---

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC. 20549

FORM 10-QSB

Quarterly Report Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934

|                                                                  |  |  |                                     
|----------------------------------------------------------------- |  |  | ------------------------------------
|For the quarterly period endedSeptember 30, 2007                  |  |  | Commission File Number 0-19437      
|                                                                  |  |  |                                     
|CELLULAR TECHNICAL SERVICES COMPANY, INC.                        
|                                                                 
|(Exact Name of Small Business Issuer as Specified in Its Charter)
|                                                                  |  |  |                                     
|Delaware                                                          |  |  | 11-2962080                          
|                                                                  |  |  |                                     
|(State or Other Jurisdiction of
 Incorporation or Organization)   |  |  | (I.R.S. Employer Identification No.)

4400 Biscayne Blvd Suite 980 Miami, Florida, 33137(Address of Principal Executive Offices)

20 East Sunrise Highway, Suite 200, Valley
Stream, New York 11581
(Former Address)

Issuers telephone number, including area
code: (305)
575-4145

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 shell company (as defined in Rule
12b-2 of the Exchange Act) Yes o No x

16,093,027 Common Shares
were outstanding as of
October 2, 2007

Transitional
Small Business Disclosure Format. Yes o No x

---

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CELLULAR TECHNICAL SERVICES COMPANY, INC.
(A Developmental Stage Company)

TABLE OF CONTENTS FOR FORM 10-QSB

|                              |                                                           |   
|----------------------------- | --------------------------------------------------------- | --
|PART I. FINANCIAL INFORMATION |                                                          
|                              |                                                          
|ITEM 1.                       | FINANCIAL STATEMENTS                                      | 3 
|                              |                                                           |   
|ITEM 2.                       | MANAGEMENTS DISCUSSION AND
ANALYSIS OR PLAN OF OPERATION | 10
|                              |                                                           |   
|ITEM 3.                       | CONTROLS AND PROCEDURES                                   | 13
|                              |                                                           |   
|PART II. OTHER INFORMATION    | 13                                                       
|                              |                                                           |   
|ITEM 6.                       | EXHIBITS                                                  | 13

2

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CELLULAR TECHNICAL SERVICES COMPANY, INC.(A Developmental Stage Company)

PART I.
FINANCIAL INFORMATION

|        |                     
|------- | --------------------
|Item 1. | Financial
Statements

CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
(in 000s, except par value)

|                                                                                                         |  |                    |  |  |        |  
|-------------------------------------------------------------------------------------------------------- |  | ------------------ |  |  | ------ | -
|                                                                                                         |  |                    |  | 
|                                                                                                        
|                                                                                                         |  | September 30, 2007 | 
|                                                                                                         |  |                    | 
|                                                                                                        
|CURRENT
 ASSETS                                                                                          |  |                    |  |  |        |  
|Cash and cash equivalents                                                                                |  | $                  |  |  | 2,091  |  
|                                                                                                        
|Prepaid Expense                                                                                          |  |                    |  |  | 10     |  
|                                                                                                         |  |                    |  |  |        |  
|                                                                                                        
|Total Current Assets                                                                                     |  | $                  |  |  | 2,101  |  
|                                                                                                         |  |                    |  |  |        |  
|Deferred
 finance costs                                                                                  |  |                    |  |  | 1,914  |  
|                                                                                                         |  |                    |  |  |        |  
|                                                                                                        
|TOTAL ASSETS                                                                                             |  | $                  |  |  | 4,015  |  
|                                                                                                         |  |                    |  |  |        |  
|                                                                                                        
|CURRENT
 LIABILITIES                                                                                     |  |                    |  |  |        |  
|                                                                                                        
|Accounts
 payable and accrued liabilities                                                                |  | $                  |  |  | 405    |  
|                                                                                                         |  |                    |  |  |        |  
|Total Current Liabilities                                                                                |  | $                  |  |  | 405    |  
|                                                                                                        
|Shareholder loans                                                                                        |  |                    |  |  | 10     |  
|                                                                                                         |  |                    |  |  |        |  
|Total Liabilities                                                                                        |  | $                  |  |  | 415    |  
|                                                                                                        
|STOCKHOLDERS EQUITY                                                                                     |  |                    |  |  |        |  
|                                                                                                        
|Preferred
 Stock, $.01 par value per share, 5,000 shares authorized, none issued and
 outstanding        |  |                    |  |  |       |  
|                                                                                                        
|Common Stock, $.001 par value per share,
 30,000 shares authorized, 16,093 shares issued and outstanding |  |                    |  |  | 16     |  
|                                                                                                        
|Additional Paid-in Capital                                                                               |  |                    |  |  | 6,566  |  
|                                                                                                        
|Deficit accumulated during the development
 stage                                                        |  |                    |  |  | (2,982 | )
|                                                                                                         |  |                    |  |  |        |  
|Total Stockholders Equity                                                                               |  |                    |  |  | 3,600  |  
|                                                                                                         |  |                    |  |  |        |  
|                                                                                                        
|TOTAL LIABILITIES AND STOCKHOLDERS
EQUITY                                                               |  | $                  |  |  | 4,015  |  
|                                                                                                         |  |                    |  |  |        |  
|                                                                                                         |  |                    |  |  |        |  
|                                                                                                        

The accompanying notes are an integral part
of these condensed consolidated financial statements.

3

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CELLULAR TECHNICAL SERVICES COMPANY, INC.(A Developmental Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(UNAUDITED)

(in 000s, except per share amounts)

|                                      |  |                                 |      |                                |   |                                                    |      |   |        |   |      |  |   |        |      |  |  |   |        |   |  |  |  |        |   | 
|------------------------------------- |  | ------------------------------- | ---- | ------------------------------ | - | -------------------------------------------------- | ---- | - | ------ | - | ---- |  | - | ------ | ---- |  |  | - | ------ | - |  |  |  | ------ | - | 
|                                      |  | Three Months EndedSeptember 30, |      | Nine Months EndedSeptember 30, |   | September 15, 2005(Inception) toSeptember 30, 2007 |     
|                                      |  |                                 |      |                                |   |                                                    |      |   |        |   |      |  |   |        |      |  |  |   |        |   | 
|                                      |  |                                 | 2007 |                                |   |                                                    | 2006 |   |        |   | 2007 |  |   |        | 2006 |  |  |   |        |   | 
|                                      |  |                                 |      |                                |   |                                                    |      |   |        |   |      |  |   |        |      |  |  |   |        |   | 
|REVENUES                              |  |                                 |      |                                |   |                                                    |      |   |        |   |      |  |   |        |      |  |  |   |        |   |  |  |  |        |   | 
|                                      |  |                                 |      |                                |   |                                                    |      |   |        |   |      |  |   |        |      |  |  |   |        |   |  |  |  |        |   | 
|COSTS AND
 EXPENSES                   |  |                                 |      |                                |   |                                                    |      |   |        |   |      |  |   |        |      |  |  |   |        |   |  |  |  |        |   | 
|Research & Development                |  |                                 |      | 312                            |   |                                                    |      |   | 230    |   |      |  |   | 1,096  |      |  |  |   | 516    |   |  |  |  | 1,920  |   | 
|                                      |  |                                 |      |                                |   |                                                    |      |   |        |   |      |  |   |        |      |  |  |   |        |   |  |  |  |        |   | 
|General and administrative            |  |                                 |      | 445                            |   |                                                    |      |   | 105    |   |      |  |   | 742    |      |  |  |   | 247    |   |  |  |  | 1,074  |   | 
|                                      |  |                                 |      |                                |   |                                                    |      |   |        |   |      |  |   |        |      |  |  |   |        |   |  |  |  |        |   | 
|                                     
|Total Costs
 and Expenses             |  |                                 |      | 757                            |   |                                                    |      |   | 335    |   |      |  |   | 1,838  |      |  |  |   | 763    |   |  |  |  | 2,994  |   | 
|                                      |  |                                 |      |                                |   |                                                    |      |   |        |   |      |  |   |        |      |  |  |   |        |   |  |  |  |        |   | 
|                                     
|LOSS FROM
 OPERATIONS                 |  |                                 |      | (757                           | ) |                                                    |      |   | (335   | ) |      |  |   | (1,838 | )    |  |  |   | (763   | ) |  |  |  | (2,994 | ) | 
|                                     
|INTEREST
 INCOME                      |  |                                 |      | 7                              |   |                                                    |      |   | 11     |   |      |  |   | 13     |      |  |  |   | 12     |   |  |  |  | 33     |   | 
|                                      |  |                                 |      |                                |   |                                                    |      |   |        |   |      |  |   |        |      |  |  |   |        |   |  |  |  |        |   | 
|                                     
|INTEREST
 EXPENSE                     |  |                                 |      | (14                            | ) |                                                    |      |   |        |   |      |  |   | (21    | )    |  |  |   |        |   |  |  |  | (21    | ) | 
|                                      |  |                                 |      |                                |   |                                                    |      |   |        |   |      |  |   |        |      |  |  |   |        |   |  |  |  |        |   | 
|                                     
|LOSS BEFORE
 TAX                      |  |                                 |      | (764                           | ) |                                                    |      |   | (324   | ) |      |  |   | (1,846 | )    |  |  |   | (751   | ) |  |  |  | (2,982 | ) | 
|                                     
|PROVISION
 FOR INCOME TAX             |  |                                 |      |                               |   |                                                    |      |   |        |   |      |  |   |       |      |  |  |   |        |   |  |  |  |        |   | 
|                                      |  |                                 |      |                                |   |                                                    |      |   |        |   |      |  |   |        |      |  |  |   |        |   |  |  |  |        |   | 
|                                     
|NET LOSS                              |  |                                 | $    | (764                           | ) |                                                    |      |   | (324   | ) |      |  | $ | (1,846 | )    |  |  | $ | (751   | ) |  |  |  | (2,982 | ) | 
|                                      |  |                                 |      |                                |   |                                                    |      |   |        |   |      |  |   |        |      |  |  |   |        |   |  |  |  |        |   | 
|BASIC AND DILUTED SHARE
 DATA:        |  |                                 |      |                                |   |                                                    |      |   |        |   |      |  |   |        |      |  |  |   |        |   |  |  |  |        |   | 
|NET LOSS                              |  |                                 | $    | (0.06                          | ) |                                                    |      | $ | (0.03  | ) |      |  | $ | (0.16  | )    |  |  | $ | (0.07  | ) |  |  |  |        |   | 
|                                      |  |                                 |      |                                |   |                                                    |      |   |        |   |      |  |   |        |      |  |  |   |        |   |  |  |  |        |   | 
|WEIGHTED
 AVERAGE SHARES OUTSTANDING: |  |                                 |      |                                |   |                                                    |      |   |        |   |      |  |   |        |      |  |  |   |        |   |  |  |  |        |   | 
|Basic and Diluted                     |  |                                 |      | 12,466                         |   |                                                    |      |   | 11,256 |   |      |  |   | 11,646 |      |  |  |   | 11,256 |   |  |  |  |        |   | 
|                                      |  |                                 |      |                                |   |                                                    |      |   |        |   |      |  |   |        |      |  |  |   |        |   |  |  |  |        |   | 

The accompanying notes are an integral part
of these condensed consolidated financial statements.

4

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Cellular Technical Services Company, Inc.(A Development Stage Company)Statement of Stockholders' Equity(UNAUDITED)(in 000's)

|                                                     |  |                 |  |              |   |            |        |            |   |         |  |         |       | Deficit     |  |             |        |  
|---------------------------------------------------- |  | --------------- |  | ------------ | - | ---------- | ------ | ---------- | - | ------- |  | ------- | ----- | ----------- |  | ----------- | ------ | -
|                                                     |  |                 |  |              |   |            |        |            |   |         |  |         |       |             |  | Accumulated |        |  
|                                                     |  | Preferred Stock |  | Common Stock |   | Additional |        | During the |   |         |  |        
|                                                     |  |                 |  |              |   |            |        |            |   |         |  | Paid-In |       | Development |  |             |        |  
|                                                     |  | Shares          |  | Amount       |   | Shares     |        | Amount     |   | Capital |  | Stage   |       | Total      
|                                                     |  |                 |  |              |   |            |        |            |   |         |  |         |       |            
|                                                    
|                                                    
|                                                    
|Balance at December 31, 2006                         |  | -               |  | $            | 0 |            | 11,256 |            | $ | 11      |  | $       | 1,494 |             |  | $           | (1,136 | )
|                                                    
|Exercise of options (CTS)                            |  |                 |  |              |   |            | 42     |            | $ | 0       |  | $       | 35    |             |  |             |        |  
|Intristic value of CTS options                       |  |                 |  |              |   |            |        |            |   |         |  | $       | 77    |             |  |             |        |  
|Issuance shares in recapitalization                  |  |                 |  |              |   |            | 4,795  |            | $ | 5       |  | $       | 3,078 |             |  |             |        |  
|SafeStitch expenses associated with recapitalization |  |                 |  |              |   |            |        |            |   |         |  | $       | (156  | )           |  |             |        |  
|Stock based compensation                             |  |                 |  |              |   |            |        |            |   |         |  | $       | 53    |             |  |             |        |  
|Warrants issued in connection with credit facility   |  |                 |  |              |   |            |        |            |   |         |  | $       | 1,985 |             |  |             |        |  
|Net loss                                             |  |                 |  |              |   |            |        |            |   |         |  |         |       |             |  | $           | (1,846 | )
|                                                     |  |                 |  |              |   |            |        |            |   |         |  |         |       |             |  |             |        |  
|                                                    
|Balance at September 30, 2007                        |  | -               |  | $            | - |            | 16,093 |            | $ | 16      |  | $       | 6,566 |             |  | $           | (2,982 | )
|                                                     |  |                 |  |              |   |            |        |            |   |         |  |         |       |             |  |             |        |  

Seeaccompanyingnotes tocondensedconsolidatedfinancialstatements.

5

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CELLULAR TECHNICAL SERVICES COMPANY, INC.
(A Developmental Stage Company)

CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(in 000s)(unaudited)

---

|                                                                             |  |                                  |        |                                                       |  |       |   |        |   | 
|---------------------------------------------------------------------------- |  | -------------------------------- | ------ | ----------------------------------------------------- |  | ----- | - | ------ | - | 
|                                                                             |  | Nine Months Ended
 September 30, |        | September 15, 2005
 (Inception) ToSeptember
 30, 2007 | 
|                                                                             |  |                                  |        |                                                      
|                                                                             |  | 2007                             |        | 2006                                                  |  |      
|                                                                             |  |                                  |        |                                                       |  |       |  
|                                                                            
|CASH FLOWS
 FROM OPERATING ACTIVITIES                                        |  |                                  |        |                                                       |  |       |   |        |  
|Net Loss                                                                     |  |                                  | (1,846 | )                                                     |  | (751  | ) | (2,982 | ) | 
|Adjustments to reconcile net loss to net
 cash used in operating activities: |  |                                  |        |                                                       |  |       |   |        |   | 
|Amortization of Deferred Finance Costs                                       |  |                                  | 71     |                                                       |  |       |   | 71     |   | 
|Stock Option Compensation Expense                                            |  |                                  | 53     |                                                       |  |       |   | 53     |   | 
|Intrinsic Value of Stock Options Excersised                                  |  |                                  | 77     |                                                       |  |       |   | 77     |   | 
|Changes in operating assets and
 liabilities:                                |  |                                  |        |                                                       |  |       |   |        |   | 
|(Decrease) / increase in accounts payable
 and accrued liabilities           |  |                                  | (47    | )                                                     |  | 109   |   | 120    |   | 
|Increase in prepaid expense                                                  |  |                                  | 10     |                                                       |  |       |   | 10     |   | 
|                                                                             |  |                                  |        |                                                       |  |       |   |        |   | 
|                                                                             |  |                                  |        |                                                       |  |       |   |        |   | 
|NET CASH
 USED IN OPERATING ACTIVITIES                                       |  |                                  | (1,682 | )                                                     |  | (642  | ) | (2,651 | ) | 
|                                                                             |  |                                  |        |                                                       |  |       |   |        |   | 
|CASH FLOWS
 FROM FINANCING ACTIVITIES                                        |  |                                  |        |                                                       |  |       |   |        |   | 
|                                                                             |  |                                  |        |                                                       |  |       |   |        |   | 
|Issuance of Shares in Recapitalization                                       |  |                                  | 3,192  |                                                       |  |       |   | 3,192  |   | 
|                                                                             |  |                                  |        |                                                       |  |       |   |        |   | 
|Shareholders Loans                                                           |  |                                  |        |                                                       |  | 1,425 |   | 10     |   | 
|                                                                             |  |                                  |        |                                                       |  |       |   |        |   | 
|Exercise of options                                                          |  |                                  | 35     |                                                       |  |       |   | 35     |   | 
|                                                                             |  |                                  |        |                                                       |  |       |   |        |   | 
|Capital contributions                                                        |  |                                  |        |                                                       |  |       |   | 1,505  |   | 
|                                                                             |  |                                  |        |                                                       |  |       |   |        |   | 
|                                                                             |  |                                  |        |                                                       |  |       |   |        |   | 
|NET CASH
 PROVIDED BY FINANCING ACTIVITIES                                   |  |                                  | 3,227  |                                                       |  | 1,425 |   | 4,742  |   | 
|                                                                             |  |                                  |        |                                                       |  |       |   |        |   | 
|NET INCREASE
 IN CASH AND CASH EQUIVALENTS                                   |  |                                  | 1,545  |                                                       |  | 783   |   |        |   | 
|                                                                             |  |                                  |        |                                                       |  |       |   |        |   | 
|CASH AND
 CASH EQUIVALENTS AT BEGINNING OF PERIOD                            |  |                                  | 546    |                                                       |  | 23    |   | 0      |   | 
|                                                                             |  |                                  |        |                                                       |  |       |   |        |   | 
|                                                                             |  |                                  |        |                                                       |  |       |   |        |   | 
|CASH AND
 CASH EQUIVALENTS AT END OF PERIOD                                  |  |                                  | 2,091  |                                                       |  | 806   |   | 2,091  |   | 
|                                                                             |  |                                  |        |                                                       |  |       |   |        |   | 
|Non Cash                                                                     |  |                                  |        |                                                       |  |       |   |        |   | 
|Warrants issued in connection with credit facility                           |  |                                  | 1,985  |                                                       |  |       |   | 1,985  |   | 

The accompanying notes are an integral part
of these condensed consolidated financial statements.


6

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CELLULAR TECHNICAL SERVICES COMPANY, INC.
(A Developmental Stage Company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS

NOTE A  BASIS OF PRESENTATION AND LIQUIDITY:

The
accompanying unaudited condensed consolidated financial statements of Cellular
Technical Services Company, Inc. (CTS or the Company) have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-QSB. Accordingly, they do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included.

On September 4, 2007, CTS acquired all of the members equity
    of Safestitch LLC. (Safestitch)
	pursuant to a Share Transfer, Exchange and Contribution Agreement dated as of July 25, 2007,
	 in exchange for 11,256,369 shares and 42,400 options which were exercised in September 2007
    of CTS Common Stock, which represented a majority of outstanding shares
    after the date of acquisition. For accounting purposes, the acquisition has
    been treated as a recapitalization of Safestitch, with Safestitch as the
    acquirer (reverse acquisition). SafeStitch was formed as a limited liability Company in Virginia on September 15, 2005. In connection with the acquisition SafeStitch became a wholly owned subsidiary of CTS. In connection with the reverse acquisition CTSs
historical capital accounts were retroactively adjusted to reflect the equivalent number of shares issue by CTS in the exchange and SafeStitchs historical accumulated deficit was carried forward. The Statement of Operations reflects the
activities of SafeStitch from the commencement of operations in September 15, 2005.
As of the date of the share
exchange, all options issued to former officers and directors, with exercise
prices in excess of the current share price were cancelled in exchange for the
issuance of 2,000 shares per person, or, in total, 6,000 shares of CTS Common
    Stock.

Safestitch is a developmental
stage medical device company focused on the development of medical devices that
manipulate tissues for obesity, gastroesophageal reflux disease (GERD),
Barretts Esophagus, esophageal obstructions, upper gastrointestinal bleeding,
hernia formation and other intraperitoneal abnormalities through endoscopic and
minimally invasive surgery.

CTS does not
have any current source of revenues. However, management believes
that its cash balance as of September 30, 2007 of approximately $2.1 million,
together with an available $4 million line of credit is sufficient to fund its
current cash flow requirements through at least the next twelve months.

NOTE B  STOCK OPTIONS:

Commencing January 1, 2006,
CTS has adopted Statement of Financial Accounting Standards No. 123R, Share
Based Payment (SFAS 123R), which requires all share-based payments,
including grants of stock options, to be recognized in the income statement as
an operating expense, based on their fair values.

CTSs 1996 Stock Option Plan
authorizes the grant of both incentive (ISO) and non-qualified stock
options up to a maximum of 335,000 shares of CTSs Common Stock to employees
(including officers and directors who are employees) of and consultants to CTS.
The exercise price, term and vesting provisions of each option grant are fixed
by the Compensation and Stock Option Committee with the requirement that the
exercise price of an ISO may not be less than the fair market value of CTSs
Common Stock on the date of grant, and the term of an ISO may not exceed ten
years. CTS has not granted any options under this plan during the nine months
ended September 30, 2007 and the year ended December 31, 2006. As of September
30, 2007, there are no options outstanding under the plan. The plan expired and no new options may be granted under the plan.

No tax benefits were
attributed to the stock-based compensation expense because a valuation
allowance was maintained for substantially all net deferred tax assets. We
elected to adopt the alternative method of calculating the historical pool of
windfall tax benefits as permitted by FASB Staff Position (FSP) No. SFAS
123R-3, Transition Election Related to Accounting for the Tax Effects of
Share-Based Payment Awards. This is a simplified method to determine the pool
of windfall tax benefits that is used in determining the tax effects of stock
compensation in the results of operations and cash flow reporting for awards
that were outstanding as of the adoption of SFAS 123R.

7

---



The following
summarizes the activity of the Companys stock options granted both inside and outside the plans for the nine months ended
September 30, 2007:

|                                                        |  |                          |    |                                                         |   |                                                                             |  |                                           |      |  |   |    | 
|------------------------------------------------------- |  | ------------------------ | -- | ------------------------------------------------------- | - | --------------------------------------------------------------------------- |  | ----------------------------------------- | ---- |  | - | -- | 
|                                                        |  | Shares
        (in 000s) |    | Weighted
        Average
        Exercise
        Price |   | Weighted
        Average
        Remaining
        Contractual
        Term |  | Aggregate
        Intrinsic
        Value |     
|                                                        |  |                          |    |                                                         |   |                                                                             |  |                                           |     
|Number of stock options:                                |  |                          |    |                                                         |   |                                                                             |  |                                           |      |  |   |    | 
|Outstanding at January 1, 2007Pre
          Merger CTS |  |                          | 42 |                                                         |   | 0.79                                                                        |  |                                           | 4.75 |  |   |    | 
|Granted (outside the plan)                              |  |                          | 89 |                                                         |   | 2.60                                                                        |  |                                           | 9.95 |  |   |    | 
|Exercised                                               |  |                          | 42 |                                                         |   | 0.79                                                                        |  |                                           |      |  |   |    | 
|                                                        |  |                          |    |                                                         |   |                                                                             |  |                                           |      |  |   |    | 
|Outstanding at September 30, 2007                       |  |                          | 89 |                                                         | $ | 2.60                                                                        |  |                                           | 9.96 |  | $ | 53 | 
|                                                        |  |                          |    |                                                         |   |                                                                             |  |                                           |      |  |   |    | 
|                                                        |  |                          |    |                                                         |   |                                                                             |  |                                           |      |  |   |    | 
|Exercisable at September 30, 2007                       |  |                          | 22 |                                                         | $ | 2.60                                                                        |  |                                           | 9.96 |  | $ | 18 | 
|                                                        |  |                          |    |                                                         |   |                                                                             |  |                                           |      |  |   |    | 

The Company
granted 88,667 options, outside the plan, during the nine month period ended
September 30, 2007, all of which had an exercise price of $2.60. The Company
determined the estimated aggregate fair value of these options on the grant
date to be $195,954 based on the Black-Scholes valuation model using the
following assumptions: expected volatility of 82%, dividend yield of 0%, risk
free interest rate of 4.88% and expected life of 10 years. Stock option
compensation expense was approximately $53,000 for the three and nine months
    ended September 30, 2007.

At September
30, 2007, 22,000 options vested. A summary of the status of the Companys
nonvested options and changes during the nine months ended September 30, 2007
is presented below.

|                                  |  |                          |  |                                         |  |   |      |  | 
|--------------------------------- |  | ------------------------ |  | --------------------------------------- |  | - | ---- |  | 
|                                  |  | Stock Options
 (in 000s) |  | Weighted Average Grant Date Fair
 Value | 
|                                  |  |                          |  |                                         | 
|Non Vested
 at January 1, 2007    |  | 0                        |  |                                         |  | $ |     |  | 
|Options
 Granted                  |  | 89                       |  |                                         |  | $ | 2.21 |  | 
|Options
 Vested                   |  | 22                       |  |                                         |  | $ | 2.21 |  | 
|                                  |  |                          |  |                                         |  |   |      |  | 
|Non Vested
 at September 30, 2007 |  | 67                       |  |                                         |  | $ | 2.21 |  | 
|                                  |  |                          |  |                                         |  |   |      |  | 

NOTE C  CREDIT FACILITY:

In connection with the
acquisition of Safestitch, CTS entered into a Note and Security Agreement with
both The Frost Group, LLC, a Florida limited liability company whose members
include Frost Gamma Investments Trust, a trust indirectly controlled by Dr.
Phillip Frost, the largest beneficial holder of the issued and outstanding
shares of Common Stock of CTS, as well as Dr. Jane H. Hsiao and Steven D.
Rubin, two of the Companys directors, and Jeffrey G. Spragens, CTS Chief
Executive Officer and President and a director for $4 million in total
available borrowings, $3.9 million from The Frost Group, LLC and $100,000 from
Mr. Spragens. The credit facility has been granted for 28 months and bears
interest on outstanding borrowings under the line of credit at a 10% annual
rate.

As a part of the credit
facility arrangements, CTS granted warrants to purchase 805,521 shares of
our Common Stock to The Frost Group, LLC and Mr. Spragens exercisable at $0.25
    per share and expiring in 10 years. The fair value of the warrants were determined
    to be $1,984,691 on the grant date based on the Black-Scholes valuation model
    using the following assumptions: expected volatility of 82%, dividend yield
    of 0%, risk free interest rate of 4.88% and a life of 10 years. The fair
    value of the warrants were recorded as deferred financing cost and will be
    amortized over the life of the credit facility. Amortization expenses of
    deferred financing cost were $70,771 for the three and nine months of 2007.

8

---



NOTE F  CAPITAL TRANSACTIONS:

As described
in Note A, on September
4, 2007, CTS acquired all of the members equity of Safestitch LLC in exchange
for the issuance of 11,256,369 shares, or 72% of the outstanding
shares of CTS Common Stock. For accounting purposes the transaction has been
treated as a recapitalization of Safestitch and all membership interests of Safestitch
were eliminated, ordinary shares received in exchange were recorded at par value
and the difference between membership interest and the value of the ordinary
shares received was recorded to additional paid-in capital to effect the transaction
as of the beginning of the year. The Company also recorded the intrinsic value
of 42,400 options outstanding at the date of recapitalization. Additionally,
as of the date of the transaction, net assets of CTS, its ordinary shares and
additional paid-in capital were recorded to reflect the transaction. Safestitch
incurred $155,855 of transaction expenses, which were recorded as a reduction
of additional paid-in capital.

NOTE G  BASIC AND DILUTED NET LOSS PER SHARE:

Basic net loss per common
share is computed by dividing net loss by the weighted average number of common
shares outstanding during the period. Diluted net loss per common share is
computed giving effect to all dilutive potential common shares that were outstanding
during the period. Diluted potential common shares consist of incremental
shares issuable upon exercise of stock options and warrants. In computing
diluted net loss per share for the none-months ended September 30, 2007 and
2006, no adjustment has been made to the weighted average outstanding common
shares as the assumed exercise of outstanding options and warrants is
anti-dilutive.

Potential common shares not
included in calculating diluted net loss per share are as follows (in 000s):

|               |  |                    |     |                    |  |   | 
|-------------- |  | ------------------ | --- | ------------------ |  | - | 
|               |  | September
 30,2007 |     | September
 30,2006 | 
|               |  |                    |     |                    | 
|Stock options  |  |                    | 89  |                    |  | 0 | 
|Stock warrants |  |                    | 806 |                    |  | 0 | 
|               |  |                    |     |                    |  |   | 
|               |  |                    |     |                    |  |   | 
|Total          |  |                    | 895 |                    |  | 0 | 
|               |  |                    |     |                    |  |   | 

NOTE H  New Accounting Pronouncements

In
September 2006, FASB issued SFAS No. 157, Fair Value Measurements
(SFAS 157), which defines fair value, establishes a framework for measuring
fair value in generally accepted accounting principles and expands disclosures
about fair value measurements. This statement is effective for financial statements
issued for fiscal years beginning after November 15, 2007 and interim
periods within those fiscal years. Earlier application is encouraged provided
that the reporting entity has not yet issued financial statements for that
fiscal year including financial statements for an interim period within that
fiscal year. The Company is assessing the impact that the adoption of SFAS 157
will have on our consolidated financial position, results of operations,
cash flows or financial statement disclosures.

In
February 2007, FASB issued SFAS No. 159, The Fair Value Option for
Financial Assets and Financial Liabilities- including an amendment of FASB
Statement 115, (SFAS 159). This statement provides companies with an option
to report selected financial assets and liabilities at fair value. This
statement is effective for fiscal years beginning after November 15, 2007
with early adoption permitted. The Company is assessing the impact that the adoption of SFAS 159
will have on our consolidated financial position, results
of operations, cash flows or financial statement disclosures.

NOTE I  Agreement with Creighton University

On
May 26, 2006, Safestitch entered into an exclusive license and
development agreement with Creighton University granting us a worldwide
exclusive license (even as to the university), with rights to sublicense, to
all our

9

---



product candidates and associated know-how, including the exclusive
right to manufacture, use and sell the product candidates. In accordance with
the agreement, Creighton University is entitled to 1.5 percent of the licensed
products net sales. In accordance with the license and development agreement
with Creighton University, the Company is to invest, in aggregate, at least $2,500,000
within 36 months of the execution of this agreement towards the development of
 the licensed product, including reimbursement of Creighton Universitys
 overhead expenses, related to the Companys use of its facilities and calculated
 as 20% of the Companys
direct development expenditures. If the Company fails to meet its development
obligations, all rights in the licensed patent rights and associated know-how
shall revert back to the University. As of September 30, 2007, the Company has
expended $1,829,000 in connection with its license and development agreement.

NOTE J  Research
and Development

Research
and development costs are charged to expense as incurred.

NOTE K  Use of Estimates

The preparation of
financial statements in conformity with U.S. generally accepted accounting
principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Such estimates
include the selection of assumptions underlying the calculation of the fair
value of options. Actual results could differ from those estimates.

NOTE L  Income Taxes

CTS
accounts for income taxes using the asset and liability method described in
SFAS No. 109, Accounting For Income Taxes, the objective of which
is to establish deferred tax assets and liabilities for the temporary differences
between the financial reporting and the tax bases of the CTSs assets and
liabilities at enacted tax rates expected to be in effect when such amounts are
realized or settled. A valuation allowance related to deferred tax assets is
recorded when it is more likely than not that some portion or all of the
deferred tax assets will not be realized. As a result of the merger transaction
on September 4, 2007 with SafeStitch LLC, our net operating losses for CTS will
be limited under Section 382 of the Internal Revenue Code due to a more than
50% change in ownership over a three year period.

CTS adopted the provisions of Financial Accounting Standards Board
interpretation No. 48 Accounting for Uncertainty in Income Taxes (FIN 48), an
interpretation of FASB Statement No. 109 (SFAS 109) on January 1, 2007. As a
result of the implementation of FIN 48, we recognized no adjustment for
uncertain tax provisions. At the adoption date of January 1, 2007, we had a
deferred tax asset which was fully reserved by a valuation allowance to reduce
the deferred tax asset to the amount more likely than not to be realized.

CTS recognizes interest and penalties related to uncertain tax
positions in general and administrative expense. As of September 30, 2007, we
have not recorded any provisions for accrued interest and penalties related to
uncertain tax positions.

The tax years 2003 through 2006 remain open to examination by
    the major tax jurisdictions to which CTS is subject.

|        |                                                            
|------- | -----------------------------------------------------------
|Item 2. | Managements Discussion and Analysis or
 Plan of Operations

Special Note Regarding Forward-Looking Statements

The statements set forth under the captions Managements Discussion
and Analysis of Financial Condition and Results of Operations, and other
statements included elsewhere in this Quarterly Report on Form 10-QSB, which
are not historical, constitute Forward Looking Statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, (the
Exchange Act) including statements regarding the expectations, beliefs,
intentions or strategies for the future. When used in this report, the terms
anticipate, believe, estimate, expect and intend and words or phrases
of similar import, as they relate to our or our subsidiaries or our management,
are intended to identify forward-looking statements. We intend that all
forward-looking statements be subject to the safe-harbor provisions of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are only predictions and reflect our views as of the date they are
made with respect to future events and financial performance. Forward-looking
statements are subject to many risks and uncertainties that could cause our
actual results to differ materially from any future results expressed or
implied by the forward-looking statements.

10

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Risks and
uncertainties, the occurrence of which could adversely affect our business,
include the following:

|  |                                                                                                                                                                                                                                                                                                                                                                                  
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We have a
 history of operating losses and we do not expect to become profitable in the
 near future.                                                                                                                                                                                                                                                                            
|  |                                                                                                                                                                                                                                                                                                                                                                                  
| | Our
 technologies are in an early stage of development and are unproven.                                                                                                                                                                                                                                                                                                         
|  |                                                                                                                                                                                                                                                                                                                                                                                  
| | Our research
 and development activities may not result in commercially viable products.                                                                                                                                                                                                                                                                                         
|  |                                                                                                                                                                                                                                                                                                                                                                                  
| | We are
 highly dependent on the success of our product candidates, and we cannot give
 any assurance that they will receive regulatory clearance or approval, if
 necessary, or be successfully commercialized.                                                                                                                                                                  
|  |                                                                                                                                                                                                                                                                                                                                                                                  
| | The results
 of previous clinical experience with devices similar to the devices that we
 have licensed may not be predictive of results with our licensed products,
 and any clinical trials that the U.S. Food and Drug Administration (the
 FDA) may require us to undertake may not satisfy FDA requirements or the
 requirements of other non-U.S. regulatory authorities.
|  |                                                                                                                                                                                                                                                                                                                                                                                  
| | We will
 require substantial additional funding, which may not be available to us on
 acceptable terms, or at all.                                                                                                                                                                                                                                                               
|  |                                                                                                                                                                                                                                                                                                                                                                                  
| | If our
 competitors develop and market products that are more effective, safer or
 less expensive than our product candidates, our commercial
 opportunities will be negatively impacted.                                                                                                                                                                                        
|  |                                                                                                                                                                                                                                                                                                                                                                                  
| | Our product
 development activities could be delayed or stopped.                                                                                                                                                                                                                                                                                                                 
|  |                                                                                                                                                                                                                                                                                                                                                                                  
| | The
 regulatory clearance or approval process is expensive, time-consuming and
 uncertain and may prevent us or our collaboration partners from obtaining
 clearance, or approval, if necessary, for the commercialization of some or
 all of our product candidates.                                                                                                            
|  |                                                                                                                                                                                                                                                                                                                                                                                  
| | Even if we
 obtain regulatory clearances or approvals for our product candidates, the
 terms thereof and ongoing regulation of our products may limit how we
 manufacture and market our product candidates, which could materially impair
 our ability to generate anticipated revenues.                                                                                        
|  |                                                                                                                                                                                                                                                                                                                                                                                  
| | Even if we
 receive regulatory clearances or approvals to market our product candidates,
 the market may not be receptive to our products.                                                                                                                                                                                                                                       
|  |                                                                                                                                                                                                                                                                                                                                                                                  
| | If we fail
 to attract and retain key management and scientific personnel, we may be
 unable to successfully develop or commercialize our product candidates.                                                                                                                                                                                                                    
|  |                                                                                                                                                                                                                                                                                                                                                                                  
| | As we evolve
 from a company primarily involved in development to a company also involved
 in commercialization, we may encounter difficulties in managing our growth
 and expanding our operations successfully.                                                                                                                                                                
|  |                                                                                                                                                                                                                                                                                                                                                                                  
| | If we fail
 to acquire and develop other products or product candidates at all or on
 commercially reasonable terms, we may be unable to diversify or grow our
 business.                                                                                                                                                                                                        
|  |                                                                                                                                                                                                                                                                                                                                                                                  
| | We will rely
 on third parties to manufacture and supply our product candidates.                                                                                                                                                                                                                                                                                                 
|  |                                                                                                                                                                                                                                                                                                                                                                                  
| | We currently
 do not have a marketing staff or sales or distribution organization. If we
 are unable to develop our sales and marketing and distribution capability on
 our own or through collaborations with marketing partners, we will not be
 successful in commercializing our product candidates.                                                                         
|  |                                                                                                                                                                                                                                                                                                                                                                                  
| | Independent
 clinical investigators and contract research organizations that we engage to
 conduct our clinical trials may not be diligent, careful or timely.                                                                                                                                                                                                                   
|  |                                                                                                                                                                                                                                                                                                                                                                                  
| | The success
 of our business may be dependent on the actions of our collaborative
 partners.                                                                                                                                                                                                                                                                                     
|  |                                                                                                                                                                                                                                                                                                                                                                                  
| | All of our
 current product plans are licensed to us by Creighton University. Any loss of
 our rights under the agreement with Creighton University or any failure by
 Creighton University to properly maintain or enforce the                                                                                                                                                  

11

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|  |                                                                                                                                                                                                                                                                                         
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  | patents
 under such licenses would materially adversely affect our business prospects.                                                                                                                                                                                                  
|  |                                                                                                                                                                                                                                                                                         
| | An inability
 to find additional or other sources for our products could materially and
 adversely affect us.                                                                                                                                                                           
|  |                                                                                                                                                                                                                                                                                         
| | If we or
 Creighton University are unable to obtain and enforce patent protection for
 our product candidates, our business could be materially harmed.                                                                                                                                 
|  |                                                                                                                                                                                                                                                                                         
| | If we or
 Creighton University are unable to protect the confidentiality of our
 proprietary information and know-how, the value of our technology and
 products could be adversely affected.                                                                                           
|  |                                                                                                                                                                                                                                                                                         
| | Our
 commercial success depends significantly on our ability to operate without
 infringing the patents and other proprietary rights of third parties.                                                                                                                                  
|  |                                                                                                                                                                                                                                                                                         
| | Future
 legislative or regulatory reform of the health care system may affect our
 ability to sell our products profitably.                                                                                                                                                             
|  |                                                                                                                                                                                                                                                                                         
| | Failure to
 obtain regulatory clearance or approval outside the United States will
 prevent us from marketing our product candidates abroad.                                                                                                                                            
|  |                                                                                                                                                                                                                                                                                         
| | Non-U.S.
 governments often impose strict price controls, which may adversely affect
 our future profitability.                                                                                                                                                                         
|  |                                                                                                                                                                                                                                                                                         
| | Our business
 may become subject to economic, political, regulatory and other risks
 associated with international operations.                                                                                                                                                          
|  |                                                                                                                                                                                                                                                                                         
| | The market
 price of our common stock may fluctuate significantly.                                                                                                                                                                                                                      
|  |                                                                                                                                                                                                                                                                                         
| | Trading of
 our common stock is limited and trading restrictions imposed on us by
 applicable regulations and by lockup agreements we have entered into with our
 principal stockholders may further reduce our trading, making it difficult
 for our stockholders to sell their shares.
|  |                                                                                                                                                                                                                                                                                         
| | Because our
 common stock may be a penny stock, it may be more difficult for investors
 to sell shares of our common stock, and the market price of our common stock
 may be adversely affected.                                                                                      
|  |                                                                                                                                                                                                                                                                                         
| | Directors,
 executive officers, principal stockholders and affiliated entities own a
 significant percentage of our capital stock, and they may make decisions that
 you do not consider to be in your best interests or in the best interests of
 our stockholders.                    
|  |                                                                                                                                                                                                                                                                                         
| | Compliance
 with changing regulations concerning corporate governance and public
 disclosure may result in additional expenses.                                                                                                                                                         

* * * * *

The Company files its periodic reports with the Securities and
    Exchange Commission (the  SEC) in compliance with the small
    business issuer
provisions of Regulation S-B, under the Exchange Act. Generally, a small business
issuer cannot file under Regulation S-B if its annual revenues or public float
exceed $25.0 million for two consecutive years. The Company qualifies as a Regulation
S-B filer since its annual revenues for both 2006 and 2005 were less than $25.0
million and its public float had not exceeded $25.0 million in those periods.
Regulation S-B is tailored for the small business issuer, and although it requires
accurate and complete disclosure, it does not require certain specific disclosures
which are required under Regulation S-K and Regulation S-X.

On September
4, 2007, CTS completed an acquisition of SafeStitch LLC, a privately held
Virginia limited liability company (SafeStitch), pursuant to a Share
Transfer, Exchange and Contribution Agreement, dated as of July 25, 2007
(referred to as the Share Exchange Agreement), by and among us, SafeStitch
and the members of SafeStitch. This was accounted for as a reverse merger and recapitalization of SafeStitch.

12

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At
the closing of the Share Exchange, we issued an aggregate of 11,256,369 shares
of our common stock to the former members of SafeStitch in exchange for all of
their membership interests in SafeStitch. We also granted warrants to purchase
a total of 805,521 shares of our common stock to The Frost Group, LLC and
Jeffrey G. Spragens in connection with a line of credit of up to $4 million
that was provided by The Frost Group, LLC and Jeffrey G. Spragens to CTS
simultaneously with the closing. The Warrants have a ten year term and an
assumed exercise price of $.25 per share of common stock. Dr. Phillip Frost has
a controlling interest in The Frost Group, LLC and is the largest beneficial
holder of our shares of common stock. Dr. Jane Hsiao and Steven D. Rubin, two
of our directors, also are members of The Frost Group, LLC. Jeffrey G. Spragens
is our Chief Executive Officer and President and a director. Frost Gamma
Investments Trust, Dr. Phillip Frost, Dr. Jane Hsiao, Steven D. Rubin and
Jeffrey G. Spragens were also beneficial owners of membership interests in
SafeStitch. We incurred customary acquisition related costs in connection with
the share exchange. Our trading symbol is CTSC. We intend to change
our name to SafeStitch Medical, Inc. or a derivative thereof in connection with
our plan to apply for listing on the American Stock Exchange.

Accounting Treatment

On
September 4, 2007, CTS acquired SafeStitch in a transaction accounted for as a
recapitalization of SafeStitch pursuant to an agreement dated July 25, 2007.
For accounting purposes, SafeStitch is treated as the continuing reporting
entity. Since CTS did not have an operating business, the transaction is not
accounted for as a business combination. Instead, the transaction is accounted
for as a recapitalization of SafeStitch and the issuance of stock by SafeStitch
(represented by the outstanding shares of CTS) at the book values of assets and
liabilities of CTS, which approximates fair value with no goodwill or other
intangibles recorded.

Treatment of Warrants and Options

SafeStitch
did not have any outstanding warrants or options and no warrants or options
were assumed by CTS as a result of the Share Exchange, except warrants issued
in connection with the line of credit described above.

Results of
Operations

Losses totaled $2,982,000 from September 15, 2005 (inception)
    through September 30, 2007. Such losses included $1,846,000 and $751,000
    for the nine months ended September 30, 2007 and 2006, respectively and $764,000
    and $324,000 for the three months ended September 30, 2007 and 2006 respectively.

Three Months Ended September 30, 2007
Compared to Three Months Ended September 30, 2006

Research and
Development expenses were $312,000 for the three months ended September 30, 2007
    an increase of $82,000 compared with the same period in 2006, resulting from
    an increase in the amount of research being performed as CTS was further
    into its research activities.

General and
Administrative costs were $445,000 for the three months ended September 30,
2007 an increase of $340,000, releated to the increase in staffing, related
    payroll taxes, patent application and investigation, and other operating
    costs. Interest Income decreased $ 4,000 in the 2007 period due to lower
    invested cash balances.

Interest
expense increased during the 2007 period due to the accrual of interest on
members loan balances.

Nine Months Ended September 30, 2007 Compared
to Nine Months Ended September 30, 2006

Research and
Development expenses were $1,096,000 for the nine months ended September 30,
    2007 an increase of $580,000 compared with the same period in 2006, resulting
    from an increase in the amount of research being performed, as CTS was further
into its research activities.

General and
Administrative costs were $742,000 for the nine months ended September 30, 2007
an increase of $495,000, releated to the increase in staffing, related
    payroll taxes, patent application and investigation, and other operating
costs.

Interest
Income increased $1,000 in the 2007 period due to higher invested cash balances.

Interest
expenses increased during the 2007 period due to the accrual of interest on
members loan balances.

13

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Liquidity

The Company
does not expect to have any current source of revenues. However, management
believes that its cash balance as of September 30, 2007 of approximately $2.1
    million, together with the $4.0 million line of credit is sufficient to fund
    its current cash flow requirements through at least the next twelve months.
    Management has currently budgeted expenditures through end of 2008 of approximately
    $4.2 million which will fund the final development and initial marketing
    of three of its product candidates, as well as continuing research and development
    on the balance of the product candidates.

Plan of Operations 2008

Through the end of 2008, we plan
    the following, although there is no assurance all of it will be completed:

- FDA Registration of standard and airway bite
      blocks (We believe that these are Class
      I, exempt devices which do not require FDA Approval)
- Continued Product Development of gastroplasty
      device for obesity and GERD
- Manufacturing of gastroplasty devices for
      clinical trials and engineering (performance,
      validation) testing
- Feasibility trial of gastroplasty device and
      commencement of multicenter US and international
      trials
- Continued product development of Barretts
      Excision Device
- Final product development of smart dilator
      and application for FDA approval (Class
      II, 510(k))
- Initial marketing and commercialization of
      standard and airway bite blocks and smart
      dilator
- IRB clinical evaluation trials for standard
      and airway bite blocks and smart dilator
- Early development efforts on hernia device
      and NOTES devices, of which we have
      existing intellectual property and licenses

We also plan to complete our purchase
    of a machine shop in the Miami area to facilitate the production of clinical
    units and prototypes.

We plan to hire several more employees,
    as necessary.

We believe we have enough cash to
    complete the above plan, although we could take advantage of available opportunities,
    if any, to raise more cash.

|        |                        
|------- | -----------------------
|Item 3. | Controls and Procedures

The Company
maintains a system of disclosure controls and procedures that is designed to
provide reasonable assurance that information, which is required to be
disclosed by the Company in the reports that it files or submits under the
Exchange Act, is accumulated and communicated to management in a timely manner.
The Companys Chief Executive Officer and Chief Financial Officer have
evaluated this system of disclosure controls and procedures as of the end of
the period covered by this quarterly report, and believe that the system is operating
effectively to ensure appropriate disclosure. There have been no changes in the
Companys internal control over financial reporting during the most recent
fiscal quarter that have materially affected, or are reasonably likely to
materially affect, the Companys internal control over financial reporting.

PART II. OTHER INFORMATION

Item
6. Exhibits

| |                                                                                                 
| | ------------------------------------------------------------------------------------------------
| | Exhibit 31.1 Rule 13a-14(a) Certification
          by Chief Financial Officer                  
| | Exhibit 31.2 Rule 13a-14(a) Certification
          by Chief Executive Officer                  
| | Exhibit 32.1 Section 1350 Certification                                                         
| | Incorporated by reference to Form 8-K filed
          September 10, 2007 (File No. 000-19437    
| | Incorporated by reference to Form 8-K filed
          September 27, 2007 (File No. 000-19437)...

SIGNATURES

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

| |                                            |                         | 
| | ------------------------------------------ | ----------------------- | 
| | CELLULAR
 TECHNICAL SERVICES COMPANY, INC.
| |                                           
| | By:                                        | /s/Kenneth
 Block       | 
| |                                            |                         | 
| |                                            | Kenneth Block           | 
| |                                            | Chief Financial Officer | 
| |                                            | November 19, 2007       | 
| |                                           

14

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