**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-QSB**

**      March 31, 2007**

**-33389**

**nFinanSe      Inc. **

|   | Nevada                                                                   | 65-1071956                                           |   |
|--------|--------------------------------------------------------------------------|------------------------------------------------------|--------|
|   | (State                    or other jurisdiction of                       | (IRS                    Employer Identification No.) |   |
|   | incorporation                    or organization)                        |                                                 |   |
|   |                                                                     |                                                 |   |
|   | 6015                    31st                    Street East              |                                                 |   |
|   | Bradenton,                    Florida                                    | 34203                                                |   |
|   | (Address                    of principal executive offices)              | (Zip                    Code)                        |   |
|   |                                                                     |                                                 |   |
|   | Issuer’s                    telephone number, including area code: | (941)                    753-2875                    |   |

| **Yes** | X | **No** |   |   |
|---------|---|--------|--------|--------|

| **Yes** |   | **No** | X |   |
|---------|--------|--------|---|--------|

**3,821,487      shares of $0.001 par value Common Stock outstanding as of May 11,      2007**

| **Yes** |   | **No** | X |   |
|---------|--------|--------|---|--------|

----

|  **nFinanSe                  Inc.**                   |
|-----------------------------------------------------------------|
|  **A                  Development Stage Enterprise**  |
|  **Table                  of Contents**               |
|                                                            |   | **Page                  No.** |
|                                                            |   |
| PART                  I - FINANCIAL INFORMATION                 |   |
|                                                            | Item                  1. Financial Statements: |   |
|                                                            | Consolidated                  Balance Sheet (unaudited) as of March 31, 2007 | 3 |
|                                                            | Consolidated                Statements of Operations (unaudited) for the three months ended March                31,                2007 and March 31, 2006, and for the period July 10, 2000 (inception)                to                March 31, 2007 |                  4 |
|                                                            | Consolidated                Statements of Cash Flows (unaudited) for the three months ended March                31,                2007 and March 31, 2006, and for the period July 10, 2000 (inception)                to                March 31, 2007 |                  5 |
|                                                            | Notes                  to Consolidated Financial Statements                  (unaudited) | 7 |
|                                                            | Item                  2. Management’s Discussion and Analysis or Plan of                  Operation. | 19 |
|                                                            | Item                  3. Controls and Procedures. | 25 |
| PART                  II - OTHER INFORMATION                    |   |
|                                                            | Item                  1. Legal Proceedings. | 26 |
|                                                            | Item                  2. Unregistered Sales of Equity Securities and Use of                  Proceeds. | 26 |
|                                                            | Item                  3. Defaults Upon Senior Securities. | 26 |
|                                                            | Item                  4. Submission of Matters to a Vote of Security Holders. | 26 |
|                                                            | Item                  5. Other Information. | 27 |
|                                                            | Item                  6. Exhibits. | 28 |
|                                                            |   |   |   |
| SIGNATURES                                                      |   |

----

**PART        I - FINANCIAL INFORMATION**

**Item        1. Financial Statements. **

**nFinanSe        Inc.**

**(A        Development Stage Enterprise)**

**CONSOLIDATED        BALANCE SHEET**

**AS        OF **
**MARCH        31, 2007**

**(Unaudited)**

|                                                                                                                                                                                                                                                                                                                                            |                                                                       |          |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|---------------|
| **ASSETS**                                                                                                                                                                                                                                                                                                                                      |                                                                       |          |
|                                                                                                                                                                                                                                                                                                                                            |                                                                       |          |
| CURRENT                    ASSETS:                                                                                                                                                                                                                                                                                                              |                                                                       |          |
| Cash                    and cash equivalents                                                                                                                                                                                                                                                                                                    | $                                                                          | 2,304,762     |
| Receivables:                                                                                                                                                                                                                                                                                                                                    |                                                                       |          |
|                                                                                                                                                                                                                                                                                                                                            | Accounts                    (net of allowance for doubtful accounts of $0) |          | 9,130 |
|                                                                                                                                                                                                                                                                                                                                            | Other                                                                      |          | 5,594 |
| Prepaid                    expenses and other current assets                                                                                                                                                                                                                                                                                    |                                                                       | 208,348       |
| Inventory                                                                                                                                                                                                                                                                                                                                       |                                                                       | 376,439       |
| Total                    current assets                                                                                                                                                                                                                                                                                                         |                                                                       | 2,904,273     |
|                                                                                                                                                                                                                                                                                                                                            |                                                                       |          |
| PROPERTY                    AND EQUIPMENT (net of accumulated depreciation of$410,785)                                                                                                                                                                                                                                                          |                                                                       |  462,262 |
|                                                                                                                                                                                                                                                                                                                                            |                                                                       |          |
| OTHER                    ASSETS                                                                                                                                                                                                                                                                                                                 |                                                                       | 69,575        |
|                                                                                                                                                                                                                                                                                                                                            |                                                                       |          |
| **TOTAL**                                                                                                                                                                                                                                                                                                                                       | $                                                                          | 3,436,110     |
|                                                                                                                                                                                                                                                                                                                                            |                                                                       |          |
| **LIABILITIES                    AND STOCKHOLDERS’****EQUITY**                                                                                                                                                                                                                                                                            |                                                                       |          |
|                                                                                                                                                                                                                                                                                                                                            |                                                                       |          |
| CURRENT                    LIABILITIES:                                                                                                                                                                                                                                                                                                         |                                                                       |          |
| Accounts                    payable and accrued liabilities                                                                                                                                                                                                                                                                                     | $                                                                          | 821,944       |
| Deferred                    revenues                                                                                                                                                                                                                                                                                                            |                                                                       | 60,000        |
| Total                    current liabilities                                                                                                                                                                                                                                                                                                    |                                                                       | 881,944       |
|                                                                                                                                                                                                                                                                                                                                            |                                                                       |          |
| COMMITMENTS                    AND CONTINGENCIES                                                                                                                                                                                                                                                                                                |                                                                       |          |
|                                                                                                                                                                                                                                                                                                                                            |                                                                       |          |
| STOCKHOLDERS’                    EQUITY:                                                                                                                                                                                                                                                                                                  |                                                                       |          |
| Series                    A Convertible Preferred Stock - $.001 par value: 25,000,000 shares                    authorized; 9,327,934 issued and outstanding with a liquidation                    value of                    approximately $9,328,000 and dividends in arrears of approximately                    $117,000 at March 31, 2007 |                                                                       | 9,328         |
| Common                    stock - $0.001 par value: 200,000,000 shares authorized; 3,821,487                    shares                    issued and outstanding                                                                                                                                                                                |                                                                       | 3,822         |
| Additional                    paid-in capital                                                                                                                                                                                                                                                                                                   |                                                                       | 31,732,575    |
| Deficit                    accumulated during the development stage                                                                                                                                                                                                                                                                             |                                                                       | (29,191,559)  |
| Total                    stockholders’ equity                                                                                                                                                                                                                                                                                             |                                                                       | 2,554,166     |
|                                                                                                                                                                                                                                                                                                                                            |                                                                       |          |
| **TOTAL**                                                                                                                                                                                                                                                                                                                                       | $                                                                          | 3,436,110     |
|                                                                                                                                                                                                                                                                                                                                            |                                                                       |          |

----

**nFinanSe        Inc. **

**(A        Development Stage Enterprise)**

**CONSOLIDATED        STATEMENTS OF OPERATIONS**

**(Unaudited)**

|                                                                 |                                                                              |        |                                                                                                         |        |                                                                                   |         |                                                                                                                          |
|----------------------------------------------------------------------|-----------------------------------------------------------------------------------|-------------|--------------------------------------------------------------------------------------------------------------|-------------|----------------------------------------------------------------------------------------|--------------|-------------------------------------------------------------------------------------------------------------------------------|
|                                                                 |                                                                              |        | **For                    the****three                    months ended****March                    31, 2007** |        | **For                    the****three                    months ended March 31, 2006** |         | **For                    the period****July                    10, 2000 (inception)****to                    March 31, 2007** |
|                                                                 |                                                                              |        |                                                                                                         |        |
|  REVENUES                                                       | $                                                                                 | 1,769       | $                                                                                                            | -           | $                                                                                      | 1,175,174    |
|                                                                 |                                                                              |        |                                                                                                         |        |                                                                                   |         |                                                                                                                          |
| OPERATING                    EXPENSES:                               |                                                                              |        |                                                                                                         |        |                                                                                   |         |
|                                                                 | Costs                    of revenues                                              |        | 63,503                                                                                                       |        | 247,494                                                                                |         | 1,279,794                                                                                                                     |
|                                                                 | Employee                    compensation and benefits:                            |        |                                                                                                         |        |                                                                                   |         |
|                                                                 | Stock                    based                                                    |        | 730,082                                                                                                      |        | 252,951                                                                                |         | 2,127,401                                                                                                                     |
|                                                                 | Other                                                                             |        | 1,129,140                                                                                                    |        | 563,551                                                                                |         | 8,187,915                                                                                                                     |
|                                                                 | Professional                    and consulting fees                               |        |                                                                                                         |        |                                                                                   |         |                                                                                                                          |
|                                                                 | Stock                    based                                                    |        | -                                                                                                            |        | -                                                                                      |         | 2,780,452                                                                                                                     |
|                                                                 | Other                                                                             |        | 250,474                                                                                                      |        | 381,507                                                                                |         | 3,495,685                                                                                                                     |
|                                                                 | Selling                    and marketing                                          |        | 105,948                                                                                                      |        | 18,364                                                                                 |         | 519,805                                                                                                                       |
|                                                                 | Occupancy                    and equipment                                        |        | 162,935                                                                                                      |        | 125,197                                                                                |         | 1,530,648                                                                                                                     |
|                                                                 | Travel                    and entertainment                                       |        | 110,065                                                                                                      |        | 43,473                                                                                 |         | 484,466                                                                                                                       |
|                                                                 | Impairment                    of assets                                           |        | 30,983                                                                                                       |        | -                                                                                      |         | 286,137                                                                                                                       |
|                                                                 | Purchased                    in process research and development                  |        | -                                                                                                            |        | -                                                                                      |         | 153,190                                                                                                                       |
|                                                                 | Other                                                                             |        | 92,321                                                                                                       |        | 199,782                                                                                |         | 1,067,057                                                                                                                     |
|                                                                 | Total                    Operating Expenses                                       |        | 2,675,451                                                                                                    |        | 1,832,319                                                                              |         | 21,912,550                                                                                                                    |
|                                                                 |                                                                              |        |                                                                                                         |        |                                                                                   |         |                                                                                                                          |
| Loss                    from Operations                              |                                                                              | (2,673,682) |                                                                                                         | (1,832,319) |                                                                                   | (20,737,376) |
|                                                                 |                                                                              |        |                                                                                                         |        |                                                                                   |         |
| Other                    Income (Expense):                           |                                                                              |        |                                                                                                         |        |                                                                                   |         |
|                                                                 | Interest                    expense                                               |        | -                                                                                                            |        | (1,291)                                                                                |         | (1,686,225)                                                                                                                   |
|                                                                 | Interest                    income                                                |        | 23,441                                                                                                       |        | 4,654                                                                                  |         | 980,212                                                                                                                       |
|                                                                 | Gain                    (loss) on derivative instruments                          |        | -                                                                                                            |        | (431,838)                                                                              |         | 1,845,262                                                                                                                     |
|                                                                 | Gain                    (loss) on debt extinguishment                             |        | -                                                                                                            |        | -                                                                                      |         | (4,685,518)                                                                                                                   |
|                                                                 | Registration                    rights penalties                                  |        | -                                                                                                            |        | (142,254)                                                                              |         | (98,649)                                                                                                                      |
|                                                                 | Gain                    (loss) on sale of assets                                  |        | 1,633                                                                                                        |        | -                                                                                      |         | (28,368)                                                                                                                      |
|                                                                 | Gain                    from settlement of litigation                             |        | -                                                                                                            |        | -                                                                                      |         | 4,000                                                                                                                         |
|                                                                 | Other                    income (expense)                                         |        | 31,693                                                                                                       |        | -                                                                                      |         | (63,405)                                                                                                                      |
|                                                                 | Total                    other income (expense)                                   |        | 56,767                                                                                                       |        | (570,729)                                                                              |         | (3,732,691)                                                                                                                   |
|                                                                 |                                                                              |        |                                                                                                         |        |                                                                                   |         |                                                                                                                          |
| Loss                    from continuing operations                   | (2,616,915)                                                                       |        | (2,403,048)                                                                                                  |        | (24,470,067)                                                                           |
| Gain                    (loss) from discontinued operations          |                                                                              | 4,940       |                                                                                                         | (667,842)   |                                                                                   | (3,721,492)  |
|                                                                 |                                                                              |        |                                                                                                         |        |                                                                                   |         |                                                                                                                          |
| Net                    Loss                                          |                                                                              | (2,611,975) |                                                                                                         | (3,070,890) |                                                                                   | (28,191,559) |
| Dividends                    on Series A Convertible Preferred Stock |                                                                              | -           |                                                                                                         | -           |                                                                                   | (1,000,000)  |
| Net                    loss attributable to common shareholders      | $                                                                                 | (2,611,975) | $                                                                                                            | (3,070,890) | $                                                                                      | (29,191,559) |
|                                                                 |                                                                              |        |                                                                                                         |        |                                                                                   |         |
| Net                    Loss Per Share - Basic and Diluted:           |                                                                              |        |                                                                                                         |        |                                                                                   |         |
|                                                                 | Continuing                    Operations (including dividends on preferred stock) | $           | (.68)                                                                                                        | $           | (.69)                                                                                  |         |                                                                                                                          |
|                                                                 | Discontinued                    Operations                                        | $           | -                                                                                                            | $           | (.19)                                                                                  |         |                                                                                                                          |
| Total                    Net Loss Per Share                          | $                                                                                 | (.68)       | $                                                                                                            | (.88)       |                                                                                   |         |
| Weighted                    Average Number of Shares Outstanding     | 3,821,487                                                                         |        | 3,489,011                                                                                                    |        |                                                                                   |
|                                                                 |                                                                              |        |                                                                                                         |        |                                                                                   |

----

**nFinanSe      Inc.**

**(A      Development Stage Enterprise)**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                                 |   |                                                                                                   |   |                                                                                                   |   |                                                                                                                                         |
|------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                            |   | **For                the****three                months****ended****March                31,****2007** |   | **For                the****three                months****ended****March                31,****2006** |   |  **For                the period****July                10, 2000****(inception)                to****March                31,****2007** |
| **CASH                FLOWS FROM OPERATING ACTIVITIES:**                                             |   |                                                                                                   |   |                                                                                                   |   |                                                                                                                                         |
| Net                loss                                                                              | $      | (2,611,975)                                                                                            |   | (3,070,890)                                                                                            | $      | (28,191,559)                                                                                                                                 |
| **Adjustments                to reconcile net loss to net cash used in operating****Activities:**    |   |                                                                                                   |   |                                                                                                   |   |                                                                                                                                         |
| Depreciation                and amortization                                                         |   | 57,626                                                                                                 |   | 109,881                                                                                                |   | 758,698                                                                                                                                      |
| Provision                for inventory obsolescence                                                  |   | 4,607                                                                                                  |   | 221,733                                                                                                |   | 499,000                                                                                                                                      |
| Provision                for bad debts                                                               |   | -                                                                                                      |   | 135,984                                                                                                |   | 461,972                                                                                                                                      |
| Amortization                of intangible assets                                                     |   | -                                                                                                      |   | -                                                                                                      |   | 15,485                                                                                                                                       |
| Non-cash                interest expense                                                             |   | -                                                                                                      |   | -                                                                                                      |   | 1,579,020                                                                                                                                    |
| Amortization                of premium on senior secured convertible promissory                notes |   | -                                                                                                      |   | -                                                                                                      |   | (863,049)                                                                                                                                    |
| Stock                based compensation and consulting                                               |   | 730,082                                                                                                |   | 252,951                                                                                                |   | 4,907,853                                                                                                                                    |
| Purchased                in-process research and development                                         |   | -                                                                                                      |   | -                                                                                                      |   | 153,190                                                                                                                                      |
| Gain                (loss) on derivative financial instruments                                       |   | -                                                                                                      |   | 431,838                                                                                                |   | (1,845,262)                                                                                                                                  |
| Gain                on debt extinguishment                                                           |   | -                                                                                                      |   | -                                                                                                      |   | 4,685,518                                                                                                                                    |
| Gain                (loss) on disposal of assets                                                     |   | (1,633)                                                                                                |   | -                                                                                                      |   | 28,368                                                                                                                                       |
| Impairment                of assets                                                                  |   | 30,982                                                                                                 |   | -                                                                                                      |   | 1,027,537                                                                                                                                    |
| Forgiveness                of indebtedness as a result of litigation settlement                      |   | -                                                                                                      |   | -                                                                                                      |   | (50,000)                                                                                                                                     |
| **Changes                in assets and liabilities, net:**                                           |   |                                                                                                   |   |                                                                                                   |   |                                                                                                                                         |
| Receivables                                                                                          |   | 43,426                                                                                                 |   | 142,070                                                                                                |   | (316,936)                                                                                                                                    |
| Inventories                                                                                          |   | (368,785)                                                                                              |   | (38,315)                                                                                               |   | (723,562)                                                                                                                                    |
| Prepaid                expenses and other current assets                                             |   | 247,907                                                                                                |   | (9,919)                                                                                                |   | (231,027)                                                                                                                                    |
| Other                assets                                                                          |   | (7,871)                                                                                                |   | (15,332)                                                                                               |   | (37,284)                                                                                                                                     |
| Assets                of discontinued operations                                                     |   | -                                                                                                      |   | 987,297                                                                                                |   | (229,060)                                                                                                                                    |
| Accounts                payable and accrued and other liabilities                                    |   | 20,220                                                                                                 |   | (159,705)                                                                                              |   | 893,695                                                                                                                                      |
| Accrued                penalties - registration rights                                               |   | -                                                                                                      |   | -                                                                                                      |   | 98,649                                                                                                                                       |
| Deferred                revenues                                                                     |   | -                                                                                                      |   | 227                                                                                                    |   | 60,000                                                                                                                                       |
| Liabilities                of discontinued operations                                                |   | -                                                                                                      |   | (966,244)                                                                                              |   | 87,411                                                                                                                                       |
| **NET                CASH USED IN OPERATING ACTIVITIES**                                             |   | (1,855,414)                                                                                            |   | (1,978,424)                                                                                            |   | (17,231,343)                                                                                                                                 |
|                                                                                                 |   |                                                                                                   |   |                                                                                                   |   |                                                                                                                                         |
| **CASH                FLOWS FROM INVESTING ACTIVITIES:**                                             |   |                                                                                                   |   |                                                                                                   |   |                                                                                                                                         |
| Purchases                of property and equipment                                                   |   | (20,825)                                                                                               |   | (14,832)                                                                                               |   | (1,391,363)                                                                                                                                  |
| Investment                in Product Benefits Systems Corporation                                    |   | -                                                                                                      |   | -                                                                                                      |   | (15,737)                                                                                                                                     |
| Note                Receivable                                                                       |   | -                                                                                                      |   | -                                                                                                      |   | (202,000)                                                                                                                                    |
| Initial                investment in Financial Services International, Inc.                          |   | -                                                                                                      |   | -                                                                                                      |   | (10,000)                                                                                                                                     |
| Purchase                of assets from Typhoon Voice Technologies, Inc.                              |   | -                                                                                                      |   | -                                                                                                      |   | (5,000)                                                                                                                                      |
| **NET                CASH USED IN INVESTING ACTIVITIES**                                             |   | (20,825)                                                                                               |   | (14,832)                                                                                               |   | (1,624,100)                                                                                                                                  |
|                                                                                                 |   |                                                                                                   |   |                                                                                                   |   |                                                                                                                                         |

----

**nFinanSe      Inc.**

**(A      Development Stage Enterprise)**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**(Unaudited)**

*(Continued)*

|                                                                                                                                                         |   | **For                the three months ended****March                31,****2007** |   |  **For                the three months ended****March                31,****2006** |   | **For                the period July 10, 2000 (inception) to****March                31,****2007** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|
| **CASH                FLOWS FROM FINANCING ACTIVITIES:**                                                                                                     |   |                                                                              |   |                                                                                    |   |                                                                                               |
| Proceeds                from issuance of Series A Convertible Preferred Stock                                                                                |   | -                                                                                 |   |                                                                                    |   | 4,000,000                                                                                          |
| Payment                for stock issuance costs                                                                                                              |   | (5,622)                                                                           |   | -                                                                                       |   | (148,222)                                                                                          |
| Proceeds                from borrowings                                                                                                                      |   | -                                                                                 |   | -                                                                                       |   | 5,365,162                                                                                          |
| Repayments                of notes payable                                                                                                                   |   | -                                                                                 |   | -                                                                                       |   | (147,912)                                                                                          |
| Collection                of note receivable from stockholder                                                                                                |   | -                                                                                 |   | -                                                                                       |   | 3,000,000                                                                                          |
| Proceeds                from the issuance of common stock (including subscribed                stock)                                                        |   | -                                                                                 |   | 500,000                                                                                 |   | 9,091,177                                                                                          |
| **NET                CASH PROVIDED BY FINANCING ACTIVITIES**                                                                                                 |   | (5,622)                                                                           |   | 500,000                                                                                 |   | 21,160,205                                                                                         |
|                                                                                                                                                         |   |                                                                              |   |                                                                                    |   |                                                                                               |
| **NET                CHANGE IN CASH AND CASH EQUIVALENTS**                                                                                                   |   | (1,881,861)                                                                       |   | (1,493,256)                                                                             |   | 2,304,762                                                                                          |
|                                                                                                                                                         |   |                                                                              |   |                                                                                    |   |                                                                                               |
| **CASH                AND CASH EQUIVALENTS, BEGINNING OF PERIOD**                                                                                            |   | 4,186,623                                                                         |   | 1,941,300                                                                               |   | -                                                                                                  |
|                                                                                                                                                         |   |                                                                              |   |                                                                                    |   |                                                                                               |
| **CASH                AND CASH EQUIVALENTS, END OF PERIOD**                                                                                                  | $      | 2,304,762                                                                         | $      | 448,044                                                                                 | $      | 2,304,762                                                                                          |
|                                                                                                                                                         |   |                                                                              |   |                                                                                    |   |                                                                                               |
| **SUPPLEMENTAL                DISCLOSURE OF CASH FLOW INFORMATION:**                                                                                         |   |                                                                              |   |                                                                                    |   |                                                                                               |
| Interest                paid                                                                                                                                 | $      | -                                                                                 | $      | 1,291                                                                                   | $      | 15,101                                                                                             |
| Income                taxes paid                                                                                                                             | $      | -                                                                                 | $      | -                                                                                       | $      | -                                                                                                  |
|                                                                                                                                                         |   |                                                                              |   |                                                                                    |   |                                                                                               |
| **SUPPLEMENTAL                DISCLOSURE OF NON-CASH INVESTING****AND                FINANCING ACTIVITIES:**                                                 |   |                                                                              |   |                                                                                    |   |                                                                                               |
| Acquisition                of assets by issuance of stock                                                                                                    | $      | -                                                                                 | $      | -                                                                                       | $      | 818,200                                                                                            |
|                                                                                                                                                         |   |                                                                              |   |                                                                                    |   |                                                                                               |
| Reclassification                of proceeds from sales of common stock to derivative                financial instrument liabilities                         | $      | -                                                                                 | $      | -                                                                                       | $      | 4,007,443                                                                                          |
| Dividend                on Series A Convertible Preferred Stock                                                                                              | $      | -                                                                                 | $      | -                                                                                       | $      | 1,000,000                                                                                          |
|                                                                                                                                                         |   |                                                                              |   |                                                                                    |   |                                                                                               |
| Issuance                of common stock for net assets of Pan American Energy Corporation                in a recapitalizations - see Note A                 | $      | -                                                                                 | $      | -                                                                                       | $      | 2,969,000                                                                                          |
|                                                                                                                                                         |   |                                                                              |   |                                                                                    |   |                                                                                               |
| Issuance                of common stock in lieu of cash payment of registration Penalties                                                                    | $      | -                                                                                 | $      | -                                                                                       | $      | 652,625                                                                                            |
| Conversion                of Senior Secured Convertible Promissory Notes and Accrued interest                payable to Series A Convertible Preferred Stock | $      | -                                                                                 | $      | -                                                                                       | $      | 5,327,934                                                                                          |
|                                                                                                                                                         |   |                                                                              |   |                                                                                    |   |                                                                                               |

----

**nFinanSe        Inc.**

**(A      Development Stage Enterprise)**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS **

**(Unaudited)**

|   |   |
|--------|--------|

**NOTE      A -**
**FORMATION,      BACKGROUND AND OPERATIONS OF THE COMPANY**

**,**

----

**Discontinued      Operations and Reclassifications **

**Revenue      Recognition **

**Accounts      Receivable and Allowance for Doubtful Accounts**

----

**Cash      and Cash Equivalents**

**Inventories**

**Use      of Estimates**

**Property      and Equipment**

----

**Long-Lived      Assets**

**Advertising      Costs**

**Research      and Development**

**Net      Loss Per Share **

**Income      Taxes**

----

**Convertible      Debt and Equity Instruments Issued with Registration Rights      Agreements**

**Financial      Instruments and Concentrations**

----

**Stock-Based      Compensation**

**Reclassifications**

**NOTE      B - GOING CONCERN**

----

**NOTE      **
**C      - DISPOSAL OF PROPERTY AND EQUIPMENT**

**NOTE      D - **
**COMMITMENTS      AND CONTINGENCIES**

**Operating      Leases**

| Twelve                month period                ending                March                31, |   |    | Amounts |   |
|--------------------------------------------------------------------------------------------------|--------|---------|---------|--------|
|                                                                                             |   |    |    |
| 2008                                                                                             | $      | 267,500 |    |
| 2009                                                                                             |   | 114,700 |    |
|                                                                                             |   |    |    |
| Total                                                                                            | $      | 382,200 |    |
|                                                                                             |   |    |    |

----

**Employment      Agreements **

| §   | The                employment agreement with our Chief Executive Officer, Jerry R. Welch,                which has a term from September 5, 2006 to December 31, 2008, provides                him                with an annual salary of $235,000. The agreement is to be automatically                renewed indefinitely for succeeding terms of two years unless otherwise                terminated in accordance with the agreement. Additionally, Mr. Welch                received the option to purchase approximately 603,400 shares of our                common                stock at $1.50 per share (the “Option Shares”), which when using                Black-Scholes results in an aggregate fair value of approximately                $845,000. This amount is being recognized as stock based compensation                expense on a straight line basis as the options vest. The grant was                equal                to 4.25% of the outstanding shares of our total issued stock, options                and                warrants as of December 28, 2006 (the date we completed the permanent                financing required for the grant of such options). The Option Shares                are                divided into 28 equal installments. The first six installments vested                on                February 28, 2007 and additional installments vest on the final day                of                each month through December 31, 2008. Notwithstanding this vesting                schedule, the options will be immediately fully vested and exercisable                in                the event of a change in control (as defined in the agreement), and/or                the                death or total disability of Mr. Welch during the term of his employment.                To the extent it is not previously exercised, the option terminates                on the                earlier of (i) the date five years following the grant date or (ii)                at the                date 12 months following the cessation of Mr. Welch’s employment with us.                Mr. Welch also receives a performance-based bonus and certain medical                and                other benefits. If we terminate Mr. Welch without cause, we will                be                required to pay severance to him in the amount of compensation and                benefits he would have otherwise earned in the remaining term of                the                agreement or twelve months, whichever period is                shorter. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | The                employment agreement with our Chief Financial Officer, Raymond Springer,                which has a term from September 5, 2006 to December 31, 2008, provides                him                with an annual salary of $185,000. Additionally, Mr. Springer received                the                option to purchase approximately 284,000 shares of our common stock                at                $1.50 per share (the “Option Shares”), which when using Black-Scholes                results in an aggregate fair value of approximately $400,000. This                amount                is being recognized as stock based compensation expense on a straight                line                basis as the options vest. This grant was equal to 2.0% of the outstanding                shares of our total issued stock, options and warrants on December                28,                2006 (the date we completed the permanent financing required for                the grant                of such shares). The Option Shares are divided into 28 equal installments.                The first six installments vested on |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Service      and Purchase Agreements**

**Pending      or Threatened Litigation**

**Accrued      Registration Rights Penalties**

----

**NOTE      **
**E      - STOCK OPTIONS AND WARRANTS**

|                                                                                                                                                             |      | Number                          of Options |      | Weighted                          average exercise                          price                          per share(priced                          at date of grant) |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------------------------------------------|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                                                             |      |                                       |      |                                                                                                                                                                   |   |   |
| Outstanding                          at December 31, 2006                                                                                                        |      | 638,625                                    | $         | 7.63                                                                                                                                                                   |   |   |
|                                                                                                                                                             | Granted   |                                       | 1,269,902 | $                                                                                                                                                                      | 1.69   |   |   |
|                                                                                                                                                             | Cancelled |                                       | (87,852)  | $                                                                                                                                                                      | 10.83  |   |   |
|                                                                                                                                                             |      |                                       |      |                                                                                                                                                                   |   |   |   |
| Outstanding                          at March 31, 2007                                                                                                           |      | 1,820,675                                  | $         | 3.33                                                                                                                                                                   |   |   |
|                                                                                                                                                             |      |                                       |      |                                                                                                                                                                   |   |   |
| Options                          granted at or above market value during the three months                          ended March 31,                          2007 |      | 1,269,902                                  |      |                                                                                                                                                                   |   |   |

----

|                                              |    |                         |    | Options                outstanding to employees and                non-employee directors |    | Options                exercisable                           |
|--------------------------------------------------------|--------------|-----------------------------------|--------------|-------------------------------------------------------------------------------------------|--------------|--------------------------------------------------------------|
|                                                   |         |                              |         |                                                                                      |         |                                                         |
| Range                of exercise                prices |    | Number                outstanding |    | Weightedaverage                remainingcontractuallife                in years           |    | Weightedaverage                exercise                price |    | Number                Exercisable |    | Weighted                average                exercise                price                per share |
|                                                   |         |                              |         |                                                                                      |         |                                                         |   |   |   |   |
| $1.50                                                  |         | 1,189,902                         |         | 4.8                                                                                       |  $      | 1.50                                                         |   | 226,017 |  $ | 1.50 |
| $4.00-$                14.00                           |         | 608,273                           |         | 3.6                                                                                       | $            | 6.20                                                         |   | 550,919 | $ | 6.08 |
| $14.01-$24.00                                          |         | 16,250                            |         | 2.9                                                                                       | $            | 21.37                                                        |   | 16,250 | $ | 21.37 |
| $24.01-$32.00                                          |         | 6,250                        |         |  1.5                                                                                 | $            | 26.40                                                   |   | 6,250  | $ | 26.40  |
|                                              |         | 1,820,675                         |    |  4.4                                                                                 |  $      |  3.33                                                   |    | 799,436 |  $ |  4.83 |

**Consultant      Options **

**Non      Employee Director Options**

**Outstanding      W**
**arrants      **

|   |   |
|--------|--------|

**End      of Financial Statements. **

----

**Item      2. Management’s Discussion and Analysis or Plan of      Operation.**

**Management’s      Discussion and Analysis of Financial Condition and Results of      Operations.**

**Overview.      **

**Discontinued      Operations. **

**Results      of Operations**

----

**Lack        of Profitability of Business Operations since 2001. **

**Revenues**

----

**Operating      Expenses.  **

| ·   | **Cost                of Revenues**Cost                of revenues for the three months ended March 31, 2007 and the three                months                ended March 31, 2006 were $63,503 and $247,494, respectively. The                2006                amount includes a provision for inventory obsolescence of approximately                $222,000 that resulted from a dispute with one of our vendors which                effectively made certain inventories unsalable. Exclusive of this                amount,                cost of revenues increased approximately $38,000 during the quarter                ended                March 31, 2007 compared to the quarter ended March 31, 2006 because                of                certain costs we incurred related to the distribution and maintenance                of                our cards. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | **Stock                based employee compensation expense.**                Stock based compensation and consulting expense increased to $730,082,                a                $477,131 increase over the same period in 2006. The primary reason                for the                increase was a result of stock-based compensation expense of approximately                $311,000 for the options issued to Mr. Welch and Mr. Springer and                approximately $298,000 of such expense from options granted to our                Board                of Directors in the quarter ended March 31,                2007. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | **Other                employee compensation and benefits.**Other                employee compensation and benefits increased 100% or $565,589 to                $1,129,140. This increase is due to hiring more sales and support                personnel related to the nFinanSe Discover® Network Card program, and the                immediate recognition of $175,701 of expense related to the separation                agreement that was entered into between the company and Clifford                Wildes                (our former chairman) in January                2007. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | **Other                professional and consulting fees.**                Other professional and consulting fees decreased 34% from $381,507                to                $250,474. The decrease is primarily attributable to a reduction in                fees                associated with our Registration Statement on Form SB-2 (which became                effective on June 14, 2006) and a reduction in legal and consulting                fees                incurred in connection with licensing and compliance                efforts. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | **Travel                and entertainment.**                Travel and entertainment increased from $43,473 to $110,064, a 153%                increase. This is primarily attributable to the increase in travel                expenses incurred by our sales personnel this year versus last                year. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | **Impairment                of Assets.**                Impairment of assets expense increased $30,983 from $0. This is                attributable to management's decision to write-off several deposits                related to obsolete card programs and leased                premises. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | **Selling                and marketing expenses.**                Selling and marketing expenses increased from $18,364 to $65,948,                a 259%                increase. The increase is attributable to additional expenses related                to                attending industry trade shows as well as advertising, promoting                and                selling our new nFinanSe Discover® Network                Cards. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | **Occupancy                and equipment.**                Occupancy and equipment expenses increased $37,738 to $162,935, a                30%                increase. This is primarily attributable to an increase in equipment                depreciation expense and other miscellaneous occupancy and equipment                expenses arising from the growth of our staff, and an increase in                office                rental expense. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | **Other.**                Other expense decreased from $199,782 to $92,322, a 54% decrease.                This                decrease was primarily attributable to a decrease in bad debt expense                of                approximately $135,000. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Other      Non-Operating Income and Expense.**

| ·   | **Interest                income.**Interest                income increased from $4,654 to $23,441. This increase is primarily                attributable to the interest income received on the overnight investment                      of the higher bank balances. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | **Loss on Derivative Financial              Instruments**.              ** **We              recognized a net loss on our non-trading derivative financial instruments              of $431,838 for the three months ended March 31, 2006. We no longer              have              any outstanding derivative financial instrument liabilities and,              accordingly, we have no gains or losses on such instruments during              the              quarter ended March 31, 2007. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | **Registration                Rights penalties**.                Registration penalties incurred during the quarter ended March 31,                2006                arose from amounts due to investors because we were late in completing                the                registration of certain common shares and warrants sold to investors                in                two private placements. We record registration penalties when they                are                both probable of being incurred and reasonably estimable. Registration                penalties decreased from $142,254 during the three months ended March                31,                2006 to $0 for the three months ended March 31, 2007. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | **Gain                (Loss) from Discontinued Operations.**                During the year ended September 30, 2006, we discontinued our prepaid                calling card business and, accordingly, our statements of operations                for                all periods presented have been restated to reflect the prepaid calling                card business as a discontinued operation. Gain from our discontinued                operations was $4,940 for the three months ended March 31, 2007 versus                a                loss of $672,782 for the prior                year. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Liquidity      and Capital Resources. **
** **

----

**Changes      in Number of Employees and Location. **

**Off-Balance      Sheet Arrangements **

**Operating      Leases**

| Twelve                  monthsending |   |    | Amounts |   |
|--------------------------------------|--------|---------|---------|--------|
|                                 |   |    |    |
| March                  31, 2008      | $      | 267,500 |    |
| March                  31, 2009      |   | 114,700 |    |
|                                 |   |    |    |
| Total                                | $      | 382,200 |    |
|                                 |   |    |    |

----

**Employment      Agreements**

| ·   | The                employment agreement with our Chief Executive Officer, Jerry R. Welch,                which has a term from September 5, 2006 to December 31, 2008, provides                him                with an annual salary of $235,000. The agreement is to be automatically                renewed indefinitely for succeeding terms of two years unless otherwise                terminated in accordance with the agreement. Additionally, Mr. Welch                received the option to purchase approximately 603,400 shares of our                common                stock at $1.50 per share (the “Option Shares”), which when using                Black-Scholes results in an aggregate fair value of approximately                $845,000. This amount is being recognized as stock based compensation                on a                straight line basis as the options vest. The grant was equal to 4.25%                of                the outstanding shares of our total issued stock, options and warrants                as                of December 28, 2006 (the date we completed the permanent financing                required for the grant of such options). The Option Shares are divided                into 28 equal installments. The first six installments vested on                February                28, 2007 and additional installments vest on the final day of each                month                through December 31, 2008. Notwithstanding this vesting schedule,                the                options will be immediately fully vested and exercisable in the event                of a                change in control (as defined in the agreement), and/or the death                or total                disability of Mr. Welch during the term of his employment. To the                extent                it is not previously exercised, the option terminates on the earlier                of                (i) the date five years following the grant date or (ii) at the date                12                months following the cessation of Mr. Welch’s employment with us. Mr.                Welch also receives a performance-based bonus and certain medical                and                other benefits. If we terminate Mr. Welch without cause, we will                be                required to pay severance to him in the amount of compensation and                benefits he would have otherwise earned in the remaining term of                the                agreement or twelve months, whichever period is                shorter. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                employment agreement with our Chief Financial Officer, Raymond Springer,                which has a term from September 5, 2006 to December 31, 2008, provides                him                with an annual salary of $185,000. Additionally, Mr. Springer received                the                option to purchase approximately 284,000 shares of our common stock                at                $1.50 per share (the “Option Shares”), which when using Black-Scholes                results in an aggregate fair value of approximately $400,000. This                amount                is being recognized as stock based compensation on a straight line                basis                as the options vest. This grant was equal to 2.0% of the outstanding                shares of our total issued stock, options and warrants on December                28,                2006 (the date we completed the permanent financing required for                the grant                of such shares). The Option Shares are divided into 28 equal installments.                The first six installments vested on February 28, 2007, and additional                installments vest on the final day of each month through December                31,                2008. Notwithstanding this vesting schedule, the options will be                immediately fully vested and exercisable in the event of a change                in                control (as defined in the agreement), and/or the death or total                disability of Mr. Springer during the term of his employment. To                the                extent it is not previously exercised, the option terminates on the                earlier of (i) the date five years following the grant date or (ii)                at the                date 12 months following the cessation of Mr. Springer’s employment with                us. Mr. Springer also receives a performance-based bonus and certain                medical and other benefits. If we terminate Mr. Springer without                cause, we                will be required to pay severance to him in the amount of compensation                and                benefits he would have otherwise earned in the remaining term of                the                agreement or twelve months, whichever is                shorter. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Service      and Purchase Agreements**

**Purchase      Commitments**

**Critical      Accounting Estimates **

**Item      3. Controls and Procedures.**

**A.**
**Evaluation      of Disclosure Controls and Procedures**

**B.**
**Changes      in Internal Controls over Financial Reporting**

----

**PART      II - OTHER INFORMATION **

**Item      1. Legal Proceedings.**

**Item      2. Unregistered Sales of Equity Securities and Use of      Proceeds.**

**Item      3. Defaults upon Senior Securities.**

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

----

|   |      |   |        |   |        |   |
|--------|-----------|--------|-------------|--------|-------------|--------|
|   | **For**   |   | **Against** |   | **Abstain** |   |
|   | 4,231,416 |   | 38,183      |   | 3,620       |   |

|   |      |   |        |   |        |   |
|--------|-----------|--------|-------------|--------|-------------|--------|
|   | **For**   |   | **Against** |   | **Abstain** |   |
|   | 5,682,602 |   | 165         |   | 2,700       |   |

**Item      5. Other Information.**

----

**Item      6. Exhibits.**

|                                          |   |                                                                                                                                                                                                          |
|-----------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  **Exhibit                Number**  |   |  **Description                of Exhibit**                                                                                                                                                          |
|                                          |   |                                                                                                                                                                                                          |
|  *31.1                              |   | Certification                of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002                                                                              |
|                                          |   |                                                                                                                                                                                                          |
|  *31.2                              |   | Certification                of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002                                                                              |
|                                          |   |                                                                                                                                                                                                          |
|  *32.1                              |   | Certification                of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as                adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002 |
|                                          |   |                                                                                                                                                                                                          |
|  *32.2                              |   | Certification                of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as                adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002 |
|                                          |   |                                                                                                                                                                                                          |
|  *                filed herewith.   |

----

|                                   | **NFINANSE                INC.** |
|----------------------------------------|----------------------------------|
|                                   |                             |   |
| Date: May                11, 2007 | By:                              | ***/s/                Jerry R. Welch*** |
|                                   |                             |   |
|                                   |                             | Jerry                R. Welch, Chief Executive Officer and Chairman of the Board of                Directors |
|                                   |                             |   |
|                                   |                             |   |

|                                         | **NFINANSE                INC.** |
|----------------------------------------------|----------------------------------|
|                                         |                             |   |
| Date:  May                11, 2007 | By:                              | ***/s/                Raymond P. Springer*** |
|                                         |                             |   |
|                                         |                             | Raymond                P. Springer, Chief Financial Officer |
|                                         |                             |   |
|                                         |                             |   |

----

**EXHIBITS      INDEX**

|                                          |   |                                                                                                                                                                                                          |
|-----------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  **Exhibit                Number**  |   |  **Description                of Exhibit**                                                                                                                                                          |
|                                          |   |                                                                                                                                                                                                          |
|  *31.1                              |   | Certification                of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002                                                                              |
|                                          |   |                                                                                                                                                                                                          |
|  *31.2                              |   | Certification                of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002                                                                              |
|                                          |   |                                                                                                                                                                                                          |
|  *32.1                              |   | Certification                of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as                adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002 |
|                                          |   |                                                                                                                                                                                                          |
|  *32.2                              |   | Certification                of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as                adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of                2002 |

----