----

|   | Nevada                                                     | 65-1071956                             |   |
|--------|------------------------------------------------------------|----------------------------------------|--------|
|   | (State      or other jurisdiction of                       | (IRS      Employer Identification No.) |   |
|   | incorporation      or organization)                        |                                   |   |
|   |                                                       |                                   |   |
|   | 3923      Coconut Palm Drive, Suite 107                    |                                   |   |
|   | Tampa,      Florida                                        | 33619                                  |   |
|   | (Address      of principal executive offices)              | (Zip      Code)                        |   |
|   |                                                       |                                   |   |
|   | Issuer’s      telephone number, including area code: | (813)      367-4400                    |   |

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

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

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

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

----

| nFinanSe      Inc.                        |
|------------------------------------------------|
| A      Development Stage Enterprise       |
| Table      of Contents                         |
|                                           |   |  Page      No. |
| NOTE      REGARDING FORWARD LOOKING STATEMENTS | 1 |
|                                           |   |
| PART      I - FINANCIAL INFORMATION       |   |
|                                           | Item      1.     Financial Statements:  |   |
|                                           |   | Consolidated      Balance Sheets as of April 4, 2009 (unaudited) and January 3, 2009      (audited)  | 2 |
|                                           |   | Consolidated      Statements of Operations (unaudited) for the thirteen weeks ended April 4,      2009 and March 29, 2008, and for the period July 10, 2000 (inception) to      April 4, 2009  | 3 |
|                                           |   | Consolidated      Statements of Cash Flows (unaudited) for the thirteen weeks ended April 4,      2009 and March 29, 2008, and for the period July 10, 2000 (inception) to      April 4, 2009  | 4 |
|                                           |   | Notes      to Consolidated Financial Statements (unaudited) | 6 |
|                                           |   |   |   |
|                                           | Item      2.     Management’s Discussion and Analysis of      Financial Condition and Results of Operations.  | 20 |
|                                           | Item      3.     Quantitative and Qualitative Disclosures      About Market Risk.  | 26 |
|                                           | Item      4T.     Controls and Procedures.  | 26 |
| PART      II - OTHER INFORMATION          |   |
|                                           | Item      1.     Legal Proceedings.  | 27 |
|                                           | Item      2.     Unregistered Sales of Equity Securities      and Use of Proceeds.  | 27 |
|                                           | Item      3.     Defaults Upon Senior      Securities.  | 27 |
|                                           | Item      4.     Submission of Matters to a Vote of      Security Holders.  | 27 |
|                                           | Item      5.     Other Information.  | 27 |
|                                           | Item      6.     Exhibits. | 28 |
|                                           |   |   |   |
| SIGNATURES                                     |   |

----

| · | the      extent to which we continue to experience losses;                                                                           |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|
| · | our      real property leases and expenses related thereto;                                                                          |
| · | our      ability to fund our future cash needs through public or private equity      offerings and debt financings;                  |
| · | whether      our business strategy, expansion plans and hiring needs will significantly      escalate our cash needs;                |
| · | our      need to raise additional capital and, if so, whether our success will      depend on raising such capital;                  |
| · | our      reliance on our card-issuing bank’s federal charter permitting us to offer      stored value cards in various states; |
| · | our      expectation of continued and increasing governmental regulation of the      stored value card industry;                     |
| · | the      completion of our Payment Card Industry Security and Compliance audit and      certification of our network;                |
| · | our      anticipation of future earnings volatility;                                                                                 |
| · | our      entrance into additional financings, which can result in a recognition of      derivative instrument liabilities; and       |
| · | the      hiring of a substantial number of additional employees in sales,      operations and customer service.                      |

| · | our      ability to design and market our products;                                                                                                                                                                                                                  |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | the      estimated timing of our product roll-outs;                                                                                                                                                                                                                  |
| · | our      ability to protect our intellectual property rights and operate our      business without infringing upon the intellectual property rights of      others;                                                                                                  |
| · | the      changing regulatory environment related to ourproducts;                                                                                                                                                                                                     |
| · | whether      or not markets for our products develop and, if they do develop, the pace      at which they develop;                                                                                                                                                   |
| · | our      ability to attract the qualified personnel to implement our growth      strategies,                                                                                                                                                                         |
| · | our      ability to develop sales and distribution capabilities;                                                                                                                                                                                                     |
| · | our      ability to work with our distribution partners;                                                                                                                                                                                                             |
| · | the      accuracy of our estimates and projections;                                                                                                                                                                                                                  |
| · | our      ability to fund our short-term and long-term financing    needs;                                                                                                                                                                                            |
| · | changes      in our business plan and corporate strategies; and                                                                                                                                                                                                      |
| · | other      risks and uncertainties discussed in greater detail in this quarterly      report, including those risks discussed under the heading “Management’s      Discussion and Analysis of Financial Condition and Results of      Operations.” |

----

|                                                                                                                                                                                                                                                                                                                                                                           |   | April      4,     |        |   | January      3, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|-----------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                           |   | 2009              |        |   | 2009            |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |  (unaudited) |        |   |  (audited) |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                         |   |                   |        |   |            |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |              |        |   |            |   |
| CURRENT      ASSETS:                                                                                                                                                                                                                                                                                                                                                           |   |              |        |   |            |   |
| Cash      and cash equivalents                                                                                                                                                                                                                                                                                                                                                 |   | $                 | 543,187     |   |            | $      | 475,608 |   |
| Restricted      cash                                                                                                                                                                                                                                                                                                                                                           |   |              | 521,250     |   |            |   | 472,500 |   |
| Receivables:                                                                                                                                                                                                                                                                                                                                                                   |   |              |        |   |            |   |   |   |
| Accounts      (net of allowance for doubtful accounts of $0 and $0,      respectively)                                                                                                                                                                                                                                                                                         |   |              | 43,792      |   |            |   | 52,078 |   |
| Other                                                                                                                                                                                                                                                                                                                                                                          |   |              | 18,422      |   |            |   | 25,776 |   |
| Prepaid      expenses and other current assets, ,including prepaid marketing costs of      approximately $164,000 and $224,600, respectively                                                                                                                                                                                                                                   |   |              | 355,643     |   |            |   | 402,505 |   |
| Current      portion of deferred financing costs (net of accumulated amortization of      $153,202 and $38,301, respectively)                                                                                                                                                                                                                                                  |   |              | 306,405     |   |            |   | 421,306 |   |
| Inventories                                                                                                                                                                                                                                                                                                                                                                    |   |              | 2,823,169   |   |            |   | 2,885,779 |   |
|                Total      current assets                                                                                                                                                                                                                                                            |   |              | 4,611,868   |   |            |   | 4,735,552 |   |
| PROPERTY      AND EQUIPMENT                                                                                                                                                                                                                                                                                                                                                    |   |              | 561,131     |   |            |   | 625,746 |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |              |        |   |            |   |   |   |
| OTHER      ASSETS                                                                                                                                                                                                                                                                                                                                                              |   |              |        |   |            |   |   |   |
| Deferred      financing costs (net of accumulated amortization of $673,375 and $127,532,      respectively)                                                                                                                                                                                                                                                                    |   |              | 1,751,689   |   |            |   | 1,402,849 |   |
| Deferred      cost of marketing incentive agreement warrants     (net      of accumulated amortization of $4,786 and $4,309,      respectively)                                                                                                                                                                                                       |   |              | 262,500     |   |            |   | 381,250 |   |
| Other      assets                                                                                                                                                                                                                                                                                                                                                              |   |              | 256,408     |   |            |   | 272,404 |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |              |        |   |            |   |   |   |
| TOTAL      ASSETS                                                                                                                                                                                                                                                                                                                                                              |   | $                 | 7,443,596   |   |            | $      | 7,417,801 |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |              |        |   |            |   |   |   |
| LIABILITIES AND      STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                |   |              |        |   |            |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |              |        |   |            |   |   |   |
| CURRENT      LIABILITIES:                                                                                                                                                                                                                                                                                                                                                      |   |              |        |   |            |   |   |   |
| Accounts      payable                                                                                                                                                                                                                                                                                                                                                          |   | $                 | 259,544     |   |            | $      | 343,020 |   |
| Accrued      personnel costs                                                                                                                                                                                                                                                                                                                                                   |   |              | 197,363     |   |            |   | 105,772 |   |
| Accrued      inventory liability                                                                                                                                                                                                                                                                                                                                               |   |              | -           |   |            |   | 210,159 |   |
| Accrued      lease and contractual obligations                                                                                                                                                                                                                                                                                                                                 |   |              | 125,324     |   |            |   | 150,241 |   |
| Credit      facility loans outstanding                                                                                                                                                                                                                                                                                                                                         |   |              | 3,900,000   |   |            |   | 1,200,000 |   |
| Deferred      revenues                                                                                                                                                                                                                                                                                                                                                         |   |              | 29,167      |   |            |   | 31,250 |   |
| Other      accrued liabilities                                                                                                                                                                                                                                                                                                                                                 |   |              | 394,794     |   |            |   | 522,113 |   |
|                Total      current liabilities                                                                                                                                                                                                                                                       |   |              | 4,906,192   |   |            |   | 2,562,555 |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |              |        |   |            |   |   |   |
| COMMITMENTS      AND CONTINGENCIES                                                                                                                                                                                                                                                                                                                                             |   |              |        |   |            |   |   |   |
| STOCKHOLDERS’      EQUITY:                                                                                                                                                                                                                                                                                                                                               |   |              |        |   |            |   |   |   |
| Preferred      stock - $.001 par value:  25,000,000 shares authorized;      12,537,984 and 12,537,984  shares issued and outstanding on      April 4, 2009 and January 3, 2009, respectively, as    follows:                                                                                                                                               |   |              |        |   |            |   |   |   |
|    Series      A Convertible Preferred Stock – 9,330,514 shares authorized; 7,500,484 and      7,500,484 shares  issued and outstanding with a liquidation      value of $7,593,983 and $7,692,620 (including undeclared accumulated      dividends in arrears of $93,499 and $192,136) at April 4, 2009 and January      3, 2009, respectively |   |              | 7,500       |   |            |   | 7,500 |   |
|    Series      B Convertible Preferred Stock – 1,000,010 shares authorized; 1,000,000      shares issued and outstanding with a liquidation value of $3,000,000 at      April 4, 2009 and January 3, 2009,respectively                                                                                                                                    |   |              | 1,000       |   |            |   | 1,000 |   |
|    Series      C Convertible Preferred Stock – 4,100,000 shares authorized; 4,037,500      shares issued and outstanding with a liquidation value of $8,075,000 at      April 4, 2009 and January 3, 2009, respectively                                                                                                                                   |   |              | 4,038       |   |            |   | 4,038 |   |
| Common      stock - $0.001 par value: 200,000,000 shares authorized; 9,344,108      and  9,344,108 shares issued and outstanding as of April 4, 2009      and January 3, 2009, respectively                                                                                                                                                                          |   |              | 9,344       |   |            |   | 9,344 |   |
| Common      stock dividend distributable- $0.001 par value:  198,779 shares      distributable                                                                                                                                                                                                                                                                       |   |              | 199         |   |            |   | - |   |
| Additional      paid-in capital                                                                                                                                                                                                                                                                                                                                                |   |              | 57,973,583  |   |            |   | 56,770,705 |   |
| Deficit      accumulated during the development stage                                                                                                                                                                                                                                                                                                                          |   |              | (55,458,260 | )      |            |   | (51,937,341 | ) |
|                Total      stockholders’ equity                                                                                                                                                                                                                                                |   |              | 2,537,404   |   |            |   | 4,855,246 |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |              |        |   |            |   |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                          |   | $                 | 7,443,596   |   |            | $      | 7,417,801 |   |
|                                                                                                                                                                                                                                                                                                                                                                           |   |              |        |   |            |   |   |   |

----

|                                                                                    |   | For      thethirteenweeks      endedApril      4, 2009 |       |   | For      thethirteenweeks      endedMarch      29, 2008 |   |       | For      the periodJuly      10, 2000(inception)      toApril      4, 2009 |   |
|-----------------------------------------------------------------------------------------|--------|--------------------------------------------------------|------------|--------|---------------------------------------------------------|--------|------------|---------------------------------------------------------------------------------|--------|
| REVENUES                                                                                |   | $                                                      | (5,654     | )      |                                                    | $      | 8,647      |                                                                            |   | $ | 1,233,923 |   |
|                                                                                    |   |                                                   |       |   |                                                    |   |       |                                                                            |   |   |   |   |
| OPERATING      EXPENSES                                                                 |   |                                                   |       |   |                                                    |   |       |                                                                            |   |   |   |   |
| Transaction      and operating expenses                                                 |   |                                                   | 540,762    |   |                                                    |   | 453,306    |                                                                            |   |   | 5,306,953 |   |
| Selling      and marketing expenses                                                     |   |                                                   | 499,096    |   |                                                    |   | 915,036    |                                                                            |   |   | 8,539,073 |   |
| General      and administrative expenses                                                |   |                                                   | 1,511,232  |   |                                                    |   | 2,022,925  |                                                                            |   |   | 32,014,828 |   |
|    Total      operating expenses                                         |   |                                                   | 2,551,090  |   |                                                    |   | 3,391,267  |                                                                            |   |   | 45,860,854 |   |
|                                                                                    |   |                                                   |       |   |                                                    |   |       |                                                                            |   |   |   |   |
| Loss      before other income (expense)                                                 |   |                                                   | (2,556,744 | )      |                                                    |   | (3,382,620 | )                                                                               |   |   | (44,626,931 | ) |
|                                                                                    |   |                                                   |       |   |                                                    |   |       |                                                                            |   |   |   |   |
| Other      income (expense):                                                            |   |                                                   |       |   |                                                    |   |       |                                                                            |   |   |   |   |
| Interest      expense                                                                   |   |                                                   | (773,511   | )      |                                                    |   | (416       | )                                                                               |   |   | (2,770,272 | ) |
| Interest      income                                                                    |   |                                                   | -          |   |                                                    |   | 997        |                                                                            |   |   | 1,164,425 |   |
| Gain      on derivative instruments                                                     |   |                                                   | -          |   |                                                    |   | -          |                                                                            |   |   | 1,449,230 |   |
| Loss      from litigation                                                               |   |                                                   | -          |   |                                                    |   | -          |                                                                            |   |   | (105,500 | ) |
| Loss      on debt extinguishment                                                        |   |                                                   | -          |   |                                                    |   | -          |                                                                            |   |   | (4,685,518 | ) |
| Registration      rights penalties                                                      |   |                                                   | -          |   |                                                    |   | -          |                                                                            |   |   | (98,649 | ) |
| Other      income (expense)                                                             |   |                                                   | (1,609     | )      |                                                    |   | -          |                                                                            |   |   | (96,223 | ) |
|    Total      other income (expense)                                     |   |                                                   | (775,120   | )      |                                                    |   | 581        |                                                                            |   |   | (5,142,507 | ) |
|                                                                                    |   |                                                   |       |   |                                                    |   |       |                                                                            |   |   |   |   |
| Loss      from continuing operations                                                    |   |                                                   | (3,331,864 | )      |                                                    |   | (3,382,039 | )                                                                               |   |   | (49,769,438 | ) |
|                                                                                    |   |                                                   |       |   |                                                    |   |       |                                                                            |   |   |   |   |
| Loss      from discontinued operations                                                  |   |                                                   | -          |   |                                                    |   | -          |                                                                            |   |   | (3,861,579 | ) |
|                                                                                    |   |                                                   |       |   |                                                    |   |       |                                                                            |   |   |   |   |
| Net      loss                                                                           |   |                                                   | (3,331,864 | )      |                                                    |   | (3,382,039 | )                                                                               |   |   | (53,631,017 | ) |
| Dividends      paid on Series A Convertible      Preferred    Stock |   |                                                   | -          |   |                                                    |   | (3,151     | )                                                                               |   |   | (1,827,242 | ) |
| Undeclared      and unpaid dividends on Series A Convertible Preferred    Stock         |   |                                                   | (93,499    | )      |                                                    |   | (93,705    | )                                                                               |   |   | (96,582 | ) |
| Net      loss attributable to common stockholders                                       |   | $                                                      | (3,425,363 | )      |                                                    | $      | (3,478,895 | )                                                                               |   | $ | (55,554,841 | ) |
| Net      loss per share - basic and diluted:                                            |   |                                                   |       |   |                                                    |   |       |                                                                            |   |   |   |   |
| Continuing      operations                                                              |   | $                                                      | (0.36      | )      |                                                    | $      | (0.46      | )                                                                               |   |   |   |   |
| Discontinued      operations                                                            |   | $                                                      | -          |   |                                                    | $      | -          |                                                                            |   |   |   |   |
| Total      net loss per share                                                           |   | $                                                      | (0.36      | )      |                                                    | $      | (0.46      | )                                                                               |   |   |   |   |
| Weighted      average number of shares outstanding                                      |   |                                                   | 9,400,108  |   |                                                    |   | 7,544,153  |                                                                            |   |   |   |   |
|                                                                                    |   |                                                   |       |   |                                                    |   |       |                                                                            |   |   |   |   |

----

|                                                                                                                       |   | For      thethirteen weeks      endedApril      4, 2009 |       |   | For      thethirteen weeks      endedMarch      29, 2008 |   |       | For      the periodJuly      10, 2000(inception)      toApril      4, 2009 |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|------------|--------|---------------------------------------------------------------|--------|------------|---------------------------------------------------------------------------------|--------|
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                                                 |   |                                                         |       |   |                                                          |   |       |                                                                            |   |
|     Net      loss                                                                                      |   | $                                                            | (3,331,865 | )      |                                                          | $      | (3,382,039 | )                                                                               |   | $ | (53,631,019 | ) |
|     Adjustments      to reconcile net loss to net cash used in operating      activities:              |   |                                                         |       |   |                                                          |   |       |                                                                            |   |   |   |   |
|        Depreciation      and amortization                                               |   |                                                         | 63,006     |   |                                                          |   | 78,416     |                                                                            |   |   | 1,313,809 |   |
|        Provision      for inventory obsolescence                                        |   |                                                         | 59,926     |   |                                                          |   | 28,971     |                                                                            |   |   | 725,733 |   |
|        Provision      for bad debts                                                     |   |                                                         | -          |   |                                                          |   | -          |                                                                            |   |   | 461,972 |   |
|        Amortization      of intangible assets                                           |   |                                                         | -          |   |                                                          |   | -          |                                                                            |   |   | 15,485 |   |
|        Stock-based      compensation and consulting                                     |   |                                                         | 109,417    |   |                                                          |   | 600,015    |                                                                            |   |   | 8,204,219 |   |
|        Purchased      in process research and development                               |   |                                                         | -          |   |                                                          |   | -          |                                                                            |   |   | 153,190 |   |
|        Gain      on derivative instruments                                              |   |                                                         | -          |   |                                                          |   | -          |                                                                            |   |   | (1,449,230 | ) |
|        Loss      on debt extinguishments                                                |   |                                                         | -          |   |                                                          |   | -          |                                                                            |   |   | 4,685,518 |   |
|        Loss      on disposal of assets                                                  |   |                                                         | 1,609      |   |                                                          |   | -          |                                                                            |   |   | 30,372 |   |
|        Loss      from impairment of assets                                              |   |                                                         | 118,276    |   |                                                          |   | -          |                                                                            |   |   | 1,588,359 |   |
|        Debt      forgiveness as a result of      litigation   settlement |   |                                                         | -          |   |                                                          |   | -          |                                                                            |   |   | (50,000 | ) |
|        Non-cash      interest expense                                                   |   |                                                         | 555,767    |   |                                                          |   | -          |                                                                            |   |   | 1,459,015 |   |
|        Other      non-cash expense                                                      |   |                                                         | 474        |   |                                                          |   | 86         |                                                                            |   |   | 10,383 |   |
|       Changes in assets and      liabilities, net:                                           |   |                                                         |       |   |                                                          |   |       |                                                                            |   |   |   |   |
|         Restricted      cash                                                       |   |                                                         | (48,750    | )      |                                                          |   | -          |                                                                            |   |   | (521,250 | ) |
|         Receivables                                                                |   |                                                         | 15,639     |   |                                                          |   | 15,303     |                                                                            |   |   | (361,923 | ) |
|         Prepaid      expenses and other current assets                             |   |                                                         | 161,764    |   |                                                          |   | (684,748   | )                                                                               |   |   | (423,733 | ) |
|         Inventories                                                                |   |                                                         | 2,684      |   |                                                          |   | (374,534   | )                                                                               |   |   | (3,418,688 | ) |
|         Other      assets                                                          |   |                                                         | 15,996     |   |                                                          |   | (8,400     | )                                                                               |   |   | (205,596 | ) |
|         Assets      of discontinued operations                                     |   |                                                         | -          |   |                                                          |   | -          |                                                                            |   |   | (229,060 | ) |
|         Accounts      payable and accrued  liabilities                   |   |                                                         | (354,280   | )      |                                                          |   | 243,813    |                                                                            |   |   | 1,158,835 |   |
|         Accrued      registration rights penalties                                 |   |                                                         | -          |   |                                                          |   | -          |                                                                            |   |   | 98,649 |   |
|         Deferred      revenues                                                     |   |                                                         | (2,084     | )      |                                                          |   | (18,750    | )                                                                               |   |   | 29,167 |   |
| NET      CASH USED IN OPERATING ACTIVITIES                                                                                 |   |                                                         | (2,632,421 | )      |                                                          |   | (3,501,867 | )                                                                               |   |   | (40,355,793 | ) |
|                                                                                                                       |   |                                                         |       |   |                                                          |   |       |                                                                            |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                                                 |   |                                                         |       |   |                                                          |   |       |                                                                            |   |   |   |   |
|   Purchases      of property and equipment                                                                       |   |                                                         | -          |   |                                                          |   | (54,847    | )                                                                               |   |   | (2,110,706 | ) |
|   Early      redemption of short-term investment                                                                 |   |                                                         | -          |   |                                                          |   | 725,497    |                                                                            |   |   | (2,504 | ) |
|   Investment      in Product Benefits Systems Corporation                                                        |   |                                                         | -          |   |                                                          |   | -          |                                                                            |   |   | (15,737 | ) |
|   Cash      advanced under note receivable                                                                       |   |                                                         | -          |   |                                                          |   | -          |                                                                            |   |   | (202,000 | ) |
|   Other                                                                                                          |   |                                                         | -          |   |                                                          |   | -          |                                                                            |   |   | (15,000 | ) |
| NETCASH PROVIDED BY (USED      IN)   INVESTING ACTIVITIES                                                   |   |                                                         | -          |   |                                                          |   | 670,650    |                                                                            |   |   | (2,345,947 | ) |
|                                                                                                                       |   |                                                         |       |   |                                                          |   |       |                                                                            |   |   |   |   |

----

|                                                                            |   | For      thethirteenweeks      endedApril      4, 2009 |      |   | For      the thirteenweeks      endedMarch      29, 2008 |   |      | For      theperiodJuly      10, 2000(inception)      toApril      4, 2009 |   |
|---------------------------------------------------------------------------------|--------|--------------------------------------------------------|-----------|--------|----------------------------------------------------------|--------|-----------|---------------------------------------------------------------------------|--------|
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                      |   |                                                   |      |   |                                                     |   |      |                                                                      |   |
|   Proceeds      from issuance of Series A Convertible Preferred Stock |   |                                                   | -         |   |                                                     |   | -         |                                                                      |   |   | 4,000,000 |   |
|   Proceeds      from issuance of Series B Convertible Preferred Stock |   |                                                   | -         |   |                                                     |   | -         |                                                                      |   |   | 3,000,000 |   |
|   Proceeds      from issuance of Series C Convertible Preferred Stock |   |                                                   | -         |   |                                                     |   | -         |                                                                      |   |   | 8,075,000 |   |
|   Proceeds      from borrowings                                       |   |                                                   | 2,700,000 |   |                                                     |   | -         |                                                                      |   |   | 9,265,162 |   |
|   Repayments      of notes payable                                    |   |                                                   | -         |   |                                                     |   | -         |                                                                      |   |   | (147,912 | ) |
|   Collections      on note receivable from stockholder                |   |                                                   |      |   |                                                     |   | -         |                                                                      |   |   | 3,000,000 |   |
|   Payment      for deferred financing costs                           |   |                                                   | -         |   |                                                     |   | -         |                                                                      |   |   | (459,606 | ) |
|   Payments      for stock issuance costs                              |   |                                                   | -         |   |                                                     |   | (78,000   | )                                                                         |   |   | (1,496,741 | ) |
|   Proceeds      from the exercise of vested stock options             |   |                                                   | -         |   |                                                     |   | -         |                                                                      |   |   | 8,249 |   |
|   Proceeds      from the issuance of Common Stock                     |   |                                                   | -         |   |                                                     |   | 1,725,000 |                                                                      |   |   | 18,000,775 |   |
| NET      CASH PROVIDED BY FINANCING ACTIVITIES                                  |   |                                                   | 2,700,000 |   |                                                     |   | 1,647,000 |                                                                      |   |   | 43,244,927 |   |

| NET      CHANGE IN CASH AND CASH EQUIVALENTS                                                                                       |   |   | 67,579  |   |   |   | (1,184,217 | )      |   |   | 543,187   |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|------------|--------|--------|--------|-----------|--------|
|                                                                                                                               |   |   |    |   |   |   |       |   |   |   |      |   |
| CASH      AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                                                                |   |   | 475,608 |   |   |   | 2,497,365  |   |   |   | -         |   |
|                                                                                                                               |   |   |    |   |   |   |       |   |   |   |      |   |
| CASH      AND CASH EQUIVALENTS, END OF PERIOD                                                                                      |   | $      | 543,187 |   |   | $      | 1,313,148  |   |   | $      | 543,187   |   |
|                                                                                                                               |   |   |    |   |   |   |       |   |   |   |      |   |
| SUPPLEMENTAL      DISCLOSURE OF CASH FLOW INFORMATION:                                                                             |   |   |    |   |   |
| Interest      paid                                                                                                                 |   | $      | 216,942 |   |   | $      | 416        |   |   | $      | 265,797   |   |
| Income      taxes paid                                                                                                             |   | $      | -       |   |   | $      | -          |   |   | $      | -         |   |
|                                                                                                                               |   |   |    |   |   |   |       |   |   |   |      |   |
| SUPPLEMENTAL      DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:                                                       |   |
| Acquisition      of assets by issuance of Common Stock                                                                             |   | $      | -       |   |   | $      | -          |   |   | $      | 818,200   |   |
| Reclassification      of proceeds from sales of Common Stock to derivative financial instrument      liabilities                   |   | $      | -       |   |   | $      | -          |   |   | $      | 4,007,443 |   |
| Issuance      of Common Stock for net assets of Pan American Energy Corporation in a      recapitalization  - see Note A |   | $      | -       |   |   | $      | -          |   |   | $      | 2,969,000 |   |
| Issuance      of Common Stock in lieu of cash payment of registration      penalties                                               |   | $      | -       |   |   | $      | -          |   |   | $      | 652,625   |   |
| Reclassification      of long-lived assets to assets of discontinued telecom      operations                                       |   | $      | -       |   |   | $      | -          |   |   | $      | 100,000   |   |
| Warrants      issued to DFS Services, LLC                                                                                          |   | $      | -       |   |   | $      | -          |   |   | $      | 535,302   |   |
| Warrants      issued to Lenderss                                                                                                   |   | $      | 894,682 |   |   | $      | -          |   |   | $      | 2,425,063 |   |
| Conversion      of Series A Convertible Preferred Stock to Common Stock                                                            |   | $      | -       |   |   | $      | 220,000    |   |   | $      | 1,828,000 |   |
| Dividends      on Series A Convertible Preferred Stock                                                                             |   | $      | 189,053 |   |   | $      | 395,309    |   |   | $      | 1,827,242 |   |
| Conversion      of Senior Secured Convertible Promissory Notes and accrued interest to      Series A Convertible Preferred Stock   |   | $      | -       |   |   | $      | -          |   |   | $      | 5,327,934 |   |
|                                                                                                                               |   |   |    |   |   |   |       |   |   |   |      |   |

----

----

|   | •       Wholesale fees, charged to the cardholder when our SVCs are sold and      activated and when the nFinanSe Network TM      is used to reload a card. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •       Transaction fees, paid by the applicable networks and passed through      by our card issuing banks when our SVCs are used in a purchase or ATM      transaction. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | •       Maintenance fees, charged to an SVC with a cash balance for monthly      maintenance.                                                                             |
|   | •       Interest revenue, on overnight investing of SVC balances by our card      issuing bank.                                                                           |

----

|                                                            |   | April      4, 2009 |   | January      3, 2009 |   |
|-----------------------------------------------------------------|--------|--------------------|--------|----------------------|--------|
| Finished      cards                                             | $      | 3,104,293          | $      | 2,582,661            |   |
| Inventory      in process                                       |   | 36,015             |   | 474,533              |   |
|                                                            |   | 3,140,308          |   | 3,057,194            |   |
| Reserve      for damaged and obsolete inventory at distributors |   | 317,139            |   | 171,415              |   |
|      Total      Inventories            | $      | 2,823,169          | $      | 2,885,779            |   |

----

|                                                  |   |                                                               |   |
|-------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
| Description                                           |   | Shares      of Common      Stock and Common Stock      Equivalents |   |
|                                                  |   |                                                               |   |
| Common      Stock outstanding                         |   | 9,344,108                                                          |   |
| Common      Stock dividend distributable              |   | 198,779                                                            |   |
| Series      A Convertible Preferred Stock outstanding |   | 7,500,484                                                          |   |
| Series      B Convertible Preferred Stock outstanding |   | 1,000,000                                                          |   |
| Series      C Convertible Preferred Stock outstanding |   | 4,037,500                                                          |   |
| Stock      Options outstanding                        |   | 3,052,529                                                          |   |
| Warrants      outstanding                             |   | 7,774,340                                                          |   |
|                                                  |   |                                                               |   |
| Total                                                 |   | 32,907,740                                                         |   |
|                                                  |   |                                                               |   |

----

|                                      |   |                                                      |   |                                                            |
|-------------------------------------------|--------|-----------------------------------------------------------|--------|-----------------------------------------------------------------|
| Stock-based      compensation charged to: |   | For      the thirteen      weeks ended April      4, 2009 |   | For      the thirteen      weeks ended      March      29, 2008 |
|                                      |   |                                                      |   |                                                            |
| Transaction      and operating expenses   | $      | 804                                                       | $      | 243                                                             |
| Selling      and marketing expenses       |   | 28,838                                                    |   | 62,912                                                          |
| General      and administrative expenses  |   | 79,775                                                    |   | 536,860                                                         |
| Interest      expense                     |   | 9,925                                                     |   | -                                                               |
| Total      stock-based compensation       | $      | 119,342                                                   | $      | 600,015                                                         |
|                                      |   |                                                      |   |                                                            |

----

Financial Accounting Standard No. 157, “Fair Value Measurements” (“FAS 157”) definesfair value, establishes a methodology for measuring fair value, and expands therequired disclosure for fair value measurements.  In February 2007,the FASB issued Financial Accounting Standard No. 159, “The Fair Value Option for FinancialAssets and Financial Liabilities-Including an Amendment of FASB StatementNo. 115” (“FAS 159”).  We adopted FAS 159 onDecember 30, 2007, the first day of our 2008 fiscal year. This standardpermits entities to choose to measure many financial instruments and certainother items at fair value. Although FAS 159 became effective for our 2008fiscal year, we did not elect the fair value measurement option for any of ourfinancial assets or liabilities.

----

| ·   | To      receive additional short term financing from several of our major      stakeholders, and |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | To      raise between $5 and $7 million in additional net equity capital to fund      our 2009 fiscal year operations. This additional equity is needed due to      the additional time needed to make our major retail distribution contracts      operational and reach a critical mass of cards in the      marketplace. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Issue      Date        | Warrants  |   | Fair      Value |   |
|--------|------------------------|-----------|--------|-----------------|--------|
|   | November      26, 2008 | 175,000   |   | $      40,775   |   |
|   | January      5, 2009   | 175,000   |   | 44,905          |   |
|   | January      23, 2009  | 100,000   |   | 21,610          |   |
|   | February      3, 2009  | 500,000   |   | 90,650          |   |
|   | March,      3 2009     | 500,000   |   | 40,000          |   |
|   | April      1, 2009     | 250,000   |   | 77,000          |   |
|   |   Totals     | 1,700,000 |   | $      314,940  |   |

----

|                                 | Thirteen      weeks ended |   | Thirteen      weeks ended |
|--------------------------------------|---------------------------|--------|---------------------------|
|                                 | April      4, 2009        |   | March      29, 2008       |
| Expected      term in years          | 5                         |   | 5                         |
| Expected      stock price volatility | 165%      - 191%          |   | 73.1%                     |
| Risk      free interest rate         | 1.50%                     |   | 2.67%      - 3.08%        |
| Dividend      yield                  | 0%                        |   | 0%                        |

|                                                                                     |   Number      ofoptions |   | Weighted      averageexerciseprice      per share(price      atdate      of grant) |
|------------------------------------------------------------------------------------------|-----------------------------------|--------|------------------------------------------------------------------------------------|
|                                                                                     |                              |   |                                                                               |
| Outstanding      at January 3, 2009                                                      | 2,641,779                         | $      | 3.57                                                                               |
| Granted                                                                                  | 416,500                           | $      | 1.01                                                                               |
| Cancelled                                                                                | (12,250)                          | $      | 1.85                                                                               |
| Outstanding      at April 4, 2009                                                        | 3,046,029                         | $      | 3.22                                                                               |
|                                                                                     |                              |   |                                                                               |
| Options      granted at or above market value during the period ended April 4,      2009 | 416,500                           |   |                                                                               |

----

|                              |        |   | Options      outstanding |   |      | Options      exercisable                              |   |
|-----------------------------------|-------------|--------|--------------------------|--------|-----------|-------------------------------------------------------|--------|
|                              |        |   |                     |   |      |                                                  |   |   |   |   |   |   |   |   |   |   |
| Range      ofexercise      prices |        |   | Numberoutstanding        |   |      | Weightedaverageremainingcontractuallife      in years |   |   | Weightedaverageexerciseprice |   |   | NumberExercisable |   |   | Weightedaverageexerciseprice      pershare |   |
|                              |        |   |                     |   |      |                                                  |   |   |   |   |   |   |   |   |   |   |
| $                                 | 0.75-$1.60  |   |                     |   | 1,555,790 |                                                  |   |   | 8.4 |   |   | $ | 1.35 |   |   |   | 1,059,901 |   |   | $ | 1.50 |   |
| $                                 | 2.20-$3.75  |   |                     |   | 577,130   |                                                  |   |   | 6.7 |   |   | $ | 3.29 |   |   |   | 469,463 |   |   | $ | 3.29 |   |
| $                                 | 4.00-$7.00  |   |                     |   | 682,502   |                                                  |   |   | 4.2 |   |   | $ | 4.19 |   |   |   | 626,475 |   |   | $ | 4.20 |   |
| $                                 | 8.00-$32.00 |   |                     |   | 230,607   |                                                  |   |   | 1.9 |   |   | $ | 12.83 |   |   |   | 230,607 |   |   | $ | 12.83 |   |
|                              |        |   |                     |   | 3,046,029 |                                                  |   |   | 6.7 |   |   | $ | 3.22 |   |   |   | 2,386,446 |   |   | $ | 3.66 |   |

----

| Warrants      issued in connection with/as:                                                                                                                                                  |   | Number      outstanding |   | Exercise      price      per share |   | Expiration      date                                                                                                                                                          |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                         |   |                    |   |                               |   |                                                                                                                                                                          |
| Partial      compensation for our placement agent in connection with the sale of our      Series A Convertible Preferred Stock on December 28, 2006                                          |   | 320,000                 |   | $1.10                              |   | December      28, 2011                                                                                                                                                        |
|                                                                                                                                                                                         |   |                    |   |                               |   |                                                                                                                                                                          |
| Partial      compensation for our placement agent in connection with the sale of our      Series B Convertible Preferred Stock and Common Stock on June 29, 2007      7                      |   | 120,928                 |   | $1.00                              |   | June      29, 2012                                                                                                                                                            |
|                                                                                                                                                                                         |   |                    |   |                               |   |                                                                                                                                                                          |
| Pursuant      to Securities Purchase Agreements dated June 29, 2007                                                                                                                          |   | 155,600                 |   | $5.00                              |   | June      29, 2012                                                                                                                                                            |
|  Compensation      for Mr. Bruce E. Terker in connection with the Guarantee and      Indemnification Agreements for bond collateral required for our state      licensing initiative1,7 |   | 33,912                  |   | $1.00                              |   |  3,716      on April 1, 2013, 8,455 on June 30, 2013, 8,455      on      September 30, 2013 and 8,455      on December      31, 2013 and      4,831 on February 15, 2013 |
|                                                                                                                                                                                         |   |                    |   |                               |   |                                                                                                                                                                          |
| Pursuant      to the exchanged securities issued pursuant to the Securities Purchase      Agreements dated June 12, 20082                                                                    |   | 700,000                 |   | $2.30                              |   | June      12, 2013                                                                                                                                                            |
|                                                                                                                                                                                         |   |                    |   |                               |   |                                                                                                                                                                          |
| Pursuant      to Securities Purchase Agreements dated June 29, 2007, as amended for      participation in the June 12, 2008 Securities Purchase Agreements3                                  |   | 264,333                 |   | $2.30                              |   | June      29, 2012                                                                                                                                                            |
|                                                                                                                                                                                         |   |                    |   |                               |   |                                                                                                                                                                          |
| Pursuant      to Securities Purchase Agreements dated June 29, 2007, as amended for      participation in the June 12, 2008 Securities Purchase Agreements3,7                                |   | 1,091,667               |   | $1.00                              |   | June      29, 2012                                                                                                                                                            |
|                                                                                                                                                                                         |   |                    |   |                               |   |                                                                                                                                                                          |
| Pursuant      to Securities Purchase Agreements dated June 12, 2008                                                                                                                          |   | 760,000                 |   | $2.30                              |   | June      12, 2013                                                                                                                                                            |
|                                                                                                                                                                                         |   |                    |   |                               |   |                                                                                                                                                                          |
| Pursuant      to Securities Purchase Agreements dated June 12, 2008 7                                                                                                                        |   | 1,268,750               |   | $1.00                              |   | June      12, 2013                                                                                                                                                            |
|                                                                                                                                                                                         |   |                    |   |                               |   |                                                                                                                                                                          |
| Warrants      held by DFS Services LLC dated November 12, 2007                                                                                                                               |   | 200,000                 |   | $3.00                              |   | November      12, 2010                                                                                                                                                        |
|                                                                                                                                                                                         |   |                    |   |                               |   |                                                                                                                                                                          |
| Pursuant      to Loan and Security Warrant Agreements dated July 21, 2008 4                                                                                                                  |   | 325,000                 |   | $2.30                              |   | July      21, 2013                                                                                                                                                            |
|                                                                                                                                                                                         |   |                    |   |                               |   |                                                                                                                                                                          |
| Pursuant      to Amended and Restated Loan and Security Warrant Agreements dated      November 26, 2008 4,5,7                                                                                |   | 682,500                 |   | $1.00                              |   | July      21, 2013                                                                                                                                                            |
|                                                                                                                                                                                         |   |                    |   |                               |   |                                                                                                                                                                          |
| Accommodation      Loan Warrant Agreements 5,7                                                                                                                                               |   | 1,700,000               |   | $1.00                              |   | November      26, 2009                                                                                                                                                        |
|                                                                                                                                                                                         |   |                    |   |                               |   |                                                                                                                                                                          |
| Partial      compensation for our placement agents in connection with the sale of our      Series C Convertible Preferred Stock and Common Stock on June 12, 2008      6                     |   | 54,575                  |   | $2.53                              |   | June      12, 2013                                                                                                                                                            |
|                                                                                                                                                                                         |   |                    |   |                               |   |                                                                                                                                                                          |
| Partial      compensation for our placement agents in connection with the sale of our      Series C Convertible Preferred Stock and Common Stock on June 12, 2008      6,7                   |   | 54,575                  |   | $1.00                              |   | June      12, 2013                                                                                                                                                            |
|                                                                                                                                                                                         |   |                    |   |                               |   |                                                                                                                                                                          |
| Consulting      services agreement dated April 1, 2006                                                                                                                                       |   | 37,500                  |   | $5.00                              |   | Various      dates through 2011                                                                                                                                               |
|                                                                                                                                                                                         |   |                    |   |                               |   |                                                                                                                                                                          |
| Cooperation      Agreement dated November 22, 2006                                                                                                                                           |   | 5,000                   |   | $1.20                              |   | November      22, 2011                                                                                                                                                        |
|                                                                                                                                                                                         |   |                    |   |                               |   |                                                                                                                                                                          |
| Total      warrants and weighted average exercise price per share outstanding at      April 4, 2009                                                                                          |   | 7,774,340               |   | $1.51                              |   |                                                                                                                                                                          |

----

|   | Issue      Date        | Warrants  |   | Fair      Value |   |
|--------|------------------------|-----------|--------|-----------------|--------|
|   | November      26, 2008 | 175,000   |   | $      40,775   |   |
|   | January      5, 2009   | 175,000   |   | 44,905          |   |
|   | January      23, 2009  | 100,000   |   | 21,610          |   |
|   | February      3, 2009  | 500,000   |   | 90,650          |   |
|   | March,      3 2009     | 500,000   |   | 40,000          |   |
|   | April      1, 2009     | 250,000   |   | 77,000          |   |
|   |   Totals     | 1,700,000 |   | $      314,940  |   |

----

| Twelve      months ending: |   |    | Amounts |   |
|----------------------------|--------|---------|---------|--------|
|                       |   |    |    |
| April      2010            | $      | 211,500 |    |
| April      2011            |   | 201,700 |    |
| April      2012            |   | 206,200 |    |
| April      2013            |   | 104,200 |    |
| April      2014            |   | -       |    |
|                       |   |    |    |
| Total                      | $      | 723,600 |    |

----

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

----

----

| ·   | Wholesale      fees, which arise when our SVCs are sold and activated and when the      nFinanSe Network TM      is used to reload a card. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Transaction      fees, which arise when our SVCs are used in a purchase or ATM      transaction. |
|--------------------|--------------------------------------------------------------------------------------------------|

| ·   | Maintenance      fees, which arise when a card with a cash balance is charged for monthly      maintenance. |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | Interest      revenue, on overnight investing of card balances by our card-issuing      bank. |
|--------------------|-----------------------------------------------------------------------------------------------|

|   | Description                                          |   | For      thethirteenweeks      endedApril      4, 2009 |   | For      thethirteenweeks      endedMarch      29, 2008 |
|--------|------------------------------------------------------|--------|--------------------------------------------------------|--------|---------------------------------------------------------|
|   | SVC      card cost, program and transaction expenses | $      | 287,124                                                | $      | 236,374                                                 |
|   | Inventory      reserves                              |   | 59,926                                                 |   | 28,965                                                  |
|   | Stock-based      compensation                        |   | 804                                                    |   | 243                                                     |
|   | Customer      service expenses                       |   | 192,908                                                |   | 187,724                                                 |
|   | Total      Transaction and Operating Expenses        | $      | 540,762                                                | $      | 453,306                                                 |
|   |                                                 |   |                                                   |   |                                                    |

| §  | an      increase of approximately $92,200 in the costs charged by our processor to      maintain our increased card inventory on their system (the number of cards      available for sale during the thirteen weeks of 2009 was on average      approximately 5.6 million compared with 3.3 million in the same period of      2008); slightly offset by,      a      decrease of approximately $57,200 in the amortization of marketing      funds. |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Description                               |   | For      thethirteenweeks      endedApril      4, 2009 |   | For      thethirteenweeks      endedMarch      29, 2008 |
|--------|-------------------------------------------|--------|--------------------------------------------------------|--------|---------------------------------------------------------|
|   | Advertising      and marketing expenses   | $      | 153,229                                                | $      | 308,077                                                 |
|   | Sales      force expenses                 |   | 317,029                                                |   | 544,047                                                 |
|   | Stock-based      compensation             |   | 28,838                                                 |   | 62,912                                                  |
|   | Total      selling and marketing expenses | $      | 499,096                                                | $      | 915,036                                                 |

|   | Advertising      and marketing expenses decreased 50%, or $154,848, to $153,229 when      comparing 1Q2009 with 1Q 2008.   These period to period      changes were primarily composed of decreases in media and advertising      agency expenses for a national trade print advertising campaign in 1Q2008      with none in 1Q2009. Sales      force expenses decreased $227,018 to $317,029, a 42% decrease for 1Q2009      when compared with 1Q 2008.  The principal components of this      decrease are employee compensation and benefits expense travel and      entertainment expense, and rent expense.  The decrease in sales      force compensation and travel and entertainment expenses can be attributed      to the reduction in the sales force to seven employees at the end of the      first quarter of 2009 from a total of 15 employees at the end of the first      quarter of 2008.  In addition, rent expense decreased due to the      elimination of the temporary warehouse space to store point-of-purchase      displays for our distributors in the third quarter of 2008. Stock-based      compensation decreased in 1Q2009 due to forfeiture of options and the      termination of stock based compensation expense associated with the      reduction of sales force employees from1Q2008. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Description                                    |   | For      thethirteenweeks      endedApril      4, 2009 |   | For      thethirteenweeks      endedMarch      29, 2008 |
|--------|------------------------------------------------|--------|--------------------------------------------------------|--------|---------------------------------------------------------|
|   | Payroll,      benefits and  taxes    | $      | 773,803                                                | $      | 709,789                                                 |
|   | Stock-based      compensation                  |   | 79,775                                                 |   | 536,860                                                 |
|   | Professional,      legal and licensing expense |   | 185,894                                                |   | 375,132                                                 |
|   | Office      and occupancy expenses             |   | 73,614                                                 |   | 72,627                                                  |
|   | Impairment      expense                        |   | 118,276                                                |   | -                                                       |
|   | Other      administrative expense              |   | 279,870                                                |   | 328,517                                                 |
|   | Total      General and Administrative Expenses | $      | 1,511,232                                              | $      | 2,022,925                                               |
|   |                                           |   |                                                   |   |                                                    |

|   | When      comparing 1Q2009 with 1Q2008, changes in the expense categories are      primarily attributable to: |
|--------|---------------------------------------------------------------------------------------------------------------|

| ▪  | increased      payroll, benefits and taxes expenses of $64,014, due primarily to a bonus      paid to one officer, the hiring of our compliance officer in May 2008      along with annual compensation increases;                                                                                                                                                |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ▪  | decreased      stock-based compensation expense of $457,085, which is primarily      attributable to our having fully expensed the stock option grants to Mr.      Welch and Mr. Springer under their employment agreements as of the end of      fiscal 2008;                                                                                                    |
| ▪  | decreased      professional, legal and licensing expense of $189,238 due to reduced      recruiting fees incurred in the prior year to increase our sales force and      reduced legal fees incurred in connection with our state licensing      initiative, somewhat offset by additional expenses related to complying      with state and federal regulations; |
| ▪  | impairment      of asset charge of $118,276 to write-down the expected value of a      marketing incentive agreement compared with none in 1Q2008;      and                                                                                                                                                                                                       |
| ▪  | decreased      other administrative expenses of $48,647 due to reductions in travel and      entertainment, equipment maintenance, and  depreciation.                                                                                                                                                                                                             |

----

| Twelve      months ending: |   |    | Amounts |   |
|----------------------------|--------|---------|---------|--------|
|                       |   |    |    |
| April      2010            | $      | 211,500 |    |
| April      2011            |   | 201,700 |    |
| April      2012            |   | 206,200 |    |
| April      2013            |   | 104,200 |    |
| April      2014            |   | -       |    |
|                       |   |    |    |
| Total                      | $      | 723,600 |    |

----

----

----

----

|  Exhibit      Number |   |  Description of      Exhibit                                                                                                                                                                                                                                                                                                                                                           |
|---------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.1                      |   | First Amendment to Amended and Restated Loan and      Security Agreement, as executed by the Company, and nFinanSe Payments      Inc., the lenders party thereto, and Ballyshannon Partners, L.P., acting      as agent, on February 3, 2009 (Incorporated by reference to Exhibit 99.1      of the Company’s Current Report on Form 8-K filed with the SEC on February      9, 2009) |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.2                      |   | Form of Common Stock Warrant as issued by the      Company to certain investors on February 3, 2009  (Incorporated      by reference to Exhibit 99.2 of the Company’s Current Report on Form 8-K      filed with the SEC on February 9, 2009)                                                                                                                               |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.3                      |   | Form      of Amendment No. 1 to Warrants issued to certain Lenders on February 3,      2009 (Incorporated by reference to Exhibit 99.3 of the Company’s Current      Report on Form 8-K filed with the SEC on February 9,  2009)                                                                                                                                                      |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| *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                                                                                                                                                                                                                                |

----

|                         | NFINANSE      INC. |
|------------------------------|--------------------|
|                         |               |   |
| Date: May      15, 2009 | By:                | /s/ Jerry R.      Welch |
|                         |               |   |
|                         |               | Jerry      R. Welch, Chief Executive Officer and Chairman      of the Board of Directors (Principal      Executive Officer) |
|                         |               |   |
|                         |               |   |

|                               | NFINANSE      INC. |
|------------------------------------|--------------------|
|                               |               |   |
| Date:  May      15, 2009 | By:                | /s/ Raymond P.      Springer |
|                               |               |   |
|                               |               | Raymond      P. Springer, Chief Financial Officer (Principal      Financial Officer) |
|                               |               |   |
|                               |               |   |

|                               | NFINANSE      INC. |
|------------------------------------|--------------------|
|                               |               |   |
| Date:  May      15, 2009 | By:                | /s/ Jerome A.      Kollar |
|                               |               |   |
|                               |               | Jerome      A. Kollar, Vice President Finance and      Controller (Principal Accounting Officer) |
|                               |               |   |
|                               |               |   |

----

|  Exhibit      Number |   |  Description      of Exhibit                                                                                                                                                                                                                                                                                                                                                           |
|---------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.1                      |   | First      Amendment to Amended and Restated Loan and Security Agreement, as executed      by the Company, and nFinanSe Payments Inc., the lenders party thereto, and      Ballyshannon Partners, L.P., acting as agent, on February 3, 2009      (Incorporated by reference to Exhibit 99.1 of the Company’s Current Report      on Form 8-K filed with the SEC on February 9, 2009) |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.2                      |   | Form      of Common Stock Warrant as issued by the Company to certain investors on      February 3, 2009  (Incorporated by reference to Exhibit 99.2 of      the Company’s Current Report on Form 8-K filed with the SEC on February 9,      2009)                                                                                                                          |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.3                      |   | Form      of Amendment No. 1 to Warrants issued to certain Lenders on February 3,      2009 (Incorporated by reference to Exhibit 99.3 of the Company’s Current      Report on Form 8-K filed with the SEC on February 9,  2009)                                                                                                                                                      |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                        |
| *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                                                                                                                                                                                                                                |

----