U.S.
      SECURITIES AND EXCHANGE COMMISSION


Washington,
      D.C. 20549





FORM
      10-Q





(Mark
      One)


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




For
      the
      quarterly period ended March 31, 2008





o
      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 x
      No o





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 o
              Accelerated
                  filer oNon-accelerated
                  filer o(Do not check if a smaller reporting
                  company)
              Smaller
                  reporting company x





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


Yes
o
      No o





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
o
      No o





APPLICABLE
      ONLY TO CORPORATE ISSUERS





The
      Registrant has 36,227,361shares outstanding, par value $.001 per share as of
      May
      12, 2008. The Registrant has 508,500 shares of Preferred Stock Series B issued
      and outstanding as of May 12, 2008.









TABLE
      OF
      CONTENTS





PageNo.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
            
            14Item
                3.
            
            Quantitative
                and Qualitative Disclosures About Market Risk
            
            17Item
                4T.
            
            Controls
                and Procedures
            
            17PART
                II.
            
            OTHER
                INFORMATION
            
            17Item
                1.
            
            Legal
                Proceedings
            
            17Item
                2.
            
            Unregistered
                Sales of Equity and Use of Proceeds
            
            17Item
                3.
            
            Defaults
                upon Senior Securities
            
            17Item
                4.
            
            Submission
                of Matters to a Vote of Security Holders
            
            17Item
                5.
            
            Other
                Information
            
            18Item
                6.
            
            Exhibits
                and Reports on Form 8-K
            
            18Signatures
            
            18




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-QSB 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 March
      31,
      2008, and for all periods presented not misleading have been made. The results
      of operations for the period ended March 31, 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.CONSOLIDATED
                BALANCE SHEET




03/31/2008
            
            12/31/2007UNAUDITED
            
            AUDITED**ASSETS**Current
                assetsCash
            
            $
            13,437
            
            $
            46,930Accounts
                receivable
            
            
            2,919,383
            
            
            3,071,764Receivable
                due from related party
            
            
            1,294,683
            
            
            1,530,124Prepaid
                expenses
            
            
            92,286
            
            
            56,666Total
                current assets
            
            
            4,319,789
            
            
            4,705,484Property
                and equipment, net of depreciation
            
            
            3,100,142
            
            
            3,146,788Other
                assetsWebsite,
                net of amortization
            
            
            3,207
            
            
            3,207Deposits
            
            
            34,214
            
            
            15,618Goodwill
            
            
            1,692,782
            
            
            1,692,782Total
                other assets
            
            
            1,730,203
            
            
            1,711,607Total
                assets
            
            $
            9,150,134
            
            $
            9,563,879**LIABILITIES
                AND STOCKHOLDERS' EQUITY**Current
                liabilitiesAccounts
                payable
            
            $
            112,705
            
            $
            316,333Accrued
                expenses
            
            
            399,757
            
            
            491,603Short
                term notes payable
            
            
            34,276
            
            
            35,499Loan
                payable to Comerica Bank
            
            
            1,483,940
            
            
            1,727,688Current
                portion of long term debt
            
            
            868,586
            
            
            3,580,816Total
                current liabilities
            
            
            2,899,264
            
            
            6,151,939Long
                term debtLong
                term debt notes payable, net of current portion
            
            
            2,802,290
            
            
            45,977Total
                long-term liabilities
            
            
            2,802,290
            
            
            45,977Total
                liabilities
            
            
            5,701,554
            
            
            6,197,916Stockholders'
                equityCommon
                        stock, $0.001 par value, 200,000,000 shares authorized: 23,252,976
                        and
                        23,031,547 issued and outstanding at March 31, 2008 and December
                        31, 2007
                        respectively
            
            
            36,227
            
            
            35,776Additional
                paid in capital
            
            
            16,337,837
            
            
            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
            
            
            (13,273,596
            )
            
            (13,206,707
            )Total
                stockholders' equity
            
            
            3,448,580
            
            
            3,365,963Total
                liabilities and stockholders' equity
            
            $
            9,150,134
            
            $
            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**
            
            **Unaudited****For the**
            
            **For the****3 months ended**
            
            **3 months ended****3/31/2008**
            
            **3/31/2007****Revenues**
            
            $
            5,347,987
            
            $
            4,753,872**Cost
                of goods sold**
            
            
            4,466,155
            
            
            4,294,182**Gross
                profit**
            
            
            881,832
            
            
            459,690**Expenses:**Selling,
                general and administrative
            
            
            680,848
            
            
            545,053Depreciation
                and amortization
            
            
            60,459
            
            
            51,504**Total
                expenses**
            
            
            741,307
            
            
            596,557**Operating
                Income**
            
            
            140,525
            
            
            (136,867
            )**Other
                income(expense):**Interest
                expense
            
            
            (207,415
            )
            
            (173,709
            )**Total
                other income (expense)**
            
            
            (207,415
            )
            
            (173,709
            )**Net
                Income (loss)**
            
            $
            (66,890
            )
            $
            (310,576
            )**Basic
                weighted average number of common shares
                outstanding**
            
            
            36,018,365
            
            
            23,130,357**Diluted
                weighted average number of common shares
                outstanding**
            
            
            36,018,365
            
            
            23,130,357Basic
                net loss per share
            
            $
            (0.00
            )
            $
            (0.01
            )Diluted
                net loss per share
            
            $
            (0.00
            )
            $
            (0.01
            )




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**
            
            **Unaudited****For the**
            
            **For the****3 months ended**
            
            **3 months ended****3/31/2008**
            
            **3/31/2007****Cash
                flows from operating activities**Net
                loss
            
            $
            (66,890
            )
            $
            (310,576
            )Adjustments
                    to reconcile net loss to net cash provided by operating activities
                    Issued
                    (canceled) for services and debt
            
            
            -
            
            
            23,800Depreciation
                and amortization
            
            
            60,459
            
            
            51,504(Increase)
                decrease in accounts receivable
            
            
            152,381
            
            
            (24,515
            )(Increase)
                decrease in receivable due from related party
            
            
            235,441
            
            
            -(Increase)
                decrease in prepaid expenses
            
            
            (35,620
            )
            
            (166,468
            )(Increase)
                decrease in deposits
            
            
            (18,597
            )
            
            -Increase
                (decrease) in accounts payable
            
            
            (203,628
            )
            
            56,930Increase
                (decrease) in accrued expenses
            
            
            (91,846
            )
            
            (24,872
            )**Net
                cash provided (used) by operating activities**
            
            
            31,700
            
            
            (394,197
            )**Cash
                flows from investing activities**Purchase
                of property and equipment
            
            
            (13,813
            )
            
            8,955**Net
                cash provided (used) by investing activities**
            
            
            (13,813
            )
            
            8,955**Cash
                flows from financing activities**Increase
                (decrease) in notes payable
            
            
            42,860
            
            
            150,682Increase
                (decrease) in loan payable to Comerica Bank
            
            
            (243,748
            )Issuance
                of common stock
            
            
            149,508**Net
                cash provided (used) by financing activities**
            
            
            (51,380
            )
            
            150,682**Net
                increase (decrease) in cash**
            
            
            (33,493
            )
            
            (234,560
            )**Cash,
                beginning balance**
            
            
            46,930
            
            
            592,289**Cash,
                ending balance**
            
            $
            13,437
            
            $
            357,729**Interest
                paid**
            
            $
            40,263
            
            $
            12,994Taxes
                paid
            
            $
            800
            
            $
            -**Supplemental
                disclosure of non-cash transactions**Debt
                converted to equity
            
            $
            77,807
            
            $
            60,000




See
                accompanying notes




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 Per Share





Basic
      net
      income 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 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.





Research
      and Development





The
      Company does not perform any research and development in the ordinary course
      of
      its business. If it does perform research and development activities in the
      future, it will expense such activities..





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. Approximately
      90
      % of the Company's customers are located within the United States of
      America.





During
      the year ended December 31, 2007, the Company had three major clients,
      Ipsos-Reid (21.2%), Orbis (10.6%), and Synovate (8.3%). Management believes
      the
      loss of one of these key clients may materially affect the operations of
      the company in the short term. The
      same
      three clients continued as the three major clients in the first quarter of
      2008;
      however, there have been preliminary discussions with Orbis which may lead
      to a
      realignment or termination of that relationship in either June 2008 or
      thereafter.





Recently
      Issued Accounting Pronouncements





FASB
      Interpretation 46R "Consolidation of Variable Interest Entities", as revised
      (FIN 46R), requires that variable interest entities created before December
      31,
      2003 be consolidated during the first interim period beginning after December
      15, 2003. Management does not believe this pronouncement will have a material
      effect on the financial statements of the company.





In
      June
      2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation
      No. 48, "Accounting for Uncertainty in Income Taxes – an interpretation of
      FASB Statement No. 109" (FIN 48), which clarifies the accounting for uncertainty
      in tax positions. This Interpretation requires that we recognize in our
      financial statements the benefit of a tax position if that position is more
      likely than not of being sustained on audit, based on the technical merits
      of
      the position. The provisions of FIN 48 become effective as of the beginning
      of
      our 2008 fiscal year, with the cumulative effect of the change in accounting
      principle recorded as an adjustment to opening retained earnings. We are
      currently evaluating the impact that FIN 48 will have on our financial
      statements.





In
      September 2006, the FASB issued Statement No. 157, "Fair Value Measurements"
      (FAS 157), which defines fair value, establishes a framework for measuring
      fair
      value, and expands disclosures about fair value measurements. The provisions
      of
      FAS 157 become effective as of the beginning of our 2009 fiscal year. We do
      not
      expect the adoption of SFAS No. 157 to have a material impact on its
      consolidated financial position, results of operations or cash
      flows.





In
      September 2006, the FASB issued Statement No. 158, "Employer's Accounting for
      Defined Benefit Pension and Other Postretirement Plans - an amendment of FASB
      Statements No. 87, 88, 106, and 132(R)" (FAS 158). FAS 158 requires that
      employers recognize the funded status of their defined benefit pension and
      other
      postretirement plans on the balance sheet and recognize as a component of other
      comprehensive income, net of tax, the plan-related gains or losses and prior
      service costs or credits that arise during the period but are not recognized
      as
      components of net periodic benefit cost. We do not feel the implementation
      of
      this will effect our financial statements.





In
      September 2006, the Securities and Exchange Commission issued Staff Accounting
      Bulletin No. 108, "Considering the Effects of Prior Year Misstatements when
      Quantifying Misstatements in Current Year Financial Statements" (SAB 108),
      which
      addresses how to quantify the effect of financial statement errors. The
      provisions of SAB 108 becAme effective as of the end of our 2007 fiscal year.
      We
      do not expect the adoption of SAB 108 to have a significant impact on our
      financial statements.




9





In
      February 2007, the FASB issued Statement No. 159, "The Fair Value Option for
      Financial Assets and Financial Liabilities, including an amendment of FASB
      Statement No. 115" (FAS 159). FAS 159 permits companies 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 and establishes presentation
      and
      disclosure requirements designed to facilitate comparisons between companies
      that choose different measurement attributes for similar types of assets and
      liabilities. The provisions of FAS 159 become effective as of the beginning
      of
      our 2009 fiscal year. We are currently evaluating the impact that FAS 159 will
      have on our 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 March 31, 2008:





Computer
                equipment
            
            $
            936,703Office
                equipment
            
            
            1,072,913Leasehold
                improvements
            
            
            2,004,285Licenses
            
            
            230,000Accumulated
                depreciation
            
            
            (1,143,759
            )$
            3,100,142





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 March 31, 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.


10





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
      March 31, 2007, the unpaid note principal amount due is $157,500, and there
      is
      accrued and unpaid interest of $ 36,182.





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.





In
      December, 2007, accrued interest of $25,753 was added to one of the notes
      increasing the principal amount of the note to $1,728,612.





As
      of
      March 31, 2008, both notes are unpaid and there is $128,406 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.


11





In
      December, 2007 accrued interest of $40,685 was added to the note increasing
      the
      amount of the note at December 31, 2007 to $1,193,643.





There
      is
      $126,365 of accrued interest outstanding at March 31, 2008.





In
      December, 2007, the Company issued a Secured Promissory Note 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.





At
      March
      31, 2008, this note is unpaid and there is $18,767 of accrued
      interest.





The
      Company has entered into agreements for long-term notes payable. Long-term
      notes
      payable consists of the following at March 31, 2008:





Note
      payable to a lender, monthly payments of $10,044 inclusive of 15.00% annual
      interest through May 2009. At March 31, 2008 the balance due was $128,276.





Note
      payable to a lender, monthly payments of $2,424 inclusive of 15.00% annual
      interest through March, 2009. At March 31, 2008 the balance due was
      $26,860.





Total
                Notes Payable
            
            $
            155,136Less
                current portion
            
            
            (139,658
            )Long-Term
                portion of Notes Payable
            
            $
            15,478




Principal
      maturities are as follows:




Twelve months ended December 31, 2008
            
            $
            112,212Twelve
                months ended December 31, 2009
            
            
            42,924$
            155,136





Additionally,
      the company has the following short term notes payable as of March 31,
      2008.





Wells
                Fargo Bank
            
            $
            34,276





NOTE
      5 -
      STOCKHOLDERS' EQUITY





[list
      stock issuances in the first quarter]





In
      the
      quarter ended March 31, 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 expenses at 12/31/2007 and 30,000 shares were issued to Bob
      Sandelman, a director.





NOTE
      6 -
      RELATED PARTY TRANSACTIONS





Other
      than as set forth in Note 4 above, the following constitute the only related
      party transactions.


12





The
      Company has a receivable due from Datascension, S.A. in the amount of
      $1,530,124, 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 three months ended March 31, 2008, the company billed approximately $281,750
      to Sandelman & Associates, a company controlled by a board member, which
      amounted to 5.27% of our 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.





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 March
      31, 2008, the amount due under the Credit Agreement was $1,483,940. The Company
      is in violation of certain covenants under the Credit Agreement at March 31,
      2008, but are working with the Bank to resolve these issues.




NOTE
        9 –
SUBSEQUENT EVENTS
 
 On
        May
        12, 2008, Alpha Capital Anstalt agreed to extend the maturity date of its
        three
        promissory notes with the Company to June 30, 2009. See NOTE 4 for a discussion
        of the Company’s promissory notes with Alpha Capital.




13


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.


14





In
      the
      opinion of management, all adjustments necessary in order to make the financial
      position, results of operations and changes in financial position at March
      31,
      2008, and for all periods presented not misleading have been made. The results
      of operations for the period ended March 31, 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 three months ended March 31, 2008 compared to the three months ended
      March 31, 2007.





For
      the
      three-months, ended March 31, 2008, DSEN has generated $5,347,987 in revenues
      compared to $4,753,872 in revenues for the three-months ended March 31, 2007,
      for an increase of $594,115. The increase in revenue is a result of an increase
      in new clients, along with an increase in number of hours billed and hourly
      billing rates.





Cost
      of
      goods sold for the three-months ended March 31, 2008 was $4,466,155 compared
      to
      $4,294,182 for the three-months ended March 31, 2007 or an increase of $171,973.
      This increase was a result of the increased clients and service contracts
      completed, as well as the increase in operating costs associated with the new
      facility in Costa Rica and costs associated with technology implementation
      at
      the new facility.





Total
      general and administrative expenses decreased to $680,848 for the three-months
      ended March 31, 2008 from $545,053 for the three-months ended March 31, 2007,
      a
      net increase of $135,795. The increase is due to increase in operating costs,
      as
      well as increase in employees to handle increased business.





Depreciation
      expense for the three-months ended March 31, 2008 was $60,459 compared to
      $51,504 for the three-months ended March 31, 2007, an increase of $8,955.





Interest
      expense for the three months ended March 31, 2008 was $207,415 compared to
      $173,709 for the three-months ended March 31, 2007 an increase of $33,706.
      This
      increase relates to the debt funding increase in the last twelve months.





Datascension
      generated net loss of $66,890 for the three-months ended March 31, 2008, versus
      $310,576 for the same period in 2007. The decrease in net loss of $243,686
      is
      primarily a result of an increase of almost $600,000 in gross revenues. For
      the
      three-months ended March 31, 2008, DSEN increased its working capital by a
      net
      amount of $2,866,980 from $(1,446,455) as of December 31, 2007 to $1,420,525
      as
      of March 31, 2008. This is mainly due to a decrease in the current portion
      of
      long term debt of almost
      $2.5 million, which was caused by the extension of the maturity date of certain
      promissory notes due to Longview Fund, L.P. to June 30, 2009, so such
      indebtedness has been reclassified as long term
      indebtedness.





Significant
      Subsequent Events occurring after March 31, 2008: None.


15





Capital
      Resources and Liquidity





On
      March
      31, 2008 DSEN had total assets of $9,150,134 compared to $8,027,306 on March
      31,
      2007, an increase of $1,122,828. The reason for the increase in assets is a
      result of the increase in accounts receivable and existence of a related party
      receivable. DSEN had a total stockholders' equity of $3,448,580 on March 31,
      2008 compared to $995,131 on March 31, 2007, an increase in equity of
      $2,453,449, which is in part due to the conversion of convertible debt into
      common stock in June, 2007.





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





On
      March
      31, 2008 DSEN had Property and Equipment of $3,100,142 compared to $3,075,471
      on
      March 31, 2007, or an increase of $24,671 which is a result of relative parity
      in property and equipment at each of the periods.





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 2007.





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 has sufficient working capital due to revenues received
      and fundraising activities in the second quarter of 2007, although it may need
      to raise additional capital to expand operations. If it is unable to raise
      this
      capital, it may be unable to continue to increase operations.





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 does not currently
      have any contractual restrictions on its ability to incur debt and, accordingly,
      DSEN could incur significant amounts of indebtedness to finance its operations.
      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.


16





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 March 31, 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.


17





Item
      5.
      Other Information





None.





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 Principal 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





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:
                May 13, 2008





18