      Canada.





During
      the year ended December 31, 2007, the Company had three major clients,
      Ipsos-Reid (21.2%), Orbis (10.6%), and Synovate (8.3%). During the six months
      ended June 30, 2008, the Company had ten major clients, which accounted for
      (75.5%) of the company’s business.. Management believes the loss of one of these
      clients would affect the operations of the company in the short
      term.





Recently
      Issued Accounting Pronouncements





In
      September 2006, the FASB issued SFAS No. 157, “Fair Value
      Measurements” (“SFAS No. 157”). SFAS No. 157 defines fair value,
      establishes a framework for measuring fair value and expands disclosures about
      fair value measurements. SFAS No. 157 is effective for financial statements
      issued for fiscal years beginning after November 15, 2007. However, on February
      12, 2008, the FASB issued FASB Staff Position (FSP) No. FAS 157-2, “Effective
      Date of FASB Statement No. 157,” (“FSP No. 157-2”), which delays the effective
      date of SFAS No. 157 for nonfinancial assets and nonfinancial liabilities,
      except for items that are recognized or disclosed at fair value in the financial
      statements on a recurring basis (at least annually). FSP No. 157-2 defers the
      effective date of SFAS No. 157 to fiscal years beginning after November 15,
      2008, and interim periods within those fiscal years for items within scope
      of
      FSP No. 157-2. The Company does not believe that the adoption of SFAS No. 157
      will have a material impact on its condensed consolidated financial
      statements.





On
      December 12, 2007, Emerging Issues Task Force (“EITF”) No. 07-01,
      "Accounting for Collaborative Arrangements Related to the Development and
      Commercialization of Intellectual Property," ("EITF No. 07-01"), was
      issued. EITF No. 07-01 prescribes the accounting for collaborations. It requires
      certain transactions between collaborators to be recorded in the income
      statement on either a gross or net basis within expenses when certain
      characteristics exist in the collaboration relationship. EITF No. 07-01 is
      effective for the Company's collaborations existing after January 1, 2009.
      The Company is currently evaluating the impact this standard will have on its
      condensed consolidated financial statements.





In
      December 2007, the FASB issued SFAS No. 141 (revised 2007), “Business
      Combinations,” (“SFAS No. 141(R)”), which replaces FASB Statement
      No. 141. SFAS No. 141(R) establishes principles and requirements
      for how an acquirer recognizes and measures in its financial statements the
      identifiable assets acquired, the liabilities assumed, any non-controlling
      interest in the acquiree, the goodwill acquired and the expenses incurred in
      connection with the acquisition. SFAS No. 141(R) also establishes
      disclosure requirements to enable the evaluation of the nature and financial
      effects of the business combination. SFAS No. 141(R) is effective for
      fiscal years beginning after December 15, 2008. Earlier adoption is not
      permitted. As a result, the Company will apply the provisions of SFAS
      No. 141(R) prospectively to business combinations that close on or after
      January 1, 2009. The Company is currently evaluating the impact, if any,
      the adoption of SFAS No. 141(R) may have on its condensed consolidated
      financial statements.


9


In
      December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in
      Consolidated Financials Statements, an Amendment of ARB No. 51” (“SFAS No.
      160”). SFAS No. 160 clarifies the accounting for noncontrolling interests and
      establishes accounting and reporting standards for the noncontrolling interest
      in a subsidiary, including classification as a component of equity. SFAS No.
      160
      is effective for fiscal years beginning after December 15, 2008. The
      Company is currently evaluating the impact that adopting SFAS No. 160 will
      have
      on its condensed consolidated financial statements.





In
      March
      2008, the FASB issued SFAS No. 161, “Disclosures about Derivative
      Instruments and Hedging Activities — An Amendment of FASB Statement
      No. 133” (“SFAS No. 161”), which amends and expands the
      disclosure requirements of SFAS No. 133, “Accounting for Derivative
      Instruments and Hedging Activities” to require qualitative disclosure about
      objectives and strategies in using derivatives, quantitative disclosures about
      fair value amounts of gains and losses on derivative instruments, and
      disclosures about the underlying credit-risk-related contingent features in
      derivative agreements. SFAS No. 161 is intended to improve financial
      reporting by requiring transparency about the location and amounts of derivative
      instruments in an entity’s financial statements; how derivative instruments and
      related hedged items are accounted for under SFAS No. 133; and how
      derivative instruments and related hedged items affect its financial position,
      financial performance and cash flows. SFAS No. 161 is effective for
      financial statements issued for fiscal years beginning after November 15,
      2008. The Company is currently evaluating the potential impact, if any, the
      adoption of SFAS No. 161 may have on its condensed consolidated
      financial statements.





Accounts
      Receivable





Accounts
      receivable are stated at the amount management expects to collect from
      outstanding balances. Management provides for probable uncollectible amounts
      through a charge to earnings and a credit to a valuation allowance based on
      its
      assessment of the current status of individual accounts. Balances outstanding
      after management has used reasonable collection efforts are written off through
      a charge to the valuation allowance and a credit to trade accounts receivable.
      Changes in the valuation allowance have not been material to the financial
      statements.





Stock
      Based Compensation





The
      Company applies SFAS 123R in accounting for stock options issued to employees.
      For stock options and warrants issued to non-employees, the Company applies
      SFAS
      No. 123, Accounting for Stock-Based Compensation, which requires the recognition
      of compensation cost based upon the fair value of stock options at the grant
      date using the Black-Scholes option pricing model.





NOTE
      3 -
      PROPERTY AND EQUIPMENT





Property
      and equipment are made up of the following as of June 30, 2008:





Computer
                equipment
            
            $
            957,715Office
                equipment
            
            
            1,088,544Leasehold
                Improvements
            
            
            2,004,285Software
                licenses
            
            
            231,4984,282,042Less
                accumulated depreciation and amortization
            
            
            1,204,218$
            3,077,824




10


NOTE
      4 -
      NOTES PAYABLE





Since
      November 2004, the company had entered into several different convertible debt
      agreements, the most recent being December 12, 2006. In past funding
      arrangements, the specific terms of the funding arrangements contained certain
      covenants and liquidated damages which were deemed to make the notes be debt
      be
      considered non-conventional. Such treatment required a valuation of all
      derivative items of the notes, which created a liability on the balance sheets,
      coupled with a liability for the value of any warrants that were outstanding
      at
      the balance sheet date. The December 2006 note settled all prior interest,
      liquidated damages and other perceived "negative" items that were tainting
      the
      debt. The latter note also served to amend and limit the liabilities, so as
      to
      satisfy the EITF 00-27 requirements and end the requirement of the company
      to
      have the derivative accounting treatment. Below is a summary of the major terms
      of the notes outstanding as of June 30, 2008.





Upon
      the
      entering into of the December 2006 transaction, the company removed all of
      the
      prior derivative liability portions of the convertible debt, as all clauses
      had
      been removed from the debts and agreements. This resulted in an expense to
      remove the debt discounts that were previously being accreted, as well as the
      financing costs being accreted over the remaining term. Concurrently, there
      was
      an income item reports for a corresponding write off of the liabilities
      associated with derivatives and the warrant liabilities on the books.





NOTES
      PAYABLE - $1,875,000, NOVEMBER 2004





In
      November 2004, the Company issued $1,875,000 in principal amount of Notes to
      third parties. As part of the financing transaction, the Company issued warrants
      to purchase 3,125,000 shares of common stock at a per share purchase price
      of
      $0.30 per share.





The
      Notes
      accrue interest at a rate of prime + 3% per annum. The Notes are due and payable
      in November 2007. The convertible note and warrant documents were filed in
      an
      8-K by the Company on November 23, 2004. The Note was entered into pursuant
      to
      the terms of a subscription agreement between the Company and the Holder, which
      was also included in the 8-K filed on November 23, 2004. The $1,875,000 in
      proceeds from the financing transaction were originally allocated to the debt
      features and to the warrants based upon their fair values. After the latter
      allocations, there was $170,061 of remaining value to be allocated to the Note
      on the financial statements. The debt discount was being accreted using the
      effective interest method over the term of the note.





In
      2007,
      6,559,919 shares were issued to settle $2,055,065 of principal and interest on
      the convertible notes. An additional 2,841,667 shares were issued to satisfy
      outstanding warrants.





As
      of
      June 30, 2008, the unpaid principal amount due on the remaining note to Alpha
      Capital Anstalt is $157,500. The note holder has extended the due date of this
      note to June, 2009. There is accrued and unpaid interest of
      $41,679.





NOTES
      PAYABLE - $2,274,288, JUNE 2006





In
      June
      2006, the Company issued two notes to third parties. One note had a principal
      amount of $1,702,859 and the other note had a principal amount of $571,429.
      As
      part of the financing transaction, the Company issued warrants to purchase
      4,865,311 shares of common stock at a per share purchase price of $0.40 per
      share.





The
      Notes
      accrue interest at a rate of 6% per annum. Interest is to be paid quarterly.
      Should the interest payment be in default then the interest rate increases
      to
      10%. The Notes are due and payable in June 2008. After a thorough review of
      the
      terms of the note and respective covenants, the company has determined the
      more
      conservative method of including the entire debt as a current liability on
      the
      balance sheet. The convertible note and warrant documents were filed in an
      8-K
      by the Company on June 16, 2006. The Note was entered into pursuant to the
      terms
      of a subscription agreement between the Company and the Holder, which was also
      included in the 8-K filed on June 16, 2006. The $1,702,859 in proceeds from
      the
      financing transaction were allocated to the debt features and to the warrants
      based upon their fair values. After the latter allocations, there was $318,796
      of remaining value to be allocated to the Note on the financial statements.
      The
      debt discount was being accreted using the effective interest method over the
      term of the note.


11


In
      December, 2007, accrued interest of $25,753 was added to the note due the
      Longview Fund LP increasing the principal amount of the note to
      $1,728,612.





The
      note
      holders have extended the due date of the notes to June, 2009.





As
      of
      June 30, 2008, both notes are unpaid and there is $168,511 of accrued
      interest.





NOTES
      PAYABLE - $2,065,458, DECEMBER 2006





In
      December 2006, the Company issued $2,065,458 in principal amount of Notes to
      third parties. As part of the financing transaction, the Company issued warrants
      to purchase 1,280,000 warrants were issued to the note holders of the December
      2006 notes with a 5 year term and a $0.45 exercise price. In 2007, the note
      holder converted some debt and interest into shares of stock along with the
      exercise of the warrants which were attached to the note.





The
      Notes
      accrue interest at a rate 14% per annum. The Notes are due and payable in
      December 2008. The note and warrant documents were filed in an 8-K by the
      Company on December 18, 2006. This note is not convertible into common stock
      of
      the company. Upon issuance, the company allocated $1,867,328 to the debt and
      $198,130 to the warrants based on the relative fair values of each. The value
      of
      the warrants was determined using a 56% volatility, five year terms, and a
      $0.45
      exercise price. The debt discount of $198,130 will be amortized over the two
      year term of the notes.





The
      note
      holders have extended the due date of the notes to June, 2009





In
      December, 2007 accrued interest of $40,685 was added to the note due the
      Longview Fund LP increasing the amount of the note at December 31, 2007 to
      $1,193,643. The remaining note in the amount of $571,429 is due to Alpha Capital
      Anstalt.





There
      is
      $168,028 of accrued interest outstanding at June 30, 2008.





In
      December, 2007, the Company issued a Secured Promissory Note to Alpha Capital
      Anstalt in the amount of $103,665 at an interest rate of 14% per annum. This
      note was for interest and penalties that had accrued previously.


The
      interest rate on this note has increased to the 18% default rate..





At
      June
      30, 2008, this note is unpaid and there is $23,419 of accrued
      interest.





OTHER
      NOTES





The
      Company had entered into long-term notes payable. These notes have been paid
      down to the current balances due within the next twelve months.





Note
      payable to a lender, monthly payments of $10,044 inclusive of 15.00% annual
      interest through May 2009. At June 30, 2008 the balance due was $102,634.





Note
      payable to a lender, monthly payments of $2,424 inclusive of 15.00% annual
      interest through March, 2009. At June 30, 2008 the balance due was
      $20,616.





Total
                Current portion of Notes Payable
            
            $
            123,150


Principal
      maturities are as follows:




Twelve months ended December 31, 2008
            
            $
            67,662Twelve
                months ended December 31, 2009
            
            
            56,488$
            123,150


12




Additionally,
      the company has the following short term notes payable as of June 30,
      2008.





Wells
                Fargo Bank
            
            $
            30,845,





NOTE
      5 -
      STOCKHOLDERS' EQUITY





In
      the
      six months ended June 30, 2008, 221,389 shares were issued to the Longview
      Fund,
      LP for past due interest, 200,000 shares were issued for services rendered
      that
      had been accrued at 12/31/2007 and 30,000 shares were issued to Bob Sandelman,
      a
      former director for services rendered as a director. In May, 2008, 80,000 shares
      were issued in settlement of contract entered into for professional services..





NOTE
      6 -
      RELATED PARTY TRANSACTIONS





As
      of
      June 30, 2008, Longview Fund, L.P. owned 49.9% of the issued and outstanding
      common stock of the Company. Due to this stock ownership, the Company is
      controlled by Longview Fund, L.P. and is deemed a “controlled corporation”. As
      of July 30, 2008, due to the exchange of 15,000,000 shares of the Company’s
      Common Stock, into shares of Series C Preferred Stock, which holds two votes
      per
      share when voting alongside the Common Stock of the Company, Longview Fund
      controls 64.5% voting control of the Company. See Note 4 for a description
      of
      promissory notes of the Company issued to Longview Fund, L.P. and Note 9 for
      a
      further description of the Series C Preferred Stock.





Longview
      Fund, L.P. may take actions that conflict with the interests of other
      shareholders. Due to the 64.5% ownership of voting control, Longview Fund,
      L.P.
      has substantial control over the Company and has substantial power to elect
      directors and to generally approve all actions requiring the approval of the
      holders of the Company’s voting stock. See Note 4 above for a discussion of
      certain promissory notes due by the Company to Longview Fund, L.P.





The
      Company has a receivable due from Datascension, S.A. in the amount of
      $1,496,560, which is prepayment for various operating expenses. Datascension
      S.A. is controlled by Scott Kincer but will be merged into
      Datascension, Inc. during 2008. The reason for the delay in merger until 2008
      was to avoid a potential tax liability of 30% to Datascension, Inc. had the
      companies merged during 2007, when Datascension, S.A. had anticipated a possible
      profit from operations (which did not materialize), which could have triggered
      the tax liability to Datascension, Inc. in Costa Rica.





During
      the six months ended June 30, 2008, the company billed approximately $770,465
      to
      Sandelman & Associates, a company controlled by a board member, which
      amounted to 7.7% of total revenue for the period.





NOTE
      7 -
      FOREIGN OPERATIONS





The
      company currently operates out of Costa Rica. Management does not feel there
      is
      a currency risk or need to assess a foreign currency translation adjustment
      or
      other comprehensive income item as income and expense items are negotiated
      in
      the US dollar. The Company maintains their accountings records in U.S. dollars
      and all payments are made in US dollars. All debts and assets on the books
      of
      the company are valued based on US dollars and are not translated from a foreign
      currency amount. The Company currently coordinates all foreign operations,
      and
      supervision activities using part time employees, consultants and contract
      labor. Approximately 99% of the company's workforce is outside of the United
      States. Currently approximately 90% of the company's clients are US based
      companies. Any resulting foreign exchange fluctuations do not affect the payment
      of employees, contract labor or off shore operations.


13


NOTE
      8 – CREDIT AGREEMENT





On
      September 6, 2007, Datascension, Inc. (the “Company”), as borrower, entered into
      a Credit Agreement with Comerica Bank, as lender (dated as of August 30, 2007),
      which provides for a revolving credit facility of up to $2,000,000. The Credit
      Agreement provides for a one year term, and outstanding balances bear interest
      at the rate equal to the prime rate (as determined by Comerica Bank from time
      to
      time) plus two percent (2%). Under the Credit Agreement, the Company may borrow
      funds from Comerica Bank from time to time in an amount equal to 85% of eligible
      receivables (as set forth in the Credit Agreement), and all advances under
      the
      Credit Agreement are secured by a first lien against all of the assets of
      Datascension, Inc. and its subsidiary, Datascension, Inc. (a California
      corporation), as well as a pledge of the stock of the subsidiary. As of June
      30,
      2008, the amount due under the Credit Agreement was $1,741,372. The Company
      is
      in default of certain covenants under the Credit Agreement at June 30, 2008,
      and
      is in the process of seeking an alternative lender with which to refinance
      this
      credit facility.




NOTE
      9 – SUBSEQUENT EVENTS





*Resignation
      of Director and Appointment of New Directors*





On
      July
      18, 2008, Robert Sandelman resigned as a Director of Registrant.





On
      July
      18, 2008, Registrant’s Board of Directors appointed Stanley Hirschman and Lou
      Persico as Directors. The appointments are effective as of August 1,
      2008.





Stan
      Hirschman is President of CPointe Associates, Inc., a Plano, Texas executive
      management and retail operations consulting firm. He is an investment due
      diligence specialist and works regularly with public companies dealing with
      the
      difficulties of the balance between increased regulatory requirements and
      reasonable corporate governance. He is a director of Axion Power International
      and South Texas Oil and former chairman of Mustang Software, Inc. While at
      Mustang Software, Mr. Hirschman took a hands-on role in the planning and
      execution of the strategic initiative to increase shareholder value resulting
      in
      the successful acquisition of the company by Quintus Corporation.





His
      client list has included GameStop, Nortel, SBC Wireless (now AT&T), Dalrada
      Financial Corp., Oxford Media Corporation, Earthlink, Inc., Aiirmesh
      Communications, Bravo Foods International and Retail Highway. Prior to
      establishing CPointe Associates, he was Vice President Operations, Software
      Etc., Inc., a 396 retail store software chain, from 1989 to 1996. He also has
      held senior executive management positions with T.J. Maxx, Gap Stores and Banana
      Republic.




Mr.
      Hirschman is a member of the National Association of Corporate Directors and
      the
      KPMG Audit Committee Institute and is a graduate of the Harvard Business School
      Audit Committees in the New Era of Governance symposium. He is active in
      community affairs and serves on the Advisory Board of the Salvation Army Adult
      Rehabilitation Centers.





Lou
      Persico, MBA, CPA has over 25 years of financial and operational experience
      in
      private and public corporations. Persico began his career in public accounting
      and subsequently, he was employed by a series of “Fortune 100 Companies”
beginning with American Cyanamid/Wyeth Pharmaceuticals where he held the roles
      of controller and finance director for almost 10 years operating at overseas
      locations in Madrid, Spain, San Juan, Puerto Rico and Rio de Janeiro, Brazil.





Persico
      continued his tenure with other “Blue Chip” companies in a natural succession of
      increasingly responsible senior financial positions at The PerkinElmer Co.,
      Pearle Vision, Technicolor, Sara Lee, Cambridge Technology Partners and Arthur
      D. Little as CFO. However, for the past 7 years Persico’s focus has been with
      venture-backed start-up companies as CFO (the lead investor being Insight
      Venture Partners, a $3 billion private equity firm). At a large public
      enterprise, Cambridge Technology Partners (CATP), Persico was instrumental
      in
      building out the global infrastructure of the company from $200M to nearly
      $700M
      in worldwide revenue.


14


Persico
      earned at Pace University, New York City, a combined BBA/MBA with a
      concentration in finance and accounting. He has graduated from the Executive
      Programs at the Harvard Business School and Columbia Business School, and he
      is
      multilingual (Spanish and Portuguese). Persico is an avid health and fitness
      enthusiast and is a certified fitness trainer.





Messrs.
      Hirschman and Persico shall be compensated for service as nonmanagement
      directors as follows:





One
      Thousand Dollars ($1,000) per month;


One
      Thousand Dollars ($1,000) per day for attendance at Board meetings and other
      meetings in Costa Rica; and


One
      Hundred Thousand (100,000) options to purchase Common Stock of the Registrant,
      with a per share strike price equal to the market price on the date of grant,
      with twenty five thousand (25,000) options to vest on each of the 90 th ,
      180 th ,
      270 th and
      360 th day
      after the grant date.




*Series
      C Preferred Stock*





On
      July
      25, 2008, the Registrant filed a Certificate of Designation with the Secretary
      of State of the State of Nevada authorizing a series of preferred stock, under
      its articles of incorporation, known as “Series C Preferred Stock”. This
      Certificate of Designation was approved by the Registrant’s Board of Directors.
      The Certificate of Designation sets forth the following terms for the Series
      C
      Preferred Stock:





Authorized
                Shares:
            1,000Per
                Share Stated Value:
            $15,000Liquidation
                Preference:
            Per
                share Stated ValueConversion
                Price into Common Stock:
            $.30
                per share, as adjusted from time to time as set forth in the Certificate
                of DesignationVoting
                Rights:
            The
                Series C Preferred Shares shall vote along with the Common Stock
                on an as
                converted basis and shall have two votes per
                share




On
      July
      25, 2008, the Registrant entered into an agreement with Longview Fund, pursuant
      to which the Longview Fund exchanged 15,000,000 shares of its Common Stock
      for
      receipt of 1,000 shares of its Series C Preferred Stock.





*Extension
      of Maturity Dates of Certain Notes*





On
      or
      about August 12, 2008, Longview Fund, L.P. extended the maturity date of its
      promissory notes due from the Company and issued in June 2006 and December
      2006
      to January 15, 2010, and Alpha Capital Anstalt extended the maturity date of
      its
      promissory notes due from the Company and issued in November 2004, June 2006
      and
      December 2006 to January 15, 2010. A further discussion of these notes is set
      forth in Note 4 above.





*Events
      of Default Under Credit Agreement*





On
      July
      29, 2008, the Issuer received a letter from Comerica Bank, its senior secured
      lender, regarding covenant non-compliance for the period ending June 30, 2008.
      According to the letter, which references the August 30, 2007 Credit Agreement
      between the Issuer and Comerica Bank, Comerica Bank put the Issuer on notice
      that it has acknowledged that certain Defaults or Events of Default occurred
      as
      of June 30, 2008.


15


The
      letter concludes to state that at the time thereof the Bank was not taking
      action to enforce its rights, but that decision would not in any way be
      construed as a waiver of the Bank’s rights and remedies and was not an agreement
      to forbear from exercising its rights and remedies. Among rights and remedies
      available to Comerica Bank are acceleration of all amounts due under the Credit
      Agreement by Issuer to the Bank and foreclosure on the collateral securing
      the
      Loan, which is secured by a senior secured lien on all of the Issuer’s and its
      subsidiary’s assets.


16


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





The
      following is a discussion of certain factors affecting DSEN's results of
      operations, liquidity and capital resources. You should read the following
      discussion and analysis in conjunction with the Registrant's condensed
      consolidated financial statements and related notes that are included herein
      under Item 1 above.





Overview





Datascension
      Inc, ("DSEN"), through its sole subsidiary Datascension International, Inc.,
      is
      engaged in data gathering and conducting outsourced market research. Its
      expertise is in the collection, storage, and processing of data. Datascension
      International's management team has over 30 years of experience in working
      with
      clients to gather the information they need to make changes or advancements
      to
      their operations. Datascension International services a variety of industries
      and customers (including the hospitality, entertainment, and automotive sectors)
      with emphasis and commitment to customer service, quality assurance and on-time
      project management.





Critical
      Accounting Policies and Estimates





Our
      discussion and analysis of financial condition and results of operations is
      based upon our financial statements, which have been prepared in accordance
      with
      accounting principles generally accepted in the United States of America. The
      preparation of these financial statements requires us to make estimates and
      judgments that affect the reported amounts of assets, liabilities, revenue
      and
      expenses, and related disclosure of contingent assets and liabilities. On an
      ongoing basis, we evaluate our estimates. We base our estimates on historical
      experience and on various other assumptions that we believe to be reasonable
      under the circumstances. These estimates and assumptions provide a basis for
      making judgments about the carrying values of assets and liabilities that are
      not readily apparent from other sources. Actual results may differ from these
      estimates under different assumptions or conditions, and these differences
      may
      be material.





We
      believe the following critical accounting policies affect its more significant
      judgments and estimates used in the preparation of its consolidated financial
      statements.





Foreign
      Currency





DSEN
      maintains its accounting records in U.S. dollars and all payments are made
      in US
      dollars. Any resulting foreign exchange fluctuations do not affect the payment
      of employees, contract labor or off shore operations.





Revenue
      Recognition.





We
      recognize revenues as the survey data is collected for the client in accordance
      with the terms of our agreements. Research products are delivered within a
      short
      period, generally ranging from a few days to approximately eight weeks. An
      appropriate deferral is made for direct costs related to contracts in process,
      and no revenue is recognized until delivery of the data has taken place.
      Billings rendered in advance of services being performed, as well as customer
      deposits received in advance, are recorded as a current liability included
      in
      deferred revenue. We are required to estimate contract losses, if any, and
      provide for such losses in the period they are determined and estimable. We
      do
      not believe that there are realistic alternatives to our revenue recognition
      policy given the short period of service delivery and the requirement to deliver
      completed surveys to our customers. We do not believe there is significant
      risk
      of recognizing revenue short and no single project accounts for a significant
      portion of our revenue.





Basis
      of
      Accounting





The
      Company's policy is to prepare the financial statements on the accrual basis
      of
      accounting. The Company's year end is December 31.


17


In
      the
      opinion of management, all adjustments necessary in order to make the financial
      position, results of operations and changes in financial position at June 30,
      2008, and for all periods presented not misleading have been made. The results
      of operations for the period ended June 30, 2008 are not necessarily an
      indication of operating results to be expected for the full year ending December
      31, 2007.





Recently
      issued accounting standards





In
      February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for
      Financial Assets and Financial Liabilities." This Statement permits entities
      to
      choose to measure many financial instruments and certain other items at fair
      value that are not currently required to be measured at fair value. The
      objective is to improve financial reporting by providing entities with the
      opportunity to mitigate volatility in earnings caused by measuring related
      assets and liabilities differently without having to apply complex hedge
      accounting provisions. This Statement also establishes presentation and
      disclosure requirements designed to facilitate comparisons between entities
      that
      choose different measurement attributes for similar types of assets and
      liabilities. This Statement is effective for financial statements issued for
      fiscal years beginning after November 15, 2007. The Company does not believe
      the
      adoption of SFAS No. 159 will have an impact upon on our financial statements
      and footnote disclosures.





DSEN's
      website address is http://www.datascension.com.





Results
      of Operations





Analysis
      of the six months ended June 30, 2008 compared to the six months ended June
      30,
      2007.





For
      the
      six-months, ended June 30, 2008, DSEN has generated $10,039,103 in revenues
      compared to $9,642,694 in revenues for the six-months ended June 30, 2007,
      for
      an increase of $396,409. The increase in revenue is a result of an increase
      in
      new clients, along with an increase in hours billed and hourly billing
      rates.





Cost
      of
      goods sold for the six-months ended June 30, 2008 was $8,879,642 compared to
      $7,900,129 for the six-months ended June 30, 2007 or an increase of $979,513.
      This increase was due to an increase in hourly personnel , telephone costs
      and
      other costs related to outsourcing work to other companies due to the increase
      in business..





Total
      general and administrative expenses increased to $1,351,176 for the six-months
      ended June 30, 2008 from $1,115,655 for the six-months ended June 30, 2007,
      or
      an increase of $235,521. The increase is partially due to the hiring of a
      fulltime CFO and a salesperson to market inbound services. Both employees
      started January 1, 2008. The hiring of these two individuals along with
      additional marketing to clients in the US has increased all expenses related
      to
      travel between the US and Costa Rica.





Depreciation
      expense for the six-months ended June 30, 2008 was $120,878 compared to $103,122
      for the six-months ended June 30, 2007, or an increase of $17,756.





Interest
      expense for the six months ended June 30, 2008 was $428,188 compared to $515,707
      for the six-months ended June 30, 2007 a decrease of $86,519. This decrease
      is
      due to the conversion of debt held by Longview Fund LP into stock in June,
      2007.





Datascension
      generated a net loss of $740,781 for the six-months ended June 30, 2008, versus
      a net profit of 9,081 for the same period in 2007. The difference of $749,862
      is
      primarily a result of the increase of $979,513 in cost of goods sold. For the
      six-months ended June 30, 2008, DSEN increased its working capital by a net
      amount of $3,044,476 from $(1,446,455) as of December 31, 2007 to $1,598,021
      as
      of June 30, 2008. This is mainly due to a decrease in the current portion of
      long term debt of approximately $1.0 million.





Significant
      Subsequent Events occurring after June 30, 2008:


18


*Resignation
      of Director and Appointment of New Directors*





On
      July
      18, 2008, Robert Sandelman resigned as a Director of Registrant.





On
      July
      18, 2008, Registrant’s Board of Directors appointed Stanley Hirschman and Lou
      Persico as Directors. The appointments are effective as of August 1,
      2008.





Stan
      Hirschman is President of CPointe Associates, Inc., a Plano, Texas executive
      management and retail operations consulting firm. He is an investment due
      diligence specialist and works regularly with public companies dealing with
      the
      difficulties of the balance between increased regulatory requirements and
      reasonable corporate governance. He is a director of Axion Power International
      and South Texas Oil and former chairman of Mustang Software, Inc. While at
      Mustang Software, Mr. Hirschman took a hands-on role in the planning and
      execution of the strategic initiative to increase shareholder value resulting
      in
      the successful acquisition of the company by Quintus Corporation.





His
      client list has included GameStop, Nortel, SBC Wireless (now AT&T), Dalrada
      Financial Corp., Oxford Media Corporation, Earthlink, Inc., Aiirmesh
      Communications, Bravo Foods International and Retail Highway. Prior to
      establishing CPointe Associates, he was Vice President Operations, Software
      Etc., Inc., a 396 retail store software chain, from 1989 to 1996. He also has
      held senior executive management positions with T.J. Maxx, Gap Stores and Banana
      Republic.




Mr.
      Hirschman is a member of the National Association of Corporate Directors and
      the
      KPMG Audit Committee Institute and is a graduate of the Harvard Business School
      Audit Committees in the New Era of Governance symposium. He is active in
      community affairs and serves on the Advisory Board of the Salvation Army Adult
      Rehabilitation Centers.





Lou
      Persico, MBA, CPA has over 25 years of financial and operational experience
      in
      private and public corporations. Persico began his career in public accounting
      and subsequently, he was employed by a series of “Fortune 100 Companies”
beginning with American Cyanamid/Wyeth Pharmaceuticals where he held the roles
      of controller and finance director for almost 10 years operating at overseas
      locations in Madrid, Spain, San Juan, Puerto Rico and Rio de Janeiro, Brazil.





Persico
      continued his tenure with other “Blue Chip” companies in a natural succession of
      increasingly responsible senior financial positions at The PerkinElmer Co.,
      Pearle Vision, Technicolor, Sara Lee, Cambridge Technology Partners and Arthur
      D. Little as CFO. However, for the past 7 years Persico’s focus has been with
      venture-backed start-up companies as CFO (the lead investor being Insight
      Venture Partners, a $3 billion private equity firm). At a large public
      enterprise, Cambridge Technology Partners (CATP), Persico was instrumental
      in
      building out the global infrastructure of the company from $200M to nearly
      $700M
      in worldwide revenue.





Persico
      earned at Pace University, New York City, a combined BBA/MBA with a
      concentration in finance and accounting. He has graduated from the Executive
      Programs at the Harvard Business School and Columbia Business School, and he
      is
      multilingual (Spanish and Portuguese). Persico is an avid health and fitness
      enthusiast and is a certified fitness trainer.





Messrs.
      Hirschman and Persico shall be compensated for service as nonmanagement
      directors as follows:





One
      Thousand Dollars ($1,000) per month;


One
      Thousand Dollars ($1,000) per day for attendance at Board meetings and other
      meetings in Costa Rica; and


One
      Hundred Thousand (100,000) options to purchase Common Stock of the Registrant,
      with a per share strike price equal to the market price on the date of grant,
      with twenty five thousand (25,000) options to vest on each of the 90 th ,
      180 th ,
      270 th and
      360 th day
      after the grant date.


19


*Series
      C Preferred Stock*





On
      July
      25, 2008, the Registrant filed a Certificate of Designation with the Secretary
      of State of the State of Nevada authorizing a series of preferred stock, under
      its articles of incorporation, known as “Series C Preferred Stock”. This
      Certificate of Designation was approved by the Registrant’s Board of Directors.
      The Certificate of Designation sets forth the following terms for the Series
      C
      Preferred Stock:





Authorized
                Shares:
            1,000Per
                Share Stated Value:
            $15,000Liquidation
                Preference:
            Per
                share Stated ValueConversion
                Price into Common Stock:
            $.30
                per share, as adjusted from time to time as set forth in the Certificate
                of DesignationVoting
                Rights:
            The
                Series C Preferred Shares shall vote along with the Common Stock
                on an as
                converted basis and shall have two votes per
                share




On
      July
      25, 2008, the Registrant entered into an agreement with Longview Fund, pursuant
      to which the Longview Fund exchanged 15,000,000 shares of its Common Stock
      for
      receipt of 1,000 shares of its Series C Preferred Stock.





*Extension
      of Maturity Dates of Certain Notes*





On
      or
      about August 12, 2008, Longview Fund, L.P. extended the maturity date of its
      promissory notes due from the Company and issued in June 2006 and December
      2006
      to January 15, 2010, and Alpha Capital Anstalt extended the maturity date of
      its
      promissory notes due from the Company and issued in November 2004, June 2006
      and
      December 2006 to January 15, 2010. A further discussion of these notes is set
      forth in Note 4 above.





*Events
      of Default Under Credit Agreement*





On
      July
      29, 2008, the Issuer received a letter from Comerica Bank, its senior secured
      lender, regarding covenant non-compliance for the period ending June 30, 2008.
      According to the letter, which references the August 30, 2007 Credit Agreement
      between the Issuer and Comerica Bank, Comerica Bank put the Issuer on notice
      that it has acknowledged that certain Defaults or Events of Default occurred
      as
      of June 30, 2008.




The
      letter concludes to state that at the time thereof the Bank was not taking
      action to enforce its rights, but that decision would not in any way be
      construed as a waiver of the Bank’s rights and remedies and was not an agreement
      to forbear from exercising its rights and remedies. Among rights and remedies
      available to Comerica Bank are acceleration of all amounts due under the Credit
      Agreement by Issuer to the Bank and foreclosure on the collateral securing
      the
      Loan, which is secured by a senior secured lien on all of the Issuer’s and its
      subsidiary’s assets.





Capital
      Resources and Liquidity





On
      June
      30, 2008 DSEN had total assets of $9,108,853 compared to $8,928,290 on June
      30,
      2007, an increase of $180,563. The reason for the increase in assets is a result
      of decrease in accounts receivable and increase in the related party receivable.
      DSEN had a total stockholders' equity of $2,798,689  on
      June
      30, 2008 compared to $4,282,354 on June 30, 2007, a decrease in equity of
      $1,483,665, which is due to the losses generated in the past year..





All
      assets are booked at historical purchase price and there is no variance between
      book value and the purchase price.


20


On
      June
      30, 2008 DSEN had Property and Equipment of $3,077,824 compared to $3,062,773
      on
      June 30, 2007, or an increase of $15,051, net of depreciation for the six
      months. The increase is due to the opening of a new call center in Limon, Costa
      Rica in March, 2008.





DSEN's
      capital resources are comprised primarily of private investors, who are either
      existing contacts of the Registrant's management or who come to the attention
      of
      the Registrant through brokers, financial institutions and other intermediaries.
      The Registrant’s access to capital is always dependent upon general financial
      market conditions. The Registrant's capital resources are not anticipated to
      change materially in 2008.





DSEN
      has
      financed operations through the collections of accounts receivable, servicing
      of
      existing contracts and the sale of common stock and through financing from
      financial institutions. In order to sustain operations in the near term, it
      is
      anticipated that DSEN will need to raise additional capital to expand
      operations. DSEN will also need to raise immediate capital to refinance its
      credit facility with Comerica Bank, which matures on August 30, 2008. If it
      is
      unable to raise this capital, it may be unable to continue operations, if
      Comerica exercises its remedies against collateral which consists of a first
      lien on DSEN’s assets.





DSEN's
      future capital requirements will depend on numerous factors, including the
      profitability of our research projects and our ability to control costs. We
      believe that our current assets will be sufficient to meet our operating
      expenses and capital expenditures. However, we cannot predict when and if any
      additional capital contributions may be needed and we may need to seek one
      or
      more substantial new investors. New investors could cause substantial dilution
      to existing stockholders.





There
      can
      be no assurances that DSEN will be successful in raising additional capital
      via
      debt or equity funding, or that any such transactions, if consummated, will
      be
      on terms favorable to DSEN. In the event that additional capital is not obtained
      from other sources, it may become necessary to alter development plans or
      otherwise abandon certain ventures.





If
      DSEN
      needs to raise additional funds in order to fund expansion, develop new or
      enhanced services or products, respond to competitive pressures or acquire
      complementary products, businesses or technologies, any additional funds raised
      through the issuance of equity or convertible debt securities, the percentage
      ownership of the stockholders of DSEN will be reduced, stockholders may
      experience additional dilution and such securities may have rights, preferences
      or privileges senior to those of DSEN's Common Stock. DSEN could incur
      significant amounts of indebtedness to finance its operations, and any such
      indebtedness could contain covenants, which would restrict DSEN's
      operations.





Off-Balance
      Sheet Arrangements.





DSEN
      currently does not have any off-balance sheet arrangements.





Forward-Looking
      Information





This
      quarterly report contains forward-looking statements. The forward- looking
      statements include all statements that are not statements of historical fact.
      The forward-looking statements are often identifiable by their use of words
      such
      as "may," "expect," "believe," "anticipate," "intend," "could," "estimate,"
      or
      "continue," "Plans" or the negative or other variations of those or comparable
      terms. Our actual results could differ materially from the anticipated results
      described in the forward-looking statements. Factors that could affect our
      results include, but are not limited to, those discussed in Item 2,
      "Management's Discussion and Analysis or Plan of Operation" and included
      elsewhere in this report. DSEN makes no commitment to update any forward-looking
      statement or to disclose any facts, events, or circumstances after the date
      hereof that may affect the accuracy of any forward-looking
      statement.


21


Item
      3.
      Quantitative and Qualitative Disclosures About Market Risk





Our
      exposure to market risk for changes in interest rates relates primarily to
      the
      market-driven increase or decrease in interest rates, and the impact of those
      changes on the Company’s ability to realize a return on invested or available
      funds. We ensure the safety and preservation of our invested principal funds
      by
      limiting default risk, market risk and reinvestment risk. We mitigate default
      risk by investing in short term high-credit investment grade securities and/or
      commercial checking and savings accounts.





**ITEM
      4T. CONTROLS AND PROCEDURES**





Evaluation
      of Disclosure Controls and Procedures




As
      of the
      end of the period covered by this Report on Form 10-Q, management performed,
      with the participation of our Chief Executive Officer and Chief Accounting
      Officer, an evaluation of the effectiveness of our disclosure controls and
      procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act.
      Our
      disclosure controls and procedures are designed to ensure that information
      required to be disclosed in the report we file or submit under the Exchange
      Act
      is recorded, processed, summarized, and reported within the time periods
      specified in the SEC’s forms, and that such information is accumulated and
      communicated to our management including our Chief Executive Officer and our
      Chief Accounting Officer, to allow timely decisions regarding required
      disclosures. Our Chief Executive Officer and our Chief Accounting Officer
      concluded that, as of June 30, 2008, our disclosure controls and procedures
      were
      effective.





Internal
      Control Over Financial Reporting




There
      has
      been no change in the Company's internal control over financial reporting during
      the most recent fiscal quarter that has materially affected, or is reasonably
      likely to materially affect, the Company's internal control over financial
      reporting.





PART
      II – OTHER INFORMATION





Item
      1.
      Legal Proceedings.





DSEN
      is
      not a party to any pending material legal proceeding. To the knowledge of
      management, no federal, state or local governmental agency is presently
      contemplating any proceeding against DSEN. To the knowledge of management,
      no
      director, executive officer or affiliate of DSEN, any owner of record or
      beneficially of more than 5% of DSEN's common stock is a party adverse to DSEN
      or has a material interest adverse to DSEN in any proceeding.





Item
      2.
      Unregistered Sales of Equity Security and Use of Proceeds.





None.





Item
      3.
      Defaults Upon Senior Securities





None.





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





None.





Item
      5.
      Other Information





None.


22


Item
      6.
      Exhibits and Reports on Form 8-K





Exhibits





(a)
      Exhibit 31. Certifications required by Rule 13a-14(a) or Rule 15d-
      14(a)





31.1
      and
      32.2 Certification of Chief Executive Officer and Principal Financial Officer
      pursuant to 18 U.S.C.ss.1850 as adopted pursuant to Section 302 of the
      Sarbanes-Oxley Act of 2002.





(b)
      Exhibit 32. Certifications required by Rule 13a-14(b) or Rule 15d- 14(b) and
      section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350





32.1
      and
      32.2 Certification of Chief Executive Officer and Principal Financial Officer
      pursuant to 18 U.S.C.ss.1850 as adopted pursuant to Section 906 of the
      Sarbanes-Oxley Act of 2002.





(c)
      Reports on Form 8-K




Current
      Report on Form 8-K, filed on January 23, 2008





(d)
      Other
      Exhibits




Exhibit
      3.12 Certificate of Designation for the Series C Preferred Stock


Exhibit
      10.47 Letter Agreement with Longview Fund, L.P.





SIGNATURES





In
      accordance with the Securities Exchange Act of 1934, the registrant caused
      this
      report to be signed on its behalf by the undersigned, thereunto duly
      authorized.





Datascension,
                Inc./s/
                D. Scott KincerD.
                Scott KincerPresident,
                Chairman and Director(Principal
                Executive Officer)/s/
                David P. LiebermanDavid
                P. Lieberman(Principal
                Financial Officer)Date:
                August 13, 2008




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