UNITED
      STATES


SECURITIES
      AND EXCHANGE
      COMMISSION


WASHINGTON,
      D.C.
      20549





FORM
      10-QSB





x
      QUARTERLY REPORT
      PURSUANT TO SECTION 13 OR 15(d)


OF
      THE SECURITIES ACT OF 1934


FOR
      THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2007





OR





o
      TRANSITION REPORT
      PURSUANT TO SECTION 13 OR 15(d)


OF
      THE SECURITIES ACT OF 1934


FOR
      THE TRANSITION PERIOD FROM ___________TO ____________





COMMISSION
      FILE NUMBER: 000-8880





THE
      BANKER'S
      STORE, INC.





(Exact
      name of registrant as specified in its charter)





NEW
                YORK
            22-3755756State
                or Other Jurisdiction Of Incorporation or Organization
            (I.R.S.
                Employer Identification No.)





1535
      MEMPHIS JUNCTION ROAD, BOWLING
      GREEN, KY 42101


(Address,
      including zip code, of principal executive offices)





(270)
      781-8453


(Registrant's
      telephone number, including area code)





Indicate
      by check mark whether the registrant (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the
      preceding 12 months (or for such shorter period that the registrant was required
      to file such reports), and (2) has been subject to such filing requirements
      for
      the past 90 days. Yes x No o





APPLICABLE
      ONLY TO CORPORATE ISSUERS:





Indicate
      the number of shares outstanding of each of the issuer's classes of common
      stock, as of the latest practicable date.





Common
      stock, par value $0.01, 14,954,781 shares outstanding as of January 4,
      2008.














THE
      BANKER'S STORE, INC.





FORM
      10-QSB





NOVEMBER
      30, 2007





INDEX





PART
      I -
      FINANCIAL INFORMATION





ITEM
                1.
            FINANCIAL
                STATEMENTS





See
      financial statements beginning on page F-1.





ITEM
                2.
            MANAGEMENT'S
                DISCUSSION AND
                ANALYSIS OF FINANCIAL CONDITION AND PLAN OF
                OPERATION





The
      matters discussed in this management's discussion and analysis or plan of
      operations contain forward-looking statements that involve risks and
      uncertainties. The Company's actual results in our two operating segments could
      differ materially from those discussed here. Factors that could cause or
      contribute to such differences are discussed elsewhere in this quarterly report
      on Form 10-QSB. The Company disclaims any intent or obligation to update these
      forward-looking statements.





OVERVIEW





The
      Banker's Store, Inc. ("Store") was established in 1968. It remained dormant
      for
      many years until it completed the acquisition of B.G. Banking Equipment, Inc.,
      ("B.G. Banking") and Financial Building Equipment Exchange, Inc., ("FBEE").
      We
      are now in the business of buying, selling, refurbishing and trading new and
      refurbished financial equipment for banks and other financial institutions.
      Commencing during the fourth quarter of the year ended May 31, 2002, we entered
      the office equipment and furniture retail business. We market products
      throughout the United States primarily through direct sales to financial
      institutions and other distributors supported by our direct sales force and
      soliciting new contacts through our presence on the Internet.





We
      anticipate that our results of operations may fluctuate for the foreseeable
      future due to several factors, including whether and when new products at
      competitive prices are obtained and sources of good used banking and banking
      related equipment and furniture become available at favorable prices, market
      acceptance of current or new products, delays, or inefficiencies, shipment
      problems, seasonal customer demand, the timing of significant orders,
      competitive pressures on average selling prices and changes in the mix of
      products sold.





Operating
      results would also be adversely affected by a downturn in the market for our
      current and future products, order cancellations, or order rescheduling or
      remanufacturing or delays. We purchase and resell new merchandise and
      remanufacture and ship our other products shortly after receipt of orders.
      We
      have not developed a significant backlog for such products and do not anticipate
      developing a material backlog for such products in the future.  We may
      not be able to sustain revenue growth on a quarterly or annual
      basis.





1





In
      October, 2006, we added two new executive officers to our management team.
      We
      have increased our operating expenses, primarily for personnel and activities
      supporting newly-introduced products, new product development and entering
      new
      markets. Our operating results have been and will continue to be adversely
      affected if our sales do not correspondingly increase or if our product
      development efforts are unsuccessful or are subject to delays.








SUMMARY
      OF SIGNIFICANT ACCOUNTING ESTIMATES, RELATED PARTY TRANSACTIONS AND
      CONTINGENCIES:





Significant
      accounting estimates:





Our
      discussion and analysis of our financial condition and results of operations
      are
      based upon our condensed consolidated financial statements, which have been
      prepared in conformity with accounting principles generally accepted in the
      United States of America. The preparation of these condensed consolidated
      financial statements requires us to make estimates and judgments that affect
      the
      reported amounts of assets, liabilities, revenues and expenses, and related
      disclosures of contingent assets and liabilities. On an on-going basis, we
      evaluate our estimates, including those related to accounts receivable,
      inventories, equipment and improvements, income taxes and contingencies. We
      base
      our estimates on historical experience and on various other assumptions that
      are
      believed to be reasonable under the circumstances, the results of which form
      the
      basis for making judgments about the carrying value of assets and liabilities
      that are not readily apparent from other sources. Actual results may differ
      from
      these estimates under different assumptions or conditions. The accounting
      estimates used as of May 31, 2007 and as outlined in our previously filed Form
      10-KSB have been applied consistently for the six months ended November 30,
      2007.





Related
      party transactions:





We
      have
      entered into two operating leases with our Chairman of the Board and principal
      stockholder, Paul Clark, for the lease of an aggregate of 32,000 square feet
      of
      office and warehouse space located in Bowling Green, Kentucky. The leases
      provide for a monthly rent plus maintenance expenses. The leases expire in
      August and September 2008, respectively.





Contingencies:





Litigation:





On
      March
      7, 2000, we filed an action in the Supreme Court of the State of New York,
      County of New York, against Stamford Financial Consulting, Inc., Taurus
      International Investment, Inc., George C. Bergleitner, Jr., Alexander C. Brosda
      and Andrew Seim (the “New York Action”), seeking an amount of not less than $1.7
      million for breach of fiduciary duty, breach of contract, conversion and unjust
      enrichment, and seeking an accounting of defendants’ books and records. The
      action arises out of B. G. Banking’s Confidential Private Placement Memorandum
      dated January 31, 1998, prepared by Stamford Financial, for the sale of
      3,000,000 shares of B. G. Banking common stock at $1.00 per share. On April
      5,
      2000, defendant George C. Bergleitner served a counterclaim alleging that we
      failed to have 180,000 shares of stock transferred without any legal
      endorsement, pursuant to Rule 144(k) under the Securities Exchange Act of 1934,
      as amended. The counterclaim seeks damages of $900,000 based upon the value
      of
      the stock at the highest amount at which it traded, which is alleged to be
      $5.00
      per share.





2





In
      December 2000, the court entered a default judgment against Taurus International
      Investment, Inc., Alexander C. Brosda and Andrew Seim leaving only George
      Bergleitner and his company, Stamford Financial to defend the
      lawsuit.





By
      order
      entered on May 4, 2001, the Court granted a motion filed by Stamford Financial
      Consulting, Inc. and George C. Bergleitner, to transfer the New York Action
      to
      the New York State Supreme Court, Delaware County, and the action is continuing
      there against these two defendants.


We
      have
      filed a motion to dismiss the counterclaim.





Although
      we cannot predict the outcome of the litigation described above, we do not
      believe that the ultimate outcome will have any material adverse effect on
      our
      consolidated financial statements in subsequent periods.






RESULTS
      OF OPERATIONS





The
      following table sets forth operating data as a percentage of revenue for the
      six
      months and three months ended November 30, 2007 and 2006:





Six
                months ended
            
            
            Three
                months endedNovember
                30,
            
            
            November
                30,2007
            
            
            2006
            
            
            2007
            
            
            2006Net
                sales
            
            
            100.0
            %
            
            
            100.0
            %
            
            
            100.0
            %
            
            
            100.0
            %Cost
                of goods sold
            
            
            65.9
            %
            
            
            75.9
            %
            
            
            65.6
            %
            
            
            73.3
            %Gross
                profit
            
            
            34.1
            %
            
            
            24.1
            %
            
            
            34.4
            %
            
            
            26.7
            %Selling,
                general and administrative expenses
            
            
            40.4
            %
            
            
            42.4
            %
            
            
            44.9
            %
            
            
            48.3
            %Income
                (loss) from operations
            
            
            -6.3
            %
            
            
            -18.3
            %
            
            
            -10.5
            %
            
            
            -21.6
            %Other
            
            
            -0.3
            %
            
            
            -0.6
            %
            
            
            -0.5
            %
            
            
            -0.7
            %Income
                before income tax provision
            
            
            -6.6
            %
            
            
            -18.9
            %
            
            
            -11.0
            %
            
            
            -22.3
            %Income
                tax provision
            
            
            0.0
            %
            
            
            0.0
            %
            
            
            0.0
            %
            
            
            0.0
            %Net
                income (loss)
            
            
            -6.6
            %
            
            
            -18.9
            %
            
            
            -11.0
            %
            
            
            -22.3
            %




3





RESULTS
      OF OPERATIONS FOR THE SIX MONTHS AND THREE MONTHS ENDED NOVEMBER 30, 2007 AS
      COMPARED TO THE SIX MONTHS AND THREE MONTHS ENDED NOVEMBER 30,
      2006.





Revenues
      were approximately $1,364,372 for the six months ending November 30, 2007 as
      compared to approximately $1,090,881 for the six months ended November 30,
      2006
      reflecting an increase of approximately $273,491, or 25%.  The
      increase in revenues during the six months ending November 30, 2007 is partially
      the net result of increased equipment sales and the completion of jobs from
      the
      prior two periods.   The revenues for the three months ending
      November 30, 2007 were $533,635 as compared to $495,009 for the three months
      ended November 30, 2006, reflecting an increase of approximately $38,626, or
      8%.  This increase for the three months ending November 30, 2007 is
      partially the result of increased equipment sales.  Banking equipment
      revenues increased approximately $162,884 or 17% for the six months ending
      November 30, 2007 from the six months ended November 30, 2006.  Office
      equipment revenues increased approximately $110,607, or 105% for the six months
      ending November 30, 2007 from the six months ended November 30,
      2006.





Cost
      of
      goods sold for the six months ended November 30, 2007 were approximately
      $898,448, or 66% of net sales as compared to approximately $827,672, or 76%
      of
      net sales for the six months ended November 30, 2006.  Cost of goods
      sold for the three months ended November 30, 2007 was approximately $349,901,
      or
      66% of net sales as compared to approximately $362,679, or 73% of net sales
      for
      the three months ended November 30, 2006. Gross profit increased during the
      six
      months ending November 30, 2007 to approximately $465,924, or 34% of net sales
      as compared to the six months ended November 30, 2006 of $263,209, or 24% of
      net
      sales.  This increase in gross profit is primarily due to increased
      sales of pre-owned equipment and a price adjustment in our labor rates and
      delivery charges.





Selling,
      general and administrative expenses were approximately $550,786, or 40% of
      revenues for the six months ending November 30, 2007 as compared to
      approximately $462,549, or 42% of revenues for the six months ended November
      30,
      2006 reflecting an increase of approximately $88,237 and a decrease of 2% of
      net
      sales.  Selling, general and administrative expenses were
      approximately $239,589, or 45% of revenues for the three months ending November
      30, 2007 as compared to approximately $239,016, or 48% of revenues for the
      three
      months ended November 30, 2006 reflecting an increase of approximately $573
      and
      a decrease of 3% of net sales.





As
      a
      result of the aforementioned, the Company incurred a net loss from operations
      during the six months ending November 30, 2007 of approximately $89,586, or
      7%
      of net sales as opposed to a net loss of approximately $205,683, or 19% of
      net
      sales for the six months ending November 30, 2006.  For the three
      months ending November 30, 2007, the Company incurred a loss of
      approximately $58,510, or 11% of net sales as opposed to a net loss of
      approximately $110,032, or 22% of net sales for the comparable prior
      period.





LIQUIDITY
      AND CAPITAL RESOURCES





We
      have
      historically financed our operations through revenues from
      operations.




We
      had
      cash and cash equivalents of $181,819 and working capital of $303,068 at
      November 30, 2007. At November 30, 2007, the Company’s cash position had
      decreased by $175,504 from the year ended May 31, 2007. The decrease in
      liquidity primarily came from the $217,890 decrease in customer deposits as
      the
      result of completing several projects that were started in prior periods and
      partially offset by a decrease of  $117,754 of
      inventory.  Our $350,000 revolving line of credit expired on November
      7, 2007 and was not renewed as it had never been utilized.





4





We
      are
      evaluating various alternatives in addressing our future facilities’ needs. The
      alternatives being evaluated include consolidation of our office equipment
      facility with our bank equipment facility thus reducing our lease expense and
      associated overhead expenses.  Other expense reductions are being
      explored.





We
      also
      desire to expand our customer base and enter additional markets.  To
      accomplish these goals, we are currently evaluating a number of strategies
      and
      related steps.  We are considering and evaluating opportunities to
      grow and expand through mergers or acquisitions.   We have
      strengthened our management team by adding a CEO and CFO.  We may hire
      additional sales personnel in order to reach potential customers in new markets
      and additional customers in existing markets.





Our
      ability to effect any of these strategies or to take any of these steps will
      depend on a number of factors including, but not limited too, our ability to
      generate sufficient cash flow or obtain sufficient capital on reasonable terms;
      our ability to locate and hire qualified personnel on satisfactory terms and
      conditions, the availability of attractive candidates for merger or acquisition
      on reasonable terms and conditions; continued demand for our products and
      services; our ability to withstand increased competitive pressures; and economic
      conditions within the financial services industry and within the markets we
      serve.  There is no assurance that we will be able to meet any or all
      of our goals.





We
      believe that our available cash and cash from operations will be sufficient
      to
      satisfy our funding needs through at least November 30, 2008. Thereafter, if
      cash generated from operations is insufficient to satisfy our working capital
      and capital expenditure requirements, we may be required to sell additional
      equity or debt securities or obtain additional credit facilities. In this
      regard, we have retained the services of an investment banking firm for
      corporate advisory and financial placement services in connection with raising
      additional capital.  There can be no assurance that such additional
      capital, if needed, will be available on satisfactory terms, if at all.
      Furthermore, any additional equity financing may be substantially dilutive
      to
      stockholders, and debt financing, if available, may include restrictive
      covenants and also result in substantial dilution to stockholders. Our future
      liquidity and capital funding requirements will depend on numerous factors,
      including the extent to which our new products and products under consideration
      are successfully developed, gain market acceptance, become and remain
      competitive as well as the costs and timing of further expansion of sales and
      marketing.  The failure by us to raise capital on acceptable terms
      when needed could have a material adverse effect on our business, financial
      condition and results of operations.








ITEM
                3.
            CONTROLS
                AND
                PROCEDURES





(a)
      DISCLOSURE CONTROLS AND PROCEDURES. As of November 30, 2007, the Company
      evaluated the effectiveness of the design and operation of its disclosure
      controls and procedures. The Company's disclosure controls and procedures are
      the controls and other procedures that it designed to ensure that it records,
      processes, summarizes and reports in a timely manner the information it must
      disclose in reports that it files with or submits to the Securities and Exchange
      Commission. Vincent Buckman, the Company's President and CEO, supervised and
      participated in this evaluation. Based on this evaluation, Mr. Buckman concluded
      that, as of the date of their evaluation, the Company's disclosure controls
      and
      procedures were effective.




(b)
      CHANGES IN INTERNAL CONTROLS. There were no changes in internal controls over
      financial reporting known to the Chief Executive Officer and Chief Financial
      Officer that occurred during the period covered by this report that has
      materially affected, or is likely to materially effect, the Company’s internal
      control over financial reporting.





5





PART
      II.


OTHER
      INFORMATION





ITEM
                1.
            LEGAL
                PROCEEDINGS





No
      material developments occurred during the quarter with respect to our on-going
      litigation. For a discussion of this litigation, please see Item 2. Management's
      Discussion and Analysis of Financial Condition and Results of
      Operation-Litigation herein.





ITEM
                2.
            UNREGISTERED
                SALES OF EQUITY
                SECURITIES AND USE OF
                PROCEEDS





None.





ITEM
                3.
            DEFAULTS
                BY THE COMPANY UPON ITS
                SENIOR SECURITIES





None.





ITEM
                4.
            SUBMISSION
                OF MATTERS TO A VOTE
                OF SECURITY HOLDERS





None.





ITEM
                5.
            OTHER
                INFORMATION





None.





ITEM
                6.
            EXHIBITS





a)
      Exhibits





31.1
      Certification Pursuant to Rule 13a-14(a) of Vincent
      C. Buckman, CEO and President


31.2
      Certification Pursuant to Rule 13a-14(a) of Sam
      Stone, Chief Financial Officer


32.1
      Certification of Vincent C. Buckman


32.2
      Certification of Sam Stone





6





FINANCIAL
      STATEMENTS





THE
      BANKER'S STORE, INC. AND SUBSIDIARIES





I
      N D E X





PAGE




PART
        I - FINANCIAL INFORMATION
 ITEM
                  1. FINANCIAL STATEMENTS
              
              PAGECONDENSED
                  CONSOLIDATED BALANCE SHEETS NOVEMBER 30, 2007 (UNAUDITED) AND MAY
                  31,
                  2007
              
              F-2CONDENSED
                  CONSOLIDATED STATEMENTS OF OPERATIONS SIX MONTHS ENDED NOVEMBER
                  30, 2007
                  AND 2006 (UNAUDITED)
              
              F-3CONDENSED
                  CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED NOVEMBER
                  30, 2007
                  AND 2006 (UNAUDITED)
              
              F-4NOTES
                  TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
              
              F-5
                  - F-7ITEM
                  2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONPART
                  II. OTHER INFORMATIONSIGNATURES





*
      *
      *





F-1
 Index





THE
      BANKER'S STORE, INC. AND SUBSIDIARIES





CONDENSED
      CONSOLIDATED BALANCE SHEETS


NOVEMBER
      30, 2007 AND MAY 31, 2007





NOVEMBER 30,
            
            
            MAY 31,ASSETS
            
            2007
            
            
            2007Current
                Assets:Cash
                and cash equivalents
            
            $
            181,819
            
            
            $
            357,323Accounts
                receivable, net of allowance for bad debts of $4,043
            
            
            208,578
            
            
            
            163,384Inventories
            
            
            549,883
            
            
            
            667,637Prepaid
                expenses and other current assets
            
            
            58,501
            
            
            
            106,848Total
                current assets
            
            
            998,781
            
            
            
            1,295,192Equipment
                and improvements, net
            
            
            75,806
            
            
            
            80,143Other
                assets
            
            
            4,182
            
            
            
            20,467Totals
            
            $
            1,078,769
            
            
            $
            1,395,802LIABILITIES
                AND
                STOCKHOLDERS' EQUITYCurrent
                Liabilities:Current
                portion of long-term debt
            
            $
            -
            
            
            $
            2,346Accounts
                payable and accrued expenses
            
            
            97,006
            
            
            
            89,845Customer
                deposits
            
            
            169,022
            
            
            
            386,911Note
                payable - principal stockholder
            
            
            166,585
            
            
            
            189,625Accrued
                compensation - principal stockholder
            
            
            263,100
            
            
            
            263,100Total
                current liabilities
            
            
            695,713
            
            
            
            931,827Long-term
                debt, net of current portion
            
            
            -
            
            
            
            -Total
                liabilities
            
            
            695,713
            
            
            
            931,827Commitments
                and contingenciesStockholders'
                equity:Common
                stock, $.01 par value;  40,000,000 shares
                authorized;  14,954,781 issued and outstanding
            
            
            149,548
            
            
            
            149,548Additional
                paid-in capital
            
            
            559,363
            
            
            
            550,697Less:
                treasury stock 2,000 shares (at cost)
            
            
            (2,000
            )
            
            
            (2,000
            )Accumulated
                (deficit) earnings
            
            
            (323,855
            )
            
            
            (234,270
            )Total
                stockholders' equity
            
            
            383,056
            
            
            
            463,975Totals
            
            $
            1,078,769
            
            
            $
            1,395,802





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





F-2
 Index





THE
      BANKER'S STORE, INC. AND SUBSIDIARIES





CONDENSED
      CONSOLIDATED STATEMENTS OF OPERATIONS


NOVEMBER
      30, 2007 AND 2006.





SIX MONTHS ENDED
            
            
            THREE MONTHS ENDEDNOVEMBER 30,
            
            
            NOVEMBER 30,2007
            
            
            2006
            
            
            2007
            
            
            2006Revenue
            
            $
            1,364,372
            
            
            $
            1,090,881
            
            
            $
            533,635
            
            
            $
            495,009Cost
                of goods sold
            
            
            898,448
            
            
            
            827,672
            
            
            
            349,901
            
            
            
            362,679Gross
                profit
            
            
            465,924
            
            
            
            263,209
            
            
            
            183,734
            
            
            
            132,330Selling,
                general and administrative expenses
            
            
            550,786
            
            
            
            462,549
            
            
            
            239,589
            
            
            
            239,016Income
                (loss) from operations
            
            
            (84,862
            )
            
            
            (199,340
            )
            
            
            (55,855
            )
            
            
            (106,686
            )Other
                income (expense):Interest
                and other income (expenses)
            
            
            3,255
            
            
            
            3,119
            
            
            
            1,228
            
            
            
            1,471Interest
                expense
            
            
            (7,979
            )
            
            
            (9,462
            )
            
            
            (3,883
            )
            
            
            (4,817
            )Total
                other income (expense):
            
            
            (4,724
            )
            
            
            (6,343
            )
            
            
            (2,655
            )
            
            
            (3,346
            )Income
                before income tax provision
            
            
            (89,586
            )
            
            
            (205,683
            )
            
            
            (58,510
            )
            
            
            (110,032
            )Income
                tax provision
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            -Net
                income
            
            $
            (89,586
            )
            
            $
            (205,683
            )
            
            $
            (58,510
            )
            
            $
            (110,032
            )Basic
                earnings (loss) per common share
            
            $
            (0.01
            )
            
            $
            (0.01
            )
            
            $
            (0.00
            )
            
            $
            (0.01
            )Diluted
                earnings (loss) per share
            
            $
            (0.01
            )
            
            $
            (0.01
            )
            
            $
            (0.00
            )
            
            $
            (0.01
            )




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





F-3
 Index





THE
      BANKER'S STORE, INC. AND SUBSIDIARIES





CONDENSED
      CONSOLIDATED STATEMENTS OF CASH FLOWS


SIX
      MONTHS ENDED NOVEMBER 30, 2007 AND 2006


NOVEMBER
                30,2007
            
            
            2006Operating
                activitiesNet
                income (loss)
            
            $
            (89,586
            )
            
            $
            (205,683
            )Adjustments
                to reconcile net income (loss) to net cash provided by (used in)
                operating
                activities:Depreciation
                and amortization
            
            
            10,403
            
            
            
            12,694Stock
                based compensation
            
            
            8,667
            
            
            
            -Changes
                in operating assets and liabilities:Accounts
                receivable
            
            
            (45,194
            )
            
            
            62,206Inventories
            
            
            117,754
            
            
            
            (60,299
            )Gain
                on sale of equipmentPrepaid
                expenses and other current assets
            
            
            48,347
            
            
            
            (10,996
            )Other
                assets
            
            
            16,286
            
            
            
            -Accounts
                payable and accrued expenses
            
            
            7,161
            
            
            
            46,318Customer
                deposits
            
            
            (217,890
            )
            
            
            151,863Net
                cash provided by operating activities
            
            
            (144,052
            )
            
            
            (3,897
            )Investing
                activitiesCapital
                expenditures, net of writeoffs
            
            
            (6,066
            )
            
            
            (13,177
            )Net
                cash (used in) investing activities
            
            
            (6,066
            )
            
            
            (13,177
            )Financing
                activitiesIncrease
                (decrease) in long-term debt, net
            
            
            (2,346
            )
            
            
            (4,228
            )Loan
                payable - Borrowing from principal stockholder
            
            
            (23,040
            )
            
            
            8,700Net
                cash provided by (used  in) financing activities
            
            
            (25,386
            )
            
            
            4,472Net
                increase in cash and cashequivalents
            
            
            (175,504
            )
            
            
            (12,602
            )Cash
                and cash equivalents, beginning of period
            
            
            357,323
            
            
            
            354,688Cash
                and cash equivalents, end of period
            
            $
            181,819
            
            
            $
            342,086Supplemental
                disclosure of cash flow information:Interest
                paid
            
            $
            7,979
            
            
            $
            9,462Income
                taxes paid
            
            $
            -
            
            
            $
            -




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





F-4
 Index





THE
      BANKER'S STORE, INC. AND SUBSIDIARIES





NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)





Note
      1 - Basis of presentation:





In
      the
      opinion of management, the accompanying unaudited condensed consolidated
      financial statements reflect all adjustments, consisting of normal recurring
      accruals, necessary to present fairly the financial position of The Banker's
      Store, Inc. and Subsidiaries (the "Company") as of November 30, 2007 and the
      Company's results of operations and cash flows for the six months ended November
      30, 2007 and 2006. Pursuant to the rules and regulations of the United States
      Securities and Exchange Commission (the "SEC"), certain information and
      disclosures normally included in financial statements prepared in accordance
      with accounting principles generally accepted in the United States of America
      have been condensed in or omitted from these consolidated financial statements
      unless significant changes have taken place since the end of the most recent
      fiscal year. Accordingly, these unaudited condensed consolidated financial
      statements should be read in conjunction with the audited consolidated financial
      statements as of May 31, 2007 and the notes thereto (the "Audited Financial
      Statements") and the other information included in the Company's Annual Report
      on Form 10-KSB (the "Form 10-KSB") for the year ended May 31, 2007.





The
      consolidated results of operations for the six months ended November 30, 2007
      are not necessarily indicative of the results to be expected for the full
      year.





Note
      2 - Earnings (loss) per common share:





The
      Company presents "basic" earnings (loss) per share and, if applicable, "diluted"
      earnings per share pursuant to the provisions of Statement of Financial
      Accounting Standards No. 128, "Earnings per Share". Basic earnings (loss) per
      share is calculated by dividing net income or loss by the weighted average
      number of shares outstanding during each period. The calculation of diluted
      earnings per share is similar to that of basic earnings per share, except that
      the denominator is increased to include the number of additional common shares
      that would have been outstanding if all potentially dilutive common shares
      were
      issued during the period. The Company considered the stock options granted
      to
      the executives as potentially dilutive common shares outstanding during the
      period ended November 30, 2007. The weighted average numbers of shares for
      determining basic earnings per share were 14,954,781 in 2007. The weighted
      average numbers of shares for determining diluted earnings per share were
      15,504,781 in 2007.





Note
      3 - Income taxes:





The
      Company’s estimated federal and state income tax rate is 40 percent. Due to the
      uncertainties related to, among other things, the extent and timing of our
      future taxable income, the Company offset the deferred tax assets attributable
      to the potential benefits of approximately $26,000 from the utilization of
      net
      operating loss carryforwards and other deferred tax assets by an equivalent
      valuation allowance as of November 30, 2007. Deferred tax assets offset by
      a
      valuation allowance were approximately $199,000 offset by a valuation allowance
      of $179,000 as of November 30, 2006. Total deferred tax assets were
      approximately $236,000 which was offset by an equivalent valuation allowance
      of
      approximately $236,000 as of November 30, 2007.





As
      a
      result of the corresponding increase in the valuation allowance and deferred
      tax
      assets of $26,000 during the six months ended November 30, 2007, the Company
      did
      not recognize any income taxes in the accompanying condensed consolidated
      statements of operations to offset its pre-tax income and loss in the
      periods.





F-5
 Index





THE
      BANKER'S STORE, INC. AND SUBSIDIARIES





NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)





Note
      4 - Contingencies:





Litigation:





On
      March
      7, 2000, we filed an action in the Supreme Court of the State of New York,
      County of New York, against Stamford Financial Consulting, Inc., Taurus
      International Investment, Inc., George C. Bergleitner, Jr., Alexander C. Brosda
      and Andrew Seim (the “New York Action”), seeking an amount of not less than $1.7
      million for breach of fiduciary duty, breach of contract, conversion and unjust
      enrichment, and seeking an accounting of defendants’ books and records. The
      action arises out of B. G. Banking’s Confidential Private Placement Memorandum
      dated January 31, 1998, prepared by Stamford Financial, for the sale of
      3,000,000 shares of B. G. Banking common stock at $1.00 per share. On April
      5,
      2000, defendant George C. Bergleitner served a counterclaim alleging that we
      failed to have 180,000 shares of stock transferred without any legal
      endorsement, pursuant to Rule 144(k) under the Securities Exchange Act of 1934,
      as amended. The counterclaim seeks damages of $900,000 based upon the value
      of
      the stock at the highest amount at which it traded, which is alleged to be
      $5.00
      per share.





In
      December 2000, the court entered a default judgment against Taurus International
      Investment, Inc., Alexander C. Brosda and Andrew Seim leaving only George
      Bergleitner and his company, Stamford Financial to defend the
      lawsuit.





By
      order
      entered on May 4, 2001, the Court granted a motion filed by Stamford Financial
      Consulting, Inc. and George C. Bergleitner, to transfer the New York Action
      to
      the New York State Supreme Court, Delaware County, and the action is continuing
      there against these two defendants.


We
      filed
      a motion to dismiss the counterclaim.





Although
      we cannot predict the outcome of the litigation described above, we do not
      believe that the ultimate outcome will have any material adverse effect on
      our
      consolidated financial statements in subsequent periods.





Note
      5 - Segment information:





The
      Company has adopted the provisions of Statements of Financial Accounting
      Standards No. 131, "Disclosures about Segments of an Enterprise and Related
      Information ("SFAS 131"). Pursuant to the provisions of SFAS 131, the Company
      is
      reporting segment sales, cost of goods sold, gross margins and inventories
      in
      the same format reviewed by the Company's management (the "management
      approach"). The Company has two reporting segments: "Banking Equipment" and
      "Office Equipment." The Banking Equipment segment is comprised of the operations
      connected with the buying, selling and trading of new and refurbished financial
      equipment for banks and other financial institutions. The Office Equipment
      segment is comprised of buying and selling office equipment and
      supplies.





F-6
 Index





THE
      BANKER'S STORE, INC. AND SUBSIDIARIES





NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)





Revenues
      and other related segment information follows for the six months and three
      months ended November 30, 2007 and 2006:





THE
      BANKER'S STORE, INC. AND SUBSIDIARIES





DISCLOSURE
      OF REPORTED SEGMENT PROFIT OR LOSS, AND SEGMENT ASSETS








SIX
                MONTHS ENDED
            
            
            SIX
                MONTHS ENDEDNOVEMBER
            
            
            NOVEMBER2007
            
            
            2006Banking
            
            
            Office
            
            
            
            
            
            Banking
            
            
            OfficeEquipment
            
            
            Equipment
            
            
            Totals
            
            
            Equipment
            
            
            Equipment
            
            
            TotalsRevenues
                from external customers
            
            $
            1,148,655
            
            
            $
            215,717
            
            
            $
            1,364,372
            
            
            $
            985,771
            
            
            $
            105,110
            
            
            $
            1,090,881Segment
                profit (loss)
            
            
            (56,114
            )
            
            
            (33,472
            )
            
            
            (89,586
            )
            
            
            (198,289
            )
            
            
            (7,394
            )
            
            
            (205,683
            )Segment
                assets
            
            $
            1,045,493
            
            
            $
            33,276
            
            
            $
            1,078,769
            
            
            $
            1,320,139
            
            
            $
            137,117
            
            
            $
            1,457,256








THREE MONTHS ENDED
            
            
            THREE MONTHS ENDEDNOVEMBER 30,
            
            
            NOVEMBER 30,2007
            
            
            2006Banking
            
            
            Office
            
            
            
            
            
            Banking
            
            
            OfficeEquipment
            
            
            Equipment
            
            
            Totals
            
            
            Equipment
            
            
            Equipment
            
            
            TotalsRevenues
                from external customers
            
            $
            451,750
            
            
            $
            81,885
            
            
            $
            533,635
            
            
            $
            447,248
            
            
            $
            47,761
            
            
            $
            495,009Segment
                profit (loss)
            
            
            (30,373
            )
            
            
            (28,137
            )
            
            
            (58,510
            )
            
            
            (105,276
            )
            
            
            (4,756
            )
            
            
            (110,032
            )Segment
                assets
            
            $
            1,045,493
            
            
            $
            33,276
            
            
            $
            1,078,769
            
            
            $
            1,320,139
            
            
            $
            137,117
            
            
            $
            1,457,256








*
      *
      *





F-7
 Index





SIGNATURES





Pursuant
      to the requirements of the Securities and Exchange Act of 1934, the Registrant
      has duly caused this report to be signed on its behalf by the undersigned
      thereunto duly authorized.





THE
      BANKER'S STORE, INC.








By:
            /s/
                Vincent C. BuckmanVincent
                C. Buckman,President,
                CEO, and Director(Principal
                Executive Officer)Date:
                January 14, 2008